Steel & Tube Shareholder Newsletter

Results Announced:
18 August 2018
Financial Year End:
30 June 2018
FROM THE CHAIR
Dear Shareholder
Steel & Tube recently made an
announcement regarding its expected
result for the 2018 financial year, with a
reduced outlook for this year’s operating
profit to $16 million, and up to $54 million
in non-trading costs and impairments. This
will result in an EBIT loss of approximately
$(38) million.
The lower forecast follows an extensive
company-wide review of the business by
the refreshed Board and Management
team, in conjunction with the previously
announced change programme.
As part of this review, a number of legacy
issues were identified and are now being
resolved. The impact of these are reflected
in the guidance including exit from and
associated impairment of the S&T Plastics
business; a further write down of inventory
values; a likely impairment of intangible
assets; rationalisation of Distribution and
Reinforcing operations; and completion of
further organisational restructuring.
In addition, the company has been
significantly impacted by further issues
related to the implementation of a new
group-wide IT system that went live on
2 October 2017, although these issues are
now being rectified.
Pleasingly, we are already starting to see
improvements from actions taken in
recent months.
The Board and Management are very
disappointed with the write- downs and
forecast for this financial year, however,
with our new IT system now operational
and with restructuring underway, we are
confident our actions will create a stronger
platform for our business to move forward.
We remain deeply committed
to rebuilding Steel & Tube as a
leading provider of steel products
and solutions in New Zealand,
and look forward to entering the
2019 financial year with renewed
focus and in a stronger position.
Susan Paterson, Chair
Read the full guidance announcement at www.nzx.com/announcements/318333
Shareholder Update
STORIES OF STRENGTH
UPCOMING KEY DATES
COMMITTED TO QUALITY
Underlying everything we do at Steel & Tube is our continued
commitment to quality. For us, quality is key in everything,
from the sourcing and production of products, through to
customer service and delivery.
Our products are used in projects that last for decades. They 
hold up the buildings people live and work in, they hold together
the roads they drive on, and the machines they work with.
We go to great lengths to ensure the steel products we source
are of the highest quality and made with the best processes.
We source only from preferred suppliers and, where required,
products are tested to confirm compliance with a relevant
New Zealand standard.
We are focused on creating a culture where quality is at the heart
of all we do, and we strive to deliver quality products in a way that
meets and exceeds our customers’ expectations.
Our quality function is led by a highly experienced
team, which was established in 2016.
You can read about them on our website at
www.steelandtube.co.nz/corporate/quality-
management-team. This team is leading our
programme to upgrade our quality certification
to ISO 9001: 2015 across our company and we
expect this to be completed by the end of 2018.

