Steel & Tube FY20 Results

28 August 2020
STU / NZX ANNOUNCEMENT


STEEL & TUBE FY20 RESULTS ANNOUNCEMENT
Positioned for the new trading environment with a leaner cost structure, a strong balance sheet and a
clear strategic plan.

•
Results in line with 10 August guidance, with FY20 normalised EBIT (Earnings Before Interest and
Tax) of $0.4m excluding non-trading adjustments.
•
Non-trading adjustments of $58.1m
1
, resulting in a Net Loss After Tax of $(60.0)m.
•
Reduction in revenue to $417.9m primarily related to COVID-19 lockdown and restrictions in
2H20, contraction in vertical construction activity, softening in the stainless steel market and
competitive pricing pressures.
•
Strong net operating cashflow of $39.6m (pre-IFRS 16 $26.6m) due to working capital
management and inventory significantly reduced to $101.1m.
•
Cash of $17.4m at year end with borrowings reduced to $10.0m.
•
Accelerated organisation restructure with network and workforce reduction well underway,
creating a leaner and more efficient organisation.
•
Economic environment remains uncertain with reduced activity expected. No final dividend
declared.

Steel & Tube Holdings Limited (NZX: STU) has today announced a full year result for the 12 months
ending 30 June 2020, in line with the guidance provided in its trading update on 10 August 2020.
Revenue for the 12 months was $417.9m, reflecting the impact of COVID-19 in the second half of the
year and following the first half year impacts of reduced vertical construction activity, a softening
stainless steel market and competitive pricing pressures. The level 4 lockdown and progressive return to
business occurred during a traditionally high earning period for the business, with a significant impact in
April and May.
In response to the pandemic, Steel & Tube has accelerated its organisation change programme, with 11
branch closures and consolidations, creating a more streamlined and leaner business. This required some
difficult decisions with a reduction in the workforce of between 150 - 200 people, with 93 people having
already left the organisation at 30 June and the balance to leave during the first half of FY21.
As previously advised, the result includes non-trading adjustments of $58.1m, including non-cash
goodwill and other impairments of $51.9m and $5.5m in restructuring and rationalisation costs.
FY20 normalised EBIT (excluding non-trading adjustments) was $0.4m. On a like for like basis with the
prior year, excluding NZ IFRS 16
2
, normalised EBIT was $(5.2)m. The company reported a Net Loss After
Tax of $(60.0)m.


1
Normalised EBIT excludes non-trading adjustments of $58.1M, which includes non-cash goodwill impairment and other
write-downs due to acceleration of branch network changes, business restructuring and digitisation and the impact of
COVID-19.
2
STU adopted NZ IFRS 16 Leases on 1 July 2019. The adoption of this standard results in the reclassification of operating
lease expenses to depreciation and financing costs resulting in an increase to EBIT and operating cash flow and a decrease
in NPAT. Pre-NZ IFRS 16 financial information is provided to assist with comparison to FY19 reported results.

Despite the challenging second half, Steel & Tube’s balance sheet is strong, with net cash of $7.4m as at
30 June 2020. Operating cashflows were robust, with $39.6m (pre-NZ IFRS 16 $26.6m) for the year
ended 30 June 2020 and borrowings reduced to $10m reflecting working capital and capital management
discipline. Post-balance date, the company has completed the sale of a surplus Gisborne property with
net proceeds of $1.4m applied to further reducing borrowings. Given the uncertain economic outlook
and the loss reported for FY20, the Board has determined that no final dividend will be paid.
In addition to waivers of existing bank covenants for 30 June and 31 December 2020, Steel & Tube has
also agreed temporary revised covenants with its bank syndicate for the remainder of FY21, which it
expects to comfortably meet.
Margins were showing improvement pre-COVID, however, have reduced post-COVID driven by product
mix. Management’s priority is to improve margins as quickly as possible. The leaner organisational
structure and digital investment will help in this area.
Operating costs have been held flat versus prior year in real terms as cost efficiencies offset inflationary
pressures and an increase in provisions for bad and doubtful debts.
CEO of Steel & Tube, Mark Malpass, said: “While our headline result was not as we would have liked due
to softening market conditions exacerbated by the impact of COVID-19 as well as non-cash goodwill and
business restructuring related impairments, we are pleased at how our company and our people have
come through this challenging period.
“The work done over the past two years as part of the Strive programme is now demonstrating its value.
Steel & Tube has a stronger financial platform and is a more efficient and leaner business. We have
accelerated investment in digital technology to support our move to a service model that combines ease
of business and service for customers.”
Moving Forward
During the alert level 4 lockdown, Steel & Tube’s Board and Management took the opportunity to review
and re-focus the Company’s strategy. This strategy is focussed on cementing Steel & Tube’s position as
the leader in the sector, the preferred choice for steel products and solutions and an efficient and
profitable business, which delivers value for customers, staff and shareholders.
Innovation and digitisation remain key enablers to help achieve these goals. This has been an important
area of investment over the last 12 to 18 months and plans have been accelerated to deliver a digitally
smart and efficient business as part of the business strategy.
Mark said: “Customers will continue to need a trusted, supplier and partner to deliver steel solutions
which meet their needs. Our geographic sales strength, improved customer service functions, accelerated
investment in digital capabilities and ecommerce options for customers are a key source of competitive
advantage for our company. In addition, the Government is investing into infrastructure and Steel & Tube
has the expertise and the proven experience to deliver steel solutions on these large scale projects.
“We are re-shaping the organisation to be more customer focused and sales led. The results of this are
already being seen with increasing customer satisfaction measures and a number of new projects and
contracts being won.”
More detail on Steel & Tube’s FY20 results and strategy are available in the Investor Presentation
released with the FY20 results announcement.

Outlook
While trading has recovered to close to prior year since June, there is expected to be some deterioration
in economic conditions later in the year and into 2H FY21. With this uncertainty and expectations of an
economic recession, Steel & Tube is taking a careful and prudent approach to the management of the
business.
Chair of Steel & Tube, Susan Paterson, commented: “We are conscious that, like most other businesses in
this post-COVID environment, there will be challenges on the road ahead. We are starting the new
financial year with a strong balance sheet, a leaner cost structure and a clear strategy. We are confident
that Steel & Tube is well positioned to weather a range of forecast economic scenarios and, importantly,
to take advantage of the opportunities ahead of us.”
ENDS
For media assistance, please contact; Jackie Ellis, Tel: +64 27 246 2505 Email: jackie@ellisandco.co.nz

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

---

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 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$417,923 (16.1%)
Total Revenue $417,923 (16.1%)
Net profit/(loss) from continuing
operations
($60,013) (676.2%)
Total net profit/(loss) ($60,013) (676.2%)

Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends.
Supplementary dividend per
Quoted Equity Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
(30 June 2019)
Net tangible assets per Quoted
Equity Security
$1.03 $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. These include normalised
EBIT and normalised NPAT. 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.
The Group’s financial results for FY20 have been impacted
by the alert level 4 shutdown and progressive return to work

due to the pandemic. The Group have identified certain
impairments, restructuring and site rationalisation costs that
have arisen as a result of the strategic actions in response to
COVID-19 (including the forecast economic recession) and
that give rise to costs that would not otherwise have been
incurred, as non-trading items in the FY20 results.
Steel & Tube reports its normalised post NZ IFRS 16 EBIT as
$0.4m for FY2020 (Normalised pre NZ IFRS 16 EBIT:
$(5.2m). Further details on the unusual transactions/non-
trading adjustments are included in the investor presentation
and Annual Report for the twelve months ended 30 June
2020.
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.
 Normalised Net Profit after Tax: This means Net Profit
after Tax after normalisation adjustments net of tax.
 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

28 August 2020

Audited financial statements accompany this announcement.

---

FY20 Results
Presentation
For the 12 months ended
30 June 2020

FY20 SNAPSHOT
•
Challenging 1H20, with adverse market conditions, particularly reduced vertical construction work and
a contraction in the stainless steelmarket, impacting on sales revenue and volumes.
•
COVID-19 pandemic had a significant impact on 2H20 results and more than offset some of the
promising market improvements being seen.
•
The level 4 lockdown and progressive return to business occurred during a traditionally high earning
period for Steel & Tube, with a significant impact in late-March and April. Post lockdown, sales
recovered through May, and June was in line with the prior year.
•
Acceleration of branch network changes (including site consolidations), business restructuring and
digitisationin response to anticipated post COVID-19 market conditions.
•
FY20 result includes non-cash goodwill and other asset impairments as well as increased doubtful
debts and a provision for backdated holiday pay obligations.
•
Strong operating cash flows on the back of continued working capital discipline, with significant
inventory reductions.
•Cash of $17.4m at year end with borrowings reduced to $10m.
2

OUR RESPONSE TO THE COVID-19 PANDEMIC
•Contingency planning and precautionary measures including development of contactless
tracing system that was shared within the industry and with customers.
•During L4 lockdown, all sites closed except where needed to supply essential services.
•Customers supported online and through safe business trading.
•Prudent approach to capital management –cancellation of 1H20 dividend payment and no
final dividend declared.
•Received Government wage subsidy assistance of $6.6m.
•All non-essential capital and operating spend cancelled or deferred.
•Accelerated organisation restructure to right size the business for the expected longer term
downturn in economic activity.
•Considerable COVID-19 impact on financial performance in March and April; sales recovered
through May, since June trading close to prior year.
3

