Steel & Tube 2022 ASM Presentation and Speeches

2022 Annual Shareholders’ Meeting
30 September 2022

2
Making life
easier for
customers
needing steel
solutions
2

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How to ask questions
Shareholder & Proxyholder Q&A
Participation
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How to vote
Shareholder & Proxyholder Voting
Once the voting has been opened, the
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To vote, simply click on the Vote tab,
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To change your vote, select ‘Change Your Vote’.

5
Our
Board
Steve Reindler
Independent Director
Appointed Oct 2017
Karen Jordan
Independent Director
Appointed Dec 2020
Susan Paterson
Independent Chair
Appointed Jan 2017
Christopher Ellis
Independent Director
Appointed Oct 2017
John Beveridge
Independent Director
Appointed August 2019
(Standing for re-election)
Andrew Flavell
Independent Director
Appointed Oct 2021
(Standing for election)

Agenda
•Chair’s Presentation
•CEO’s Presentation
•Discussion
•Resolutions
•Other Business
•Meeting
Close/Refreshments
6

7
Chair’s
Address
Susan Paterson
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Steel & Tube today
•One of NewZealand’s leading
providers of steel solutions
•A proud NewZealand
company, now in our 70
th
year of trading
•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
27 Sites
Nationwide

Project Strive –
company wide reset
to refocus, reduce
costs and streamline
the business
Our journey
Our goal is to be the best in the sector, the preferred choice for steel
products and solutions and a trusted partner for our customers
FY21 – FY22
FY23 onwards
FY18 - FY20
Embedded value.
Focus moving to
growth. Covid
headwinds
Value of turnaround
now apparent. Strong
focus on growth with
clear strategy in place
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10
•Strong 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 Return on Funds Employed
(ROFE)
The turnaround and
commencement of
the growth strategy
has demonstrated
value with this year’s
record Sales and
EBITDA

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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

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Building a
sustainable
business
Long term aim is to
operate the business
in a way that is
financially rewarding
for our shareholders
and positive for our
people, our customers
and our planet
Supporting our
people and
customers
Delivering value to our
shareholders
Maximising steel’s
contribution to a
sustainable and
low emission
society

13
Sustainable Steel
Steel facilitates a
circular economy
•Infinitely recyclable
•Reduced construction waste
•Durable
•Non-toxic and inert
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ESG Scorecard
Positive outcomes on safety and employee engagement
1.TRIFR: Employee Total Recordable Injury Frequency Rate
2.Employee Net Promoter Score (NPS): Industry average is 18
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
2
Employee Safety Measure
•TRIFR 1.13 – lower than industry standards
1
•Emphasis on critical risks and reduction
measures
•Safety conversations program and worker
engagement providing valuable insights
•Employee Satisfaction Score 7.8/10
•April 2022 Employee Engagement score of 35 –
close to the top quintile global benchmark
•Living wage as minimum for all employees, as
from December 2022
•Focus on Wellbeing, diversity, recruitment, career
development and training

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Customer satisfaction
Carbon Reduction
2
1.Net Promoter Score (NPS): Measure of customer/employee satisfaction. Customer NPS industry average is 32
2.Reporting in accordance with Greenhouse Gas Protocols and includes all material emissions under Scope 1 and 2, with Scope 3 limited to business travel.
24
34
40
0
10
20
30
40
50
FY20FY21FY22
NPS SCORE
ESG Scorecard
Delivering for customers in challenging period; continued focus on decarbonisation
•NPS of 40 for FY22
1
•Improving result reflects ability to deliver for
customers during a challenging period
•Greenhouse gas emissions 1,948 tCO
2
-e – in line with prior
year despite increase in activity
•7% reduction in carbon emissions per tonne sold
•Investment in technology supporting decarbonisation
•Introduction of ‘carbon credit’ offer for infrastructure clients
16.53
12.5
11.63
0
5
10
15
20
FY20FY21FY22
tCO
2
-
e per tonne
(000s)

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* 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%
(Based on share price of $1.27 as at 30/06/2022 )
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%
FY22 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
•Delivered on turnaround strategy
•Well positioned to deliver through the
economic cycle
•Attractive shareholder returns and
value
•Clear forward strategy and growth
opportunities
•Digital investment making a positive
impact
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Clear growth strategy in place, building on strong foundations to strengthen
the core and growth in high value products, services and sectors
Strategic Goals
Customer
The preferred
supplier for steel
solutions and
products
Growth
Increase valuation
through organic
growth and
programmatic
smaller M&A
Shareholder
Deliver increasing
value and returns
for our
shareholders

