Steel & Tube Shareholder Newsletter December 2020

A WORD FROM THE CHAIR AND CEO
Dear Shareholder
With Christmas nearly upon us and after the
challenges faced in the 2020 year, we are
looking forward to a more settled 2021.
COVID-19 has made for a difficult year,
however, we are pleased with our progress in
the year to date. We have seen positive signs
of economic activity with a number of new
projects and longer-term contracts secured.
We remain focussed on optimising customer
service and continuing to achieve further
structural cost savings.
On 17 December 2020, we provided a trading
update and 1H21 guidance to the market.
Revenue for the first five months of the FY21
financial year to date (to end-November
2020) is tracking slightly lower than the same
period last year and pleasingly, November
revenue was back in line with the prior year.
Earnings Before Interest and Tax (EBIT) is
ahead of the prior comparative period, as we
realise benefits from cost reduction initiatives
and gains from sub-leasing properties.
For the half year ending 31 December 2020,
based on trading to date and after adjusting
for the gain on the sale of the Gisborne
property and lease asset impairment
reversals, Steel & Tube expects to report
normalised EBIT (post NZ IFRS-16) of
between $6.5 - $7.5m, up from the prior year
normalised EBIT of $5.7m.
1
The improved earnings coupled with ongoing
working capital discipline has enabled Steel &
Tube to deliver robust operating cashflows.
At the end of November 2020, the Group
held cash of approximately $24m (up from
$7m net cash at 30 June 2020) with zero debt.
Whilst some working capital impact is
expected in December to support seasonal
inventory holdings, we expect to report a
strong cash position for the half year ending
31 December 2020. We are also negotiating
the sale of Steel & Tube's remaining
property as part of our property divestment
programme.
We are executing on our key strategic
initiatives which is improving focus and
delivering structural efficiencies. Our strong
balance sheet and a growing digital platform
provide us with greater resilience to navigate
through these uncertain times.
The company is now well placed for the
future. We have secured a solid pipeline
of project work and are well positioned to
continue our current performance trends.
Shareholder Update
STORIES OF STRENGTH
DECEMBER 2020
Susan Paterson, Chair
1
Normalised EBIT excludes non trading adjustments and unusual transactions including gain/losses on property, impairments and restructuring costs.
Steel & Tube believes that excluding these transactions from normalised earnings can assist users in forming a view of the underlying performance of the Group.
Mark Malpass, CEO

