Steel & Tube Interim Results to 31 December 2020

Template
Distribution Notice

Updated as at 18 December 2019



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

Section 1: Issuer information
Name of issuer Steel & Tube Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code STU
ISIN (If unknown, check on NZX
website)
NZSUTE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 12 March 2021
Ex-Date (one business day before the
Record Date)
11 March 2021
Payment date (and allotment date for
DRP)
26 March 2021
Total monies associated with the
distribution
1

$2,008,570
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.01210000
Gross taxable amount
3
$0.01210000
Total cash distribution
4
$0.01210000
Excluded amount (applicable to listed
PIEs)
NIL
Supplementary distribution amount N/A
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

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

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

N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per
financial product
$0.00399300
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

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

26 February 2021





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

---

2021
HALF YEAR
REPORT
STEEL & TUBE HOLDINGS LIMITED

1
STEEL & TUBE HALF YEAR REPORT 2021.
INTERIM
FINANCIAL
STATEMENTS
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2020
Contents
01 Interim Financial Statements
07 Notes to the Interim Financial Statements
13 Independent Review Report
These interim financial statements do not include
all the notes and information normally included
in the annual financial statements. Accordingly,
they should be read in conjunction with the annual
financial statements for the year ended 30 June 2020.
1
STEEL & TUBE HALF YEAR REPORT 2021

2

3
STEEL & TUBE HALF YEAR REPORT 2021
The accompanying notes form part of these financial statements.
Statement Of Profit Or Loss And Other Comprehensive Income
FOR THE PERIOD ENDED 31 DECEMBER 2020
Notes
Unaudited
December
2020
$000
Unaudited
1

December
2019
$000
Sales revenue 226,315 231,965
Other operating income 183 269
Cost of sales(180,486)(182,630)
Operating expenses2(38,921) (46,125)
Earnings before interest, tax other gains and losses and
impairment
7,091 3,479
Other gains and losses7 1,765 222
Earnings before interest, tax and impairment 8,856 3,701
Impairment of property, plant and equipment and intangibles5 - (37,071)
Earnings / (loss) before interest and tax 8,856 (33,370)
Interest income 11 23
Interest expense (3,026) (3,537)
Profit / (loss) before tax 5,841 (36,884)
Tax expense (1,529) (81)
Profit / (loss) for the period attributable to owners of the Company 4,312 (36,965)
Items that may subsequently be reclassified to profit or loss
Other comprehensive loss - hedging reserve (821) (518)
Items that may not subsequently be reclassified to profit or loss
Other comprehensive loss - revaluation reserve - (1,622)
Other comprehensive income - deferred tax on revaluation reserve - 454
Total comprehensive income / (loss) 3,491 (38,651)
Basic earnings per share (cents) 2.6 (22.3)
Diluted earnings per share (cents) 2.6 (22.3)
1. The Group has reclassified the prior period balances between Cost of sales and Operating expenses to align with the presentation at 31 December 2020.
Refer to Note 1 for details.

4
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
Statement Of Changes In Equity
FOR THE PERIOD ENDED 31 DECEMBER 2020
Notes
Share
capital
$000
Retained
earnings
$000
Hedging
reserve
$000
Revaluation
Reserve
$000
Treasury
shares
$000
Share
-based
payments
$000
Total
equity
$000
Balance at 1 July 2020156,66922,541(85)4,552(2,896)509181,290
Comprehensive income
Profit after tax - 4,312 - - - - 4,312
Other comprehensive (loss) /
income
Hedging reserve (net of tax) - - (821) - - - (821)
Release of revaluation to
retained earnings (net of tax)
- 766 - (766) - - -
Total comprehensive income - 5,078(821)(766) - - 3,491
Transactions with owners
Employee share schemes - 174 - - - 32206
Unaudited balance at
31 December 2020
156,6692 7, 7 9 3(9 0 6)3,786(2 ,896)54118 4,987
Balance at 1 July 2019156,66994,142(102)5,832(2,896)256253,901
Adoption of NZ IFRS 16 (net of tax) - (9,762) - - - - (9,762)
Restated total equity at the
beginning of the financial year
156,66984,380(102)5,832(2,896)256244,139
Comprehensive income
Loss after tax - (36,965) - - - - (36,965)
Other comprehensive (loss) /
income

Hedging reserve (net of tax) - - (518) - - - (518)
Asset revaluation (gross) - - - (1,622) - - (1,622)
Deferred tax on above - - - 454 - - 454
Total comprehensive income - (36,965)(518)(1,168) - - (38,651)
Transactions with owners
Dividends paid - (2,518) - - - - (2,518)
Employee share schemes - 66 - - - 48114
Unaudited balance at
31 December 2019
156,66944,963(620)4,664(2,896)304203,084

5
STEEL & TUBE HALF YEAR REPORT 2021
The accompanying notes form part of these financial statements.
Balance Sheet
AS AT 31 DECEMBER 2020
Susan Paterson
Chair
Karen Jordan
Director
Notes
Unaudited
December 2020
$000
Audited
June 2020
$000
Current assets
Cash and cash equivalents 23,880 17,418
Trade and other receivables
65,849
73,797
Inventories
98,271
101,061
Income tax refund
-
432
Derivative assets
178
103
Assets held for sale6
6,035
950
194,213
193,761
Non-current assets
Deferred tax
10,385
11,595
Income tax refund
1,341
908
Property, plant and equipment
33,513
41,009
Intangibles5
12,678
11,886
Right-of-use assets7
86,805
87,086
144,722
152,484
Total assets
338,935
346,245
Current liabilities
Trade and other payables
42,777
39,105
Provisions9
3,188
6,896
Derivative liabilities
1,436
223
Short term lease liabilities7
12,065
12,647
59,466
58,871
Non-current liabilities
Borrowings4
-
10,000
Provisions
781
1,024
Long term lease liabilities7
93,701
95,060
94,482
106,084
Equity
Share capital
156,669
156,669
Retained earnings
27,793
22,541
Other reserves
525
2,080
184,987
181,290
Total equity and liabilities
338,935
346,245
These financial statements and the accompanying notes were authorised by the Board on 25 February 2021.
For the Board

