Steel & Tube Shareholder Newsletter June 2022

SHAREHOLDER
NEWSLETTER
June 2022

We were pleased to host a number of
investors and analysts in May and share
further information on Steel & Tube, our
strategy and our performance. In this
newsletter, we have focused on some of
the key outtakes from the Management
presentations. You can view these
presentations in full, along with a video
of the day, on our website here https://
steelandtube.co.nz/investor/presentations.
We were also pleased to provide earnings
guidance for the financial year ending 30 June
2022 with FY22 normalised EBIT expected to
be not less than $45m and normalised EBITDA
not less than $64m.
1
The strong performance seen in the first
half of the year has continued, with revenue,
earnings and profit for the 10 months to the
end of April 2022, up significantly on the prior
comparative period (see table overleaf ).
Revenues have been robust across the
business, and we have also benefited from
diligent price and margin management and
supply chain capability. Sales to customers
have been strong, with activity continuing to
build in the infrastructure, manufacturing and
commercial sectors in particular.
Steel & Tube is a trusted supplier with a focus
on maintaining availability of critical products
and high levels of service while navigating
tight supply dynamics ‒ steel mill customers,
including Steel & Tube, continue to be on
allocations, lead times have increased both
locally and offshore and there have been
significant cost price escalations.
We have invested significant cash to increase
stock levels of high demand items and
ensure availability of critical products for
our customers. Using data analytics, our
experienced team has been able to hold
inventory unit and tonnes turns in line with
previous periods (excluding goods in transit).
Our strong supplier partnerships have put
us in good stead during this time and our
customer satisfaction rating (Net Promoter
Score) continues to rise.
With structural changes to the business
now well embedded and delivering value,
we are focused on growth and building a
more diversified, resilient business.
We remain disciplined in our focus on
customers and product mix, targeting
products and segments that have allowed
us to improve our overall margins. Our tight
oversight of debtors and robust systems play
an important role in our risk management
process.
Throughout the COVID-19 period, Steel & Tube’s
dedicated front-line team has gone above
and beyond to deliver for our customers. We
are very proud of Steel & Tube’s increasing
employee engagement and customer
satisfaction scores during this period.
We expect Steel & Tube’s strong business
performance to be sustained as we continue
to strengthen the core business and build on
higher value segments.
Thank you for your continued support and
interest in Steel & Tube.
Ngā mihi
Susan Paterson Chair
Mark Malpass Chief Executive Officer
DEAR SHAREHOLDER
COMPANY UPDATE
KIA ORA, TĒNĀ KOUTOU
1
Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments. A reconciliation of GAAP to non-GAAP
measures is included in the appendix to the Investor Day management slides released to the NZX 16 May 2022.

TEN MONTH FINANCIAL UPDATE
FY21 10 months
384.6
2 9. 5
28.6
14.8
13.8
7.4
$ 1 9.0 m
$37.9m
FY22 10 months
479.3
53.6
54.0
3 7.9
38.3
24.1
Not less than $45m
Not less than $64m
%
change
24.6%
81.6%
89. 2%
156.7%
177.9%
226.7%
33.3%
> 137%
> 69%
$millions
Revenue
EBITDA
Normalised EBITDA
EBIT
Normalised EBIT
N PAT
FY22 Guidance
Normalised EBIT
Normalised EBITDA
For the 10 months to end-April 2022, Steel & Tube’s revenue was
up 25% on the prior comparative period (pcp) to $479.3m and
volumes increased by 8%.
Gross margin continues to improve, driving a significant increase
in earnings. EBITDA was up 82% on pcp to $53.6m, and EBIT
increased to $37.9m, up 157% on pcp.
Normalised EBITDA was up 89% on pcp to $54.0m, while
normalised EBIT was up 178% on pcp to $38.3m.
FURTHER FINANCIAL COMMENTARY IS AVAILABLE IN THE CFO UPDATE SECTION OF THE INVESTOR DAY PRESENTATIONS. CLICK HERE