To date, the current supply chain and port
congestion difficulties have not significantly
impacted the business but this remains an
ongoing focus.
The vision of a digitally-enabled business
is well on track, with approximately 3,000
customers registered on the webstores and
this is expected to grow further over the
remainder of FY21. Net Promoter Scores,
which are a measure of customer satisfaction,
are continuing to rise as we focus on
improving service delivery and fulfilment,
technical support and sales and brand
marketing initiatives.
At the start of the FY21 financial year, we
put in place a clear strategy to guide our
actions going forward and we shared this with
shareholders in our Annual Report and at our
annual meeting. We are already making good
progress with initiatives under each of our
five key focus areas and you can read about
some of our projects in this newsletter.
Our organisation, while smaller, is engaged
and focussed on priority areas of sales and
operational disciplines.
As one of New Zealand’s largest steel
providers and distributors we acknowledge
our responsibilities to manage our business
in line with the expectations of our
stakeholders. We undertake a wide range of
Environmental, Social and Governance (ESG)
initiatives which are focused on adding value
for all our stakeholders and also reducing our
environmental impact.
As a construction material, steel is safe,
strong and low waste. It is the ideal circular
economy material - infinitely recyclable
without product degradation and easily
reused and repurposed. Steel offers many
benefits – it is made using predominantly
renewable energy sources, there is less
construction waste and it lasts for longer.
As we come to the end of the 2020 year,
we have been pleased to have reached a
resolution on the long standing Commerce
Commission case, with the Court of Appeal
dismissing the Commerce Commission
appeal and reducing the fine imposed on
Steel & Tube to $1.56 million (previously $2
million). The Commerce Commission has
confirmed that it will not be appealing this
decision. As we have previously stated, the
judgement has no impact on Steel & Tube’s
current or future financial results. We are
happy to have resolved this historical matter
(pre-2016), which has consumed a significant
amount of time and resource. Quality remains
a priority focus for our teams and we believe
the quality initiatives we have undertaken in
the past few years position us as best in class
in this area.
We expect a more positive year in 2021,
however, we remain cautious about the
continuing impact of COVID on our economy,
as was seen with the recent restrictions in
Auckland. The work we have done over the
past this year has provided us with greater
resilience and strong platform with which to
face the future.
We would like to acknowledge and thank our
people for their efforts, support and ongoing
positivity this year, despite the significant
disruption to their jobs and their daily lives.
To all our shareholders, thank you for your
ongoing support as we focus on lifting
the performance of the company. We
acknowledge it has been a bumpy road
at times, however, your Board and our
leadership team are committed to delivering
value for our shareholders.
We wish you all a wonderful and safe summer
break.
Susan Paterson, Chair
Mark Malpass, Chief Executive Officer
ANNUAL MEETING
Steel & Tube’s 2020 Annual Meeting was held in Wellington in October 2020, providing the Board and management with an opportunity
to meet our shareholders and provide an update on our progress. We also farewelled director Anne Urlwin, who has been a valued
member of the Board for a number of years. All resolutions were approved by shareholders, including the re-election of Steve Reindler
and Chris Ellis as Independent Directors.
The presentation, speeches and a video of the meeting can viewed on the Steel & Tube website here:
https://steelandtube.co.nz/investor/annual-meetings.
Welcome
Karen Jordan,
Independent
Director
Steel & Tube is pleased to
announce the appointment
of Karen Jordan as an
independent director,
effective from 10 December
2020.
Karen has over 20 years
corporate executive
experience in the UK energy
and infrastructure industry,
in FTSE listed companies,
and extensive governance
experience.
Her professional expertise
in finance, risk and audit,
combined with her extensive
experience in commercial
strategy and business
transformation will bring
strong capability to the Board.

FULL SERVICE PROVIDER
Providing a one-stop-shop for the most essential steel products – from floor to roof and everywhere in between.
Busy times continue in Wellington for Steel & Tube, as we continue to align
ourselves with well respected and well established businesses such as the
great team at construction company, L T McGuinness.
Steel & Tube has supported the builds of a number of high profile major
projects, such as the Wellington Convention centre where we supplied
approximately 20,000kgs of Comflor SR, and reinforcing for the foundations
in the extensive Bowen Campus development. Steel & Tube is looking to work
even more closely with L T McGuinness, with the ability to offer a full range of
steel solutions from the Reo in the ground to the last screw in the roof
(and of course everything in between).
Napier Port is considered the shipping gateway
connecting the centre of New Zealand with the
people and markets of the world. Despite the
disruption of COVID-19, Napier Port continued
to move ahead with the Wharf 6 construction
project, to provide capacity for the future.
Steel & Tube was appointed to supply the
reinforcing for the expansion, with the supply
of ~5,000 tonnes of reinforcing for piles and the
wharf deck.
Our innovative pile construction methodology
helped secure the contract by shortening the
construction program by approximately 100
days and providing significant cost savings for
the client. Long piles, like those required for this
job, are typically made in segments that are then
lifted and joined over the pile casing. This is a
risky and time consuming process. Instead, we
are making the piles to the final required length
and lifting them into place in one lift. This is no
small feat given many of the piles are over 40m
in length!
The team of 10 onsite fixers was expanded by
another 16 personnel in November, as work
commenced to install reinforcing for the deck.
Wharf 6 is due to be commissioned by the end
of 2022.
STRONG CUSTOMER PARTNERSHIP
WITH L T MCGUINNESS
SAVING 100 DAYS AT
NAPIER PORT
›
Wharf 6, Napier Port
›
Steel & Tube Reinforcing
›
5,000 tonnes of reinforcing

