Interim Results to 31 December 2019

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019



Results for announcement to the market
Name of issuer Steel & Tube Holdings Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$231,965 (9.8%)
Total Revenue $231,965 (10.2%)
Net profit/(loss) from continuing
operations
($36,965) (776.8%)
Total net profit/(loss) ($36,965) (759.9%)

Interim Dividend
Amount per Quoted Equity
Security
$0.01500000
Supplementary dividend per
Quoted Equity Security
$0.00264706
Imputed amount per Quoted
Equity Security
$0.00583333
Record Date 13 March 2020
Dividend Payment Date 27 March 2020
Current period Prior comparable period
(30 June 2019)
Net tangible assets per Quoted
Equity Security
$1.11 $1.19
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Non-GAAP financial information
Steel & Tube uses several non-GAAP measures when
discussing financial performance. This includes normalised
EBIT. Management believes that these measures provide
useful information on the underlying performance of Steel &
Tube’s business. 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. Reconciliations of non-GAAP
measures to GAAP measures are detailed within this
announcement.
Steel & Tube reports it’s normalised EBIT as $5.7m for
HY2020 including the impact of NZ IFRS 16. Excluding

NZIFRS 16 normalised EBIT is reported as $3.1m. This is
directly comparable to the earnings guidance issued on 31
January 2020, which forecast normalised EBIT of $2m to
$3m excluding the impact of NZ IFRS 16. Further details on
the unusual transactions/non-trading adjustments are
included in the investor presentation for the six months ended
31 December 2019.
Definitions:
 EBIT: This means earnings before interest and tax and is
calculated as profit for the period before net finance 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.
Authority for this announcement
Name of person

authorised to
make this announcement
Mark Malpass
Contact person for this
announcement
Mark Malpass
Contact phone number +64 27 777 0327
Contact email address mark.malpass@steelandtube.co.nz
Date of release through MAP

24 February 2020

Unaudited financial statements accompany this announcement.

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Template
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Steel & Tube Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code STU
ISIN (If unknown, check on NZX
website)
NZSUTE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 13 March 2020
Ex-Date (one business day before the
Record Date)
12 March 2020
Payment date (and allotment date for
DRP)
27 March 2020
Total monies associated with the
distribution
1

$2,489,588
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.02083333
Gross taxable amount
3
$0.02083333
Total cash distribution
4
$0.01500000
Excluded amount (applicable to listed
PIEs)
NIL
Supplementary distribution amount $0.00264706
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.00583333
Resident Withholding Tax per
financial product
$0.00104167
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Greg Smith
Contact person for this
announcement
Greg Smith
Contact phone number (04) 570-5000
Contact email address Greg.Smith@steelandtube.co.nz
Date of release through MAP

24 February 2020





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

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Half Year Report 2020

1
STEEL & TUBE HALF YEAR REPORT 2018
INTERIM
FINANCIAL
STATEMENTS
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2019
Contents
01 Interim Financial Statements
07 Notes to the Interim Financial Statements
17 Independent Review Report
STEEL & TUBE HALF YEAR REPORT 2020
These interim financial statements do not include all the
notes and information normally included in the annual
financial statements. Accordingly, they should be read in
conjunction with the annual financial statements for the
year ended 30 June 2019.
1

2

3
STEEL & TUBE HALF YEAR REPORT 2020
The accompanying notes form part of these financial statements.
Statement Of Profit Or Loss And Other Comprehensive Income
FOR THE PERIOD ENDED 31 DECEMBER 2019
Unaudited
December
2019
Unaudited
December
2018
Notes$000$000
Sales revenue231,965258,234
Other operating income269 799
Cost of sales(180,361)(200,719)
Operating expenses(48,394)(48,889)
Operating earnings before impairment, other gains and financing
costs
3,4799,425
Impairment of intangibles4(37,071)-
Other gains222 394
(Loss) / earnings before interest and tax(33,370)9,819
Interest income23 72
Interest expense(3,537)(2,036)
(Loss) / profit before tax(36,884)7,855
Tax expense (81)(2,254)
(Loss) / profit for the period attributable to owners of the Company(36,965) 5,601
Items that may subsequently be reclassified to profit or loss
Other comprehensive (loss) / income - hedging reserve(518)(753)
Items that may not subsequently be reclassified to profit or loss
Other comprehensive loss - revaluation reserve(1,622)-
Other comprehensive income - deferred tax on revaluation reserve454-
Total comprehensive (loss) / income(38,651)4,848
Basic earnings per share (cents)(22.3)4.0
Diluted earnings per share (cents)(22.3)4.0

4
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
Statement Of Changes In Equity
FOR THE PERIOD ENDED 31 DECEMBER 2019
Share
capital
Retained
earnings
Hedging
reserve
Revaluation
Reserve
Treasury
shares
Share-
based
payments
Reserve
Total
equity
Notes$000$000$000$000$000$000$000
Balance at 1 July 2019
156,66994,142(102) 5,832(2,896)256 253,901
Impact of adoption of new
accounting standard (net of tax)
8
- (9,762)- - - - (9,762)
Restated total equity at the
beginning of the financial year
156,66984,380(102) 5,832 (2,896)256 244,139
Comprehensive income
Loss after tax
- (36,965) - - - - (36,965)
Other comprehensive income
Hedging reserve (net of tax)
- - (518)- - - (518)
Asset revaluation (gross)
7---(1,622)--(1,622)
Deferred tax on asset revaluation
---454--454
Total comprehensive income
- (36,965)(518)(1,168) - - (38,651)
Transactions with owners
Dividends paid
-(2,518)----(2,518)
Employee share schemes
- 66 - - - 48 114
Unaudited balance at
31 December 2019
156,66944,963(620) 4,664(2,896)304 203,084
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)

-(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)
78,866 - - - - - 78,866
Employee share schemes
- - - - - 70 70
Unaudited balance at
31 December 2018
156,711 95,002 190 6,509 (2,896)263 255,779

