Steel & Tube Half Year Financial Result

18 February 2019
STU / NZX ANNOUNCEMENT


STEEL & TUBE REPORTS STRONG CONSECUTIVE HALF YEAR UPLIFT
For the six months to 31 December 2018 (1H19)

1H19 Result Summary
•
1H19 EBIT in line with previous earnings guidance of ~40% of full year earnings target
•
Significant improvement over the preceding six-month period (2H18) primarily driven by
increased sales and reduced operating expenditure
•
Reflects building momentum with benefits from Project Strive business transformation
initiatives being realised
•
Profit up 47% on comparative first half year (1H18) to $5.6m and a significant improvement
on 2H18 which included non-trading costs and impairments
•
Net debt reduced significantly to $16.0m due to capital raise, improved operating cashflows,
tighter working capital management and prudent capital expenditure
•
Solid improvement in operating cashflows to $11.1m enabling a return to dividend
payments with Board declaring an interim dividend of 3.5 cents per share
•
Company has reaffirmed FY19 EBIT guidance of $25m

FY18 FY19
$millions 1H18 2H18 1H19
Revenue 267.9 227.9 258.2
Normalised Revenue
1
249.3 224.2 258.2
EBIT
2
7.5 (43.7) 9.8
Normalised EBIT
3
13.4 4.5 9.7
NPAT 3.8 (35.9) 5.6
Assets 363.9 345.5 329.9
Net Debt 95.6 104.4 16.0
Net Operating Cashflows 17.7 (16.4) 11.1
TRIFR
4
7.44 5.46 4.46

Steel & Tube Holdings Limited (NZX: STU) has reported a result in line with expectations, with a
substantial improvement over the preceding six-month period (2H18) following the capital
restructure and as benefits from business transformation initiatives are realised. The company has
reaffirmed its FY19 guidance of $25m in earnings before interest and tax (EBIT).

1

Normalised Revenue excludes S&T Plastics which the company has exited.
2

EBIT is Earnings Before Interest and Tax.
3
Normalised EBIT excludes non-trading adjustments including write downs, impairments, business rationalisation and
restructuring costs and gains on sale of property, as well as contributions from S&T Plastics. Details are reported in Steel &
Tube’s 1H19 results presentation and in the Non-GAAP Reconciliation in the Notes to the Interim Financial Statements.
4
TRIFR: Total Recordable Injury Frequency Rate is a key metric for Steel & Tube and is the number of fatalities, lost time
injuries, substitute work, and other injuries requiring treatment by a medical professional per million hours worked.

For the six months to 31 December 2018, Steel & Tube reported revenue of $258.2m, EBIT of $9.8m
and a net profit after tax (NPAT) of $5.6m.

Excluding S&T Plastics, which the company announced it was exiting in 2H18, and non-trading
adjustments, Normalised EBIT of $9.7m was up 116% on 2H18 Normalised EBIT of $4.5m, reflecting
the positive turnaround in ongoing business performance. As expected, Normalised EBIT was $3.7m
lower compared to 1H18 ($13.4m) as the business continues its recovery from trading issues caused by
the new ERP system implementation which went live in October 2017.
The execution of business transformation initiatives is having a positive impact. Sales and volumes
have continued the upwards trajectory seen in the last twelve months, on the back of a strong focus
on customer needs, improved product availability and delivery performance. The market remains very
competitive, keeping pressure on gross margins which have also been dampened by a shift in sales mix
in some businesses.
A focus on cost management has seen a pleasing reduction in a number of areas and, excluding S&T
Plastics, has led to a 3% decrease in operating expenses as a function of sales compared to 2H18. The
cost savings achieved have enabled the business to absorb inflationary and wage and salary cost
increases and execute transformation initiatives whilst supporting increasing sales activities, without
increasing overall operating expenditure.
The half year period also included further work to leverage value from the investment into the ERP IT
platform, the capital restructure, additional organisational restructuring and strengthening of the
Leadership Team.
Net debt was $16.0m as at 31 December 2018, due to the repayment of $78.9m of debt following the
capital raising concluded in September 2018, repayments from improved operating cashflows, working
capital improvements and prudent capital expenditure. Steel & Tube’s debt facilities were successfully
refinanced in December 2018, ensuring the company has sufficient liquidity to drive the business
forward.
Operating cashflow improved to $11.1m. The Directors remain confident in the company’s turn-
around strategy and, in line with Steel & Tube’s capital policy and improving performance, have
declared a fully imputed interim dividend of 3.5 cents per share.
Steel & Tube CEO, Mark Malpass, said: “We have made good progress across most areas of the
business. Customer experience, stock availability and delivery performance have been a big focus and
have resulted in sales improvements.
“Initiatives being undertaken as part of Steel & Tube’s Strive business transformation strategy,
including optimisation of the property footprint, have yielded approximately $5m EBIT contribution in
1H19. While a combination of competitive pressures and product mix has impacted gross margins in
the half year period, we are now seeing a turnaround in our business performance.
“The economic outlook for the various key market segments in which we operate remains positive and
product pricing remains firm. The Strive turnaround programme is gaining momentum, morale is
strong, sales are up, we are becoming more efficient and are better utilising shareholder funds. There
remains work to be done but we are confident we are on the right track.”

Chair of Steel & Tube, Susan Paterson, commented: “While it has been a difficult period, we now have
a strong foundation with the right strategy, people and systems in place to drive the business forward
and deliver earnings growth. We have a clear focus on growth and shareholder value and it is pleasing
to see the business is now benefitting from the significant work undertaken in 1H19 to transform and
turnaround the organisation. The Board remains confident in the company’s positive trajectory and is
pleased to reinstate dividend payments for 1H19.”
1H19 KEY EVENTS
• Building momentum from ‘Project Strive’ business transformation initiatives
• Completed $80.9m capital raising resulting in significant reduction in debt, with further
reductions post the capital raise including benefits from working capital improvements
• AX ERP system now settled in and providing key insights into the business and supporting
customer service
• Refinanced banking facilities
• Responded to non-binding indicative offer from Fletcher Building to acquire the company
• Court decision received on steel mesh case which is currently being appealed by both Steel &
Tube and the Commerce Commission
• Strengthened the Leadership team with appointment of new GM People & Culture, GM
Strategy (January 2019) and Chief Digital Officer (February 2019)
• Group-wide update to ISO 9001:2015 quality certification and initiation of independent third-
party steel mill audits
Benefits from Project Strive initiatives (excluding S&T Plastics):
• Continuing improvement in health and safety (TRIFR improved by 40% on 1H18)
• Turn around in sales and volumes with upward trend continuing (sales +15% and volumes
+20% vs 2H18; sales +3% and volumes +11% vs 1H18)
• Reduction in operating expenses as a percentage of sales (-3% vs 2H18)
• Continuing optimisation of Steel & Tube’s national network, retaining presence whilst
improving efficiency (48 properties down to 40, including the exit from the National
Distribution Centre)
• Procurement efficiencies with Sales & Operations Planning function leading to steel purchasing
gains and freight improvements
ENDS
Further detail on the 1H19 financial result is provided in the 1H19 Results Presentation which is
available on the company website.
For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz
Jackie Ellis
Media and communications
Tel: +64 27 246 2505
Email: jackie@ellisandco.co.nz

---

Half Year Report 2019

STEEL & TUBE HALF YEAR REPORT 2019
Steel & Tube is...
One of New Zealand’s leading
providers of steel solutions, and a
proud New Zealand company, with
over 65 years of trading history
We offer New Zealand’s most
comprehensive range of steel
products, services and solutions
Our stable of best-in-class
businesses are some of this
country’s leading steel suppliers