CEO
Presentation
Mark Malpass
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Leadership team
Peter Ensor
GM Reinforcing
Damian Miller
GM Quality, Health,
Safety & Environment
Richard Smyth
Chief Financial Officer
Mark Baker
GM Supply Chain &
Distribution Centres
Marc Hainen
GM Distribution
Mark Malpass
Chief Executive Officer
Mohammed Afroz
GM Rollforming
Mike Hendry
Chief Digital Officer
Anna Morris
GM People & Culture
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FY22 business highlights
Strengthen the core
•Customer:Priority focus on maintaining
availability of critical products and high
levels of service for customersresulted in
consistent delivery in full on time
•Operating Platform: Structurally lower
cost base, strong market reputation and
ability to source and deliver product
•Gross Margin: Improved pricing
governance and controls
•Digital: Continued investment in digital
technologies; customers benefitting from
our omni-channel platform
High value growth
•Acquisition: Acquired Fasteners NZ
•New Products: Launch of new
product ranges, including Zipclipand
Rooffast
•Higher Value Sectors: Investment in
new manufacturing equipment to
further grow market share in existing
sectors
•Higher Value Products:Invested in
new plate processing equipment – a
high margin, high value sector
•Higher Value Products: Expanding
steel framed housing –widen
customer base and investment

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ROFE
14.6%
FY21: 6.6%
Record Sales and EBITDA with
improvement in all key metrics
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%
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)
•Volume, revenue and
earnings uplift
•Gross margin continues to
improve
•Sustained structural
reduction in operating
expenses
•Utilised strong cash position
to invest in critical inventory
•Strong balance sheet with
low borrowings
•Double-digit Return on
Funds Employed
Driven by trading disciplines,
customer service, operational
performance, supply chain
managementand strong sector
demand

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Business Performance
Increases across both divisions; particularly strong
performance in Distribution
Distribution – high volume business
•Strong performance, well positioned to take advantage of
market conditions
•Benefiting from customer service, inventory and supply
chain management, and trading disciplines
•Current expansion of plate processing and other high
value product opportunities
Infrastructure – processing products before sale
•Lift in revenue despite headwinds
•Significant growth in Roofing,Purlins and demand for
steel framing
-
50
100
150
200
250
300
350
400
FY21FY22
$m
Sales
InfrastructureDistribution
Percentage of FY22 Group EBIT
DistributionInfrastructure

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Moving
Forward

Strengthen
the core
Grow high
value products,
services and
sectors
24
Our strategy
Building on momentum to create a market leading business

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Strategic pathways
Overall goal to deliver gross margin improvement – benefits expected from FY24 onwards
•Best-in-class customer experience
•Cross sell products and services
•Accelerate shift to digital sales
•Drive gross margin $/tonne
•Operating efficiency
Continue to Strengthen the Core
•High value products, diversified materials
and value-added services
•Diversify customer segments and build scale
•Primary focus is on organic investmentand
programmatic smaller M&A in direct
adjacent sectors
Grow High Value Products,
Services and Sectors

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Strategic pathways: current state
Strategic InitiativeEarly
stage
Hitting
its stride
Full
benefit
Continue to
strengthen the core
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

High value products,
services and sectors
Continue to diversify customer segments and build scale in high value sectors

Expand plate processing offer and capability, and steel framed housing

Build niche market share through Kiwi Pipe & Fittings

Build high value product range via acquisition of Fasteners NZ

Accelerate shift to digital sales

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Competitive advantage through
best in class customer experience
•Use of analytics to better serve
different customer segments and
types
•Higher levels of automation
•Increase focus on sales
technology to enhance sales
productivity
•Enhanced pricing governance
and controls
•Investment into IT infrastructure
providing operating leverage
Digital advantage
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Ecommerce
•Revenue +140% yoy
•Customer numbers +200% yoy
•20% of active customers now using webshop
Electronic Data Interchange (EDI)
•Launched EDI – targeting high volume, lower margin
customers. Reinforces strategic relationship by reducing
cost to purchase and cost to serve
Launched CRM for customer experience team
Pricing and analytics platform
Cybersecurity, investment into resiliency on critical sites

