Steel & Tube Shareholder Newsletter December 2021

SHAREHOLDER
NEWSLETTER
December 2021

Tēnā koutou katoa
In what has been a somewhat tumultuous
last six months with the return of Covid-19
to New Zealand, we are pleased to be going
into Christmas with the ability to travel and
see family and friends. The continuing impact
of the pandemic on people and societies
around the world remains front of mind, and
the health and safety of our people and our
customers is paramount.
We took a leadership position with our
vaccination scheme, offering all employees
who were fully vaccinated by mid-November
2021, either $150 in cash, Kiwisaver contribution
or Steel & Tube shares. We were pleased to
welcome 96 new employee shareholders
who opted for shares in our company. The
investment of $170,000 in this scheme provides
great benefit for our people and our company,
keeping our people healthy and safe, our
businesses open and our staff able to visit
other companies’ sites.
At Steel & Tube, we have adapted to new ways
of working at different alert levels, to ensure
we can keep providing our customers with
the essential steel products that are a critical
part of New Zealand’s ‘built’ environment.
We appreciate the efforts of all our people
who have committed to getting the job done,
no matter where or how they are working.
Most importantly, we are proud that we were
able to support and invest in our people
through the pandemic lockdowns, keeping
everyone on full pay to ensure they could
provide for their families. During this time,
our staff remained productive, with more than
1,700 online training modules undertaken
during lockdown.
Positive Momentum
For the last three years, there’s been a lot of
hard work going on to reset our business.
Our strategy is centred around our customers
and our team, with our focus on making it
easier for our customers to do business with
us. We are always looking for ways to work
smarter, using technology and great thinking
to enable a better business. For example,
since the launch of our webshop earlier this
year, we have now had more than 1,000
customers placing online orders.
2021 was the year when the benefits of all our
efforts started to become clear.
Financially, we delivered a significant uplift in
our earnings and profit.
At a performance level, we’ve built an
industry-leading digital platform across our
business, improved our customer service and
delivery, continued to invest in our people,
and have created a lean, strong and successful
business.
Looking forward to 2022
The past year has reinforced the importance
of taking a long term view of our business
and delivering value for all our stakeholders
– from our people to our customers and our
shareholders. We’re now in a great position to
keep improving and adding value.
We are pleased to have provided upgraded
guidance for the half year to 31 December
2021, as strong trading, an efficient operating
platform and a robust economy continue to
drive earnings momentum.
We have a strong business platform, amazing
people and a positive culture. We are excited
about our future and the year ahead for
Steel & Tube. To all our shareholders, we wish
you and your families a festive and memorable
holiday season.
Susan Paterson, Chair
Mark Malpass, Chief Executive Officer
Susan Paterson, Chair
Mark Malpass, Chief Executive Officer
DEAR SHAREHOLDER
COMPANY UPDATE
Steel & Tube’s Annual Shareholders’ Meeting was held on 30
th
September 2021.
If you were unable to attend, you can view the presentations by clicking here.
All resolutions were passed by
shareholders at the Meeting.