STRATEGIC RESPONSE TO ‘NEW NORMAL’
4
Expect a longer term downturn in economic activity as a result of global COVID-19 pandemic
ACTIONS TAKEN
•Accelerated organisation restructure to right size the business:
—Network footprint reduced by 8 during the year with a
further 3 more to consolidate/close in FY21
—Workforce reduction of 150 to 200 (20% reduction on
pre-COVID-19) by end 1H21
•Careful and prudent working capital management.
•Well positioned with a strong balance sheet and leaner cost
structure.
•Accelerated investment in digital technology providing a critical
platform and key point of difference for customers.
•Reset customersegmentation and ease of service model
including customer centre and technical support.
•Moving forward with clear strategy for FY21 to FY23.
OUTCOMES
Reduction in labour cost in FY21
of approx. $10m (annualised
benefit $12-13m).
FY20 restructuring,
rationalisation and impairment
costs of $11.3m* (approx. 44%
cash/56% non-cash).
Borrowings to be further
reduced from $10m.
*excludes $46.1m impairment on intangibles and
$0.7m holiday pay provision

BENEFITS FROM ORGANISATION RESTRUCTURING
5
800
1062
1007
916
830
750
850
950
1050
Jul
-
19
Aug
-
19
Sep
-
19
Oct
-
19
Nov
-
19
Dec
-
19
Jan
-
20
Feb
-
20
Mar
-
20
Apr
-
20
May
-
20
Jun
-
20
Jul
-
20
Aug
-
20
Sep
-
20
Oct
-
20
Nov
-
20
Dec
-
20
FTES
LabourForecast
Contingency reduction in labourLabour at budgeted revene
0%
5%
10%
15%
20%
25%
30%
35%
Variable Cost Metrics
Freight/Sales %Direct Labour/Sales %Direct Labour net Subsidy/Sales %
•Freight and direct labourcosts have scaled
in line with sales; initiatives continue to
target efficiencies
•FTE numbers reduced from 1,062 to 916 at
30 June
•FY21 changes progressing with 86 FTEs
(including 45 outsourced) and a further 30
pending sales levels
Accelerated restructuring is well progressed and new ways of working including Digital are being
implemented enabling a significantly lower cost base

NETWORK STRATEGY
6
Network consolidation programme coming to an end while maintaining a regional presence and increased
product offering
Annual Lease
Cost ($m)
$18.4*$15.6$15.4**
•2017 includes sale & lease back of
two properties with lease costs of
$3.5m per annum, partially offset
by reduced interest costs of
~$1.6m per annum.
**A further ~$0.7m in lease cost
savings could be achieved through
securing sub-lease arrangements

SECTOR EXPOSURE
7
Non-food Manufacturing
24%
Food Manufacturing
14%
Retail/
Wholesale
10%
Residential
Construction
15%
Non-Residential
Construction
24%
Infrastructure,
13%
SHARE OF FY20 SALES
FY19: 24%
FY19:14%
FY19:12%
FY19:12%
FY19:25%
FY19:13%

2,000
2,500
3,000
3,500
4,000
# Consents
Monthly
Residential Consents
FY19FY20
MARKET CONDITIONS
8
Reduced vertical construction activity and softer stainless market impacted on revenues and margin
2,500
2,700
2,900
3,100
3,300
3,500
3,700
3,900
M2 (000)
Rolling 12 months
Non-Residential Consents –Floor Area
FY19FY20
Source: Statistics New Zealand,RBL Crane Index, BNZ –BusinessNZPMI
100
110
120
130
140
150
160
170
Mar-17Sep-17Mar-18Sep-18Mar-19Sep-19Mar-20
RBL Non-Residential Crane Index
Base Dec -15 = 100
0
10
20
30
40
50
60
70
Jun-18Jun-19Jun-20
Performance of Manufacturing Index (PMI)

FY20 GROUP FINANCIAL SUMMARY
1.FY20 includes impact from adoption of new lease accounting standard (IFRS 16)
2.NormalisedEBIT excludes non-trading adjustments of $58.1M, which includes non-cash goodwill impairment and other write-downs due to acceleration of branch
network changes, business restructuring and digitisationand the impact of COVID-19.
9
$mFY20
1
NZ IFRS 16
adjustments
FY20 Pre-NZ
IFRS 16
FY19
Revenue
417.9-417.9498.1
EBIT
(57.7)(1.3)(59.0)16.8
Non-trading adjustments
2
58.1-58.1(0.8)
Normalised EBIT (excluding non-trading adjustments)0.4(5.6)(5.2)16.0
NPAT/(NLAT)
(60.0)2.8(57.2)10.4
Shareholder Equity
181.313.2194.5253.9
Net Cash / (Debt)
7.4-7.4(15.0)
Net operating cash flow
39.6(13.0)26.621.3

REVENUE & MARGIN
•Improving sales and pipeline in 3Q20 pre-
COVID-19.
•COVID-19 lockdown restrictions and
progressive return to work heavily
impacted revenue and margin.
•Margin impacted by product mix in return
to work period post L4 Lockdown.
•Sales recovery post-lockdown, with June
trading comparable to pcp.
10
Reduction in revenue primarily related to COVID-19
lockdown and restrictions in 2H20 and contraction
in vertical construction activity and stainless steel
market which continued throughout the year.
Revenue
$m
FY20FY19$
change
%
change
Distribution247.9287.7(39.7)(13.8)%
Infrastructure170.0209.4(39.4)(18.8)%
Group417.9498.1(80.2)(16.1)%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
50
100
150
200
250
300
1H192H191H202H20
$M
Sales and Margin
SalesMargin %

NORMALISED OPERATING EXPENSES
Operating expenses largely in line with prior
year, on a normalised basis
1
•Overall prudent and disciplined
management of expenditure continues.
•Operating costs have been held flat versus
prior year in real terms.
•Increase in IT and Digital costs of $1.1m to
support improved service delivery, and
$2.7m increase in provisions for bad and
doubtful debts ($0.1m in FY19).
•Mostly offset by $0.7m reduction in
employee costs and other efficiencies of
$2.2m.
•Excluding doubtful debts, normalised opex
was down $1.9m (2%) on the prior year.
11
1. Opexfigures have been normalisedto exclude the impact of NZ IFRS16, as well as 5.7m in non-trading adjustments.
See Slide 29 and 30for definitions of financial terms and reconciliation of normalisedresults.
$m
FY20FY20N
1
FY19N
1
% Change
OPEX97.196.895.91.0%
95.9
96.8
1.1
2.7
(2.9)
60
65
70
75
80
85
90
95
100
105
FY19 Normalised Opex
Increased IT / Digital
spend
Bad & Doubtful debts
Other Costs reductions
FY20 Nomalised Opex
$M
FY19:FY20 Operating Expenses*

STRONG OPERATING CASH FLOW & NET CASH POSITION
12
Improved operating cash flow generation
•Improved operating cash flow of $10.9m year
on year (excluding prior year tax benefit and
on a pre-IFRS basis). Benefitted from
improved working capital management.
•Net debt decreased by $22.4m to end the
year in a positive net cash position of $7.4m.
•On track to repay remaining borrowings in
FY21.
(120)
(100)
(80)
(60)
(40)
(20)
0
20
FY18FY19FY20
$M
Net Cash/(Debt) and Borrowings
Net DebtNet CashTotal Borrowings
Cashflow
$m
FY20FY19*
Reported net operating cash flow39.621.3
NZ IFRS 16 cash flow reallocations(13.0)-
Pre-IFRS16 operating cash flow26.621.3
* Prior year cash flow included the benefit of $5.6m tax refund.

WORKING CAPITAL
13
Continued focus on working capital management
•On-time debt collection rates have
continued the year-on-year improvement
trend seen from 2H19.
•Reduction of inventory by $13m to $101m
through disciplined procurement and
operational efficiencies.
DSO: Days Sales Outstanding
DIO: Days Inventory Outstanding
DPO: Days Payable Outstanding
Working Capital KPIs
(Averages excl. April 2020)
FY20FY19
FY18
Excl. Plastics
Trade Receivables: DSO4248
65
Inventories: DIO101107
110
Trade Payables: DPO
312625
114.0
101.1
(11.0)
(1.9)
60
70
80
90
100
110
120
FY19 Inventory
Procurement efficiencies &
inventory reduction
Aged Stock reduction
FY20 Inventory
$M
FY19:FY20 Inventory

CAPITAL EXPENDITURE
•FY20 capex of $7.6m (FY19:$7.2m).
•Capital spend remains in line with D&A.
•Priority capital allocation to projects
supporting digital and business
improvement/growth.
•Funded through operating cash flow.
•FY21 capex expected to align with D&A.
Digital Spend Projects in FY20:
•Customer Portal and customer
segmentation strategy
•Barcode Scanning
•Traceability
14
Prudent management of capital expenditure with increased allocation to Digital and Growth
projects
0
10
20
30
40
50
FY16FY17FY18FY19FY20
$M
CAPITAL INVESTMENT
SoftwarePlant & Equipment
Land & BuildingAcquisitions
Depreciation and amortisation
FY20 Breakdown:
•Digital 47%
•Maintenance 34%
•Growth 18%

BALANCE SHEET
•Working capital improvements strengthening cash
flows.
•Reduction in inventory to $101.1m.
•Net cash position of $7.4m as at 30 June 2020.
•Paid down $14m in borrowings in FY20.
•Bank covenant waivers and revised covenants
agreed for FY21.
Dividend
•Cancellation of interim dividend due to COVID-19.
•Prudent approach due to uncertain outlook
•In line with policy, no final dividend declared for
FY20.
$mFY20FY19
Trade and other receivables92.799.9
Inventories101.1114.0
Trade and other payables*(58.9)(45.6)
Working Capital134.9168.3
Cash and cash equivalents17.49.0
Borrowings(10.0)(24.0)
Net Cash/(Debt) 7.4(15.0)
15
Tight control over balance sheet, with substantial bank funding lines secured
*FY20 includes finance lease liabilities of $12.6m recognised under NZ
IFRS 16 Lease

DIVISION
REVIEW

OUR BUSINESS -DIVISIONS
DISTRIBUTION
Products sourced from preferred steel mills and
distributed through our national network
INFRASTRUCTURE
Products processed before sale, 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
17

Both divisions significantly impacted by COVID
shutdown
Distribution
•Improvements from Strive initiatives with
targeted initiatives lowering cost to serve
•Impacted by contraction in stainless market
and softening of vertical construction market
•Growing revenues and margins pre-COVID
Infrastructure
•Significant impact from the softening in vertical
construction
•Solid pipeline of infrastructure and civil work
•Continued to win key project work
FY20 DIVISIONAL PERFORMANCE
18
Distribution
FY20FY19
$m
Revenue248.0287.7
Normalised EBIT(0.2)2.9
Normalised EBIT Pre-NZIFRS 16(3.4)2.9
EBIT (29.9)2.9
Infrastructure
FY20FY19
$m
Revenue170.0209.4
Normalised EBIT0.511.9
Normalised EBIT Pre-NZIFRS 16(1.8)11.9
EBIT (26.1)11.9
See slides 29 and 30for definitions of financial terms and reconciliation of normalisedresults.