5
STEEL & TUBE HALF YEAR REPORT 2020
The accompanying notes form part of these financial statements.
UnauditedAudited
December 2019June 2019
Notes
$000$000
Current assets
Cash and cash equivalents13,0659,010
Trade and other receivables74,05490,734
Inventories120,038113,962
Income tax receivable11
Derivative assets
54120
207,212213,827
Non-current assets
Property, plant and equipment51,27752,034
Right-of-use assets898,780-
Intangibles419,53656,922
Deferred tax assets
7,7513,380
177,344112,336
Total assets
384,556326,163
Current liabilities
Trade and other payables36,72441,079
Provisions3,6484,221
Short term lease liabilities812,617-
Derivative liabilities
917263
53,90645,563
Non-current liabilities
Trade and other payables-1,835
Long term lease liabilities8102,841-
Borrowings324,00024,000
Provisions 6
725864
127,56626,699
Equity
Share capital156,669156,669
Retained earnings44,96394,142
Other reserves
1,4523,090
203,084253,901
Total equity and liabilities
384,556326,163
These financial statements and the accompanying notes were authorised by the Board on 21 February 2020.
For the Board


Balance Sheet
AS AT 31 DECEMBER 2019
Susan Paterson
Chair
Anne Urlwin
Director

6
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
Statement Of Cash Flows
FOR THE PERIOD ENDED 31 DECEMBER 2019
Unaudited
December
2019
Unaudited
December
2018
Notes$000$000
Cash flows from operating activities
Customer receipts
244,616274,579
Interest receipts
23 72
Payments to suppliers and employees
(224,211)(266,728)
Income tax refunds / (payments)
-5,603
Interest payments on debt
(509)(2,436)
Interest payments on leases
8(2,868)-
Net cash inflow from operating activities
17,05111,090
Cash flows from investing activities
Property, plant and equipment disposal net proceeds
641,275
Property, plant and equipment and intangible asset purchases
(3,945)(2,886)
Net cash outflow from investing activities
(3,881)(1,611)
Cash flows from financing activities
Issue of share capital (net of issue costs)
-78,866
Repayment of borrowings
-(85,935)
Dividends paid
(2,518)-
Payments for leases
8(6,597)-
Net cash outflow from financing activities
(9,115)(7,069)
Net increase / (decrease) in cash and cash equivalents
4,0552,410
Cash and cash equivalents at beginning of the period
9,0105,584
Cash and cash equivalents at end of the period
13,0657,994
Represented by:
Cash and cash equivalents
13,0657,994

7
STEEL & TUBE HALF YEAR REPORT 2020
Notes To The Interim Financial Statements
FOR THE PERIOD ENDED 31 DECEMBER 2019
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
21 February 2020.
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, IAS 34: Interim Financial Reporting, and the NZX
Main Board Listing Rules (issued 1 January 2019).
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 2019.
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 2019, with the exception of the
adoption of NZ IFRS 16 Leases (NZ IFRS 16).
The preparation of the interim financial statements requires the exercise of judgements that affect
the application of accounting policies, the reported amounts of assets and liabilities, and income and
expenses. The Group has been consistent in applying the judgements, estimates and assumptions
adopted in the audited financial statements of the Group for the year ended 30 June 2019, except for
the Assessment of Impairment of Goodwill as outlined in Note 4, and also as amended by the adoption
of NZ IFRS 16 as outlined in Note 8.
The changes to the Group’s accounting policies resulting from the adoption of NZ IFRS 16 are outlined in
Note 8.

8
2. OPERATING SEGMENTS
The Group has identified two reporting segments as at 31 December 2019 having regard for the criteria
outlined in NZ IFRS 8 Operating Segments (NZ IFRS 8). The Group’s Chief Operating Decision Maker (being
the CEO) receives financial reports which aggregate the activities of the Group’s six operating segments
into two distinct divisions, being Distribution and Infrastructure.
These reportable segments have been determined by having regard to the nature of products, services
and processes the various business units undertake to service customers. The Group has a diverse range
of customers from various industries, with no single customer contributing more than 10% of the Group’s
revenue.
The Group derives its revenue from the distribution and processing of steel and associated products.
Within the Distribution business, the primary focus is on the distribution of steel products and fasteners,
servicing similar customer groups, sharing similar business models and trading skills, and using similar sales
channels. The majority of product is traded and sales staff are tasked to know the full range of products.
Within the Infrastructure business, product is predominately steel product which is bought and processed/
manufactured in warehouse facilities for project/contract customers.
The CEO uses EBIT as a measure to assess the performance of segments. The segment information
provided to the CEO for the period ended 31 December 2019 is as follows:
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
December 2019$000$000$000 $000
Timing of revenue recognition
At a point in time135,40552,6169188,030
Over time
-43,935-43,935
Total revenue from external customers
135,40596,5519231,965
Depreciation and amortisation(952)(1,133)(1,468)(3,553)
Impairment of intangibles (15,602)(21,469)- (37,071)
Segment EBIT (14,230)(19,140)- (33,370)
Interest (net) (3,514)
Reconciled to Group Loss Before Tax (36,884)

9
STEEL & TUBE HALF YEAR REPORT 2020
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 2,327 7,347 145 9,819
Interest (net)(1,964)
Reconciled to Group Profit Before Tax7,855
Depreciation and amortisation is shown on a pre-NZ IFRS 16 basis, which is in line with the financial
reports received by the CEO.
Interest income and expenses are not allocated to segments, as decisions are made on a pre-NZ IFRS 16
basis and other interest income and expense related activities are driven by the central treasury function,
which manages the cash position of the Group.
Assets and liabilities are provided to the CEO on a Group basis, and are not separately reported with
respect to the individual operating segments.
Sales between segments are eliminated on consolidation. The amounts provided to the CEO with
respect to segment revenue are measured in a manner consistent with that of the financial statements.
3. BORROWINGS
The Group has syndicated committed bank borrowing facilities of $70m, comprising a $25m Working
Capital facility with a maturity date of 31 October 2020 (31 December 2018 and 31 December 2019: $nil
drawn), and a $45m Revolving Facility with a maturity date of 30 November 2021 (31 December 2018 and
31 December 2019: $24m drawn). The Working Capital facility is expected to be renewed on an annual
basis, with the most recent renewal completed on 1 November 2019.
4. IMPAIRMENT TESTING AND INTANGIBLES
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 2019 the Group identified an indicator of impairment and as part of preparing these interim
financial statements, undertook an internal valuation to compare the current carrying value of the
Group’s assets including Goodwill against their recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs of disposal (“FVLCD”) and value-
in-use (“VIU”). For the purpose of assessing impairment, assets are grouped in the smallest identifiable
group of assets that generates cash inflows that are largely independent of the cash inflows from other
assets or groups of assets (“cash generating unit” or “CGU”).
The Group has considered the VIU and FVLCD for each cash generating unit (CGU). A value-in-use (VIU)
calculation is a valuation based on forecast cash flows. These cash flows are discounted back to present
value to estimate a value for the CGU. The Group has first considered the recoverable amount of each