Contents
02 Half Year Key Events
03 Half Year Financial Snapshot
04 Half Year Financial Summary
05 Chair and CEO Review
08 Measuring Our Performance
10 Interim Financial Statements
15 Notes to the Interim Financial Statements
23 Independent Review Report
On behalf of the Board and management of
Steel & Tube Holdings Limited, we are pleased
to present the FY19 Interim Report for the six
months to 31 December 2018.
Susan Paterson Mark Malpass
Chair Chief Executive Officer
58,000 PRODUCT LINES
A nationwide footprint with
40 SITES from Whangarei
to Invercargill
SOLUTIONS DRIVEN
organisation with more
than 65 years of industry
experience
Working with more than
15,000 ACTIVE
CUSTOMERS

every year
~$500 MILLION
in annualised sales
~1,000 PEOPLE
in the Steel & Tube team

HALF YEAR KEY EVENTS

Continued to implement
‘Project Strive’ business
transformation initiatives
with benefits now being
seen

Completed $80.9m
capital raising resulting
in significant reduction
in debt, with further
reductions post the capital
raise

AX ERP system now
settled in and providing
key insights into the
business and supporting
customer service

Refinanced banking
facilities

Responded to non-binding
indicative offer from
Fletcher Building to
acquire the company

Court decision received
on steel mesh case which is
currently being appealed by
both Steel & Tube and the
Commerce Commission

Strengthened the
Leadership team with
appointment of new
GM People & Culture,
GM Strategy and
Chief Digital Officer

Group-wide update to
ISO 9001:2015 quality
certification and initiation of
independent third-party steel
mill audits

Continuing improvement in
health and safety (TRIFR*
down 40% on 1H18)

Ongoing exit from
S&T Plastics
02
STEEL & TUBE HALF YEAR REPORT 2019
* TRIFR: Total Recordable Injury Frequency Rate is a
key metric for Steel & Tube and is the number of
fatalities, lost time injuries, substitute work, and
other injuries requiring treatment by a medical
professional per million hours worked.

03
REVENUE
$
258.2m
EARNINGS BEFORE
INTEREST AND TAX (EBIT)
$
9. 8m
NORMALISED EBIT
$
9. 7m
NET PROFIT AFTER TAX
(NPAT)
$
5.6m
NET DEBT
$
16.0m
NET OPERATING CASHFLOW
$
11.1m
INTERIM DIVIDEND
3.5cps
HALF YEAR FINANCIAL SNAPSHOT
03

04
STEELff&ffTUBE HALF YEAR REPORT 2019
04
STEEL & TUBE HALF YEAR REPORT 2019
HALF YEAR FINANCIAL SUMMARY
FY18 FY19
$millions1H182H18 1H19
Revenue267.9227.9258.2
Normalised Revenue¹249.3224.2258.2
EBIT¹7.5(43.7)9.8
Normalised EBIT²13.44.59.7
NPAT3.8(35.9)5.6
Assets363.9345.5329.9
Net Debt95.6104.416.0
Net Operating Cashflow17.7(16.4)11.1
• 1H19 EBIT in line with previous earnings guidance of ~40% of full year earnings target
• Significant improvement over the preceding six-month period (2H18) primarily driven
by sales and volume improvement as well as reduced operating expenditure
• Reflects building momentum with benefits from Project Strive business transformation
initiatives being realised
• Profit up 47% on comparative first half year (1H18) to $5.6m and a significant
improvement on 2H18 which included non-trading costs and impairments
• Net debt reduced significantly to $16.0m due to capital raise, improved operating
cashflows and prudent capital expenditure
• Solid improvement in operating cashflows to $11.1m enabling a return to dividend
payments with the Board declaring an interim dividend of 3.5 cents per share
• Company has reaffirmed FY19 EBIT guidance of $25m
1 S&T announced it was exiting S&T Plastics in May 2018. S&T Plastics contributed revenue: 1H18 $18.6m,
2H18 $3.7m. EBIT 1H18 $1.2m, 2H18 $(12.4m).
2 EBIT is Earnings Before Interest and Tax. Normalised EBIT excludes non-trading adjustments including
write downs, impairments, business rationalisation and restructuring costs and a gain on sale of property,
as well as contributions from S&T Plastics which the company has exited. Details are reported in Steel &
Tube’s 1H19 results presentation and in the Non GAAP Reconciliation in the Notes to the Interim Financial
Statements.

05
Steel & Tube has reported a
result in line with expectations,
with a substantial improvement
over the preceding six-month
period (2H18) following the
capital restructure and as
benefits from business
transformation initiatives are
realised. The company has
reaffirmed its FY19 guidance of
approximately $25m in earnings
before interest and tax (EBIT).
We are pleased to report on the positive
progress we have been making as we
continue with the business turn-around
commenced in mid-2018.
Customer needs, improved product
availability and delivery performance have
been a big focus and we have improved
sales, volumes and market share.
A combination of competitive pressures and
product mix has impacted gross margins.
We are now seeing a turnaround in our
business performance.
Multiple initiatives have been implemented
as part of our Strive business transformation
programme, and these have yielded
approximately $5m EBIT improvement
in 1H19.
A focus on cost management has seen a
pleasing reduction in a number of areas
and, excluding S&T Plastics, has led to a
3% decrease in operating expenses as a
function of sales compared to 2H18. The
CHAIR AND CEO REVIEW
MARK MALPASS, CHIEF EXECUTIVE OFFICERSUSAN PATERSON, CHAIR

06
STEELff&ffTUBE HALF YEAR REPORT 2019
cost savings achieved have enabled the
business to absorb inflationary and wage
and salary cost increases and execute
transformation initiatives whilst supporting
increased sales activities, without increasing
overall operating expenditure.
We now have a strong financial platform to
progress with our strategy, with a significant
reduction in debt and refinanced banking
facilities. We have a strong leadership team,
with several new appointments made in
recent months, and we continue to put in
place best-practice quality initiatives such as
the independent audit of our steel suppliers
and a group-wide update to ISO 9001: 2015
quality certification.
Health & safety remains a core focus for all
our businesses and, while there is always
room to improve, our injury rates continue
to reduce as we target a goal of zero-harm.
While it has been a difficult period, we
now have a strong foundation with the
right strategy, people and systems in
place to drive the business forward and
deliver earnings growth. We have a clear
focus on growth and shareholder value
and it is pleasing to see the business is
now benefitting from the significant work
undertaken in 1H19 to transform and
turnaround the organisation.
SIGNIFICANT HALF YEAR UPLIFT IN
FINANCIAL RESULTS
For the six months to 31 December 2018,
Steel & Tube reported revenue of $258.2m,
EBIT of $9.8m and a net profit after tax
(NPAT) of $5.6m.
Excluding S&T Plastics which the Company
announced it was exiting in 2H18, and
non-trading adjustments, Normalised EBIT
of $9.7m was up 116% on 2H18 Normalised
EBIT of $4.5m, reflecting the positive turn
around in ongoing business performance.
As expected, Normalised EBIT was $3.7m
lower compared to 1H18 ($13.4m) as the
business continues its recovery from
trading issues caused by the new ERP
system implementation which went live in
October 2017.
The execution of business transformation
initiatives is having a positive impact. Sales
and volumes have continued the upwards
trajectory seen in the last twelve months,
on the back of a strong focus on customer
needs, improved product availability and
delivery performance.
The market remains very competitive,
keeping pressure on gross margins which
have also been dampened by a shift in sales
mix in some businesses. 
CHAIR AND CEO REVIEW (CONTINUED)

