2020 Annual Shareholder Meeting Presentation and Speeches

2020 ANNUAL
SHAREHOLDERS’
MEETING
1 October 2020

BOARD
Steve Reindler
Independent Director
Appointed Oct 2017
Anne Urlwin
Independent Director
Appointed June 2013
Retiring at today’s ASM
Susan Paterson
Independent Chair
Appointed Jan 2017
Christopher Ellis
Independent Director,
Appointed Oct 2017
John Beveridge
Independent Director
Appointed August 2019

BOARD SKILLS MATRIX
0
1
2
3
4
5
Sales, marketing and brand
Digital technology and change
Business turnaround
Logistics & supply chain
Governance
Commercial
Financial Acumen
M&A
HSQET
People & culture
Steel industry
Manufacturing
Construction/Infrastructure
Number of Directors
Strong
Moderate
3
Strong: Could chair a subcommittee of an NZX 50 listed company in this field
Moderate: Valuable committee member or contribution to the Board from past experience in the area
STRATEGY SKILLSCORE COMPETENCIES
INDUSTRY
KNOWLEDGE

CHAIR’S
PRESENTATION

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
5
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

PRIORITIES IN RESPONSE TO THE COVID-19 PANDEMIC
•During L4 lockdown, all sites closed except where needed to supply essential services
•Implemented protocols to keep staff and customers safe
•Customers supported online and through safe business trading
•Contingency planning and financial modelling under various scenarios
•Development of contactless tracing system, shared with industry and customers
•Prudent approach to capital management including amendment of banking covenants
•All non-essential capital and operating spend cancelled or deferred
•Considerable COVID-19 impact on financial performance in March and April; sales recovered
through May, since June have been trading close to prior year.
6

FY20 SNAPSHOT
•
Challenging 1H20, with adverse market conditions impacting on sales revenue and volumes.
•
Significant impact from COVID-19 on 2H20 results -offsetting some of the promising market
improvements being seen.
•
Acceleration of branch restructuring and digitisationin response to anticipated post COVID-
19 market conditions.
•
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, with further improvements
since year-end.
•Cancellation of interim dividend and no FY20 final dividend declared.
7

IT’S GAME ON
We believe that we are stronger when we
work together, with our team, our
customers, our brands and our
businesses.
We are 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.

POSITIONED FOR FUTURE GROWTH
9
COMMITMENT TO QUALITY,
HEALTH AND SAFETY
▪Occupational Health & Safety
▪High quality products and
services
PUTTING THE CUSTOMER AT THE
HEART OF OUR BUSINESS
▪Customer satisfaction
▪Product life cycle performance
▪Accelerating digital transition
OPERATIONAL AND SUPPLY CHAIN
EXCELLENCE
▪Financial performance and
corporate governance
▪Material efficiency and recycling
▪Energy and carbon use
SUPPORTING A WINNING TEAM
▪Talent attraction and retention
▪People development and labour
practices
▪Culture of wellbeing
Our four pillars are fundamental for our business and underpin all that we do.

CEO’S
PRESENTATION

Mark Malpass
Chief Executive Officer
MANAGEMENT TEAM
Marc Hainen
GM Distribution
Mohammed Afroz
GM Roll Forming
David McGregor
GM Reinforcing & Wire
OPERATIONAL MANAGEMENT
BUSINESSMANAGEMENT
Damian Miller
GM Quality, Health,
Safety, Environment
Greg Smith
Chief Financial Officer
Anna Morris
GM People & Culture
Mike Hendry
Chief Digital Officer

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
12

SECTOR EXPOSURE
13
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%

MARKET CONDITIONS
14
Reduced vertical construction activity and softer stainless market impacted on revenues and margin
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
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Aug-18Aug-19Aug-20
PERFORMANCE OF MANUFACTURING INDEX
(PMI)
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
Current YearPrior Year
2,000
2,500
3,000
3,500
4,000
# Consets
RESIDENTIAL CONSENTS
Current YearPrior Year