10
CGU, using the higher of its FVLCD and VIU. If the recoverable amount exceeds the carrying value of the
assets within the CGU no impairment is recognised. An impairment loss is recognised for any excess of the
carrying value of an asset or cash-generating unit over its recoverable amount and is charged to profit or
loss. In addition to the assessments performed at the CGU level, the Group has also considered the VIU and
FVLCD for the Group as a whole as there is an identified indicator of impairment at the Group .
A number of judgements have been made in respect to the assumptions used in the valuations. The key
assumptions are summarised below:
UnauditedAudited
December 2019June 2019
Assumption
Discount Rate (post tax)*
7.8%-9.6%7.9%-9.6%
Discount Rate (pre tax)
10.1%-13.4%11.0%-13.4%
Terminal Growth Rate
2.00%1.50%
Forecast Period
5 Years5 Years
Forecast Period Cash Flow Growth Rate
1.9%-2.3%2.6%-2.9%
*The Group engaged an independent expert to assess the Group’s post-tax weighted average cost of capital. A premium of 2%-4% applied to
smaller CGUs. These post-tax discount rates were applied to post-tax cash flows. Through back solving the pre-tax WACC was calculated.
A range of forecast cash flow scenarios were considered by Management for the VIU calculations,
first at the CGU level and then subsequently on a Group wide basis, utilising the latest Group forecast.
In addition to the above forecast period cash flow growth rate, the Group has included cash flows from
ongoing network consolidation and other performance improvement projects, and has allocated these
to the individual CGUs where applicable. The Group is committed to these projects and has already
commenced implementation as at 31 December 2019. However the forecast cash flows exclude certain
other expected benefits from projects not deemed to be sufficiently progressed as at 31 December 2019.
Management has considered the most likely outcome within the range of scenarios prepared for the VIU
calculations at the CGU level when assessing whether any impairment exists at the CGU level. The Group
has also considered whether the fair value less costs of disposal of the non-Goodwill assets in CGUs without
Goodwill would be greater than their carrying value. The majority of the remaining assets at 31 December
2019 relate to Trade Receivables, Inventories and Property, Plant and Equipment and the carrying value
of these assets was specifically assessed for impairment at 31 December 2019. The remaining assets are
considered to be readily marketable assets for which the recoverable amount was unlikely to be materially
different from the carrying value.
The Group has also considered the recoverable amount at the Group level based on the higher of its
calculated VIU and FVLCD. In the six month period ended 31 December 2019 the Group has experienced
adverse trading conditions, including reduced vertical construction work and a contraction in the
stainless steel market. Whilst the Board does not consider these adverse trading conditions to be
indicative of the medium to long term trading expectations, the reduced profitability in the six months
ended 31 December 2019 has had an impact on the assessment of the most likely outcome within the
range of VIU scenarios prepared and the Group’s calculation of FVLCD.

11
STEEL & TUBE HALF YEAR REPORT 2020
After assessing a range of scenarios, the Board has concluded that the recoverable amount is lower than
its carrying value and the carrying value of Goodwill is impaired as at 31 December 2019. The Goodwill
impairment allocated to each CGU is as follows:
Manufacturing
Suppliers
Limited
Hurricane
Wire
Products
Roofing
Products
Composite
Floor Decks
LimitedTotal
$000$000$000$000 $000
Carrying Value of Goodwill
at 30 June 2019
15,6025,7104,04611,71337,071
Impairment recognised in
Profit & Loss
(15,602)(5,710)(4,046)(11,713)(37,071)
Carrying Value of Goodwill
at 31 December 2019
-----
This has resulted in a Goodwill impairment charge of $37.1m being recognised in the Impairment
of intangibles line in the Statement of Profit and Loss and Other Comprehensive Income as at
31 December 2019.
In respect of the Group’s right-of-use assets, the cash flows generated on a Group wide basis from its
nationwide property footprint, in addition to the ability of the Group to recover value via sub-lease
arrangements, supports the carrying value of these assets at 31 December 2019.
The following summarises the effect of a change in the key assumptions for the Group with all other
assumptions remaining constant:
– A 0.5% reduction in the terminal growth rate would decrease the recoverable amount by $11.5m;
– Incorporating a 5% reduction in the expected level of terminal free cash flows in the forecast cash
flows would result in a reduction in the recoverable amount by $7.8m;
– Increasing the discount rate (pre-tax) by 50bps would decrease the recoverable amount by $14.6m.
5. 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 2019.
6. 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.
In October 2018 the Auckland District Court imposed a fine of $1.885m, which was subsequently increased
by the High Court to $2.009m in August 2019. Both Steel & Tube and the Commission have appealed the
decision. A date for the appeal has been set for the week beginning 24 February 2020.
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 2019.