07
The half year period also included
further work to leverage value from the
investment into the ERP IT platform, the
capital restructure, further organisational
restructuring and strengthening of the
Leadership Team.
Net debt was $16.0m as at 31 December
2018, due to the repayment of $78.9m of
debt following the capital raising concluded
in September 2018, repayments from
improved operating cashflows, working
capital improvements and prudent capital
expenditure. Steel & Tube’s debt facilities
were successfully refinanced in December
2018, ensuring the company has sufficient
liquidity to drive the business forward.
Operating cashflow improved to $11.1m. The
Directors remain confident in the company’s
turn-around strategy and, in line with
Steel & Tube’s capital policy and improving
performance, have declared a fully imputed
interim dividend of 3.5 cents per share.
The economic outlook for the various key
market segments in which we operate
remains positive and product pricing
remains firm. The Strive turnaround
programme is gaining momentum,
morale is strong, sales are up, we are
becoming more efficient and are better at
utilising shareholder funds. There remains
work to be done but we are confident we
are on the right track.
We thank shareholders for their continued
support.
Susan Paterson
Chair
Mark Malpass
CEO

08
STEELff&ffTUBE HALF YEAR REPORT 2019
MEASURING OUR PERFORMANCE
Continuing improvement
in health and safety
TRIFR down 40% on 1HFY18
Turn around in volumes
and sales with upward
trend continuing
Sales +15% and volumes
+20% vs 2HFY18¹
Sales +3% and volumes
+11% vs 1HFY18¹
Reduction in operating
expenses as a percentage
of sales
Down 3% vs 2HFY18²
Down 1% vs 1HFY18²
Reduction in labour
expenses as a percentage
of sales
Benefits from FY18
restructuring and ERP system
Continuing optimisation of
Steel & Tube’s national
network, retaining presence
whilst improving efficiency
48 properties down to 40
Financial benefits from
Strive initiatives
Approx. $5m EBIT
improvement in 1HFY19
1 Excludes S&T Plastics
2 Operating expenses excluding Depreciation, Amortisation and Normalisation adjustments
as outlined in the Results Presentation.
08
STEEL & TUBE HALF YEAR REPORT 2019

0909
(All figures presented are Normalised and exclude S&T Plastics)
Sales Trend
DecNovOctSepAugJulJunMayAprMarFebJan
Volume Trend
$m (Monthly)
Volume (T
onnes
)
+15%
+2
0%
The positive sales
trajectory seen in
last 12 months is
continuing as the
company benefits
from the focus on
customer experience,
improving stock
availability and
delivery performance
Focus on cost
management as well
as improving sales
has seen a pleasing
improvement in
operating costs as a
percentage of sales
2018 OPEX/SALES PERFORMANCE TREND LINE
2018 MONTHLY SALES PERFORMANCE TREND LINE
Labour/Sales (trend)
Non-labour/Sales (trend)
Opex/Sales (trend)
DecNovOctSepAugJulJunMayAprMarFebJan

INTERIM
FINANCIAL STATEMENTS
10
STEEL & TUBE HALF YEAR REPORT 2018
INTERIM
FINANCIAL STATEMENTS
10
STEEL & TUBE HALF YEAR REPORT 2019

11
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
11
Statement Of Profit Or Loss And Other Comprehensive Income
FOR THE PERIOD ENDED 31 DECEMBER 2018
Unaudited
December
2018
Unaudited
December
2017
$000$000
Sales revenue258,234 267,852
Other operating income799 76
Cost of sales(200,719)(206,563)
Operating expenses(48,889)(54,321)
Operating earnings before other gains and financing costs9,425 7,044
Other gains394 413
Earnings before interest and tax9,819 7,457
Interest income72 6
Interest expense(2,036)(2,190)
Profit before tax7,855 5,273
Tax expense (2,254)(1,507)
Profit for the period attributable to owners of the Company5,601 3,766
Items that may subsequently be reclassified to profit or loss
Other comprehensive (loss) / income - hedging reserve(753)1,175
Items that may not subsequently be reclassified to profit or loss
Other comprehensive income - deferred tax on revaluation reserve-1,878
Total comprehensive income4,848 6,819
Basic earnings per share (cents)4.0 4.2
Diluted earnings per share (cents)4.0 4.2

12
STEELff&ffTUBE HALF YEAR REPORT 2019
The accompanying notes form part of these financial statements.
Statement Of Changes In Equity
FOR THE PERIOD ENDED 31 DECEMBER 2018
Share
capital
Retained
earnings
Hedging
reserve
Reval-
uation
Reserve
Treasury
shares
Share-
based
payments
Reserve
Total
equity
Notes$000$000$000$000$000$000$000
Balance at 1 July 2018
77,845 90,018 943 6,509 (2,896)193 172,612
Impact of adoption of new
accounting standard (net of tax)
10
-(617)----(617)
Restated total equity at the
beginning of the financial year
77,845 89,401 943 6,509 (2,896)193 171,995
Comprehensive income
Profit after tax
- 5,601 - - - - 5,601
Other comprehensive income
Hedging reserve (net of tax)
- - (753) - - - (753)
Total comprehensive income
- 5,601 (753)- - - 4,848
Transactions with owners
Issue of share capital
(net of issue costs)
378,866 - - - - - 78,866
Options vested during the period
- - - - - 70 70
Unaudited balance at
31 December 2018
156,711 95,002 190 6,509 (2,896)263 255,779
Balance at 1 July 2017
77,804 105,552 (1,193)32,805 (3,431)593 212,130
Comprehensive income
Profit after tax
- 3,766 - - - - 3,766
Other comprehensive income
Hedging reserve (net of tax)
- - 1,175 - - - 1,175
Deferred tax on asset sale
---1,878 --1,878
Total comprehensive income
- 3,766 1,175 1,878 - - 6,819
Transfer on sale of property
-21,689 -(21,689)---
Transactions with owners
Dividends paid
- (6,331)- - - - (6,331)
Proceeds from partly paid shares
41 - - - - - 41
Options vested during the period
- - - - - 235 235
Unaudited balance at
31 December 2017
77,845 124,676 (18)12,994 (3,431)828 212,894

13
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
13
Balance Sheet
AS AT 31 DECEMBER 2018
UnauditedAudited
December 2018June 2018
Notes
$000$000
Current assets
Cash and cash equivalents7,9945,584
Trade and other receivables84,07099,181
Inventories123,806116,047
Income tax refund- 5,165
Derivative financial instruments4081,271
Assets held for sale5
8741,639
217,152228,887
Non-current assets
Property, plant and equipment52,67152,739
Intangibles655,72957,423
Deferred tax
4,3286,488
112,728116,650
Total assets
329,880345,537
Current liabilities
Trade and other payables42,82049,867
Provisions3,4019,215
Derivative financial instruments
19917
46,42059,099
Non-current liabilities
Trade and other payables2,0512,108
Borrowings424,000109,935
Provisions
1,6301,783
27,681113,826
Equity
Share capital3156,71177,845
Retained earnings95,00290,018
Other reserves
4,0664,749
255,779172,612
Total equity and liabilities
329,880345,537
These financial statements and the accompanying notes were authorised by the Board
on 15 February 2019.
For the Board



Susan Paterson Anne Urlwin
Chair Director

14
STEELff&ffTUBE HALF YEAR REPORT 2019
The accompanying notes form part of these financial statements.
Statement Of Cash Flows
FOR THE PERIOD ENDED 31 DECEMBER 2018
UnauditedUnaudited
December 2018December 2017
$000$000
Cash flows from operating activities
Customer receipts
274,579 272,794
Interest receipts
72 6
Payments to suppliers and employees
(266,728)(249,741)
Income tax refunds / (payments)
5,603 (3,120)
Interest payments
(2,436)(2,190)
Net cash inflow from operating activities
11,090 17,749
Cash flows from investing activities
Property, plant and equipment disposals
1,275 31,460
Property, plant and equipment and intangible asset purchases
(2,886)(11,608)
Net cash (outflow) / inflow from investing activities
(1,611)19,852
Cash flows from financing activities
Issue of share capital (net of issue costs)
78,866 -
Proceeds from partly paid shares
-41
Borrowings
(85,935)(36,681)
Dividends paid
-(6,331)
Net cash outflow from financing activities
(7,069)(42,971)
Net increase / (decrease) in cash and cash equivalents
2,410 (5,370)
Cash and cash equivalents at beginning of the period
5,584 6,517
Cash and cash equivalents at end of the period
7,994 1,147
Represented by:
Cash and cash equivalents
7,994 1,147