FY20 AT A GLANCE
15
RESULTS IMPACTED BY
TRADING CONDITIONS
AND COVID-19
STRONG
CASHFLOW
GENERATION
$39.6M
REVENUE $417.9M
NET CASH AT Y/E
$7.4M
NON-TRADING
ADJUSTMENTS
$(58.1)M
NLAT
$(60.0)M
NORMALISED EBIT
1
$0.4M
$(5.2)M PRE IFRS 16
INVENTORY
REDUCED TO
$101M
Trading environment: Softening vertical
construction sector and stainless sector activity,
further impacted by COVID-19 in 2H20.
Key Initiatives: Ongoing investment into digital
technologies, realigned organisation around the
customer, increased cost efficiencies; benefits
from disciplined inventory management;
continuing network optimisation, continued focus
on quality, health and safety.
Prudent capital management and further reduced
borrowings: Agreed covenant waivers and revised
covenants for FY21.
Secured significant amount of new work, strong
recovery post COVID-19 lockdown
1.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.
FY20 includes impact from adoption of new lease
accounting standard (IFRS 16)

STRATEGIC RESPONSE TO ‘NEW NORMAL’
16
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).
*excludes $46.1m impairment on intangibles and
$0.7m holiday pay provision

NETWORK STRATEGY
17
Network consolidation programme coming to an end while maintaining a regional presence and increased
product offering
Annual Lease
Cost ($m)
$18.4*$15.4$15.2**
•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

800
1062
1007
916
874
830
750
850
950
1050
Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20
FTES
LabourForecast
Contingency reduction in labourLabour at budgeted revene
Dec-20
BENEFITS FROM ORGANISATION RESTRUCTURING
18
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 have reduced to 874 as at 30
September
•FTEs expected to reduce to 830 by 31
December, witha 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

ALIGNING OUR BUSINESS WITH OUR CUSTOMER
•Technology, digitisation and use of data
are key enablers for our customer strategy
•Net promoter score measures customer
satisfaction and has risen strongly since
2018
•Net Promoter Score of 30 as at end-August
2020
19
NET PROMOTER SCORE

LEADING THE WAY IN DIGITAL TECHNOLOGIES
STANLEY CHATBOT
•AI Assisted personal assistant
•Answering hundreds of question every day, including
about products, locations and hours of service
BIM-SPEC INFORMATION EXCHANGE
•Significant investment in BIM-spec technology,
allowing for:
oFaster detailing
oBetter estimating
oFewer errors
oCustomer collaboration
20

WEBSHOPS
•Webshopsfor Steel & Tube and Fortress –more than
47,000 products available online
•Providing choice for our customers and making it easier
for them to order and buy from Steel & Tube
•24 x 7 access and self service for quotes, orders,
shipments updates and invoices
•Strong demand from customers since launch
21
May-20Jun-20Jul-20Aug-20Sep-20
Webshop Order Volumes

CUSTOMER EXPERIENCE
STRATEGY
•Goals of our Customer Experience
Strategy are:
oProvide choice to our customers
oDeliver more consistent sales and
service interaction
oImprove share of wallet with
upsell/cross sell opportunities
oReduce the cost to serve.
22
DIGITAL ANALYTICS
•Use of rich data to understand
our customers and optimise our
sales and service performance
•Recently released advanced
analytics platforms for
Segmentation, Pricing and
Product Traceability
•Focus on maximising margin
opportunities, targeting resources
and providing best in class quality
and traceability capabilities for
our customers.

OUR WINNING TEAM
We provide local jobs and employment, pay taxes which benefit the wider community and support
work, training and mentoring programmeswhich assist students and our staff.
23
Employee Engagement
Survey
•Engagement Score
7.3 out of 10
•Top 5% in our
industry for Caring
Management
Support
•Top 10% for Peer
Relationships at
work
Improving Access and
Upskilling
First Foundation
Scholarships
Sector Workforce
Engagement
Programme
Wide range of skills
training and
development
Celebrating Diversity
18 different ethnicities
across our workforce
Increasing number of
women across the
business
Number of female
reports to General
Managers now at 36%

COMMITMENT TO SAFETY AND
QUALITY
All recordable injuries were investigated through the Dig
Deeper process and opportunities were highlighted for
improved process application and training.
25
•Completed ISO 9001:2015 quality certification
for majority of businesses and final
businesses underway
•Lloyds Register has completed independent
assessment of 19 of the mills we buy from
since programme commenced in 2018
•Further enhancingour Fair TradingAct (FTA)
compliance programme
•Introduced further traceability features
•Certified to the ‘Steel Construction New
Zealand -Structural Steel Distributor Charter
Scheme’
•Member of the Sustainable Steel Council and
moving towards certification
•Progressing certification for ISO 45001
(Occupational Safety and Health) and ISO
140001 (Environmental standards)
0
4
8
12
16
FY16FY17FY18FY19FY20FY21 YTD
EMPLOYEE TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)