12
7. SUBSEQUENT EVENTS
On 30 January 2020, the Group unconditionally agreed to sell the property at Braeburn Drive,
Christchurch, for approximately $5.8m net of expected sale costs, with settlement expected on
28 February 2020. The carrying value of the property and related assets as at 31 December 2019 was $5.8m.
On 21 February 2020 the Board declared a fully-imputed dividend of 1.5 cents per share ($2.49m) and
a supplementary dividend to non-resident shareholders of 0.26 cents per share. The dividends will be
paid to shareholders on 27 March 2020.
8. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
NZ IFRS 16 Leases - impact of adoption
NZ IFRS 16, ‘Leases’, replaces the current guidance in NZ IAS 17. Under NZ IAS 17, a lessee was required to
make a distinction between a finance lease (on Balance Sheet) and an operating lease (off Balance Sheet).
NZ IFRS 16 now requires a lessee to recognise a lease liability reflecting future lease payments and a ‘right-
of-use asset’ for all lease contracts (subject to the application of allowable practical exemptions), similar to
how finance leases are accounted for currently under NZ IAS 17.
The Statement of Profit or Loss and Other Comprehensive Income is also impacted by the recognition
of an interest expense and a depreciation expense, as well as the removal of the current operating lease
expense. The impact on net profit before tax of an individual lease over its term remains the same, however
the application of NZ IFRS 16 results in a higher total depreciation and interest expense in the early years of
a lease, and a lower expense in later years when compared with the current straight-line operating lease
expense.
The Group has applied NZ IFRS 16 from 1 July 2019. The Group has adopted the simplified transition
approach and has therefore not restated comparative amounts for the period prior to first adoption.
The Group’s Property leases were recognised in accordance with the ‘cumulative catch-up’ transition
method, with the cumulative effect of initially applying NZ IFRS 16 recognised at the date of initial
application. For all other leases the right-of-use asset was measured at an amount equal to the lease liability
on transition. The Group has undertaken a significant project to facilitate the adoption of NZ IFRS 16.
This has included the implementation of a lease management and accounting system to maintain all of
the Group’s lease data and to calculate the value of right-of-use assets, lease liabilities, depreciation
expenses and finance expenses based on this data.
The Group has significant lease obligations and therefore adoption of NZ IFRS 16 has had a material impact
on the Balance Sheet and Statement of Profit or Loss and Other Comprehensive Income. Adoption
has impacted the following line items in the Balance Sheet and Statement of Profit or Loss and Other
Comprehensive Income:

13
STEEL & TUBE HALF YEAR REPORT 2020
Balance Sheet
• Recognition of a right-of-use asset;
• Recognition of a lease liability;
• Recognition of a deferred tax asset; 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 Group has a number of categories of operating leases, including:
• Property leases - The Group has a variety of property leases across its national network of branches
and processing facilities. The majority of the impact from the adoption of NZ IFRS 16 is the result of these
property leases given their high value and comparative length of the leases (which under NZ IFRS 16
includes rights of renewal that are reasonably certain to be exercised). Where the Group has entered
into sub-leases in respect of its property leases, each sub-lease is assessed under the new standard to
determine if it qualifies as a finance lease or an operating lease under NZ IFRS 16;
• Motor vehicle leases - The Group leases motor vehicles for staff use in sales and day-to-day operations;
• Equipment leases - The Group leases certain equipment for use in its distribution, manufacturing and
warehousing activities. This includes material handling equipment such as forklifts and pallet trucks; and
• Other leases - Other leases includes the lease of assets such as IT equipment, photocopiers and other
plant or office equipment.
The Group has utilised the recognition practical expedients specified in NZ IFRS 16 in respect of short-term
and low value leases where appropriate, as well as the use of a single discount rate to a portfolio of leases
with reasonably similar characteristics and also relying on the Group’s assessment of whether leases are
onerous applying IAS 37 immediately before the date of initial application. The amount of the asset and
liability that the Group has recognised upon adoption of NZ IFRS 16 has been determined by the lease
commitments at the time of adoption, subject to the application of these practical exemptions.
Key Judgements and Assumptions
On adoption of NZ IFRS 16 there are a number of key judgements required. These include:
– Assessing whether a contract conveys the right to control the use of an identified asset;
– Determining the lease term, including when any rights of renewal or termination are reasonably certain
to be exercised;
– The calculation of minimum contractual lease payments; and
– The calculation of the discount rate applicable to each lease.
The assessment of the lease term is reviewed if a significant event or a significant change in circumstances
occurs which affects this assessment and that is within the control of the Group.

14
Right-of-use assets
To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses
whether:
– the contract involves the use of an identified asset;
– whether the Group has the right to obtain substantially all of the economic benefits from use of the asset
over the contract term;
– whether the Group has the right to direct the use of the asset.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any direct costs incurred or lease payments made at or before the commencement date, less
any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term. In addition, the right-of-use asset is periodically assessed for impairment
losses and adjusted for certain re-measurements of the lease liability.
Lease liabilities
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental
borrowing rate as the discount rate, with adjustments for the term of the lease.
Lease payments included in the measurement of the lease liability comprise:
– Fixed payments;
– Variable lease payments that depend on an index or rate measured using the index or rate as at the
commencement date;
– Lease payments in an optional renewal period if the Group is reasonably certain to exercise the renewal
option.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a rent review or the change in an index or rate, or if
the Group changes its assessment of whether it will exercise a purchase or extension option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.

15
STEEL & TUBE HALF YEAR REPORT 2020
Financial Impact on Adoption of NZ IFRS 16
On transition as at 1 July 2019, the impact on the Balance Sheet is:
– an increase in total assets of $109m;
– an increase in total liabilities of $119m; and
– a decrease in retained earnings of $10m.
The weighted average discount rate applied to the lease liabilities on 1 July 2019 was 4.93%.
Additionally, the impact on the Statement of Profit or Loss and Other Comprehensive Income for the
period ended 31 December 2019 is:
– a decrease in operating expenses of $2.65m, which represents a decrease in operating lease expenses of
$9.26m partially offset by an increase in depreciation on right-of-use assets of $6.61m; and
– an increase in lease interest expense of $2.87m.
This results in an increase in EBIT of $2.65m but a decrease in profit before tax of $0.22m. This is primarily
because of the size and long-term nature of the Group’s property leases, with depreciation and interest
expense being higher in the earlier years of these leases and therefore exceeding the current operating
lease expense for these leases.
The above has no net impact on the cash flows of the Group and the change is for financial reporting
purposes only. However, as illustrated in the Statement of Cash flows, the adoption of NZ IFRS 16 has
resulted in the reclassification of cash flows from lease arrangements.
Payments for operating leases under NZ IAS 17 were included within ‘Payments to suppliers and employees’
in operating cash flows. Payments for leases are now split between payments for interest, included in
operating cash flows, and payments which reduce the principal balance of a lease liability, which are
included in cash flows from financing activities.
The recognised right-of-use assets relate to the following types of assets:
31 December 20191 July 2019
$000$000
Properties94,699100,262
Motor Vehicles4,0814,694
Total right-of-use assets
98,780104,956
2019
$000
Operating lease commitments disclosed as at 30 June 2019
Discounted at the date of initial application
138,523
100,847
Add: Value of future lease options expected to be exercised at the date of initial
application
20,262
Lease liability recognised as at 1 July 2019
121,109