6
The accompanying notes form part of these financial statements.
INTERIM FINANCIAL STATEMENTS
Statement Of Cash Flows
FOR THE PERIOD ENDED 31 DECEMBER 2020
Notes
Unaudited
December
2020
$000
Unaudited
December
2019
$000
Cash flows from operating activities
Customer receipts234,698 244,616
Interest receipts 11 23
Payments to suppliers and employees(207,910) (224,211)
Payments for interest on leases (2,540) (2,868)
Interest payments (259) (509)
Payment for litigation settlement9 (1,563) -
Insurance proceeds received 9 1,563 -
Net cash inflow from operating activities 24,000 17,051
Cash flows from / (to) investing activities
Property, plant and equipment disposal proceeds1,839 64
Property, plant and equipment and intangible asset purchases(2,840) (3,945)
Net cash inflow / (outflow) from investing activities (1,001) (3,881)
Cash flows (to) / from financing activities
Repayment of borrowings (10,000)-
Dividends paid - (2,518)
Payment for leases (6,537) (6,597)
Net cash (outflow) / inflow from financing activities (16,537) (9,115)
Increase in cash and cash equivalents 6,462 4,055
Cash and cash equivalents at the beginning of the year 17,418 9,010
Cash and cash equivalents at the end of the year 23,880 13,065
Represented by:
Cash and cash equivalents 23,880 13,065
23,880 13,065

7
STEEL & TUBE HALF YEAR REPORT 2021
Notes To The Interim Financial Statements
FOR THE PERIOD ENDED 31 DECEMBER 2020
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Steel & Tube Holdings Limited (the Company or Steel & Tube) is registered under the Companies Act 1993
and is a FMC Reporting Entity under the Financial Markets Conduct Act 2013. The Company is a limited
liability company incorporated and domiciled in New Zealand. The Group comprises Steel & Tube Holdings
Limited and its subsidiaries.
The Group’s principal activities relate to the distribution and processing of steel products, fastenings and
metal floor decking.
The registered office of the Company is 7 Bruce Roderick Drive, East Tamaki, Auckland 2013, New Zealand.
These financial statements have been reviewed, not audited, and were approved for issue on
25 February 2021.
These financial statements are presented in New Zealand dollars and rounded to the nearest thousand.
Basis of preparation
The Group is a for-profit entity. Its unaudited interim financial statements have been prepared in
accordance with, and comply with, New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with NZ IAS 34: Interim Financial Reporting, IAS 34: Interim Financial Reporting, and the NZX
Main Board Listing Rules (issued 1 January 2019).
These financial statements do not include all the information required for an annual financial report and
consequently should be read in conjunction with the audited financial statements of the Group for the year
ended 30 June 2020. Non-GAAP measures shown in the interim financial statements are defined in the
2020 Annual Report.
These financial statements have been prepared using the same accounting policies and methods of
computation as the financial statements for the year ended 30 June 2020.
The preparation of the interim financial statements requires the exercise of judgements that affect
the application of accounting policies, the reported amounts of assets and liabilities, and income and
expenses. Where applicable and based on information available at the time of preparing the interim
financial statements, the Group has updated its judgements, estimates and assumptions adopted since the
audited financial statements of the Group for the year ended 30 June 2020.
The Group has reclassified $2.27m from operating expenses to costs of sales in the prior reporting
period ended 31 December 2019 to better reflect the nature of labour costs that are directly associated
with deriving revenue following a review of business activities during the current reporting period. This
reclassification has been made to align with the current year presentation in the Statement of Profit or Loss
and Other Comprehensive Income. The Group has also amended comparative figures in Note 3 Operating
Segments in relation to depreciation and interest recognised under NZ IFRS 16 to align with financial
reports received by the CEO in the current year.

8
2. COVID-19
The World Health Organisation declared a global pandemic on 11 March 2020 due to the outbreak and
spread of COVID-19. During the reporting period, the New Zealand Government announced changes in
COVID-19 Alert Levels across the periods of August to October 2020. The recovery from COVID-19 alert
level shutdowns and the return to level 3 in Auckland has had an impact on the Group’s revenues during
the reporting period. Overall trading activity has been stronger than expected with revenues progressively
returning to prior year levels over the reporting period. The Group’s restructuring and site consolidation
actions undertaken during 2020 in response to the impacts of COVID-19 and improved trading conditions
have led to a reduction in operating expenditure with lower labour costs and bad and doubtful debts.
An assessment of the impact of COVID-19 on the Group’s interim financial statements as at 31 December
2020 is set out below, based on information available at the time of preparing the interim financial
statements. The Group has also undertaken an internal valuation to compare the current carrying value of
the Group’s assets against their recoverable amount at the Group level, as well as for each cash generating
unit (CGU) identified as at 31 December 2020. Further information on this assessment is outlined in Note 5.
The Group has also assessed the recoverability of its deferred tax assets as part of the assessment outlined
in Note 5. The Group continues to have an unrecognised deferred tax asset of $15.5m (gross) in relation to
tax losses that remain available for the Group to use in future years.