CREATING A SUSTAINABLE BUSINESS
•Flexible working arrangements –less commuting
•Initiatives to reduce steel wastage
•Benchmark measures now in place –developing action plan to reduce our carbon emissions.
26

MOVING
FORWARD
IT’S GAME ON

MOVING FORWARD
28
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
29
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
30
Construction
•Residential market ¬$24b, near-term demand strong, supported by tight supply,
low mortgage rates, and strong first home and returning expat buyer interest.
•Non-residential market ¬$8b, demand impacted by reducing consents and delayed
projects. Central and local government funded projects to help offset reduction in
commercial building construction inthe medium term.
•Residential and non-residential construction outlook remains uncertainbut
expected to contract as pipelinethins in 2H.
Infrastructure
•Market of ¬$9b is growing due to increased government funding, including “shovel
ready” projects, noting the construction timing of projects are uncertain.
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,
climate change initiatives and other opportunities.

TRADING UPDATE
31
•Solid trading in July and Q1
FY21; stronger than initially
anticipated.
•Construction activity
continues to be impacted by
softer vertical building activity,
however we are seeing
continued strength in
residential activity, horizontal
construction and civil works.
•Priority focus is on gross
margin dollar management.
JanFebMarAprMayJunJulAugSep
$ Sales
S&T Group Sales Trend
(Weekly)
20192020

FY21 OUTLOOK
•Post Level 4 shutdown, structural changes embedded.
•Moving ahead with clear strategic plan for next three years.
•Continue to take actions to streamline the business operating model while investing in the
future.
•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.
•Continuing slowdown in some areas with reduced business confidence post-COVID. Cautious
approach to future economic environment, careful business stewardship required.
•No guidance for FY21 due to uncertain impacts of COVID-19 on trading.
•FY21 dividends will be considered in line with the Company’s dividend policy.
Our goal is to be the sector leader, the preferred choice for steel products and solutions and a
trusted partner for our customers

SHAREHOLDER
DISCUSSION

RESOLUTIONS
3
4

RESOLUTIONS
RESOLUTION 1: AUDITOR’S REMUNERATION:
That the Directors be authorised to fix the fees and expenses of PricewaterhouseCoopers as the Company’s
auditor.
RESOLUTION 2: RE-ELECTION OF CHRIS ELLIS
That Chris Ellis be re-elected as a Director of the Company.
RESOLUTION 3: RE-ELECTION OF STEVE REINDLER
That Steve Reindler be re-elected as a Director of the Company

OTHER BUSINESS
CLOSE OF MEETING
36

NZ IFRS 16 EFFECTIVE 1 JULY 2019
•Removes the distinction between operating
and finance leases, with all leases now on
balance sheet
•Resulted in a shift of operating lease costs,
historically 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
37
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 oftransactions, 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.
38
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 IFRS16(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 ofnon-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.
39

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
40

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STEEL & TUBE 2020 ANNUAL SHAREHOLDERS’ MEETING