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•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
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•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
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1-July1-August1-September1-October
Volume (tn)
FY21FY22FY23
1-July1-August1-September1-October
Revenue ($m)
Trading Update:
1Q23 to date
July/August trading
•Steady across most sectors
•Supported by operational and trading
disciplines
Year on year comparative trading
For the 34 business days to 17 August 2022 (prior year
lockdown commenced 11.59pm 17 August 2021)
•Revenue up 15%
•Volumes flat year on year
Strong pipeline of secured work in place
across a range of sectors
Cumulative Revenue
Cumulative Volume
August 2021
Lockdown

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FY23 Outlook
Robust operating model, well positioned to deliver through the economic cycle
Trading Outlook:
•Continuing volatility in global and local
economies expected
•Steel pricing in NZD expected to remain
elevated in the near term
•Customer activity expected to be steady,
although in some sectors will moderate off
the recent extraordinary high demand
levels, as is already being seen
•Focus remains on Gross Margin dollar per
tonne
Market Activity
•Significant rebuilding of Government
investment in infrastructure (+56% over
the next decade compared to last decade,
particularly roading and water)
•Manufacturing (food & non-food)
expanding
•Residential building consents have peaked
although moderation will be partially offset
by ongoing social housing and retirement
village investment expected
•Commercial construction activity
strengthening

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Steel & Tube is strongly positioned to deliver through the
economic cycle
Key Strengths
•Unmatched breadth of high-quality product and
solutions
•National network with regional strength
•Enhanced customer value proposition and high levels
of customer service
•Disciplined operational, supply chain and inventory
management
•Strong pricing governance and controls and use of
data analytics
•Experienced Board and Management team – industry
knowledge and enhanced digital capability
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

Shareholder
discussion
33

Resolutions
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Resolutions
Resolution 1: Auditor’s Remuneration
That the Directors be authorisedto fix the fees and expenses of KPMG as the company’s auditor.
Resolution 2: Re-election of John Beveridge
That John Beveridge, who retires by rotation and is eligible for re-election, be re-elected as a
Director of the Company.
Resolution 3: Election of Andrew Flavell
That Andrew Flavell, who was appointed as a Director by the Board during the year, be elected as
a Director of the Company.
Resolution 4: Directors’ Remuneration
To authorise, for the purpose of NZX Main Board Listing Rule 2.11, an increase in the total amount
of remuneration payable per annum to non-executive Directors from $575,000 to $642,500 an
increase of $67,500 (12% - an average of 2.3% per annum for the past five years), to be paid and
allocated to the non-executive Directors as the Board considers appropriate.

Other business
Close of the Meeting
36

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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

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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

40
•This presentation has been prepared by Steel & Tube Holdings
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

---

STEEL & TUBE 2022 ANNUAL SHAREHOLDERS’ MEETING
30 September 2022

CHAIR’S ADDRESS
Susan Paterson
STEEL & TUBE TODAY
Steel & Tube is one of New Zealand’s leading providers of steel solutions, a position that’s been built
up over many decades. 2022 is in fact, our 70
th
year of trading.
We offer New Zealand’s most comprehensive range of steel solutions and products, through our
ecommerce platform and our nationwide network of 27 branches and distribution centres.
We play a vital role in the New Zealand economy, as a reliable and trusted provider of steel
solutions. We supply our products to businesses ranging from spa pool manufacturers to satellite
makers, and for some of New Zealand’s largest infrastructure projects from the City Rail Link to
motorways. Steel is also a key component in the construction of projects focused around climate
change, such as windfarms, and Steel & Tube has good expertise in these areas.
Our investment into inventory over the last 12 months has ensured these and other projects were
able to continue, despite supply chain, mill and labour interruptions.
OUR JOURNEY
Five years ago, we embarked on a journey to reset our organisation for a stronger future. The results
of our endeavours are now evident, with Steel & Tube reporting record Sales and EBITDA for the
financial year ending 30 June 2022. We would like to thank shareholders for their support on this
journey.
TURNAROUND AND COMMENCEMENT OF GROWTH STRATEGY
The 2022 Financial Year allowed us to demonstrate the value of our turnaround and our focus on
growth.
We delivered a strong financial performance and now have a robust operating model in place to
support our growth ambitions. Our digital strategy is a key enabler and we are leading the charge in
the industry, to make it more efficient and effective.
We have a very clear focus on two pathways that will allow us to continue to generate double digit
return on funds employed. Firstly, continuing to strengthen our core business and secondly, to grow
by investing in high value products, services and sectors.
We are well positioned to deliver through the economic cycle with the expertise, operating platform
and growth strategy that will create continued shareholder value.
5 YEAR TRANSFORMATION
Our company has been transformed over the last five years since we started our Project Strive
turnaround programme in 2018.

