Steel & Tube Holdings Limited/Announcement

Steel & Tube FY21 Results

Full Year Results23 August 2021STUMaterials

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24 August 2021
STU / NZX ANNOUNCEMENT

7 Bruce Roderick Drive, East Tamaki, 2013, Auckland PO Box 30543, Botany, 2163, Auckland
P 04 570 5000 F 04 570 2453www.steelandtube.co.nz

STEEL & TUBE FY21 RESULTS FOR YEAR ENDED 30 JUNE 2021
STRONG RETURN TO PROFIT FOR STEEL & TUBE
•

Results improvement driven by positive economic activity and execution of strategic initiatives
that have delivered customer growth and significant structural cost reductions
•

Revenue up 15% to $480.0m, Earnings Before Interest and Tax (EBIT) significantly improved to
$21.8m with normalised EBIT
1
up from $0.4m in FY20 to $19.0m and return to profitability with
net profit after tax of $16.1m
•

Strong balance sheet with all debt repaid and $25.0m in net cash at year end, well placed as we
enter the current COVID lockdown
•

Robust operating cashflow resulting from continued improvement in working capital
management and debt collection
•

Final unimputed dividend declared of 3.29 cents per share, taking total dividends to 4.5 cents per
share
•

Positive market backdrop is expected to continue and the changes implemented along with
identified opportunities will build on current earnings momentum

$m FY21 FY20
Revenue 480.0 417.9
EBITDA 40.7 (37.2)
Non-trading adjustments
1
(2.8) 58.1
Normalised EBITDA (excluding non-trading adjustments) 37.9 20.9
EBIT 21.8 (57.7)
Non-trading adjustments
1
(2.8) 58.1
Normalised EBIT (excluding non-trading adjustments) 19.0 0.4
NPAT/(NLAT) 16.1 (60.0)
Shareholder Equity 196.6 181.3
Net Cash 25.0 7.4
Net operating cash flow 31.5 39.6

Steel & Tube Holdings Limited (NZX: STU) is pleased to report its audited results for the 12 months ended
30 June 2021 (FY21). Financial performance has significantly improved versus the prior year, with positive
economic activity driving increasing demand for steel across a number of sectors and the execution of
strategic initiatives delivering significant structural cost reductions.
Revenue was up 15% to $480.0m, EBIT significantly improved to $21.8m with normalised EBIT up from
$0.4m in FY20 to $19.0m. The company had a strong return to profitability with net profit after tax of

1
Normalised EBITDA and normalised EBIT exclude a number of transactions considered to be non-trading in either nature
or size. FY21 non-trading adjustments of $(2.8)m comprise $1.6m in IFRS16 impairment reversals and $1.2m gain on sale of
properties. FY20 non-trading adjustments were $58.1m, which included non-cash goodwill impairment and other write-
downs due to acceleration of branch network changes, business restructuring and digitisation and the impact of COVID-19.
The company believes excluding these transactions helps users in forming a view of the underlying performance of the
company.

$16.1m. The Board has declared an unimputed final dividend of 3.29 cents per share, taking full year
dividends to 4.5 cents per share.
Continued improvement in working capital management and debt collection assisted in generation of
robust operating cashflow of $31.5m.
All debt was repaid during the year, with $25.0m net cash at year end, and the network consolidation
programme has been largely completed with the $7m sale and leaseback of the Petone site in March
2021. The company has a strong financial platform for Steel & Tube to invest in targeted organic growth
initiatives and market opportunities.
Investments in digital technologies, people, safety and quality are all delivering value and providing a
strong platform for Steel & Tube to move forward with its growth plans in FY22.
Management Commentary: CEO of Steel & Tube, Mark Malpass
FY21 was a challenging time for many businesses and communities and we are incredibly proud of our
people for standing up supporting our customers and delivering a strong result.
Economic activity increased steadily across the year, with a strong recovery in residential construction
and infrastructure activity, an uplift in commercial tenders and more recent growth in manufacturing.
We are now seeing the benefits of our strategic initiatives and particularly our investment in our people
and digital technology. We have seen improvements in all areas, with volumes, revenue and margins
recovering across the year and a strong pipeline of secured work. Customer service and delivery have
been a priority and the target of much of our digital investment as we implement an omni-channel
platform that delivers the optimal experience for our customers.
Significant network changes were executed late in FY20 and we now have a national presence that has
been optimised to ensure customer access to our wide range of products while also achieving significant
underlying cost benefits. While we see continued efficiency opportunities, the network consolidation
programme is largely complete.
Supply chain management has also been an increased focus, with the establishment of the new role of
GM Supply Chain & Distribution Centres early in FY21. We increased fast moving inventory in response to
current global supply chain and capacity issues while at the same time reducing aged inventory. We are
using advanced data analytics to support inventory traceability and pricing governance and controls.
Safety remains a deep commitment throughout the organisation and we have continued our investment
in equipment, critical risk management processes and assurance. We were pleased with our eTRIFR
2
of
1.86, a further improvement on the prior year of 4.86 and well below industry standards.
Steel & Tube operates across two divisions, Distribution and Infrastructure.
Distribution has performed well with growth in sales and gross margins while operating costs have
reduced. We are closely monitoring and responding to pricing pressures driven by global commodity
pricing, shipping and port costs. Inventory has been optimised, aided by technology, to ensure that high
demand products are available and priced appropriately. Our national network, realigned sales team and
Customer Excellence Centre are delivering improved customer service and experience.

2
Employee Total Recordable Injury Frequency Rate per million hours worked

Infrastructure volumes increased with gross margin improvements from the cost out programme being
partially offset with competitive pricing pressure in some areas. Increased activity has been seen in 2H21
as infrastructure and large commercial projects come back on stream. Steel & Tube is well positioned as a
large scale, reliable and trusted provider of choice.
Outlook
The focus for FY22 remains on customer delivery, growing sales in attractive segments and continued
gross margin improvement.
Forward market indicators point to sustained activity levels and there is a positive market backdrop
across Steel & Tube’s diversified market positions – manufacturing has been picking up, rural is
performing well, there is strength in residential construction and infrastructure, and tenders are now
coming through in the commercial space.
The company has a strong pipeline of secured contract work and has identified positive growth
opportunities in a range of sectors and is well positioned to take advantage of these.
Investing in new processing equipment will assist in opening up identified market opportunities as well as
drive operating efficiencies, safety and product quality. In addition, Steel & Tube will continue to invest in
digital technologies to continuously improve the customer experience and expand the customer offer,
providing competitive advantage.
Chair of Steel & Tube, Susan Paterson, said: “We are now seeing the benefits of our strategic initiatives
over the past three years and our thanks go to you our shareholders for your support during this time.
Steel & Tube is moving forward with a robust financial and operating platform, leadership positions
across many product categories and strong employee morale. The Board acknowledges and thanks staff
for their efforts in driving continued improvement during what has been a challenging year. There is
always more to do and while our focus remains on optimising the business, we have also identified a
number of growth opportunities and are investigating potential capital management activities. We look
forward to building on Steel & Tube’s legacy as New Zealand’s leading steel provider and adding value for
shareholders and all stakeholders.”
ENDS
Investor and Analyst Call

An investor and analyst call will be held at 10am (New Zealand time) on Tuesday 24 August. Call details
can be viewed here https://www.nzx.com/announcements/374997. Please note the Sydney dial-in
number has changed to +61 (0)2 7250 5438, all other dial-in numbers remain the same.
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
Richard Smyth
Steel & Tube CFO
Tel: +64 21 646 822
Email: richard.smyth@steelandtube.co.nz

---

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

Results for announcement to the market
Name of issuer Steel & Tube Holdings Limited
Reporting Period 12 months to 30 June 2021
Previous Reporting Period 12 months to 30 June 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$480,023 14.9%
Total Revenue $480,023 14.9%
Net profit/(loss) from continuing
operations
$16,123 N/A
From loss to profit
Total net profit/(loss) $16,123 N/A
From loss to profit

Final Dividend
Amount per Quoted Equity
Security
$0.03290000
Supplementary dividend per
Quoted Equity Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date 10 September 2021
Dividend Payment Date 24 September 2021
Current period Prior comparable period
(30 June 2020)
Net tangible assets per Quoted
Equity Security
$1.11 $1.03
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 EBIT as $19.0m for FY21
(up from $0.4m in FY20). Further details on the unusual
transactions/non-trading adjustments are included in the
investor presentation for the year ended 30 June 2021.
Definitions:
 EBIT: This means earnings before interest and tax and is
calculated as profit for the period before net finance costs
and tax.
 Normalised EBIT: This means EBIT after normalisation
adjustments.
 Normalisation adjustments: These are transactions that
are unusual by size or nature in a particular accounting
period. Excluding these transactions can assist users in
forming a view of the underlying performance of the
Group. Unusual transactions can be as a result of specific
events or circumstances or major acquisitions, disposals
or divestments that are not expected to occur frequently.

Authority for this announcement
Name of person

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

24 August 2021

Audited financial statements accompany this announcement.

---

Steel & Tube
FY21 Results
Presentation
For the 12 months
ended 30 June 2021

FY21 PEFORMANCE OVERVIEW
Strong result driven by delivery on strategic initiatives
BENEFITS OF STRATEGIC INITIATIVES NOW BECOMING CLEAR:
•Volumes and revenues have been rebuilt
•Driving margin improvements
•Improved customer service and delivery
•Significant structural cost reductions –building a resilient underlying business platform
•Optimised working capital and invested in inventory to support customer growth
•Digital initiatives have been embedded and we are now focussed on scaling
POSITIVE MARKET BACKDROP:
•Positive economic activity driving increased demand for steel across a range of sectors
2

•14.9% improvement in revenue YoY
•Substantial 13.5% year on year reduction in
operating expenses now locked in
•Significant improvement in earnings:
3
FY21 RESULTS AT A GLANCE
Significant and sustainable improvement in results
REVENUE
$480.0M
NPAT$16.1M
EBITDA $40.7M
NORMALISED
EBITDA $37.9M
EBIT $21.8M
NORMALISED EBIT
$19.0M
1
ALL DEBT REPAID
$25.0M NET CASH
FINAL DIVIDEND
3.29 CPS
UNIMPUTED
1) FY21 non-trading adjustments of $(2.8)m includes $1.6m in IFRS16 lease impairment reversals and $1.2m gain on sale of properties. Further details
included in appendix to this presentation.
FY21FY20
EBITDA40.7(37.2)
Normalised EBITDA 37.920.9
EBIT21.8(57.7)
Normalised EBIT19.00.4
•Strong balance sheet with all bank debt repaid
and $25.0m in cash

FY21
OPERATING
ENVIRONMENT

STRONGLY POSITIONED FOR MARKET CONDITIONS
HEADWINDS
•Global Covid-19 environment
•Supply chain congestion
•Increasing steel pricing and
cost pressures
•Labour constraints,
particularly in residential
construction
•Manufacturing slower to
recover
5
TAILWINDS
•Boom in residential activity
•Steady increase in
infrastructure activity
•Commercial activity picking
up
•Covid-19 enabled cost
structure and balance sheet
reset
STEEL & TUBE VALUE
•Distribution footprint and
breadth of product
•Infrastructure businesses
add point of difference
•Diversification across
industry sectors
•Procurement leverage and
strong balance sheet
•Cost efficient operations
•Customer focused and sales
led with strong digital
platform

SECTOR EXPOSURE
6
Steel & Tube is a diversified
business with limited exposure to
any one sector
•47% Residential and
Commercial Construction
•14% Infrastructure
•31% Manufacturing
•8% Merchants/other
Non-food
Manufacturing
19%(FY20: 24%)
Food Manufacturing
12%, (FY20: 14%)
Retail/ Wholesale
8%,(FY20: 10%)
Residential
Construction
21%, (FY20: 15%)
Non-Residential
Construction
26%, (FY20: 24%)
Infrastructure,
14%(FY20: 13%)
SHARE OF FY21 SALES

7
MARKET CONDITIONS
Activity remains strong in most sectors post Covid-19 lockdown, strong growth in residential
construction, decline in non-residential consents showing signs of recovery
Source: Statistics New Zealand, BNZ –BusinessNZPMI, Statistic NZ, NZIER
500
1,500
2,500
3,500
2,000
4,000
6,000
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
SQM
No. Consents
Rolling 12months
Non-Residential Consents
ConsentsFloor Area
5,000
5,500
6,000
6,500
7,000
25
30
35
40
45
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
Rolling 12months
SQM
No. Consents (000’s)
Residential Consents
ConsentsFloor Area
0
40
80
120
160
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
Index (2010=100:sa)
Activity Index –Infrastructure
Construction
20
40
60
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
Performance of Manufacturing
Index (PMI)
PMI

8
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
9
BUILDING OUR BUSINESS: KEY INITIATIVES in FY21
PROJECT STRIVE:
CHANGE PROGRAMME,
OPERATIONAL RESET
FY17 to FY20
BUILDING ON OUR FOUNDATION, CONTINUAL IMPROVEMENT
Strategic Initiatives FY21
Priority focus on quality, health and
safety
Investment in our people
Network consolidation
Significant cost reduction and
efficiencies
Introduced digital and e-commerce
platform
Strengthened balance sheet
Continued investment into quality, safety, training and
development
Largely completed network optimisation
Locked in FY20 cost reductions
Continued investment in digital technology
Focus on sales disciplines and delivering customer
excellence
Inventory and Supply Chain management

CONTINUED INVESTMENT IN QUALITY, SAFETY AND TRAINING
•Our commitment to Safety remains a stand out strength with
employees rating Steel & Tube’s safety commitment 8.6/10 in
engagement survey
•Critical risk management including independent assurance and
training throughout the group
•Continued investment in safety hardware including guarding
and other risk mitigations
•Deployed Intelex software to eliminate paper based systems
•ISO 9001: 2015 now certified across all businesses
•Recertification of Structural Steel Distributor Charter
•First company to achieve certification new Steel Construction
NZ Bolt Importer Charter
0
5
10
15
FY16 FY17 FY18 FY19 FY20 FY21
EMPLOYEE TOTAL RECORDABLE INJURY
FREQUENCY RATE (eTRIFR)
Strong improvement in eTRIFR*,
down to 1.86, well below industry
average. LTIFR of 0.
*eTRIFR: Employee Total Recordable Injury
Frequency Rate
LTIFR: Lost Time Injury Frequency Rate
10

NETWORK
STRATEGY
11
Annual Lease Cash
Cost ($m)
$18.4*$15.9
*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.
Network consolidation
programme largely
completed –optimised
branch network
maintaining a regional
presence and increased
product offering. Will
consider increasing
presence in key regions to
meet sustainable demand.

12
SUBSTANTIAL AND SIGNIFICANT STRUCTURAL COST SAVINGS
2%
7%
12%
Variable Cost Metrics
Freight/Sales %Direct Labour/Sales %
•Substantial 13.5% ($12.5m) year on year
structural reduction in operating expenses
(reported)
•Variable costs (direct labour and freight)
also reduced as percentage of sales
$mFY21 FY20
Sales480.0 417.9
Operating Expenses
(Excl D&A)
62.4 73.6
Operating Expenses/Sales 13.0% 17.6%
Depreciation and Amortisation* 17.5 18.8
Operating Expenses (Reported) 79.9 92.4
*Excludes depreciation of $1.5m (2020: $1.7m) relating to equipment used to manufacture products as this is included in cost of sales.

ENHANCED FOCUS ON INVENTORY AND SUPPLY CHAIN
MANAGEMENT
Inventory Management
•Developed capabilities managing
international supply chain congestion
•Developing advanced data analytics
platforms for segmentation, pricing and
product traceability
•Improved stock holdings of critical fast
moving items
•Aged inventory reduced $9m
Supply Chain Management
•International shipping coordination and
devanning management
•Network design and optimisation –
leveraging distribution centre model
•Distribution Centre management
including core system deployment
•Freight & Transport management
•Capturing benefits of Group scale and
diversified offer
13

POSITIVE GAINS FROM FOCUS ON SALES DISCIPLINES AND
CUSTOMER EXCELLENCE
•Focus on cross-selling through leveraging national
footprint and breadth of products and availability
•Infrastructure businesses point of difference -project
methodology and technical advisory
•Digital data used to drive customer segmentation,
category management including availability and pricing
•Customer value proposition developed
•Omni-channel platform –business advisory, in-store,
by phone or online
•Centralised Customer Excellence centre with a regional
focus
•Expanded access to specialist expertise in the sales
teams
Net promoter score measures
customer satisfaction and has
improved since 2018
Nov-Dec 18 Q2-19/20 Q2-20/21
Average NPS of 34 for FY21
14

Webshopis delivering significant value
Increase in revenue
Increased order frequency and value
Broader range of products being ordered
Improvements in margin
Reduced cost to serve –up to 20% labour savings
per order
Ability for the customers to conduct customer
service tasks 24/7
Ability for customers to get quotations and
finalise pricing for their jobs
Ability to download test certificates of traceable
products and download Invoices/Shipment
information
https://portal.steelandtube.co.nz/
15
INVESTMENT INTO DIGITAL
Webshop, e-commerce, data analytics, customer management,
online training modules, new digital tools to make jobs easier
KEY STATS FOR E-COMMERCE
+628%
Online Revenue Growth YoY
+5%
Average increase in customer
revenue as result of online
purchasing
+505%
YoY growth in online
customers

DATA ANALYTICS DELIVERING
VALUABLE BUSINESS INSIGHTS
•Use of rich data to understand our
customers and optimise our sales and
service performance
•Targeting resources to provide best in class
quality and traceability capabilities for our
customers
•Released advanced analytics platforms for
Segmentation, Pricing and Product
Traceability
AUTOMATED TRACEABILITY VISION
Test certificates
automatically loaded
into S&T system when
order dispatched
Test certificates
automatically sent when
orders dispatched
Test certification
received automatically.
Ability to retrieve using
Chatbot Stanley, via CX
and webshop
Supplier Mill
Steel & Tube
Customer
16

Positive movement in key metrics
•Working with sector to promote steels as an
important, essential and sustainable building material
and encourage cradle-to-cradle methodology in
product assessment
•Operational initiatives focused on material efficiency,
recycling, reducing energy use and reducing vehicle
emissions
•Implemented measuring and monitoring of waste and
scrap
•Freight Efficiency Programme
•National Network Design to ensure efficient delivery
of products to customers
•Use of leading edge technology to optimise material
and labour use during manufacture
•Appointment of Group Sustainability Manager in July
FY21
17
CREATING A SUSTAINABLE
BUSINESS
*Reporting in accordance with Greenhouse Gas Protocols and includes all material
emissions under Scope 1 and 2, with Scope 3 limited to business travel
13% REDUCTION IN FUEL
CONSUMED
448,766 ltrs
2% SAVING ON ELECTRICITY
CONSUMED
5.29 kwh
9% IMPROVEMENT IN
GREENHOUSE GAS EMISSIONS*
1,703 tCO2e
POSITIVE MOVEMENT IN KEY METRICS

BUILDING A WINNING TEAM
FY21 focus on Leadership development and building the online training library
•Leadership programme rolled out across the organisation with
participation from 70 supervisors and team leaders
•Over 50 online training modules currently available in our online
training library, with 2,000 modules completed by team
members in FY21
•Consistently high Employee Engagement Score of 7.4/10 and
strong Employee NPS of 19
•New Maoricadetship programme, in partnership with Te Puni
Kokiri with four cadets currently enrolled
•Continued to support First Foundation; and Sector Workforce
Engagement Programme (SWEP) with Papakura High School
•Introduced Back to School fund, providing support for Steel &
Tube families
5
13
15
19
Jul-20Nov-20Mar-21Jul-21
Employee Satisfaction
eNPS
18

FY21
FINANCIAL
RESULTS

FY21 GROUP FINANCIAL SUMMARY
20
1. FY21 non-trading adjustments of $2.8m, comprise gains on property sale and IFRS16 impairment reversals
2. FY20 non-trading adjustments of $58.1m, comprise non-cash goodwill impairment and other write-downs due to
acceleration of branch network changes, business restructuring and digitisationand the impact of COVID-19.
$m
FY21
FY20
Revenue
480.0417.9
EBITDA
40.7(37.2)
Non-trading adjustments
(2.8)
1
58.1
2
Normalised EBITDA (excluding non-trading
adjustments)
37.920.9
EBIT
21.8(57.7)
Non-trading adjustments
(2.8)
1
58.1
2
Normalised EBIT (excluding non-trading
adjustments)
19.00.4
NPAT/(NLAT)
16.1(60.0)
Shareholder Equity
196.6181.3
Net Cash
25.07.4
Net operating cash flow
31.539.6
•Revenue increased by
$62.1m (14.9%)
•Normalised EBIT has
increased by $18.6m
against prior year
•Shareholder equity
has increased by 8.4%
•Net Cash has
increased by $17.6m
•Net Operating cash
flow reduced due to
increased inventory
and other working
capital movements

•Strong year on year increase in sales
•2H21 vs 2H20: + 36.4%
•2H21 vs 1H21: + 12.1%
•Input cost pressures passed through to
price
•Driving margin improvements although
impacted by sell down of aged inventory in
FY21
•FY20: 19.0%
•FY21: 20.4%
•FY22 focus on gross margin dollar
improvement
21
REVENUE & MARGIN
14.9% year on year improvement in sales and strong gains vs prior half year
10%
15%
20%
25%
1H20 2H20 1H21 2H21
Gross Margin %
20
40
60
80
100
50
100
150
200
250
300
1H20 2H20 1H21 2H21
Tonnage (000’s)
$m
Sales & Volume
SalesTonnage

•Prudent and disciplined management of
expenditure continues
•Normalised operating expenses reduced
by 13.2% from prior year
1
•FY21 savings primarily driven by improved
network structure -indirect labour,
employee benefits and restructuring and
property expenses
•Benefits from lower bad and doubtful
debts with continuing focus on managing
risk and reduced depreciation
•FY22 focus on maintaining tight cost
control with expected wage inflation
22
REDUCTION IN NORMALISED OPERATING EXPENSES
Sustainable fixed cost baseline now achieved
1. FY20 Opexhas been adjusted in FY21 Annual Report following a reclassification of labourcost from indirect (Opex) to COGS.
2. FY20 and FY21 Opexfigures have been normalisedto exclude non-trading adjustments. See Appendix slidesfor definitions and reconciliation of normalisedresults.
FY20 N OpexReclassification of labour cost FY20 N Opexpost reclassificationOther Employee Benefits/ RestructuringBad and Doubtful DebtsIndirect LabourD&AOther ExpensesFY21 N Opex

•Repaid remaining borrowings during FY21
•Bank covenant waivers and revised covenants in
place for FY21; New $50m debt facility secured
•Increased fast moving inventory to meet
customer demands
•FY21 Trade receivables and payables are higher
due to increased activity in the market
•FY21 cash benefited from property sale proceeds
of ~$8.4m
•Continuation of dividend payments with a final
dividend of 3.29 cents per share (unimputed), in
line with Steel & Tube’s dividend policy of 60% -
80% of Adjusted NPAT
•Total FY21 dividends of 4.50 cents per share
23
BALANCE SHEET
Tight control over balance sheet, with substantial bank funding lines secured
$mFY21 FY20
Trade and other receivables 109.0 92.7
Inventories113.5 101.1
Trade and other payables (80.0) (58.9)
Working Capital142.5 134.9
Cash and cash equivalents 25.0 17.4
Borrowings- (10.0)
Net Cash25.0 7.4