CHAIR’S PRESENTATION: SUSAN PATERSON
The industry in which we operate is highly competitive and fragmented. Steel & Tube remains one of
New Zealand’s largest and most comprehensive providers of steel products and solutions.
To safeguard our future, we must continue to innovate and improve, to ensure that Steel & Tube is
seen as the first choice for consumers wanting expert advice and quality products and solutions.
We also need to make sure that we are operating as efficiently as possible, maximising our margins
and, as a result, delivering value to our shareholders.
FY17 To FY20 Strategic Progress
For the past three years, we have been on a journey to reset our company, to make it stronger,
more efficient and better performing. Key projects have included the streamlining of our network of
branches, the introduction of an extensive quality programme and improvements to our operations
and supply chain, particularly around freight and inventory management.
We have also been investing in technology and the digitisation of our business. The steel sector has
historically been a ‘bricks and mortar’ industry and we are at the forefront of transforming the
industry. We are embracing technology with digital initiatives including a new ecommerce platform,
webshops, a chatbot and more, to make it easy for our customers to do business with us.
Our capital base has been strengthened significantly, with borrowings reduced to $10 million at FY20
year end. Operating cashflow has grown strongly and was up $5 million year on year.
One outstanding issue relating to the period prior to April 2016 is the Commerce Commission case in
relation to the Fair Trading Act and steel mesh which remains ongoing. The latest appeal was heard
in August and we are now waiting for the Court’s decision. We are disappointed with the
Commission’s decision to appeal the High Court’s decision, and we continue to stand by our
products. The breaches of the Fair Trading Act were unintentional and the Board and management
at the time immediately rectified testing procedures and documentation when advised of the issue.
COVID-19
The work we have done over the past years has made us a stronger, more efficient and leaner
business...and provided us with greater resilience for something that none of us foresaw – a global
pandemic which has created enormous challenges for governments, businesses and people around
the globe.
The Level 4 lockdown saw all sites closed except where needed to supply essential services. The
priorities for the Board were the safety of our people and customers, and contingency planning,
including financial modelling under various scenarios. We took a prudent approach to capital
management and we cancelled the interim dividend payment. We also engaged with our banking
syndicate, agreeing waivers of existing bank covenants for 30 June and 31 December 2020, and
temporary revised covenants for the remainder of FY21, which we expect to comfortably meet.
Like most businesses, Steel & Tube has not come through the pandemic environment unscathed,
with COVID-19 accelerating an already softening trading environment. The level 4 lockdown

occurred during a traditionally high earnings period for our business and sales were down
approximately 50% over March and April, compared to the same time last year. During this period,
management took the opportunity to progress strategic initiatives, including accelerating the
organisation restructure, advancing our digital strategy and further staff training.
Trading since we emerged from lockdown has been better than anticipated, and is close to prior
year. In part this has been due to pent up demand, however, we have also seen positive signs of
economic activity with a number of new projects and longer term contracts, offsetting some project
cancellations.
However, the volatility of the COVID environment has been demonstrated again recently, and the
recent level 3 restrictions in Auckland has impacted a number of our customers, with a flow on
effect on some parts of our business.
I would like to acknowledge and thank our staff, suppliers, customers and other stakeholders for
their support during this period. In particular, I was humbled by the commitment and efforts of the
Steel & Tube team, who quickly adapted to the new working environment and continued to give it
their all during a time of significant disruption to their jobs and their daily lives.
FY20 Snapshot
The results for the FY20 year reflect what had been a softening economic environment and the
material impact of COVID-19 on trading as well as the work being done to make our business fit for
purpose.
As reported in our results announcement on 28 August, the 2020 financial year saw us recognise
non-trading impairments and adjustments of $58 million, which together with the softer earnings,
led to a reported loss of $60m for the year.
Whilst economic conditions are expected to remain challenging throughout our 2021 financial year, I
am pleased to report we have a stronger balance sheet, are delivering robust operating cashflows
and we are seeing benefits from the significant structural improvements made over the last two
years.
Excluding the non-trading items, our normalised earnings were just above breakeven. Cash
management continues to remain a critical focus for the business.
Given the uncertainty and volatility of the COVID-19 environment, the Board made the difficult
decisions to cancel the interim dividend and not declare a final dividend. We understand
shareholders will be disappointed in this but believe that the preservation of cash at this time is the
most appropriate action to take in the best interests of the company.
Equally, shareholders will be frustrated in Steel & Tube’s share price, as are the Board. We recognise
we need to deliver improved financial performance, which we are committed to doing.
Game On
Significant work has been done by management and the Board to position our company for the
future and ensure we have the best organisational structure to navigate the new COVID-19
environment.

Positioned For Future Growth
We are positioning our company to be customer focused and sales led. With the start of the FY21
financial year, we have put in place a clear strategy to guide our actions going forward.
Our vision is to be a successful company delivering an acceptable return to our shareholders, and
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 and we have accelerated our plans to create a digitally smart and efficient
business as part of our 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.
I would now like to hand you over to our CEO, Mark Malpass, to talk about our future pathway and
strategy in more detail.