This slide demonstrates the substantial improvement over this time.
Our financial performance has improved significantly to this year’s strong results, with the
embedded value now being realised from Project Strive and our growth strategy that is underway.
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.
We have three key focus areas – maximising steel’s contribution to a sustainable and low emission
society, supporting our people and customers, and delivering value to our shareholders.
SUSTAINABLE STEEL
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.
In New Zealand, it is estimated that 85% of steel from demolition sites is returned to steel mills for
recycling.
Extending the life of a structure also enables more value to be extracted from the resources invested
to build, operate and maintain it. For many construction and manufacturing applications, steel is the
only choice.
However, we are mindful of the greenhouse gas emitted during steel’s production. We are closely
monitoring new technologies to decarbonise steel but are conscious these are still in the very early
stages. In the meantime, we are focusing on initiatives to control our operational emissions,
optimise energy consumption and minimise waste.
Our investment in technology is an important enabler of our progress towards reducing our carbon
footprint.
One new initiative we are excited to support is a 'carbon credit' offer for our infrastructure
customers, in conjunction with the Heavy Engineering Research Association. Now, customers can opt
to offset the embodied carbon in the steel they order, which Steel & Tube will facilitate through our
partners. These credits will be passed directly through to the customer, with the cost being used to
fund the planting and protection of native trees across New Zealand and the Pacific Islands. Steel &
Tube does not make any money from this programme.
ESG SCORECARD – SAFETY AND EMPLOYEE ENGAGEMENT
We are focused on continual improvement in key areas that matter to us:
Both employee safety and employee engagement have significantly improved in the last year.
We have a great team leading our company and passionate people who are focused on delivering
the best possible solution and experience for our customers.
Pleasingly, our people rated their satisfaction score as 7.8/10 – a reflection of the supportive and
strong culture at STU.

The Board recognises the value of diversity across our workforce and the part this plays in creating a
rich and vibrant culture. Thirty different ethnicities are represented across our workforce. Māori
leaders now represent 18% of direct reports to our General Managers. We have commenced Māori
cadetships with Te Puni Kōkiri, and our Diversity & Inclusion team have led awareness campaigns on
cultural traditions and practices which affect key demographics of our workforce. Our internships
and the Steel & Tube career coaching programme are also new initiatives to attract and retain great
people. While we have initiatives in place and numbers are growing, we recognise that women
remain under represented in the sector, and we are committed to addressing this as much as we
can.
Early on in Covid, we recognised Mental Wellbeing was going to be important, and during the
lockdowns we supported our people, not only financially but also their Wellbeing. Every six weeks,
we’ve continued to run webinars on a range of topics that affect our people both in the workplace
and at home. These range from mental health, parenting, managing stress, financial advice, nutrition
and mindfulness.
It was also important that our people and their families were healthy and safe – we were the first to
invest in Covid vaccine incentives, we pushed booster support, and provided RAT tests for families.
We have also invested in training and skill development while many of our workers were stuck at
home, to keep them engaged and also allow them to upskill and progress their careers.
ESG SCORECARD – CUSTOMER SATISFACTION AND CARBON REDUCTION
Customer satisfaction also continues to increase and reflects our ability to deliver during what has
been a challenging year.
Our greenhouse gas emissions reduced year on year, with a 7% reduction in emissions per tonne
sold. This is a result of multiple supply chain and operational initiatives.
SHAREHOLDER RETURNS
We are committed to generating value for our shareholders.
Steel & Tube has a high gross dividend yield, with this year’s full year dividend of 13.0 cents per
share, representing a yield of 11.4%. This gross yield compares well to our peers.
Earnings per share are 18.3 cents per share (cps), with Net Tangible Assets per share at $1.22
Total shareholder returns in FY22 were 19.1%.
STRATEGIC GOALS
Steel & Tube has a clear forward strategy, a strong operating platform and the means to invest into
growth.
Our goals are three-fold:
To position Steel & Tube as the preferred supplier for steel solutions and products;
To increase the company’s valuation by growing our existing offer and programmatic smaller m&a in
adjacent sectors;
And to deliver increasing returns and value for our shareholders.