ABOUT OUR PRODUCTS: REINFORCING STEEL
Reinforcing steel is usually bar or mesh which is used to create the tension
capacity in reinforced concrete. Reinforcing steel significantly increases
the strength of a structure especially under earthquake loading. Its rough,
(or deformed), surface profile promotes a better bond with the concrete
that allows the two materials to work together structurally. Steel has
significant advantages over other materials – it can be bent to shape after
manufacturing, it is robust, it is easily recyclable at the end of a structure’s
design life, and it is compatible with concrete. Steel & Tube is one of the
largest suppliers of fabricated reinforcing steel mesh, bars, ties, piles,
beams, and columns for use by the New Zealand building and construction
industry.
In early 2020, McConnell Dowell kicked off
a multi-million dollar redevelopment of the
Main Wharf North for Port of Nelson. This
redevelopment will improve resilience of the
Port, accommodate larger vessels and move
the main wharf operations further away from
residential neighbours.
Steel & Tube was contracted to provide 900
tonnes of steel reinforcing – that’s the equivalent
of about three 747 airplanes – for the construction
of the new Wharf. The steel is being provided out
of Steel & Tube’s Christchurch plant, with the first
load delivered to Nelson in November and work
commencing this month.
NELSON WHARF
›
Main Wharf North,
Port Nelson
›
Steel & Tube Reinforcing
›
900 tonnes of reinforcing
Bridge 190 is located over the Shag River on
the Main South railway line, near Palmerston.
With a history of flooding and an unstable
retaining wall, urgent work was undertaken to
improve the bridge.
Steel & Tube provided 126 tonnes of steel
reinforcing, with timber spans, piles, abutments
and piers all being replaced and strengthened
with steel reinforcing. The project started
for Steel & Tube in November 2019 and was
completed in October 2020. Throughout this
time, the rail line remained in use, with minimal
disruptions to rail transport during the project.
›
Shag River, KiwiRail
›
Steel & Tube Reinforcing
›
126 tonnes of reinforcing
SHAG RIVER

WEB PORTALS KEY PART OF KĀINGA
ORA NATIONAL SUPPLY AGREEMENT
Steel & Tube Roofing has been awarded the National Supply Contract for Kāinga Ora
for a four year period starting 1 July 2020.
This is a significant contract for the
Rollforming Business Unit and offers the
opportunity to grow with additional Kāinga
Ora work.
Part of the implementation of this contract
was to set up the Kāinga Ora installers on the
Steel & Tube Web portal. This allows them to
easily place their roofing orders, along with a
range of other functions and reporting which
enables Kāinga Ora to better understand the
procurement performance of the installers.
MAKING IT EASY
Doing everything we can to make it easy for our customers to do business with us.
ROOFING PROFILES
CUSTOM ORB
®
TRIMLINE
®
ST963
®
PLUMBDEK
®
TRIMFORM
®
ST7
®
SIX RIB
®
ST900
®
HI RIB
®
Discover everything you need to know about a
COLORSTEEL® solution.
ACCESSORIES
DUPONT TYVEK SUPRO
ROOFING HOT LINE 0800 427663
WHANGAREI
Steel & Tube Roofing - Whangarei
29 Southend Avenue
Raumanga
Whangarei 0110
Phone: 09 438 4600
Fax: 09 438 0342
rwh.sales@steelandtube.co.nz
Branch Manager: Tony Hunt
AUCKLAND
Steel & Tube Roofing - Auckland
30 Business Parade North
Highbrook
Auckland 2013
Phone: 09 274 4056
Fax: 09 274 8972
rak.sales@steelandtube.co.nz
Branch Manager: Ben Knight
HAMILTON
Steel & Tube Roofing - Hamilton
40 Northway Street
Te Rapa
Hamilton 3200
Phone: 07 850 9200
Fax: 07 850 9330
rhm.sales@steelandtube.co.nz
Branch Manager: Ken Moore
TAURANGA
Steel & Tube Roofing - Tauranga
28A Jean Batten Drive
Mount Maunganui 3116
Phone: 07 578 1089
Fax: 07 577 0186
rtasales@steelandtube.co.nz
Branch Manager: Dan Hall
WELLINGTON
Steel & Tube Roofing - Wellington
39-41 Randwick Road
Moera
Wellington 5010
Phone: 04 568 4359
Fax: 04 568 6770
rwn.sales@steelandtube.co.nz
Branch Manager: Wayne Foulkes
CHRISTCHURCH
Steel & Tube Roofing - Christchurch
65 Seymour Street
Hornby
Christchurch 8042
Phone: 03 377 0994
Fax: 03 348 1728
rch.sales@steelandtube.co.nz
Branch Manager: Darren Davies
COVERTEK 407
This is a significant contract for
the Rollforming Business Unit