CEO’S PRESENTATION: MARK MALPASS
Management Team
Steel & Tube is led by a talented group of executives, all of whom have extensive experience in their
respective areas and are passionate about our company and its potential.
Division Review
Our business is structured into two divisions.
In distribution, products are sourced from preferred steel mills and distributed through our national
network of branches.
In infrastructure, products are typically made to order on a project basis and often include onsite
installation services, either performed by us or contractors.
We have strong brands and businesses in each of our divisions.
Both our divisions – Distribution and Infrastructure – were materially impacted by the COVID
shutdown but are recovering well.
The distribution business is higher volume and lower margin and has been impacted by the market
segment contraction in vertical construction and pricing pressure we have seen over the past two

years. Pleasingly, Project Strive initiatives have made significant improvements to our cost base, we
have held market share, and pre-COVID revenues and margins had improved.
In Infrastructure we have continued to win significant project work with our quality and service
offering. Our composite floor decking team, supported by our market leading ComFlor products, is a
strong market offering, albeit the softening in vertical construction has impacted on revenues in the
financial year 2020. 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 project work, although we continue to balance risk/reward in this sector.
Sector Exposure
The current environment demonstrates the benefits of diversification across a number of different
sectors.
Each of these sectors has been affected differently by the trading conditions in the financial year
2020.
Construction is about half of our sales exposure and comprises non-residential or commercial,
residential and infrastructure; manufacturing 38% and Retail / wholesale approximately 10%.
Market Conditions
The market has been challenging, with COVID-19 impacting sectors in different ways.
You can see on the top left non-residential has been cooling off for a while driven by slowing vertical
construction. That said, there’s an increase in value of non-residential consents but a fairly
significant decrease in square meters. On the top right you can see crane activity, which is a good
indicator for commercial construction activity, declined for the first time since 2017. Our
CFDL/Comflor businesses and Structural Steel are particularly exposed to this sector.
Residential consents, in the bottom left, is still very strong – annualised 37,614 consents as at end
June, and we haven’t really seen the expected cooling off yet.
You can see the BNZ Performance of Manufacturing Index or PMI on the bottom right. This climbed
post COVID-19 lockdown, hitting 58.8 in July and effectively catching up on the lost ground, but
dropped to 50.7 in August.
So, it’s been a mixed bag. The vertical construction softening has hurt but we are now seeing good
growth in infrastructure, civil work, and water management.
FY20 At A Glance
Overall, our results for the FY20 year reflect the impact of COVID-19 in the second half of the year,
with the level 4 lockdown and progressive return to business occurring during a traditionally high
earning period for the business in April and May. This followed the first half year impacts of reduced
vertical construction activity, the softer stainless steel market and ongoing competitive pricing
pressures.
The result included non-trading adjustments of $58.1m, which included non-cash goodwill and other
impairments of $51.9m and $5.5m in restructuring and rationalisation costs.

Revenue for the 12 months was $417.9m, with normalised EBIT (excluding non-trading adjustments)
of $0.4m. On a like for like basis with the prior year, excluding NZ IFRS 16 adjustments
1
, normalised
EBIT was a loss of $(5.2)m. The company reported a Net Loss After Tax of $(60.0)m.
Operating cashflows were robust, with $39.6m for the year. Borrowings were reduced to $10m,
reflecting working capital and capital management discipline, and have further reduced to be zero at
31 August.
Despite the challenging second half, our balance sheet is strong, and we had cash of $17.4m as at 30
June 2020, which continues to improve.
Post-balance date, we completed the sale of a surplus Gisborne property with net proceeds of $1.4m
applied to further reducing borrowings.
Margins were showing improvement pre-COVID, however, have reduced post-COVID driven by
competitive pricing pressures and product mix, although more recently have improved through the
first quarter of this financial year. Our priority is to continue to rapidly improve gross margin
performance. All our sales people are now incentivised on gross margin dollar quarterly
improvements to ensure everyone in the team is aligned with our objectives. The leaner
organisational structure and digital investment will also 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.
Strategic Response To The New Normal
As Susan has said, over the past two years we have done a lot of work to create a stronger financial
platform, a more efficient and leaner business and to lead the way in digitisation and technology in
the steel industry.
While economic forecasts for the various sectors are mixed, all indicators currently suggest there will
be a decline in overall economic activity. 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.
Network Strategy
To ensure our business is fit for purpose, we have accelerated a restructuring of our operating
platform, including branch consolidations. Importantly we have retained a local sales and service
presence, while creating a leaner business.
This has seen our network reduce from 50 sites in late 2017 to 26 sites as of end-September. We
have also reduced our lease costs over the period by $3m per annum.
We have also recently closed our Wellington corporate office and have transitioned the finance
team to Auckland.
Benefits From Organisation Restructure
In line with the network restructuring, we made the difficult decision to resize our workforce, which
sadly has meant a permanent reduction of 150 to 200 people - approximately 20% of our workforce.