24
WORKING CAPITAL
Disciplined approach to working capital management
Working Capital KPIs
FY21 FY20 FY19
Trade Receivables: DSO38 42 48
Inventories: DIO101 101 107
Trade Payables: DPO41 31 26
•On-time debt collection rates have continued
to improve
•Increase in fast moving inventory to support
sales demand and mitigate supply chain
headwinds
•Despite inventory increase maintained DIO
with a $9m reduction in aged inventory
•FY22 continued focus on working capital
disciplines
DSO: Days Sales Outstanding; DIO: Days Inventory Outstanding; DPO: Days Payable Outstanding
FY20 InventoryHollows offshore sourcingCOGS price IncreaseIncrease in fast moving itemsAged Stock reduction FY21 Inventory

CAPITAL EXPENDITURE
•FY21 capex of $7.7m (FY20: $7.6m)
•Capital spend remains in line with D&A
•Priority capital allocation to projects supporting
digital (53%) and business improvement/growth
(20%)
FY22 Investment:
•Continued investment in digital technology
•Investment in new processing equipment that will
open up identified market opportunities as well as
drive operating efficiencies, safety and product
quality
•Increased cashflow will support capital investment
programme
25
Prudent management of capital expenditure with increased allocation to Digital and
Growth projects
-
5
10
15
20
25
30
35
FY17 FY18 FY19 FY20 FY21
Capital Investment
DigitalPlant & Equipment
Land & BuildingAcquisitions
Depreciation and amortisation
*
*
Depreciation and amortisation excludes right-of-use asset depreciation

DIVISION
PERFORMANCE

DISTRIBUTION
Products sourced from preferred steel mills and
distributed through our national network
27
OUR BUSINESS -DIVISIONS
INFRASTRUCTURE
Products processed before sale, typically on a contract or project
basis, including onsite installation services

•Strong growth in revenue and earnings
•Driven by increased activity in residential,
infrastructure and commercial sectors,
manufacturing picking up
•Gross margin and margin percentage both
improved strongly year on year
•Benefits from cost out programme and
strategic initiatives
•Point of difference in cross-selling through
leveraging national footprint and breadth
of products and availability
28
DISTRIBUTION
See slides 36 and 37for definitions of financial terms and reconciliation of normalisedresults.
Distribution
FY21 FY20
$m
Revenue286.8 248.0
EBITDA25.1 (19.9)
Normalised EBIT13.8 (0.2)
EBIT 15.2 (29.9)
0
30
60
90
0
100
200
300
FY20 FY21
Tonnage (000’)
$m
Sales & Volume
SalesTonnage

•Increasing volume of activity in 2H21
with large commercial projects coming
back on stream
•Volumes up versus prior period with
gross margin improvements from cost
out programme being partially offset
with competitive pricing pressure in
some areas
•Long pipeline of secured work and
increasingvolume of tender activity
•Point of difference through scale,
project methodology, technical advisory
and focus on safety and quality
29
INFRASTRUCTURE
See slides 36 and 37for definitions of financial terms and reconciliation of normalised
results.
Infrastructure
FY21 FY20
$m
Revenue193.2 170.0
EBITDA13.0 (19.1)
Normalised EBIT6.4 0.5
EBIT 6.6 (26.1)
0
20
40
60
-
50
100
150
200
FY20FY21
Tonnage (000’)
$m
Sales & Volume
SalesTonnage

MOVING
FORWARD

OUR STRENGTHS
•Strong governance and sustainability focus
•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 customer partner –reliability, methodologies, technical advisory and safety &
quality
•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 organic growth
•People, communities, environment, health, safety and wellbeing are at our core
31

32
STRATEGIC FOCUS: INVESTMENT FOR GROWTH
Focus on gross margin dollar improvement and growth opportunities
•Continue to build best-in-
class customer experience
and digital platform
•Investment into IT and
enhanced data analytics
•Drive gross margin dollars
•Continued operational
efficiencies
•Leverage opportunities to
cross sell wide range of
products and services
BUILD ON STRONG BUSINESS
FOUNDATION
•Continue to develop
differentiated expertise
•Expand the targeted high
value product ranges
•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 close
adjacent sectors

FY22 OUTLOOK
Positive outlook with number of identified opportunities
•Positive market backdrop for the medium term, cycle expected to be stronger for longer:
oResidential likely to ease next 1-2 years due to interest rate rises and supply demand
imbalance slowly reducing with borders closed
oCommercial seeing positive uplift in consents and increasing tenders coming to the market
oInfrastructure continuing to build due to significant underinvestment
oExpanding manufacturing sector
•Long pipeline of secured contract work in place
•Well positioned to take advantage of identified opportunities in a range of sectors
•Focus remains on continued gross margin dollar improvement, leveraging digital platform,
product and sales growth
•Expect continued earnings momentum and dividend flow
•Investigating potential capital management activities
33

DISCUSSION

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 FY21 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 howthe earnings
reported in the Financial Statements for the periods ended 30 June 2021 and 30 June 2020 reconcile to normalisedearnings. Non-trading
adjustments of $(2.8) million are included in the FY21 results.
35
RECONCILIATION OF REPORTED TO NORMALISED EARNINGS
Year ended 30 JuneEBITDAEBIT
$000sFY21 FY20FY21 FY20
Reported40,731 (37,236) 21,752 (57,694)
Add back / (subtract) unusual transactions/non-trading adjustments:
Gain on sale of properties(1,215) (1,215)
NZ IFRS 16 (reversal of impairment) / impairment(1,546) 4,298 (1,546) 4,298
Goodwill impairment-37,071 -37,071
Intangible assest impairment-9,000 -9,000
Business restructuring costs-3,449 -3,449
Site rationalisation execution costs-2,011 -2,011
Property, plant and equipment impairment
-
1,508
-
1,508
Holiday pay provision
-
750
-
750
Normalised37,970 20,851 18,991 393

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. FY21 EBIT was impacted by non-trading adjustments of $2.8 million, as
shown in the table above.
EBITDA: Earnings / (Loss) before the deduction of interest, tax, depreciation and amortisation. This is
calculated as profit for the year before net interest costs, tax, depreciation and amortisation.
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/EBITDA: This means EBIT and EBITDA excluding non-trading adjustments and unusual
transactions.
eTRIFR: Employee Total Recordable Injury Frequency Rate –an important metric to assess safety
performance.
LTIFR: Lost Time Injury Frequency Rates -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.
36

DISCLAIMER
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 doesnot purport 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 havingregard to
that 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 thatantransaction
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.
37

---

Dear Shareholder
We are pleased to advise that the Steel & Tube Holdings Limited Annual Report for the year ended 30 June 2021 (FY21) is now
available to view on our website https://steelandtube.co.nz/investor/reports.
The FY21 year was a challenging time for many businesses and communities and we are incredibly proud of our people for
standing up supporting our customers and delivering a solid result. We saw a strong recovery from Covid-19 in New Zealand
following the April 2020 Level 4 lockdowns, with the execution of strategic initiatives delivering growth, underpinned by positive
economic activity.
We are now seeing the benefits of our efforts over the last three years and particularly our investment in our people and digital
technology. We have seen improvements in all areas, with customer sales and margins recovering across the year and we have a
strong pipeline of secured work.
The improved financial results delivered in FY21 are an indication of the growing value being generated as we move forward with
clear strategic objectives – to be the best in the business, the preferred choice for customers, a rewarding place to work and an
attractive investment for our shareholders.
Our thanks go to you our shareholders for your support. We were pleased to declare a final unimputed dividend of 3.29 cents per
share, taking full year dividends to 4.5 cents per share.
Our strong financial performance in FY21 and return to profitability is our first step as our focus transitions from the turnaround
of our business to growth and value add. While we will continue to optimise the business, we have also identified a number of
organic growth opportunities and are investigating potential capital management activities. Our priorities remain customer
service, growing sales in attractive segments and gross margin dollar improvement.
The events of this past year have reinforced the importance of taking a long-term view and establishing policies and business
strategies that look beyond next quarter or year. As we write this, New Zealand is in another Alert Level 4 lockdown. Our previous
experience shows that economic activity is simply deferred or delayed during these times, with a strong recovery once business
re-opens.
We are confident in our strategy and are moving forward with a robust financial and operating platform, leadership positions
across many product categories, an experienced executive team and strong employee morale.
We look forward to building on Steel & Tube’s legacy as New Zealand’s leading steel provider and adding value for shareholders
and all stakeholders.
Susan Paterson Mark Malpass
Chair Chief Executive Officer

7 Bruce Roderick Drive, East Tamaki, Auckland 2013, New Zealand
PO Box 58880, Botany, Auckland 2163, New Zealand. Ph: +64 4 570 5000 Fax:+64 4 570 2453
Email: info@steelandtube.co.nz Website: www.steelandtube.co.nz
STRATEGIC PROGRESSFINANCIAL
Significant improvement in earnings
$40.7m EBITDA
$21.8m EBIT
$19.0 m Normalised EBIT
(Increase from $0.4m in prior year)
Revenue
$480.0m + 15%
Gross Margin dollars
Year on year improvement in gross margin dollars
and percentage
Net Profit After Tax
$16.1m
Strong improvement on prior year
Robust Operating Cashflow
$31.5m
Strong Balance Sheet with all bank debt repaid
$25.0m cash as at 30 June 2021
FY21 Paid and Declared Dividends
4.5 cents per share
Continued prioritisation
of quality, health, safety
and wellbeing
Continue to invest in digital
technologies to continuously
improve the customer
experience and expand the
customer offer, providing
competitive advantage
Significant structural cost reductions and network
optimisation programme largely completed, with
future refinements to be undertaken as needed
Selected partner on large projects; building a
reputation for value engineering and delivery
performance
Focus on gross margin dollar improvement,
customer service and growing sales in attractive
segments
New appointments to Board and Leadership Team
Karen Jordan Independent Director
Richard Smyth Chief Financial Officer
Our goals are to be the best in the business, the
preferred choice for customers, a rewarding place
to work and an attractive investment for our
shareholders
3STEEL & TUBE ANNUAL REPORT 2021
FY21 AT A GLANCE
STRATEGIC PROGRESSFINANCIAL

---

STEEL & TUBE HOLDINGS LIMITED
2021
ANNUAL
REPORT

THE BOARD OF STEEL & TUBE
IS PLEASED TO PRESENT THE
ANNUAL REPORT FOR THE
YEAR ENDED 30 JUNE 2021
Susan Paterson | Chair

Mark Malpass | Chief Executive Officer
23 August 2021

FY21 at a Glance02
Chair and CEO's Review04
Our Businesses07
Technology 12
Our Strategic Roadmap14
What Matters:16
Commitment to Quality, Health and Safety18
Operational and Supply Chain Excellence22
Customer First25
Winning Team26
Leadership Team28
Our Board30
Financial Measures32
Five Year Financial Performance33
Financial Report34
Financial Statements36
Independent Auditor's Report69
Governance75
Remuneration83
Disclosures87
Directory91
CONTENTS
1STEEL & TUBE ANNUAL REPORT 2021

OPERATING ENVIRONMENT
FY21 AT A GLANCE
OUR BUSINESS

1
eTRIFR: Employee Total Recordable Injury Frequency Rate per 1 million work hours
870
Staff across our
organisation
26
Sites across
New Zealand
46,500+
Product
SKUs
Employee engagement score.
Employee NPS of 19: An excellent result
and well above industry benchmark
7.4 / 10
Active
customers
Steady increase in activity across the year
following Covid-19 lockdowns, with momentum
increasing in 2H21
Steel price inflation due to rising steel commodity
input prices coupled with shipping and logistics
cost pressures
Labour constraints in some sectors, particularly
construction
Increased fast moving inventory
in response to global supply chain
capacity and shipping constraints
1.86
Safety eTRIFR
1
Positive movement in key sustainability metrics:
13% reduction in fuel consumed;
9% reduction in greenhouse gas emissions;
2% reduction in energy use
10,500+
Strong residential construction
and infrastructure activity, an
uplift in commercial tenders
and more recent growth in
manufacturing
Well below
industry standards
2STEEL & TUBE ANNUAL REPORT 2021

STRATEGIC PROGRESSFINANCIAL
Significant improvement in earnings
$40.7m EBITDA
$21.8m EBIT
$19.0 m Normalised EBIT
(Increase from $0.4m in prior year)
Revenue
$480.0m + 15%
Gross Margin dollars
Year on year improvement in gross margin dollars
and percentage
Net Profit After Tax
$16.1m
Strong improvement on prior year
Robust Operating Cashflow
$31.5m
Strong Balance Sheet with all bank debt repaid
$25.0m cash as at 30 June 2021
FY21 Paid and Declared Dividends
4.5 cents per share
Continued prioritisation
of quality, health, safety
and wellbeing
Continue to invest in digital
technologies to continuously
improve the customer
experience and expand the
customer offer, providing
competitive advantage
Significant structural cost reductions and network
optimisation programme largely completed, with
future refinements to be undertaken as needed
Selected partner on large projects; building a
reputation for value engineering and delivery
performance
Focus on gross margin dollar improvement,
customer service and growing sales in attractive
segments
New appointments to Board and Leadership Team
Karen Jordan Independent Director
Richard Smyth Chief Financial Officer
Our goals are to be the best in the business, the
preferred choice for customers, a rewarding place
to work and an attractive investment for our
shareholders
3STEEL & TUBE ANNUAL REPORT 2021

STRATEGIC PROGRESS
At the start of the FY21 financial year, we put in place a clear
roadmap to guide our actions going forward and we are
making good progress under each of our five pathways
which are focused on customers, our people, technology,
service and operational efficiency. This year’s improved
financial results are an indication of the growing value being
generated as we move forward with clear strategic objectives
– to be the best in the business, the preferred choice for
customers, a rewarding place to work and an attractive
investment for our shareholders.
In Q4 FY20, Covid-19 provided a unique opportunity to
reassess our strategy and we made the bold move of
aggressively advancing our long-term network optimisation
plans. We exited six sites, including moving the Wellington
Head Office to one of our Auckland distribution Centres,
and reduced our footprint at a further four locations,
resulting in a significant reduction in rental costs. We have
also reengineered many of our business processes and
organisation requirements. This has allowed us to move
forward with a focussed and efficient operating structure.
We are now seeing the benefits of our strategic initiatives
over the last three years and particularly our investment
in our people and digital technology. We have seen
improvements in all areas, with customer sales and margins
recovering across the year and a strong pipeline of secured
work. Customer service and delivery fulfilment have been a
priority and the target of much of our digital investment as
we implement an omni-channel platform that delivers the
optimal experience for our customers.
We have continued to bring together our businesses by
cross selling our extensive offer to customers, leveraging
our national footprint and breadth of product offering.
We have established a centralised Customer Excellence
Centre that maintains a regional focus, provides expanded
access to specialist expertise in our sales teams and uses
digital data to enable customer segmentation and

category management.
Significant site footprint changes have been executed and
we now have an optimised national network, maintaining
a regional presence and providing an increased product
offering. While we see continued efficiency opportunities,
the network consolidation programme is largely complete.
This, along with the accelerated cost out programme,
has delivered a material reduction in our underlying cost
structure.
Supply chain management has also been an increased
focus, with the establishment of the new role of GM Supply
Chain & Distribution Centres early in FY21. During the year,
we better managed our working capital, investing in fast
moving inventory in response to current global supply chain
and capacity issues, while at the same time reducing aged
CHAIR AND CEO'S REVIEW
We are now seeing the benefits of our
strategic initiatives over the last three years
with an improved financial performance,
a leaner organisation and a strong balance
sheet. Our thanks go to you our shareholders
for your support during this time.
4STEEL & TUBE ANNUAL REPORT 2021

EBITDA was $40.7m with normalised EBITDA being $37.9m
(FY20: $20.9m). EBIT significantly improved to $21.8m; on a
normalised basis this was $19.0m compared to $0.4m in the
prior year.
The company had a strong return to profitability with net
profit after tax of $16.1m compared to a reported loss of
$60.0m in the prior year.
Continued improvements in working capital management
and debt collection assisted in the generation of robust
operating cashflow of $31.5m.
All debt was repaid during the year, with $25.0m net cash
at year end. The asset disposal programme has now been
completed with the $7m sale and leaseback of the Hautonga
Street site in Petone in March 2021.
The company has a strong financial platform to invest
in targeted organic growth initiatives and market
opportunities. Our capital expenditure in FY21 was $7.7m,
with 53% of this allocated to digital initiatives.
Investments in digital technologies, people, safety and
quality are all delivering value and providing a strong
platform to move forward with growth plans in FY22.
Steel & Tube’s strong financial performance in FY21 and
return to profitability is our first step as our focus transitions
from the turnaround of our business to growth and value
add. We were pleased to declare a final unimputed dividend
of 3.29 cents per share, taking full year dividends to 4.5 cents
per share.
FOCUSING ON WHAT MATTERS
The events of this past year have reinforced the importance
of taking the long-term view and establishing policies and
business strategies that look beyond next quarter or year.
Your Board remains committed to building a sustainable
business, that delivers long term value to shareholders
and other stakeholders. We continue to progress in our
sustainability journey, focusing on areas that are important
for our people, our planet and our company.
With many businesses facing labour constraints, it is
encouraging to see the high employee engagement

results from Steel & Tube’s latest survey, with stand out
areas including clarity on goals, fairness of treatment for
all employees, management support and focus on
employee safety.
Safety remains a priority and while we were pleased to see
our employee TRIFR drop to 1.86 ‒ well below the industry
averages - we remain focussed on reviewing our critical risks
and controls, and promoting active participation by our
team in workplace safety initiatives and safety conversations.
We have continued our investment in equipment, critical risk
management processes and assurance.
inventory. Technology is again playing an important role as
we manage increasing steel prices and cost pressures, with
advanced data analytics supporting inventory traceability and
pricing governance and controls.
MARKET CONDITIONS
FY21 was a challenging time for many businesses and
communities and we are incredibly proud of our people
for standing up supporting our customers and delivering
a strong result. While we in New Zealand have been lucky
to escape the worst of the Covid-19 pandemic, the recent
Alert Level 4 lockdowns are a reminder of the impact the
pandemic is still having around the world and its economic
effects.
Demand for steel has increased as consumers spend up
large on whiteware, cars and other items, residential
construction soars and governments invest in infrastructure
programmes to boost economic activity. Steel mills are
operating at capacity and on top of this, supply chains have
become congested with no signs that these headwinds will
be alleviated anytime soon. This has led to increased pricing
across a broad range of steel products.
Steel & Tube has a number of advantages in this
environment. We are the most diversified steel provider in
New Zealand and not unduly reliant on one or two sectors,
which provides greater stability in demand and activity. Our
size and scale provides us with buying power and we have
long standing and positive relationships with our suppliers
in both New Zealand and offshore. Our investment into
digital and technology is paying dividends across all areas of
our business, enhancing our customer offer and delivering
improved efficiencies, governance and controls.
While we have not been overly affected, we are seeing some
impact from the labour shortages and travel restrictions
with more competition for temporary staff and construction
experts and issues with those in our team who have some
form of work visa. We continue to provide support and work
closely with immigration to provide certainty for these staff
members.
FINANCIAL PERFORMANCE
The FY21 financial year saw a strong recovery from Covid-19
in New Zealand, with the execution of strategic initiatives
delivering growth, and underpinned by positive economic
activity. We significantly improved year on year earnings as a
result of sales and margin growth and a material reduction in
our underlying cost structure.
FY21 revenue was up 15% to $480.0m with sales and volume
growth from both our Distribution and Infrastructure
businesses.
5STEEL & TUBE ANNUAL REPORT 2021

OUTLOOK
Our focus remains on customer service, growing sales in
attractive segments and gross margin dollar improvement.
Market conditions look to remain positive for at least the
medium term as the economic cycle is expected to be
‘stronger for longer’. The current residential boom is likely to
ease over the next one to two years, however, commercial,
infrastructure and manufacturing are all expected to
continue to grow.
We have a strong pipeline of secured work in place and
are well positioned to take advantage of new market and
product opportunities.
While our focus remains on optimising the business, we have
also identified a number of organic growth opportunities
and are investigating potential capital management
activities. Investing in new processing equipment will

assist in opening up identified new markets as well as
drive operating efficiencies, safety and product quality.
In addition, we will continue to invest in digital technologies
to continuously improve the customer experience and
expand the customer offer, providing further competitive
advantage.
We are confident in our strategy and are moving forward
with a robust financial and operating platform, leadership
positions across many product categories, an experienced
executive team and strong employee morale.
We look forward to building on Steel & Tube’s legacy as
New Zealand’s leading steel provider and adding value for
shareholders and all stakeholders.
Susan Paterson, Chair
Mark Malpass, Chief Executive
Energy and carbon use has reduced year on year which was
particularly gratifying given that the prior year included four
weeks of lock down and limited operation.
Our competitive advantage is built on our reputation as a
trusted and reliable provider and product quality remains
a key focus. Most recently, Steel & Tube has become the
first company in New Zealand to achieve the Bolt Importer
Charter, which ‘ensures that fasteners and anchor bolts
supplied to the local steel construction sector are sourced
using good procurement practices and represents a mark of
excellence for bolt importers in New Zealand’. We were also
one of the first companies to become a Chartered Member
of the Sustainable Steel Council.
DIVISION PERFORMANCE
Distribution
Distribution continues to go from strength to strength
with gross margin improving year on year. Revenue growth
is being driven by strong residential, infrastructure and
manufacturing sectors. We are closely monitoring steel
commodity input prices, increased demand, capacity
constraints and shipping challenges. Inventory and pricing
optimisation, aided by technology, ensure that high demand
products are priced appropriately and available where and
when needed by our customers. Our optimised national
network of branches and distribution centres, realigned
sales team and Customer Excellence Centre are delivering
improved customer service and experience.
Infrastructure
Infrastructure covers a range of sectors with our specialist
made to order products primarily supplied to the vertical
construction and infrastructure sectors. Volumes were up
versus the prior period with gross margin improvements
from the cost out programme being partially offset with
competitive pricing pressure in some areas. While slower
to recover, an increasing volume of activity has been seen
in 2H21 as infrastructure and large commercial projects
come back on stream. We have a strong pipeline of secured
work and are seeing an increasing volume of tender activity
for large infrastructure and vertical construction projects.
Steel & Tube’s positioning as a large scale, reliable provider
focused on improved project methodology, technical
advisory services and a deep focus on safety and quality
provide us with a competitive advantage.
6STEEL & TUBE ANNUAL REPORT 2021

OUR
BUSINESSES
Steel & Tube has the broadest range of
steel products and solutions in New Zealand.
We source, process and distribute steel products
– including fastenings, chain and rigging,
stainless and engineering steel – to customers
across New Zealand through our nationwide
network of branches and distribution centres.