16
The impact of the adoption of NZ IFRS 16 on the Balance Sheet as at 1 July 2019 is set out below:
Reported
30 June 2019
Adoption of
NZ IFRS 16
Restated
1 July 2019
$000$000$000
Current assets
Cash and cash equivalents9,010-9,010
Trade and other receivables90,734-90,734
Inventories113,962-113,962
Income tax receivable1-1
Derivative assets
120-120

213,827-213,827
Non-current assets
Deferred tax assets3,3803,7967,176
Property, plant and equipment52,034-52,034
Right-of-use assets-104,956104,956
Intangibles
56,922-56,922
112,336108,752221,088
Total assets
326,163108,752434,915
Current liabilities
Trade and other payables41,079(179)40,900
Provisions4,221(274)3,947
Short term lease liabilities-13,01313,013
Derivative liabilities
263-263
45,56312,56058,123
Non-current liabilities
Trade and other payables1,835(1,835)-
Long term lease liabilities-108,096108,096
Borrowings24,000-24,000
Provisions
864(307)557
26,699105,954132,653
Equity
Share capital156,669-156,669
Retained earnings94,142(9,762)84,380
Other reserves
3,090-3,090
253,901(9,762)244,139
Total equity and liabilities
326,163108,752434,915

17
STEEL & TUBE HALF YEAR REPORT 2020


PricewaterhouseCoopers, PwC Centre, 10 Waterloo Quay, PO Box 243, Wellington 6140, New Zealand
T: +64 4 462 7000, 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 3 t o 16, which comprise the balance
sheet as at 31 December 2019, 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. Other than in our capacity as auditors and providers of other related
assurance services we have no relationship with, or interests in, the Group.
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 2019, and its financial performance and cash flows for the six month
period then ended, in accordance with IAS 34 and NZ IAS 34.

18
The accompanying notes form part of these financial statements.



PwC 2

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
21 February 2020

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

---

24 February 2020
STU / NZX ANNOUNCEMENT

STU 1H20 INTERIM RESULTS TO 31 DECEMBER 2019

For the six months to 31 December 2019, including NZ IFRS 16 adjustments, Steel & Tube has
reported a result in line with January 2020 guidance, with sales revenue of $232.0m, EBIT (including
non-trading adjustments) of $(33.4)m and a NPAT of $(37.0)m.

The result includes $39.1m in non-trading adjustments including $2m restructuring and relocation
costs and a non-cash goodwill impairment of $37.1m as previously advised. Excluding non-trading
adjustments, normalised EBIT was $5.7m.

As previously advised:
o
Adverse market conditions continued to impact on sales revenue and volumes, with EBIT
also impacted by $2m of Project Strive execution costs and $1.8m of doubtful debt
provisioning and write-offs.
o
Progress has been made in controllable areas, including operating cost reductions despite a
higher cost environment, margin management and working capital discipline.
o
Cash flow has remained robust despite the decrease in earnings, enabling a further
reduction in net debt.
o
Post balance date on 30 January 2020, Steel & Tube unconditionally agreed to sell a surplus
Christchurch property for approximately $5.8m.

An improved second half (cf 1H20) is expected with benefits from cost efficiencies and overhead
reductions, Project Strive initiatives and the commencement of significant new contracts.

The Board has declared a fully imputed interim dividend of 1.5 cents per share.

Further information is available in Steel & Tube’s 1H20 results presentation and Interim Financial
Statements released to the market on 24 February 2020.

$millions 1H19 Actual 1H20 Pre-NZ
IFRS 16
NZ IFRS 16
adjustments
1H20 Actual
Revenue
258.2

232.0

-

232.0

EBIT
9.8

(36.0)

2.6

(33.4)

Non-trading adjustments*
(0.1)

(39.1)

-

(39.1)

Normalised EBIT
(excluding non-trading
adjustments)

9.7

3.1

2.6

5.7

NPAT/NLAT
5.6

(36.8)

(0.2)

(37.0)

Dividend (cents per share)
3.5

1.5

-

1.5

Shareholder Equity
255.8

213.1

(10.0)

203.1

Net Debt
16.0

10.9

-

10.9

Net operating cash flow
11.1

10.5

6.6

17.1

*Non-trading adjustments are $2.0m of restructuring and relocation costs and $37.1m non-cash impairment of goodwill.
Steel & Tube Holdings Limited (NZX: STU) has today announced its results for the six months to 31
December 2019 (1H20). The result is in line with the guidance provided on 31 January 2020.
Including NZ IFRS 16 adjustments, the company has reported sales revenue of $232.0m, EBIT (including
non-trading adjustments) of $(33.4)m and a NPAT of $(37.0)m. The result includes $39.1m in non-trading
adjustments including $2m in Project Strive restructuring and relocation costs and a non-cash goodwill
impairment of $37.1m
i
, as previously advised. Excluding these non-trading adjustments, normalised EBIT
was $5.7m.
Steel & Tube adopted NZ IFRS 16 Leases with effect from 1 July 2019. The impact of this new accounting
standard was to increase reported EBIT by $2.6m and to reduce NPAT by $0.2m in 1H20
1
.

1
For more information on the impact of NZ IFRS 16, see Steel & Tube’s 1H20 Investor Presentation and 1H20 Interim
Financial Statements.