MOVING
FORWARD
IT’S GAME ON

Late-2017: Embarked on an extensive company-wide reset to drive long-term sustainable
earnings improvement and rebuild shareholder value. Foundation now laid and moving
forward.
FY17 TO FY20 STRATEGIC PROGRESS
20
FY18FY19FY20FY21 to FY23
JOURNEY TO REFRESHED
BOARD, STRATEGY & LEADERSHIP
Moving Forward:
Steel & Tube leadership in the
sector and the preferred
choice for steel products and
solutions across the country
PROJECT STRIVE:
CHANGE PROGRAMME,
OPERATIONAL RESET
EXTENSIVE
ORGANISATIONAL
REVIEW
2H17
January to June
STRENGTHENED FOUNDATION,
CONTINUAL IMPROVEMENT

STRATEGIC PILLARS
21
COMMITMENT TO QUALITY,
HEALTH AND SAFETY
▪Safe and healthy work
environment
▪Quality processes
▪Quality products
▪Continual improvement
▪Focus on sustainability
PUTTING THE CUSTOMER AT THE
HEART OF OUR BUSINESS
▪Products and services to meet
customers’ needs
▪Leverage our technical expertise
▪Delivery on time and on spec
OPERATIONAL AND SUPPLY CHAIN
EXCELLENCE
▪Leverage our procurement and
supply chain scale
▪Excellent inventory management
▪Employ data analytics to better
service customers
▪Drive efficiencies
SUPPORTING A WINNING TEAM
▪Develop leaders
▪Everyone matters
▪Recognise personal and team
contributions
▪Provide a rewarding workplace
Our four pillars are fundamental for our business and underpin all that we do.

MOVING FORWARD
22
OUR PURPOSE:
To make life easier for our customers needing
steel product and service solutions.
OUR VISION:
To provide unparalleled customer service and
experience.
OUR GOAL:
To position Steel & Tube as the best in the
sector, the preferred choice for steel products
and solutions and a trusted partner for our
customers.

OUR STRATEGIC PATHWAYS
23
MAKING IT EASYDelivering the information, expertise, purchasing options and communication
channels that make it easy for our customers
FULL SERVICE
PROVIDER
Leveraging our breadth of expertise, quality products and strong brands to deliver
a ‘ground up’ solution for our customers.
BETTER WAYS OF
WORKING
Continually improving to ensure an efficient and effective operational platform,
with strong operational discipline and excellent customer service
INNOVATION AND
DIGITISATION
Embracing new technology and continually innovating to deliver on our customer
and partner strategies –and drive greater efficiency in our business.
ONE TEAMAligning our staff and our businesses behind a common purpose, investing in staff
development, recognising and growing their talents and contributions and
empowering them to add more customer value

SECTOR OUTLOOK
24
Construction
•Residential near-term demand strong, supported by tight supply, low mortgage
rates, and strong first home and returning expat buyer interest.
•Non-residential demand remains soft with many projects being delayed. Residential
and business investment expected to contract as pipelineand confidence thins.
Infrastructure
•Large infrastructure projects ongoing and promising pipeline with “shovel ready”
projects.
•Government $3b increased funding of infrastructure projects on top of $12b
increase announced in January, noting uncertainty of timing at this stage.
Manufacturing
•Food manufacturers and agriculture sectors are expected to fair better as
necessities are in high demand locally and abroad.
•NZ’s focus on more resilient local supply chains and increased domestic
manufacturing may help offset some of the export led decline.
Rural
•Changing dynamics with move from dairy conversion to maintenance programmes
and other opportunities.

FY21 OUTLOOK
•Post Level 4 shutdown, structural changes embedded.
•Trading in Q1 FY21 has been stronger than anticipated to date.
•Moving ahead with clear strategic plan for next three years.
•Continue to take actions to streamline the business operating model.
•Well positioned with a strong balance sheet and leaner cost structure.
•Accelerating investment in digital technology providing a critical platform to ensure ease of
doing business for our customers.
•Cautious approach to future economic environment, careful business stewardship required.
•No guidance for FY21 due to uncertain impacts of COVID-19 on trading.
Sector leadership as the preferred choice for steel products and solutions and a trusted partner
for our customers

QUESTIONS

DEVELOPING A SUSTAINABLE BUSINESS
We believe in a sustainable business, which is committed to creating value for our customers,
employees, shareholders and communities
27
COMMITMENT TO SAFETY & QUALITY
•Occupational Health & Safety
•High quality products and services
CUSTOMER AT THE HEART OF THE BUSINESS
•Customer satisfaction
•Product life cycle performance
OPERATIONAL & SUPPLY CHAIN EXCELLENCE
•Financial performance and governance
•Material efficiency and recycling
•Energy and carbon
SUPPORTING A WINNING TEAM
•Talent attraction and retention
•People development and labour practices
•Culture of wellbeing

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
•FY20 resulted in an increase to reported
EBIT of $1.3m and a decrease to reported
NPAT of $2.8m
28
0
100,000
200,000
300,000
400,000
AssetsLiabilities
$000’s
BALANCE SHEET
AS AT 30 JUNE 2020
Before IFRS 16IFRS 16 Adjustment
(7,500)
(5,000)
(2,500)
0
2,500
Normalised EBIT
$000’s
PROFIT & LOSS
AS AT 30 JUNE 20
Before IFRS 16After IFRS 16 Adjustment

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 FY20 include a number of transactions, considered to be
non-trading in either their nature or size. 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. Excluding these transactions from normalised
earnings can assist users in forming a view of the underlying
performance of the Group. The following reconciliation is intended
to assist readers to understand how the earnings reported in the
Financial Statements for the years ended 30 June 2019 and 30 June
2020 reconcile to normalisedearnings. Non-trading adjustments of
$58.1 million are included in the FY20 results.
29
RECONCILIATION OF GAAP TO NON GAAP MEASURES
Year ended 30 June 20
$000s
FY20FY19
GAAP: Earnings/Loss before interest and tax (EBIT)(57,694)16,795
Add back unusual transactions/non-trading adjustments:
Goodwill impairment
37,071
-
Intangible Asset impairment
9,000
-
Right of Use Lease Asset impairment
4,298
-
Business restructuring costs
3,449
-
Site rationalisation execution costs
2,011
-
Property, Plant and Equipment Impairment
1,508
-
Holiday Pay provision
750
-
S & T Plastics EBIT (no longer contributing to trading EBIT)-(773)
NormalisedEBIT post NZ IFRS 1639316,022
Impact of NZ IFRS 16(5,638)-
Normalised EBIT pre NZ IFRS 16(5,245)16,022

GLOSSARY OF TERMS
COVID-19: The Group’s financial results for FY20 have been impacted by the alert level 4 shutdown and progressive return to work due
to the pandemic. The Group has identified certain impairments, restructuring and site rationalisationcosts that have arisen as a result of
the strategic actions in response to COVID-19 (including the forecast economic recession) and that give rise to costs that wouldnot
otherwise have been incurred, as non-trading items in the FY20 results. The impact of lost revenues and Government wage subsidyare
included in the Group’s trading results for FY20.
EBIT: Earnings / (Loss) before the deduction of interest and tax. This is calculated as profit for the year before net interest costs and tax.
FY20 EBIT was impacted by a number of non-trading adjustments totalling$(58.1) million, as shown in the table above.
Normalised EBIT: This means EBIT excluding non-trading adjustments and unusual transactions.
NZIFRS 16 Leases: On 1 July 2019, the Group adopted NZIFRS 16 Leases accounting standard. This has resulted in the reclassification of
operating lease expenditure to a combination of depreciation and financing costs. FY19 financial results have not been restatedfor the
impact of this new standard and hence Management have provided both post and pre NZIFRS 16 results for FY20 to help with
comparison of the results to FY19.
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.
30