We also make steel products to order on a
project basis, including roofing, ComFlor

decking and reinforcing, and offer onsite
installation services.
We have expertise across a diverse range of
sectors and reach across the country, offering
our customers a wide range of products and
solutions to meet their steel needs.
DISTRIBUTION
Revenue $286.8m
Normalised EBITDA $23.7m
EBIT $15.2m
Normalised EBIT $13.8m
INFRASTRUCTURE
CFDL/REO AND ROLLFORMING
Revenue $193.2m
Normalised EBITDA $12.9m
EBIT $6.6m
Normalised EBIT $6.4m
7
STEEL & TUBE ANNUAL REPORT 2021

DISTRIBUTION
The Distribution business serves the needs of
customers across a broad range of sectors, with
a mix of customers from rural to fabricators,
manufacturers and merchants. While there
are several competitors in this area, none can
match Steel & Tube’s breadth and scale. Sales
growth has been driven by strong residential and
infrastructure activity, with growth in commercial
and manufacturing.
The Distribution market is primarily a commodity
market, with competitive advantages being
delivered from Steel & Tube’s reputable brand,
quality products and customer service. Market share
remained stable in FY21 with increases in

some areas.
2

Operating costs were significantly reduced with
a right sized cost base now in place. The network
optimisation project has been largely completed.
The freight optimisation programme has also
delivered positive results, with reduced costs and
carbon emissions.
Along with the realignment of the sales team, an
increased focus is being put on cross selling Steel &
Tube’s wide range of products and solutions. Growth
opportunities have been identified in several areas,
with the primary focus on continuing to optimise
gross margin dollars and delivering customer service
excellence. In FY21, Steel & Tube acquired a small
fastenings business, symbolic of the strategy to
invest in segments that matter to our customers.
Distribution
% of Group Revenue
60%
Distribution
% of Group EBIT
70%
2
Management market share estimates
8
STEEL & TUBE ANNUAL REPORT 2021

HIGHLIGHTS
>Distribution going from strength to
strength, with increased volumes and
margins delivered in FY21
>Value being realised from accelerated
cost out programme
>Continue to optimise inventory, to
better meet customer needs
>National network and distribution
centres delivering improved customer
service
>Realignment of sales team to focus on
priority segments and customers
>Development of Customer Excellence
Centre to deliver optimal customer
service
>Closely monitoring and responding
to input pricing pressures , increased
demand, capacity constraints and
shipping challenges
>Increased stock holdings to ensure
availability of high demand products
9STEEL & TUBE ANNUAL REPORT 2021

Infrastructure
% of Group Revenue
40%
Infrastructure
% of Group EBIT
30%
INFRASTRUCTURE
WIRE AND CFDL/REINFORCING
Steel & Tube is one of the largest suppliers of
fabricated reinforcing steel mesh, cut and bent
bar, piles, beams and columns for use by the
New Zealand building and construction industry.
Primarily, these products are supplied to the vertical
construction and infrastructure sectors. We also
offer onsite installation through our reinforcing

and CFDL teams.
Volumes were up year on year, particularly for

mesh which was driven by residential construction
activity, while reinforcing also had strong volumes
but lower margins.
Barriers to entry in this sector are low and
competition has kept pressure on margins. Price
management is an important factor in Steel &
Tube’s tendering process and the company will not
participate at price levels that are unsustainable.
Pleasingly, many customers choose Steel & Tube as
their preferred supplier due to our reputation for
reliability, quality, safety and delivery.
Our focus is on end to end project management,
from design and manufacture to delivery and
installation, and we seek to engage early with clients
to add value from the concept stage.
We are also utilising our expertise in new market
opportunities such as windfarms, where we recently
won a $7 million contract for the Harapaki windfarm

in Hawkes Bay.
Macro trends are positive, with Government
infrastructure spend and signs of life in the vertical
construction sector. Commercial activity is picking
up pace with an increasing volume of tenders that
bodes well for the future.
ROLLFORMING AND COMFLOR
Rollforming consists of roofing, coil processing and
purlins, while ComFlor is the industry leading metal
decking product.
Privately funded vertical construction ground to a
halt during Covid-19 lockdowns as large commercial
buildings, shopping centres and hotels were put
on hold. This impacted ComFlor in particular. Some
improvement was seen in 2H21 and this is expected
to continue to build as activity comes back on
stream in FY22.
Gross margins in Rollforming were strong, following
the restructuring and the cost out programme.
Earnings growth has been turned around with
improved demand being driven by the continuing
build of ‘big sheds’ and warehouses and the strong
residential market.
As part of the new sales structure, we have expanded
our sales team, almost doubling the number of sales
people to capture opportunities. We also continue to
prioritise the safety of our people and have invested
in machine and truck guarding across our network.
In FY22, we will be investing into new equipment,
providing more capacity, efficiency and the ability
to deliver more in-spec products. We also see an
opportunity in steel frame housing as a durable
and efficient solution for New Zealand’s housing
constraints. We are seeing an improvement in the
number of tenders for large commercial projects
and we are able to respond with a wider solution and
offer from across our group. Our primary focus is
growing sales while maintaining our margins.
10STEEL & TUBE ANNUAL REPORT 2021

HIGHLIGHTS
>Secured a number of significant projects
and built a long pipeline of secured work
>Slower recovery from Covid-19 with large
commercial projects paused. Activity
increased in 2H21 with a long runway of
new infrastructure projects planned
>Wire and reinforcing volumes up year on
year, with continuing competitive activity
driving pricing and margin pressure
>Completed integration of Reinforcing and
CFDL installation into one team
>Lift in earnings and strong gross margin
improvement in Rollforming
>Invested in expanded sales team, safety
(machine and truck guarding) and new
equipment
11STEEL & TUBE ANNUAL REPORT 2021

The use of digital technology to drive customer experience
and operational efficiency is becoming an increasingly
valuable strategic pathway for the company. Our technology
platform investment is becoming integral to our sales,
service and employee value propositions.
The focus for FY21 was on establishing our e-commerce
capability with the first release of the Steel & Tube and
Fortress webshops, improvements in our traceability
platforms, cyber security and data analytics.
Our goals for e-commerce are to create an omni-channel
platform that allows our customers to engage with us
digitally, through a range of platforms and at any time,
whether that be online, by phone or face to face.
The launch of our webshop and e-commerce platform has
been successful with data showing online customers are
buying more, buying more frequently and more broadly and
delivering a higher margin per customer. While this is still
early days for e-commerce initiatives in the steel industry, we
are confident of significant growth over the next 12 months.
This growth will be supported by a range of new features
and planned additions to support new digital channels for
our customers.
Digital is also playing an important role in our traceability
programme. Our traceability applications are providing
increased visibility, accuracy and auditing of product
provenance. We have also introduced easier ways for
customers to retrieve test certificates such as through our
chatbot Stanley and the webshop. In addition, we have
recently piloted integration with the ordering system
of a large scale customer, allowing them to receive test
certificates automatically with their orders. This has resulted
in significant time savings and we will be looking to expand
this offer to all large customers.
Cyber security remains a priority and an extensive amount
of work has been undertaken in the last 12 months with
independent audits and an ongoing programme of work.
This has substantially improved the company’s cyber security
position and our ability to recover from a cyber security
incident.
Data analytics was another primary focus for FY21.

The pricing project has helped identify areas of margin
improvement across the business and established a more
dynamic and responsive pricing regime which can be
optimised for different customer groups.
Digital investment will continue into FY22 with a new
Customer Relationship Management (CRM) system to be
installed and commissioned. CRM will support our Customer
Excellence teams and Account Managers across the business
to focus on quickly resolving customer issues and the
targeting of revenue opportunities.
>
Launch of centralised Customer
Excellence Centre with regional focus
>
Significant reductions in dropped calls
and call wait times
>
Cloud based telephony allowing better
analysis and insights into customer
needs
>
Automated test certification retrieval
adding value for customers and
improving traceability
>
Digital design capabilities enabling
customer engagement from concept
stage
>
Increased access to invoices, order
details and track and trace capability
>
Optimised freight runs and routes,
generating efficiencies and reducing
carbon emissions
>
Extensive cyber security programme,
boosting resilience to cyber attacks
>
Advanced data analytics to support
inventory and pricing management
strategies
>
Reduction in slow moving and aged
inventory and increase in fast moving
inventory aided by data analytics
>
Expansion of online training library -
more than 2,000 personal development
and skills modules completed by team
members in FY21
>
Commissioned Intelex Quality, Health &
Safety software with phase 1 rollout in
August 2021
TECHNOLOGY
HIGHLIGHTS
$
12STEEL & TUBE ANNUAL REPORT 2021

WE USE A POWERFUL
COMBINATION
OF PEOPLE AND
TECHNOLOGY TO
CREATE CUSTOMER
EXPERIENCES THAT
ARE DYNAMIC,
PERSONALISED AND
EFFORTLESS
13STEEL & TUBE ANNUAL REPORT 2021

OUR STRATEGIC
ROADMAP
OUR PURPOSE
To make life easier for our
customers needing steel
solutions.
OUR VISION
To provide unparalleled
customer service and
experience.
OUR GOAL
To be the best in the sector,
the preferred choice for steel
products and solutions and
a trusted partner for our
customers.
W
I
N
N
I
N
G

T
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A
M
O
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E
R
A
T
I
O
N
A
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A
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D

S
U
P
P
L
Y

C
H
A
I
N

E
X
C
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L
L
E
N
C
E
C
U
S
T
O
M
E
R

F
I
R
S
T

C
O
M
M
I
T
M
E
N
T

T
O

Q
U
A
L
I
T
Y
,

H
E
A
L
T
H
,

S
A
F
E
T
Y

&

E
N
V
I
R
O
N
M
E
N
T

MAKING IT EASY
Deliver the information, expertise,
purchasing options, and communication
channels that make it easy for our customers
FULL SERVICE PROVIDER
Leverage our breadth of expertise,
quality products and strong brands to deliver
a ‘ground up’ solution for our customers
BETTER WAYS OF WORKING
Continually improve to ensure an efficient
and effective operational platform,
with strong operational discipline and
excellent customer service
INNOVATION & TECHNOLOGY
Embrace new technology and
continually innovate to deliver on our
customer and partner strategies – and drive
greater efficiency in our business
ONE TEAM
Engage 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
OUR FOCUS AREAS
15STEEL & TUBE ANNUAL REPORT 2021

W H AT
M AT T E R S
At Steel & Tube, we are committed to creating a sustainable
business, one that delivers value for all our stakeholders,
from our shareholders to our staff and the communities we
operate in, as well as reducing the environmental impact of
our activities.
For each of our four strategic pillars, we have identified
key topics which we believe are essential for the long term
sustainability of our company and which support our social
licence to operate. We monitor and measure our impact in
these areas and develop initiatives to drive positive change.
In this ‘What Matters’ section and elsewhere in this Annual
Report, we comment on economic, environmental, social
and governance topics and initiatives that we believe are
material to our business and our stakeholders.
CUSTOMER FIRST
>
Customer Satisfaction
>
Product Life Cycle Performance
OPERATIONAL AND SUPPLY
CHAIN EXCELLENCE
>
Financial Performance & Corporate Governance
>
Material Efficiency & Recycling
>
Energy & Carbon
COMMITMENT TO QUALITY,
HEALTH, SAFETY AND
ENVIRONMENT
>
Occupational Health & Safety
>
High Quality Products & Services
ONE WINNING TEAM
>
Talent Attraction & Retention
>
People Development & Labour Practices
>
Culture of Wellbeing
16STEEL & TUBE ANNUAL REPORT 2021

17STEEL & TUBE ANNUAL REPORT 2021

COMMITMENT TO QUALITY,
HEALTH & SAFETY
WORKPLACE SAFETY & WELLBEING
The health & safety of our employees remains our number
one priority. We continue to actively engage with staff
across the business. Our total recordable injury frequency
rate has significantly improved over the last five years and is
well below the industry average.
We have a dedicated team who support our health & safety
strategy and we encourage a ‘speak up’ culture which helps
identify areas for improvement. Our focus on health & safety
is led from the top, with health & safety committees

at every level of the organisation.
A Board approved annual workplan is used to govern our
activities. The Board and senior managers are actively
involved in critical risk reviews to ensure risk controls are
effective. An independent safety review was conducted this
year to assess compliance with legislation, assess systems
and processes, and workplace culture. Safety conversations
are also had at all levels of the business to aid Directors and
Officers' understanding of workplace risks and controls,
visibly demonstrate commitment to safety, and to lift
confidence that processes are carried out as intended.
A company-wide health & safety statistics report is published
monthly and analysed to provide lead and lag indicators.
This information enables quality decision making when
interventions are required.
There has been a significant emphasis on training during

the year with our best practice training programmes
recognised to National and International certification
standards. Our partner, Major Oak Safety Training, has
received a number of awards by industry bodies for their
training programmes.
Employee involvement and workplace culture is a key
component of our risk management framework. In the
recent employee engagement survey, in response to

“is this organisation committed to providing a safe working
environment?” Steel & Tube scored 8.6 out of 10.
Employee Total Recordable Injury Frequency Rate (eTRIFR)
10
FY17FY18FY19FY20FY21
5
0
>
Strong improvement in eTRIFR, down to
1. 86, well below industry average. LTIFR
of 0*
>
Continued training in best practice
crane, forklift, offloading and unloading
operations
>
8.6 out of 10 employee rating on Steel &
Tube’s commitment to providing a safe
work environment
>
Upskilling to higher national and
international standards:
–
160 forklilft operators
–
155 gantry crane operators
–
72 basic rigging
>
Entire business now certified to
ISO 9001: 2015 quality standard
>
Successfully achieved recertification
of Steel & Tube’s Structural Steel
Distributor Charter
>
Audited against the new Steel
Construction NZ Bolt Importer Charter,
with no non-conformances
>
Independent audits were carried out on
eight supplier mills
HIGHLIGHTS
* LTIFR is Lost Time Injury Frequency Rate
18STEEL & TUBE ANNUAL REPORT 2021

KEEPING OUR PEOPLE
SAFE WITH INTELEX
Steel & Tube is presently implementing
Intelex quality, health, safety, and
environmental management software.
This ‘best in class’ system comes with
access to a mobile platform, which allows
various key areas to be completed on the
go, without the need for paper-based forms
to be completed first. Moving to mobile
app-based, online reporting will not only
eliminate a significant number of paper-based
audits, forms and manual based processes,
but gives access to live data which tracks
actions from incidents and audit findings.
This will help site Managers, operations
teams and business leaders prioritise the
people and resources needed to focus on the
most important safety risks.
The project is being completed in two stages
with Phase 1 deployed in August 2021.

INVESTMENT
IN TRUCK AND
MACHINE GUARDING
Truck guarding systems provide additional
safety for our people when loading and
unloading steel items. The portable,
guardrailed stairs and platforms add another
safety dimension and have been rolled out
across every Steel & Tube site. This adds
to the ongoing investment being made
into machine guarding, which is our first
line of defence across our manufacturing
businesses.
20STEEL & TUBE ANNUAL REPORT 2021

HIGH QUALITY PRODUCTS AND SERVICES
Our products are used in all areas of New Zealand’s
economy, from dairy vats and fencing in the rural sector
to pipes and materials in manufacturing, steel beams and
reinforcing in infrastructure and flooring, roofing and
everything in between in construction.
Ensuring high quality, durable and trusted products is
essential to what we do. An important factor in this is
independent audits and certifications.
ISO 9001:2015 Audits
Every one of our businesses has now achieved ISO 9001: 2015
quality certification, with 12 sites audited during the year and
Fortress Fasteners and CFDL/REO achieving certification for
the first time.
Chartered Member of the Sustainable Steel Council (SSC)
We were pleased to be one of the first businesses to receive
certification as a Chartered Member of the Sustainable Steel
Council in its inaugural year of operation. This recognises
the work being done by companies to advance the
sustainability of their operations in line with the SSC charter.
SSC Chartered Membership is also recognised as a criterion
in the New Zealand Green Building Council’s Green Star
(NZGBC) rating scheme.
Steel Construction New Zealand Charter Audits
We successfully achieved recertification against the
Structural Steel Distributor Charter, following an
independent assessment carried out by Telarc, with no non-
conformances identified.
In addition, Telarc performed a full audit against the Bolt
Importer Charter for our Fortress Fasteners for the first
time with no non-conformances raised. Steel & Tube is the
first company in New Zealand to achieve the Bolt Importer
Charter which is the latest steel construction industry quality
assurance programme. The Bolt Importer Charter ensures
that fasteners and anchor bolts supplied to the local steel
construction sector are sourced using good procurement
practice and represents a mark of excellence for bolt
importers in New Zealand.
Lloyds Register - Supplier Mill Audits
We have continued to build on our strong quality
compliance program working with Lloyds Register to
perform independent third-party supplier mill assessments
of mills within Asia Pacific and Europe. In FY21, eight
suppliers were audited within Asia. In FY22, we aim to audit a
further eight existing suppliers plus up to four new suppliers
within Asia Pacific.
Fair Trading Act Compliance Program
As part of our ‘Fair Trading Act’ compliance program, we
have commenced random sampling of high risk products.
These are tested by an independent International
Accreditation NZ (IANZ) accredited laboratory in New
Zealand for verification to the relevant standard. We have
also engaged Lloyd’s Register to verify the sample test
certificates of high and medium risk products against the
reference standard.
Traceability
We are continually improving the traceability of our products
and raw materials with a range of different initiatives. Digital
is playing an important role and we have updated our
dashboards, improved our digital processes to automatically
match test certificates to products, and introduced
easier ways for customers to retrieve test certificates.
These initiatives build trust with our customers and make
transacting with us faster and more efficient, resulting in
reduced costs and improved efficiency for both Steel & Tube
and our customers.
21STEEL & TUBE ANNUAL REPORT 2021

OPERATIONAL AND SUPPLY
CHAIN EXCELLENCE
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE
Corporate governance at Steel & Tube is predicated on
high standards of ethics and performance and is achieved
through robust governance policies, practices and processes
to ensure a culture that is open, transparent and focused
on adding value for our stakeholders. A summary of Steel
& Tube’s corporate governance actions and performance
against each of the principles in the NZX Corporate
Governance Code can be read on pages 75 to 82.
A key focus for Board and management is to deliver long
term sustainable financial returns. The benefits of our
strategic initiatives are now becoming clear and we were
pleased to report an improved financial performance
in FY21. There is still more to do and we remain focused
on gross margin dollar improvement, customer service
and growing sales in attractive segments. Disclosure of
our financial performance can be found in Steel & Tube’s
financial statements on pages 36 to 68.
MATERIAL EFFICIENCY AND RECYCLING
Construction waste is an industry-wide issue. We use leading
edge design technology to ensure optimal use of steel
and labour when making to order, resulting in a reduction
in waste. Other initiatives include recycling and reusing
supplier packaging, and using barcoding to record and
manage the sale of offcuts.
Inventory management is also an important tool in
managing waste. Our investment in data analytics enables us
to identify high demand, fast moving products and reduce
the amount of slow moving aged inventory. Where possible,
we identify alternative markets or opportunities for aged
inventor y.
ENERGY AND CARBON
We have a number of initiatives in place to reduce our
energy use and carbon emissions. An important focus in
FY21 has been network design and freight optimisation,
ensuring our products get from our businesses to our
customers in the most efficient manner possible.
We are also seeing reductions in our fuel consumption
from the transition to newer vehicles and the use of new
telemetry technology. Not only are the new vehicles more
fuel efficient, but the telemetry technology allows us to
encourage driver behaviour that reduces fuel consumption.
>
Implemented measuring and
monitoring of:
–
Waste to landfill
–
Waste recycled
–
Steel scrap
>
Use of leading-edge technology to
optimise material and labour use during
manufacture
>
Positive movement in key metrics:
–
13% reduction in fuel consumed
–
2% reduction in electricity
consumed
–
9% reduction in greenhouse gas
emissions*
>
Freight efficiency programme –
optimising freight routes and loads,
driving reduction in carbon emissions
and fuel use
>
Developed our expertise in new
market opportunities in low carbon
infrastructure e.g. windfarms, solar
energy farms
>
100% of raw materials for reinforcing
steel and seismic mesh sourced in
New Zealand, reducing global freight
requirements
>
Focussed on national footprint and
network design ensuring the most
efficient delivery of products from our
businesses to our customers
>
Robust governance and financial
reporting
HIGHLIGHTS
* We measure our greenhouse gas emissions in tonnes of carbon dioxide equivalents
(tCO2e) and in line with international protocols and standards and include all
material emissions under Scope 1 and 2; with Scope 3 limited to business travel.
$
22STEEL & TUBE ANNUAL REPORT 2021

POSITIVE MOVEMENT IN KEY
SUSTAINABILITY METRICS WAS
DELIVERED ACROSS THE GROUP
FUEL
CONSUMED
4 4 8 , 76 6 LT R S
13%
ELECTRICITY
CONSUMED
5.29 KWH
2%
GREENHOUSE GAS
EMMISIONS
1,703 tCO2E
9%

OUR CUSTOMERS ARE
AT THE HEART OF
OUR BUSINESS AND
WE ARE CONTINUALLY
LOOKING FOR WAYS
TO MAKE IT EASIER
FOR THEM TO DO
BUSINESS WITH US

PUTTING THE CUSTOMER
AT THE HEART OF OUR
BUSINESS
CUSTOMER SATISFACTION
We are building a powerful combination of people and
technology to create customer experiences that are
dynamic, personalised and effortless.
Many of our digital initiatives in FY21 have been focused on
delivering a seamless omni-channel experience that allows
our customers to engage with our company at the time and
through the channel that suits them, whether it be phone,
email, online or face to face.
An important initiative in FY21 was establishing a central
Customer Excellence Centre, while still offering a regional
focus. We have invested in skills development and training
across both our sales and our Customer Excellence teams.
Our call centre staff have expertise across our range of
products and businesses and product experts are available
to provide more specialised information.
PRODUCT LIFE CYCLE PERFORMANCE
Steel is an essential construction material and the backbone
of New Zealand’s built environment and infrastructure.
In a ‘circular economy’, society reduces the burden on
nature by ensuring resources remain in use for as long as
possible through use, reuse, remanufacture and recycling.
Steel is the ideal circular economy material - infinitely
recyclable without product degradation and easily reused
and repurposed.
In addition, there is minimal construction waste of steel
compared to other building products such as timber and
concrete. Renewable energy sources available in New
Zealand are used for making steel; and steel's durability
means less need for replacement or structural changes. Steel
does not buckle, distort, warp or splinter, making it ideal for
earthquake prone areas in New Zealand.
We have worked closely with industry associations and
other businesses this year to ensure that politicians are well
informed on the need for a ‘cradle to cradle’ approach to
assessing the impact of different construction materials.
Importantly, we believe it is also essential that material
choices should be grounded in good science and made by
the experts – engineers, architects and designers.