1
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.

As at the end of September we had 874 full time equivalent employees and we expect this to
further reduce to 830 by 31 December, with a further 30 depending on sales levels.
New ways of working are being progressed, particularly around digital initiatives. These are not just
making it easy for our customers to do business with us, but are also enabling a lower cost to serve
and better pricing governance and controls, which is an essential part of our focus on improving
margins.
Aligning Our Business With Our Customer
Customer satisfaction is fundamental to our success. By becoming the preferred supplier for steel
products and solutions in New Zealand, we will grow our share of the market which will in turn drive
our revenue.
We are continually looking for ways to add value to our customers. This includes providing products
and services to meet our customers’ needs, delivering seamless customer service and leveraging our
technical expertise. Of importance is our ability to deliver in full, on time and in specification
(DIFOTIS). Our sales and logistics teams play a big role in achieving these goals, as does data.
We measure customer satisfaction using a Net Promoter Score and this has consistently improved
since we first started collecting data in 2018.
Leading The Way In Technology And Digitisation
Technology is a key enabler, allowing us to improve sales effectiveness and lower our cost to serve
to our customers. We believe this will provide us with a competitive edge and improved financial
outcomes. We continue to move quickly to try out new ideas and innovate, such as our chatbot,
Stanley, and online customer portal.
We are building a market leading digital capability, which will improve our customers’ experience
and increase our share of wallet.
One example is our Chatbot Stanley. Stanley is designed to assist visitors to our website when they
are searching for products, locations, opening hours and other useful Steel & Tube information.
We also continued to refine and expand BIM-Spec, our Building Information Modelling platform. This
is online technical content about our products that makes it easier for construction and design
professionals to work with us and helps streamline workflow and estimation information. This has
significantly increased the efficiency of our detailing process, whereby we create workshop drawings
that can be used by our staff to create specific items. This is an important sector that is rapidly
digitising and we are focused on ensuring we meet customer needs.
Webshops
Recently we launched our Webshops. Our customers can now order 24 x 7 across our entire product
range – 47,000 products to be precise. The Webshops provide our customers with a ‘one stop shop’
for all their customer service needs, with the ability to retrieve order details, shipments, invoices and
quotes from a single location. We have been very pleased with the adoption rate with
approximately 1,000 customers signing up in the first few weeks and thousands more being invited
to register through a targeted direct marketing campaign. Even at these early stages it is obvious
that this service is something our customers see a lot of value in.

Customer Experience Centre and Digital Analytics
The overarching goals of our Customer Experience Strategy are to deliver a market leading customer
experience and reduce our cost to serve.
We have recently implemented our Customer Experience Centre with state of the art
telecommunication and contact centre technologies. This is a single place where all our customer
interactions come together – be it face to face, via phone, email or on-line.
We understand how important it is to get the right products, at the right time, and at the right price,
and our new advanced customer analytics platform is providing deep insights into our customers’
buying patterns and profiles. These insights have helped to establish our CX centres, align our sales
and service channels around the needs and profile of our customers and are highlighting the market
segments and niches where we have an opportunity to grow and maximise margin.
As an example, our Pricing Optimisation Programme provides us with visibility of price performance
by customer, transactions and product. Over time, this will allow us to automate our responses to
changing market and competitive conditions.
Another example is a new Test Certificate platform that builds on our already industry leading
Product Traceability practices. Providing test certificates is currently a very manual process. This new
platform will eventually automate all elements of the customer’s test certificate requirements,
improving convenience and reliability of service to our customers and further reducing our cost to
serve.
While it is early days, we believe we can drive better outcomes for our customers and shareholders
by embracing the use of these technologies.
Our Winning Team
Our people are the backbone of our company and our social policies are focused around improving
access to education, employment, development and training for our staff as well as students in low
decile schools. We also celebrate the diversity in our workforce, which is represented across 18
different ethnicities, and support the health, safety and wellbeing of our people.
Pleasingly, we have continued to increase the number of women across the business, creating a
stronger and more diverse talent pipeline. Significantly, the number of female reports to General
Managers increased from 29% to 36% in FY20.
We continue to support the First Foundation with scholarships to nominated family members of our
staff to support them through tertiary study, and in 2020, we also participated in the Sector
Workforce Engagement Programme for school leavers.
We offer a wide range of staff skills training and development, with increased levels of technical
product training occurring during FY20 and an average training spend per employee of $260.
In this year’s Employee Engagement survey, our Engagement score was 7.3 out of 10, which was
above the benchmark for our industry and the survey was completed during a time when we were
restructuring. Other highlights include being in the top 5% of all companies in our industry for Caring
Management Support and in the top 10% for peer relationships at work.