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
31

---

Dear Shareholder
We are pleased to advise that the Steel & Tube Holdings Limited Annual Report for the year ended 30 June 2020 is now
available to view on our website https://steelandtube.co.nz/investor/reports.
The FY20 year presented significant challenges and demonstrated the resilience of our people and company in the face
of both market adversity and the COVID-19 pandemic. While a slowdown was being seen in some sectors prior to the
level 4 lockdown, this was accelerated further in the second half of the financial year as the pandemic took hold, and we
rapidly moved to adapt our organisation for a new environment.
This was reflected in our results, with reduced sales revenues and earnings, restructuring costs and an increase in
doubtful debt provisioning as well as non-cash impairments and write-downs impacting on our bottom line. Pleasingly
however, our operating cashflows and balance sheet remain strong, with borrowings reduced.
Importantly, the work we have done over the past two years as part of our Strive programme is now demonstrating its
value. We have a stronger financial platform, a more efficient and leaner business and are leading the steel industry in
digitisation and technology.
While economic forecasts for the various sectors are mixed, all indicators currently suggest there will be a decline in
economic activity overall. We are continuing to adapt our business to ensure we are best positioned to not only survive
but to strengthen our competitive position over this time. Our strong balance sheet will stand us in good stead during
this period and our strategy sets out a pathway that builds on our competitive advantage.
Customers will continue to need a trusted supplier and partner to deliver steel solutions which meet their needs.
Our geographic sales strength, improved customer service functions, accelerated investment in digital capabilities
and ecommerce options for customers are a key source of competitive advantage for our company. In addition, the
Government is investing in infrastructure and we have the expertise and the proven experience to deliver steel solutions
on these large scale projects.
We are positioning our company to be customer focused and sales led, with a lot of our recent efforts focused around
marketing, establishing a centralised customer excellence centre, sales training and utilising technology to make it
easier for our customers to do business with us.
With the start of the FY21 financial year, we have put in place a clear strategy to guide our actions. Our vision is a
successful company delivering an acceptable return to its shareholders, seen as the leader in the sector, the preferred
choice for steel products and solutions and a trusted partner for our customers. We aspire to sector leading employee
engagement and to offer a rewarding place to work. Innovation and digitisation are key enablers to help us achieve
our goals.
Of disappointment to both the Board and shareholders, is Steel & Tube’s share price. We recognise we need to deliver
improved financial performance and we are committed to doing so.
We are conscious that, like most other businesses in this post-COVID environment, there will still be challenges on the
road ahead. However, we believe Steel & Tube is well positioned to weather a range of forecast economic scenarios and,
importantly, to take advantage of the opportunities ahead of us.
Thank you for your continued support.
Susan Paterson Mark Malpass
Chair Chief Executive Officer

FY20 AT A GLANCE
FY20 SHAPSHOT
Normalised measures exclude non-trading adjustments
1

1
Normalised EBIT excludes non-trading adjustments of $58.1M, which includes non-cash goodwill impairment and other write-downs due to
acceleration of branch network changes, business restructuring and digitisation and the impact of COVID-19.
TRADING ENVIRONMENT
Softening vertical construction sector and stainless
sector activity, further impacted by COVID-19.
COVID-19
Impact of COVID-19 in the second half of FY20, with
sales down approximately 50% in March and April 2020
compared to prior comparative period (pcp). Post-
lockdown, trading was better than initially anticipated,
albeit with a greater mix of lower margin product, but
was not enough to offset the impact.
ONGOING INVESTMENT INTO DIGITAL
TECHNOLOGIES
Development of a range of customer engagement
technologies including chatbot, webshop and
ecommerce platform; and investment into digitisation
of workflow processes.
REALIGNED ORGANISATION
AROUND THE CUSTOMER
New segmentation tools including account
management structure and a centralised customer
experience centre. Delivered an improving customer
satisfaction score.
ORGANISATION OPTIMISATION
Reduced network to 28 locations, with headcount
reduction of up to 200 people to be completed in 1H21.
INCREASED COST EFFICIENCIES
Improved freight, procurement and direct labour
efficiencies resulting in lower costs to serve customers.
BENEFITS FROM DISCIPLINED
INVENTORY MANAGEMENT
Increasing levels of core stock availability and reduction
in the number of inventory items, with inventory down
to $101m as at year-end and product SKUs reduced by
one-third.
PRUDENT CAPITAL MANAGEMENT
Strong operating cashflows of $39.6m (pre-NZ IFRS16
$26.6m) with net cash at year-end of $7.4m. Agreed
covenant waivers and revised covenants for FY21, which
the company expects to comfortably meet.
SECURED SIGNIFICANT AMOUNT OF
NEW WORK
Major projects and longer term contracts from new and
existing customers.
CONTINUED FOCUS ON QUALITY,
HEALTH & SAFETY
Ongoing audit, testing and certification programme
implemented.
OUTLOOK
Cautious outlook with future economic environment
remaining uncertain and customer activity expected
to be constrained in a number of sectors, leading to
reduced revenues in FY21 and no final dividend for
FY20. Steel & Tube is well positioned to benefit from
Government investment in infrastructure and any
market uplift.
Revenue$417.9M
Earnings Before Interest And Tax ((EBIT)$(57.7)m
Normalised EBIT Excluding Non-Trading Adjustments
1
$0.4M | $(5.2)M pre-NZ IFRS16
Net Loss After Tax$(60.0)M
Operating Cash Flow$39.6M | $26.6M pre-NZ IFRS16
Borrowings$10.0M
Net Cash On Hand$ 7.4 M
7 Bruce Roderick Drive, East Tamaki, Auckland 2013, New Zealand
PO Box 58880, Botany, Auckland 2163, New Zealand. Ph: +64 4 570 5000 Fax:+64 4 570 2453
Email: info@steelandtube.co.nz Website: www.steelandtube.co.nz

---

STEEL & TUBE HOLDINGS LIMITED
2020
ANNUAL
REPORT

GAME ON.
From the floor under your feet, to the roof over your
head, and the nuts and bolts in between – we have
been involved in building New Zealand from the
ground up since 1953.
We are a proud New Zealand
company, locally owned by everyday
New Zealanders, and staffed with
passionate people who really care for
our customers and all we stand for.
Our team are the steel backbone
of our company. Passionate,
innovative, capable and proud

of what we do. We have expertise
right across the steel industry –
and thrive on helping our customers
to create better projects and build
better outcomes.
Like the rest of the country we have
been through the wringer in the
last six months as we have faced the
challenge of COVID-19 together.
But we have worked hard to come
out better positioned to create a
positive future.
Under our Project Strive programme,
we have created a stronger business.
Having laid the foundation, we are
now moving forward with a clear
strategy focused on making it easier
and more efficient for our customers
to do business with us, and driving
better performance from our assets
across the country.
We have strong governance, are
on a sound financial footing, have
an increasingly efficient business
model with stronger operational
disciplines, and a committed team
of people. We believe that we are
stronger when we work together
with our team, our customers, our
brands and our businesses.
On behalf of the Board and
Management, we are pleased to
present to you the Annual Report

for the 12 months ended 30 June 2020.
Mark Malpass
Chief Executive Officer
Susan Paterson
Chair
27 August 2020
STEEL & TUBE ANNUAL REPORT 2020

FY20 AT A GLANCE02
OUR RESPONSE TO COVID-1904
CEO AND CHAIR REVIEW06
OUR BUSINESS DIVISIONS10
LOOKING BACK16
MOVING FORWARD17
OUR STRATEGY18
WH AT M AT TE R S20
LEADERSHIP TEAM28
OUR BOARD30
FY20 FINANCIAL MEASURES EXPLAINED32
FIVE YEAR FINANCIAL PERFORMANCE34
FINANCIAL REVIEW35
FINANCIAL STATEMENTS36
INDEPENDENT AUDITOR'S REPORT84
GOVERNANCE92
DIRECTORY108
CONTENTS
01

TRADING
ENVIRONMENT
Softening vertical construction sector and stainless
sector activity, further impacted by COVID-19.
COVID -19
Impact of COVID-19 in the second half of FY20, with
sales down approximately 50% in March and April
2020 compared to prior comparative period (pcp).
Post-lockdown, trading was better than initially
anticipated, albeit with a greater mix of lower margin
product, but was not enough to offset the impact.
ONGOING
INVESTMENT
INTO DIGITAL
TECHNOLOGIES
Development of a range of customer engagement
technologies including chatbot, webshop and
ecommerce platform; and investment into
digitisation of workflow processes.
REALIGNED
ORGANISATION
AROUND THE
CUSTOMER
New segmentation tools including account
management structure and a centralised customer
experience centre. Delivered an improving
customer satisfaction score.
ORGANISATION
OPTIMISATION
Reduced network to 28 locations, with
headcount reduction of 150 to 200 people
to be completed in 1H21.
INCREASED COST
EFFICIENCIES
Improved freight, procurement and direct
labour efficiencies resulting in lower costs to
serve customers.
BENEFITS FROM
DISCIPLINED
INVENTORY
MANAGEMENT
Increasing levels of core stock availability and
reduction in the number of inventory items,
with inventory down to $101m as at year-end and
product SKUs reduced by one-third.
PRUDENT CAPITAL
MANAGEMENT
Strong operating cashflows of $39.6m (pre-NZ
IFRS16 $26.6m) with net cash at year-end of $7.4m.

