Annual Meeting of shareholders presentation

Vulcan Steel Limited (Vulcan)
ASX/NZX/Media Release
20 October 2022


2022 Annual meeting of shareholders – Chair and MD/CEO addresses

Attached are the following documents in connection with Vulcan’s 2022 annual meeting of
shareholders (Annual Meeting) to be held today (Thursday, 20 October 2022) at
2:00pm NZT (12:00pm AEDT):
 Address from the Chair of the Board of Directors, Russell Chenu;
 Address from the Managing Director and Chief Executive Officer, Rhys Jones; and
 Presentation.
As previously notified, Vulcan’s Annual Meeting is a hybrid meeting, allowing shareholders
to attend in person (at Eden Park in Auckland, New Zealand) or virtually via an online portal.
Information about the Annual Meeting is also available at
https://investors.vulcan.co/investor-centre/?page=annual-meetings-of-shareholders

ENDS

Kar Yue Yeo
Investor and media contact
Email: karyue.yeo@vulcan.co
Phone: +64 9 273 7214
This announcement was authorised by Vulcan’s Chair of the Board.

About Vulcan
Founded in 1995, Vulcan is an Australasian-wide industrial product distributor and
value-added processor with 72 logistics and processing facilities employing 1,500 staff
across the company’s Steel and Metals divisions
.

Address from the Chair of the Board of Directors, Russell Chenu
Ladies and Gentlemen, fellow Shareholders.

Welcome to this meeting, Vulcan’s first annual shareholder meeting as a listed company,
but its 26th since its incorporation in 1995.

The twelve months to June 2022 was a historic year for Vulcan Steel. The Company was
floated on the ASX and the NZX in November 2021, as a result of which the number of
shareholders increased from approximately 50 to now in excess of 1,300.
Just as significantly, the Company prospered during 2021/22 in a challenging operating
environment which included pandemic lockdowns and disrupted supply chains in both
New Zealand and Australia. The Company achieved record sales and record earnings in
the year ended 30 June 2022. As a result of the efforts of our teams, we materially exceeded
our prospectus earnings forecast and we released three earnings upgrades between
release of the prospectus in October of last year and the financial year end.

That has enabled your Company to declare dividends of 65 cents per share since the listing
in November of last year. This translated to more than 10% gross dividend yield for our NZ
and Australian shareholders based on our IPO price.

The graphs on the screen illustrate the absolute and relative total shareholder return
achieved since listing. In addition to our dividends to shareholders and, despite a
challenging stock market since listing, our share price also delivered strong relative
performance and was 31% ahead of our peer companies, 11% ahead of the ASX300 Index,
and 22% ahead of NZX50 Gross Index.
In his CEO address, Rhys will elaborate on the detail of the results for the 2021/22 financial
year.
Subsequent to the listing, the implementation of Vulcan’s growth strategy in metals
markets in New Zealand and Australia has continued. We have further pursued organic
growth opportunities as well as expanded into aluminium through the acquisition of Ullrich
in August. This takes us into a new segment and expands our product offering. Ullrich
operates at scale in aluminium distribution in both New Zealand and Australia. Rhys will
provide more detail on Ullrich, an acquisition which the Board considers to be an attractive
step-out for Vulcan.
I would now like to make a few comments on governance matters. Following their decisions
to retire, this is the last meeting that Peter Wells and Pip Greenwood will attend as Directors.
Peter co-founded Vulcan in 1995 with other shareholders. He drove the early success of the
business in New Zealand before setting up Vulcan’s operations in Australia in 2002. Having
served as the Company’s executive director for many years, he retired from executive life
in 2016, but continued his involvement with Vulcan as Chairman until the middle of last year
when I was invited succeed him. Peter has chosen to retire at the end of this meeting and
we will miss his contribution enormously. We wish Peter all the best in his retirement and
thank him for agreeing to continue to be available to us - an offer he has generously made.
Pip joined the Board of Vulcan in 2019 and, using her considerable expertise and experience,
contributed significantly to the preparation and execution of the Company’s IPO, as well as

