Steel & Tube – October 2021 YTD trading performance

4 November 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


STRONG LIFT IN YEAR ON YEAR TRADING PERFORMANCE
Steel & Tube Holdings Limited (NZX: STU) has reported a 14% year on year increase in revenue for the
first four months of the financial year to the end of October 2021.
The company has continued to build on the strong financial and operational performance from the last
financial year. Revenue for the first four months of the financial year to date has gained significant
momentum, more than offsetting the impacts of Covid-19 lockdowns during August and September. All
Steel & Tube’s businesses have been fully operational following the move to Level 3 for Auckland from 22
September 2021, with robust Covid-19 protocols in place.
The chart below provides a graphical representation of sales activity and recovery for the fiscal year to
end-October 2021.

Note weekly sales Monday to Sunday
Demand for steel as a sustainable and preferred product remains strong across all sectors and the
company has invested in inventory, particularly essential, high demand products.
Steel & Tube CEO Mark Malpass will be presenting at the NZX’s Retail Investor Webinar today (4
November 2021) at 11am. Steel & Tube encourages all interested parties to register to attend this
webinar.
Register at https://attendee.gotowebinar.com/register/9039489029045840655.
ENDS
For media or investor enquiries, please contact: Jackie Ellis Tel: +64 27 246 2505 or
email: jackie@ellisandco.co.nz
For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz

Richard Smyth
Steel & Tube CFO
Tel: +64 21 646 822
Email: richard.smyth@steelandtube.co.nz

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WELCOME
NZX Retail Investor Webinar November 2021
Steel & Tube was sub-contracted to Eastbridgeto supply approximately 4,000 tonneof steel plate
and sections used in the construction of the bridges on SH1 between Pūhoiand Warkworth.

Agenda
About Steel & Tube
Our Performance
Growth Strategy
Q&A

Steel & Tube is...
•One of NewZealand’s
leading providers of steel
solutions
•A proud NewZealand
company, with over 68
years of trading history
•We offer NewZealand’s
most comprehensive
range of steelproducts,
services and solutions
•Our stable of best-in-class
businesses are some of
this country’s
leadingsteel suppliers
3

Our vision
To be the first choice for
customers seeking quality steel
solutions in New Zealand
4
We will achieve this by:
•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
Our purpose
To make life easier for
customers needing steel
solutions by providing
unparalleled service, experience
and the highest quality products

Site and Structure

Stainless Steel

Enclosure and Cladding

Outdoors

Interior and Finish

Services

15
Sector Exposure
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%)

Our business divisions
DISTRIBUTION
Products sourced from preferred steel mills and
distributed through our national network
16
INFRASTRUCTURE
Products processed before sale, typically on a contract or
project basis, including onsite installation services

Our Goals
•To be the best in the business
•The preferred choice of for customers
•Arewarding place to work
•Anattractive investment for
shareholders
17

Steel is the ideal circular
economy material
•Infinitely recyclable withoutproduct
degradation
•Easilyreused and repurposed
•Minimum construction waste compared
to other building products
•Significant proportion of steel is madein
New Zealand using renewable energy
sources
•Steel’s durability means less need for
replacement or structural changes

Digital strategy is intrinsic
to our business
Customer satisfaction
score of 34
Employee Safety Measure
TRIFR 1.86
Greenhouse Gas
Emissions Down 9%
Employee Engagement
7.4/10
Range of quality initiatives
and certifications
Building a sustainable business
19

Journey to refreshed
board, strategy &
leadership
Project Strive
Change programme,
operational reset
Strengthened foundation,
continual improvement
Extensive
organisational
review
FY18FY19FY20FY21 to FY23
Moving Forward
Steel & Tube leadership
in the sector and the preferred
choice for steel products and
solutions across the country
Our journey
In late 2017, we embarked on an extensive company-wide
reset to drive long-term sustainable earnings improvement
and rebuild shareholder value -foundation now laid and
moving forward.
2H17
January to June
20