>
Created centralised Customer
Excellence Centre with regional focus
>
Careful customer segmentation to
ensure service levels match customer
needs
>
Delivered significant reductions in
dropped calls and call wait times
>
Net Promoter Score of 34: continues to
rise strongly (up from 22 in FY20)
>
Improved online access to key
information to meet customer demand:
–
Test certificates
–
Invoices
–
Order tracking
>
Webshops: volume and revenue
growing by 15% per month. Successfully
rolled out in Distribution and to be
expanded in FY22
>
Worked closely with industry to build
awareness of the value of steel as an
essential construction item
HIGHLIGHTS
Average NPS of 34 for FY21
Nov-Dec 18Q2 19/20Q2 20/21
25STEEL & TUBE ANNUAL REPORT 2021

SUPPORTING A WINNING TEAM
TALENT ATTRACTION AND RECRUITMENT
Our aim is to provide a rewarding and welcoming workplace
for our employees. We have experienced minimal impact
from the reported labour shortages in the New Zealand
market, with strong employee loyalty and commitment as
well as attraction of good talent to new roles. Our average
length of service is 6.1 years, reflecting a mix of new and
experienced team members.
We are working closely with our local communities to offer
employment opportunities. This year, as well as continuing
the successful SWEP partnership with Papakura High
School, we also introduced a new Maori cadetship. This is in
conjunction with Te Puni Kokiri which provides subsidised
funding to support mentoring and career path training for
participants. We currently have four cadets and are working
with them to help them achieve their career aspirations.
We also support First Foundation, providing scholarships for
Steel & Tube family members attending tertiary education.
We had one new scholarship this year, with six other
recipients from prior years still being funded and provided
with work experience.
PEOPLE DEVELOPMENT AND LABOUR
PR ACTICES
Our priorities for FY21 were leadership development and
building our online training library. A Leadership Contract
programme, which focuses on driving an accountable
leadership culture, is being implemented across our
organisation, with participation from 70 supervisors and
team leaders. We now have over 50 modules available in
our online library, ranging from IT, systems and AX training,
through to leadership skills and customer service.
We regularly engage with employees to seek their feedback
on what we can do better and over the last 12 months
we were pleased to see our employee NPS lift to 19 – a
great score. Our mobile MySay app allows all leaders to
receive their team results and feedback as well as accessing
coaching to help them improve their results.
We employ people from a diverse range of backgrounds
and over 15 different ethnicities and believe the diversity of
our people makes us a stronger business. The number of
female employees in our business has lifted to 25% (from
22% in FY20), with the number of female reports to General
Managers at 35%.
CULTURE AND WELLBEING
As a high performing team, we want everyone to be
addressing their work as well as personal space. Included in
our online library are modules focused on wellbeing such
as how to check in with workmates, dealing with difficult
people in the workplace and the importance of Me Time.
These are some of our most popular modules.
Pleasingly, our employees have again rated Steel & Tube
highly for ‘caring management support’ and ‘ fair treatment
for employees from all backgrounds’. Our overall health and
wellbeing score is 8 out of 10, up on the prior year.
HIGHLIGHTS
>
Average training investment per
employee approximately $430 per
person
>
Over 50 online training modules
currently available in our online training
library, with 2,000 modules completed
by team members in FY21
>
Leadership programme rolled
out across the organisation with
participation from 70 supervisors and
team leaders
>
New Maori cadetship programme, in
partnership with Te Puni Kokiri with
four cadets currently enrolled in the
programme
>
Continued to support First Foundation;
and Sector Workforce Engagement
Programme (SWEP) with Papakura High
School
>
Strong employee engagement at 7.4/10
and Employee NPS of 19 (up from
industry benchmark of ENPS of 5 in FY20)
>
Introduced Back to School fund,
providing support for Steel & Tube
families
>
Female proportion of workforce
increased to 25% (from 22% in FY20)
$
26STEEL & TUBE ANNUAL REPORT 2021

WE ARE INVESTING
I N TA L EN T
AND BUILDING
AN ENGAGED
WORKFORCE THAT
ADDS VALUE FOR
OUR CUSTOMERS

LEADERSHIP TEAM
MARK
BAKER
GM Group Supply
Chain & Distribution
Centres
DAVID
MCGREGOR
GM Reinforcing
& Wire
MARK
MALPASS
Chief Executive
Officer
MARC
HAINEN
GM
Distribution
ANNA
MORRIS
GM People &
Culture
RICHARD
SMYTH
Chief Financial
Officer & Company
Secretary
DAMIAN
MILLER
GM Quality,
Health, Safety &
Environment
28STEEL & TUBE ANNUAL REPORT 2021

MIKE
HENDRY
Chief Digital
Officer
MARC
HAINEN
GM
Distribution
MOHAMMED
AFROZ
GM Rollforming
Richard Smyth (Right)
Chief Financial Officer
Richard joined Steel & Tube in April 2021 as CFO,
after 16 years with SkyCity Entertainment Group,
holding the role of Deputy CFO for the past
seven years. Prior to this, Richard was a Director
with PwC.
He is an experienced senior finance executive
who brings broad capability to the role. He has
strong technical and commercial skills, strategic
thinking and extensive experience and networks
in the listed company environment.
Mark Baker (Lef t)
General Manager Supply Chain & Distribution
Centres
Mark was appointed to the new role of GM Supply
Chain & Distribution Centres in September 2020.
He brings executive experience in areas such
as operations management, manufacturing,
technology, supply chain, logistics and customer
engagement. He has worked in the information
technology, manufacturing, logistics and
retail sectors, and held senior roles in leading
NZ companies, such as Foodstuffs Auckland,
PlaceMakers, NZ Post and Kiwi Dairies.
FURTHER STRENGTHENING OUR
LEADERSHIP TEAM IN FY21
29STEEL & TUBE ANNUAL REPORT 2021

OUR BOARD
The Steel & Tube Board currently
comprises five independent Directors,
who have significant relevant industry
and market experience, skills and
expertise that are of value to the
company.
Karen Jordan was appointed to the
Board in December 2020, following the
retirement of Anne Urlwin at the 2020
Annual Shareholders’ Meeting.
The Board has a skills matrix, which
identifies four key focus areas in the
organisation and the skill set which the
Board believes would add value to Steel
& Tube. This can be seen on page 76.
Directors’ capabilities are considered
against this skills matrix and the Board
believes that the current directors offer
valuable and complementary skill sets.
Importantly, every one of Steel & Tube’s
Directors has either worked in, or is
involved in directorships, in this sector.
The Board has identified that the
addition of a director with experience
in Digital transformation will add
strength to the Company and is actively
seeking candidates.
SUSAN PATERSON
ONZM, CFINSTD, MBA (LDN), BPHARM
CHAIR AND INDEPENDENT DIRECTOR
Susan became a Director on 16 January
2017 and was appointed Chair on 16
February 2017. A professional Director
since 1996, in 2015 Susan was appointed
an Officer of the Order of New
Zealand (ONZM) for her services to
corporate governance. Having trained
and practiced as a pharmacist, Susan
completed her MBA at London Business
School, then worked in strategy and
IT consulting and management roles
in New Zealand, Europe and USA. She
worked in the steel sector at Fletcher
Challenge and was General Manager of
Wiremakers. Susan’s directorships also
include Arvida Group, Theta Systems
(Chair), Les Mills NZ, the Reserve Bank,
ERoad and Lodestone Energy. Susan is
a mentor on the Institute of Director’s
Mentoring for Diversity programme.
CHRIS ELLIS
BE, MS , CMINSTD
INDEPENDENT DIRECTOR
Appointed a Director on 29 September
2017, Chris’ background spans the
manufacturing, heavy construction
and engineering sectors. He qualified
with a civil engineering degree from
the University of Canterbury, a Master
of Science in civil engineering from
Stanford University and more recently
a senior executive program at Wharton
Business School. He is an experienced,
strategy-focused director with an
extensive career in the Australasian
building industry. He has held CEO roles
with Brightwater Group and at Fletcher
Building where he was Chief Executive
of the Building Products Division. Chris's
directorships include Hiway Group,
Horizon Energy Group, and Steelpipe
NZ, and he is Independent Chair at
Oxcon Ltd.
30STEEL & TUBE ANNUAL REPORT 2021

STEVE REINDLER
BE MECH (Hons), AMP, FIPENZ, CFINSTD
INDEPENDENT DIRECTOR
Steve was appointed a Director on 28
August 2017. Steve is an engineer with a
background in large-scale infrastructure
and heavy industry manufacturing.
He was GM Engineering at Auckland
International Airport for 11 years, and
his previous employment included 22
years with NZ Steel and BHP Steel where
he held a number of roles including GM
Engineering and Environment. Steve
was inaugural chairman of the Chartered
Professional Engineers Council and
President of the New Zealand Institution
of Professional Engineers. Steve’s
current directorships include Z Energy
Ltd, Broome International Airport
Group, Christchurch Multi Use Arena
Project, he is chair of Waste Disposal
Services JV, D&H Steel Construction Ltd,
Clearwater Construction Ltd, Lincoln
University Science North Building
Programme, and is a Trustee of the
Whitford Community Charitable Trust.
JOHN BEVERIDGE
BA, Post Grad Business Diploma, CMINSTD
INDEPENDENT DIRECTOR
John was appointed to the Board on
14 August 2019. He has held a range
of senior executive roles across a
variety of sectors including building
and industrial materials manufacturing,
distribution, finance and consumer
goods. John was most recently the
Chief Executive for the building trade
materials supplier, Placemakers,
and previously held leadership roles
at Godfrey Hirst, Lion Nathan and
Barclays Bank PLC. He currently sits
on the boards of Horizon Energy
Group, NZ Scaffolding Group (Chair),
Door+Window Systems Auckland and
Blood Corp. He has an economics
degree from Otago University, Post
Graduate Marketing Diploma from
Auckland University and has completed
the Senior Executive program at
Columbia University, New York.
KAREN JORDAN
BSOCSC, FCMA, CMINSTD
INDEPENDENT DIRECTOR
Karen was appointed in December
2020. She is a director experienced
across private, public and not-for-profit
sectors. She is a Chartered Member of
the IOD NZ and a Fellow of CIMA. Karen
has over 20 years corporate experience
in FTSE listed energy companies in the
UK energy infrastructure sector. She
is currently a director on the Board
of City Rail Link Ltd, an Independent
Member of the NZDF Risk & Assurance
Committee and of the NZ Inland
Revenue Risk & Assurance Committee.
31STEEL & TUBE ANNUAL REPORT 2021

NON-GAAP FINANCIAL INFORMATION
Steel & Tube uses several non-GAAP measures when discussing financial performance. These include Normalised EBIT and
Working Capital. Management believes that these measures provide useful information on the underlying performance of Steel
& Tube’s business. They are used internally to evaluate performance, analyse trends and allocate resources. Non-GAAP financial
measures should not be viewed as a substitute for measures reported in accordance with NZ IFRS.
NON-TRADING ADJUSTMENTS/UNUSUAL TRANSACTIONS
The financial results for FY21 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 form normalised earnings and can assist users in forming a view of the underlying
performance of the Group.
EBITDA/EBIT
EBITDA is Earnings/(Loss) before the deduction of interest, tax, depreciation and amortisation. EBIT is Earnings/(Loss) before the
deduction of interest and tax. These are both non-GAAP financial measures. FY21 EBITDA and EBIT were impacted by non-trading
adjustments totalling $2.8 million.
Earnings before interest, tax, other gains and losses and impairment represents operating profit for the year before other gains
and losses, impairment and deduction of interest and tax. Earnings before interest, tax and impairment represents operating
profit for the year including other gains and losses before impairment and deduction of interest and tax. Management believes
that these additional measures provide useful information on the underlying performance of the Group’s business.
NORMALISED EBITDA/EBIT
This means EBITDA/EBIT excluding non-trading adjustments and unusual transactions. Management believe that normalised
measures provide a more appropriate measure of Steel & Tube’s performance and more useful information on the normalised
earnings of the company.
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.
EBITDAEBIT
Reconciliation of Reported to Normalised EarningsFY21FY20FY21FY20
Year Ended 30 June$000$000$000$000
Reported40,731 (3 7, 2 3 6) 21,752 (5 7, 6 9 4)
Add back / (subtract) unusual transactions / non-trading adjustments:
Gain on sale of properties(1,215)- (1,215) -
NZ IFRS 16 (reversal of impairment) / impairment(1, 5 4 6)4,298 (1, 5 4 6) 4,298
Goodwill impairment-3 7, 0 7 1 - 3 7, 0 7 1
Intangible asset impairment-9,000 - 9,000
Business restructuring costs-3,449 - 3,449
Site rationalisation execution costs- 2,011 - 2,011
Property, plant and equipment impairment- 1,508 - 1,508
Holiday pay provision-750 - 750
Normalised 3 7,9 7 020,851 18,991 393
FINANCIAL MEASURES
32STEEL & TUBE ANNUAL REPORT 2021

20212020201920182017
$000$000$000$000$000
Financial Performance
Sales 480,023 4 1 7,9 2 3 498,110 495,806 511,400
EBITDA 40,731 ( 3 7, 2 3 6) 24,085 (28,127) 3 9, 3 10
Depreciation and amortisation (1 8 ,9 79) (20,458) (7,290) (8,060) (7,681)
EBIT 21,752 (5 7, 6 9 4) 16,795 (36,187) 31,629
Net interest expense (5,75 4) (6,6 61) (2,828) (4,6 3 1) (3,577)
Profit/(loss) before tax 15,998 (6 4, 3 5 5) 13 ,967 (4 0,818) 28,052
Tax (expense) / benefit 125 4,342 (3,552) 8,768 (8,012)
Profit/(loss) after tax 16,123 (60,013) 10,415 (32,050) 20,040
Operating cash flow31,4503 9,6 0 621,3041,32320,842
Funds Employed
Equity 196,560 181,290 253,901 172,612 212,130
Non-current liabilities 92,023 106,084 26,699 113,826 14 0,98 8
288,583 2 8 7, 3 74 280,600 286,438 353,118
Comprises
Current assets 222,510 193,761 213,827 228,887 243,290
Current liabilities (8 0,0 24) (58,87 1) (45 , 5 6 3) (59,0 9 9) (59,609)
Working Capital 142,486 134,890 168,264 169,788 183,681
Non-current assets 146,097 152,484 112,336 116,650 169,437
288,583 2 8 7, 3 74 280,600 286,438 353,118
Statistics
Dividends per share (cents)
1
4.5-5.07. 0 16.0
Basic earnings per share (cents) 9.8 (36.4) 6.8 (20.9) 13.1
Return on Sales3.4%(14.4%)2.1%(6. 5%)3 .9 %
Return on Equity8.2%(33.1%)4.1%(18.6%)9.4%
Working Capital (times) 2.8 3.3 4.7 3 .9 4.1
Net tangible assets per share$1.11$1.03$1.19$1.27$1.60
Equity to total assets53.3%52.4%7 7. 8 %50.0%51.4%
Gearing (debt to debt plus equity)-5.2%5.6%3 7. 7 %3 7. 4%
Net Interest cover (times) 3.8 (4.9) 5.9 ( 7. 8) 8.8
Ordinary shares 8,036 8,036 8,310 8,163 8,404
Employees 799 884 1,003 1,015 972
- Female 201 192 214 203 193
- Male 598 692 789 812 779
Directors & Officers
- Female 3 4 6 4 4
- Male 11 10 9 8 10
1
Dividends per share are calculated based on dividends issued in respect of the financial year.
FIVE YEAR FINANCIAL
PERFORMANCE
33STEEL & TUBE ANNUAL REPORT 2021

STEEL & TUBE ANNUAL REPORT 202134

Financial Statements 202136
Statement of Profit or Loss and
Other Comprehensive Income
38
Statement of Changes in Equity39
Balance Sheet40
Statement of Cash Flows 41
Notes to the Financial Statements
Section A – Performance43
Section B – Working Capital49
Section C – Fixed Capital54
Section D – Funding58
Section E – Other60
Independent Auditor's Report69
General Information
Governance75
Remuneration83
Disclosures87
Directory91
FINANCIAL
REPORT
35STEEL & TUBE ANNUAL REPORT 2021

THE FINANCIAL REPORT FOR STEEL & TUBE INCLUDES THESE SECTIONS:
· Financial Statements
· Performance
· Working Capital
· Fixed Capital
· Funding
· Other
KEY POLICY
Significant accounting policies which are relevant to the understanding of the financial statements are provided throughout
the report.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Preparation of these 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.
Estimates and judgements are continually evaluated, based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions about
the future. Actual results may differ from these estimates.
KEY JUDGEMENTS
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets
and liabilities within the next financial year are highlighted throughout the report.
GENERAL INFORMATION
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 prepared:
• In accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), for which Steel & Tube is a for-profit
entity
• To comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and with International
Financial Reporting Standards (IFRS)
• In accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules
(issued 10 December 2020)
• In New Zealand dollars (which is the Company’s and subsidiaries’ functional currency and the Group’s presentation currency)
and rounded to the nearest thousand dollars
• Under the historical cost convention, as modified by the revaluation of certain assets as identified in specific accounting
policies
FINANCIAL STATEMENTS 2021
36STEEL & TUBE ANNUAL REPORT 2021

NON-GAAP FINANCIAL INFORMATION
The Group’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP) is profit for
the period, or net profit after tax. The Group also uses non-GAAP financial information which is not prepared in accordance with
NZ IFRS when discussing financial performance. The directors and management believe that this non-GAAP financial information
provides useful information to readers of the financial statements to assist in the understanding of the Group’s financial
performance.
Definitions of non-GAAP financial information used in these financial statements are:
• Earnings before interest, tax, other gains and losses and impairment
• Earnings before interest, tax and impairment
• Earnings before interest and tax
37STEEL & TUBE ANNUAL REPORT 2021

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2021
20212020
1
Notes$000$000
Sales revenue 480,023 4 1 7,9 2 3
Other operating incomeA5 273 7, 4 4 9
Cost of salesA2 (3 81,9 29) (338,470)
Operating expensesA2 (79,903) (9 2,4 00)
Earnings / (loss) before interest, tax, other gains and losses and impairment 18,464 (5,498)
Other gains / (loss)C1 1,410 (6 6)
Earnings / (loss) before interest, tax and impairment 19,874 (5, 56 4)
Impairment of property, plant and equipment and intangiblesC1, C2 - (4 7, 5 7 9)
Reversal / (Impairment) of Right-of-use assetsC4 1,878 (4,551)
Earnings / (loss) before interest and tax 21,752 (5 7, 6 9 4)
Interest income 98 98
Interest expense (5,852) (6,759)
Profit / (loss) before tax 15,998 (6 4, 3 5 5)
Ta x c r e d i tA4 125 4,342
Profit / (loss) for the period attributable to owners of the Company 16,123 (60,013)
Items that may subsequently be reclassified to profit or loss
Other comprehensive income - hedging reserve 488 17
Items that may not subsequently be reclassified to profit or loss
Other comprehensive loss - revaluation reserveC1 - (1,6 4 6)
Other comprehensive income - deferred tax on revaluation reserve 245 84
Total comprehensive income / (loss) 16,856 (61, 5 58)
Basic earnings per share (cents)A1 9.8 (36.4)
Diluted earnings per share (cents)A1 9.8 (36.4)
1
The Group has reclassified the prior period balances between Cost of sales and Operating expenses to align with the presentation at 30 June 2021. Refer to Note A2 for details.
38
STEEL & TUBE ANNUAL REPORT 2021

STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
Share
capital
Retained
earnings
Hedging
reserve
Revaluation
reserve
Treasury
shares
Share-based
payments
Total
equity
Notes$000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2020156,66922,541(85)4,552(2 , 896)509181,290
Comprehensive income
Profit after tax - 16,123 - - - - 16,123
Other comprehensive (loss) / income
Hedging reserve (net of tax) - - 488 - - - 488
Release of revaluation to retained earnings - 4,797 - (4, 7 9 7) - - -
Deferred tax on above - - - 245 - - 245
Total comprehensive income - 20,920488(4, 5 5 2) - - 16,856
Transactions with owners
Dividends paidA1 - (2 ,008) - - - - (2 ,008)
Employee share schemes - 268 - - - 154422
Balance at 30 June 2021156,66941,721403 - (2 , 896)663196,560
Balance at 1 July 2019156,66994,142(102)5,832(2 , 896)256253,901
Adoption of NZ IFRS 16 (net of tax)-(9, 76 2)----(9, 76 2)
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 - (60,013) - - - - (60,013)
Other comprehensive (loss) / income
Hedging reserve (net of tax) - - 17 - - - 17
Release of revaluation to retained
earnings - (282) - 282 - - -
Asset revaluation - - - (1,6 4 6) - - (1,6 4 6)
Deferred tax on above---84--84
Total comprehensive income - (60,295)17(1, 280) - - (61,558)
Transactions with owners
Dividends paid A1 - (2, 518) - - - - (2, 518)
Supplementary dividend tax credits
received - 908 - - - - 908
Employee share schemes - 66 - - - 253319
Balance at 30 June 2020156,66922,541(85)4,552(2,896)509181,290
39STEEL & TUBE ANNUAL REPORT 2021

BALANCE SHEET
As at 30 June 2021
20212020
Notes$000$000
Current assets
Cash and cash equivalentsE6 25,033 1 7, 4 1 8
Trade and other receivablesB2 83,401 73,797
InventoriesB1 113,469 101,061
Income tax receivable - 432
Derivative assetsE6 607 103
Assets held for sale - 950
222,510 193,761
Non-current assets
Deferred taxA4 11,773 11,595
Income tax receivable 1,361 908
Property, plant and equipmentC1 34,393 41,009
IntangiblesC2 13,033 11,886
Right-of-use assetsC4 85,537 8 7, 0 8 6
146,097 152,484
Total assets 368,607 346,245
Current liabilities
Trade and other payablesB3 63,892 3 9,10 5
ProvisionsE2 3,006 6,896
Derivative liabilitiesE6 47 223
Short term lease liabilitiesC4 13,079 12,647
80,024 58,871
Non-current liabilities
BorrowingsD1 - 10,000
ProvisionsE2 1,281 1,024
Long term lease liabilitiesC4 90,742 95,060
92,023 106,084
Equity
Share capitalD3 156,669 156,669
Retained earnings 41,721 22,541
Other reserves (1,8 30) 2,080
196,560 181,290
Total equity and liabilities 368,607 346,245
These financial statements and the accompanying notes were authorised by the Board on 23 August 2021.
For the Board
Susan Paterson
K
aren Jordan
Chair
Director
40STEEL & TUBE ANNUAL REPORT 2021

STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
20212020
Notes$000$000
Cash flows from operating activities
Customer receipts 468,634 42 9, 3 3 9
Interest receipts 77 98
Payments to suppliers and employees (4 3 1 , 5 6 5) (389,101)
Payments for interest on leases (4,9 9 8) (5, 590)
Income tax payments - (43 0)
Interest payments (698) (1, 314)
Wage subsidy received - 6,604
Proceeds for litigation settlementE2 (1, 563) -
Insurance proceeds receivedE2 1,563 -
Net cash inflow from operating activities 31,450 39,606
Cash flows from / (to) investing activities
Property, plant and equipment disposal proceeds 8,650 5,937
Property, plant and equipment and intangible asset purchases ( 7, 6 5 6) ( 7, 5 8 6)
Net cash inflow / (outflow) from investing activities 994 (1,6 49)
Cash flows to financing activities
Repayment of borrowings (10,000) (14,000)
Dividends paid (2 ,008) (2, 518)
Payment for leases (12 ,821) (13,031)
Net cash outflow from financing activities (24, 8 29) (2 9, 5 49)
Net increase in cash and cash equivalents 7,615 8,408
Cash and cash equivalents at the beginning of the year 1 7, 4 1 8 9,010
Cash and cash equivalents at the end of the year 25,033 1 7, 4 1 8
Represented by:
Cash and cash equivalents 25,033 1 7, 4 1 8
25,033 1 7, 4 1 8
Reconciliation of profit /(loss) after tax to cash flows from operating activities
Profit / (Loss) after tax16,123 (60,013)
Non-cash adjustments:
Depreciation and amortisation18,979 20,458
Deferred tax(178)(4,419)
Impairment of property, plant and equipment and intangibles - 4 7, 5 7 9
(Reversal of impairment) / Impairment of right-of-use assets(1,878) 4,551
Other gains on lease reassessments(582) -
Share scheme expense425 299
Other 268 (3 74)
Gain on items classified as investing activities:
(Gain) / Loss on property, plant and equipment disposals(828)66
32,329 8,147
Movements in working capital:
Income tax(21) -
Inventories(12 ,408)12,901
Trade and other receivables(9,6 0 4)16,937
Trade and other payables and provisions21,154 1,621
Net cash inflow from operating activities31,450 39,606
41STEEL & TUBE ANNUAL REPORT 2021