WELCOME TO
ANDREW FLAVELL ,
BOARD DIRECTOR
Andrew joined the Steel & Tube Board in
October 2021. He is a very experienced
senior technology executive and
has driven digital transformations at
companies such as Nike and Microsoft.
He was recently Chief Technology
Officer at Plexure, the NZX-listed global
mobile engagement company. Andrew
has a Doctor of Engineering, Systems
Engineering from the University of
Tokushima, Japan, and did his Bachelor of
Engineering at Auckland University.
Steel & Tube’s digital strategy is becoming
an increasingly valuable pathway for
our company and Andrew’s extensive
experience will be of significant value as
we progress our digital strategy.
SIGNIFICANT UPLIFT IN HALF YEAR EARNINGS GUIDANCE,
ON BACK OF POSITIVE TRADING MOMENTUM
The positive momentum seen in the prior financial year has continued,
and we are now seeing the benefits of business improvements,
combined with a backdrop of robust economic activity.
On 15 December 2021, we updated our guidance for the FY22 half
year (six months to 31 December 2021). We now expect Earnings
Before Interest and Tax (EBIT) to be between $20m and $22m
(Normalised 1H21 $7.6m), with Earnings Before Interest, Tax,
Depreciation and Amortisation (EBITDA) of between $30m and
$32m (Normalised 1H21 $16.8m).
The upgrade follows a continuation of strong trading across the Group
driven by volume growth in target segments and positive market
conditions, gross margin disciplines and a continued reduction in
percentage operating costs.
$m1H FY22 Guidance
1
1H FY21 Normalised
2
EBIT$20m-$22m$ 7. 6 m
EBITDA$30m-$32m$16.8m
Products
Sales
5MYTD FY22 vs PCP
Volume
5MYTD FY22 vs PCP
DistributionProducts sourced from preferred steel mills and distributed through
Steel & Tube’s national network
35%16%
Infrastructure Products processed before sale, typically on a contract or project
basis, including onsite installation services
5%4%
STU TotalAll products22%11%
For the first five months of the financial year to the end of November,
Group revenue increased 22% over the prior comparative period (PCP).
Volumes were up 11% on PCP.
Our key focus has been to maintain availability and high levels of
service for our loyal customers while navigating global supply chain
constraints, a higher pricing environment and Covid-19 restrictions.
We have carefully invested in high demand inventory using our strong
30 June 2021 cash position which we expect to rebuild in the second
half of the financial year as deferred income during the lockdowns is
fully recovered. We have a strong pipeline of secured work in place
across the country and market conditions are expected to remain
positive for at least the medium term.
1 Guidance is subject to any impact of the recent IFRS Interpretations Committee agenda decision on Software as a Service (SaaS); and excludes the release of a $0.85m provision following the decision
on the Metro Performance Glass Limited Holidays Act Court of Appeal case.
2 1H21 normalised EBIT and EBITDA excludes non-trading adjustments and unusual transactions. 1H21 non-trading adjustments were $(1.3)m being $0.8m from reversal of lease impairment and $0.5m
gain on sale of property.

OUR STRATEGIC
ROADMAP & FOCUS FOR FY22
NZX Retail Investor
Webinar Series
You can listen to CEO Mark Malpass
talking about Steel & Tube’s
strategic roadmap and focus in
FY22, as part of the NZX Retail
Investor Webinar Series.
Our purpose
To make life easier for our customers needing steel solutions
We do 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
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
• Drive gross margin
dollars
• Continued operational
efficiencies
• Investment into IT and
enhanced data analytics
• Leverage opportunities
to cross sell a wide range
of products and services
• Continue to develop
differentiated expertise
• Expand targeted high
value product ranges
• Work in partnerships
with third parties
• Continue investment
in marketing and
promotion
• Primary focus on organic
growth
• Continue to consider
opportunities in close
adjacent sectors
Build on strong
business foundation
New product
development and
innovation
Business growth
To view click here

LEVERAGING OUR BREADTH OF EXPERTISE,
QUALITY PRODUCTS AND STRONG BRANDS
TO DELIVER A ‘GROUND UP’ SOLUTION FOR
OUR CUSTOMERS.
FULL SERVICE
PROVIDER
BRINGING KINGSLAND FIRE STATION
BACK TO LIFE
The Kingsland Fire Station occupies a prime location on the ridge
overlooking Eden Park on the Auckland city fringe and has a varied past.
According to Kingsland Heritage, the brick fire station was built in a
Georgian Revival style in 1933 to replace an original timber station with a
watch tower that was erected in 1906.
The latest renovation of the Fire Station has seen the space converted
into five contemporary and workable apartments. A major part of the
renovation by Context Architects was the replacement of the terracotta
roof with a Steel & Tube Legacy® clad penthouse level apartment.
“The project on New North Road is not your typical alteration and
addition, but rather a revival of the old and integration of the best of
now. The use of a modern, matte steel cladding played an integral role
in respectfully treating and maintaining the old fire station’s heritage
charm,” said Context Architects’ project lead, Hew Kenn Chew.
HELPING SUPERSIZE
AUCKLAND’S
WATERWAYS
Over a six year period, Watercare is building
the Central Interceptor – a supersized
wastewater tunnel to help make Auckland’s
waterways cleaner. The Central Interceptor
will run underground from Grey Lynn to
Watercare’s Māngere Wastewater Treatment
Plant. Once completed, the tunnel will
be 14.7kms in length, the longest bored
wastewater tunnel in New Zealand.
The Central interceptor Project is a
keystone project for Steel & Tube, and the
Reinforcing Team has formed a strong
working relationship with contractor, Ghella
Abergeldie Joint Venture, and Watercare.
The entire Central Interceptor project involves
approximately 2,700tns of reinforcing of which
50% has already been delivered by Steel & Tube,
with the remainder to be delivered over 2022.
The team has assisted this client with not only
supply, but also installation and 3D modelling,
which has provided significant benefits in the
interpretation and simplification of complex
structural designs. This work has prevented
onsite installation delays and complications.
To read more about the Central Interceptor
Project here, click here.