FY21 results
at a glance
Significant and
sustainable
improvement in
results
•Materialimprovement in
earnings
•Increased revenue
•Strong balance sheet with
all debt repaid and $25m
net cash
•Resumed dividends
FY20FY21
Revenue$417.9m$480.0m
EBITDA$(37.2)m$40.7m
EBIT$(57.7)m $21.8m
Normalised EBIT$0.4m
1
$19.0m
1
NPAT$(60.0)m$16.1m
Net cash$7.4m$25.0m
Total dividendsNIL4.5 CPS
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.
21

Benefits of strategic initiatives now becoming
clear
•Volumes and revenues have been rebuilt
•Focus on 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
FY21
performance
overview
Strong result
driven by delivery
on strategic
initiatives
22

23
•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
Continued investment in Quality, Safety and Training
0
4
8
12
16
FY16FY17FY18FY19FY20FY21
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

24
Network Strategy
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.

25
Substantial and significant 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
$mFY21FY20
Sales480.0417.9
Operating Expenses
(Excl D&A)
62.473.6
Operating Expenses/Sales 13.0%17.6%
Depreciation and Amortisation*17.518.8
Operating Expenses (Reported)79.992.4
*Excludes depreciation of $1.5m (2020: $1.7m) relating to equipment used to manufacture products as this is included in cost of sales.

26
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
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

27
Positive gains from focus on sales
disciplines and customer excellence
Net promoter score measures
customer satisfaction and has
improved since 2018
Nov-Dec 18Q2-19/20Q2-20/21
Average NPS of 34 for FY21
•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 driving 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 sales teams

Our digital investment
Webshop, e-commerce, data
analytics, customer management,
online training modules, new digital
tools to make jobs easier
•Intrinsic foundation across all areas of
the business
•Benefits:
•Reduction in cost to serve
•Driving revenue
•Improving margin
•Traceability
•Will continue to be an important
investment area going forward
•Focus on increased functionality,
advanced analytics, automation and
integration with our customers
+628%
Online Revenue
Growth YoY
+5%
Average increase in
customer revenue
as result of online
purchasing
+505%
YoY growth in
online customers
28

29
•Leadership programme rolled out across the
organisation
•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
PuniKokiri
•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
Building a winning team
5
13
15
19
Jul-20Nov-20Mar-21Jul-21
Employee Satisfaction
eNPS

Level
3
Level
2
Level
4
•Distribution business trading limited to essential
businesses only
•Infrastructure / manufacturing businesses not able to
operate; MBIE exemption for Coloursteelin Auckland
from 13 September 2021
•All facilities open under strict COVID
conditions; Work From Home where
possible
•All employees allowed back on site, with COVID
protocols in place
We are capturing
growth post lockdowns
and took a leadership
position on
incentivising
vaccinations
FY22: Trading under Covid environment
Impact of lockdown –substantial drop in revenue while fixed costs remain
at same level
30

Strong lift in year on yeartrading performance
Significant momentum offsetting impact of Covid restrictions
Note weekly sales Monday to Sunday
31

Build on
strong business
foundation
Strategic focus: business growth
Growth opportunities are driving gross margin dollar improvement
New product
development
& innovation
Business
Growth
32

•Continue to build best-in-
class customer experience
and digital platform
•Drive gross margin dollars
•Continued operational
efficiencies
•Investment into IT and
enhanced data analytics
•Leverage opportunities to
cross sell wide range of
products and services
Areas of focus
•Primary focus on
organic growth
•Continue to consider
opportunities in close
adjacent sectors
•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
Build on strong business
foundation
33
Business growth

FY22 market outlook
Positive market backdrop, cycle expected to be stronger for
longer
•Residential expected to flatten due to expected interest rate rises and supply
demand imbalance slowly reducing with borders closed
•Commercial seeing positive uplift in consents and significant increase in tenders
coming to the market
•Infrastructure continuing to build due to significant underinvestment
•Expanding manufacturing sector
34

FY22 business outlook
Positive outlook with number of
identified opportunities
•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
35

•Strong governance and sustainability
focus
•Established leadership positions in many
categories of the steel market
•Strong industry and strategic customer
partnerships
•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,
methodology, technical advisory and
safety & quality
•Investment in product quality systems
including Lloyds Register offshore and
domestic 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
Steel & Tube’s strengths
36