9
STEEL & TUBE HALF YEAR REPORT 2021
BALANCE SHEET ITEMCOVID-19 ASSESSMENT
Trade receivablesThe Group has undertaken a review to ensure that the provision for
expected credit losses reflects the current estimated exposure of
defaults, applying a consistent approach with 30 June 2020. With the
improvement in ageing of trade receivables balance and increasing
collection rates, the Group has reduced the provision for doubtful debts
to $2.2m as at 31 December 2020 (30 June 2020: $2.4m).
Property, plant and
Equipment
Plant and equipment are stated at historical cost less depreciation and
impairment. Following the completion of site exits as planned, the
Group has not identified any indicator of impairment of its plant and
equipment in this reporting period. The Group has therefore concluded
no impairment is required as at 31 December 2020.
Right-of-use assets/Lease
liabilities
Following the impairment recognised on the Group’s right-of-use
leased assets as at 30 June 2020, the Group has subsequently recognised
gains upon surrendering some of these leases and exercising a
termination of a lease earlier than expected. This has resulted in a total
gain of $0.78m being recognised which is a partial recovery of the total
impairment charge recorded as at 30 June 2020.
Based on the current market outlook, the Group has assessed that
sub-lease assumptions previously applied remain unchanged from 30
June 2020. The Group has therefore concluded no further impairment is
required as at 31 December 2020.
BorrowingsThere have been no changes to the covenants and waivers granted by
the Group’s banking partners since 30 June 2020. The Group continues
to meet its covenant requirements of the current facility and is still
under the relief period in relation to waivers granted by the Group’s
banking partners.
InventoriesThe Group has undertaken a review of its inventory holdings to
identify any inventory of higher risk particularly slow moving and aged
inventory, applying a consistent approach with 30 June 2020. Based
on the assessment performed, the Group continues to recognise a
provision for write-downs of $1.0m as at 31 December 2020 (30 June
2020:$1.0m).
ProvisionsThe Group has reduced its provisions by $1.9m in line with the
completion of the associated site exits and restructuring activities
during the reporting period.

10
3. OPERATING SEGMENTS
The Group has identified two reporting segments as at 31 December 2020 having regard for the criteria
outlined in NZ IFRS 8 Operating Segments (NZ IFRS 8). The Group’s Chief Operating Decision Maker
(being the CEO) receives financial reports which aggregate the activities of the Group’s various operating
segments into two distinct divisions, being Distribution and Infrastructure.
These reportable segments have been determined by having regard to the nature of products, services
and processes the various business units undertake to service customers. The Group has a diverse range of
customers from various industries, with no single customer contributing more than 10% of the Group’s revenue.
The Group derives its revenue from the distribution and processing of steel and associated products.
Within the Distribution business, the primary focus is on the distribution of steel products and fasteners,
servicing similar customer groups, sharing similar business models and trading skills, and using similar sales
channels. The majority of product is traded and sales staff are tasked to know the full range of products.
Within the Infrastructure business, product is predominately steel product which is bought and processed/
manufactured in warehouse facilities for project/contract customers.
The CEO uses EBIT as a measure to assess the performance of segments. The segment information
provided to the CEO for the period ended 31 December 2020 is as follows:
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
December 2020$000$000$000 $000
Timing of revenue recognition
At a point in time131,852 47,3919 1 7 9, 2 5 2
Over time
- 47,063 - 4 7, 0 6 3
Revenue from external customers
131,852 94,454 9 226,315
Depreciation and amortisation(4,698)(3,195)(1,332)(9,225)
Segment EBIT 5,310 3,546 - 8,856
Interest on leases (1,466)(1,054)(20)(2,540)
Interest - others (net)(475)
Reconciled to Group Profit Before Tax5,841
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
December 2019$000$000$000 $000
Timing of revenue recognition
At a point in time135,405 52 , 616 9 188,030
Over time
- 43,9 35 - 43,935
Revenue from external customers
135,4 05 96,551 9 231,965
Depreciation and amortisation(5,228)(3,415)(1,689)(10,332)
Impairment of intangibles(15,6 0 2)(21,469) - (3 7, 0 7 1)
Segment EBIT (14,230)( 19,14 0 ) - (33,370)
Interest on leases(1,6 47)(1,185)(36)(2,868)
Interest - others (net)(646)
Reconciled to Group Loss Before Tax(36,88 4)

11
STEEL & TUBE HALF YEAR REPORT 2021
Depreciation and amortisation recognised as at December 2020 is inclusive of depreciation recognised
under NZ IFRS 16 Leases, which is in line with the financial reports received by the CEO. Comparative figures
have been amended to include depreciation recognised under NZ 1FRS 16 Leases to allow comparison on a
like-for-like basis in line with the financial reports received by the CEO in the current year.
Interest recognised under NZ IFRS 16 Leases is shown separately in the financial reports provided to the
CEO. Comparative figures have been amended to separately disclose interest recognised under NZ IFRS 16
Leases to allow comparison on a like-for-like basis in line with the financial reports received by the CEO in
the current year. Other interest income and expense are not allocated to segments as these are driven by
the central treasury function, which manages the cash position of the Group.
Assets and liabilities are provided to the CEO on a Group basis, and are not separately reported with
respect to the individual operating segments.
Sales between segments are eliminated on consolidation. The amounts provided to the CEO with respect
to segment revenue are measured in a manner consistent with that of the financial statements.
4. BORROWINGS
The Group has syndicated committed bank borrowing facilities of $70m, comprising a $25m
Working Capital facility with a maturity date of 30 November 2021 (31 December 2019 and 31 December
2020: $nil drawn), and a $45m Revolving Facility with a maturity date of 30 November 2021 (31 December
2019: $24m drawn and 31 December 2020: $nil drawn).
As at 31 December 2020, the Group had successfully negotiated an amendment to its current banking
facility for a revised three year term and a $50m Revolving Cash Advance Facility.
5. IMPAIRMENT TESTING AND INTANGIBLES
NZ IAS 36 Impairment of Assets (“NZ IAS 36”) requires the Group to assess for any indicators of
impairment at the end of each reporting period and also to test the recoverable amount of the Group’s
assets against its carrying value to assess whether there is any indication that an asset may be impaired.
The recoverable amount is the higher of an asset’s fair value less costs of disposal (“FVLCD”) and value-in-
use (“ VIU”).
As at 31 December 2020, the Group’s net assets is valued higher than its market capitalisation value which
is assessed to be an indicator of impairment. However since 30 June 2020 the gap between these values
has decreased due to the Group’s improved trading performance in the current period. As a result of this
indicator, the Group has undertaken an internal valuation to compare the current carrying value of each
cash generating unit (CGU) against their recoverable amount.
The Group has completed FVLCD calculations for each CGU and the recoverable amounts for each
CGU has increased from the calculations performed at 30 June 2020. Key assumptions used are broadly
consistent with previous impairment testing performed at June 2020. In particular the Group has applied
the same terminal growth rate, updated the Weighted Average Cost of Capital for current market
conditions and considered the most recently available market information for financial forecasts. With
improved trading performance across the Group, there remains sufficient headroom in all CGUs based
on the FVLCD calculations to support the carrying value of each CGU’s assets. The Group has therefore
concluded that no impairment is required as at 31 December 2020. The Group has also confirmed that no
reversal of the previous impairment of intangible assets should be made.