MAKING IT EASY
PROCUREMENT UPDATE
The dynamic nature of international steel prices
continues, coupled with increased shipping
costs and supply chain delays. To assist our
customers, our team share insights into the
changes that are driving price increases, in our
regular Steel & Tube Procurement Update.
This can be found on our website.
A summary of the November update shows a
number of factors driving steel pricing:
• China, which accounts for half of the world’s
steel output, has cut production to meet
planned CO2 emission targets, and in
response to rationed electricity use
• Easing of volatility in carbon steel mill
pricing, however energy and shipping costs,
as well as delays and long lead times, means
that domestic market prices are still playing
catchup
• Increase in consumer demand for
manufactured items, many containing steel
and/or stainless finished product, across all
regions globally, as well as major stimulus
programmes by governments. The long term
demand trend is expected to continue
What does this mean for Steel & Tube and our
customers?
Capacity is expected to remain constrained and
supply chain issues to continue for at least 12
months. Price increases are still being passed
from supply partners which will inevitably need
to be priced to market.
One of Steel & Tube’s biggest strengths is the
breadth, depth and range of products we
supply. We continually refresh our inventory,
bringing in new items and ensuring we have
critical, high demand products available in
stock for our customers. We have strong and
long term relationships with steel mills and
suppliers, including shipping companies.
This is proving of value
in these current times
with the ongoing
constraints across
global supply chains.
DELIVERING THE INFORMATION, EXPERTISE, PURCHASING
OPTIONS AND COMMUNICATION CHANNELS THAT MAKE
IT EASY FOR OUR CUSTOMERS.
CUSTOMER SATISFACTION SCORES HIT A HIGH
Steel & Tube’s customer satisfaction score
(Net Promoter Score) is running at 44 for
the 6 months YTD, with a huge lift in loyalty
reflecting the ongoing support we provided
to our customers during the Alert Level 4
lockdown and restrictions.
We are well on track to achieve and exceed
our NPS targets for FY22 as we deliver on
our strategy of “making life easier for our
customers”.
JOIN SYLVAN ON WECHAT
MEETING THE NEEDS OF OUR CUSTOMERS
Meet Sylvan Cheng, a Specification Manager
for Roofing and one of the newer members
of our team. Fluent in Mandarin, Sylvan has
experience in the NZ Asian construction trade
and works with our Asian customers to deliver
a service that meets their needs.
The architectural and construction community
is made up of a range of different cultures and
ethnicities. For Steel & Tube, it’s important to
meet the needs of all our customers. Chinese
owned developers are projected to plan almost
$11 billion of New Zealand’s construction
projects in the next eight years, and $2.1 billion
of projects are already underway. This is an
important customer group for us, and we have
been focusing on engagement and connection
through a range of different channels.
We attended the Asian Construction Expo
this year, have Mandarin speakers in our
team, translate key marketing and product
material into Mandarin and are looking at
other language-specific communication
opportunities.
YTD NPS Score
(Rolling 6 months to 30 Nov 2021)

LEADING THE WAY IN DIGITAL
Technology is a big focus for Steel & Tube and
provides a significant competitive advantage.
Our technology platform is now an integral part
of our sales, service and people strategies.
2021 was a big year for investment in technology,
particularly around our customer offer. Our
goal is to create an omni-channel platform,
that allows our customers to engage with us
through a range of different channels, and at a
time and place that suits them. So that might
be on our website, or through our webshops,
or by talking to our chatbot Stanley, by ringing
our customer service people or by coming into
one of our stores.
To find out more about
Steel & Tube’s digital
investment, click here.
INNOVATION &
TECHNOLOGY
WE EMBRACE NEW TECHNOLOGY AND
CONTINUALLY INNOVATE TO DELIVER ON
OUR CUSTOMER AND PARTNER STRATEGIES;
AND DRIVE GREATER EFFICIENCY IN OUR
BUSINESS.
ONLINE TRAINING LIBRARY
We’re using technology and digital tools to
streamline processes and systems within our
business, support our traceability programme
and provide online training for our people.
We’ve now got more than 50 different modules
in our online training library. More than 2,000
modules were completed by team members
in the FY21 financial year... a great effort that
benefits our people and our business.
CYBER
SECURITY
ALERTS
Te Haumaru na roto i te Maatauranga.
Cybersecurity remains front of mind. 85% of Steel &Tube’s office workforce
have now completed the latest online training module in cybersecurity.