COVID-19 PANDEMIC
The World Health Organisation declared a global pandemic on 11 March 2020 due to the outbreak and spread of Covid-19.
Since then, the New Zealand Government had announced multiple changes to the lockdown levels. Whilst this has impacted
the Group’s results, there has been positive levels of trading activity as the market gradually recovers following the Covid-19
lockdown levels.
An assessment of the impact of Covid-19 on the Group financial statements as at 30 June 2021 is set out below, based on
information available at the time of preparing the financial statements.
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 and the most recent economic forecasts.
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 30 June 2021 (30 June 2020:
$ 2.4m).
IntangiblesThe Group’s Intangible assets are stated at historical cost less accumulated amortisation and
impairment. Following the impairment recognised on the Group’s software intangible asset
as at 30 June 2020, the Group has concluded that the Group’s Digital strategy remain largely
unchanged as at 30 June 2021 and that no reversal of the previous impairment of intangible
assets should be made.
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 financial year. The Group has therefore concluded no
impairment is required as at 30 June 2021.
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 of these leases and upon
exercising an early termination of its lease prior to maturity. This has resulted in a total gain of
$1.1m recognised as at 30 June 2021.
During the financial year, the Group had also successfully secured a sub-lease arrangement
for one of its longer term leases which had been impaired previously. Based on the current
market outlook and consideration over the sites’ utilisation of space in line with the Group’s
network strategy, the Group has re-assessed the assumptions previously applied. Based on the
assessment performed, the Group has recognised a reversal of impairment of $0.8m on these
leases as at 30 June 2021.
BorrowingsThere has been no changes to the covenants and waivers granted by the Group’s banking
partners since 30 June 2020. As at 30 June 2021, the Group did not rely on the waivers granted
and is compliant with its covenants.
Inventories
The Group has undertaken a review of its inventory holdings to identify any inventory of higher risk
of impairment, in particular slow moving inventory. Based on the assessment performed, the Group
has recognised a provision for write-downs of $2.2m as at 30 June 2021 (30 June 2020: $1.0m).
ProvisionsThe Group has utilised provisions of $2.7m following the completion of site exits and
restructuring activities which were underway up to the financial year ended 30 June 2021.
Deferred taxFollowing improved trading results, the Group reviewed previously unrecognised tax losses and
determined that it was now probable that taxable profits will be available against which the tax
losses can be utilised. Based on the assessment performed, a deferred tax asset of $4.4m was
recognised for these losses.
42STEEL & TUBE ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
This section focuses on the Group’s financial performance and returns provided to Shareholders.
A1: DIVIDENDS AND EARNINGS PER SHARE
On 25 February 2021, the Board declared an unimputed interim dividend of 1.21 cents per share ($2.0m). The dividends were paid
to shareholders on 26 March 2021. On 23 August 2021, the Board declared an unimputed final dividend of 3.29 cents per share
(2020: nil).
20212020
$000 $000
Dividends paid 2,008 2,518
FY21FY20
Dividends were paid / payable in respect of the following years:$000 $000
Interim Dividend Paid 2,008 -
Final Dividend Payable 5,461 -
To t a l 7, 4 6 9 -
Cents per share
FY21FY20
Interim Dividend (unimputed)1.21 -
Final Dividend (unimputed) 3.29 -
Basic earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average number of
fully paid shares less treasury shares.
Diluted earnings per share includes partly paid shares (see Note D3) and represents the Group’s earnings per share if unvested
share options were exercised. The weighted average number of shares is adjusted by the number of outstanding rights to
executive shares that are deemed to vest at their future vesting dates.
2021 2020
Earnings / (Loss) per share (EPS)$000 $000
Profit / (Loss) after tax16,123 (60,013)
Weighted average number of shares for basic EPS 165,000 165,000
Weighted average number of shares for diluted EPS166,026 165,025
Basic earnings / (loss) per share (cents)9.8 (36.4)
Diluted earnings / (loss) per share (cents)9.8 (36.4)
PERFORMANCE
SECTION A
43STEEL & TUBE ANNUAL REPORT 2021

A2: EXPENSES
20212020
Cost of sales and operating expenses:Notes$000 $000
Inventories expensed in cost of sales348,863304,341
Bad and doubtful debts / (recovered)(79)2,826
Depreciation and amortisationC 1/C 2/C418,97920,458
Directors’ fees449473
Donations11
Employee benefits69, 26 371,066
Restructuring expenses - 5,169
Defined contribution plans 1,5191,536
Information technology expenses6,4546,599
Foreign exchange gains(860)(540)
Operating leases232(3 26)
Other expenses1 7, 0 1 119, 267
Total cost of sales and operating expenses461,832430,870
Inventory sold during the period is expensed as cost of sales. Inventory write-downs including scrap incurred in the ordinary
course of business are included within Inventories expensed in cost of sales.
Depreciation of $1.5 million (2020: $1.7 million) related to equipment used to manufacture products is included in cost of sales.
Depreciation of right-of-use assets and other depreciation is included in operating expenses.
Operating leases relates to short term and low value lease costs not included in NZ IFRS 16 costs.
The Group has reclassified $4.7m from operating expenses to costs of sales in the prior reporting period ended 30 June 2020 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.
44STEEL & TUBE ANNUAL REPORT 2021

A3: OPERATING SEGMENTS
The Group has identified two reporting segments as at 30 June 2021 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 and expenses.
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 30 June 2021 is as follows:
DistributionInfrastructure
Other/
Elimination
Reconciled
to Group
2021$000 $000 $000 $000
Timing of revenue recognition
At a point in time286,766 9 7, 2 8 6 17 384,069
Over time - 95,954 - 95,954
Revenue from external customers286,766 193,240 17 480,023
Depreciation and amortisation(9,9 20)(6,490)(2, 569)(1 8 ,9 79)
Expenses(261,646)(180,198)2,552 (4 3 9, 2 9 2)
Segment EBIT 15,200 6,552 - 21,752
Interest on leases (2,913)(2,057)(28)(4,9 9 8)
Interest - others (net)(75 6)
Reconciled to Group Profit Before Tax15,998
DistributionInfrastructure
Other/
Elimination
Reconciled to
Group
2020$000 $000 $000 $000
Timing of revenue recognition
At a point in time24 7,9 5 1 88,230 17 336,198
Over time - 81,725 - 81,725
Revenue from external customers247,951 169,955 17 4 1 7,9 2 3
Depreciation and amortisation(10,004)( 7, 0 1 6)(3,438)(20,458)
Expenses(238,128)(162,478)2,784 (397,822)
Impairment of property, plant and equipment and intangibles(25,230)(2 2, 3 49) - (4 7, 5 7 9)
Impairment of right-of-use assets(1,9 9 1)(2,035)(272)(4, 2 9 8)
Site rationalisation costs(95 1)(9 2 5)(135)(2 ,011)
Restructuring costs(1, 591)(1,218)(6 4 0)(3,4 49)
Segment EBIT(2 9,94 4)(26,0 6 6)(1,6 8 4)(5 7, 6 9 4)
Interest on leases (3,175)(2, 3 5 4)(61)(5, 590)
Interest - others (net)(1,071)
Reconciled to Group Loss Before Tax(6 4, 3 5 5)
45STEEL & TUBE ANNUAL REPORT 2021

Depreciation and amortisation recognised as at 30 June 2021 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 IFRS 16 Leases to allow comparison on a like-to-like basis.
Interest recognised under NZ IFRS 16 Leases is shown separetely in the financial reports provided to the CEO. Comparative figures
have been amended to disclose interest recognised under NZ IFRS 16 Leases to allow comparison on a like-to-like basis. 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 reported 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. Comparative figures have been amended to include a
reclassification of $1.3m of revenue recognised from at a point in time to over time, in line with current year presentation.
A4: INCOME AND DEFERRED TAX
Income tax comprises both current and deferred tax.
All entities in the Group are part of the same income tax group.
KEY POLICY
Current tax is the expected payable on the taxable income for the period, using current tax rates, and any adjustment to tax
payable in respect of prior periods.
Deferred tax is recognised in respect of temporary differences arising between the tax base of assets and liabilities and their
carrying amounts in the financial statements. Deferred tax assets are only recognised to the extent that it is probable future
taxable profits will offset temporary differences. Tax rates used are those that have been enacted or substantially enacted at
balance date and which are expected to apply when the deferred tax asset or liability crystalises.
Deferred tax is not provided if it arises from the following differences:
• Goodwill not deductible for tax purposes
• Initial recognition of assets and liabilities in a transaction other than a business combination that affects neither
accounting or taxable profit
• Investment in subsidiaries where the timing of the reversal of the temporary difference is controlled by the Group to the
extent that they will probably not reverse in the foreseeable future
Income and deferred tax
Income tax expense
20212020
The income tax expense is determined as follows:$000$000
Profit or loss
Current income tax
Adjustments in respect of prior periods-(1,295)
Prior period adjustment not recognised in current period-1,295
Deferred income tax
Depreciation, provisions, accruals, tax losses and other(210)(4, 3 42)
Adjustments in respect of prior periods85-
Income tax credit recognised in profit or loss(125)(4, 3 42)
46STEEL & TUBE ANNUAL REPORT 2021

KEY JUDGEMENT - RECOGNITION OF DEFERRED TAX ASSET
The Group reviewed previously unrecognised tax losses and determined that it was now probable that taxable profits will
be available against which the tax losses can be utilised. As a consequence, a deferred tax asset of $4.4m was recognised
for these losses.
20212020
Reconciliation of income tax expense / (credit)$000$000
Profit / (Loss) before tax1 5,998(6 4, 3 5 5)
Non-assessable income(1, 503)(6,604)
Non-deductible expenditure29744,535
14,792(26,424)
Tax at current rate of 28%4,142( 7, 3 9 9)
Prior period adjustment85(1,295)
Tax losses (recognised) / not recognised(4, 3 5 2)4,352
Total income tax credit(125)(4, 3 42)
Represented by:
Deferred tax(125)(4, 3 42)
(125)(4, 3 42)
Deferred tax assets and liabilities
The table below shows the movement in the deferred tax balances that are recognised at the beginning and end of the period.
Opening
balance
$000
Prior period
adjustments
$000
NZ IFRS 16
Transition tax
impact
$000
Recognised
in income
$000
Recognised
in equity
$000
Tax losses
recognised
/ (not
recognised)
$000
Closing
balance
$000
Group 2021
Property, plant and equipment(2,112)37 - (6 3 8)245 - (2 ,468)
Net lease liability5,260 - - (6 0 4) - - 4,656
Employee benefits1,420 - - 828 - - 2,248
Provisions2,493 - - (332) - - 2,161
Cash flow hedging reserve34 - - - (192) - (158)
Net taxable loss 4,500(122) - (3 , 3 96) - 4,3525,334
11,595(85) - (4,14 2)534,35211,773
Group 2020
Property, plant and equipment(4,47 1) - - 2,27584 - (2,112)
Net lease liability - - 3 ,9591,301 - - 5,260
Employee benefits1,383 - - 37 - - 1,420
Provisions1,9 2 7 - (163)729 - - 2,493
Cash flow hedging reserve41 - - - (7) - 34
Net taxable loss 4,5001,295 - 3,057 - (4, 3 5 2)4,500
3,3801,2953,7967, 3 9 977(4, 3 5 2)11,595
47STEEL & TUBE ANNUAL REPORT 2021

20212020
$000$000
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax liabilities(2 ,6 26)(2,112)
Deferred tax assets14,39913,707
11,77311,595
Imputation credits available at 30 June 2021 were $0.025m (2020: $0.005m).
A5: OTHER OPERATING INCOME
Other operating income for the financial year ended 30 June 2020 included wage subsidy of $6.6m which the Group applied for
and received from the New Zealand Government during the Covid-19 pandemic. The funds received have been accounted for
in line with NZ IAS 20 Government Grants and Disclosure of Government Assistance. The Group elected to recognise the funds
received under the wage subsidy scheme as other income in the Statement of Profit or Loss and Other Comprehensive Income.
No further wage subsidy was received by the Group for the financial year ended 30 June 2021.
48STEEL & TUBE ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
This section contains details of the short term operating assets and liabilities required to service the Group’s distribution
branches and processing sites.
B1: INVENTORIES
KEY POLICY
Inventories are stated at the lower of cost and net realisable value, with cost determined on a moving average cost basis
or standard cost basis. Costs include expenditure incurred in acquiring the inventories and bringing them to their existing
location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion, and selling expenses.
KEY JUDGEMENT - INVENTORY VALUATION
The majority of the Group’s inventory comprises steel products and fastenings, which have long lives and generally are not
at risk of obsolescence. The Group undertook an assessment of its inventory holdings at 30 June 2021 to determine whether
the net realisable value (NRV) of inventory was greater than or equal to the current carrying value of inventory. The Group
has undertaken a full review of all aged inventory to identify any inventory at higher risk of impairment, particularly slow
moving inventory. Following this review, an impairment provision of $2.2m (2020: $1.0m) has been recognised as at 30 June
2021 to record the carrying value of inventory at its NRV where that is considered to be lower than its cost. Judgement
was required in determining if the slow moving inventory can be sold and its expected sales price, and therefore whether
inventory should be impaired. This includes consideration of forecast market conditions and prices.
To further support the valuation of inventory the Group operates a regular inventory count programme which requires
inventory to be counted on a cycle count basis, and through a full wall-to-wall count where required to ensure the accuracy
of the Group’s Inventory records.
The Group holds inventories valued at $113.5 million (2020: $101.1 million).
Provision for write-downFinished goods at realisable value
113,469
(2,226)
101,061
(966)
20212020
Inventories ($000s)
WORKING CAPITAL
SECTION B
49STEEL & TUBE ANNUAL REPORT 2021

The Group is exposed to foreign exchange risk arising mainly from overseas purchases of inventory. In accordance with its
Treasury Policy, all committed overseas purchase orders are hedged using forward foreign exchange contracts where payment
is made in a foreign currency. The Group qualifies for hedge accounting. The effective portion of the changes in fair value is
recognised in other comprehensive income and accumulated in the Hedging reserve in equity as described in section E9.
As at balance date foreign exchange contracts recorded as assets were $0.61m (2020: $0.1m) and as liabilities were $0.05m (2020:
$0.22m). The notional value of foreign exchange contracts in place as at 30 June 2021 totaled $36.81m (2020: $17.09m). The fair
value of the foreign currency forward exchange contracts is as shown on the Balance Sheet. Refer to section E6 for the fair value
hierarchy determination.
If the NZ dollar had weakened/strengthened by 5% against foreign currencies (primarily US dollar) at balance date, there would
be no impact on profit or loss, as the Group qualifies for hedge accounting and all hedges are 100% effective at balance date.
The effect would be to equity +$1.70m if the NZ dollar strengthened by 5% and -$2.05m if the NZ dollar weakened by 5% (2020: +
$0.93m /- $0.76m respectively).
B2: TRADE AND OTHER RECEIVABLES
KEY JUDGEMENT - PROVISION FOR IMPAIRMENT
The Group has applied the simplified approach to providing for expected credit losses, which requires the recognition of a
lifetime expected loss provision for Trade and other receivables.
The expected credit loss (ECL) allowances for financial assets are based on assumptions about the risk of default and ECL
rates. The Group uses its judgement in making these assumptions and selecting the inputs to the impairment calculation,
which is based on the Group’s historical experience, the aging profile of the financial assets, existing market conditions as
well as external economic forecasts at each reporting date. Details of key considerations and judgements are set out below.
The Group considers the lifetime expected credit losses associated with its receivables upon initial recognition, and on an
ongoing basis at the end of each reporting period. To assess whether there is a specific increase in credit risk, the Group
compares the risk of default occurring on these receivables at the reporting date with the risk of default at the date of
initial recognition. Available forward looking information is considered, including actual or expected significant adverse
changes in business, financial or economic conditions that are expected to cause a significant change to the customer
or counterparty’s ability to meet their obligations. This also incorporates any objective evidence that indicates that the
customers will not be able to pay their debts when due, these include significant financial difficulties of customers and the
probability of entering receivership or bankruptcy.
The Group has analysed its trade receivables balances using three different characteristics and calculated the ECL allowance
by considering the impact of each:
Consideration/Judgements
Baseline/AgingThe Group’s baseline expectation for credit loss is informed by past experience and the aging
profile of the balances, applying an increasing ECL estimate as the balance ages incorporating
forward looking information, such as forecasted economic conditions. This expectation
incorporates any available objective evidence that the customers will not be able to pay their debts
when due, including significant financial difficulties of customers and the probability of entering
receivership, administration or liquidation.
SectorThe Group has considered the credit risk related to the market sector that the customers operate in
and has made an adjustment to the ECL allowance based on assessment of the respective financial
strength of each industry sector.
RegionThe Group has considered the credit risk of its trade receivables portfolio based on the respective
financial strength of each geographic region, and has made an adjustment to the baseline ECL
allowance to reflect this.
50STEEL & TUBE ANNUAL REPORT 2021

Trade receivables at 30 June 2021 are $71.2m (2020: $63.0m) and are recognised initially at fair value and subsequently at amortised
cost less any provision for impairment. The carrying value of Trade and other receivables are equivalent to their fair value.
Current due Prepayments and sundry receivablesProvision for impairmentPast due
68,932
14,488
(2,240)
2,221
5 8 ,9 6 9
13,236
(2,428)
4,020
2021
$83,401
2020
$73,797
Trade and Other Receivables ($000s)
No one customer accounts for more than 5% of Trade receivables at 30 June 2021 (30 June 2020: 3%).
At 30 June 2021 trade receivables of $1.9m (2020: $3.5m) were greater than 60 days overdue. These relate to a number of
independent customers for whom there is no recent history of default. The Group’s credit terms are in line with industry
peers. The Group does not have any customers with payment terms exceeding one year. As a result the Group does not adjust
transaction prices for the time value of money.
The aging profile of the Group’s customer balances is shown below.
05001000150020002500
Within 1 to
3 months
Beyond
3 months
Within
1 month
1,536
2 ,1 2 5
476
1,744
1,745
2,277
20212020
Trade receivables excluding current at 30 June 2021 ($000s)
51STEEL & TUBE ANNUAL REPORT 2021

Provision for impairment
At 30 June 2021 an impairment provision of $2.2m (2020: $2.4m) was held.
The ECL allowance provision has been determined as follows:
CurrentWithin 1 Month1-2 Months2-3 Months
Beyond
3 MonthsTotal
As at 30 June 2021 $000 $000 $000 $000 $000 $000
Gross carrying amount 6 7, 3 9 6 1,536 274 202 1,745 71,153
Baseline/Aging 428 28 46 18 1,706 2,226
Region 4 - - - 2 6
Sector 5 1 - - 2 8
Expected credit loss allowance 437 29 46 18 1,710 2,240
CurrentWithin 1 Month1-2 Months2-3 Months
Beyond
3 MonthsTotal
As at 30 June 2020 $000 $000 $000 $000 $000 $000
Gross carrying amount 56,844 2,125 548 1,196 2, 276 62 ,989
Baseline/Aging 196 230 33 127 1,822 2,408
Region 3 - - 1 4 8
Sector 4 - 1 1 6 12
Expected credit loss allowance 203 230 34 129 1,832 2,428
Movements in the provision for impairment for the year ended 30 June 2021, are as follows:
20212020
Provision for impairment $000 $000
Provision as at 1 July2,4281,94 6
Recognised 1,285 2,524
Utilisation of provision/bad debts recovered(1,473)(2,042)
Provision as at 30 June2,2402,428
The Group is exposed to the risk of customers being unable to pay their debts as they fall due. The maximum exposure is the
total value of these balances. Customers who trade on credit terms are subject to credit verification procedures and credit limits
are set for each customer. The Group’s credit policy is monitored regularly. In some circumstances security over assets may
be obtained from Trade receivables to mitigate the risk of default. There are no significant concentrations of credit risk in the
current or prior years.
The Group also has credit risk in respect of financial institutions that hold the Group’s cash. These institutions have credit ratings
of AA-.
52STEEL & TUBE ANNUAL REPORT 2021

B3: TRADE AND OTHER PAYABLES
Trade PayablesEmployee benefitsAccrued expenses
51,557
6,916
5,419
2021
$63,892
Trade and other payables ($000s)
28,572
4,615
5,918
2020
$39,105
The carrying amounts of the above items are equivalent to their fair values and subsequently measured at amortised cost
using the effective interest method. Trade payables denominated in a foreign currency are not material either in the current or
comparative year. Trade payables have increased significantly when compared to the prior year given trading activity in the prior
year was impacted by Covid-19.
53STEEL & TUBE ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
This section includes details of the Group’s long term assets including tangible and intangible assets and related capital commitments.
C1: PROPERTY, PLANT AND EQUIPMENT
KEY POLICY
Plant and equipment are stated at cost less accumulated depreciation. Assets are tested annually for indicators of
impairment and adjusted if required.
Depreciation is charged on a straight-line basis over the estimated useful lives of the assets. This allocates the cost of an asset,
less any residual value, over its estimated remaining useful life. The residual values and useful lives are reviewed annually.
The estimated useful lives are as follows:
Plant, machinery and motor vehicles 3 - 20 years
Furniture, fittings and equipment 2 - 10 years
Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in profit or loss.
Land & buildings
at fair value
Plant, machinery
& vehicles at cost
Furniture, fittings
& equipment
at costTotal
$000 $000 $000 $000
2021
Opening cost5,900 85,752 18,794 110,446
Opening accumulated depreciation(3 9)(53, 227)(16,171)(69,4 3 7)
Opening net book value5,861 32,525 2,623 41,009
Additions - 3,297 675 3,972
Disposals(5,835)(782)(1)(6,61 8)
Depreciation(26)(3,012)(93 2)(3,970)
Closing net book value - 32,028 2,365 34,393
Comprised of:
Cost or fair value - 82,880 1 7, 2 9 3 100,173
Accumulated depreciation - (50,852)(14,928)(6 5,78 0)
Property, plant and equipment - 32,028 2,365 34,393
2020
Opening cost14,273 88,804 18,454 121,531
Opening accumulated depreciation(14)(53,645)(15,838)(69,49 7)
Opening net book value14,259 35,159 2,616 52,034
Additions - 3,171 1,295 4,466
Land and building revaluations:
Decrease to revaluation reserve(1,6 4 6) - - (1,6 4 6)
Disposals(5,763)(8 26)(86)(6,675)
Impairments - (1,478)(30)(1, 508)
Transfer to assets held for sale(950) - - (950)
Depreciation(39)(3, 501)(1,172)(4,7 12)
Closing net book value5,861 32,525 2,623 41,009
Comprised of:
Cost or fair value5,900 85,752 18,794 110,446
Accumulated depreciation(39)(53,227)(16,17 1)(69,4 3 7)
Property, plant and equipment5,861 32,525 2,623 41,009
FIXED CAPITAL
SECTION C
54STEEL & TUBE ANNUAL REPORT 2021

Included within the plant, property and equipment categories is capital work in progress totalling $2.5m (2020: $1.0m).
During the current financial year, the Group had sold all of its remaining land and buildings. A net gain of $1.2m has been
recognised upon sale in the Statement of Profit or Loss. Refer to disclosure of sale and leaseback transaction in note C4.
C2: INTANGIBLES
Goodwill
Software &
LicencesOtherTotal
$000 $000 $000 $000
2021
Opening cost4 7,1 7 1 30,429 2,522 80,122
Opening accumulated amortisation and impairment(4 7,1 7 1)(19,040)(2,025)(6 8 , 2 3 6)
Opening net book value - 11,389 497 11,886
Additions - 3,596 - 3,596
Amortisation charge - (2 , 343)(1 0 6)(2 ,4 49)
Closing net book value - 12,642 391 13,033
Comprised of:
Cost4 7,1 7 1 34,025 2,522 83,718
Accumulated amortisation and impairment(4 7,1 7 1)(21, 383)(2 ,131)(70,685)
Closing net book value - 12,642 391 13,033
2020
Opening cost4 7,1 7 1 26,778 2,522 76,47 1
Opening accumulated amortisation and impairment(10,100)( 7, 5 3 0)(1,9 19)(19, 5 49)
Opening net book value3 7, 0 7 1 19, 24 8 603 5 6 ,9 2 2
Additions - 3,651 - 3,651
Amortisation charge - (2, 510)(106)(2,616)
Impairment( 3 7, 0 7 1)(9,000) - (4 6 ,07 1)
Closing net book value - 11,389 497 11,886
Comprised of:
Cost4 7,1 7 1 30,429 2,522 80,122
Accumulated amortisation and impairment(4 7,1 7 1)(19,0 4 0)(2,025)(6 8, 2 3 6)
- 11,389 497 11,886
Included within the intangibles categories is capital work in progress totalling $1.5m (2020: $1.3m). Other intangibles comprises
customer relationships and customer contracts arising from business combinations.
55STEEL & TUBE ANNUAL REPORT 2021