Mates in Construction
The statistics overwhelmingly show that the construction industry needs to do more to create
workplaces where it’s okay to raise your hand, talk about your problems and feel supported.
Steel & Tube is a founding sponsor of NZ Mates in Construction, a partnership with the objective of
improving health and wellbeing for those in the industry. During the COVID-19 lockdown, we shared
the MATES Toolbox Talk videos and resources with all our employees, and since re-opening, more
than 150 manufacturing and labouring employees have undertaken MATES Induction Training
programme – which creates better awareness of the risk of suicide and provides ways to support
employees needing help. We are also commencing an advanced programme so that every site has
designated employees who have received specialist training to identify and provide support and
advice to those most at risk of suicide.
We’ve committed to this because we’ve seen how effective the programme is at starting
conversations and creating awareness in all sections of our workforce.
Commitment To Safety and Quality
The health and safety of our employees remains our number one priority. We continue to actively
engage with staff across the business and our total recordable injury frequency rate has significantly
improved over the last five years.
In the recent employee engagement survey there were two key health and safety questions which
provide a good indicator of safety culture. In response to “is this organisation committed to
providing a safe working environment?” Steel & Tube scored 8.8 out of 10... and 8.6 out of 10 for the
second question “the person I report to demonstrates commitment to my safety in the workplace”.
We have completed ISO quality certification for the majority of our businesses with the remainder
expected to be completed during the current financial year. 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, with 19 mills across the region audited since the programme commenced in
2018.
We continue to take steps to further improve and lead the way in quality, with audits and
certification from key organisations in the sector.
Creating a Sustainable Business
We remain committed to creating a sustainable business, one that delivers value for all our
stakeholders as well reducing the environmental impact of our activities.
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.
We have identified areas that matter for the long term sustainability of our business and set Key
Performance Indicators (KPIs) for each. 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, our 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.
Moving Forward
In late 2017, we embarked on an extensive company-wide reset to drive long-term sustainable
earnings improvement and rebuild shareholder value. Through our Project Strive programme, we
have laid a stronger foundation and we are moving forward with a clear strategy that will guide our
actions over the next three years.
New Strategy
As we move forward, we have identified five pathways, each focused on an area of the business that
is critical to our success. Our goal is to be 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, while delivering an acceptable return to our shareholders.
Our Strategic Pathways
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.
Sector Outlook
Just under 40% of our sales are in residential and non-residential construction.
Residential near-term demand remains strong, supported by tight supply, low mortgage rates, and
strong first home and returning expat buyer interest. Residential and business investment is
expected to contract as the pipeline contracts and confidence thins.

Non-residential demand continues to soften with an increasing number of projects being delayed or
cancelled. However, Government, Council and private developments are expected to help offset
this reduction.
Infrastructure remains promising with large infrastructure projects ongoing and a potential pipeline
of “shovel ready” projects. The Government has increased funding for infrastructure projects by $3b,
on top of the $12b increase announced in January, and this should benefit the sector.
Food manufacturers and agriculture sectors are expected to fare 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.
Trading Update
Trading in Q1 FY21 has been stronger than anticipated to date. This recovery reflects a level of
resilience in the economy at present, supported by the Government’s wage subsidy scheme.
Construction activity continues to be impacted by softer vertical building activity, however we are
seeing continued strength in residential activity, civil and other works.
Our priority focus remains on gross margin dollar management and therefore balancing risk/reward.
FY21 Outlook
The economic environment remains uncertain with the continuing slowdown in some areas due to
reduced business confidence post-COVID, and pre-election uncertainty.
While trading has been solid for us in July and the first quarter of this financial year, 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 strategy sets out a pathway that builds on our competitive advantage. 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.
Thank you.
ENDS