The turnaround and commencement of the growth strategy has been proved with this year’s record
Sales and EBITDA result.
I would like to acknowledge the exceptional efforts of Mark Malpass, who stepped down from the
board to take on the role of CEO in late 2017, and the leadership team, as well as all the people at
Steel & Tube who deliver outstanding service for our customers every day.
I would also like to thank my fellow Board members, whose industry knowledge and skills deliver
significant value for Steel & Tube.

CEO’S ADDRESS
Mark Malpass

LEADERSHIP TEAM
I’d like to acknowledge the leadership team, many of whom are here today, sitting in the front row,
and would be more than happy to talk with you after the meeting.
The success of our transformation over the past five years, is definitely a team effort and would not
have been possible without their support and contributions.
FY22 HIGHLIGHTS
We have a very clear focus on two pathways to continue to generate double digit return on funds
employed. Firstly, continuing to strengthen our core business and secondly, to grow by investing in
high value products, services and sectors.
One of the drivers in this year’s strong result has been the recovery and uplift in economic activity,
creating high demand for steel.
Residential construction has been booming, commercial construction and manufacturing have
remained steady, and infrastructure is expanding with large ongoing projects such as 3 waters,
wharfs, rail bridges and motorway upgrades.
Covid-19 continued to disrupt the business during the 2022 Financial Year, with regional lockdowns
and restrictions in the first half of the year and increased employee absenteeism due to illness in the
second half of the year. We’ve also seen labour constraints, steel mill and supply chain congestion
which has impacted on stock availability, and increasing steel prices alongside rising inflation and
interest rates.
We have a number of advantages in this environment. We are diversified across a range of sectors.
We have size, scale and very strong supplier relationships that mitigate a lot of the risk from the
supply chain pressures. Our investment into technology is also paying dividends across all areas of
our business, making us more efficient and agile.
Our focus has been on maintaining availability of product and high levels of service for customers.
Importantly, we increased our inventory holdings of high demand products in the 2022 Financial
Year, investing significant cash to ensure availability of critical products for our customers. As
shipping and supply chain issues ease, we expect our inventory levels to reduce.

We also grew the business during the year, through acquisition of complementary bolt-on
businesses, such as Fasteners NZ.
FY22 FINANCIAL RESULTS
We were pleased to deliver record sales and EBITDA in the 2022 Financial Year, driven by a focus on
customer service and value add, operational performance, and disciplined supply chain
management, which meant we had inventory available when our customers needed it to support
their growth across a range of sectors.
Revenue increased 25% to be almost $600m; EBIT increased 130% to $47.6m, with EBITDA up 73%
to $66.6m, and profit almost doubling to $30.2m.
Other key metrics have also improved – Return on Funds Employed was 14.6%, our customer
satisfaction or net promotor score moved up to 40 vs industry average of 32, and our employee
satisfaction net promotor score was 35 vs industry average of 18. Importantly, our safety employee
Total Recordable Injury Frequency Rate improved to 1.13, well below industry averages of 5.
BUSINESS PERFORMANCE
Both our business divisions delivered improvements, with a particularly strong performance in
Distribution which is benefitting from focussed customer service, inventory and supply chain
management, and trading disciplines.
We are currently expanding plate processing and other high margin product opportunities are being
planned.
In Infrastructure, revenues increased despite the challenging market conditions, while margins were
down slightly primarily due to the impact of Covid on Reinforcing. We have repositioned this
business to drive higher returns and lower risk.
Roofing which makes up about 60% of Infrastructure revenue has grown significantly.
MOVING FORWARD
We have a robust operating model in place to support our growth ambitions and are well positioned
to deliver through the economic cycle and grow shareholder value.
OUR STRATEGY
In particular, we are concentrating our efforts into two key areas – continuing to strengthen our core
foundation and investing in higher value products, services and sectors.
STRATEGIC PATHWAYS
Our overall goal is to deliver gross margin improvement.
Continuing to strengthen our core involves building on the business foundation now in place with
focus on:
Best in class customer experience to ensure we achieve our goal of being New Zealand’s preferred
supplier of steel products and solutions; and

