Steel & Tube – NZX Virtual Investor Event – September 2022

6 September 2022
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


NZX VIRTUAL INVESTOR EVENT
Steel & Tube CEO Mark Malpass and CFO Richard Smyth will be presenting at the NZX’s Virtual Investor
Event today (6 September 2022) at 11.00 am. Steel & Tube encourages all interested parties to register to
attend this webinar.
Register at
https://register.gotowebinar.com/register/6762179455021534477

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

---

NZX Retail Series
6 September 2022

2
Agenda
About Steel & Tube
Mark Malpass
Performance &
Sustainability
Richard Smyth
Growth Strategy
Mark Malpass
Q&A

3
Steel & Tube
•One of NewZealand’s leading
providers of steel solutions
•A proud NewZealand
company, with over 69years
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
27Sites
Nationwide

4
Our business divisions
Products sourced from preferred
steel mills and distributed through
our national network
Products processed before sale, typically
on a contract or project basis, including
onsite installation services
Distribution
Infrastructure
SteelPiping SystemsChain & Rigging
FasteningsRural ProductsStainless Steel
RoofingCoil ProcessingReinforcing
PurlinsComFlor/CFDLMesh

5
Primary product and service offering by participants
Steel distributionPlate processing Coil processingStainless steelEngineering steelReinforcing steelWireRoofingFasteners
Steel & Tube
✓
5
✓
5
✓
5
✓
5
✓
5
✓
5
✓
5
✓
5
✓
5
Fletcher Steel
✓
j
✓
5
✓
5
✓
5
✓
5
✓
5
✓
55
Vulcan
✓
5
✓
5
✓
5
✓
5
✓
5
United Industries
✓
5
✓
5
✓
5
✓
55
Asmuss
✓
55
✓
5
✓
5
Summit Steel & Wire
✓
5
✓
55
✓
5
Wakefield Metals
✓
5
✓
5

6
Journey to refreshed
board, strategy &
leadership
Project Strive
Change programme,
operational reset
Extensive
organisational
review
FY18FY19FY20FY21 to FY23
2H17
January to June
Our journey
Late-2017 embarked on an extensive company-
wide reset to drive sustainable earnings
improvement and rebuild shareholder value.
Foundation now built and moving forward.
Moving Forward
Steel & Tube leadership
in the sector and the preferred
choice for steel products and
solutions across the country
Strengthening the core
and building on higher
value segments

7
FY22 demonstrated Steel & Tube’s value
•Record financial performance
•Robust operating model that will deliver through the economic
cycle
•Clear focus on continuing to strengthen the core and investing in
high value products, services and sectors
•Goal to deliver sustainable double-digit ROFE

8
Performance &
Sustainability

9
ROFE
14.6%
FY21: 6.6%
Record results with improvement in all key metrics
Results driven by strong sector demand, trading disciplines, customer service,
operational performance and supply chain management
Revenue
$599.1m
+24.6%
EBITDA
$66.6m
+72.5%
EBIT
$47.6m
+130.0%
NPAT
$30.2m
+96.4%
Volume
167,209t
+5.7%
Dividend
FY22: 13.0 cps
FY21: 4.5 cps
Customer NPS
40
FY21: 34
eTRIFR
1.13
FY21: 1.86
Employee NPS
35
FY21: 19
Net Promoter Score (NPS): Measure of customer/employee satisfaction. Customer NPS industry average is 32 and Employee NPS industry average is 18
Employee Total Recordable Injury Frequency Rate (eTRIFR): Employee safety measure
Earnings Before Interest and Tax (EBIT), Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), Net Profit AfterTax (NPAT)
ROFE: Return on Funds Employed, calculated as Normalised EBIT over Average Funds Employed (Debt (including Lease Liability) + Equity)

10
Five year transformation
Embedded value from turnaround programme; growth strategy now underway
495.8
599.1
FY18FY22
$m
Revenue
(28.1)
66.6
FY18FY22
$m
EBITDA
21.2
66.9
FY18FY22
$m
Normalised EBITDA
(36.2)
47.6
FY18FY22
$m
EBIT
13.1
47.9
FY18FY22
$m
Normalised EBIT
(32.1)
30.2
FY18FY22
$m
NPAT
4.2
14.6
FY18FY22
%
ROFE
150
167
FY18FY22
Tonnes (000’s)
Volume

11
* Based on share price of $1.27 as at 30/06/2022
TSR: Total Shareholder Return. This is calculated using (Closing share price –opening
share price + dividends)/opening share price
FY22 Dividend: 13.0 cps
Represents a dividend yield of 11.4%*
Payment of 71% in line with Steel & Tube’s
dividend policy of 60% -80% of Adjusted NPAT
Earnings per share (cps): 18.3
Net Tangible Assets per share: $1.22
Price earnings ratio: 6.9
Total Shareholder Return: 19.1%
Shareholder Returns
Steel & Tube delivers a high dividend yield
5 year transition complete, now focused
on growth and continuing to generate
sustainable double-digit ROFE:
•Quality business with strong
foundations embedded
•Leading supplier in a market with
strong demand –well positioned to
succeed through the economic cycle
•Delivered on turnaround strategy
•Attractive shareholder returns and
value
•Clear forward strategy and growth
opportunities
•Digital investment making a positive
impact
9