12
For the period ended 31 December 2019, the Group concluded that the carrying value of goodwill was
fully impaired and as a result, the Group recognised a goodwill impairment charge of $37.1m in the
Statement of Profit or Loss and Other Comprehensive Income.
6. ASSETS HELD FOR SALE
On 22 December 2020, the Group signed an unconditional agreement to sell its property at 26 -32
Hautonga St, Petone, Lower Hutt for $7.0m on a sale and lease back basis. The sale is expected to be
completed on 22 March 2021. The property, plant and equipment related to the Hautonga site have been
measured at a carrying value of $6.0m and presented as held for sale.
7. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
During the six months ended 31 December 2020, the Group had lease additions and modifications of $6.1m
with a corresponding gain recognised upon reassessment of $0.34m. The surrender and early termination
of leases have resulted in a reduction of $0.3m to the right-of-use assets and a gain of $1.1m recognised.
The Group’s lease liabilities have also been adjusted for these changes.
8. RELATED PARTIES
The Company has related party relationships with its subsidiaries and with key management personnel.
There have been no material changes in the nature or amount of related party transactions for the Group
since 30 June 2020.
9. LITIGATION
In December 2016 the Commerce Commission (the Commission) announced that it had completed its
investigation in relation to several steel companies, and that it intended to prosecute multiple companies
under the Fair Trading Act, including Steel & Tube. The Commission’s prosecution of Steel & Tube related to the
inadvertent use of a testing laboratories logo on test certificates, and application of testing methodologies.
In October 2018 the Auckland District Court imposed a fine of $1.885m, which was subsequently increased
by the High Court to $2.009m in August 2019. Both Steel & Tube and the Commission appealed the
decision. The Court of Appeal hearing was held on 12 August 2020. In November 2020, the Court of Appeal
ruled that the fine be reduced to $1.56m.
As a result of the court judgement, the Group subsequently paid the $1.56m fine in December 2020.
The provision previously held in relation to this prosecution has been released as at 31 December 2020 and
the insurance claim was received. There was no net impact on the reported profit for the period.
10. SUBSEQUENT EVENTS
As outlined in Note 4, the Group has executed an agreement on 15 February 2021 with ANZ for a revised
three year $50m Revolving Cash Advance Facility.
On 25 February 2021 the Board declared an unimputed interim dividend of 1.21 cents per share ($2.0m) to
be paid on 26 March 2021.

13
STEEL & TUBE HALF YEAR REPORT 2021
PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz

Independent auditor’s review report
To the shareholders of Steel & Tube Holdings Limited
Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of Steel & Tube Holdings Limited (the Company)
and its controlled entities (the Group), which comprise the balance sheet as at 31 December 2020, and
the statement of profit or loss and other comprehensive income, the statement of changes in equity
and the statement of cash flows for the six month period ended on that date, and selected explanatory
notes and other information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 31 December 2020, and its financial performance and cash
flows for the six month period then ended, in accordance with International Accounting Standard 34
Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ
SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for the
review of the interim financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other e thical
responsibilities in accordance with these ethical requirements. Other than in our capacity as auditor
we have no relationship with, or interests in, the Group.
Directors’ responsibility for the interim financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34 and for
such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with IAS 34 and NZ IAS 34. A review of interim financial statements
in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these interim financial
statements.

14
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are required
to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is
Christopher Barber.
For and on behalf of:
Chartered Accountants Auckland
25 February 2021

REGISTERED OFFICE
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 4 569 2453
Email: info@steelandtube.co.nz
Website: www.steelandtube.co.nz
SHARE REGISTRY
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand
Ph: +64 9 488 8777 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz
AUDITORS
PricewaterhouseCoopers

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



Results for announcement to the market
Name of issuer Steel & Tube Holdings Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$226,315 (2.4%)
Total Revenue $226,315 (2.4%)
Net profit/(loss) from continuing
operations
$4,312 111.6%
Total net profit/(loss) $4,312 111.6%

Interim Dividend
Amount per Quoted Equity
Security
$0.01210000
Supplementary dividend per
Quoted Equity Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date 12 March 2021
Dividend Payment Date 26 March 2021
Current period Prior comparable period
(31 December 2019)
Net tangible assets per Quoted
Equity Security
$1.04 $1.11
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Non-GAAP financial information
Steel & Tube uses several non-GAAP measures when
discussing financial performance. This includes normalised
EBIT. Management believes that these measures provide
useful information on the underlying performance of Steel &
Tube’s business. They may be used internally to evaluate
performance, analyse trends and allocate resources. Non-
GAAP financial measures should not be viewed in isolation
nor considered as a substitute for measures reported in
accordance with NZ IFRS. Reconciliations of non-GAAP
measures to GAAP measures are detailed within this
announcement.
Steel & Tube reports its normalised post NZ IFRS 16 EBIT as
$7.6m for HY2021. Further details on the unusual

transactions/non-trading adjustments are included in the
investor presentation for the six months ended 31 December
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.
 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

26 February 2021

Unaudited financial statements accompany this announcement.