Leveraging our breadth and scale to cross sell a wider range of products and services, using our
industry leading digital platform, continued focus on gross margin dollar per tonne, and delivering
operational efficiencies.
Investing in higher value products, services and sectors is focussed on extending what we can offer
to our customers. This includes adjacent materials and value added services.
Diversifying customer segments and building scale and footprint in these areas is important.
While our primary focus is on organic growth, we also continue to consider opportunities via
programmatic smaller M&A in adjacent sectors.
We are mindful of the investment shareholders make in our company and do not believe in growth
for growth’s sake. Instead, we have a disciplined approach to investment in new opportunities, to
ensure they will deliver financial and strategic value.
STRATEGIC PATHWAYS: CURRENT STATE
You can see on this slide our key initiatives and their current state. We are at the early stage with
many opportunities, with their full benefit and value yet to be realised.
I’d like to talk about a few of things we are doing in a bit more detail.
DIGITAL ADVANTAGE
Our digital strategy is a key enabler for our business and provides a significant competitive
advantage in what is a traditional analogue industry.
We’ve seen digital steel trading emerge in the US and Europe which provides us with continued
conviction 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, and also NZ Inc.
Data and analytics have also helped capture opportunities in the areas of pricing and procurement,
review of product lines and operational efficiencies.
PLATE PROCESSING
An example of our growth strategy in action is in added value plate processing where we have
invested into
new equipment to expand our plate processing capability and offer.
This is a high value category with strong demand, that provides attractive margins. Our expanded
capability will allow us to benefit from growing demand for value-added processed steel plate, while
continuing to supply our existing processing customers.
Our new Kinetic machinery offers combination cutting, milling and drilling systems which help
increase efficiency and maximise production. It uses the latest plasma cutting technology and can
cut a variety of metals. Thanks to the fully integrated software, we can process parts from start to
finish in single set up, saving time and increasing productivity. Easy touch screen controls make it
simple for our team, again enhancing productivity.
Not only does the new machinery deliver substantial operational benefits, but it also reduces waste
through optimising the use of remnants. It was operational from June 2022 and we already have a
strong forward workload in place.

KIWI PIPE AND FITTINGS
On 1 August we acquired Kiwi Pipe and Fittings which is also symbolic of our strategy to selectively
invest in high value products and sectors.
Kiwi is a small business which specializes in fire and water reticulation products. It builds on our
existing offer and provides scale and market share growth, as well as being immediately earnings
accretive. Bringing Kiwi into the fold makes us one of the larger suppliers in this market.
1Q23 TRADING UPDATE
Trading through July and August has been steady across most sectors with earnings supported by
operational and trading disciplines.
Last year was impacted by the Nationwide Alert Level 4 Lockdown at 11:59pm on 17 August. In
FY23, for the 34 days to 17 August 2022, revenue is up 15% while volumes have remained at the
same level as the last year.
We have a strong pipeline of secured work in place.
FY23 OUTLOOK
At a sector level, Infrastructure is expected to grow as the Government rebuilds investment and with
large infrastructure projects planned over the next decade. The manufacturing sector is showing
positive signals with the PMI expanding to 54.9 in August. Residential construction consent data
remains positive although we are starting to see some softening which is likely to be partially offset
by ongoing social housing and retirement village investment. Commercial construction remains
reasonably solid.
Looking at the 2023 Financial Year, we are expecting continued volatility in the global and local
economy.
Steel pricing in NZD is expected to remain elevated in the near term.
Customer activity is anticipated to be steady although some sectors will moderate off the recent
extraordinary high demand levels, as is already being seen.
Our focus remains on gross margin dollar per tonne and delivering double digit Return on Funds
Employed.
STRONGLY POSITIONED
Steel & Tube is strongly positioned to deliver through the economic cycle and to take advantage of
new market and product opportunities.
We have a clear focus on continuing to strengthen the core and investing in high value products,
services and sectors.
While the majority of our growth will be organic, we will also continue to consider small bolt on
acquisitions where they meet our criteria.
The benefits of current strategic initiatives are expected to commence in the 2023 Financial Year and
be fully reflected in results from 2024 Financial Year and onwards.

We will continue to be responsive to the changing environment and changing sector demands. Our
team has the experience and skills to solve challenges and identify opportunities. Our focus remains
on how we differentiate ourselves to stand out as the preferred supplier of choice.
We expect continued earnings momentum and our goal is to deliver sustainable double-digit Return
on Funds Employed.

ENDS