STEEL & TUBE IS BREAKING AWAY FROM THE
TRADITIONAL ‘BRICKS AND MORTAR’ INDUSTRY
IN WHICH IT OPERATES AND IS LEADING THE
DIGITAL CHARGE IN THE SECTOR TO MAKE
LIFE EVEN EASIER FOR ITS CUSTOMERS.
Our strategy is directed towards becoming a digitally-enabled business that uses
technology to meet and exceed customer expectations, with better delivery performance,
customer service and ease of doing business as well as more efficient operations.
Webshops take off
To say Steel & Tube’s webshops have
tapped into an area of unmet demand by
our customers for digital tools would be
an understatement. There are now several
thousand registered users with pleasing
growth in usage and sales. We are continuing
to invest in our webshop platform with a
range of new features arriving over the
coming months. These include a number of
enhancements for our trade shop and cash
account customers, search improvements,
inventory inquiry enhancements and
implementation of Stanley our chatbot to
provide assistance while ordering.
Better understanding our customers
We have invested heavily in our digital
platforms and with this comes the added
benefits of being able to gain a deeper
understanding of our customers’ use and
requirements of our products, sales and
service channels.
We are also gaining a much greater insight
into customer purchasing patterns, channel
preferences and product consumption
behaviour. For example, we can identify
which products are typically purchased
together in various market segments
and provide tailored pricing and product
promotions. This can be completed in near
real time and provides opportunities to
get immediate feedback on how specific
offers and promotions are performing in the
market. Over time, this will provide new ways
of creating value for our customers and S&T.
INNOVATION AND TECHNOLOGY
Use technology and great thinking to pull it all together and enable a better business.

DELIVERING CUSTOMER EXCELLENCE
Michelle Kingham is leading the way in Customer Excellence for Steel & Tube’s Distribution
business, as the Manager of the revamped National Customer Experience Team.
Steel & Tube has been on a journey to
transform how it delivers customer
excellence, but COVID-19 accelerated the
process, with a rapid deployment of new call
centre technology and the establishment of
a remote working environment that is now a
successful part of the team’s operations.
With more than 50 people across three
regional hubs and several specialised teams,
the customer experience team takes calls
and emails from more than 100 customers
each day, as well as following up on multiple
webshop orders and providing expert advice.
The call centre technology was implemented
just two weeks before the March lockdown
but was the saving grace for the business,
says Michelle. It’s providing more indepth
customer insights, allowing for better
workforce management and more
functionality is being added all the time.
Steel & Tube is leading the way with digital,
in what is a very traditional industry. The next
big thing will be adding a live chat function,
in addition to Stanley the chatbot, and
introducing new CRM technology to better
manage customer relationships.
BETTER WAYS OF WORKING
Always looking for ways to work smarter.