OUR STRATEGIC FOCUS
With a strong business platform now in place, we are focused on growth. In particular, our efforts are being concentrated
into two key areas – continuing to strengthen our core foundation and growing higher value products and services.
Building on our core involves building on the strong business
foundation now in place. That means continuing to build best in
class customer experience to ensure we achieve our goal of being
New Zealand’s preferred supplier of steel products and solutions.
It means leveraging our breadth and scale to cross sell a wider
range of products and services, continually driving improvement
in gross margin dollar per tonne and delivering operational
efficiencies.
• Continue to build best-in-class customer experience
• Leverage opportunities to cross sell wide range of products
and services
• Drive gross margin $/tonne through dynamic pricing and
product procurement
• Ongoing focus on operating model – warehouse operations,
digitizing supply chains and customer facing channels
Strengthen the Core
Our focus is on investing in new products and services that will extend
what we can offer to our customers. This includes adjacent materials
and value added services.
We will continue to invest in our digital and IT offering, and accelerate
our shift to digital sales, making it easier for our customers and
delivering efficiencies for our business.
Diversifying customer segments and building scale and footprint in high
value areas is important. While our primary focus is on organic growth,
we also continue to consider opportunities in adjacent sectors.
• Improving resilience of earnings through economic cycles
• Growth is targeted towards high value products, diversified
materials and value-added services
• Continue to diversify customer segments and build scale and
footprint in these areas
• Accelerate shift to digital sales
• Primary focus is organic investment, continue to review direct
adjacent sectors
High Value Product and Service Growth

WITH OVER 10,000 ACTIVE CUSTOMERS, STEEL & TUBE’S
DISTRIBUTION BUSINESS HAS DELIVERED AN EXCEPTIONAL
PERFORMANCE IN THE YEAR TO DATE, WITH REVENUES UP
37% ON THE PRIOR COMPARATIVE PERIOD.
DISTRIBUTION
Together with strong margin growth and the benefits of prior year
cost initiatives, earnings have almost quadrupled. Gross margin dollar
improvement has been a priority focus and, pleasingly, has increased
65% year to date driven by investment in high demand products, focus
on improved margin mix and use of data analytics.
We are well positioned to respond to supply and logistics headwinds.
Our strong, long term relationships with mills, and our No 1 or 2 market
position in most segments has helped us ensure supply continuity for
our customers. In addition, as one of New Zealand’s largest importers
on a tonnage basis, we are fortunate to have secured full container
allocations across our import laneways, as well cost security, providing
additional stability for our customers. We have a highly experienced
procurement team with a number having over 20 years’ steel
procurement experience throughout cycles.
GROWTH TRAJECTORY
• We have a clear focus of
investment in high margin
products and customer segments
• We are currently commissioning
new plate processing equipment
in Auckland which will allow us to
grow in this higher margin market
• We have also introduced a
number of new high value
products and have a pipeline of
further opportunities to support
our continued revenue growth
• Looking forward, our larger
customers are generally reporting
solid forward workloads with
strong infrastructure markets and
a steady manufacturing sector,
partially offset by the expectation
of a softening residential market
in the second half of FY23

ROLLFORMING
ROLLFORMING COMPRISES FOUR KEY PRODUCT
CATEGORIES – ROOFING, SHEETING AND COIL
PROCESSING WHICH SERVICES MANUFACTURERS
AND SHEET METAL FABRICATORS, PURLINS
(SUPPORTING BEAMS FOR ROOFING) & COMFLOR
METAL DECKING SYSTEM.
Roofing is the biggest contributor to Steel
& Tube’s Rollforming business, providing
60% of revenue and delivered to customers
from six branches around New Zealand.
Steel & Tube is now in its second year of
a four year supply agreement with Kainga
Ora, supplying 1,600 roofs annually, with
these volumes expected to double in FY23.
The Purlins business has experienced
strong growth over the past ten months,
with early identification of supply chain
constraints and smart procurement
planning ensuring stock availability for
our customers. Onboarding new, large
customers has meant our secured works
pipeline is very healthy for FY23. With
increased demand, we are investing into
new machinery which is expected to
increase our share of the market.
“
I would describe the process
of working with Steel & Tube’s
ComFlor technical team as
simple and collaborative. Steel &
Tube was able to provide a BIM
layout making clash detection
and coordination with other
services efficient. As a result, the
installation of ComFlor was simple
as we engaged the Steel & Tube
team early in the design process
”
says Siobhain Hoskins, Architectural Lead
at Summerset Design.
COMFLOR: SIMPLE
AND COLLABORATIVE
DESIGN FOR SUMMERSET
RETIREMENT VILLAGE
ComFlor was recently chosen by Summerset
Retirement Villages’ design and construction
team for the main building in its new
Summerset Palms village in Napier. Steel &
Tube’s team collaborated early with Summerset
and utilised BIM modelling to optimise the
design and deliver a seamless construction
process. ComFlor 210 was selected for its long
spanning capability of 6m- 8.5m, ideal for larger
communal spaces, and ComFlor 80 was well
suited for the shorter spans in hallway areas.
Coil processing has seen significant growth
due to increased demand for steel framing
in both residential and commercial sectors.
Steel & Tube currently supplies significant
volumes of sheeting and coil for light steel
framing and has identified an opportunity
to move further into this sector and
leverage our relationships with large roofing
customers as well as working directly with
designers and architects. Two machines will
be up and running this quarter and increased
volumes may warrant investment into further
units over the coming years.
ComFlor is the most specified metal decking
systems by structural engineers and has the
largest market share in the sector. It uses up
to 25% less concrete, can achieve up to four
hours of fire rating with excellent acoustic
properties and has specification range from
hotels, commercial office building, high rise
apartments, hospitals, carparks, pedestrian
bridges to high end residential projects.