In line with Steel & Tube’s dividend policy, the Board has declared a fully imputed interim dividend of 1.5
cents per share.
As previously advised Steel & Tube has maintained market share and margins, however reduced vertical
construction work and contraction in the stainless steel market have impacted on sales revenue and
volumes in the first half, which were down 10% on the prior comparative period (1H20: $232.0m; 1H19:
$258.2m).
1H20 EBIT was primarily impacted by lower sales activity, $2m Project Strive execution costs and $1.8m
of doubtful debt provisions and write-offs (1H19: $1.0m write-back) mainly due to the unexpected
liquidation of a major customer.
The business operating model continues to be reviewed to ensure it is fit for purpose, with a focus on
ensuring it can fully meet customer needs, whilst reducing costs to serve. This work is ongoing, however,
actions taken in the first half of the financial year are expected to deliver a further reduction in operating
costs in the second half of the year.
Steel & Tube’s balance sheet remains strong, driven by better working capital management. The increase
in debt write-offs and provisioning related to a small number of customers. Stewardship of debt
collection has minimised credit exposures overall and improved underlying operating cash flow. Capital
spending has remained in line with depreciation and amortisation and has been largely focussed on Steel
& Tube’s digital ambitions, growth and safety initiatives.
Operating cash flow was robust at $10.5m (excluding the impact of NZ IFRS 16) (1H19: $11.1m), and
helped achieve a further reduction in net debt during the period to $10.9m as at 31 December 2019,
down from $15.0m as at 30 June 2019. On settlement, the proceeds from the sale of the Christchurch
property will be used to further reduce debt.
Project Strive business transformation initiatives, including ongoing investment into digital technologies,
continue to drive long term benefits for the company. Highlights in the first half include a further
reduction in the property footprint from 35 to 31 locations, additional cost efficiencies, the launch of the
first phase of digital initiatives and further development of Steel & Tube’s network strategy.
CEO of Steel & Tube, Mark Malpass, commented: “While the decline in industry activity is beyond Steel &
Tube’s control, we have focussed on improving underlying operating costs, margins and working capital.
Cash flow has remained robust and we reduced net debt.
“Our priority is on customer service and streamlining the business to deliver profitable growth. We are
seeing signs of improving business confidence including the recent Government announcement to
increase infrastructure investment, which should lead to increased market activity. An improved second
half performance is expected as we benefit from Project Strive and commencement of significant new
contracts.”
ENDS
For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz
Greg Smith
Steel & Tube CFO
Tel: +64 21 755 803
Email: greg.smith@steelandtube.co.nz

For media assistance, please contact: Jackie Ellis, tel: 64 27 246 2505 Email: jackie@ellisandco.co.nz

i
As previously advised on 31 January 2020, the Board has reviewed the carrying value of goodwill as required
by accounting standards, including consideration of the current difference between Steel & Tube’s market
capitalisation (based on market share price) and the carrying value of its assets. Whilst the Board does not
consider the adverse trading conditions experienced in 1H20 to be indicative of the medium to long term
trading expectations, the reduced profitability in 1H20 has had an impact on the assessment of impairment.
At this time and in accordance with accounting standards, the Board has concluded that the carrying value of
goodwill is impaired. The impairment is non-cash in nature.

---

1H20 Results
Presentation
For the six months ended
31 December 2019

1H20 RESULTS SNAPSHOT
2
1)Normalised EBIT excludes $39.1m in non-trading adjustments being $(2.0)m restructuring and relocation costs and a non-cash
goodwill impairment of $(37.1)m
2)Adoption of NZ IFRS 16 Leases increased EBIT by $2.6m and Operating Cashflow by $6.6m and reduced NPAT by $0.2m in 1H20
REVENUE
$232.0M
ROBUST OPERATING CASHFLOW
$17.1M
Pre-IFRS 16 $10.5M
2
EBIT $(33.4)M
NORMALISED EBIT $5.7M
1
Pre-IFRS 16 $3.1M
2
FURTHER REDUCTION IN NET DEBT
TO $10.9M
NPAT$(37.0)M
Pre-IFRS 16 $(36.8)M
2
INTERIM DIVIDEND
1.5 CENTS

1H20 OVERVIEW
3
•Challenging trading environment continuedwith 1H20 impacted by a decline in activity in the
vertical construction and stainless steel markets
•Result includes non-trading adjustments as announced on 31 January 2020: Non-cash
impairment of goodwill of $37.1m and Project Strive execution costs of $2.0m. 1H20 EBIT also
impacted by $1.8m of doubtful debts relating to a small number of customers
•Progress has been made in the areas we can control, including operating cost reductions,
margin management and working capital discipline. Cashflow has remained robust despite the
decrease in earnings, enabling a further reduction in net debt
•Overall margin maintained despite significant pricing pressure
•Expect better second half with market confidence improving and as benefits from Project
Strive initiatives, commencement of significant new contracts and other proactive measures
take effect.

STRATEGIC PILLARS
Safe and healthy work
environment
Quality processes
Quality products
Continual improvement
Focus on sustainability
Products and services
to meet customers’
needs
Leverage our technical
expertise
Delivery on time and
on spec
Leverage our procurement
and supply chain scale
Excellent inventory
management
Employ data analytics to
better service customers
Drive efficiencies
Develop leaders
Everyone matters
Recognise personal and
team contributions
Provide a rewarding
workplace
OUR GOAL IS TO BE THE LEADER IN BUYING, SELLING, PROCESSING AND PLACING STEEL PRODUCTS IN NZ
4

PROGRESS HIGHLIGHTS
Quality
•Lloyd’s Register independent steel mill audits ongoing
•Random sampling and independent testing underway
•Automation of test certificate process underway
•ESG framework and Key Performance Indicators under
development
Safety
•National review of site Standard Operating Procedures and
supporting Job Safety Analysis
•Life Saver Breach compliance and enforcement
•Safety awareness campaign ‘Stand in the Gap’ attended by
employees and contractors
•Critical Risks Panels established, led by Lead Team
5
CONTINUING
COMMITMENT TO
QUALITY, HEALTH
AND SAFETY
4.19
3.65
0
1
2
3
4
5
31-Dec-1831-Dec-19
Total Recordable Employee
Injury Frequency Rate