GROWING POPULARITY
OF STEEL & TUBE’S
WEBSHOP
Customer numbers, revenue and user
sessions are escalating as Steel & Tube’s
webshop has expanded to include more
products and solutions.
Our ecommerce site is continually being
updated to improve ease of access and user
friendliness. The latest new feature to be
added is Favourites, allowing customers
to easily place repeat orders and manage
their steel requirements. New customers
are continually being welcomed, including
a recent partnership with Capricorn
Society, Australasia’s largest automotive
cooperative.
332%
INCREASE
in ecommerce
customers YOY
*5 months to 31 Nov 21
AUCKLAND
CUSTOMERS

account for
28% of online
sales
Most popular
online product
ROOFING

ONLINE
ORDERS

are placed every
hour of every
day & night
eCOMMERCE
CUSTOMERS
ARE MORE
SATISFIED
*Rolling YTD NPS
scores

LEADING EDGE SOFTWARE
CREATING A SAFER WORKPLACE
Safety remains our number one priority and
we were pleased to see even stronger safety
metrics in FY21, well below industry average.
We have a dedicated team supporting health
and safety and encourage our people to ‘speak
up’ to help us identify further ways we can
improve.
The new Intelex software has been rolled out
across the Group and makes it even easier for
our people to complete safety checks on the go.
We’ve also invested hundreds and thousands
of dollars into truck and machine guarding to
provide additional safety for our people when
working in our businesses.
BETTER WAYS
OF WORKING
WE CONTINUALLY IMPROVE TO ENSURE
AN EFFICIENT AND EFFECTIVE OPERATIONAL
PLATFORM, WITH STRONG OPERATIONAL
DISCIPLINE AND EXCELLENT CUSTOMER SERVICE.
INTRODUCING PETER
ENSOR, GENERAL
MANAGER REINFORCING
Peter has been involved in the construction
sector for the past 20 years, working in a
variety of role for companies including Fletcher
Construction and McConnell Dowell. He had
become familiar with Steel & Tube as a preferred
supplier to several of the businesses he worked
for, and joined the company in November 2021,
during Alert Level 3. While he is looking forward
to getting into the office and meeting people
face to face, he expects more flexible working
arrangements to become the norm as businesses
seek to recruit and retain good people.
Manufacturing closer to market has become
more important as Covid-19 complicates
supply chains, and Peter says it is critical that
STEEL & TUBE
REINFORCING
Steel & Tube operates through two
divisions – Distribution and Infrastructure.
The Reinforcing business is one of the two
businesses within our Infrastructure division,
with the other one being Rollforming.
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 industry.
New Zealand remains in control of its own
supply chain. In this regard, Steel & Tube
is fortunate to have a robust logistics and
material processing network in place.
His measurements of success are based around
safety and wellbeing of Steel & Tube’s people,
a positive and collaborative workplace culture
and exceeding customer expectations...all
while ensuring profitable, efficient business
performance.
Outside of the office, Peter enjoys spending
time with his family, traveling in their caravan
around New Zealand and tramping.

At the heart of our business, are our people. Our aim is to provide an
environment where people feel welcome, engaged and rewarded, and
where there is the opportunity to learn and develop.
• Our employee Net Promoter Score lifted significantly from 19 to 29,
and pleasingly it was driven by improvement in all our key target areas
– support for our strategy, recognition, wellbeing, diversity and clarity
on our goals
• We launched a new Māori cadetship and have four great cadets
currently enrolled
• We’ve established an employee Diversity team to help strengthen our
approach to Diversity and Inclusion
• We’ve delivered wellbeing education across the organisation to help
our team with the various challenges that we know present themselves
in the current Covid-19 environment – and launched a wellbeing
coaching programme, MyCoach, to enable all our employees to obtain
tailored wellbeing support for themselves and their whānau
• Early in the year, we also introduced a Back to School fund to provide
support for Steel & Tube families at a time of the year when added
expenses can be challenging. We will continue with this in 2022.
POSITIVE UPTAKE OF VACCINATION INCENTIVE
Steel & Tube believes a fully vaccinated
workforce creates a safer workplace for our
team and customers.
There are compelling reasons for all
employees to get on board with vaccination.
Aside from the obvious and proven reduction
in death rates, vaccination reduces the risk
for our most vulnerable, the pressure on our
health system and the risk of future lockdowns
such as that which recently affected our
business in Auckland.
To encourage uptake we took a leadership
position by offering all employees (who were
fully vaccinated by mid-November 2021)
either $150 in cash, Kiwisaver contribution,
or Steel & Tube shares.
The response was very positive, with more
than 90% of Steel & Tube’s workforce now
fully vaccinated.
You can view the TVNZ Te Karere
news story on Steel & Tube’s
initiative, to view click here.
ONE TEAM
OUR STAFF AND BUSINESSES ARE ENGAGED
WITH A COMMON PURPOSE. WE INVEST IN
STAFF DEVELOPMENT, RECOGNISING AND
GROWING THEIR TALENTS AND EMPOWERING
THEM TO ADD MORE CUSTOMER VALUE.