In the current market of constrained labour
resources, materials shortages and price
escalations, we are engaging with clients
early and providing innovative solutions that
overcome these challenges. By delivering smart
fabrication solutions and efficient installation
methods, the Steel & Tube Reinforcing Team is
growing an enviable reputation.
We have invested heavily in 3D software to enable
modelling of all the reinforcing projects with
far greater sophistication than traditional 2D
paper drawings. This improves the accuracy of
detailing with the ability for the digital model to
be integrated directly into our manufacturing
system. Digital design and workflow software
allows us to share 3D models of reinforcing design
with construction companies and structural
engineers to identify prefabrication opportunities,
avoid clashes with other services and to confirm
the installation meets the design brief.
When it comes to any building or infrastructure
project, our team is working closely with
clients as they move to better managing their
construction labour resource. New solutions and
methodologies are being brought to the table
through collaboration between the installers,
detailers and construction company. In the
partnership model, the three parties coordinate
early to deliver greater value to the project,
client and ultimately the asset owner. This
partnership model has been driven in part by the
changing market, where access to installation
labour has become more challenging and costly.
It gives construction companies the opportunity
to be more selective when choosing their steel
fixers and to manage costs more effectively.
Incorporating 3D design technology and
adapting to a new delivery model allows Steel
& Tube to deliver greatest value to clients
– better products and faster delivery, while
giving steel fixers and head contractors the
opportunity to make installation more efficient,
safer and economic on-site. Gross margins in
the Reinforcing business continue to lift, and
our forward order book is near full. We have
also been able to lift mesh production by 30%,
without capital investment.
REINFORCING
MAINTAINING A FULL ORDER BOOK
OF PREFERRED CUSTOMERS WHILE
ADAPTING TO A CHANGING MARKET.
We have capable, highly experienced, dedicated shift teams that have our machines working
of up to 20 hours per day, 6 days per week.

CUSTOMER VALUE
PROPOSITION
As a manufacturing and distribution
company, our customers are central to
everything we do and we see significant
value in delivering a best in class customer
experience.
For all of our customers, our goals are
simple – to provide the products they
want economically with consistent service
execution. As a part of this, we are using
digital technologies to optimise our
customer experience, reduce our cost
to serve and increase margin potential.
In particular, we are investing in
Analytics, E-Commerce and new Sales
and Service channels.
Analytics allows us to understand and more
accurately offer our customers products
and services at the right price. It allows
us to be purposeful about initiatives we
pursue and what returns we expect. It is
influencing everything from pricing to
inventory policy, sales and service design
through to brand messaging.
Our ecommerce channel is experiencing
significant growth in customer adoption
and usage. On any given day we have
hundreds of registered users searching
for products, looking up pricing and
placing orders. Our EDI (electronic data
interchange) channel has recently been
launched and enables system to system
communication with our largest customers.
Although early days, we are seeing
improved order accuracy, more rapid
processing and more timely information
being feed directly into our customers
systems.
OUR CLIENT BASE IS HIGHLY DIVERSE WITH
CUSTOMERS OF EVERY SIZE, SCALE & METAL
RELATED ACTIVITY
Most
Valuable
Customers in
Their
Segment
CUSTOMER
TYPES
Exclusively
Project
Work
Resellers
&
Merchants
High
Potential &
Growth
Orientated
Small
and Medium
Enterprises
CORE SEGMENTS
Construction
Trades
Engineering
Manufacturing
Rural
Merchants
& Resellers