KEY POLICY
Goodwill is recognised on a business combination and represents the excess of the acquisition cost over the fair value of the
acquired net assets. Goodwill is allocated to cash-generating units, tested annually for impairment, or more frequently if
events or circumstances indicate it may be impaired, and is carried at cost less accumulated impairment losses.
Computer software and licences are capitalised on the basis of costs incurred to acquire and use the specific licences and
are amortised on a straight-line basis over their estimated useful lives of 3 to 10 years. Computer software and licence
amortisation charges are included in other operating expenses.
Customer relationships and customer contracts are capitalised at fair value on acquisition date and are amortised on a
straight-line basis over their estimated useful lives of 10 and 2 years respectively. Amortisation charges are included in other
operating expenses.
Costs associated with maintaining software programmes are recognised as an expense as incurred. Development costs that
are directly attributable to the design and testing of identifiable and unique software products controlled by the Company
are recognised as intangible assets when the following criteria are met:
• It is technically feasible to complete the software so that it will be available for use
• Management intends to complete the software and use it
• There is an ability to use the software
• It can be demonstrated how the software will generate probable future economic benefits
• Adequate technical, financial and other resources to complete the development and to use or sell the software are
available
• The expenditure attributable to the software during its development can be reliably measured
Directly attributable costs that are capitalised as part of the software include employee costs and an appropriate portion of
relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is ready for
use.
The recent decision issued by the IFRS Interpretations Committee regarding future changes in intangible assets accounting
policy has been discussed further in note E9.
KEY JUDGEMENT - IMPAIRMENT TESTING ON NON-FINANCIAL ASSETS
NZ IAS 36 Impairment of Assets (NZ IAS 36) requires the Group to assess at the end of each reporting period for any
indicators of impairment 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).
For the purpose of assessing impairment, assets are grouped in the smallest identifiable group of assets that generates cash
inflows that are largely independent of the cash inflows from other assets or groups of assets (cash generating unit or CGU),
which as at 30 June 2021 were identified as being Distribution, CFDL/Reinforcing and Rollforming.
As at 30 June 2021, the Group has not identified any indicators of impairment over the assets held at the CGUs. The Group’s
market capitalisation is slightly below net assets at year end, however this market capitalisation value excludes any control
premium and may not reflect the value of 100% of the Group’s net assets. Furthermore, the Group has seen an improved
trading performance in the current financial year when compared to the previous financial year.
The Group has therefore concluded that no impairment is required as at 30 June 2021. The Group has also concluded that
no reversal of the previous impairment of intangible assets should be made following an assessment that the Group’s Digital
strategy remains largely unchanged in the current financial year.
56STEEL & TUBE ANNUAL REPORT 2021

C3: COMMITMENTS
Capital commitments
The Group has contractual commitments of $0.8m (2020: $0.3m) for purchase of plant and equipment.
C4: LEASES
KEY JUDGEMENT - IMPAIRMENT TESTING ON RIGHT-OF-USE ASSETS
The Group has assessed for any indicators of impairment on its right-of-use assets for the financial year ended 30 June
2021. The Group has re-assessed the assumptions used for the previously impaired sites with longer term leases (> 3 years)
based on current market outlook and consideration over the sites’ utilisation of space in line with the Group’s network
strategy. Based on the assessment performed, the Group has recognised a reversal of impairment of $0.8m on these leases
as at 30 June 2021. The Group has also recognised $1.1m which represents a partial recovery of the total impairment charge
recognised in the prior financial year following the surrender and early termination of its previously impaired leases. As a
result, a total of $1.9m of impairment loss reversal was recognised as at 30 June 2021.
The below outlines the recognised right-of-use assets and corresponding lease liabilities by the Group as at 30 June 2021:
PropertiesMotor VehiclesEquipmentTotal
$000$000$000$000
Right-of-use asset at 1 July 2020 83,001 3,232 853 87,086
Additions to right-of-use assets8,8141,46517410,453
Depreciation(10,749)(1,623)(188)(12, 560)
Reassessments29 - - 29
Impairment loss reversed 1,878 - - 1,878
Disposals(1, 3 49) - - (1, 3 49)
Total right-of-use assets at 30 June 2021 81,624 3,074 839 85,537
PropertiesMotor VehiclesEquipmentTotal
$000$000$000$000
Right-of-use asset at 1 July 2019 100,262 4,694 - 104,956
Additions to right-of-use assets1,9 0 53319443,180
Depreciation(11,247)(1,793)(91)(13,131)
Reassessments(3, 368) - - (3, 368)
Impairment loss recognised(4,551) - - (4,551)
Total right-of-use assets at 30 June 2020 83,001 3,232 853 87,086
20212020
Lease liability maturity analysis $000$000
Between 0 to 1 year13,07912,647
Between 1 to 5 years43,80240,327
More than 5 years4 6 ,94 054,733
Lease liabilities as lessee103,821107,707
Sale and Leaseback
The Group entered into a sale and leaseback agreement in relation to one of its previously owned property at 26 – 32 Hautonga
St, Petone, Lower Hutt. The sale was completed on 22 March 2021 with a sales price of $7.0m. The impact of the sale and
leaseback transaction had resulted in an addition of $1.0m to the Group’s right-of-use assets and a corresponding gain of $0.7m
recognised in the Statement of Profit or Loss for the year ended 30 June 2021.
57STEEL & TUBE ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
This section includes details of the Group’s cash, borrowings and capital reserves which provide funds for current and future
activities.
D1: BORROWINGS
20212020
$000$000
Bank loans - 10,000
KEY POLICY
Borrowings are recognised initially at fair value and net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost and any difference between the net proceeds and redemption value is recognised in profit or loss over the
period of the borrowings using the effective interest method. The movement in borrowings shown in the Statement of Cash
Flows is the net of repayments and drawdowns of borrowings. Borrowings are classified as current liabilities if there is no
unconditional right to defer settlement for greater than 12 months.
The Group is required to comply with certain financial covenants that relate to interest cover, group coverage and leverage.
In February 2021, the Group had executed an agreement with its banking partner to amend its current banking facility for a
revised three year $50m Revolving Cash Advance Facility with an expiry date of 15 February 2024. Borrowing facilities arranged
with the Group’s banking partner can be drawn at any time, subject to meeting the terms of the Group’s Facility Agreement.
In June 2020, the Group agreed a variation to its facility agreement which allowed the Group to use alternative measures for
covenant reporting for the second half of the 2021 financial year. As at 30 June 2021, the Group has not relied on financial
covenant waivers and is compliant with all financial covenants.
The Group is exposed to interest rate risk through its drawings under the Group’s bank borrowing facilities at variable interest rates.
The Group manages its liquidity risk by maintaining availability of sufficient cash and funding via an adequate amount of
committed bank borrowing facilities. Owing to the nature of the underlying business, the Group aims to maintain funding
flexibility through committed credit lines. The Group monitors actual and forecast cash flows on a regular basis and rearranges
credit facilities where appropriate.
The table below analyses the Group’s financial liabilities and derivative financial instruments into maturity groupings based on the
remaining period from balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted
cash flows.
Average
Interest
6 months
or less
6 to 12
months
1 to 3
yearsTotal
Carrying
Value
rate$000$000$000$000$000
2021
Trade payables & accruals - 63,892 - - 63,892 63,892
Cash flow hedging of derivatives:
Outflow - 36,533272-36,80536,805
Inflow - (37,088)(277)-(3 7, 3 6 5)(3 7, 3 6 5)
- (555) (5) - (560)(560)
2020
Borrowings4.0%20719810,57310,9 7810,000
Trade payables & accruals - 3 9,10 5 - - 3 9,10 5 3 9,10 5
Cash flow hedging of derivatives:
Outflow - 16,783312-1 7, 0 9 51 7, 0 9 5
Inflow - (16,66 4)(312)-(16 ,9 76)(16 ,9 76)
- 119 - - 119 119
FUNDING
SECTION D
58STEEL & TUBE ANNUAL REPORT 2021

D2: NET DEBT RECONCILIATION
Cash and cash
equivalentsBorrowings Total
$000$000$000
Net debt as at 1 July 20201 7, 4 1 8(10,000)7, 4 1 8
Cash flows7, 6 1 510,0001 7, 6 1 5
Net debt as at 30 June 202125,033 - 25,033
Net debt as at 1 July 20199,010(24,000)(14,9 9 0)
Cash flows8,40814,00022,408
Net debt as at 30 June 20201 7, 4 1 8(10,000)7, 4 1 8
D3: SHARE CAPITAL
The Group’s capital includes share capital, treasury shares, long term borrowings, reserves and retained earnings. The objectives
for managing capital are to safeguard the Group’s ability to continue as a going concern, to provide returns and benefits for
Shareholders and other stakeholders and to maintain a strong capital base for investor, creditor and market confidence. The
Group may adjust the dividends paid to Shareholders, return capital to Shareholders, issue new shares or sell assets to maintain or
adjust its capital structure.
Capital Structure Policy Targets
The Group’s formal capital structure targets are as follows:
1. Net Debt: EBITDA less than 2.0x
2. Gearing ratio less than 30 – 35%
3. Dividend pay-out of between 60% - 80% of Net Earnings (NPAT) adjusted for any significant non-trading items
There has been no material change in the management of capital during the year.
2021 2020 2021 2020
$000 $000 SharesShares
Fully paid:
Balance at the beginning of the year 156,668 156,668 165,972,540 165,972,540
Balance at the end of the year 156,668 156,668 165,972,540 165,972,540
Partly paid:
Balance at the beginning of the year 1 1 25,000 25,000
Balance at the end of the year 1 1 25,000 25,000
Total balance at the end of the year 156,669 156,669 165,997,540 165,997,540
The holders of ordinary shares are entitled to receive dividends declared from time to time and to one vote per share at meetings
of the Company. Ordinary shares issued and partly paid as part of the Senior Executives’ Share Scheme 1993 do not have dividend
or voting entitlements until the shares are paid in full but qualify for bonus and cash issues.
Ordinary shares are classified as equity. Where any controlled entities purchase Company shares that have not been allocated,
the consideration paid and directly attributable costs are deducted from equity and classified as treasury shares.
2021 2020 2021 2020
Treasury shares$000 $000 SharesShares
Balance at the beginning of the year 2,896 2,896 972,849 972,849
Balance at the end of the year 2,896 2,896 972,849 972,849

Treasury shares are unallocated Company shares held by the Trustee of the Executive Share Plan 2003 and are recognised as a
reduction in shareholders’ funds of the Group. There were no Treasury shares purchased during the year.
59STEEL & TUBE ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
This section contains additional notes and disclosures which do not form part of the primary sections but which are required to
comply with financial reporting standards.
• Financial risk management
• Provisions
• Contingent liabilities
• Auditor remuneration
• Related party and share based plans
• Financial instruments
• Financial assets
• Subsequent events
• Other accounting policies
E1: FINANCIAL RISK MANAGEMENT
The Group is exposed to financial risk: market risk, credit risk and liquidity risk.
The Group’s Treasury Policy is approved by the Board and is reviewed every three years. The Treasury Policy establishes principles
and risk tolerance levels to guide management in carrying out risk management activities to minimise potential adverse effects
on the financial performance of the Group. Compliance with policy is monitored and reviewed on a monthly basis.
Detail relevant to the following risks are covered in relevant sections:
Foreign exchange risk (a market risk) Inventories B1
Interest rate risk (a market risk) Borrowings D1
Credit risk Trade & other receivables B2
Liquidity risk Borrowings D1
E2: PROVISIONS
Restructure
Provision
Make Good
Provision
Commerce
Commission
Provision
Holiday Pay
Provision
Other
ProvisionsTotal
$000 $000 $000 $000 $000 $000
Opening balance 2,366 2,795 2,009 750 - 7,9 2 0
Additions - 469 - 104 509 1,082
Used(2,217)(4 89)(2,009) - (4,7 15)
Closing balance 149 2,775 - 854 509 4,287
Current149 1,494 - 854 509 3,006
Non Current - 1,281 - - - 1,281
OTHER
SECTION E
60STEEL & TUBE ANNUAL REPORT 2021

KEY POLICY
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event. This
occurs when it is probable that a cost will be incurred to settle the obligation and a reliable estimate can be made of that
obligation. Where material, provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects
current market assessments of the time value of money. Where discounting is used, the increase in the provision due to the
passage of time is recognised as an expense.
• Restructure Provision. The Group undertook a business restructure folowing the impact of Covid-19 in the preceding year and
the activities related to the restructure have largely concluded as at 30 June 2021. Costs included within this provision relate to
the remaining committed restructuring activities.
• Make Good Provision on existing tenanted properties, including Stonedon Drive remediation work agreed as part of the sale
and purchase agreement. Remediation work is currently in progress with a remaining provision estimated at $1.4m. Actual
payment dates and costs will be known once each lease reaches its expiry date.
• Commerce Commission Provision. In December 2016 the Commence 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 relates to the inadvertent use of a testing
laboratory’s logo on test certificates, and application of testing methodologies.
In November 2020, the Court of Appeal confirmed a fine of $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 utilised and an
insurance payment was received. There was no net impact on the reported profit for the period.
• Holiday Pay Provision. The provision relates to the Group’s potential backdated holiday pay obligations of $0.75m following a
High Court judgement on an unrelated company on a similar matter. An additional $0.1m has been recognised in the current
financial year based on the Group’s incentive arrangement. This provision recognised represents the best estimate of the
Group’s exposure based on the current High Court ruling. The expected settlement of this obligation is dependant on the
outcome of the appeal of the current High Court judgement.
• Other Provisions relates to an estimate of the costs of customer claims for faulty or defective products supplied.
61STEEL & TUBE ANNUAL REPORT 2021

E3: CONTINGENT LIABILITIES
Indemnities given to the Company’s trading banks in respect of performance bonds were $3.5m (2020: $2.7m) at balance date and
were transacted in the ordinary course of business.
E4: AUDITOR REMUNERATION
20212020
Fees paid to PwC$000 $000
Annual audit & half year review 443 461
Tax advisory services in relation to the Company’s Executive Share Scheme - 1
To t a l 443 462
E5: RELATED PARTY AND SHARE BASED PLANS
The Group has related party relationships with its controlled entities and with key management personnel.
The subsidiaries in the Group are:
2021 2020
SubsidiariesPrincipal ActivityBalance DateHoldingHolding
Steel & Tube New Zealand LimitedNon-trading30 June100%100%
Composite Floor Decks Holdings LimitedNon-trading30 June100%100%
Studwelders LimitedNon-trading30 June100%100%
S & T Plastics LimitedNon-trading30 June100%100%
S & T Stainless LimitedStainless Distributor30 June100%100%
Manufacturing Suppliers LimitedFastenings Distributor30 June100%100%
Composite Floor Decks LimitedFloor Decking Installer30 June100%100%
2021 2020
Transactions with Key Management Personnel$000 $000
Short-term benefits 4,333 3,598
Share-based benefits (accounting expense) 311 274
Termination benefits 155 122
4,799 3 ,9 94
The Key Management Personnel are the Non-Executive Directors and Executive Management. Included in short term benefits
are Directors’ fees of $448,983 (2020: $472,696).
Other Transactions with Related Parties
Certain Directors, shareholders and Management have relevant interests in a number of companies with which the Group has
transactions in the normal course of the business. A number of the Group’s Directors are also non-executive Directors of other
companies, and a register of Directors’ interests is maintained. Any transactions undertaken with these entities have been
entered into in the normal course of business.
Certain Directors and Management hold shares in the Group and receive dividends in the normal course of business.
62STEEL & TUBE ANNUAL REPORT 2021

Performance Rights Plan 2017
In February 2018 a new executive share plan was approved by the Board, known as the Performance Rights Plan 2017 (PRP). The
performance period for this scheme runs for 3 years and comprises two performance conditions (50% each) as follows:
a) The Benchmark Comparator (BC) ranks the Company’s Total Shareholder Return (TSR) relative to the TSR of the NZX 50 Index
securities:
• Where the Company TSR equals the 50th percentile TSR of the Index Companies over the Performance Period, 50% of (BC)
Performance Rights will vest
• Where the Company TSR equals or exceeds the 75th percentile TSR of the Index Companies over the Performance Period,
100% of (BC) Performance Rights will vest
• Where the Company’s TSR over the Performance Period exceeds the 50th percentile TSR of the Index Companies but does
not reach the 75th percentile, then between 50% and 100% of the (BC) Performance Rights, will vest as determined on a
linear pro-rata basis
b) The Absolute Comparator (AC) ranks the Company’s TSR relative to the Company’s Cost of Equity (CoE) plus a premium of 2%
annualised and compounding:
• Where the Company TSR is less than or equal CoE no (AC) Performance Rights will be vested
• Where the Company TSR is equal to or greater than CoE + 2%, 100% of (AC) Performance Rights will vest
• Where the Company TSR is greater than CoE but less than (CoE) + 2%, then between 50% and 100% of the (AC) Performance
Rights will vest as determined on a linear pro-rata basis
Performance Rights are only able to be exercised after completion of the three year performance period, providing and only
to the extent that the performance conditions, and other relevant service and non-market performance conditions, have been
satisfied. Any Benchmark and Absolute Comparator Performance Rights that do not vest at the Measurement Date will lapse.
During the year the following movements of rights to shares occurred in accordance with the rules of the PRP:
No. of Rights
Available
No. of Rights
Available
20212020
Opening Balance2,271,834 1,278,789
New Rights Granted2,067,187 1,151,208
Rights Forfeited(470,798)(158,163)
Rights Lapsed(189,747) -
To t a l3,678,476 2,271,834
Rights Performance Conditions
Start DatesExpiry date
Issue date
fair value
Total Rights
Issued
Rights Available
30 June 2021
Rights Available
30 June 2020
1 September 2017 - Tranche 11/09/2020 $2.09 371,366 - 195,673
12 September 2018 - Tranche 212/09/2021 $1.20 1,160,204 713,669 9 24,95 3
6 September 2019 - Tranche 36/09/202 2 $0.80 1,215,524 961,936 1,151,208
11 September 2020 - Tranche 411/09/202 3 $0.75 2,002,871 2,002,871 -
To t a l 4,749,96 5 3,678,476 2,271,834
Weighted average remaining contractual life of options outstanding at end of period 1.52 0.98
63STEEL & TUBE ANNUAL REPORT 2021

The fair value of rights is determined using a Monte Carlo share price simulation model. The significant inputs into the model for
rights granted during the period were the market share price at grant date, an exercise price of zero (as shares are issued to the
employees at nil consideration on vesting), volatility of 38.1%, expected option life of between 1 and 3 years and an annual risk free
interest rate of 0.29%. Volatility has been calculated based on the annualised volatility for the three years prior to the rights issue.
KEY POLICY
The Performance Rights Plan 2017 is considered to be an equity settled scheme under NZ IFRS 2 and the vesting conditions
for the scheme include both service and performance conditions.
Performance Rights Plan 2017
The cost associated with this plan is measured at fair value at grant date and is recognised as an expense in profit or loss
over the vesting period, with a corresponding entry to the reserve in equity. The estimate of the number of rights for
which the service conditions are expected to be satisfied is revised at each reporting date, with any cumulative catch-up
adjustment recognised in profit or loss in the period that the change in estimate occurred. Any rights not vested after the
expiry of three years are cancelled.
E6: FINANCIAL INSTRUMENTS
Financial assets at
amortised cost
Derivatives for
hedging at fair
value
Financial
liabilities at
amortised cost
2021$000$000$000
Cash and cash equivalents 25,033 - -
Trade and other receivables excluding prepayments 81,603 - -
Derivative financial instruments
1
- 607 -
Total financial assets 106,636 607 -
Trade and other payables - - 63,892
Derivative financial instruments
1
- 47 -
Lease liabilities - - 103,821
Total financial liabilities - 47 167,713
2020
Cash and cash equivalents 1 7, 4 1 8 - -
Trade and other receivables excluding prepayments 71,318 - -
Derivative financial instruments
1
- 103 -
Total financial assets 88,736 103 -
Borrowings - - 10,000
Trade and other payables - - 3 9,10 5
Derivative financial instruments
1
- 223 -
Lease liabilities - - 107,707
Total financial liabilities - 223 156,812
1
Derivative financial instruments are measured at fair value calculated using forward exchange rates that are quoted in an active market (Level 2 of the fair value hierarchy).
64
STEEL & TUBE ANNUAL REPORT 2021

E7: FINANCIAL ASSETS
The Group classifies its non-derivative financial assets as being measured at amortised cost, including any expected credit loss
allowance provisions. They are included in current assets, except for those with maturities greater than 12 months after the end
of the reporting period, these are classified as non-current assets. The Group’s non-derivative financial assets comprise trade and
other receivables and cash and cash equivalents.
Derivatives are measured at fair value. The portion of any fair value movement that is an effective hedge is measured in other
comprehensive income, but any ineffective portion is included in profit or loss.
Management determines the classification of the assets at the initial recognition and re-evaluates the designation at each
reporting date based on the business model and whether cash flows represent solely payments of principal and interest.
Purchases and sales of financial assets are recognised on the date the Group has committed to the transaction. De-recognition of
financial assets occurs when the rights to receive cash flows have expired or the Group has transferred substantially all the risks
and rewards of ownership.
E8: SUBSEQUENT EVENTS
On 17 August 2021, the New Zealand Government reinstated Covid-19 Alert Level 4 for the whole of New Zealand. The Alert 4
settings are applicable to the Auckland and Coromandel regions for at least seven days and the rest of New Zealand for at least
three days, effective from 11.59pm 17 August 2021. On 20 August 2021, the New Zealand Government announced that the rest of
New Zealand will continue to be in Alert Level 4 for the same period of time as Auckland and Coromandel regions. In response
to the change in Alert levels, the Group’s operations were closed except where needed to supply Alert Level 4 businesses and
will operate in compliance with the New Zealand Government’s requirements. Following the initial Covid-19 outbreak, the Group
restructured its operations and funding arrangements to withstand a long recovery period and the latest closure and operating
restrictions have not required any further restructuring or adjustment to the 30 June 2021 reported balances.
On 23 August 2021, the Board declared a final dividend of 3.29 cents per share (2020: nil) totalling $5.5m (2020: nil). The dividends
will be paid to shareholders on 24 September 2021.
E9: OTHER ACCOUNTING POLICIES
Basis of consolidation
The Group applies the acquisition method to account for business combinations. The Group financial statements comprise the
financial statements of Steel & Tube Holdings Limited and its controlled entities (subsidiaries) (see Note E5).
The Group controls an entity when the Group is exposed to, or has rights to variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are consolidated
from the date on which control is transferred to the Group and deconsolidated from the date control ceases.
Consideration transferred is the fair value of assets transferred, liabilities incurred to the former owners of the acquiree and
equity interests issued by the Group. Consideration transferred also includes the fair value of any asset or liability resulting from
a contingent consideration arrangement. Identifiable assets acquired and liabilities (including contingent liabilities) assumed in a
business combination are measured initially at their fair values at acquisition date.
All inter-company transactions and balances between Group companies are eliminated.
Foreign currency
Transactions in foreign currencies are translated at the foreign exchange rate at the date of the transaction. Gains and losses
resulting from the settlement of such transactions and from translation of monetary assets and liabilities at balance date
are recognised in profit or loss except when deferred in equity as qualifying cash flow hedges. The Group’s hedging largely
comprises cash flow hedges for future purchases of inventory. The Group’s current practice is to recognise the accumulated gains
or losses on the hedging instrument / derivative against the carrying value of the inventory when inventory is recognised.
65STEEL & TUBE ANNUAL REPORT 2021