15
Notes To The Interim Financial Statements
FOR THE PERIOD ENDED 31 DECEMBER 2018
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Steel & Tube Holdings Limited (the Company or Steel & Tube) is registered under the Companies Act 1993
and is a FMC Reporting Entity under the Financial Markets Conduct Act 2013. The Company is a limited
liability company incorporated and domiciled in New Zealand. The Group comprises Steel & Tube Holdings
Limited and its subsidiaries.
The Group’s principal activities relate to the distribution and processing of steel products, fastenings and
metal floor decking.
The registered office of the Company is Level 7, 25 Victoria Street, Petone, Lower Hutt 5012, New Zealand.
These financial statements have been reviewed, not audited, and were approved for issue on
15 February 2019.
These financial statements are presented in New Zealand dollars and rounded to the nearest thousand.
Basis of preparation
The Group is a for-profit entity. Its unaudited interim financial statements have been prepared in
accordance with, and comply with, New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with NZ IAS 34: Interim Financial Reporting and IAS 34: Interim Financial Reporting and the
NZX Main Board Listing Rules.
These financial statements do not include all the information required for an annual financial report and
consequently should be read in conjunction with the audited financial statements of the Group for the year
ended 30 June 2018.
These financial statements have been prepared using the same accounting policies and methods of
computation as the financial statements for the year ended 30 June 2018, with the exception of the
adoption of NZ IFRS 15 Revenue from Contracts with Customers (NZ IFRS 15) and NZ IFRS 9 Financial
Instruments (NZ IFRS 9).
The changes to the Group’s accounting policies resulting from the adoption of NZ IFRS 15 and NZ IFRS 9 are
outlined in note 10.
Prior Period Comparatives
The prior period balances have been reclassified to align with the presentation at 30 June 2018, as outlined
in the audited financial statements for the year ended 30 June 2018.

16
STEELff&ffTUBE HALF YEAR REPORT 2019
2. OPERATING SEGMENTS
The Group has reclassified the S&T Plastics business from the Infrastructure segment to Other/Elimination
column as the business and/or its assets are held for sale and are no longer contributing to the Group’s
trading EBIT. The comparative period has been adjusted to be consistent with the current presentation.
The segment information provided to the CODM (the Group’s Chief Operating Decision Maker) for the
period ended 31 December 2018 is as follows:
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
December 2018$000$000$000 $000
Timing of revenue recognition
At a point in time149,838 57,686  1,047208,571
Over time
-49,663 - 49,663
Total revenue from external customers
149,838 107,349 1,047 258,234
Depreciation and amortisation(844)(1,192)(1,635)(3,671)
Segment EBIT 1,957 7,109 753 9,819
Interest (net)(1,964)
Reconciled to Group Profit Before Tax7,855
Total assets
166,148 104,850 58,882 329,880
Total liabilities20,376 19,167 34,558 74,101
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
December 2017$000$000$000 $000
Revenue from external customers155,852 93,432 18,568 267,852
Depreciation and amortisation(991)(1,386)(2,067)(4,444)
Segment EBIT*(527)7,805 179 7,457 
Interest (net)(2,184)
Reconciled to Group Profit Before Tax5,273
Total assets179,499 102,925 81,492 363,916
Total liabilities14,401 26,189 110,432 151,022
* The results for the half year ended 31 December 2017 include a total of $7.7m non-trading adjustments
for impairment of inventory, rationalisation and restructuring costs and a gain on sale of property.

17
3. ISSUE OF SHARE CAPITAL
The Group concluded a placement and pro rata rights offer capital raise in August 2018, issuing an
additional 75,364,514 shares, with net proceeds of $78.9m being received. The capital raise comprised
an upfront placement of $20.8m to eligible institutional investors and a pro-rata rights offer to eligible
shareholders for $60.1m. Both the upfront placement and pro-rata rights offer were fully subscribed.
Incremental directly attributable issue costs of $2.0m were incurred and have been netted off against the
proceeds of the capital raising.
4. BORROWINGS
The Group successfully refinanced its banking facilities in December 2018 on terms and conditions
commercially acceptable to the Group. The Group now has syndicated committed bank borrowing
facilities of $70m, comprising a $25m Working Capital facility with a maturity date of 30 November 2019 (31
December 2018: $nil drawn), and a $45m Revolving Facility with a maturity date of 30 November 2021
(31 December 2018: $24m drawn). The Working Capital facility is expected to be renewed on an annual
basis. The previous bank borrowing facilities were repaid and cancelled during December 2018.
5. ASSETS HELD FOR SALE
As at 31 December 2018, the S&T Plastics business and/or its assets continue to be marketed for sale. The
property, plant and equipment related to S&T Plastics has a residual fair value less costs to sell of $0.9m
as at 31 December 2018 and is presented as held for sale. For the period ended 31 December 2017, S&T
Plastics contributed Sales revenue of $18.6m, less Cost of sales of $14.9m and Operating expenses of $2.5m,
resulting in EBIT contribution of $1.2m.
6. IMPAIRMENT TESTING AND INTANGIBLES
Included in Intangibles is $37.1m of Goodwill. NZ IAS 36 Impairment of Assets requires the Group to
regularly assess for any indicators of impairment and test the recoverable amount of goodwill against its
carrying value at least annually. As at 31 December 2018 the Group identified an indicator of impairment
and, as part of preparing these interim financial statements, undertook an internal valuation to assess the
carrying value of the Group’s assets including Goodwill. Based on the calculations completed, there is no
impairment at a Group level as at 31 December 2018.
As at 31 December 2018 the recoverable amount of the Group’s cash generating units (CGU’s) exceeded
their carrying values and there is no impairment of Goodwill. The forecast cash flows used to assess for
impairment were based on the latest Group forecast.
7. RELATED PARTIES
The Company has related party relationships with its subsidiaries and with key management personnel.
There have been no material changes in the nature or amount of related party transactions for the Group
since 30 June 2018.
8. LITIGATION
In December 2016 the Commerce Commission (the Commission) announced that it had completed its
investigation in relation to several steel companies, and that it intended to prosecute multiple companies
under the Fair Trading Act, including Steel & Tube. The Commission’s prosecution of Steel & Tube related
to the inadvertent use of a testing laboratories logo on test certificates, and application of testing
methodologies.

18
STEELff&ffTUBE HALF YEAR REPORT 2019
In October 2018 the Auckland District Court imposed a fine of $1.885m. Both Steel & Tube and the
Commission have appealed the decision. A date for the appeal has been set for March 2019.
A provision for fines, penalties, costs and expected recoveries in relation to this prosecution has been
provided for in the Group’s financial statements at 31 December 2018.
9. SUBSEQUENT EVENTS
On 15 February 2019 the Board declared a fully-imputed dividend of 3.5 cents per share ($5.8m) and a
supplementary dividend to non-resident shareholders of 0.62 cents per share. The dividends will be paid to
shareholders on 29 March 2019.
10. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
NZ IFRS 9 Financial Instruments – impact of adoption
Changes in accounting policies
The group has adopted NZ IFRS 9 from 1 July 2018 which has resulted in changes in accounting policies and
adjustments to the amounts recognised in the financial statements.
The Group has applied NZ IFRS 9 retrospectively, but has elected not to restate comparative information.
Classification
NZ IFRS 9 impacts the classifications of the following financial assets:
• Cash and cash equivalents
• Trade receivables
• Other receivables
Until 30 June 2018, the Group classified its financial assets as loans and receivables under NZ IAS 39.
From 1 July 2018, the Group classifies its financial assets as being measured at amortised cost.
There is no change in the measurement of the financial assets as a result of the reclassification.
The Group continues to apply NZ IAS 39 in respect to cash flow hedge accounting for forward exchange
contracts.
Impairment
From 1 July 2018, the Group assesses on a forward looking basis the expected credit losses associated with
its financial assets carried at amortised cost. The impairment methodology applied depends on whether
there has been a significant increase in credit risk.
The expected credit loss (ECL) allowances for financial assets are based on assumptions about the risk of
default and expected credit loss rates. The Group uses its judgement in making these assumptions and
selecting the inputs to the impairment calculation, which is based on the Group’s historical experience, the
aging profile of the financial assets, existing market conditions as well as external economic forecasts at
each reporting date. Details of key considerations and judgements are detailed below.