6
PROGRESS HIGHLIGHTS
•Successfully launched Chatbot ‘Stanley’, allowing customers
to query and receive answers about orders and shipments
•Launched “Group Product Guide” to drive awareness and
sales across our broad range of products
•Continuing to build on customer delivery performance and
satisfaction
•Currently conducting customer trials with a new range of
engagement technologies that will fundamentally improve
customer experience, buying and service through digital
technologies.
•Significant project wins for Reinforcing and CFDL/Comflor
businesses commencing in 2H
DELIVER ON
CUSTOMER
SERVICE PROMISE

7
PROGRESS HIGHLIGHTS
•Focussed on Distribution division turnaround:
-Improved product margins, procurement, direct labour
efficiency and freight
-Redefined branch product footprints ensuring right
inventory in the right locations
-Successful trial of barcode scanning technology,
leveraging the investment in the ERP IT system
•Continued property footprint reduction by exiting /
consolidating a further four operational sites in 1H20, whilst
maintaining regional presence (31 sites vs 48 in January 2018)
OPERATIONS AND
SUPPLY CHAIN
EXCELLENCE

PROGRESS HIGHLIGHTS
8
SUPPORTING A
WINNING TEAM
•Continued investment into training and development
-Launch of S&T Area Leadership programme –focus on sales,
commercial skills and leading digital change
-Offered Workplace Literacy programmes to staff, to support
those with English as a second language, and to provide more
advanced Business English skills for team leaders
•Partnership in Sector Workforce Engagement Programme, providing
training and employment opportunities for school leavers and
building New Zealand’s construction skills
•Creation of new incentive scheme for sales teams and customer
service employees
•Improved internal communication tools for all employees
•Productivity improving -headcount changed from 1,100 to under
1,000

1H20 GROUP FINANCIAL SUMMARY
*1H20 non-trading adjustments being $2.0m restructuring and relocation costs and a non-cash goodwill impairment of $37.1m (1H19:Plastics
business exit $0.1m). Further details included in appendix to this presentation.
9
$millions1H19 Actual1H20 Pre-NZ
IFRS 16
NZ IFRS 16
adjustments
1H20
Actual
Revenue
258.2232.0-232.0
EBIT
9.8(36.0)2.6(33.4)
Non-trading adjustments*
(0.1)39.1-39.1
Normalised EBIT (excluding non-
trading adjustments)
9.73.12.65.7
NPAT/NLAT
5.6(36.8)(0.2)(37.0)
Dividend (cents per share)
3.51.5-1.5
Shareholder Equity
255.8213.110.0203.1
Net Debt
16.010.9-10.9
Net operating cash flow
11.110.56.617.1

MARKET CONDITIONS
10
Reduced vertical construction activity and softer stainless market has impacted on Steel & Tube
revenues

SECTOR EXPOSURE
11
Non-food
Manufacturing, 24%
Food
Manufacturing, 14%
Retail/Wholesale,
10%
Residential
Construction, 15%
Non-Residential
Construction, 24%
Infrastructure,
13%
SHARE OF SALES

REVENUE & MARGIN
•Decline in vertical construction activity impacted both divisions
•Contraction in Stainless market impacted Distribution
•Market share maintained and margins held at approximately 22%
12
Reduction in revenue primarily related to contraction in vertical construction activity and
stainless steel market. Maintained margin and market share
10.0%
15.0%
20.0%
25.0%
30.0%
100
150
200
250
300
1H192H191H20
$M
SALES AND MARGIN
SalesMargin %
Revenue
$millions
1H201H19*% change
Distribution135.4149.8-9.6%
Infrastructure96.6107.4-10.1%
Group232.0257.2-9.8%
*1H19 excludes S&T Plastics

49.4
46.6
48.8
(1.8)
(0.2)
0.4
(1.2)
2.8
(0.6)
45
46
47
48
49
50
1H19 Normalised
Opex
Net property
consolidation
benefits
Reduction in
indirect employee
costs
Increased IT /
Digital spend
Other cost
reductions
1H20 Opex excl.
Bad Debts and
Com Com Fine
Bad & Doubtful
debts
Other
1H20 Nomalised
Opex
$M
OPERATING EXPENSES
•$2.8m decrease in underlying
opexafter normalisation and
excluding impact of bad debts
•Property costs down $2.3m,
partially offset by $0.5m rent
increases
•Employee costs down $0.8m,
largely offset by $0.6m wage
inflation. Benefits from 1H20
restructuring expected to
increase in 2H20
13
Cost efficiencies continue to be achieved in underlying opex
* Opexfigures have been normalisedto exclude the impact of NZ IFRS 16, as well as $39.1m in non-trading adjustments being $(2.0)m
restructuring and relocation costs and a non-cash goodwill impairment of $(37.1)m
1H19:1H20 NORMALISED OPERATING EXPENSES*
STRUCTURAL / EFFICIENCIESOTHER COSTS

OPERATING CASH FLOW
14
Improved operating cash flow generation
•Improved operating cash flow of $10.5m on
a pre-NZ IFRS 16 basis
•Cashflow has benefitted from improved
working capital management
•Reduced interest expense due to refinancing
completed in 1H19
•Prior year 1H19 cash flow included the
benefit of $5.6m tax refund
$millions1H201H19
Reported net operatingcash flow17.111.1
NZ IFRS 16 cash flow reallocations(6.6)-
Pre-NZIFRS 16 operating cash flow10.511.1
11.1
10.5
3.0
1.9
(5.6)
0.0
5.0
10.0
15.0
20.0
1H19
Customer & Supplier
Receipts(Payments)
Reduced Interest Expense
1H19 Tax Refund
1H20
$M
1H19:1H20 OPERATING CASH FLOW BRIDGE