Annual Meeting:
25 October 2018 (Auckland)
Annual Report:
By end-September 2018

EXECUTIVE UPDATE
I joined Steel & Tube as CEO in September
2017 and there is no denying that it has been a
challenging eight months. While we have had to
make some tough decisions, we firmly believe
that these are the right moves to ensure we
are well positioned to rebuild our company.
The impact of resolving legacy issues and resetting the company
has been greater than anticipated. However, with the IT system now
operational,
and alongside the restructuring carried out over the
last six months, we are turning the corner.
We have identified the following four cornerstone strategies
that we believe will enable us to be the leader in buying, selling,
processing and installing steel products, and which provide a
roadmap for our businesses:
›
Commitment to safety and quality
›
Operational and supply chain excellence
›
Putting the customer at the heart of our business
›
Supporting a winning team.
We have established robust quality management systems and
stand by the integrity of all our products. Historical issues around
testing certification for steel mesh have been rectified and
our seismic mesh is externally tested in New Zealand by IANZ-
accredited laboratories.
Every Steel & Tube person has a role to play in the company’s
success and every voice is important.
We have established Project Strive, an internal, group wide
programme, to support our ‘Strive for Excellence’. More than
20 business-led initiatives are currently underway and employees
are encouraged to identify other initiatives and opportunities to
achieve our company’s goals.
As we move forward, we were pleased to announce on 2 July
2018 that we have renewed funding arrangements with our
banking partners.
We have great bones to build on. We already provide products
and services in more areas of the steel market than any
other provider in New Zealand and we have a large and loyal
customer base.
We have strong businesses and brands; a great mix of people and
experience; and a well established supply chain.
We are New Zealand based, New Zealand focused and mostly
owned by New Zealand shareholders. We haven’t been distracted
by trying to break into overseas markets, and we are a key player
in the economy, whether it’s a major government infrastructure
project, housing or large commercial project.
The Board has been refreshed and we have a new leadership team
and organisational structure in place. We are all committed to
delivering on Steel & Tube’s potential and delivering value to our
more than 8,000 shareholders.
This new Shareholder Newsletter is part of our commitment
to keeping you informed about our businesses and the
contribution we make to New Zealand’s economic development
and prosperity. We hope you enjoy reading it and welcome
any feedback.
Mark Malpass,
Chief Executive Officer
COMMITMENT
TO SAFETY
AND QUALITY
OPERATIONAL
AND SUPPLY
CHAIN
EXCELLENCE
PUTTING THE
CUSTOMER AT
THE HEART OF
OUR BUSINESS
SUPPORTING
A WINNING
TEAM
›
PRODUCTS AND
SERVICES TO MEET
CUSTOMER NEEDS
›
LEVERAGE OUR
TECHNICAL EXPERTISE
›
DELIVERY ON
TIME AND ON SPEC
›
DEVELOP LEADERS
›
EVERYONE MATTERS
›
RECOGNISE
PERSONAL AND TEAM
CONTRIBUTIONS
›
PROVIDE A REWARDING
WORKPLACE
›
SAFE AND HEALTHY
WORK ENVIRONMENT
›
QUALITY PROCESSES
›
QUALITY PRODUCTS
›
CONTINUAL
IMPROVEMENT
›
LEVERAGE OUR
PROCUREMENT AND
SUPPLY CHAIN SCALE
›
EXCELLENT INVENTORY
MANAGEMENT
›
EMPLOY DATA ANALYTICS
TO BETTER SERVICE OUR
CUSTOMERS
›
DRIVE EFFICIENCIES
OUR GOAL
To be the leader in buying, selling, processing and installing steel products in New Zealand
STRIVING FOR EXCELLENCE

OPENING OF NEW DISTRIBUTION
HUB IN CHRISTCHURCH
Steel & Tube recently celebrated the re-opening of its
Blenheim Road property in Christchurch, representing
a key stage in a major renewal programme for the
company in the Canterbury region.
Two facilities have now been consolidated onto the
one site, creating a new distribution hub and forming
an essential part of Steel & Tube’s South Island
distribution network.
The company also recently opened a processing hub
at Seymour St in Hornby.
The Blenheim Road opening was officiated by
Member of Parliament for Wigram, the Hon.
Dr Megan Woods, alongside Steel & Tube chair,
Susan Paterson.
In her remarks, Susan said: “Steel is the material of
choice for construction in Christchurch post the
earthquakes and Steel & Tube is playing a vital role
in the redevelopment of the Canterbury region."
“We are extremely proud to be
doing our bit to support Canterbury’s
economic growth and development.”
Damian Miller joined Steel & Tube in 2016
and is leading the company’s drive towards
creating a culture where ‘quality is at the
heart of all we do’.
His past experience provides him with the ideal
credentials for the job – he has more than 20
years’ experience working in Quality, Health &
Safety and Environment roles, in North/ South
America, South East Asia, Africa and Europe.
Having worked mainly in the oil and gas sector,
Damian believes the very high quality and
safety standards required in those industries
set a benchmark that all companies should
strive to attain. He has responsibility for the
implementation of Steel & Tube’s quality strategy
and initiatives, and development of a company-
wide quality culture and reports directly to
Steel & Tube’s CEO.
Returning from Houston to New Zealand,
Damian says that the challenge of creating a new
quality management team and implementing
the ISO quality programme were two things that
attracted him to the role. And being originally
from Christchurch, it was a chance to return
back to family and friends.
Outside of work, his three young sons help to
keep him busy and on his toes with any spare
time spent surfing and keeping fit.
INTRODUCING:
DAMIAN MILLER, QUALITY MANAGER
DISTRIBUTION
Products are sourced from preferred steel mills and distributed ‘as-is’ through our national network of branches to customers.
Businesses and product lines include piping systems, chain & rigging, rural products, fastenings and stainless and engineering steels.