Derivatives - Cash flow hedge
The Group uses derivative financial instruments to hedge its exposure to foreign exchange risks and interest risk arising from
operational, financing and investing activities. In accordance with its Treasury Policy, the Group does not hold or issue derivative
financial instruments for trading purposes. Derivative financial instruments are recognised initially at fair value on the date a
derivative contract is entered into. Subsequent to initial recognition, derivatives are re-measured at fair value.
The Group designates certain derivatives as hedges of a highly probable forecast transaction (cash flow hedge). The effective
portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in equity. The gain or loss on
the ineffective portion is recognised in profit or loss in other gains/(losses). When the hedged item is a non-financial asset (for
example, inventory or property, plant and equipment) the amount recognised in equity is transferred to the carrying amount of
the asset when it is recognised. In other cases the amount recognised in equity is transferred to profit or loss in the same period
the hedged item is recognised in the Statement of Profit or Loss and Other Comprehensive Income. If the hedging instrument no
longer meets the criteria for hedge accounting, expires, is sold, terminated or is exercised, any cumulative gain or loss previously
recognised in equity remains in equity until the forecast transaction is ultimately recognised in profit or loss. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss reported in equity is immediately transferred to profit or
loss within other gains/(losses).
Derivative financial instruments are classified as current assets if expected to be settled within 12 months; otherwise, they are
classified as non-current.
Impairment of non-financial assets
Assets that have indefinite useful lives that are not subject to amortisation and intangible assets not yet available for use are
tested annually for impairment. Assets (including intangibles and property, plant and equipment) subject to amortisation and
depreciation are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value, less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-
generating units).
Revenue recognition
Revenue comprises the fair value of sales of goods net of Goods and Services Tax, and discounts and after elimination of sales
within the Group. The Group derives its revenue from the distribution and processing of steel and associated products. Revenue
is recognised at a point in time when a Group entity has transferred control, which is when it has delivered the products to the
customer, the customer has accepted the products and collectability of the related receivables is highly probable.
66STEEL & TUBE ANNUAL REPORT 2021

The table below provides further information on the revenue recognition across the Group based on each contract portfolio.
Contract
PortfolioDescriptionKey JudgementsOutcomeTiming of Recognition
Cash or Credit
Supply Sales
Any sales from individual
orders without a formal
written contract.
No major judgement
required.
There is one performance
obligation, being the supply of
the product.
Point in time

Revenue is recognised at point
of sale when the product is
delivered.
Supply and
Installation
Sales
Any contracts that
contain supply and
installation performance
obligations.
Determining whether
or not the supply and
installation components
are “distinct” within the
context of the contract
There are two performance
obligations, being supply of the
product and installation of the
product.
Installation of the product
is considered a distinct
performance obligation as
supply only contracts are also
available on a stand-alone basis.
Point in time
Revenue relating to the supply
performance obligation follows
the same recognition process
as for the ‘Supply Only Sales’
contract portfolio.
Over time
Installation of the product
enhances an asset controlled by
the customer as the installation
is completed. Revenue relating
to the installation performance
obligation is recognised on a
stage of completion basis based
on the input of labour costs, as
this is corresponds directly with
the value to the customer of the
Group’s performance completed
to date.
Supply Only
Sales
Any contracts/sales
agreements that only
have supply of steel
product clauses.
Determining whether
each act of supply should
be treated as a separate
performance obligation
within the contract.
There is one performance
obligation, being the act of
the supply. Irrespective of how
many supply events occur,
the products supplied are all
highly interrelated in that they
all are required for the same
construction project, and
therefore represent a series of
distinct supply events which are
substantially the same and use
the same method to measure
progress towards completion.
They are therefore accounted
for as a single performance
obligation.
Over time
The products supplied are
required to be modified
to a significant extent and
do not create an asset with
an alternative use to the
Group. The Group has a right
to consideration from the
customer in an amount that
corresponds directly with
the value to the customer
of the Group’s performance
completed to date.
Revenue relating to Supply
Only Sales is recognised in the
amount to which the Group
has a right to invoice under the
terms of the contract.

The Group has also utilised the practical expedients specified in NZ IFRS 15 Revenue from Contracts with Customers in respect
of the requirement to disclose the transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations,
where the contract has an original expected duration of one year or less, or where the Group has applied the practical expedient
to recognise revenue at the amount to which it has a right to invoice, which corresponds directly to the value to the customer of
the Group’s performance completed to date. Any volume-based rebates extended to customers by the Group are recognised as
a deduction from revenue, in line with the pattern of transfer of control of the relevant good or service to the customer, where
payment is deemed to be highly probable.
67STEEL & TUBE ANNUAL REPORT 2021

Leases
Under NZ IFRS 16, the Group recognises right-of-use assets and lease liabilities for a number of categories of operating leases,
including:
• Property leases - The Group has a variety of property leases across its national network of branches and processing facilities.
Where the Group has entered into sub-leases in respect of its property leases, each sub-lease will be assessed under the new
standard to determine if it qualifies as a finance lease or an operating lease under NZ IFRS 16
• Motor vehicle leases - The Group leases motor vehicles for staff use in sales and day-to-day operations
• Equipment leases - The Group leases certain equipment for use in its distribution, manufacturing and warehousing activities.
This includes material handling equipment such as forklifts and pallet trucks
• Other leases - other leases includes the lease of assets such as IT equipment, photocopiers and other plant or office equipment
On inception of a new lease, the lease liability is measured at the present value of the remaining lease payments, discounted
using the Group’s incremental borrowing rate at that date. The right-of-use assets are measured at an amount equal to the lease
liability, and are depreciated over the estimated remaining lease term on a straight-line basis. The Group presents the right-of-use
assets and lease liabilities separately on the face of the Balance sheet.
The Group has utilised the recognition practical expedients specified in NZ IFRS 16 in respect of short-term and low value leases
where appropriate, as well as the use of a single discount rate to a portfolio of leases with reasonably similar characteristics.
Adoption status of relevant new financial reporting standards and interpretations
Future Change in Intangible Assets Accounting policy
In March 2021 the IFRS Interpretations Committee (the Committee), which is responsible for interpreting the application of IFRS,
issued a decision that expenditure for configuring and customising software provided under software as a service arrangements
(SaaS). The decision sets out that where a SaaS provider controls the application software, the expenditure is likely expensed
when receiving the configuration and customisation services. However where the expenditure creates an asset controlled by
the customer that is separate from the software, or the services are not separable from the Group’s right to receive access to
the SaaS provider’s application, such costs might be capitalised and amortised over the expected SaaS term. The decision was
subsequently ratified by the International Accounting Standards Board in April 2021.
Compliance with the Committee’s decision necessitates a change to the Group’s Intangible Assets accounting policy, as to
date the Group has capitalised such expenditure. By making this change, a retrospective restatement of prior period financial
statements is required in the year in which the revised accounting policy is adopted. To implement this change, the Group is
currently examining all historically capitalised software configuration and customisation costs relating to SaaS arrangements to
identify the level of restatement required. Given the number and complexity of the Group’s software arrangements, the Group
has decided to implement the revised accounting policy in the 30 June 2022 annual financial statements, with full compliance in
the 31 December 2021 interim financial statements.
While the financial impact of the revised accounting policy is still being quantified, the change will reduce intangible assets and
associated amortisation, increase operating expenses, and reclassify relevant spend from an investing to an operating cashflow.
The change may also result in the recognition of prepayments.
68STEEL & TUBE ANNUAL REPORT 2021

Independent auditor’s report
To the shareholders of Steel & Tube Holdings Limited
Our opinion
In our opinion, the accompanying financial statementsof Steel & Tube Holdings Limited (the
Company), including its subsidiaries (the Group),present fairly, in all material respects, the financial
position of the Group as at 30 June 2021, its financialperformance and its cash flows for the year then
ended in ac
cordance with New Zealand Equivalents toInternational Financial Reporting Standards
(NZ IFRS) and International Financial Reporting Standards(IFRS).
What we have audited
The Group's financial statements comprise:
●the balance sheet as at 30 June 2021;
●the statement of profit or loss and other comprehensiveincome for the year then ended;
●the statement of changes in equity for the year thenended;
●the st
atement of cash flows for the year then ended;and
●the notes to the financial statements, which includesignificant accounting policies and other
explanatory information.

Basis for opinion
We conducted our audit in accordance with InternationalStandards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs).Our responsibilities under those standards are
further described in
theAuditor’s responsibilitiesfor the audit of the financial statementssectionof our
report.
We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance withProfessional and Ethical Standard 1International
Code of Ethics for Assurance Practitioners (includingInternational Independence Stan
dards) (New
Zealand)(PES 1) issued by the New Zealand Auditingand Assurance Standards Board and the
International Code of Ethics for Professional Accountants(including International Independence
Standards)issued by the International Ethics StandardsBoard for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilitiesin accordance with these requirements.
Other than in our capacit
y as auditor we have no relationshipwith, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professionaljudgement, were of most significance in
our audit of the financial statements of the currentyear. These matters were addressed in the context
of our audit of the financial statements as a whole,and in forming our opinion thereon, and we do not
provide a se
parate opinion on these matters.
PricewaterhouseCoopers, PwC Tower, 15 Customs StreetWest, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000,www.pwc.co.nz
69STEEL & TUBE ANNUAL REPORT 2021

Description of the key audit matterHow our audit addressed the key audit matter
Assessment of the net realisable value
(NRV) of inventory
The Group has inventory of
approximately $113.5 million as at 30
June 2021, with a provision for
write-down of $2.2 million.
The Group is required to hold inventory
at the lower of cost and NRV. This is a
Key Audit Matter as significant
judgement is required to determine the
sales price of any inventory at higher
risk of impairment, particularly slow
moving inventory given its limited sales
evidence.
The Group’s estimate of NRV
considered:
● the most recent achieved sales
price for each Stock Keeping Unit
(SKU); and
● management judgement of the
current realisable value for each
SKU.
Disclosure of the Group’s inventory
valuation assessment is included in note
B1.
We obtained an understanding and evaluated the
Group’s processes and controls relating to assessing
the NRV of inventory.
We assessed management’s process for identifying
inventory at higher risk of impairment. This included
undertaking procedures to assess the accuracy of
reports used by management to identify higher risk
inventory as at 30 June 2021.
We assessed the reasonableness of the Group’s
estimate of NRV by performing the following
procedures:
●enquired of supply chain personnel to
understand and corroborate the assumptions
applied in estimating inventory provisions;
●attended stock counts to assess controls to
identify obsolete and damaged stock; and
●assessed the level of sales of slow moving
inventory in the year and considered the
margins achieved on inventory sales in the
year.
Where the Group assessed that a provision was not
required for slow moving inventory, we obtained, on
a sample basis, evidence to support or challenge this
assessment. Evidence obtained included:
●support to validate that slow moving SKUs
could be cut or repackaged to faster selling
dimensions or assortments, and / or
●enquiry of supply chain personnel to understand
the demand for the inventory.
70STEEL & TUBE ANNUAL REPORT 2021

Description of the key audit matterHow our audit addressed the key audit matter
Existence of inventory
The existence of inventory was
considered a Key Audit Matter because
of the Group’s:
●high volume and value of inventory;
●large number of inventory
locations; and
●the significant effort required to
complete procedures to obtain
sufficient audit evidence of the
existence of inventory.
Details of the Group’s stock count
programme are disclosed in note B1.
We obtained an understanding and evaluated the
Group’s processes and controls relating to the
existence of inventory.
We performed a number of procedures to address
the risk that inventory did not exist.
These procedures included inspection of the records
for a sample of inventory counts and attendance at a
sample of inventory counts to assess the
appropriateness of the Group’s count procedures,
the accuracy of counting and the accuracy of
recording adjustments.
We determined which count locations to attend
based on our assessment of risk, including:
● the volume and value of inventory held at
locations;
● the extent of inventory adjustments, including
counting accuracy rates; and
● the extent of past compliance with the Group’s
cycle count programme.
We also tested the reconciliation of the inventory
counted to the quantity recorded in the inventory
sub-ledger.
To further assess whether materially all inventory
had been counted during the year, we compared
reports detailing inventory counted to the inventory
listing by location as at 30 June 2021. We tested on
a sample basis reconciling items, being SKUs that
could not be validated as counted based on their
location at 30 June 2021. These procedures included
counting these SKUs post year end and testing
movements since year end to supporting documents.
71STEEL & TUBE ANNUAL REPORT 2021

Our audit approach
Overview
Overall group materiality: $2,350,000, which represents
approximately 0.5% of revenue.
We chose revenue as the benchmark for our materiality as we
consider this is an appropriate and more stable measure of the
Group’s performance than profit/(loss) before tax.
We performed a full scope audit over the financial information of the
significant components of the Group.
As reported above, we have two key audit matters, being:
● Assessment of the net realisable value (NRV) of inventory
● Existence of inventory
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the financial statements as a whole as set out above. These,
together with qualitative considerations, helped us to determine the scope of our audit, the nature,
timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and in aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the financial statements as a whole, taking into account the structure of the Group, the accounting
processes and controls, and the industry in which the Group operates.
72STEEL & TUBE ANNUAL REPORT 2021

Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report, but does not include the financial statements and our
auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
73STEEL & TUBE ANNUAL REPORT 2021

Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
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 Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in thisindependent auditor’s report is Christopher
Barber.
For and on behalf of:
Chartered Accountants
23 August 2021
Auckland
74STEEL & TUBE ANNUAL REPORT 2021

Corporate governance at Steel & Tube is predicated on high standards of ethics and performance and is achieved through robust
governance policies, practices and processes to ensure a culture that is open, transparent and focused on adding value for our
stakeholders. The Board regularly reviews Steel & Tube‘s governance structures and processes to identify opportunities for
enhancement, ensure they are consistent with best practice and reflect Steel & Tube’s operations.
The Board believes that the company’s corporate governance framework materially complies with the NZX Corporate
Governance Code (the Code). A summary of Steel & Tube’s governance actions and performance against each of the Principles in
the Code is detailed on the following pages.
Easy access to information about the company, including financial and operational information and key corporate governance
policies and charters, is available through the company’s website at https://steelandtube.co.nz.
The information in this report is current as at 23 August 2021 and has been approved by the Board of Steel & Tube.
CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for these
standards being followed throughout the organisation.”
We expect our Directors and staff to act with integrity and professionalism, and undertake their duties in the best interests of the
company, taking into account the interest of shareholders and other stakeholders.
The Board has adopted a Code of Ethics, which is available on the company website and staff intranet. The company Policy
Manual also includes detailed standards of integrity, conduct and behaviour required of all employees. This forms part of the new
employee induction programme.
We encourage employees to speak out if they have concerns. The avenues for doing so are detailed in the company’s
Whistleblower Policy which is on the company website.
Steel & Tube does not donate to political parties.
Insider Trading Policy
Steel & Tube has an Insider Trading Policy which, along with the Financial Markets Conduct Act 2013, imposes limitations and
requirements on Directors and employees in dealing in the company’s shares. These limitations prohibit dealing in shares while in
possession of inside information and impose requirements for seeking consent to trade.
While there is no formal requirement to do so, all Directors hold shares in the company either directly or through affiliates.
Details of Directors’ share dealings are set out on page 88 of this report.
BOARD COMPOSITION AND PERFORMANCE
“To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience and perspectives.”
The Steel & Tube Board comprises five Independent Directors, who have significant relevant industry and market experience,
skills and expertise that are of value to the company. Profiles of Directors are available on the company website and included in
the Annual Report. Directors’ interests are disclosed on page 87 of the Annual Report.
Karen Jordan was appointed as an Independent Director on 10 December 2020 and will stand for election by shareholders at
the 2021 Annual Shareholders’ Meeting. Karen brings valued professional governance expertise in the areas of finance, risk
management, commerce and business transformation.
The roles and responsibilities of the Board are detailed in the Board Charter, which is reviewed at least every two years and is
available on the company website. The Board’s primary objective is to enhance shareholder value and protect the interests of
other stakeholders by improving corporate performance and accountability.
The Board has delegated authority for the day to day management of the business to the CEO and the wider senior management
team with specified financial and non-financial limits. A formal Delegations of Authority Policy documents delegated authorities
and is reviewed annually by the Board.
The company has written agreements with each Director, outlining the terms of their appointment. The Board is satisfied
that each Director has the necessary time available to devote to the position, broadens the Board’s expertise and has the
competencies to ensure the effective functioning of the Board.
The Board supports the separation of the roles of Chair and CEO and Steel & Tube’s Chair is required to be an Independent
Director. Director independence is determined in accordance with NZX Listing Rules and with regard to the factors described in
the NZX Corporate Governance Code.
GOVERNANCE
75STEEL & TUBE ANNUAL REPORT 2021

All Directors have access to executives to discuss issues or obtain information on specific areas in relation to matters to be
discussed at Board meetings, or other areas as they consider appropriate. The Board Committees and Directors, subject to the
approval of the Board Chair, have the right to seek independent professional advice at the company’s expense, to enable them to
carry out their responsibilities.
Professional Development
Directors are encouraged to undertake appropriate training and education to ensure they remain current on how to best
perform their duties. In addition, Management provide regular updates on relevant industry and company issues, including
briefings from senior executives. All Directors are current members of New Zealand Institute of Directors.
Board Performance
The Board monitors its own performance and from time to time commissions external reviews to assess the performance of
individual Directors and the Board’s effectiveness. An external review is being undertaken in calendar year 2021.
Director Appointment
Membership, rotation and retirement of Directors is determined in accordance with the company constitution and NZX Listing
Rules. The Nomination Committee has delegated responsibility from the Board to make recommendations on Board composition
and nominations, subject to the company constitution.
Key information is provided to shareholders when a Director stands for election or re-election.
Directors will retire and may stand for re-election by shareholders at least every three years, in accordance with the NZX
Listing Rules. A Director appointed since the previous Annual Shareholders’ Meeting holds office only until the next Annual
Shareholders’ Meeting but is eligible for election at that meeting.
The Board asks for Director nominations each year prior to the Annual Shareholders’ Meeting, in accordance with the company
constitution and the NZX Listing Rules.
The Board has developed a skills matrix and takes into account a number of factors including qualifications, experience and
skills. Shareholders may also nominate candidates for election to the Board. The Board believes that the current Directors offer
valuable and complementary skill sets. Importantly, every one of Steel & Tube’s Directors has either worked or is involved in
directorships in the sector.
SKILLS MATRIX
KEY STRATEGIC AREASDirector Expertise
Governance

Commercial

Financial Acumen

Mergers & Acquisitions

QHSET and associated systems

Business Turnaround

Steel Industry

Manufacturing

Construction/Infrastructure

Logistics, Supply Chain & Procurement

Sales, Marketing and Brand

Digital Technology and Change

People, Culture and Employee Relations

Strong
Moderate
76STEEL & TUBE ANNUAL REPORT 2021

Diversity
Equality and diversity are cornerstones of our organisational culture. We believe that diversity at Steel & Tube is integral to
creating a collaborative workplace culture, competitive advantage and ultimately, sustainable business success. Diversity provides
us with a broad range of perspectives and experience that enhance the quality and depth of our decision-making, and helps
create a united team approach across all levels of our organisation. Our approach to diversity is outlined in the Diversity Policy,
which is available on the company website.
A number of initiatives are in place to support diversity and the Board believes the
principles in the Policy were adhered to in FY21.
Key areas of focus are:
• Recruitment and retention of a diverse workforce
• Fair and consistent reward and recognition
• Flexible working arrangements
• Employee engagement
• Agreed standards of conduct and behaviour
Steel & Tube has a diverse workforce, representing more than 15 different ethnicities. English is a second language for a number
of these staff, so Steel & Tube has initiatives in place to support them in the workplace, including the opportunity to participate in
Steel & Tube's Numeracy and Literacy Programme.
The Officers of the Company (as defined by the NZX Listing Rules for the purposes of diversity reporting) are the CEO and
specific direct reports of the CEO having key functional responsibility. As at 30 June 2021, females represented 21% of Directors
and Officers of the Company (FY20: 28%).
As at 30 June
FY21

Male
FY21

Female
FY20

Male
FY20

Female
Directors3232
Officers 8172

Gender Diversity at Steel & Tube (% of Females)
40
11
35
25
28
66
8
25
40
22
36
21
22
61
7
22
0
10203040506070
Board of Directors
Lead Team/Snr Execs
Tier 3
Tiers 4, 5 & 6
Sales & Bus Dev roles
Customer Services
Warehousing/Operations
Overall Workforce
20212020
77STEEL & TUBE ANNUAL REPORT 2021

BOARD COMMITTEES
“The Board should use Committees where this will enhance its effectiveness in key areas, while still retaining Board
responsibility.”
The Board has established several standing committees, each of which has a Board approved written charter summarising
the role, responsibilities, delegations and membership requirements. The Board regularly reviews the charters of each Board
committee, the committees’ performance against those charters and membership of each committee. The Board believes that
committee charters, committee membership and roles of committee members comply with recommendations in the Code.
Current membership of each of the Board committees is set out below.
Steel & Tube’s Board Committees as at 30 June 2021
CommitteeRoleMembers
Quality, Health, Safety &
Environment
Assist the Board to meet its
responsibilities in relation to the
company’s Quality, Health and Safety
(H&S) and Environment policies
and procedures, and legislative
compliance
Chris Ellis (Chair)
John Beveridge
Karen Jordan
Audit and RiskAssist the Board in its oversight
of the integrity of financial
reporting, financial management
and controls, external audit quality
and independence, and the risk
management framework
Karen Jordan (Chair)
John Beveridge
Susan Paterson
Steve Reindler
Governance and RemunerationAssist the Board to establish and
maintain a strong governance
framework overseeing the
management of the company’s
people, remuneration and diversity
policies
Steve Reindler (Chair)
Chris Ellis
Susan Paterson
NominationAssist the Board in ensuring
appropriate Board performance
and composition and in appointing
directors
Susan Paterson (Chair)
John Beveridge
Chris Ellis
Karen Jordan
Steve Reindler
Board committees assist the Board by focussing on specific responsibilities in greater detail than is possible in Board meetings.
However, the Board retains ultimate responsibility for the functions of its committees and determines their responsibilities.
The Board appoints the members and chair of each committee, with the committee chair reporting committee
recommendations to the Board. Management attendance at committee meetings is by invite only.
In the case of a takeover offer, Steel & Tube would follow its takeover protocols including forming an Independent Takeover
Committee to oversee disclosure and response and to engage expert legal and financial advisors to provide advice on procedure.
The table below sets out committee membership and Director attendance at Board and committee meetings during FY21. Board
meetings are scheduled throughout the year, with other meetings to deal with certain matters arising from time to time being
held when necessary.
78STEEL & TUBE ANNUAL REPORT 2021