Agreed covenant waivers and revised covenants
for FY21, which the company expects to
comfortably meet.
SECURED SIGNIFICANT
AMOUNT OF
NEW WORK
Major projects and longer term contracts from new
and existing customers.
CONTINUED
FOCUS ON
QUALITY, HEALTH
& SAFETY
Ongoing audit, testing and certification
programme implemented.
FY20 AT A GLANCE
OUTLOOK
Cautious outlook with future economic environment remaining uncertain and customer
activity expected to be constrained in a number of sectors, leading to reduced revenues
in FY21. In line with policy no final dividend has been declared for FY20. Steel & Tube
is well positioned to benefit from Government investment in infrastructure and any
market uplift.
02
STEEL & TUBE ANNUAL REPORT 2020

FY20 SNAPSHOT
Normalised measures exclude non-trading adjustments
1

Revenue$417.9M
Earnings Before Interest And Tax (EBIT) $ ( 5 7. 7 ) m
Normalised EBIT Excluding Non-Trading Adjustments
1
$0.4M | $(5.2)M pre-NZ IFRS16
Net Loss After Tax$ (60.0)M
Operating Cash Flow$39.6M | $26.6M pre-NZ IFRS16
Borrowings$10.0M
Cash On Hand$ 1 7. 4 M


1
1
2
1
2
1
3
7
3
2
2
2
1
28916
7. 3
2271
OUT OF 10 EMPLOYEE
ENGAGEMENT SCORE,
IN LINE WITH INDUSTRY
BENCHMARK
PRODUCT SKUS
TCO2E
3

GREENHOUSE

GAS EMISSIONS
BRANCHES
ACROSS
NEW ZEALAND
DOWN FROM 50 IN
2017 WHILST RETAINING
SALES PRESENCE AND SERVICE
45,000
STA F F
ACROSS OUR
ORGANISATION
SAFETY
TRIFR
2
4.86
1
Normalised EBIT excludes non-trading adjustments of $58.1M, which includes non-cash goodwill impairment and other write-downs due to
acceleration of branch network changes, business and the impact of COVID-19. Further details on non-trading items are included on pages 32 and 33
of this report.
2
Total Employee Recordable Injury Frequency Rate.
3
Tonnes of carbon dioxide equivalent as calculated by an independent third party.
03

The COVID-19 pandemic escalated in New Zealand in late March 2020, culminating
in a four-week lockdown period and then a staged re-opening in late April and May
2020. Management contingency planning commenced in March, with management
plans developed based on a range of scenarios from worst to best case.
The priority was to protect the health
& safety of our workers, and we rapidly
deployed working from home, social
distancing and safe trading protocols.
Our COVID-19 policies and protocols
were widely recognised and, following
requests, we shared these with
customers, suppliers and partners.
Along with daily Crisis Management
Team meetings, we communicated
with our teams through daily group-
wide emails from the CEO and regular
virtual team meetings, with our
approach ranked highly by staff in
our recent Employee Engagement
survey. While some staff, particularly
senior management, were busy during
the lockdown, other employees
were kept engaged with training and
other programmes. Board meetings
were held weekly and Management
utilised the lockdown period as an
opportunity to significantly advance
strategic work such as resizing of the
network.
Cash management was and
remains key, and action was taken
to further reduce our cost base,
including accelerating a resizing
of the organisation, reducing
capital expenditure, stopping all
non-essential spend and reducing
remuneration for the Board and senior
leadership team. We received wage
subsidy support of $6.6m from the
Government, which we passed on in
full to our employees, in accordance
with the Scheme. In addition, Board
and Management agreed that no short
term incentives would be paid for the
FY20 year regardless of performance
achievements. To ensure liquidity and
access to funding if needed through
this period, we negotiated waivers and
revised bank covenants for FY21 with
our banking partners.
In line with Steel & Tube’s focus
on digitisation, we worked with
technology company RFIDER to
create a system allowing for contact
tracing, recording health status and
providing streamlined access to sites.
Using a smartphone, staff and visitors
to a site could easily sign in/out and
provide relevant information without
any physical contact, long queues or
significant disruption. The solution was
deployed rapidly across Steel & Tube’s
network and was fully operational in
two days. Steel & Tube was one of the
first businesses in New Zealand to
introduce these robust measures and
a digital solution.
We would like to acknowledge and
thank our staff, suppliers, customers,
shareholders and other stakeholders
for their support during this period.
While our trading has been significantly
impacted by COVID-19, we have
emerged with a strong balance sheet
and a leaner and more cost effective
organisation structure. We were seeing
a good recovery in trading prior to
the latest COVID-19 restrictions across
New Zealand, with trading in June
and July stronger than we initially
anticipated. This was, in part, due
to pent up demand, however, we
have also seen some positive signs
of economic activity with a number
of new projects and longer term
contracts.
OUR RESPONSE
TO COVID -19
04
STEEL & TUBE ANNUAL REPORT 2020

OUR RESPONSE TO COVID-19

Contingency planning and precautionary
measures including development of contactless
tracing system that was shared within the
industry and with customers

Rapid deployment of working from home, social
distancing and safe trading protocols.

Priority on health & safety of staff and
customers.

During L4 lockdown, all sites closed except
where needed to supply essential services

Customers supported online and through safe
business trading

Prudent approach to capital management –
cancellation of FY20 dividend payments.

Received Government wage subsidy assistance
of $6.6m.

Reduction in Board and senior management
remuneration.

All non-essential capital and operating spend
cancemanagement Focus on cash generation.

Accelerated organisation restructure to right
size the business for the expected downturn in
economic activity
OUR RESPONSE
TO COVID -19
OUR RESPONSE TO COVID-19

Contingency planning and precautionary
measures including development of
contactless tracing system that was shared
within the industry and with customers

Rapid deployment of working from home,
social distancing and safe trading protocols

Priority on health & safety of staff and
customers

During L4 lockdown, all sites closed except
where needed to supply essential services

Customers supported online and through
safe business trading

Prudent approach to capital management –
cancellation of FY20 dividend payments

Received Government wage subsidy
assistance of $6.6m

Reduction in Board, senior management
and employee remuneration

All non-essential capital and operating
spend deferred. Focus on cash
management

Accelerated organisation restructure to
right size the business for the expected
downturn in economic activity
05

CHAIR AND
CEO’S REVIEW
06
STEEL & TUBE ANNUAL REPORT 2020

The FY20 year presented significant challenges and demonstrated the resilience of our
people and company in the face of both market adversity and the COVID-19 pandemic.
While a slowdown was being seen in some sectors prior to the level 4 lockdown, this
was accelerated further in the second half of the financial year as the pandemic took
hold, and we rapidly moved to adapt our organisation for a new environment.
Importantly, the work we have done
over the past two years as part
of our Strive programme is now
demonstrating its value. We have a
stronger financial platform, a more
efficient and leaner business and
are leading the steel industry in
digitisation and technology.
While economic forecasts for
the various sectors are mixed, all
indicators currently suggest there
will be a decline in economic activity
overall. We are continuing to adapt
our business to ensure we are best
positioned to not only survive but to
strengthen our competitive position
over this time.
To ensure our business is fit
for purpose, we accelerated an
organisational restructure including
branch consolidations. This had
the aim of maintaining local sales
presence and service while creating
a leaner business. In line with this,
we resized our workforce, requiring
some difficult decisions to let go of
a number of our team. These people
were valued employees and we are
doing all that we can to support
them through these changes. We
expect these changes to result in a
permanent reduction of 150 to 200
people (20% of our workforce) with
about 50% having already left the
organisation and the balance to leave
during the first half of FY21.
A key learning for many of us has been
the need to be flexible and adaptive.
We demonstrated this ability as we
quickly moved to working from home,
social distancing and safe trading
during the COVID-19 restrictions.

Since then, we have retained this
mindset and we continue to move
quickly to try out new ideas and
innovate, such as our chatbot, Stanley,
and online customer portal.
Customers will continue to need
a trusted supplier and partner to
deliver steel solutions which meet
their needs. Our geographic sales
strength, improved customer service
functions, accelerated investment in
digital capabilities and ecommerce
options for customers are a key
source of competitive advantage
for our company. In addition,
the Government is investing in
infrastructure and we have the
expertise and the proven experience
to deliver steel solutions on these
large scale projects.
We are positioning our company to be
customer focused and sales led, with
a lot of our recent efforts focused
around marketing, establishing a
centralised customer excellence
centre, sales training and utilising
technology to make it easier for our
customers to do business with us. We
are carefully measuring the impact
of these initiatives on customer
satisfaction goals and the success
rates of new projects and contracts
being won.
With the start of the FY21 financial
year, we have put in place a clear
strategy to guide our actions going
forward. This is detailed on pages
18 and 19 of this report. Our vision is
a successful company delivering an
acceptable return to its shareholders,
seen as the best in the sector, the
preferred choice for steel products
and solutions and a trusted partner
for our customers. We aspire to sector
leading employee engagement and
to offer a rewarding place to work.
However, we are conscious that, like
most other businesses in this post-
COVID environment, there will still be
challenges on the road ahead.
We continue to build on the good
work that has been done to create

a strong organisational platform.
Cost efficiencies, inventory
management and working capital
disciplines remain a priority.
Innovation and digitisation are key
enablers to help us achieve our
goals. This has been an important
area of investment over the last 12 to
18 months and we have accelerated
our plans to create a digitally smart
and efficient business as part of our
business strategy.
Finally, we continue to invest in
our staff, to develop their talents,
recognise their efforts and
contributions, celebrate and support
diversity, encourage flexibility and
empower them to add more customer
value. We have also continued
to support our communities,
with scholarships and mentoring
programmes that support people's
ambitions.
07