---

26 February 2021
STU / NZX ANNOUNCEMENT


STU REPORTS STRONG EARNINGS IMPROVEMENT FOR 1H21
Unaudited results for the six months to 31 December 2020 (1H21)

Steel & Tube reports 33% improvement in 1H21 normalised Earnings before Interest and
Tax (EBIT) to $7.6m, with result above top end of December 2020 guidance

Strong balance sheet with all debt repaid and $23.9m cash in bank to support capital
investment and growth strategy

40% increase in operating cashflow to $24.0m

Progressive recovery across reporting period following COVID-19 lockdown, with Q2 trading
returning to prior year levels

Benefiting from strategy execution, particularly network consolidation, digital investment,
and significant structural cost reductions

Turnaround in performance and the improved economic outlook support the resumption of
dividends with interim dividend of 1.2 cents per share declared (unimputed)


Strong pipeline of secured contract work for 2H21 with improving activity in most sectors


Maintaining cautiously optimistic view to future economic outlook. Final dividend expected
in line with policy, assuming current trading performance continues and no further impact
from COVID-19

$m 1H21 1H20
Revenue 226.3 232.0
EBIT 8.9 (33.4)
Non-trading adjustments
1
1.3 (39.1)
Normalised EBIT
(excluding non-trading adjustments)
7.6 5.7
NPAT/(NLAT) 4.3 (37.0)
Net Cash / (Debt) 23.9 (10.9)
Net operating cash flow 24.0 17.1

Steel & Tube Holdings Limited (NZX: STU) has reported a 33% improvement in normalised EBIT in the
first six months of the financial year, as it benefits from the execution of strategic initiatives,
particularly network consolidation and digital investment, and realises sustainable benefits from
structural cost reductions.
The company’s customer base covers many sectors of New Zealand’s economy and it has seen
growing market demand in some sectors, especially residential construction, which is helping to
offset a softer non-residential construction market.

1
1H21 non-trading adjustments of $(1.3)m being $0.8m from reversal of lease impairment and $0.5m gain on sale of
property. 1H20 non-trading adjustments were $2.0m restructuring and relocation costs and a non-cash goodwill
impairment of $37.1m. Further details included in appendix to the Investor Presentation.

Benefits are being realised from the strategic investment in digital, with the introduction of
webshops and ecommerce channels in 1H21, as well as the development of advanced data analytics
platforms for segmentation, pricing and product traceability.
A Customer Experience team has been established and customer satisfaction levels (NPS) continue
to trend upwards.
The network consolidation programme is now mostly completed, with a corresponding right sizing of
the labour force resulting in savings of ~$2m in 1H21. The focus continues on gross margin dollar
improvement and further cost efficiencies.
Safety remains a priority and the company continues to have a focus on critical risks, with a TRIFR
2
of
3.35 which is below estimated industry averages. Investment in product quality systems continues,
including Lloyds Register domestic and offshore steel mill attestation and test certificate
verifications.
Steel & Tube operates through two divisions. The Distribution division saw a steady return to prior
trading levels during the period with a doubling of earnings compared to prior year. The
Infrastructure division softened slightly due to increased competition and tightening market
conditions in some sectors, particularly vertical construction. Pleasingly, project work and contracts
continue to be won, with a solid pipeline of activity secured.
Financial Performance
Revenue of $226.3m was slightly down on prior year, with the flow on effect of COVID-19 on Q1
sales, before a stronger Q2 returning to prior year trading levels.
Margins have progressively recovered to prior year levels in most sectors (excluding the softer non-
residential construction market) and as gains from cost efficiencies and pricing disciplines are
realised.
Earnings before Interest and Tax were $8.9m for the six months, with normalised EBIT of $7.6m, up
33% on the prior comparative period (pcp) and above the December 2020 guidance range.
The company has reported a Net Profit After Tax of $4.3m, up from a loss of $(37.0)m the prior year.
Operating cashflow increased 40% year on year to $24.0m, with continued improvements in working
capital management. All debt was repaid during the period, with a net cash position of $23.9m as at
31 December 2020 to support capital investment and growth initiatives.
Given the turnaround in performance and the improved economic outlook, the Board has been
pleased to resume dividend payments with an interim dividend of 1.2 cents per share (unimputed),
in line with Steel & Tube’s dividend policy of 60% - 80% of NPAT.
CEO, Mark Malpass, said: “The results of the significant efforts to deliver a turnaround in financial
performance are starting to be seen, with sustainable cost reductions and a strong platform from
which Steel & Tube can move forward. We continue to take actions to streamline the business