WORKING CAPITAL
15
Continued focus on working capital management
•Continuing focus on working capital management has resulted in strong operating cash flow
generation of $10.5m on a pre-NZ IFRS 16 basis
•Debt collection rates have continued the year-on-year improvement trend seen from 2H19
•Inventory $120.0m (FY19: $114.0m / 1H19: $123.8m) -increase in inventory value during
period due to the timing of orders around Chinese New Year to ensure core stock
availability, the impact of cost increases and lower sales volumes.
DSO: Days Sales Outstanding DIO: Days Inventory Outstanding DPO: Days Payable Outstanding
Working Capital KPIs1H201H19FY19
FY18 Excl.
Plastics
Trade Receivables: DSO4348
4865
Inventories: DIO111124
107110
Trade Payables: DPO
30262626

CAPITAL EXPENDITURE
•$3.9m 1H20 Capex spend (1H19: $2.9m)
•Capital spend remains in line with depreciation
and amortisation
•Increased capital allocation to Digital and
Growth projects
•Funded through operating cash flow
16
Digital47%
Growth18%
Maintenance
35%
CAPEX SPEND
Prudent management of capital expenditure with increased allocation to Digital and Growth
projects

BALANCE SHEET
•Working capital improvements strengthening
cash flows
•Reduction in net debt to $10.9m from
operating cashflows
•Gearing ratio of 5.4%
Dividend
•Board has declared an interim 1H20 dividend of
1.5 cps
$m1H201H19FY19
Trade and other receivables74.184.190.7
Inventories120.0123.8114.0
Trade and other payables(36.7)(44.9)(42.9)
Working Capital157.4163.0161.8
Cash and cash equivalents13.18.09.0
Borrowings(24.0)(24.0)(24.0)
Net Debt 10.916.015.0
17
Tight control over balance sheet, with disciplined focus on working capital management

NZ IFRS 16 EFFECTIVE 1 JULY 2019
•Removes the distinction between operating
and finance leases, with all leases now on
balance sheet
•Results in a shift of operating lease costs,
currently reported within other operating
expenses, to interest and depreciation
•Impact on cash flows and net earnings over
the lease term remains the same, however
interest expense is higher in the earlier
years of the lease and lower in later years
•Resulted in the recognition of “right of use”
assets of $105m and lease liabilities of
$121m upon adoption at 1 July 2019
•1H20 resulted in an increase to reported
EBIT of $2.6m and a decrease to reported
NPAT of $0.2m
18
0
100000
200000
300000
400000
AssetsLiabilities
BALANCE SHEET
AS AT 31 DECEMBER 2019
Before IFRS 16IFRS 16 Adjustment
0
2500
5000
7500
Normalised EBITNormalised Profit Before Tax
PROFIT & LOSS
AS AT 31 DECEMBER 2019
Before IFRS 16After IFRS 16 Adjustment

2H20 TRADING UPDATE
•No major changes to current market dynamics expected
•Some indications of improving business confidence should lead to increased market activity in
2H20. Major projects secured post balance date are expected to commence in 2H20
•Sales and margin improvements targeted through maximising cross-selling opportunities,
pricing disciplines and leveraging the AX ERP system to support customers with digital solutions
•Continue to take actions to streamline the business operating model
•Coronavirus has the potential to impact on site operations, customer demand and the timing of
projects and some of Steel & Tube’s suppliers.To date there has been no significant impact on
the business and the Company has plans to take mitigating actions where possible.This will
continue to be monitored.
•Improved second half performance expected (cf1H20) as Steel & Tube benefits from cost
efficiencies and overhead reductions, Project Strive initiatives and the commencement of new
contracts
Priority is customer service and streamlining business leading to profitable growth

QUESTIONS

NON-GAAP FINANCIAL INFORMATION
Non-GAAP financial information: Steel & Tube 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 Steel & Tube’s business. 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.
Non-trading adjustments/Unusual transactions: The financial
results for 1H20 include a number of unusual transactions,
considered to be non-trading in either their nature or size.
These transactions are excluded from normalisedearnings. The
reconciliation is intended to assist readers understand how the
earnings reported in the Financial Statements for the year
ended 31 December 2018 and 31 December 2019 reconcile to
normalisedearnings. Non-trading adjustments of $(0.1) million
and $(39.1) million were included in the 1H19 and 1H20 results
respectively. Steel & Tube’s unaudited reconciliation of non-
GAAP measures to GAAP measures for the six month financial
period ended 31 December 2019 is detailed in the following
table.
21
RECONCILIATION OF GAAP TO NON GAAP MEASURES
Half Year ending 31 December 2019
$000s
IH201H19
GAAP: Earnings/(Loss) before interest and tax (EBIT)
(33,370)9,819
Add back unusual transactions (non-trading adjustments):
Impairment of Goodwill
37,071-
Project Strive Execution Costs
2,029-
S & T Plastics EBIT (no longer contributing to trading EBIT)
-(144)
Normalised EBIT -Non -GAAP
5,7309,675

GLOSSARY OF TERMS
EBIT: This means Earnings/ (Loss) before the deduction of interest and tax and is calculated as profit for the year before net interest
costs and tax. 1H20 EBIT was impacted by a number of non-trading adjustments totaling $(39.1) million, details of which are included in
S&T’s Interim Financial Statements.
Non-trading adjustments include:
•1H20 Impairment of Intangible Assets: Steel & Tube incurred $37.1m of non-cash Goodwill impairment charges in 1H20 following
an assessment of the carrying value against recoverable amount as at 31 December 2019.
•1H20 Project Strive Execution Costs: Includes non-trading restructuring and site relocation costs incurred in reviewing and
streamlining operations.
•1H19 S&T Plastics: Steel & Tube announced it was exiting its Plastics business in May 2018 and wrote-down the value of assets.
The financial results of this business has been excluded from 1H19, which has also excluded a small gain realisedfrom disposal of
assets.
Normalised EBIT: This means EBIT after normalisationadjustments.
Working Capital:This means the net position after current liabilities are deducted from current assets. The major individual components
of working capital for the Group are Inventories, Trade and other receivables and Trade and other payables. How the Group manages
these has an impact on operating cash flow and borrowings.
22

This presentation has been prepared by Steel & Tube 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 notpurport 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 regardtothat
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 an 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
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