FY20 FINANCIAL
RESULTS
The COVID-19 pandemic had a
significant impact on FY20 results
and accelerated an already softening
trading environment. The level 4
lockdown and progressive return
to business occurred during a
traditionally high earning period for
our business, with a significant impact
in April and May. Post lockdown, sales
recovered through May, and in June
were in line with the prior year.
This followed on from a challenging
first half year, with adverse market
conditions, in particular reduced
vertical construction work and
a contraction in the stainless
steel market, impacting on sales
revenue and volumes. A number of
restructuring costs were incurred in
both the first and second half years, as
well as doubtful debt provisioning and
write offs.
Consequently, our results for FY20
are disappointing with the significant
structural improvements made
to the business offset by reduced
revenue and earnings, as well as non-
cash impairments and write-downs
impacting on our bottom line.
As required by accounting standards,
we test goodwill and asset values on
an annual basis and, where required,
reduce (“impair”) the carrying
values of those assets. This is a non-
cash adjustment. In addition to the
impairment recognised in the first half
of the year, the Board has concluded
further impairments are required due
to the acceleration of branch network
changes and digital investment in
response to the forecast economic
recession.
We have written down the book
value of some assets, including right-
of-use lease assets and property,
plant and equipment on sites the
business has chosen to consolidate
or exit, and the investment in the
AX enterprise software platform.
Whilst the AX platform remains a
core business tool that underpins our
digital strategies, as the business has
accelerated investment in new digital
initiatives and technologies, this is
making some of the AX functionality
obsolete. Our ongoing investment
in digital initiatives is expected to be
a key contributor to improving the
financial performance of the business
through reduced cost to serve and
ease for customers ordering outside
of business hours.
Despite the difficulties faced in the
second half, Steel & Tube’s balance
sheet is strong, with net cash of $7.4m
as at 30 June 2020. We delivered
robust operating cashflows of $39.6m
(pre-NZ IFRS16 $26.6m) for the year
ended 30 June 2020 and reduced
borrowings to $10m. Post-balance
date, we completed the sale of a
surplus Gisborne property with net
proceeds of $1.4m to be applied to
further reducing borrowings.
Pleasingly, this balance sheet strength,
reflecting working capital and capital
management discipline, means
we are now well positioned in the
marketplace. Given the uncertainty
and volatility of the COVID-19
environment, preservation of cash
is essential and the Board made
the difficult decisions to cancel the
interim dividend and not declare a
final dividend.
Our margins were showing
improvement pre-COVID-19 and
whilst post-COVID they have been
lower, our priority remains to grow
margins as quickly as possible.
Our strategic focus on a leaner
organisational structure and digital
investment will help in this area.
Operating costs have been held flat
versus prior year in real terms. The
business absorbed an increase in IT
and Digital costs of $1.1m to support
improved service delivery, and
also a significant $2.7m increase in
provisions for bad and doubtful debts.
These increases were mostly offset by
a $0.7m reduction in employee costs
and other efficiencies of $2.2m.
A snapshot of the financial results
is provided on page 3 with further
commentary on our financial
measures on pages 32 and 33 and
in the FY20 financial statements.
Additional information on our FY20
performance has also been provided
in the Results Presentation which was
provided to the NZX.
While our headline result was not as
we would have liked, we are satisfied
at how our company and our people
have come through this challenging
period.
We remain proud of our people and
their diligence and efforts over the
past year, with many coping with the
personal challenges of COVID-19 while
continuing to give 100% to their roles
within our company.
08
STEEL & TUBE ANNUAL REPORT 2020

DIVISION
REVIEW
Our organisation is structured into
two divisions, with strong brands
and businesses in each. We have a
wide reach across the country and
touch all of New Zealand, supporting
everyone from local builders to the
largest infrastructure providers. We
provide a wide range of products and
bring together a nationwide team
with a depth of experience and broad
capability under one roof.
In Distribution, products are sourced
from preferred steel mills and
distributed through our national
network of branches. This is a lower
margin and higher volume business
and has been significantly impacted
by the market segment contraction
and pricing pressure over the past
two years. Pleasingly, Project Strive
initiatives have seen improvements
being made, with firming market
share, and growing revenues and
margins pre-COVID, as well as a
reducing cost base.
In Infrastructure we have continued
to win key project work with our
quality and service offering. Our
metal decking team, supported by our
market leading ComFlor products, has
a strong market offering, albeit the
softening in vertical construction has
impacted on revenues in FY20. Our
Roll Forming business is a key supplier
of roofing products and has recently
won long term supply contracts with
Kainga Ora. Our reinforcing business
also continues to build a solid pipeline
of infrastructure and civil work.
Both divisions are recovering well and
were back to near-normal levels in the
month of June with a solid pipeline of
work expected for Q1 FY21.
Further detail on operational
performance is provided in the Division
Review section on pages 10 to 15.
OUTLOOK
The economic environment remains
uncertain with the continuing
slowdown in some areas such as
commercial and residential housing,
pre-election uncertainty, and reduced
business confidence post-COVID.
While trading has been solid for us in
June and July, we expect there will
be some deterioration in economic
conditions later in the year and into
2H FY21. The latest restrictions in
Auckland and around New Zealand are
a continuing reminder of the volatility
and unpredictability of the COVID
environment.
With this uncertainty and expectations
of an economic recession, we are
taking a careful and prudent approach
to the management of our business.
Our strong balance sheet will stand us
in good stead during this period and
our strategy sets out a pathway that
builds on our competitive advantage.
Of disappointment to both the
Board and shareholders, is Steel &
Tube’s share price. We recognise
we need to deliver improved
financial performance, which we are
committed to doing.
We start the new financial year with
a strong balance sheet and a leaner
cost structure. Our investment in
digital technology continues and is
supporting our move to a service
model that combines ease of access
and customer service. Steel & Tube
is well positioned to weather a range
of forecast economic scenarios and,
importantly, to take advantage of the
opportunities ahead of us.
We look forward to welcoming
shareholders to our Annual Meeting
in October and updating you on our
progress at that time.
Thank you for your continued
support.
Mark Malpass | Chief Executive Officer
Susan Paterson | Chair
09

DISTRIBUTION
$mFY20FY19
Revenue248.02 8 7. 7
Normalised EBIT
1
(0. 2)2 .9
Normalised EBIT Pre-NZ IFRS16
1
(3 .4)2 .9
EBIT(29.9)2 .9
STAINLESS STEELFASTENINGSRURAL PRODUCTS
CHAIN & RIGGINGPIPING SYSTEMS
STEEL
OUR BUSINESS DIVISIONS
1
Normalised EBIT excludes non-trading adjustments of $29.8M. Further details on
non-trading items are included on pages 32 and 33 of this report.
10
STEEL & TUBE ANNUAL REPORT 2020

In Distribution, products are sourced from preferred, quality audited steel mills
and distributed through our national network of branches. This is a lower margin
and higher volume business and has been significantly impacted by the market
segment contraction and competitive pricing pressure over the past two years.
Project Strive initiatives have delivered
benefits with operating expenses
continuing to decrease, improving
margins, a reduction in other direct
sales costs and improved inventory
management.
Pre-COVID, gross margin was
growing, despite competitive market
conditions. Revenue was significantly
impacted by the COVID-19 shutdown
but was recovering to near-normal
levels by year-end. Whilst sales
recovered post-shutdown, a different
product mix impacted on margins.
The work undertaken around freight
efficiencies has led to improved
freight recoveries and reduced costs,
and more efficient management
of product movement around the
country. Following a tender process,
a new provider of shipping and
international freight services has been
appointed and further efficiencies are
expected to be realised throughout
the FY21 year.
The longer term network optimisation
strategy has been accelerated by

COVID-19, with eight site consolidations
completed during FY20.
These have enabled us to better
integrate our product offerings while
still providing national geographic
coverage to our customers, including
local representation. For example,
a new Fortress fasteners store was
added to the existing East Tamaki site
in response to demand in the East
Auckland fasteners market.
Pleasingly, the focus on customer
service and delivery in full, on
time and in specification (DIFOTIS)
has seen an increase in customer
satisfaction levels. A new customer
experience team has been established
to provide customers with regional
and product specialisation. Alongside
the introduction of new digital
customer portals, this is expected
to provide further improvements in
customer service and improve ease of
access for customers.
$mFY20FY19
Revenue248.02 8 7. 7
Normalised EBIT
1
(0. 2)2 .9
Normalised EBIT Pre-NZ IFRS16
1
(3 .4)2 .9
EBIT(29.9)2 .9
11

INFRASTRUCTURE
OUR BUSINESS DIVISIONS
CFDLPURLINSCOMFLOR
REINFORCINGCOIL PROCESSING
ROOFING
ROLL FORMINGREO/CFDL
$mFY20FY19
Revenue 170.0209.4
Normalised EBIT
1
0.511.9
Normalised EBIT Pre-NZ IFRS16
1
(1.8)11.9
EBIT(26.1)11.9
1
Normalised EBIT excludes non-trading adjustments of $26.5M. Further details on
non-trading items are included on pages 32 and 33 of this report.
12
STEEL & TUBE ANNUAL REPORT 2020