19
Trade receivables
The Group has analysed its Trade receivables balances using three different characteristics and calculated
the ECL allowance by considering the impact of each:
Consideration/Judgements
Baseline/AgingThe Group’s “baseline” expectation for credit loss is informed by past experience and
the aging profile of the balances, applying an increasing expected credit loss estimate
as the balance ages.
SectorThe Group has considered the credit risk related to the market sector that its
customers operate in and has made an adjustment to the ECL allowance based on
assessment of the respective financial strength of each industry sector.
RegionThe Group has considered the credit risk of its trade receivables portfolio based
on the respective financial strength of each geographic region, and has made an
adjustment to the baseline ECL allowance to reflect this.
The ECL allowance for Trade receivables as at 1 July 2018 was determined as follows:
Current
$000
Within 1
Month
$000
1 - 2
Months
$000
Beyond 2
Months
$000
Total
$000
Gross carrying amount 68,5848,0283,0288,30987,949
Baseline/Aging 3431612263,2353,965
Region (10)(5)(7)(96)(118)
Sector (1) - (1)(8)(10)
Expected credit loss allowance 3321562183,1313,837
The expected credit loss allowance for Trade receivables at 30 June 2018, as reported in the 30 June 2018
financial statements, reconciles to the opening loss allowance on 1 July 2018 as follows:
Loss allowance for Trade receivables$000
At 30 June 2018 – calculated under NZ IAS 392,980
Amounts restated through opening retained earnings (before tax)857
Opening loss allowance as at 1 July 2018 – calculated under NZ IFRS 93,837
Over the period the baseline/aging characteristic of the Trade receivables balance has improved, resulting
in a reduction in the expected credit loss allowance of $0.8m for the half year ended 31 December
2018. This amount was recognised during the period within the Statement of Profit and Loss and Other
Comprehensive Income.

20
STEELff&ffTUBE HALF YEAR REPORT 2019
NZ IFRS 15 Revenue from Contracts with Customers – impact of adoption
The Group has adopted NZ IFRS 15 from 1 July 2018 which has resulted in changes in accounting policies
relating to the recognition of revenue. The Group applied the modified retrospective approach for the
transition to NZ IFRS 15.
To assess the impact of NZ IFRS 15 on the Group, the Group has segregated the Group’s revenue streams
into three portfolios of contracts - Cash or credit supply sales, supply and installation sales and supply only
sales. For each contract portfolio, the five-step method outlined in NZ IFRS 15 was applied to assess the
impact on revenue recognition.
The Group concluded that the implementation of NZ IFRS 15 has no material impact on revenue
recognition.
The table below provides further information on the application of NZ IFRS 15 across the Group.
Contract
PortfolioDescription
Key
judgementsOutcomeTiming of Recognition
Cash or Credit
Supply Sales
Any sales from
individual orders
without a formal
written contract
No major
judgement
required
There is one
performance
obligation, being
the supply of the
product
Point in time
Revenue is recognised at point of sale
when the product is delivered.
Supply and
Installation
Sales
Any contracts
that contain
supply and
installation
performance
obligations
Determining
whether or
not the supply
and installation
components
are “distinct”
within the
context of the
contract
There are two
performance
obligations,
being supply of
the product and
installation of the
product.
Installation of
the product is
considered a distinct
performance
obligation as supply
only contracts are
also available
Over time
Revenue relating to the supply
performance obligation follows the
same recognition process as for the
‘Supply Only Sales’ contract portfolio.
Installation of the product enhances
an asset controlled by the customer as
the installation is completed.
Revenue relating to the installation
performance obligation is recognised
when the installation is completed, or
on a stage of completion basis based
on the input of labour costs.
Supply Only
Sales
Any contracts/
sales agreements
that include
supply of steel
product clauses
Determining
whether each
act of supply
should be
treated as
a separate
performance
obligation
within the
contract
There is one
performance
obligation, being
the act of the supply.
Irrespective of how
many supply events
occur, the products
supplied are all
highly interrelated
in that they all are
required for the
same construction
project
Over time
The products supplied are required
to be modified to a significant extent
and do not create an asset with an
alternative use to the Group. The
Group has a right to consideration
from the customer in an amount
that corresponds directly with the
value to the customer of the Group’s
performance completed to date.
Revenue relating to Supply Only
Sales is recognised in the amount to
which the Group has a right to invoice
under the terms of the construction
contract.

21
NZ IFRS 16 Leases
NZ IFRS 16 Leases (NZ IFRS 16) requires lessees to account for all leases under a single on-balance sheet
model in a similar way to finance leases under NZ IAS 17. NZ IFRS 16 will require lessees to recognise a lease
liability reflecting future lease payments and a “right-of-use asset” for virtually all lease contracts within the
balance sheet. The Statement of Profit or Loss and Other Comprehensive Income will also be impacted by
the recognition of an interest expense and a depreciation expense and the removal of the current lease
expense.
The Group will apply NZ IFRS 16 from 1 July 2019. The Group intends to adopt the simplified transition
approach and will not restate comparative amounts for the period prior to first adoption.
The Group has significant lease obligations so adoption of NZ IFRS 16 will have a material impact on the
Balance Sheet and will impact the following line items in the Balance Sheet and Statement of Profit or Loss
and Other Comprehensive Income:
Balance Sheet:
• Recognition of a right to use asset;
• Recognition of a lease liability; and
• Adjustment in opening retained earnings.
Statement of Profit or Loss and Other Comprehensive Income:
• Decrease in operating leases expense;
• Increase in depreciation and amortisation expense; and
• Increase in finance costs (interest expense).
The amount of the asset and liability that the Group will recognise upon adoption of NZ IFRS 16 will be
determined by the lease commitments that exceed 12 months’ duration at the time of adoption.
The Group is currently undertaking an assessment to determine the impact of the new standard on the
Group’s financial statements.
The above has no impact on the cash flows of the Group and the change is for financial reporting purposes
only.

22
STEELff&ffTUBE HALF YEAR REPORT 2019
NON-GAAP FINANCIAL INFORMATION
The Group uses several non-GAAP measures when discussing financial performance. Management
believes that these measures provide useful information on the underlying performance of the Group.
They may be used internally to evaluate performance, analyse trends and allocate resources. Non-GAAP
financial measures should not be viewed in isolation nor considered as a substitute for measures reported
in accordance with NZ IFRS.
The Group’s unaudited reconciliation of non-GAAP measures to GAAP measures for the half year
ended 31 December 2018 is detailed below.
Reconciliation of GAAP to Non GAAP Measures
UnauditedUnaudited
December 2018December 2017
$000$000
GAAP: Earnings before interest and Tax (EBIT)9,819 7,457
Add back Normalisation adjustments:
Excluding S&T Plastics EBIT (no longer contributing
to trading EBIT and held for sale)*
(144)(1,214)
Gain on Property Sale
- (413)
Impairment of inventory (excluding S&T Plastics)*
- 4,983
Rationalisation and restructuring costs
- 2,605
Normalised EBIT – Non GAAP
9,675 13,418
* S&T Plastics EBIT for the period ended 31 December 2017 included impairment of inventory of $0.5m.
Definitions:
• EBIT: This means earnings before the deduction of interest and tax and is calculated as profit for the
period before net interest costs and tax.
• Normalised EBIT: This means EBIT after Normalisation adjustments.
• Normalisation adjustments: These are transactions that are unusual by size or nature in a particular
accounting period. Excluding these transactions can assist users in forming a view of the underlying
performance of the Group. Unusual transactions can be as a result of specific events or circumstances
or major acquisitions, disposals or divestments that are not expected to occur frequently.