Board
Quality, Health,
Safety &
Environment
Committee
Audit & Risk
Committee
Governance &
Remuneration
Committee
Nomination
Committee
Total number of meetings114434
Susan Paterson
1
11-334
Anne Urlwin
2
411-3
Chris Ellis114-34
Steve Reindler11-434
John Beveridge 1144-4
Karen Jordan
3
422--
1
Susan Paterson was appointed to the Audit and Risk Committee on 4 November 2020
2
Anne Urlwin retired from the Board on 1 October 2020
3
Karen Jordan was appointed to the Board on 10 December 2020
REPORTING AND DISCLOSURE
“The Board should demand integrity in financial and non-financial reporting, and in the timeliness and balance of corporate
disclosures.”
Continuous Disclosure
Steel & Tube’s Directors are committed to keeping investors and the market informed of all material information about the
company and its performance, in a timely manner. In addition to all information required by law, Steel & Tube also seeks to
provide sufficient meaningful information to ensure stakeholders and investors are well informed. Steel & Tube is committed
to providing accurate, timely, consistent and reliable disclosure of information to ensure market participants have fair access
to information that may impact on its share price. The company’s Continuous Disclosure Policy sets out the principles and
requirements of this commitment to timely disclosures.
Financial Reporting
For the financial year ended 30 June 2021, the Directors believe that proper accounting records have been kept which enable,
with reasonable accuracy, the determination of the financial position of the Company and facilitate compliance of the financial
statements with the Financial Markets Conduct Act 2013.
The Audit and Risk Committee oversees the quality and integrity of external financial reporting, including the accuracy,
completeness, balance and timeliness of financial statements. It reviews Steel & Tube’s full and half year financial statements
and makes recommendations to the Board concerning accounting policies, areas of judgement, compliance with accounting
standards, stock exchange and legal requirements, and the results of the external audit. All matters required to be addressed, and
for which the Committee has responsibility, were addressed during the reporting period.
The Chief Executive Officer and Chief Financial Officer have confirmed in writing that Steel & Tube’s external financial reports are
presented fairly in all material aspects.
The Chief Financial Officer holds the role of Company Secretary. In all accounting and secretarial matters, the Board ensures that
the Secretary’s reports are objective and that the Secretary has unfettered access to the Chair and the Audit and Risk Committee,
without reference to the CEO.
79STEEL & TUBE ANNUAL REPORT 2021

Non-financial reporting
Steel & Tube has a commitment to ensuring that the Group adds value for all its stakeholders, from shareholders to staff and the
communities the Group operates in, as well as reducing the environmental impact of the Group’s activities.
Steel & Tube believes it is the Group’s corporate responsibility to ensure the Group plays its part in making the world a better
place. In line with this, over the last year the Group has formalised its approach to ESG – environmental, social and governance
principles – which the Group believes will enhance Steel & Tube and support its growth. During FY21, the Group adopted a
new Sustainability Policy and, in July 2021, the Group filled a new position, Sustainability Manager, to help oversee the Group’s
sustainability practices. Steel & Tube has reported on the Group’s progress in the What Matters section in this report, on pages 16
t o 2 7.
REMUNERATION
“The remuneration of Directors and Executives should be transparent, fair and reasonable.”
Remuneration of Directors and senior executives is the key responsibility of the Governance and Remuneration Committee. The
framework for the determination and payment of Directors’ and senior executives’ remuneration is set out in the Remuneration
Policy. External advice is sought on a regular basis to ensure remuneration is benchmarked to the market for senior management
positions, Directors and Board Committee positions.
The last increase in Director remuneration was approved by shareholders in November 2017. Board policy is that no sum is paid to
a Director upon retirement or cessation of office.
Details of Director and Executive Remuneration in FY21 are provided on pages 83 to 86.
RISK MANAGEMENT
“Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The Board
should regularly verify that the issuer has appropriate processes that identify and manage potential and material risks.”
Steel & Tube’s ability to deliver appropriate returns to its shareholders requires successful execution of business strategy and the
elimination, reduction and mitigation of associated risks. The Board has overall responsibility for the establishment and oversight
of the Group’s risk management framework.
The Board is responsible for overseeing and monitoring significant business risks and overseeing Management’s processes to
mitigate the identified risks. Management regularly report to the Board on significant business risks and treatments for those
risks.
The Group is exposed to risks from a number of sources, including operational, strategic, economic and financial risks. Steel
& Tube’s Corporate Risk Management System Framework incorporates policies, procedures and appropriate internal controls
to identify, assess and manage areas of significant business and financial risks. The Group applies effective risk management
principles across its business units to ensure risk is identified, assessed, categorised and ranked to allow the business to
understand its risks. Steel & Tube maintains insurance policies that it considers adequate and practicable to meet its insurable
risks.
Key Risks
Key risks are assessed on a risk profile identifying the likelihood of occurrence and potential severity of impact. Key risks are
managed with a focus on decreasing the risk likelihood and minimising the risk impact should it occur.
Key risk areas include:
• Operational risk e.g. health & safety, product quality, supply chain, data and systems, business continuity
• Strategic risk e.g. execution of strategic initiatives, competitive environment, technological change
• Economic risk e.g. market risk, sector risk
• Financial risk e.g. business performance, capital management
80STEEL & TUBE ANNUAL REPORT 2021

Risk Management Process
Steel & Tube’s Corporate Risk Management System Framework mandates one framework for risk management to:
• Integrate risk management in line with the Board’s risk appetite into structures, policies, processes and procedures
• Deliver regular key risk reviews, reporting and monitoring
Key risks are owned by members of the executive leadership team. This promotes integration into operations and planning and
a culture of proactive risk management. Key risks are reported to the Board. Legislative compliance is monitored across each
business unit through Quantate compliance management software.
Quality, Health, Safety and Environment
The Board is committed to ensuring a safe and healthy environment for all Steel & Tube people and anyone in the company’s
workplaces. Ensuring Steel & Tube employees and contractors go home safely every day is the company’s number one priority.
Steel & Tube’s aim is to be the preferred New Zealand supplier for steel products and solutions and our expert people play an
important role in that, sharing their knowledge and experience with customers. Ensuring the quality of Steel & Tube’s products
remains a critical focus and an extensive Quality Management Programme is in place and overseen by the General Manager
Quality, Health, Safety and Environment. More information on our approach to Quality and Health & Safety is outlined in the
What Matters section on pages 18 to 21.
AUDITORS
“The Board should ensure the quality and independence of the external audit process.”
External audit
Steel & Tube’s External Auditor Independence Policy outlines our commitment to ensuring audit independence, both in fact and
appearance, so that Steel & Tube’s external financial reporting is viewed as being highly objective and without bias.
For the year ended 30 June 2021, PwC was the external auditor for Steel & Tube. PwC was re-appointed under the Companies
Act 1993 at the 2020 Annual Shareholders’ Meeting. Partner rotation occurred in FY19. The external auditors attend the Annual
Shareholders’ Meeting each year. 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 Audit and Risk Committee monitors the ongoing independence, quality and performance of the external auditors and
monitors audit partner rotation. The Committee pre-approves any non-audit work undertaken by PwC. There were no non-audit
services provided by PwC in the year ended 30 June 2021. The fees paid for audit services in FY21 is identified in Note E4 of the
Annual Report.
Internal Audit
Steel & Tube operates an outsourced internal audit function, which reports to and is monitored by the Audit and Risk Committee.
KPMG were appointed internal auditors during FY17 and continued to provide this service in FY21.
The Committee approves the annual internal audit plan, receives internal audit review reports on the adequacy and effectiveness
of Steel & Tube’s internal controls and monitors the implementation of KPMG’s recommendations arising from its review findings.
Following the appointment of KPMG as external auditors from the end of the September 2021 Annual Shareholders’ Meeting,
KPMG will cease to provide internal audit services. Alternative internal audit arrangements will be made for FY22 and beyond.
81STEEL & TUBE ANNUAL REPORT 2021

SHAREHOLDER RIGHTS AND RELATIONS
“The Board should respect the rights of shareholders and foster constructive relationships with shareholders that encourage
them to engage with the issuer.”
Shareholder Communications
Steel & Tube are committed to open and regular dialogue and engagement with shareholders. Easy access to information about
the performance of Steel & Tube is available through the Investor Centre on the company’s website at https://steelandtube.
co.nz/investor-centre. Steel & Tube releases semi-annual Shareholder Newsletters as part of the company’s initiative to keep
shareholders informed about the business and the contribution the company makes to New Zealand’s economic development
and prosperity.
Steel & Tube’s investor relations programme includes semi-annual post-results briefings with investors, analysts and investor
meetings, and earnings announcements. The programme is designed to provide shareholders and other market participants the
opportunity to obtain information, express views and ask questions.
Shareholders are encouraged to communicate with the company and its share registry electronically.
In addition to shareholders, Steel & Tube has a wide range of stakeholders and maintains open channels of communication for
all audiences, including brokers, the investing community and the New Zealand Shareholders’ Association, as well as its staff,
suppliers and customers.
Shareholder Meetings
Steel & Tube endeavours to make it easy for shareholders to participate in Annual Shareholders' Meetings, which are held in a
main centre and also streamed live online. The notice of the Annual Shareholders’ Meeting is announced on the NZX, sent to
shareholders and posted on to the Company’s website at least 20 working days prior to the meeting each year. Shareholders are
able to ask questions of and express their views to the Board, management and the external auditors at Annual Shareholders’
Meetings.
The Board considers that shareholders should be entitled to vote on decisions that would change the essential nature of Steel
& Tube’s business. The Board adopts the one share, one vote principle, conducting voting at shareholder meetings by poll.
Shareholders are also able to vote by proxy ahead of meetings without having to physically attend those meetings.
82STEEL & TUBE ANNUAL REPORT 2021

DIRECTOR REMUNERATION
Total remuneration available to non-executive Directors in the year ended 30 June 2021 was $470,000 as approved by
shareholders. The Remuneration and Governance Committee reviews the remuneration of Directors annually.
As at 30 June 2021 the standard Directors’ fees per annum were $145,000 for the chair and $75,000 for each non-executive
director. Board committee chairs also receive additional fees of between $5,000-$10,000 for their committee responsibilities.
Directors’ fees exclude GST, where applicable. Directors are entitled to be reimbursed for costs directly associated with carrying
out their duties, including travel costs. Board policy is that no sum is paid to a Director upon retirement or cessation of office.
The total amount of remuneration and other benefits received by the Directors during the year ended 30 June 2021 was $448,983
as shown in the table below:
DirectorDirectors Fees
Committee

Chair FeesFY21 TotalResponsibility
Susan Paterson145,000-145,000Board Chair
Anne Urlwin18 ,95 62,52721,483Retired as at 1 October 2020
Karen Jordan
1
3 7, 5 0 05,00042,500Audit and Risk Committee Chair
Chris Ellis75,00010,00085,000QHSE Committee Chair
Steve Reindler75,0005,00080,000Governance & Remuneration Committee Chair
John Beveridge75,000-75,000
1
Karen Jordan was appointed as a Director on 10th December 2020 following the announcement that Anne Urlwin would retire as a Director at the 2020 Annual Shareholders’
Meeting held on 1 October 2020. Following Anne Urlwin’s retirement from the Board, Karen Jordan was appointed as Audit and Risk Committee Chair.

EXECUTIVE REMUNERATION
Steel & Tube’s Remuneration Policy and practices are designed to attract, retain and motivate high calibre people at all levels
of Steel & Tube.
The CEO and executives have the potential to earn a Short Term Incentive (STI) each year. Steel & Tube’s STI is based on
performance targets and is designed to differentiate performance and reward delivery. STI values for the CEO and executives are
set as a percentage of Fixed Annual Remuneration (FAR) based on the scale, complexity and performance expectations of each
individual STI participant’s role.
The CEO and executives, together with a limited number of non-executive senior managers, also have the potential to earn a Long
Term Incentive (LTI). Steel & Tube’s LTI is designed to incentivise and retain key personnel, align the interests of executives and
shareholders and encourage long-term decision-making. LTI values for the CEO and executives are set as a percentage of FAR.
STI performance targets reflect a mixture of financial, quality & safety, customer services and strategy delivery objectives
appropriate for the position held by the individual STI participant.
The STI plan also includes a company based performance hurdle, where no STI is payable to any participant if the year-end results
are 80% or less of the company’s financial target.
If there is a fatality or serious harm where the Board deems either the Company as a whole or participating individuals culpable,
the Board may decide that no STIP payment (all components) will be paid to one, some or all of the participants.
REMUNERATION
83STEEL & TUBE ANNUAL REPORT 2021

The current LTI (referred to as the Performance Rights Plan (PRP)) was developed and approved by the Board in February 2018.
The PRP performance period runs for three years and comprises of two performance conditions (50% each) as outlined in note E5.
All rights granted under the company’s previous LTI scheme, in place since 2003, have been either vested and exercised or
forfeited, in accordance with that plan’s rules.
The STI and LTI are both variable elements of remuneration, with selected employees invited to participate each year as approved
by the Board. They are only paid if individual, company and shareholder TSR performance conditions and targets are met.
CEO REMUNERATION
The CEO’s overall remuneration as at 30 June 2021 consists of a FAR, an STI at 60% of FAR and an LTI of 40% of FAR. This is
reviewed annually by the Governance and Remuneration Committee and approved by the Board each year.
The STI scheme for FY21 was a transitionary scheme following a review of the current market conditions and is payable up to a
maximum of 50% of usual entitlements. The performance targets for the CEO for the year ending 30 June 2021 were as follows:
Target KPIsWeighting
Financial - Return on Funds Employed (ROFE)70%
Health & Safety – Leading and lagging indicators10%
Personal KPIs based on strategic and business priorities10%
Employee Engagement10%
The Board ensures that the CEO’s remuneration, including base salary, is aligned with appropriate market rates and reflects
performance and delivery of sustainable shareholder value.
84STEEL & TUBE ANNUAL REPORT 2021

The table immediately below sets out CEO FAR and the pay for performance components of the CEO’s remuneration package on
an annualised basis. This table sets out the pay for performance outcomes for STI and LTI assuming 100% is paid out.
Fixed RemunerationPay for Performance
MD/CEO FAR¹
Non-
taxable
benefits²Sub total
Ta r g e t
STI³Target LTI⁴Sub total
To t a l

target
Remuneration
2021Mark Malpass$728,280nil$728,280$218,484$291,312$509,796$1,238,076
2020Mark Malpass$714,000nil$714,000$428,400$285,600$714,000$1,428,000
2019Mark Malpass$700,000nil$700,000$420,000$392,000$812,000$1,512,000
2018Mark Malpass$700,000nil$700,000$420,000$210,000$630,000$1,330,000
2017Dave Taylor$855,000$6,214$861,214$106,875$268,316$375,191$1,236,405
The financial performance target for the full year to 30 June 2021 was above the transitionary scheme’s 90% hurdle requirement
and accordingly STI is payable to the CEO in relation to this.
Details of what has been earned and been paid to the CEO/MD in the past five years are outlined below:
MD/CEOFAR¹
Non-taxable
benefits²
STI earned in
FY⁵
STI% against
target
Value of
LTI vested
during FY⁶
To t a l
remuneration
earned during
FY
FY21Mark Malpass$721,140-$273,105125%-$994,245
FY20Mark Malpass$702,880----$702,880
FY19Mark Malpass$700,000----$700,000
FY18⁷Mark Malpass$ 5 8 7, 2 3 9-$128,21431%-$715,453
FY17Dave Taylor$855,000$6,214$106,875100%$268,316$1,236,405
The CEO has personally made an investment in the Company and has acquired 318,284 shares through on-market transactions
and the pro-rata rights offer capital raise.
1
FAR includes any KiwiSaver employer contributions
2
There were no costs associated with any other benefits during the year ended 30 June 2021
3
STI target for the full year which is subject to achievement of performance targets as agreed with the Board in each year. STI payment at target for FY21 is 50% of usual entitlement,
with maximum payment at 125% of target.
4
LTI value of actual Rights granted in each year (which may be exercised after the completion of the three year performance period, providing and only to the extent that the
performance conditions have been satisfied)
5
STI payable for the FY following the achievement of performance targets as agreed with the Board.
6
LTI value of Rights as at the date vested (including the gross value of the associated dividends paid) in the FY related to Rights granted in the three years prior
7
FAR and total remuneration are for the prorated FY from 25 September 2017 to 30 June 2018
85
STEEL & TUBE ANNUAL REPORT 2021

PAY GAP
The Pay Gap represents the number of times greater the Chief Executive Officer’s remuneration is to the remuneration of an
employee paid at the median of all Steel & Tube employees. For the purposes of determining the median paid to all Steel & Tube
employees, all permanent full-time, permanent part- time and fixed-term employees are included, with part-time employee
remuneration adjusted to a full-time equivalent amount.
At 30 June 2021, the Chief Executive Officer’s fixed remuneration of $728,280 was 11.69 times (2020: 12.1 times) that of the median
employee at $62,316 per annum.
Employee Remuneration
The number of employees or former employees who received remuneration and other benefits valued at or exceeding $100,000
during the year to 30 June 2021 are specified in the table below.
The remuneration noted includes all monetary payments actually paid during the course of the year ended 30 June 2021 and
restructuring and redundancy related compensation.
The remuneration paid to, and other benefits received by, Mark Malpass in his capacity as CEO for the year ended 30 June 2021
are detailed on pages 84 to 85, and are excluded from the table.
Remuneration Range $0002021
100 - 11031
110 - 12021
120 - 13011
130 - 1407
140 - 1505
150 - 1605
160 - 17012
170 - 1801
180 - 1902
190 - 2001
200 - 2104
210 - 2201
230 - 2401
270 - 2801
280 - 2901
310 - 3202
370 - 3801
430 - 4401
To t a l 108 (2020: 114)

86STEEL & TUBE ANNUAL REPORT 2021

CHANGES IN DIRECTORS’ INTERESTS
Directors made the following entries in the Directors’ Interests Register pursuant to section 140 of the Companies Act 1993
during the year ended 30 June 2021:
DirectorInterests
Susan PatersonAppointed as a director of Lodestone Energy Limited.

Ceased to be a director of Sky Network Television Limited and Goodman NZ Limited and
associated companies.

Ceased to be a board member of the Electricity Authority.
Karen JordanDirector of the City Rail Link Limited.

Member of the New Zealand Defence Force Risk and Assurance Committee and Inland
Revenue Department Risk and Assurance Committee
Chris EllisAppointed as the Chair of the Disputes Review Board for the Central Interceptor Project.

Appointed as the Independent Chair of Oxcon Limited.
Steve ReindlerAppointed as a director of the Christchurch Multiuse Arena Project.

Ceased to be a director of Yachting New Zealand

INFORMATION USED BY DIRECTORS
There were no notices from Directors requesting to disclose or use company information received in their capacity as Directors
that would not otherwise have been available to them.
DIRECTORS’ SHAREHOLDINGS
Steel & Tube securities in which each Director has a relevant interest as at 30 June 2021 are:
DirectorShares held
Susan Paterson262,425 beneficially owned
Karen Jordan1,069
John Beveridge20,000 beneficially owned
Steve Reindler46,427
Chris Ellis10,000
DISCLOSURES
87STEEL & TUBE ANNUAL REPORT 2021

DIRECTORS’ SECURITY DEALINGS
During the year ended 30 June 2021 Directors’ disclosed the following securities transactions in respect of section 148(2) of the
Companies Act 1993 and sections 297(2) and 298(2) of the Financial Markets Conduct Act 2013.
These transactions took place in accordance with Steel & Tube’s Insider Trading Policy.
DirectorDate of Transaction
Number of shares
acquired / (disposed)Nature of transactionConsideration
Steve Reindler 25 March 202120,000On-market acquisition$20,008
Karen Jordan21 December 20201,069On-market acquisition$1,000
INDEMNITIES AND INSURANCE
In accordance with section 162 of the Companies Act 1993 and Steel & Tube’s Constitution, the company has arranged Directors
and Officers Liability insurance covering Directors and employees of Steel & Tube, including Directors of subsidiary companies,
for liability arising from their acts or omissions in their capacity as Directors or employees. The insurance policy does not cover
dishonest, fraudulent, malicious or wilful acts or omissions.
SUBSIDIARY COMPANIES DIRECTORS
The remuneration of employees appointed as directors of subsidiary companies is disclosed in the relevant banding of
remuneration set out under the heading Employee Remuneration. Employees did not receive additional remuneration or benefits
for being directors during the year.
Directors of the subsidiary companies as at 30 June 2021 were:
CompanyDirectors
Steel & Tube New Zealand LimitedMark Malpass, Richard Smyth
Composite Floor Decks Holdings LimitedMark Malpass, Richard Smyth
Studwelders LimitedMark Malpass, Richard Smyth
S & T Stainless LimitedMark Malpass, Richard Smyth
Manufacturing Suppliers LimitedMark Malpass, Richard Smyth
S & T Plastics LimitedMark Malpass, Richard Smyth
Composite Floor Decks LimitedMark Malpass, Richard Smyth
88STEEL & TUBE ANNUAL REPORT 2021

TOP 20 SHAREHOLDERS
As at 5 July 2021
Twenty largest security holders as at 5 July 2021
Ordinary
SharesPercentage
New Zealand Steel Limited26,274,753 15.83%
HSBC Nominees (New Zealand) Limited *5,687,455 3.43%
JPMorgan Chase Bank NA NZ Branch-Segregated Clients Acct*3,604,547 2.17%
Citibank Nominees (New Zealand) Limited*3,576,396 2.16%
Lennon Holdings Limited3,450,157 2.08%
FNZ Custodians Limited3,428,371 2.07%
Chester Perry Nominees Limited2,230,516 1.34%
HPI Avondale Limited2,103,786 1.27%
Accident Compensation Corporation *2,050,843 1. 24%
New Zealand Depository Nominee Limited1,977,430 1.19%
Neil Douglas Waites1,772,115 1.07%
Maxima Investments Limited1,350,000 0.81%
ASB Nominees Limited1,065,000 0.64%
John Francis Managh & David Robert Percy 999,454 0.60%
Andrew Paul Lissaman Everist 951,135 0.57%
Trevor Jeffrey Corfield & Marilyn Margaret Corfield 864,000 0.52%
Custodial Services Limited 824,773 0.50%
John Francis Managh 7 9 9,95 1 0.48%
Public Trust Class 10 Nominees Limited* 760,634 0.46%
Public Trust Forte Nominees Limited* 742,94 0 0.45%
64,514,256 38.87%
* Shares held in New Zealand Central Securities Depository (NZCSD)
89
STEEL & TUBE ANNUAL REPORT 2021

STEEL & TUBE HOLDINGS LIMITED (STU) SPREAD OF SHAREHOLDERS
As at 5 July 2021
Size of holdingsNumber of holdersNumber of shares% of issue shares
1 – 9991,48361 7, 7 3 10.37
1,000 – 4,9992,6766,478,6633 .91
5,000 – 9,9991,2048,186,5884.93
10,000 – 49,9991,74234,999,70621.09
50,000 +432115 ,6 89, 8 5 269.70
7, 5 3 7165,972,540100.00
SUBSTANTIAL SECURITY HOLDER
The company received no Substantial Security Holders notices during the year.
Issued shares in the company at 30 June 2021 comprise:
Ordinary shares fully paid165,972,540
Ordinary shares partly paid (no voting rights)^25,000
165,997,540
^ Shares issued in the Senior Executives Share Scheme 1993
90
STEEL & TUBE ANNUAL REPORT 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 4 570 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
DIRECTORY

steelandtube.co.nz

---

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 X Quarterly
Half Year Special
DRP applies
Record date 10 September 2021
Ex-Date (one business day before the
Record Date)
9 September 2021
Payment date (and allotment date for
DRP)
24 September 2021
Total monies associated with the
distribution
1

$5,461,319
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.03290000
Gross taxable amount
3
$0.03290000
Total cash distribution
4
$0.03290000
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
$0.01085700
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
Richard Smyth
Contact person for this
announcement
Richard Smyth
Contact phone number 021 646 822
Contact email address Richard.Smyth@steelandtube.co.nz
Date of release through MAP

24 August 2021

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

Steel & Tube FY21 Trading Update Steel & Tube FY21 results Presentation – Slide 22 Updated

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.