In Infrastructure, products are typically made to order on a project basis and
often include onsite installation services, either performed by us or contractors.
The division comprises two business units – CFDL/REO and Roll Forming.
CFDL/REO
The Infrastructure division is mainly
focused on project work. In FY20, the
division was affected by the softening
in the vertical construction market.
Building and maintaining a pipeline
of future work is important, with
sales activity and successful contract
negotiations sometimes taking
months, if not years. A restructure
during 2020 moved the sales focus
from a local to a national level,
providing greater access to the breadth
of expertise and experience across the
national team. In addition, the CFDL
composite floor decking business and
the Reinforcing (REO) businesses were
bought together to provide customers
with easy access to a multiple product
solution with a single point of contact
for project delivery.
With a strong focus on sales and
providing clients with solutions that
will deliver safety, programme and
cost savings, a significant future
pipeline of work has now been
developed. Many of these new
projects have been secured on the
back of solutions that differentiate
us from our competitors, such as the
ability to supply multiple products and
services, or innovative solutions which
respond to customers’ needs.
A significant operational project
during the year was the consolidation
of all mesh manufacturing into one
location providing product nationally.
This has resulted in increased
production volumes and reduced
costs. Whilst COVID is expected to
lead to a reduction in mesh demand,
we are well positioned to service
the national market, with a flexible
labour force that can now be moved
between reinforcing and mesh
manufacturing as demand dictates.
Composite metal/concrete flooring
systems are well regarded and utilised
in the multi-level construction market.
The decline in the vertical construction
market was felt by CFDL in FY19
and continued into FY20. However,
through the bringing together of the
CFDL and Reinforcing businesses, cost
and operational efficiencies and a
reduction in waste have been realised.
This is a work in progress and in FY21
our focus is on the improvement of
our manufacturing and installation
operations to reduce costs, increase
efficiencies and improve customer
service and ease of access.
$mFY20FY19
Revenue 170.0209.4
Normalised EBIT
1
0.511.9
Normalised EBIT Pre-NZ IFRS16
1
(1.8)11.9
EBIT(26.1)11.9
ROLL FORMING
As with CFDL/REO the focus
for the year was on operational
improvements, with much of this work
completed or near to completion.
Key initiatives were focused on
sales and freight optimisation,
establishment of a new national
organisation structure, and initial
planning for a move to a dedicated
customer experience centre, which
will provide improved services for Roll
Forming customers. These initiatives
will see improvements in all areas
of the business and particularly in
manufacturing and sales.
In FY20 our freight project was
focused on the Auckland/Waikato/
Bay of Plenty triangle and Auckland-
Whangarei routes. Route optimisation
was undertaken and re-tendering
is nearly complete. The benefit of
reduced freight costs will be seen
from FY21 onwards.
Consolidation of coil cut-to-length
operations into Auckland has also
allowed a smooth transition for the
standard sheeting business to be
moved into the Distribution division.
This move has also enabled releasing
of further space for sub-leasing at our
Christchurch property.
A four-year roofing maintenance
contract was secured with Kainga Ora,
commencing on 1 July 2020. A key
factor in the successful win was Steel &
Tube’s online customer portal, which
allows Kainga Ora to easily place their
roofing orders, along with a range
of other functions to meet reporting
requirements.
Sustainable building practices
have also been a focus and the
Roll Forming Roofing business was
recently awarded the Environmental
Choice accreditation for all branches.
This is important for our work with
Kainga Ora and will assist in achieving
Homestar requirements.
13

Steel & Tube was selected by
Southbase Construction as a key
subcontractor on the construction of
Massey University’s new Innovation
Complex, a $120 million state of the
art development, located in the heart
of the Massey campus in Auckland.
The 9,800sqm teaching and research
facility will be home to Massey’s
science, innovation and research
centre and will be a collaborative
working space to connect the
University with industry and the local
community.
Steel & Tube is providing reinforcing
and flooring for the development, with
more than 700 tonnes of reinforcing
and 6,600sqm of Comflor metal
decking. The project commenced in
February 2020 with the pre-fabrication
of steel beams and is expected to be
completed in 2021.
National product and sales manager
for Steel & Tube, Peter Reiber said: “A
key ingredient in securing the contract
with Southbase was our ability to
provide a combined Reinforcing and
ComFlor solution, with a single point
of contact for the overall management
and coordination.”
The Southbase team commented:
“The Massey project brings many
challenges, particularly between
structural steel and concrete.
Together, through good partnering
and planning, Southbase Construction
and Steel & Tube are meeting these
challenges with great success”.
CASE STUDIES
MASSEY UNIVERSITY
INNOVATION COMPLEX
14
STEEL & TUBE ANNUAL REPORT 2020

The attractive wide runs of Steel &
Tube’s commercial roofing profile,
ST963, have also made it a winner with
residential home owners and builders.
One of the largest residential
customers to date has been the
Bullendale Alpine Village at Arthurs
Point in Queenstown. Bullendale is
a master-planned mountain village
currently under development
at the base of Coronet Peak in
Central Otago and offers a range of
architectural designed alpines homes
and apartments. With consent for
88 dwellings, Bullendale has recently
completed its 60th home, with all
roofs utilising Steel & Tubes 963 long
run profile.
Bullendale developer, Shane Fairmaid,
says “What really appealed was the
strong architectural lines offered by
the ST963 product which provided
a robust, strong and cost effective
roofing solution, ideally suited to
withstand Arthurs Point’s unforgiving
alpine weather. We’ve had a lot of
really positive comments regarding
the Bullendale aesthetic and are very
happy with our decision to use Steel &
Tube’s ST963. It’s a great product that
ticks a lot of boxes.”
QUEENSTOWN’S BULLENDALE
ALPINE VILLAGE CHOOSES NEW
STEEL & TUBE ROOFING PROFILE
15

The Strive turnaround programme commenced in FY18, with the
aim to reset our cost base and rebuild our competitive advantage.
At the time Project Strive commenced,
Steel & Tube was at the end of a
programme of business acquisitions
and capital upgrade of facilities
around the country. Debt was high at
$110m and there were historical issues
with inventories and deterioration
of heritage businesses. The
implementation of the new AX ERP
software platform was encountering
serious issues which were impacting
trading. In addition, due to the
changing political environment for
irrigation, the outlook for the Plastics
business was bleak.
Over the past two years, the Board
and Management team have taken
actions to re-set the company
including a $80.9m capital raising
to reduce debt and strengthen
the balance sheet, the exit from
the Plastics business, a reduction
in the property footprint from
50 to 28 facilities, streamlining of
the organisation structure, and
substantially improved working capital
management, quality, health and
safety performance and employee
engagement. Every person in the
company has been focused on
building a stronger company under
our Strive pillars, and significant work
has been achieved.
Steel & Tube is now in a much better
position to weather the COVID-19
environment and take advantage of
opportunities ahead of us. We are
excited about the next phase of our
strategy and where we can take our
company from here.

LOOKING
BACK.
OUR PROGRESS
UNDER PROJECT
STRIVE
KEY INITIATIVES EXECUTED
UNDER PROJECT STRIVE

Group-wide update to ISO 9001: 2015 quality
certification

Independent assessment and audits of steel
mills by Lloyds Register

Traceability enhancements including barcode
scanning

Sales account alignment, management and
sales excellence programme

Product investment growth

Customer loyalty and value growth

Call centre activation

Ecommerce and digital initiatives

Supply chain improvements

Operational excellence and efficiency

Freight efficiencies

Facility footprint consolidation

Employee engagement and development

Providing a rewarding workplace
16
STEEL–&–TUBE ANNUAL REPORT 2020

MOVING
FORWARD.
STRONGER
TOGETHER.
We are moving forward with a clear strategy that will guide our actions
over the next three years. Each of our five pathways focused on an area of
business which is critical to our success and our goal of being a company that
is delivering an acceptable return to its shareholders, is seen as the best in
the sector, the preferred choice for steel products and solutions and a trusted
partner for our customers, as well as a rewarding place to work.
Our customers remain at the
fore of all we do and our focus
is on providing new and better
ways to deliver information,
expertise, purchasing options
and communication channels
that make it easy for them to
do business with us. In line with
this, we will leverage our breadth
of expertise and wide-range of
quality products and strong brands
which meet the needs of our
customers from the ‘ground up’.
Equally important is ensuring we
have an efficient and productive
business that delivers value to all
our stakeholders, including our
shareholders. While a significant
amount of work has been
completed to deliver operational
and supply chain excellence, we
continue to improve operational
disciplines and excellence in
customer service.
Innovation, digitisation and
technology are key enablers for
our strategy and will remain an
important investment area for
us. Our work in this area has
accelerated with the onset of
COVID-19, with a pipeline of future
initiatives underway.
‘Stronger Together’ embodies our
strategy to effectively bring our
staff and business units together
in pursuit of a common purpose –
and aligns our services, expertise
and products to provide the best
possible support to our customers
and partners.
17

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Making it Easy
Delivering the
information, expertise,
purchasing options
and communication
channels that make it
easy for our customers

OUR PURPOSE
To make life easier for our customers needing
steel product and service solutions.

OUR VISION
To provide unparalleled customer service and
experience.

OUR GOAL
To position Steel & Tube as the best in the
sector, the preferred choice for steel products
and solutions and a trusted partner for
our customers
OUR
STRATEGY
18
STEEL & TUBE ANNUAL REPORT 2020

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Full Service
Provider
Leveraging our breadth
of expertise, quality
products and strong
brands to deliver a
‘ground up’ solution for
our customers
Better Ways
of Working
Continually improving
to ensure an efficient
and effective
operational platform,
with strong operational
discipline and excellent
customer service
O n e Te a m
Aligning our staff
and our businesses
behind a common
purpose , investing
in staff development,
recognising and
growing their talents
and contributions and
empowering them to
add more customer
value
Innovation &
Technology
Embracing new
technology and
continually innovating
to deliver on our
customer and partner
strategies – and drive
greater efficiency in our
business
19

At Steel & Tube, we have a commitment to ensuring that we add value for all our
stakeholders, from our shareholders to our staff and the communities we operate
in, as well as reducing the environmental impact of our activities. We believe it
is our corporate responsibility to ensure we play our part in making the world a
better place.
In line with this, over the last year
we have advanced our approach
to ESG – environmental, social and
governance principles – which we
believe will enhance our company
and support our growth.
As part of our process, we
undertook workshops and
interviews with internal and external
stakeholders to identify topics that
were material for Steel & Tube. Key
topics were identified and these
form the basis of our Sustainability
framework. We have set Key
Performance Indicators (KPIs) for
each of these topics and these are
reported on internally, at least
quarterly. These key topics have
been aligned with our four strategic
pillars which we believe are essential
for the long term sustainability of
our company and support our social
licence to operate.
We believe a strong ESG
proposition will benefit not only
the communities within which
we operate but, importantly, the
business by supporting revenue
growth, cost efficiencies, reduced
regulatory and legal interventions,
an uplift in employee productivity
and optimisation of our investments
and assets.
We take our responsibilities and
commitment to our staff, our
shareholders, our suppliers and
customers seriously and every
member of our Steel & Tube team
has a responsibility to uphold our
values and be accountable for their
actions.
In this ‘What Matters’ section and
elsewhere in this Annual Report,
we comment on economic,
environmental, social and
governance topics that we believe
are material to our business and our
stakeholders.
W H AT
MATTERS
STRATEGIC PILLARMATERIAL TOPIC
Commitment to
Safety and Quality
Occupational Health & Safety
High Quality Products and Services
Operational and
Supply Chain Excellence
Financial Performance and Corporate Governance
Material Efficiency and Recycling
Energy and Carbon
Putting the Customer at
the Heart of the Business
Customer Satisfaction
Product Life Cycle Performance
Supporting a
winning team
Talent Attraction and Retention
People Development and Labour Practices
Culture of Wellbeing
STEEL & TUBE ANNUAL REPORT 2020
20