Steel & Tube operates what is called a
“backbone network” which means we have
major centres / nodes with branches or
smaller operations to provide reach and local
servicing. This allows us to optimise service
performance and inventory investment as
well as being able to implement new channels
or ways of doing business as we expand our
digital offerings.
Our Sales and Operations Planning is focused
on matching supply and demand to safely
achieve our service promise whilst achieving
the most profitable outcome. We see being
leaders in this area as a core competence
that will set us apart irrespective of market
conditions.
There are substantial headwinds in terms of
supply lines – increased uncertainty and ongoing
disruption whether it be due to the Russia/
Ukraine conflict or ongoing pandemic impacts.
This means we must remain vigilant in terms
of our planning processes and be even more
attuned to global and local developments.
We are proud that during some of the most
disruptive times in recent memory, our
processes and teams have maintained our
service levels. DIFOT (delivered in full on time
metric) has not only remained above 98%, but
with a very high level of consistency which is of
critical importance to our customers and their
businesses, particularly during uncertain or
volatile times.
SUPPLY CHAIN
& DISTRIBUTION
CENTRES
Based on our relentless focus on serving our customers and striking the right balance of
inventory holding across the last 12 months, we’re well placed to successfully navigate the next
12 to 24 months and build on the results delivered to date.
PEOPLE & CULTURE
The Steel & Tube team is made up of 840
people (excluding vacancies), 32 ethnicities,
and a great mix of international and local
experience.
Over the past four years we’ve been focussed
on moving to a labour model with a much
smaller core structure that we can flex up and
down with activity. We’re now operating at
significantly higher outputs with less people
but with our same priority focus on safe and
manageable workloads.
We track our employee engagement as the
best indicator of what’s working for our
people and what we need to do differently.
Over the past two years we’ve moved our
ENPS result from 5 up to 35 (the global
top quartile for our industry is 36). It’s our
ambition to create a top tier workplace for
our people and we’re almost there.
64
Jul-21Aug-21Sep-21Oct-21Nov- 21Dec-2 1Jan-22Feb-22Mar-22Apr-22
DIFOT
Availa bility and DI FOT
•Maintaining high availa bilit y on
key / critical lin es to target
segments is core to our
proposition
•Consistency of performance is
critical – some out of stocks
inevitable
•Availa bilit y impact for hollo ws
follo wing NZ Steel exi t
mitigated and stable, but
longer supply lin e
98%+
Jun 21Jul 21Aug 21Sep 21Oct 21Nov 21Dec 21Jan 22Feb 22Mar 22Apr 22
Availabilit y
95%+
70
Employee Engagement
•35 ENPS
•Committed to continuous
improvement
5
13
15
19
29
35
0
5
10
15
20
25
30
35
40
July 20Nov 20Mar 21July 21Dec 21Apr 22
eNPS
SCORE
Employee Engagement
Sat isfac tion Score 7.8/10

After immigrating to New Zealand from South
Africa in 2019, Wayne joined Steel & Tube’s
Roofing division. It was here that Wayne
developed a reputation as someone who
could be trusted to build a branch in which
everyone is committed to delivering for our
customers.
Initially based in Wellington, Wayne then
moved to Tauranga, where he has focused
on building and upskilling the team and
developing the branch into a great asset for
Steel & Tube and the local Bay region. With
over 30 years in the region, many of the
Tauranga Roofing branch’s customers have
long standing relationships with staff and the
business.
OUR PEOPLE
I love working with our team
and helping them expand their
knowledge and grow their
confidence. Ultimately this makes
for a better customer experience
as our customers are dealing with
knowledgeable and enthusiastic
people each time they engage with
Steel & Tube.

Wayne Foulkes, Area Manager -Tauranga
INTRODUCING WAYNE FOULKES,
AREA MANAGER -TAURANGA

SUSTAINABILITY
WHEN WE TALK ABOUT SUSTAINABILITY,
IT’S NOT JUST ABOUT REDUCING OUR CARBON
EMISSIONS, IT’S ALSO ABOUT FOSTERING
BUSINESS PRACTICES THAT POSITIVELY
IMPACT OUR COMMUNITIES AND PEOPLE.
We have numerous programmes that support
and add value for our people and a strong Board
that is committed to best practice governance.
As representatives of the steel industry, Steel
& Tube has been very active during the XRB’s
Climate-related Disclosures consultations,
ensuring that hard-to-abate industries
(such as the steel industry) are being supported
during the transition to net-zero emissions. We
have also provided feedback to MBIE for similar
climate-related consultations.
SUSTAINABLE STEEL
Not only does steel support circular economy design principles, but it is
also integral to the development of our overall climate change response.
• Steel is in fact, the most recycled material in the world. It is infinitely
recyclable, with zero product degradation. The steel in your toaster,
might have previously been in a car, and before that, in a plane
• Steel is designed and manufactured to specification, which in turn
reduces the amount of on-site construction waste
• It is extremely durable and can improve the lifespan of a structure
that it is contained within
• Steel products can help regulate peak temperatures in a building,
meaning lower energy use during the ‘use’ phase of a building’s life
• If some steel happened to make its way into the ground, it will not
react with nor contaminate the soil or groundwater
• Steel is a necessary material to build our renewable energy
infrastructure, supporting the world’s transition to lower-or-zero
emitting energy sources such as wind power, solar or hydrothermal
energy. Quite simply, steel will be part of a low-emission future
• Steel also reinforces and protects against climate changes risks, such
as strengthening sea walls to protect against rising sea levels

STRONGER
TOGETHER
THANK YOU
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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