STEEL: A SUSTAINABLE
PRODUCT CHOICE
Steel is one of the world’s largest materials
industries - if not the largest. It generates a
turnover of US$1 trillion dollars annually. It also
plays a prominent role in our daily lives and is
critical to national infrastructure. Global demand
is expected to increase by more than a third
through to 2050.
The steel sector is committed to reducing
carbon emissions and has identified a number
of opportunities including breakthrough
technologies, operational efficiencies, low
carbon energy sources, offsetting and circular
economy benefits.
Watch Troy Coyle, CEO of industry
body, HERA, talking about why steel is
an important part of our zero carbon
future and the global initiatives
underway to minimise carbon
emissions from the steel sector.
To view click here.
• 72% of steel in NZ is recycled
• The collection of 545 kilotonnes of steel
scrap every year provides a net benefit of
793 kilotonnes of carbon equivalent
• Steel as a building material is incredibly
durable, infinitely recyclable, resistant
to water damage and produces minimal
construction waste. With a fit-for-purpose
approach, there are no limits to what steel
can deliver
Embodied carbon emissions make up a large
portion of the emissions from the construction
sector (often between 20-50%). This is why a
holistic cradle-to-cradle, or circular economy
approach, is important when measuring carbon
emissions. In fact, research suggests that
45% of emissions can only be addressed by
employing a circular economy model
2
.
Steel & Tube advocates a Whole of Life
Approach when comparing the emissions
from different building materials, taking into
consideration the emissions not just from
the Product and Construction stages (which
represent only 3 – 5% of a Light Steel Frame
building’s total operational energy over a 50
year lifespan), but also the reuse, recovery
and recycling of materials which leads to the
creation of a circular economy.
We have to stop talking
about embodied carbon
and start talking about
lifetime carbon emissions.
This is what has an impact.
1 IEA (2020) Iron and Steel technology roadmap: Towards More Sustainable Steelmaking 2 Ellen MacArthur Foundation, Completing the picture: How the circular economy tackles climate change (2021)
Steel & Tube is pleased to be a Chartered Member of the
Sustainable Steel Council (SSC). This recognises the work
being done by companies to advance the sustainability of their
operations in line with the SSC charter. As a business, we take
pride in this accomplishment. It’s a mark of recognition that we
are doing our part to protect our environment and communities.
The module framework set out in international standards for LCA, outlining how embodied carbon and operational carbon
relate over the building lifecycle
WHOLE-OF-LIFE EMBODIED CARBON
Product
stage
Construction
stage
Use

stage
End of life

stage
Benefits and

loads stage
A1A2A3A4A5B1B2B3B4B5C1C2C3C4
D
Raw material
Transport
Manufacturing
Transport
Construction and
installation process
Use
Maintenance
Repair
Refurbishment
Replacement
Deconstruction and
demolition
Transport
Waste processing
Disposal
Reuse
Recovery
Recycling
Operational carbon
B6Operational Energy
B7Operational Water
Cradle to gate
Cradle to practical completion
Cradle to grave
Cradle to cradle

STRONGER
TOGETHER
THANK YOU
STAY UP TO DATE WITH ENEWS:
You can also register to receive news and updates from Steel
& Tube as we release them to the market. Please note, this is a
separate service to receiving shareholder communications by
email. To sign up, scan the QR code here or go to:
www.steelandtube.co.nz/enews
CONTACT US:
Steel & Tube Holdings Ltd
7 Bruce Roderick Drive, East Tamaki, Auckland 2013, New Zealand
PO Box 58880, Botany, Auckland 2163, New Zealand
Tel: +64 4 570 5000 Email: investor.relations@steelandtube.co.nz
www.steelandtube.co.nz