12
Building a sustainable
business
Our long term aim is to operate our
business in a way that is financially
rewarding for our shareholders and
positive for our people, our customers
and our planet.
Steel is one of the world’s most essential and
sustainable building products –permanent, forever
reusable and the most recycled substance on the
planet. On a cradle to cradle basis, steel’s
environmental performance compares favourably
to other materials such as concrete and timber.
Supporting our
people and
customers
Delivering value to our
shareholders
Maximising steel’s
contribution to a
sustainable and
low emission
society

13
ESG Scorecard
Positive progress being made on all key metrics
*TRIFR: Employee Total Recordable Injury Frequency Rate
**Reporting in accordance with Greenhouse Gas Protocols and includes all material emissions under Scope 1 and 2, with Scope 3limited to business travel..
4.9
1.86
1.13
0
2
4
6
FY20FY21FY22
TRIFR
5
13
15
19
29
35
0
10
20
30
40
July 20Nov 20Mar 21July 21Dec 21Apr 22
eNPS SCORE
Employee Engagement
Employee Satisfaction Score 7.8/10
Employee Safety Measure
TRIFR 1.13 –substantially than industry standards*
Customer satisfaction
NPS of 40 for FY22
Carbon Reduction**
21% reduction of carbon emissions per $1m revenue
2,261
1,972
1,948
1,700
1,800
1,900
2,000
2,100
2,200
2,300
FY20FY21FY22
tCO
2
-
e
24
34
40
0
10
20
30
40
50
F Y 2 0F Y 2 1F Y 2 2
NPS SCORE

14
Moving
Forward

15
Our purpose
To make life easier for our customers
needing steel solutions
•Providing a one-stop-shop for the most
essential steel products –from foundation
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
15

16
Strategic focus
Growth focused on strengthening the core and building higher value products, services
and sectors to drive gross margin improvement –benefits expected from FY24 onwards
•Continue to build best-in-class customer
experience
•Leverage opportunities to cross sell a wide
range of products and services
•Drive gross margin $/tonne through dynamic
pricing and product procurement
•Ongoing focus on operating model –
warehouse operations, digitisingsupply
chains and customer facing channels
Continue to Strengthen the Core
•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
Grow High Value Products,
Services and Sectors

17
•Attractive value-added
products
•Growing market sector
•Replacement of obsolete
equipment with large, high
capacity machinery
•Market leading –digitally
enabled, automated cutting,
optimises remnants
•Operational from June 2022,
solid forward workload already
in place
•Existing footprint has
significant opportunity to
expand
Expanded plate
processing
capability and offer
31

18
•Symbolic of strategy to
selectively invest in high
value products and
segments
•Niche strength –fire and
water reticulation products
•Builds on Steel & Tube’s
existing offer
•Provides scale, market share
growth and immediately
earnings accretive
Kiwi Pipe and
Fittings
32

19
FY23 Outlook
Robust operating model, well positioned to deliver through the economic cycle
Trading conditions:
•Continuing volatility in global and local
economies expected
•Steel pricing expected to remain elevated
•Shorter term strong demand likely to
continue across most sectors
•Longer term, steel demand in some sectors
may moderate
Business Outlook:
•Clear focus on strengthening the core and
investing in high value products, services and
segments
•Business growth through organic expansion
and programmatic smaller M&A
•Further strategic initiatives expected to be
reflected in results from FY24 onwards
•Goal to continue to deliver sustainable
double-digit ROFE

Discussion

21
Non-GAAP Financial
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 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.
Non-trading adjustments/Unusual transactions: The financial
results for FY22 (12 months) 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 normalised earnings
can assist users in forming a view of the underlying performance of
the Group. The above reconciliation is intended to assist readers to
understand how the earnings reported in the periods ended 30 June
2021 (12 months) and 30 June 2022 (12 months) reconcile to
normalised earnings. Non-trading adjustments of $(0.3) million are
included in the FY22 (12 months) results.

Period ended 30 June Restated Restated
$000sFY22FY21FY22FY21
Reported 66,598 38,614 47,63620,707
Holiday Pay provision release(854) -(854) -
NZ IFRS 16 reversal of impairment(527) (1,546) (527) (1,546)
Gain on sale of properties(1,215) (1,215)
Software as a Service (SaaS) expenditure1,6451,7601,6451,760
Normalised66,86237,61347,90019,706
EBITDAEBIT

22
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
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
ROFE:Return on Funds Employed. This is calculated as
Normalised EBIT over Average Funds Employed (Debt
(including Lease Liability) + Equity)
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
TSR:Total Shareholder Return. This is calculated using
(Closing share price –Opening share price +
Dividends)/Opening share price

23
•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 invitation or
solicitation for such offers.
•This presentation is not intended as investment, financial or other
advice and must not be relied on by any prospective investor.It
does not take into account any particular prospective investor’s
objectives, financial situation, circumstances or needs, and does not
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 having regard 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 that
an transaction or outcome referred to in this presentation will
proceed or occur on the basis described in this presentation.
Statements or assumptions in this presentation as to future matters
may prove to be incorrect.
•A number of financial measures are used in this presentation and
should not be considered in isolation from, or as a substitute for, the
information provided in STU’s financial statements available at
www.steelandtube.co.nz.
•STU and its related companies and their respective directors,
employees and representatives make no representation or warranty
of any nature (including as to accuracy or completeness) in respect
of this presentation and will have no liability (including for
negligence) for any errors in or omissions from, or for any loss
(whether foreseeable or not) arising in connection with the use of or
reliance on, information in this presentation.
Disclaimer