2
Total Recordable Injury Frequency Rate

operating model, and accelerating investment in digital technology is providing a critical platform to
ensure ease of doing business for customers.”
Chair of Steel & Tube, Susan Paterson, commented: “We have a clear strategic plan and are well
positioned to invest into growth with a strong balance sheet. Our improved financial performance
and return to dividends reflects a leaner cost structure and efficient national branch network,
leadership positions across many product categories, an enhanced digital platform and an engaged
workforce. Our priority focus remains on gross margin dollar improvement and further cost
efficiencies.”
Outlook
Current indicators point to a stable economic outlook with strong residential and infrastructure
performance, and an improving manufacturing sector, partially offset by constraints in
non-residential construction and labour and international freight cost pressures. The Board is
maintaining a cautiously optimistic view to future economic activity and expects a continuation of
current trading performance trends.
A final FY21 dividend is expected in line with policy, assuming current trading performance
continues and no further impact from COVID-19.
Change of Auditors
Following a formal request for proposal process, the Board has recommended that KPMG be
appointed as the Company’s auditor for FY22. This appointment is subject to shareholder approval
at the Annual Shareholders Meeting. The Board has been very satisfied with the external audit
services provided by PwC and would like to acknowledge the service and support provided by PwC
over many years. PwC will remain as auditor of Steel & Tube until the completion of the financial
statements and annual report for the current financial year ending 30 June 2021.
ENDS
For media or investor enquiries, please contact: Jackie Ellis Tel: +64 27 246 2505 or
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

---

Steel & Tube
1H21 Results Presentation
For the six months ended
31 December 2020

1H21 OVERVIEW
•Normalised EBIT result above top end of December 2020
guidance ($6.5m to $7.5m); 33% improvement on pcp
•Strong balance sheet with all debt repaid and $23.9m
cash in bank
•40% improvement in operating cashflow
•COVID-19 impact on Q1 sales, with stronger Q2 returning
to prior year trading levels
•Strategic delivery -network consolidation, digital
investment, significant structural cost reductions
•Market improving with residential construction,
infrastructure and manufacturing offsetting softer
non-residential construction market
•Robust pipeline of secured work with a number of new
projects and longer term contracts
•Turnaround in performance and the improved economic
outlooksupport the resumption of dividends in line with
policy of 60% -80% of NPAT
2
REVENUE
$226.3M
ROBUST
OPERATING
CASHFLOW
$24.0M
EBIT $8.9M
NORMALISED
EBIT $7.6M
1
DEBTREPAID
AND$23.9M
CASH
NPAT$4.3M
INTERIM
DIVIDEND
1.2 CPS
UNIMPUTED
1)1H21 non-trading adjustments of $(1.3)m being $0.8m from reversal of
lease asset impairment and $0.5m gain on sale of property. Further details
included in appendix to this presentation.

SECTOR EXPOSURE
3
Non-food
Manufacturing
23%
Food
Manufacturing
13%
Merchants/Other
11%
Residential
Construction
17%
Non-Residential
Construction
22%
Infrastructure,
14%
SHARE OF 1H21 SALES
Advantage of diversified business, with limited exposure to any one sector
•53% Construction and
Infrastructure
•36% Manufacturing
•11% Merchants/other

MARKET CONDITIONS
4
Activity remains strong in most sectors post Covid-19 lockdown, strong recovery in residential
construction, decline in non-residential consents continue
Source: Statistics New Zealand, BNZ –BusinessNZPMI
2,500
2,700
2,900
3,100
3,300
3,500
3,700
3,900
M
2
(000)
Rolling 12 months
Non-Residential Consents -Floor Area
Prior YearCurrent Year
5,300
5,400
5,500
5,600
5,700
5,800
5,900
6,000
6,100
6,200
30.0
35.0
40.0
Dec-18Dec-19Dec-20
m
2
(000s)
Consents (000s)
Rolling 12 months
Residential Consents
ConsentsFloor Area
Consents
Annual YoY: +4.8%
Dec 20 YoY: +26.9%
Floor Area
Annual YoY: +3.6%
Dec 20 YoY: +20.7%
Annual YoY: -5.0%
4Q20 YoY: +8.3%
Value
Annual YoY: -5.5%
Dec 20 YoY: 16.3%
Floor Area
Annual YoY: -18.6%
Dec 20 YoY: 52.4%
Jan 21: 57.5
MoMchange: +9.2
Varfrom LT Ave: +4.5
600
700
800
900
1,000
1,100
1,200
MarJunSepDec
m3 (000s)
Ready mixed concrete
Current Year
Prior Year
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FebAprilJuneAugustOctDec
Performance of Manufacturing Index
(PMI)
Current Year
Prior Year

5
OUR PURPOSE:
To make life easier for our
customers needing steel solutions
OUR PURPOSE:
To make life easier for our customers needing steel solutions
Providing a one-stop-shop for the most
essential steel products –from floor to roof
and everywhere in between
Doing everything we can to make it easy for
our customers to do business with us
Always looking for ways to work smarter
Using technology and great thinking to pull it
all together and enable a better business
Building one great team right across the
Steel & Tube business

Strong foundation now in place, focus on growth and continual improvement
BUILDING OUR BUSINESS: KEY INITIATIVES
6
PROJECT STRIVE:
CHANGE PROGRAMME,
OPERATIONAL RESET
FY17 to FY20
BUILDING ON OUR FOUNDATION, CONTINUAL IMPROVEMENT
1H21
✓Priority focus on quality, health and
safety
✓Investment in our people
✓Network consolidation
✓Significant cost reduction and
efficiencies
✓Introduced digital and ecommerce
platform
✓Strengthened balance sheet
✓Introduced webshopsand ecommerce channels
✓Established centralised Customer Experience team
✓Delivered right sized labour force while improving
engagement
✓Continued to deliver cost efficiencies
✓Improving customer satisfaction
✓Development of advanced data analytics platforms for
segmentation, pricing and product traceability
✓Continued investment into quality, safety, training and
development