BUILDING BRIDGES TO GET NEW ZEALAND MOVING
Over the past 60 years, Steel & Tube has been a part of large
infrastructure projects across New Zealand, and that continues today.
SH1 between Pūhoi and Warkworth is a key transport
link connecting the upper North Island to the freight
triangle of Auckland, Waikato and Tauranga. The
project will extend the four-lane Northern Motorway
(SH1) 18.5km from the Johnstone's Hill Tunnels to
just north of Warkworth, improving both safety
and efficiency.
Eastbridge Ltd, a Napier-based company specialising
in the supply of steel bridges, towers, poles, and
heavy steel fabrication, has been awarded the
contract for the fabrication and erection of three
bridges on this section of road – Moir Hill overpass,
Ōkahu and Pūhoi.
Steel & Tube has been sub-contracted to Eastbridge
to supply approximately 4000 tonne of steel plate
and sections to be used in the construction of these
bridges, to be supplied over three shipments before
the end of 2018.
For those that are interested, a flyover of the Pūhoi to
Warkworth project can be seen here
youtu.be/3Q7yTsepuQY.
ICONIC AUCKLAND BUILDING UTILISES
STEEL & TUBE’S BESPOKE SERVICE
Steel & Tube has a dedicated
and globally knowledgeable
team of product specialists,
who work closely with specifiers
and project managers to offer
a wide array of solutions that
add value for customers.
For the past six years, the team has been
working closely with the architects on the
redesign of the Aotea Centre in Auckland. In
particular, Steel & Tube has been advocating
for the use of premium paladin cladding on
the outside of the building and believes the
colour, texture and style of this cladding will help
make the Aotea Centre a unique architectural
Auckland show piece.
This solution has now been approved and 1,892
sheets of paladin, equating to approximately
41 tonnes of cladding, will be installed over the
next 12 months.
Before
Artist's impression of Aotea Centre after the refurbishment with paladin
Artist's impression of the new Okahu viaduct

EXPANSION OF CHAIN & RIGGING
TESTING AND COMPLIANCE SERVICE
Steel & Tube has added four new Chain & Rigging mobile testing vans to
its nationwide fleet, to meet demand for customers looking to ensure
compliance, improve safety and reduce workplace accidents.
Current legislation requires users of Chain & Rigging lifting
equipment to have their equipment inspected and/or tested on
a regular basis – either six monthly or annually, dependent on
equipment type. This is to ensure the item is fully compliant and
suitable for the lifting application intended.
Steel & Tube offers a comprehensive Chain & Rigging testing and
compliance service, with a nationwide fleet of mobile testing vans
and qualified technicians who travel to customers premises to test
and tag the equipment before any test expiry date.
The service is fully computerised, with online customer testing
registers and a portal for customers to view their own records.
This service also identifies opportunities to provide products
when older equipment does not pass testing or to meet new
customer requirements.

FURTHER INVESTMENTS INTO SUPERIOR ROOFING OFFER
Steel & Tube is a major manufacturer and
supplier of profile metal roofing, cladding
and rainwater products, with processing
sites around the country. Roofing products
come in a range of shapes, thicknesses,
materials and finishes to satisfy every
requirement and preference. Our high-
strength galvanised cold-formed steel
purlins (roof framing members) also provide
a complete system suitable for supporting a
wide range of roofing and cladding materials.
We offer a comprehensive range of services to accompany and
support our product portfolio. These include product specialists
and technical experts who are trained to assist with technical
enquiries, design specifications and product selection, and are
available to all our customers through our local branch network.
With the high demand for roofing in the residential and
commercial construction sectors, alongside our drive and
commitment to meet our customers’ needs, Steel & Tube
recently invested in two new ridging machines as well as three
new SWI flashing folders. These investments support our
strategy of growth through operational and service excellence.
SWI folder takes safety to a whole new level
Two new SWI folders have recently been installed in Steel & Tube’s
facilities in Tauranga and at the recently opened mega roll-forming
site in Hornby, Christchurch, with a third folder bound for Auckland in
July. This modern and efficient piece of equipment replaces old folders
that require manual marking and loading of flashing material. Now the
flashing angles are computer set, providing excellent repetition of folding
for larger contracts with consequent improvements in productivity. The
new folders also improve product quality and take safety to a whole new
level with a built-in laser hand guard system.
Folders are used to fold flashings, which are custom made
accessories used to deflect water from any seams and joints
to keep roofs watertight. Flashings are a crucial component
of long run roofing solutions. SWI is an international leader
in sheet metal machinery and its products are used by
multi-national customers around the world.
INFRASTRUCTURE
Products are processed by Steel & Tube before sale and typically are sold on a contract or project basis, including onsite installation services.
Businesses and product lines include reinforcing and wire, coil processing including roofing and purlins, Comflor and Composite Floor Decks Limited.