23


PricewaterhouseCoopers, 10 Waterloo Quay, PO Box 243, Wellington 6140, New Zealand
T: +64 4 462 7000, F: +64 4 462 7001, pwc.co.nz
Independent review report
To the shareholders of Steel & Tube Holdings Limited

Report on the interim financial statements
We have reviewed the accompanying interim financial statements of Steel & Tube Holdings Limited
(“the Company”) and its controlled entities (“the Group”) on pages 11 to 21 which comprise the balance
sheet as at 31 December 2018, and the statement of profit or loss and other comprehensive income, the
statement of changes in equity and the statement of cash flows for the six month period ended on that
date and selected explanatory notes.
Directors’ responsibility for the interim financial statements
The Directors are responsible on behalf of the Company for the preparation and fair presentation of
these interim financial statements in accordance with International Accounting Standard 34 Interim
Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34
Interim Financial Reporting (NZ IAS 34) and for such internal control as the Directors determine is
necessary to enable the preparation of interim financial statements that are free from material
misstatement, whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion on the accompanying interim financial statements based
on our review. We conducted our review in accordance with the New Zealand Standard on Review
Engagements 2410 Review of Financial Statements Performed by the Independent Auditor of the
Entity ( NZ SRE 2410). NZ SRE 2410 requires us to conclude whether anything has come to our
attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. As the auditors of the
Company, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand) and International
Standards on Auditing. Accordingly, we do not express an audit opinion on these interim financial
statements.
We are independent of the Group. Our firm carries out other services for the Group in the areas of tax
advisory and compliance and treasury policy review services. The provision of these other services has
not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim
financial statements of the Group do not present fairly, in all material respects, the financial position
of the Group as at 31 December 2018, and of its financial performance and cash flows for the six month
period then ended, in accordance with IAS 34 and NZ IAS 34.

24
STEEL & TUBE HALF YEAR REPORT 2019
The accompanying notes form part of these financial statements.



Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s Shareholders those matters which we are required
to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.

For and on behalf of:




Chartered Accountants Wellington
15 February 2019

REGISTERED OFFICE
Level 7, 25 Victoria Street, Petone,
Lower Hutt 5012, New Zealand
PO Box 30543, Lower Hutt 5040, New Zealand
Ph: +64 4 570 5000 Fax: +64 4 569 2453
Email: info@steelandtube.co.nz
Website: www.steelandtube.co.nz
SHARE REGISTRY
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand
Ph: +64 9 488 8777 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz
AUDITORS
PricewaterhouseCoopers

---

Appendix 1
Reporting Period
Previous Reporting Period
Revenue from Ordinary Activities
Tax expense - operating income
Steel & Tube Holdings Limited
Results for Announcement to the Market
6 months to 31 December 2018
6 months to 31 December 2017
Amount ($000)Percentage change
258,234 (4%)
Profit before tax7,85549%
2,25450%
Profit after tax attributable to security holders5,60149%
Current yearPrior year
Net Tangible Assets per Security$1.21$1.85
Amount per securityImputed amount per
security
Interim dividend3.5 cents1.36 cents
Supplementary dividend0.62 cents
Record date15 March 2019
Payment date29 March 2019
The financial statements attached to this report have been
reviewed.
CommentsRefer to separate attachment

---

APPENDIX 7 - NZSX Listing Rules
Notice of event affecting securities
Number of pages including this one
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10.(Please provide any other relevant
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required. details on additional pages)
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
X
whether:
Interim
X
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Enter N/A if not applicable
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
$$0.002431$0.013611
$
15032019
NZ Dollars$0.006176
$5,809,038.90
Date Payable
29032019
In dollars and cents
165,997,540ordinary shares
3.5cents per share
Ordinary SharesNZSUTE0001S5
EMAIL: announce@nzx.com
1
STEEL & TUBE HOLDINGS LIMITED
G SmithDirectors' Resolution
(04) 570-5000(04) 570-245315022019

---

Interim Results
Presentation
For the six months ended
31 December 2018
1

STEEL & TUBE IS...
One of NewZealand’s leading providers of steel solutions, and a
proud NewZealand company, with over 65 years of trading history
We offer NewZealand’s most comprehensive range of
steelproducts, services and solutions
We operate with a significant presence across New Zealand
servicing a wide range of customers
2

1H19 EBIT in line with earnings guidance of ~40%
of full year earnings target
Significant improvement on 2H18, with strong
sales growth and reduction in operating costs
Result reflects building momentum with benefits
from Project Strive initiatives and recovery from
prior year issues
Net debt reduced from $104.4m to $16.0m, due
to capital raise, improved operating cashflows and
prudent capital expenditure
Improvement in operating cashflows to $11.1m
enabling a return to dividend payments
Board has declared interim dividend of 3.5 cents
per share
Company has reaffirmed FY19 EBIT guidance of
$25m
HALF YEAR (1H19) FINANCIAL SUMMARY
1)S&T announced it was exiting S&T Plastics in May 2018. S&T Plastics contributed
Revenue:1H18 $18.6m, 2H18 $3.7m and EBIT: 1H18 $1.2m, 2H18 $(12.4m).
2)EBIT is Earnings Before Interest and Tax. Normalised EBIT excludes non-trading
adjustments including write downs, impairments, business rationalisation and
restructuring costs and gains on sale of property, as well as contributions from
S&T Plastics which the company is exiting. Refer to Slide 28 for further details.
3
FY18FY19
$M1H182H181H19
Revenue267.9227.9258.2
NormalisedRevenue
(1)
249.3224.2258.2
EBIT
(1)
7.5(43.7)9.8
Normalised EBIT
(2)
13.44.59.7
NPAT3.8(35.9)5.6
Assets363.9345.5329.9
Net Debt95.6104.416.0
Net Operating Cashflow
17.7(16.4)11.1

Continuing improvement in health and safety performance (TRIFR*down 40% on 1H18)
Building momentum from Project Strive business transformation initiatives
AX ERP system now settled in and providing key insights into the business and supporting customer service
Completed $80.9m capital raising resulting in significant reduction in debt, with further reductions post the
capital raise from improved operating cash flows and prudent capital expenditure
Responded to non-binding indicative offer from Fletcher Building to acquire the company
Court decision received on steel mesh case which is currently being appealed by both Steel & Tube and the
Commerce Commission
Strengthened the Leadership team with appointment of new GM People & Culture, GM Strategy (January
2019) and Chief Digital Officer (February 2019)
Group-wide update to ISO 9001:2015 quality certification and initiation of independent third-party steel mill
audits
*TRIFR: Total Recordable Injury Frequency Rate is a key metric for Steel & Tube and is the number of fatalities, lost time injuries, substitute work, and other injuries requiring treatment by a
medical professional per million hours worked.
HALF YEAR (1H19) KEY EVENTS
4

COMPARATIVE SIX-MONTH SNAPSHOT
150
200
250
300
1H182H181H19
$M
REVENUE
Normalised RevenueS&T Plastics
-50
-30
-10
10
1H181H18N2H182H18N1H19
$M
EBIT
Reported EBITNormalised
-40
-30
-20
-10
0
10
1H182H181H19
$M
NPAT
-20
-10
0
10
20
1H182H181H19
$M
OPERATING CASHFLOW
Significant improvement on 2H18
results
Sales revenue returning to
previous levels with strong turn
around on 2H18
EBIT and NPAT recovering from
2H18
Solid improvement in operating
cashflow
Positive trajectory building
momentum
5
S&T announced it was exiting S&T Plastics in May 2018. S&T
Plastics contributed Revenue:1H18 $18.6m, 2H18 $3.7m and
EBIT: 1H18 $1.2m, 2H18 $(12.4m)
EBIT is Earnings Before Interest and Tax. Normalised EBIT excludes
non-trading adjustments including write downs, impairments,
business rationalisation and restructuring costs and gains on sale
of property, as well as contributions from S&T Plastics which the
company is exiting. Refer to Slide 28 for further details.