ONE TEAM
Building one great team right across the Steel & Tube business.
PARTNERSHIP WITH
PAPAKURA HIGH SCHOOL
A great collaboration between Steel & Tube,
MBIE, Manukau Jobs and Skills Hub and Papakura
High School has seen a work place experience
turn into real employment for three students.
The students spent a series of days going to
different Steel & Tube sites to learn about the
end to end process of steel manufacturing and
production. Year 13 student, Rodney, received his
forklift license through Papakura High School and
was excited at the opportunity of being able to use
it at Steel & Tube. His enthusiasm and hard work
has paid off and he was the first to sign a contract
with the company to start full time employment.
Two other students are also starting work once the
school year ends.
INSPIRING OTHERS
In July, Steel & Tube participated in a Ministry
of Education Employer’s Showcase at Lynfield
College. This provides students with the
opportunity to hear about different career
opportunities in a variety of sectors.
Steel & Tube’s Auckland Roofing Branch Manager,
Ben Knight, and Production Manager, Petra Woods,
spoke to the Year 11 students about their typical
day and career path.
Ben Knight related his 21-year history with Steel
& Tube, outlining his career path from Purlins
Customer Service Officer through to Purlins
Manager and his current role as Auckland Roofing
Branch Manager. He spoke of the value he has
received through Steel & Tube’s strong
development opportunities such as the Lead to
Succeed Program.
Petra Woods was a strong and inspiring role model
for the students as she explained her passion
for Operations and Production management.
Petra’s aim is to “turn her team into a family that
supports each other for their personal growth and
for the betterment of the business”. Steel & Tube
look forward to welcoming a student for a work
experience day soon.
LAUNCH OF
MYSKILLS LIBRARY
A new online employee library has been launched,
providing a learning platform for all employees.
Courses range from using Steel & Tube’s IT
platform through to leadership training, finance,
goal setting and quality compliance. Seventy users
had signed up within the first five days of launch,
with interest across the company. Course content
will continue to be developed and the site will also
enable mandatory training, such as health and
safety and cybersecurity, for those in particular
roles.

REO MORPHS INTO STUNNING
STAG SCULPTURE
Napier artist, Glen Colechin, has always had a personal vision of creating a full-sized Stag.
So, when he was tasked with creating a sculpture for the Kings College art show in 2019,
Glen was given the perfect opportunity to bring this creative vision to life.
When it came to choosing materials for
his special project, Glen purchased all his
products from Steel & Tube in Napier. He
chose to use black steel reinforcing, so that
as it weathered, it would create a beautiful
copper aesthetic. The reo also ‘gave the line
a rough look’ according to the artist.
Glen bent the reinforcing by hand and
welded it himself in his garage. The bulk
of the main stag structure was created by
bending the product around a lamp post
on his street; living up to the iconic kiwi DIY
nature.
When it came to installing the project on
site, Glen also made pegs out of Steel & Tube
reinforcing. The sculpture sold in less than
10 minutes at the art show and is now being
displayed on a winery on Waiheke Island.
OUR COMMUNITY
When it came to choosing
materials for his special
project, Glen purchased
all his products from
Steel & Tube in Napier.

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CONTACT US:
Steel & Tube Holdings Ltd
7 Bruce Roderick Drive, East Tamaki, 2013, Auckland
PO Box 30543, Botany, 2163, Auckland
Tel: 04 570 5000 Email: investor.relations@steelandtube.co.nz
www.steelandtube.co.nz
Delivering the information,
expertise, purchasing options and
communication channels that
make it easy for our customers.
Leveraging our breadth of expertise, quality
products and strong brands to deliver a
'ground up' solution for our customers.
Continually improving to ensure an
efficient and effective operational
platform with strong operational
discipline and excellent customer service.
Embracing new technology and continually
innovating to deliver on our customer
and partner strategies - and drive
greater efficiency in our business.
Aligning our staff and our
businesses behind a common
purpose, investing in staff
development, recognising their
contributions and growing their
talents, and empowering them to
add more customer value.
OUR PURPOSE:
To make life easier for our customers needing steel solutions
STRONGER TOGETHER