Steel & Tube Shareholder Newsletter

A WORD FROM THE CHAIR AND CEO
Dear Shareholder
We are now at the end of our 2019 financial
year and are making progress rebuilding
the company. Last year, we set ourselves
some ambitious goals, and while we haven’t
met our earnings expectation, we have
significantly improved the business versus
prior year.
Despite an increasingly challenging
marketplace, we have made market share
gains and increased sales and volumes this
year. We are seeing benefits from numerous
initiatives under our Strive strategy thanks
to the hard work of everyone in the Steel &
Tube team. Business units that are operating
in highly competitive market conditions are
the subject of intensive management focus
to lift margins and manage risk.
We are generating cost savings from more
efficient warehousing, freight, logistics and
restructuring and expect operating costs to
be down compared to the prior year, despite
increases in rent following the sale and lease
back of two sites and inflation pressures.
We have invested in people capability at
all levels in the business and are focused
on continually improving our product
availability and service, and customer loyalty
is building. Our distribution business offers
a wide range of high quality products and
services to customers; the strength of our
metal flooring business continues; and
improvements in our reinforcing offer
have resulted in repeat business.
We want Steel & Tube to be the supply
chain partner of choice for our customers
and we will do this by offering the best
customer service, range of products,
technical expertise and quality and safety
in the industry. These are the goals that
every team member, from factory floor
to warehousing, sales, dispatch, support
office and management, is being
encouraged to work towards.
FY19 Trading Update and Guidance
We recently updated the market on our
financial performance and our expected
guidance for the current FY19 year
(click here to read). Market conditions have
been more challenging than expected
Shareholder Update
STORIES OF STRENGTH
JUNE 2019
FY19 Results Announcement:
23 August 2019
Annual Meeting:
25 September 2019
Financial Year End:
30 June 2019
UPCOMING KEY DATES
Susan Paterson, Chair

in the second half of the year and we have
experienced an industry contraction in
some market segments and sustained price
pressures, both of which have adversely
impacted on profit margins.
The changing market conditions and
competitive pressure have created a more
challenging trading environment for our
business which means we have not been able
to capture the margin growth we anticipated
in the last half of the financial year. An industry
contraction of some higher value markets has
changed the mix of products we are selling
and impacted on our margins. Intensive
competition has also been a factor and we are
mindful of the risk of a 'race to the bottom'
with unsustainable pricing behaviour. We have
taken a prudent approach to tendering for
jobs and look to win them by offering a better
solution or service. For example, we are seeing
a growing number of customers choose us
because of the long term benefits from our
focus and investment in safety, quality systems,
technical expertise, production capability and
delivery performance.
In addition, and armed with better information,
we have made an adjustment to our prior year
normalised earnings. This does not affect
our reported financial results for FY18 but
had we known about it, would have lowered
our starting point for our FY19 forecast
expectations by $4m.
As announced, the combination of the trading
conditions and the accounting adjustment
means that we are now expecting EBIT between
$15.5m and $17.5m for FY19 (previously $25m).
While we are disappointed the efforts to date
have not led to a better financial result, this
still represents an improvement over the revised
normalised prior year EBIT of between 20%
and 35%.
We recognise that our performance is below
the expectations of shareholders and we are
determined to build on the changes made to
date to turn the company around and return
core business performance to acceptable
levels. Market conditions are cyclical and the
long term outlook for the industry looks good
– steel is a preferred product and for many
jobs, the only product.
We are very clear in our focus on those
areas that will deliver the best products and
service to customers and the best returns to
shareholders. This newsletter highlights stories
from across our business, demonstrating the
work we are doing and the progress we are
making to deliver the turn-around in financial
performance.
Susan Paterson, Chair
Mark Malpass, Chief Executive Officer
ISO 9001: 2015
CERTIFICATION FOR
COMFLOR AND
STAINLESS TEAMS
As part of Steel & Tube’s ISO
9001: 2015 certification, the
business is subjected to annual
external revalidation audits
annually. This year, 13 sites are in
the process of being audited.
For the first time, ComFlor and Stainless
were added to the audit schedule. Both
sites were audited by Telarc and were
successful at achieving the ISO 9001: 2015
certification. This is a major milestone
that has wider benefits for the business
and is testament to the hard work by
management and site staff, supported
by the Quality, Health, Safety and
Environment team.
We are seeing benefits
from numerous initiatives
under our Strive strategy
and thanks to the hard
work of everyone in the
Steel & Tube team.
Mark Malpass, CEO