1H21 GROUP FINANCIAL SUMMARY
1)1H21 non-trading adjustments of $(1.3)m being $0.8m from reversal of lease asset impairment and $0.5m gain on sale of property. 1H20 non-trading adjustments
were $2.0m restructuring and relocation costs and a non-cash goodwill impairment of $37.1m. Further details included in appendix to this presentation.
7
$m1H211H20
Revenue
226.3232.0
EBIT
8.9(33.4)
Non-trading adjustments
1
1.3(39.1)
Normalised EBIT
(excluding non-trading adjustments)
7.65.7
NPAT/(NLAT)
4.3(37.0)
Net Cash / (Debt)
23.9(10.9)
Net operating cash flow
24.017.1
•Normalised EBIT at top end of guidance; up
33% on pcp
•Q2 sales returned to prior year levels with
earnings improvement from cost-out
programme and efficiencies
•Continued working capital disciplines
supporting increased cashflow
•Net Profit After Tax of $4.3m, up from a loss
of $(37.0)m the prior year
•Strengthened balance sheet with cash
available to support capital investment and
growth strategy

REVENUE & MARGIN
•Progressive sales recovery in Q1 following
L4 lockdown, with Q2 sales back to prior
year levels
•Post L4 lockdown, margin impacted by
product mix and pricing pressures as well
as reduced activity in the non-residential
construction market across the period
•Margins progressively recovered to prior
year levels in most sectors (excluding the
softer non-residential construction
market) and as gains from cost
efficiencies and pricing disciplines were
realised
8
Impact of COVID lockdown still being seen in Q1, with recovery in Q2. Key focus remains on
gross margin dollar improvement and continuing efficiencies.
10.0%
15.0%
20.0%
25.0%
0
50
100
150
200
250
300
2H191H202H201H21
$M
Sales and Margin
SalesMargin %
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
JulAugSepOctNovDec
% of sales
Freight Cost Efficiencies
Current YearPrior Year

NORMALISED OPERATING EXPENSES
•Overall prudent and disciplined
management of expenditure continues
•Savings in employee costs of $2.2m,
through the accelerated organisation
restructure in 2H20
•Benefits from lower bad and doubtful debts
with continuing focus on managing risk and
reduced depreciation
9
1. Opexfigures have been normalisedto exclude non-trading adjustments. See
Appendix slidesfor definitions of financial terms and reconciliation of normalised
results.
$m1H211H201H20N
1
% Change
Normalised
OPEX38.946.144.1(12)%
44.1
38.9
(2.2)
(2.0)
(1.0)
36
37
38
39
40
41
42
43
44
45
Dec 19
Normalised
Opex
Employee and
Restructuring
Bad & Doubtful
debts
Depreciation
Reduction
Dec 20 Opex
$M
1H20:1H21 Operating Expenses*
20%
19%
17%
15%
16%
17%
18%
19%
20%
21%
1H201H20N1H21
Opex/Sales %
Operating expenses reduced by 12% from prior year, on a normalised basis
1

WORKING CAPITAL AND CASHFLOW
10
•40% improvement in operating cash
flow year on year
•Further working capital improvements
targeted
•2H21 cash expected to benefit from
property sale proceeds of ~$6.6m
Cashflow
$m
1H211H20
Net operating cash flow24.017.1
Lease financing costs (NZ IFRS 16)(6.5)(6.6)
Cashflow after lease financing costs17.510.5
Working Capital KPIs
1H211H20FY20
Trade Receivables: DSO424342
Inventories: DIO109111101
Trade Payables: DPO
353031
•On-time debt collection rates have
continued to improve
•Inventory levels in line with expectations
and reflecting seasonal variations
•No major impact from supply channel
disruptions at this stage
DSO: Days Sales Outstanding
DIO: Days Inventory Outstanding
DPO: Days Payable Outstanding

BALANCE SHEET
•Repaid remaining borrowings in 1H21
•Net cash increased by $16.5m from June-20 to
$23.9m
•Bank covenant waivers and revised covenants
remain in place for FY21
•New $50m debt facility secured
•Resumption of dividend payments with an
interim dividend of 1.2 cents per share
(unimputed), in line with Steel & Tube’s
dividend policy of 60% -80% of NPAT
$m1H211H20FY20
Trade and other receivables95.987.292.7
Inventories98.3120.0101.1
Trade and other payables(59.5)(53.9)(58.9)
Working Capital134.7153.3134.9
Cash and cash equivalents23.913.117.4
Borrowings-(24.0)(10.0)
Net Cash/(Debt) 23.9(10.9)7.4
11
Tight control over balance sheet, with substantial bank funding lines secured

CAPITAL EXPENDITURE
•1H21 capex of $2.8m (1H20 :$3.9m)
•Capital spend remains in line with D&A
•Priority capital allocation to projects supporting
digital and business improvement/growth
•Increased cashflow will support capital
investment programme in 2H21
•FY21 capex expected to align with D&A
Digital Projects in 1H21:
•Webshop
•Traceability
•Data analytics
12
Prudent management of capital expenditure with increased allocation to Digital
and Growth projects
Digital/
Growth
68%
Maintenance
32%
1H21 CAPEX SPEND

Distribution
•Significant improvement year on year,
doubling of earnings compared to pcp
•Increasing demand during Q2
DIVISIONAL PERFORMANCE
13
Distribution
1H211H20
$m
Revenue131.9135.4
Normalised EBIT4.42.2
EBIT 5.3(14.2)
Infrastructure
1H211H20
$m
Revenue94.596.6
Normalised EBIT3.23.5
EBIT 3.5(19.1)
See Appendix slides for definitions of financial terms and reconciliation of normalisedresults.
Steady return to prior trading levels in Distribution; Infrastructure facing tightening market conditions in
some sectors
Infrastructure
•Impacted by the softening vertical
construction
•Continuing to win key project work
•Focus on gross margin dollars
improvement