OUR STRATEGY FOR PROFITABLE GROWTH
6

Continuing improvement in health and safetyTRIFR down 40% on 1HFY18
Continuing optimisation of Steel & Tube’s national
network providing cost benefits
48 locations down to 40
Sales and volume upward trend continuing
Sales +15% and volumes +20% vs 2HFY18(1)
Sales +3% and volumes+11% vs 1HFY18(1)
Reduction in non-labour expenses; reduction in
overall operating expenses as a percentage of sales
Opex/Salesdown 3% vs 2HFY18(2)and down
1% vs 1HFY18(2)
Reduction in labour expenses as a percentage of
sales
Benefits from FY18 restructuring and ERP
system
Procurement efficiencies
S&OP led steel purchasing gainsand freight
improvements
Strengthening of Leadership Team
Appointment of GM People& Culture, GM
Strategy, and Chief Digital Officer
PROGRESS UNDER STRIVING FOR EXCELLENCE STRATEGY
7
1)Excludes S&T Plastics revenue of 1H18 $18.6m, 2H18 $3.7m
2)Operating expenses (Opex) excluding Depreciation, Amortisation and Normalisation adjustments as outlined on Slide 28

IMPROVING SALES TRENDS
Positive trajectory seen in last 12 months ascontinuing focus on customerexperience, improving
stock availability and delivery performance realises benefits
8
10
13
16
20
40
60
Dec-17Mar-18Jun-18Sep-18Dec-18
Volumes(Tonnes)
$M (Monthly)
2018 MONTHLY SALES PERFORMANCE TREND LINE
Sales TrendVolume Trend
Jan-18
All figures exclude S&T Plastics
+20%
+15%

REDUCTION IN OPERATING EXPENSES
Pleasing reduction in overall
operating costsoffsetting
inflation pressures and
Strive implementation costs
Reduction in non-labour
expenses
Combined with labour
efficiencies, total operating
costs as a percentage of
sales has improved 3% from
2H18 (improved by 1% from
1H18)
5%
15%
25%
Dec-17Mar-18Jun-18Sep-18Dec-18
2018 OPEX/SALES PERFORMANCE TREND LINE
Opex/Sales TrendNon-labour/Sales TrendLabour/Sales Trend
Jan-18
9
Operating expenses (Opex) excluding Depreciation, Amortisation and Normalised as outlined on Slide 28

STRIVING FOR EXCELLENCE STRATEGY
Location consolidations, retaining presence whilst improving efficiency
10

Achieved by exiting third party
warehousing and integrating into
existing S&T distribution centres
Savings exceeded expectations due
to the acceleration of integrations
in 1H19
FY19 forecast benefit $1.7m
11
400
800
1,200
1,600
2,000
Jun-18Sep-18Dec-18Mar-19Jun-19
$K
YTD
1H19 EXTERNAL WAREHOUSING SAVINGS
Actual SavingsForecast Savings
Jul-18
STRIVING FOR EXCELLENCE STRATEGY
Integration of external warehousing

Increasing freight benefits in the
Infrastructure business
Freight efficiencies resulted in an
83% improvement relative to the
1H18 baseline
STRIVING FOR EXCELLENCE STRATEGY
Operational excellence freight efficiencies
12
200
400
600
800
Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18
$K
YTD
1H19 INFRASTRUCTURE FREIGHT BENEFITS
Actual BenefitsHY18 Baseline

EARNINGS BEFORE INTEREST AND TAX (EBIT)
EBIT is Earnings Before Interest and Tax. Normalised EBIT excludes non-trading adjustments including write downs, impairments, business rationalisation and restructuring costs, and gains on
sale of property, as well as contributions from S&T Plastics which the company is exiting. Refer to Slide 28 for further details.
13
$4.5m
$9.7m
$9.8m
$3.3m
$1.9m
$0.1m
0
5
10
15
2H18 EBIT
Normalised
Sales growth/
Strive
Operating cost
efficiencies/
Strive
1H19 EBIT
Normalised
S&T Plastics1H19 EBIT
Reported
$M
EBIT BRIDGE FROM 2H18N TO 1H19
Benefits of Project Strive being
seen in improved sales
performance and increased
operating efficiencies
1H19 NormalisedEBIT up 116% on
2H18, reflecting the positive
turnaround in ongoing business
performance
As expected, 1H19 NormalisedEBIT
lower compared to 1H18 as the
business continues its recovery
from trading issues caused by the
new ERP system implementation
which went live in October 2017.

BALANCE SHEET
Prudent management of capital
expenditure
Improvement in debtors and
collection rates
Increased inventory to meet customer
availability, reduced slow moving
inventory, further optimisation
underway
$80.9m capital raise in 1H19
significantly reduced gearing
$MFY181H19
Inventories116.0123.8
Trade and otherreceivables99.284.1
Trade and other payables(49.9)(42.8)
Working Capital 165.3165.1
Cash and cash equivalents5.68.0
Property, plant & equipment52.752.7
Intangibles57.455.7
Other assets14.65.6
Total Assets345.5329.9
Borrowings110.024.0
Other13.17.3
Total Liabilities172.974.1
Shareholders Equity172.6255.8
14

SIGNIFICANT REDUCTION IN NET DEBT
Significant reduction in debt
following capital raising concluded in
September 2018, repayments from
improved operating cashflows and
prudent capital expenditure
Ongoing efforts to improve working
capital management will further
benefit operating cash flow
New $70m syndicated debt facilities
executed in December 2018
providing sufficient liquidity and
lower borrowing costs
Balance Sheet provides the financial
strength to execute strategies and
manage business trading cycles
$104.4m
$25.5m
$16.0m
($78.9m)
($11.1m)
($1.3m)
+$2.9m
0
30
60
90
120
Net Debt -
FY18
Net Capital
Raising
Net Debt after
capital raise
Operating
cashflow
Sale of assetsPurchase of
assets
Net Debt -
1HY19
$M
NET DEBT BRIDGE FROM FY18 TO 1H19
15

INVENTORY
16
Improving core product availability
and meeting customer demand
has been a focus
Product price increases have also
contributed to increased inventory
value
~$6m of aged inventory has been
scrapped relating to FY18 $8m
provision for impairment
$116.0m
$122.7m
+$3.2m
+$3.8m
+$3.0m
($2.2m)
($1.1m)
100
115
130
Inventory FY18Core Product
Availability
Increased
Demand
Cost price
increases
Slow/aged
Stock Reduction
Exit S&T PlasticsInventory 1H19
$M
INVENTORY BRIDGE FROM FY18 TO 1H19

CAPITAL STRUCTURE
Annual Capital Structure Performance
Cents per
share
InterimTotal
ActualAdj(1)ActualAdj(1)
FY1594.91910.4
FY1694.922.512.3(2)
FY1794.9168.7
FY1873.873.8
FY193.53.5--
CapitalMetricsTarget1H18FY181H19
Net Debt: Net
Debt + Equity
< 30% -35%31.0%37.7%5.9%
Net Debt:
EBITDA(3)
< 2.0 times3.14.70.7
17
Dividend Policy
Dividend payoutratio target of between 60% and
80% of ‘normalised’ Net Earnings (NPAT) adjusted
for any material non-trading items and subject to
relevant factors at the time including working
capital and opportunities for growth
1)Adjusted for the impact of the capital raise completed in September 2018. S&T issued 75.4m new
shares, increasing the total shares on issue from 90.6m to 166.0m
2)FY16 dividend reflects gain on sale of Bowden Road
3)FY18 Normalised EBITDA is adjusted for a full year’s impact of the additional operating leases in
relation to the sale of Stonedon Drive and Blenheim Road
1H19 Interim dividend of 3.5 cents per share to
be paid on 29 March 2019