BUILDING A STRONGER, BETTER NETWORK
Steel & Tube is continuing to optimise its national network, generating operational
and supply chain efficiencies and improving customer service.
›
In late April 2019, S&T Stainless in
Christchurch moved into its new building
at 401 Blenheim road. This brings it
together with the wider Distribution
business and provides operational
efficiencies as well as enabling customer
access to all Steel & Tube’s Distribution
products on the one site.
›
In Auckland, a new Chain & Rigging service
centre has been opened on the S&T
Distribution site at Stonedon Drive, East
Tamaki. This offers a full range of products
and services such as in-house testing of
chains, slings, chain block, lever hoists and
height safety equipment. The centre can
also assemble chain slings for customers
and will, in the future, manufacture wire
ropes in-house.
›
Meanwhile, MSL Fortress opened on the
Stonedon Steel & Tube site in late May,
offering an extensive range of fasteners.
This gives MSL an important presence in
the East Auckland area and complements
the Stainless products already on site.
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.
The new Stainless hub at 401 Blenheim Rd, Christchurch
MSL FORTRESS TAKES OUT AWARD
FOR PREMIER SUPPLIER
For the second time in three years, MSL Fortress has won the Premier Supplier award at
the 2019 BuildLink Conference & Awards, as voted by the BuildLink members.
BuildLink is focused mainly on the rural sector and has over 60 independently owned and
operated stores nationwide, specialising in timber, hardware, kitset homes and farm sheds.
This award is a reflection of MSL Fortress’ focus on being a quality supply partner to its

customer base nationwide and is recognition for all staff and their hard work.
Marc Hainen - General Manager, Distribution and Mike Thompson - National Manager, MSL - Fortress Fasteners

PUTTING THE
CUSTOMER FIRST
One of our key strategic pillars is Putting the Customer
at the Heart of Our Business. This means providing
products and services that meet our customers’
needs, leveraging our technical expertise to offer
better solutions, and delivering on time and on spec.
In Distribution, we have a variety of initiatives
underway, focused on the customer.
Net Promoter Score (NPS): We have recently started
NPS surveys to help us better understand our customers’
needs. NPS scoring is a widely used metric that is based
on one simple question – “How likely is it that you would
recommend Steel & Tube to a friend or colleague?”
Initial results are promising and have identified further
improvements we can make to deliver the best possible
products and service.
Improving availability of our core range: We have
identified a core range of products and are ensuring that
these are available when and where our customers need
them. This is helping deliver more efficient inventory
control and reducing the costs of carrying low demand
stock items.
Number 8 Wire loyalty programme: Launched last
year, this has been welcomed by our trade customers and
is progressing well. Customers earn points when they
purchase from Steel & Tube and these can be redeemed
against future purchases.
Winning back customers can sometimes be more satisfying than gaining a new one. The S&T Stainless team
was recently successful in securing a large dairy project contract with a significant Hamilton customer.
Although the customer had previously moved away from Steel & Tube companies for their main supply,
the team worked closely together to give the customer the reassurance they needed to bring their
business back.
The S&T Stainless Business Development Manager
spent a lot of time communicating with the customer
around what Steel & Tube can offer with the 'one
company' approach and how this could benefit the
smooth execution of the project. She also brought in
S&T Stainless’ Operations Manager to meet the client
and demonstrate how our supply chain would work
to meet the client’s needs.
The focus was on demonstrating how our products
and service would help the customer get their job
done – and the customer rewarded Steel & Tube with
the order. The focus on how what we do will deliver
benefits for the customer was a real game changer
and was a large part of our success.
S&T STAINLESS WINS BACK BIG
The focus was on demonstrating
how our products and service
would help the customer
get their job done – and the
customer rewarded Steel
& Tube with the order.

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.
Steel & Tube was a supplier to the award-winning Freemans Bay School,
which is one of a number of schools designed by RTA Architects. Using
bold colours, including Colorsteel® roofing and Steel & Tube cladding,
the architects were able to achieve a striking design that references the
school’s proud multi-cultural heritage and complements the diversity of
the neighbourhood.
Architect Moshin Mussa from RTA comments: “It is always challenging on
education projects to create cutting edge architecture with limited budgets
and material restrictions. On this project we used the colour scheme to
represent the school’s identity, but also to enhance the architecture.
Colour is a relatively cost effective way to bring a project to life”.
CFDL has again enhanced its reputation for
service delivery, after being recognised by key
client, Naylor Love, as a “top rated contractor”
on the 44 Symonds Street Block B project.
Naylor Love is a top performing commercial
construction company. After completing a
project, the company carries out an assessment
of the subcontractors involved – in this case
28 of them. Subcontractors are assessed
on 11 categories, including quality, safety
practices and competence, and timeliness of
performance.
CFDL was one of three sub-contractors on the
project to achieve the best possible rating.
Happy Chifamba, CFDL Auckland Manager says:
“This project was particularly difficult because
it was an indoor job in its architectural phase.
This meant our team had to ensure they did
not damage the existing fit out or finishings, as
well as completing the job safely. We planned
the safety system really well and ensured good
coordination between the contractor and the
other trades. Although access was an issue,
through proper coordination between our
construction manager, materials coordinator
and Naylor Love’s team, it was a seamless
delivery and load out onto the steel structure.”
PROUD TO CONTRIBUTE TO AWARD
WINNING SCHOOL DESIGN
CFDL RATED TOP CONTRACTOR
BY NAYLOR LOVE
CFDL was one of three
sub-contractors on the
project to achieve the
best possible rating.