COMMITMENT TO
SAFETY AND QUALITY
OCCUPATIONAL HEALTH AND SAFETY
As an employer of over 900 people
across manufacturing, installation,
logistics, management and support
roles, we have a fundamental
responsibility to provide a safe
and healthy work environment for
everyone. Ensuring Steel & Tube
employees and contractors go home
safely every day is our first priority.
We have a dedicated team to support
this and encourage a ‘speak up’
culture that helps identify areas for
improvement.
The company’s focus on health &
safety is led from the top, with health
& safety committees at every level of
the organisation (see the table below).
The Board’s QHSE Committee
regularly visits the company’s sites
to review health and safety in the
workplace and engage directly with
staff on health and safety matters. The
Committee receives regular reports
on quality processes and compliance
with standards. An update on QHSE
is also provided by the CEO at each
Board meeting.
Regular comprehensive health and
safety reports from management are
reviewed by the QHSE Committee.
The reports cover progress on QHSE
strategic initiatives, risk management,
lead and lag indicator performance,
reviews of any injury incident
investigations and high potential

near-misses.
High potential risk incidents are also
recorded and investigated through a
rigorous dig-deeper process involving
the CEO, Line Management and the
individual involved in the incident to
identify root causes and to eliminate
potential risks.
Employee involvement is a key
component of the company’s risk
management framework.
A company-wide health and safety
statistics report is published monthly
and it is analysed to identify lead
and lag indicators trending at
group, divisional and area levels.
This information enables quality
decision making when interventions
are required and it signals the high
priority placed on the importance of a
strong safety culture.
Recently, Steel & Tube completed a
Peakon employee survey with almost
80% of the organisation completing
the survey. There were two key health
and safety questions which provide
a good indicator of safety culture.
Steel & Tube scored 8.8 out of 10 for
first question “is this organisation
is committed to providing a safe
working environment”, and 8.6 out
of 10 for the second question “the
person I report to demonstrates
commitment to my safety in the
workplace”.
The Board of Directors, Management
and all staff actively review hazards
and complete Behavioural Safety
Observations and Critical Risk reviews.
A rigorous training schedule ensures
all job specific training requirements
are adhered to.
ROLE RESPONSIBILITIES
Board QHSE
Committee
Oversight of the company’s adherence to Quality, Health, Safety and Environment
(QHSE) processes and protocols.
Company QHSE
Committee
Chaired by the CEO. Recommends policy and oversees resource allocation and
progress against yearly action plans.
Operational
QHSE
Committee
Comprised of the company’s GM QHSE and operational managers throughout
the organisation, responsible for validating new health, safety, environment and
quality policies, initiatives and actions from a workplace perspective. Additionally,
this committee interacts with the businesses and advises the QHSE Committee on
operational issues that have the potential to impact health and safety.
Workplace
QHSE
Committees
Representatives from all work groups within an operational facility, including
elected representatives. These facility-based Committees have responsibility for
ensuring site compliance with the company’s QHSE Policies and are responsible for
day-to-day health and safety at their facility.
21

Following a strong improvement in
Employee Total Recordable Injury
Frequency Rate (TRIFR) over the last
five years, we saw a slight increase
in FY20 to 4.86, although we remain
below comparable benchmarks. All
recordable injuries were investigated
through the Dig Deeper process
and highlighted opportunities for
improved process application and
training.
Product risk classification
Automated annual review process
Automated receipt and processing of NZ Steel
Test Certificates
Business best practice processes
(i.e. receipting and quarantine)
Traceability dashboard and reporting to
measure compliance
Digitisation to allow easy searching and
matching of test certificates to products in AX
ERP system
Implementing test certificate electronic
availability to customers, with test certificates
to be automatically sent with sales orders
EMPLOYEE TOTAL RECORDABLE INJURY FREQUENCY RATE
HIGH QUALITY PRODUCTS AND SERVICES
Our products are used from the
ground up to build strong buildings
and infrastructure across New
Zealand. Therefore, it is essential
that our products are of the highest
quality. Our aim is to be the preferred
New Zealand supplier for steel
products and solutions and our
expert people play an important role
in that, sharing their knowledge and
experience with our customers.
We completed ISO 9001:2015 quality
certification for the majority of
our businesses in FY20, with the
remainder expected to be completed
in FY21. This demonstrates our
commitment to meeting our
customer and stakeholder’s needs
and expectations through quality and
continual improvement.
We have also contracted Lloyds
Register to perform an assessment of
our key international and domestic
suppliers. This commenced in 2018,
with 17 mills audited since this time
and plans for an additional 12 mills to
be audited in FY21.
We are refreshing our Fair Trading Act
(FTA) compliance activities through
our FTA compliance programme.
This involves regularly reviewing
and verifying product catalogue
information and test certificates, a
supplier approval process and audit
programme, independent product
sample testing for high risk products
and staff training.
12
10
8
6
4
2
0
FY16FY17FY18FY19FY20
TR ACEABILITY
ENHANCEMENTS
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STEEL & TUBE ANNUAL REPORT 2020

Training is a large part of Steel & Tube’s safety
programme, from orientation and onboarding of new
employees through to regular on the job training.
Individuals operating machinery are taken through a
detailed process that culminates in a demonstration
of knowledge before any machinery can be operated.
Specialised training programmes are also provided
by accredited third parties, such as forklift and crane
training.
This year, Steel & Tube was proud to collaborate
with Marsella and Wiremu Edmonds (Tuakiri Ltd) to
improve safety culture across the organisation. Staff,
contractors and suppliers nationally were invited to
hear a powerful presentation on leadership and safe
workplace practice from Marsella and Wiremu, the
bereaved parents of Robert Ruri-Epapara who was
killed in a forestry accident in 2013.
The Stand-in-the-Gap presentation was born out of a
strong desire not to let any other family suffer in the
same way. The brave couple take the audience through
the events and prevailing attitudes that led to the
short cuts taken on that fateful day. They challenge
their audience to Stand in the Gap – to speak up
when they see colleagues and leaders circumventing
procedures or taking short cuts that could lead to
compromising safety. The message is that health and
safety is everyone’s responsibility from leaders down
to the newest staff member.
For many attendees, this was one of the most powerful
presentations they had seen and the lessons learnt will
stay with them forever.
STAND IN
THE GAP
23

OPERATIONAL AND
SUPPLY CHAIN EXCELLENCE
Having an excellent operations and supply chain is essential to achieving our goals.
This means suppliers providing us with high quality products at good prices.

It also means disciplined warehouse operations to deliver products to all our
customers in full and on time and within specification.
518,769 ltrs5.4m KWH2271 tCO2e
FUEL
CONSUMED
ELECTRICITY
CONSUMED
TOTAL
GREENHOUSE
GAS EMISSIONS
ENERGY AND CARBON
Like many businesses, our operations
consume carbon and energy. We
started our journey in FY20 by
measuring our consumption and this
sets the benchmark against which we
can measure our improvements in
future years.
Greenhouse gas emissions are
measured in tonnes of carbon dioxide

equivalents (tCO2e). At Steel & Tube,
we have measured our greenhouse
gas emissions in line with international
protocols and standards. The reporting
processes are in accordance with
Greenhouse Gas Protocol and we have
included all material emissions under
scope 1&2, with our reporting of scope
3 emissions limited to category 6 which
covers business travel.
Following the alert level 4 shut-
down we have supported increased
flexibility for our staff, enabling more
working from home. This, in turn, is
reducing the transport emissions with
less days spent traveling to and from
our sites.
MATERIAL EFFICIENCY AND RECYCLING
We are conscious that our operations
have an impact on the environment
and are undertaking initiatives
designed to help reduce this. We
believe that our focus in this area will
not only be better for our planet and
our communities but will also increase
the efficiency of our business and
deliver financial benefits.
In particular, we are focussed on
reducing steel wastage, which occurs
due to over specification, unplanned
ordering or delivery practices.

We are collecting data which will
allow us to introduce targeted
initiatives to reduce waste.
FINANCIAL PERFORMANCE AND CORPORATE GOVERNANCE
Corporate governance at Steel &
Tube is predicated on high standards
of ethics and performance and is
achieved through robust governance
polices, practices and processes to
ensure compliance with statutory
requirements and the NZX Listing
Rules. A summary of Steel & Tube’s
governance actions and performance
against each of the principles in the
NZX Corporate Governance Code can
be found on pages 92 to 98.
A primary objective for the Board
is to deliver sustainable value for
shareholders. We are conscious that
returns have been lower than desired
for the past few years and lifting value
for shareholders is a priority for the
Board and Management.
Disclosure of our financial
performance can be found in the
results overview section on page
34 and in Steel & Tube’s financial
statements on pages 36 to 83.
Management remuneration is linked
to performance and achievement
of business objectives, with details
provided in our Remuneration Report
on pages 99 to 102.
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STEEL & TUBE ANNUAL REPORT 2020