New Ridging Roll Former
Previously all ridging was manufactured and shipped from Steel & Tube’s
Auckland facility to the Bay of Plenty and Waikato. Now, with the addition
of two new ridging machines in Hamilton and Tauranga, ridging can be
tailored locally, as needed, allowing the company to respond to short
lead time requests and removing the necessity to stock standard lengths
which generated significant waste. A reduction in transport costs out of
Auckland is also a key benefit.
Ridging is the capping that runs along the top seam of a
long run iron roof to keep out the weather and is supplied
with every long run roof installation. Ridging machines
are used to manufacture ‘cut to order’ ridging profiles as
well as stock lengths.
SIGNIFICANT AUCKLAND CONSTRUCTION
PROJECTS DRIVING DEMAND FOR COMFLOR
Composite Floor Decks Limited (CFDL) is a
market leader in the installation of steel floor
decking systems, and carries out the supply and
installation of ComFlor steel floor decking systems
in multi- level commercial construction projects.
CFDL is currently involved in a number of significant
commercial construction projects in Auckland, including:
›
Completion of the New Zealand International
Conference Centre.
›
The Commercial Bay project in downtown Auckland –
a 42 storey building. CFDL’s excellent service delivery
along with high Health & Safety standards led to the
business recently being recognised by the client as
Health & Safety “Contractor of the Month”.
›
The Westfield Newmarket re-development, which
will be the largest commercial construction project
in New Zealand. This project is split into two stages -
Westfield 309 and Westfield 277.
The SWI folder in use at Steel & Tube’s Hornby facility

NEW WEBSITE COMING SOON
In line with our strategy to put the customer at the heart of our business, we are updating our website to make
it easier for customers to search, view and find the products and services best suited to their needs. In addition,
the Investor Centre is being refreshed to provide easy access to shareholder information and news.
PALMERSTON NORTH
WELLINGTON
BLENHEIM
DUNEDIN & INVERCARGILL
CHRISTCHURCH & TIMARU
TAURANGA & ROTORUA
NAPIER & GISBORNE
HAMILTON
NEW PLYMOUTH
NELSON
AUCKLAND & WHANGAREI
Steel & Tube offers New Zealand’s most comprehensive
range of steel and allied products through a nationwide
product distribution and processing network, so no matter
where you are in the country we can deliver product to
you. Our National Support Centre in Wellington provides
corporate, management and support functions.
1 1 GEOGRAPHIC AREAS
43 LOCATIONS
>15,000 CUSTOMERS
~1,000 STAFF
STAY UP TO DATE WITH ENEWS:
You can also register to receive news and updates from Steel
& Tube as we release them to the market. Please note, this is a
separate service to receiving shareholder communications by
email. To sign up, scan the QR code here or go to:
www.steelandtube.co.nz/enews
CONTACT US:
Steel & Tube Holdings Ltd
IBM Building, 25 Victoria Street, Petone, NZ
PO Box 30543, Lower Hutt 5040
Tel: +64 4 570 5000 Email: investor.relations@steelandtube.co.nz
www.steelandtube.co.nz
SHAREHOLDER COMMUNICATIONS:
GO ELECTRONIC
We encourage our shareholders to
receive communications from us by
email. This may include the annual
report, share transaction statements,
dividend payment advice, shareholder
meeting notices and other company
related material.
It’s simple to sign up.
Email enquiry@computershare.co.nz,
provide your CSN/shareholder number
and confirm you want to receive Steel &
Tube communications by email.
Alternatively, you can log in to
www.investorcentre.com/nz and
update your details. For first time users,
you will need your CSN/shareholder
number and FIN to access the Investor
Centre and register your account.
Going forward, you will access this
service with your own User ID and
Password. While there, you can also
update other details including change
of address, banking instructions and
IRD number.
FUTURE NEWSLETTERS WILL
BE ONLINE ONLY – SIGN UP NOW:
Steel & Tube will be issuing Shareholder Newsletters twice a year.
To receive future newsletters, please sign up for email communications
with Computershare or subscribe to the Steel & Tube eNews service.