Steel & Tube is once again proud to be a supporter of the First Foundation and recently
recognised the latest recipients of Steel & Tube’s First Foundation scholarships - Kimberley
Jayapalen and Patrick Steele – both family members of Steel & Tube employees.
The Foundation brings together New Zealand
businesses, individuals, schools, and students
to achieve the Foundation’s mission of helping
academically talented students worthy of support
to achieve their potential through tertiary
education and to prepare them to positively
influence and benefit their communities.
So far 612 students have benefitted from
the scholarships and opportunities the
Foundation and its partners offer.
Steel & Tube CEO, Mark Malpass with First Foundation scholarship recipients Patrick Steele and Kimberley Jayapalen.
STEEL & TUBE CONTINUES ITS SUPPORT
FOR FIRST FOUNDATION
Having a great culture and strong employee engagement are
essential to the success of our business.
That’s why we’ve recently introduced three project teams focused on:
WELLNESS, RESPECT AND APPRECIATION
IMPROVING COMMUNICATIONS AND COLLABORATION
ENSURING OUR PEOPLE HAVE THE RIGHT TOOLS, TRAINING
AND SUPPORT TO DO THEIR JOBS.
These teams are made up of employees who are volunteering their
time to make Steel & Tube an even better place to work.
MAKING STEEL & TUBE AN EVEN
BETTER PLACE TO WORK
1
2
3
Kimberley and Patrick are two impressive young people who
want to challenge themselves and it’s great that we can play
a part in helping them towards their tertiary qualifications.
Steel & Tube General Manager People & Culture, Anna Morris.

INTRODUCING OUR TEAM
Steel & Tube’s leadership team has been rebuilt and strengthened, with a number of new roles and appointments. Anna Morris
and Claire Radley both joined the company in the last six months, as GM People & Culture and GM Strategy respectively.
ANNA MORRIS:
GM PEOPLE & CULTURE
As GM People & Culture, Anna’s role is to make
sure that S&T is staffed by talented people
who are motivated and supported to take the
company to the next level of performance.
On a day to day basis this involves everything
from recruitment, training, development,
payroll and establishing the right culture.
Anna started her career as an employment
lawyer, including working in-house for Unilever in
Australia. She then stepped into the construction
sector, working for Australia’s largest construction
company before moving to Fletcher Construction
as Group employment lawyer and then Head of
People and Performance.
Anna’s ambition is for S&T to challenge the norms
of what can be achieved in this industry. “I want the
market to talk about our character – to say we’ve
got talented people, we’re obsessed with customer
service, we’ve got the weight of a NZ listed
company but without the corporate bureaucracy,
and we set people up here to do great work in a
lean fast paced environment. This is my vision for
our culture.”
Some of the initiatives being rolled out in this area
are more training; more visibility of the Leadership
Team; more focus on culture and the type of
organisation we want to be; and supporting the
Step Up Engagement Working Team to strengthen
the onboarding programme.
Outside of work, Anna spends as much time with
her young family as possible. “They amuse me
enormously, keep me positive and constantly
remind me of my own development areas!”
CLAIRE RADLEY:
GM STRATEGY
With a PhD in Atmospheric Physics, strategy
of a steel company is probably not where
Claire saw herself working when she left
Princeton University. But after being recruited
by international management consultancy,
McKinsey & Co, Claire found her passion,
working across a range of industries on projects
in operational excellence, transformation,
acquisitions, and strategy.
Claire joined Steel & Tube in January 2019 and says
the culture at the company is amazing. “I’ve never
worked in an environment where people are so
open and eager to work together to improve the
business.”
The GM Strategy role is a new one for the
company. It puts Claire in charge of driving the
Strive programme and working with the Board and
Leadership team to determine strategic direction,
including identifying new growth opportunities.
Claire says her goal is to see Steel & Tube reach
its full potential. To her that means not only
delivering on Strive projects over the next 2 years,
but also significantly growing the company and
launching innovative products and new service
delivery methods to meet customer’s needs.
When she’s not at work, she loves to travel with
highlights from the past year including Cuba
and Slovenia.

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 associated
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.
35 LOCATIONS ACROSS NEW ZEALAND
>15,000 CUSTOMERS • ~1,000 STAFF
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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
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
STRIVING FOR EXCELLENCE
OUR GOAL
TO BE THE LEADER IN BUYING, SELLING, PROCESSING AND PLACING STEEL PRODUCTS IN NEW ZEALAND
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