DIVISIONAL
REVIEW
Distribution
Infrastructure
18

OUR BUSINESS: DIVISIONS
DISTRIBUTION
Products are sourced from preferred steel mills and distributed through
Steel & Tube’s national network of branches
INFRASTRUCTURE
Products are processed before sale and typically on a contract or project basis,
including onsite installation services
STEEL
STAINLESS STEEL
PIPING SYSTEMS
CHAIN & RIGGING
RURAL PRODUCTS
FASTENINGS
CFDL
ROOFING
COIL PROCESSING
PURLINS
COMFLOR®
Composite Floor Decks Ltd.
REINFORCING
Roll
-
forming
REO / CFDL
19

DIVISIONAL PERFORMANCE
0
100
200
300
1H182H181H19
$M
REVENUE
DistributionInfrastructure
-15
-5
5
15
1H181H18N2H182H18N1H19
$M
EBIT
DistributionInfrastructure
1H19 REVENUE
1H19 EBIT
20
The Infrastructure segment excludes S&T Plastics. The Group has reclassified the S&T Plastics business to the Other/Elimination
column in the operating segment note to the 1H19 Interim Financial Statements
Both divisions experienced
strong sales growth
compared to 2H18
Distribution turnaround
due to product availability,
service focus, and reduced
operating costs
Infrastructure residential
roofing recovering, growth
in commercial roofing and
strong demand in
reinforcing, combined with
cost reductions

DISTRIBUTION
Key areas of focus:
•Safety, quality and traceability
•Site consolidations and
operating efficiencies
•Ongoing integration into a
cohesive business offering high
quality carbon, stainless steel
and fastening products
•Service standards and product
availability exceeding customer
expectations
21

INFRASTRUCTURE
Key areas of focus:
•Safety, quality and traceability
•Sales growth momentum
continues
•Deliver further manufacturing
efficiencies
•Rationalise footprint to
consolidate capabilities in key
markets
22

Global Steel Market Annual Trend
Global crude steel production increased over the
last year
China’s increased outputover the year which was
mainly consumed domestically
East Asian steel prices have begun to decline in
the second half, although currency movements
has held prices up
Year to Date:
Demand for steel continues to grow in line with
global growth forecasts
Steel prices have softened although remain firm
in New Zealand dollars
OPERATING ENVIRONMENT
1)Source: World Steel Association, December2018
2)Source: S&P Global Platts, January 2019 withUSD/NZD conversion
23
1,000
2,000
20142015201620172018
Tonnes
(Million)
GLOBAL CRUDE STEEL ANNUAL
PRODUCTION (1)
ChinaRest of World
-
400
800
1,200
Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19
$/Tonne
EAST ASIAN STEEL NZD PRICES (2)
BeamRebarHRC

OUTLOOK
24

1H19 performance in line
with expectations
Improving business
performance with
momentum building
Project Strive benefits and
actions to grow gross margin
provide the key uplifts in
2H19
FULL YEAR (FY19) GUIDANCE
No change in guidance; Forecast FY19 earnings before interest and tax of $25m
25
EBIT is Earnings Before Interest and Tax (EBIT). FY19 Normalised EBIT excludes S&T Plastics
$9.8m
$9.7m
$25m
($0.1m)
+$9.7m
+$5.6m
0
15
30
1H19 EBIT
Reported
S&T Plastics1H19 NormalisedUnderlying 1H19
Trading
Growth above
base
FY19 Forecast
$M
EBIT BRIDGE FROM 1H19 TO FY19

A STRONGER FUTURE
Steady economic growth trends across majority of sectors
in which S&T operates –construction, manufacturing and
rural
Sales momentum on the strong foundation now in place
Pleasing progress being seen with early benefits from
Project Strive initiatives and improving sales results
On track to achieve FY19 guidance of $25 million in earnings
before interest and tax
Financial flexibility to undertake business transformation
initiatives and achieve our goals
Strong New Zealand company, adding value to NZ economy
Medium term outlook consistent with previous
expectations
2626

DISCUSSION
27

NON-GAAP FINANCIAL INFORMATION
The Group uses several non-GAAP measures when discussing financial performance. These include NormalisedEBIT and Working Capital.
Management believes that these measures provide useful information on the underlying performance of the Group. They may be used
internally to evaluate performance, analysetrends and allocate resources. Non-GAAP financial measures should not be viewed in isolation nor
considered as a substitute for measures reported in accordance with NZ IFRS.
The Group’s unaudited reconciliation of non-GAAP measures to GAAP measures are detailed below.
2
8
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Half Year ending 31 December 2018 ($ M)1H182H181H19
GAAP: Earnings/(Loss) before Interest and Tax (EBIT)7.5(43.6)9.8
Add back Normalisation Adjustments:
Inventory impairment and write offs5.018.2-
Impairment of intangible assets-12.1-
Business rationalisation-2.7-
Organisational restructuring2.60.7-
Gain on property sale(0.4)(1.1)-
Other unusual items-3.1-
Excluding S&T Plastics EBIT*(1.2)12.4(0.1)
Normalised EBIT – non-GAAP13.44.59.7
* S&T Plastics Normalisationadjustments in FY18 included: 1H18 $(0.5)m inventory impairment, 2H18 $(11.2)m asset
impairment and business rationalisationcosts
28

GLOSSARY OF TERMS
EBIT: This means earnings before the deduction of interest and tax and is calculated as profit for the period before net interest costs and
tax.
Normalisation adjustments include:
oFY18 Business rationalisation: Included business change costs incurred to rationalise Steel & Tube’s property footprint including
onerous leases, rationalisation and re-organisation of manufacturing operations and delivery logistics operations, and costs incurred
in reviewing and streamlining operations.
oFY18 Organisational restructuring: Included the costs incurred to improve capabilities, remove duplication and inefficiencies and
capture synergies from acquisitions.
oFY18 Unusual Items: Primarily these were business rationalisation and organisational restructuring costs. Other unusual costs include
significant doubtful debt and contract disputes provisions, and settlement of acquisition earn out payments.
oFY18 and 1H19 S&T Plastics: S&T announced it was exiting its Plastics business in May 2018 and wrote-down the value of assets.
The financial results of this business have been excluded from FY18 to enable a like for like comparison with 1H19, which hasalso
excluded a small gain realisedfrom disposal of assets to date.
Normalised EBIT: This means EBIT after Normalisationadjustments. A reconciliation of 1H18 and 1H19 NormalisedEBIT can be found in
the notes to the Interim Financial Statements and on Slide 28
2
9
29

This presentation has been prepared by Steel & Tube Holdings Limited (“STU”).The information in this presentation is of a general nature only. It is not a
complete description of STU.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for such offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not take into account
any particular prospective investor’s objectives, financial situation, circumstances or needs, and does not purport to contain all the information that a prospective
investor may require. Any person who is considering an investment in STU securities should obtain independent professional advice prior to making an
investment decision, and should make any investment decision having regard to that person’s own objectives, financial situation,circumstances and needs.
Past performance information contained in this presentation should not be relied upon and is not an indication of future performance.This presentation may also
contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy of STU. Information about
the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this presentation is a promise or representation as to the future or a
promise or representation that a transaction or outcome referred to in this presentation will proceed or occur on the basis described in this presentation.
Statements or assumptions in this presentation as to future matters may prove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitutefor, the information provided in
STU’s financial statements available at www.steelandtube.co.nz.
STU and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature (including as to
accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any errors in or omissions from, or for any loss
(whether foreseeable or not) arising in connection with the use of or reliance on information in this presentation.
DISCLAIMER
30