MOVING FORWARD

OUR STRENGTHS
•Established leadership positions in multiple categories of the steel market
•Diversity across multiple sectors in the steel market, reducing exposure to any one sector
and providing ability to cross-sell to customers
•Streamlined and efficient national network, covering all main regions and towns
•Leading the way in the sector with digital platforms providing efficient access for customers
•Trusted partner by our customers –continuing to improve service offer, with increasing NPS
•Investment in product quality systems including Lloyds Register domestic and offshore steel
mill attestation and test certificate verifications
•Strong balance sheet with capacity to invest into growth
•Experienced board and leadership teams
•Focus on people, communities, environment, health and safety -excellent employee
engagement and eNPS
15
See Glossary slide for definitions of NPS and eNPS

CREATING A SUSTAINABLE BUSINESS
16
SHAREHOLDER VALUE
Progressing towards long term sustainable returns
SAFETY
▼TRIFR: 3.35 (vs 3.65 prior year) below industry
standards
CUSTOMER FOCUS
▲NPS Score YTD 39
OPERATIONAL AND SUPPLY CHAIN EXCELLENCE
FY21 Q2
▼Waste to landfill: 103.31 ton
▲Fuel consumed: 142.2 (000s) ltrs
▼Electricity consumed: 1,227.5 (000s) kWh
▼Total Greenhouse gas (tCO2-e) 493.0
ONE WINNING TEAM
•Employee Satisfaction score (eNPS) of
13 against industry standard of 9
•Investment into education
-Back to School fund
-Digital Skills Iibrary
-School to Workplace work
experience
-Numeracy and literacy programmes
•Tailored communications for all
employees
-Online tools and two way forums
•Annual Excellence Awards and
recognition programme
▲Change compared to prior quarter FY21 Q1
See Glossary slide for definitions of TRIFR, NPS and eNPS

STRATEGIC FOCUS: INVESTMENT FOR GROWTH
17
•Continue to build best-in-
class digital platform and
customer experience
•Investment into IT and
enhanced data analytics
•Drive gross margin dollars
and operational efficiencies
•Leverage opportunities to
cross sell wide range of
products and services
BUILD ON STRONG BUSINESS
FOUNDATION
•Identify and develop
differentiated expertise
•Expand product ranges,
with high value products
•Work in partnerships with
third parties
•Continue investment in
marketing and promotion
NEW PRODUCT
DEVELOPMENT AND
INNOVATION
BUSINESS GROWTH
•Primary focus on organic
growth
•Continue to consider
opportunities in adjacent
sectors
Focus on high margin, growth opportunities

2H21 OUTLOOK
•Continued focus on improving gross margin dollars and efficient cost structure, supported by a
strong balance sheet
•Accelerating investment in digital technology providing a critical platform to ensure ease of
doing business for our customers
•Mixed sector outlook –residential construction and infrastructure strong with solid pipeline
ahead; manufacturing improving; constraints in non-residential construction, and labour and
international freight cost pressures
•2H21 –seven fewer trading days than 1H21; softer January due to holiday period and following
strong December trading, with positive rebound being seen in February
•Maintaining cautiously optimistic view to future economic environment
•Final dividend expected in line with policy, assuming current trading performance continues
and no further impact from COVID-19
Improving outlook, continue to build on strong foundation with increasing focus on higher margin
growth opportunities

DISCUSSION

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
20

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 1H21 include 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 normalisedearnings 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 periods ended 31 December 2020 (1H21) and 31 December
2019 (1H20) reconcile to normalisedearnings. Non-trading
adjustments of $(1.3) million are included in the 1H21 results.
21
RECONCILIATION OF GAAP TO NON GAAP MEASURES
HalfYearended 31December
$000s
1H211H20
GAAP: Earnings/Loss before interest and tax (EBIT)8,856(33,370)
Add back unusual transactions/non-trading adjustments:
IFRS16 Impairment Reversal(777)
Gain on sale of Property(512)
Goodwill Impairment37,071
Restructuring costs1,490
Site rationalisation execuation costs539
NormalisedEBIT7,5675,730

GLOSSARY OF TERMS
EBIT: Earnings / (Loss) before the deduction of interest and tax. This is calculated as profit for the year
before net interest costs and tax. 1H21 EBIT was impacted by non-trading adjustments of $1.3 million, as
shown in the table above.
eNPS: Employee Net Promoter Score –assists in measuring employee satisfaction and loyalty within the
organisation
NPS: Net Promoter Score –assists in measuring customer satisfaction and loyalty
Normalised EBIT: This means EBIT excluding non-trading adjustments and unusual transactions.
TRIFR: Total Recordable Injury Frequency Rate –an important metric to assess safety performance
Working Capital: This means the net position after Current liabilities are deducted from Current assets.
The major individual components of Working capital for the Group are Inventories, Trade and other
receivables and Trade and other payables. How the Group manages these has an impact on operating cash
flow and borrowings.
22

This presentation has been prepared by Steel & Tube Limited (“STU”).The information in this presentation is of a general nature only. It is not
a complete description of STU.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for
such offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not
take into account any particular prospective investor’s objectives, financial situation, circumstances or needs, and does notpurport to contain
all the information that a prospective investor may require. Any person who is considering an investment in STU securities should obtain
independent professional advice prior to making an investment decision, and should make any investment decision having regardtothat
person’s own objectives, financial situation, circumstances and needs.
Past performance information contained in this presentation should not be relied upon (and is not) an indication of future performance.This
presentation may also contain forward looking statements with respect to the financial condition, results of operations and business, and
business strategy of STU. Information about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this
presentation is a promise or representation as to the future or a promise or representation that an transaction or outcome referred to in this
presentation will proceed or occur on the basis described in this presentation. Statements or assumptions in this presentation as to future
matters may prove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitutefor, the
information provided in STU’s financial statements available at www.steelandtube.co.nz.
STU and its related companies and their respective directors, employees and representatives make no representation or warranty of any
nature (including as to accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any
errors in or omissions from, or for any loss (whether foreseeable or not) arising in connection with the use of or reliance on, information in this
presentation.
DISCLAIMER
23