Address from the Chair of the Board of Directors, Russell Chenu

the acquisition of Ullrich. On behalf of the Board and Shareholders, I thank Pip for her service
to Vulcan and wish her well in her future endeavours.
As a result of Peter’s and Pip’s decisions and the appointment of Adrian Casey as a director
in September, we are now in a position of having 50% of directors being independent. We
have commenced a process of board renewal leading to the recruitment and appointment
of an additional independent director in order to restore a majority of independent
directors.
Next, I would like to recognise and acknowledge the efforts and contributions that all Vulcan
employees have made in the first year of Vulcan as a listed company. It has been a most
challenging year and the record financial results achieved attest to the way in which the
Company’s people have managed through the challenges that we have all experienced.
We are most fortunate to have leaders of the calibre of Rhys as CEO, Adrian as COO and
Kar Yue as CFO at the helm.
Finally, I would like to thank all shareholders for the support they have shown by investing in
the company, whether at the time of the IPO or by subsequently buying in the market. You
are assured of our efforts to continue to achieve superior returns by offering exceptional
customer service and value.
I will now ask Rhys to present his Managing Director’s address.
Thank you.

Address from the Managing Director and Chief Executive Officer, Rhys Jones
Page 4 of 5

Thank you, Russell.

I would like to welcome everyone today either in person or online. My name is Rhys Jones,
and I am the Chief Executive of Vulcan Steel.

Overview
This financial year has been both challenging and disruptive with the impact of Covid
related lockdowns and restrictions requiring all of our team to respond to these changing
circumstances. It is important to acknowledge the outstanding teamwork and positive
attitude of all my colleagues in the last year as they maintained a laser focus on supporting
our customers and solving problems as they arose due to Covid.

The teamwork became tighter and the customer first culture stronger as each new
challenge emerged. A highlight to exemplify this teamwork was the maintenance of our
DIFOT performance even when close contact stand down rules suddenly depleted team
numbers. Colleagues from other units travelled in to help out while remaining staff worked
all weekend to ensure customers were not impacted.

Market
The overall market demand throughout the year was strong but heavily disrupted due to
Covid and staff shortages across the supply chain. The stop- start nature of product flow
from mills to our end customers meant production planning and scheduling across the
entire supply chain was disrupted. This resulted in delays, higher costs and inefficiency.
Vulcan proactively increased stock holding to ensure product availability and was therefore
able to maintain product availability to our existing and new customers.

At the end of the financial year supply chain challenges were easing while customers were
typically making progress in reducing their backlog of work.

The financial performance of the Company is displayed on the slide shown. This record
financial performance resulted from selling over 263,000 tonnes to over 12,000 customers.
The breadth and depth of our Australasian customer base continued to grow while our
stock management capability was beneficial as industry wide supply chain disruptions
occurred.

The total revenue for the Company reached a new record of just below one billion dollars.
Strong pricing disciplines in both the Steel and Metals divisions resulted in improved
margins which combined with effective operational cost control enabled an overall
adjusted EBITDA of $243m to be achieved. This excellent result compares favourably with
previous financial year being $110m higher. The cash conversion improvement of 700 basis
points to 85% was another highlight. The overall adjusted net profit after tax increased by
$77m to $142m.

Another key financial metric Vulcan places great focus on is ROCE or return on capital
employed. Despite the increased investment in working capital due to higher inventory
levels, as referenced above, and higher product costs the ROCE increased by 13% to 37%.

Address from the Managing Director and Chief Executive Officer, Rhys Jones
Page 5 of 5


This record FY22 earnings result coupled with high cash generation has enabled Vulcan to
acquire Ullrich Aluminium on a debt funded basis. As the table shows Vulcan’s pro forma
net debt to EBITDA cover was approximately 1.4 times as at the 30th of June 2022 inclusive
of the acquisition price for Ullrich Aluminium.

Vulcan signed a conditional agreement in July to acquire Ullrich Aluminium which was
transacted on the 1
st
of August. The purchase price was recently finalised at NZ $149m
comprising $128m of net tangible assets and $41m of net debt. This excludes NZ $20m in
excess working capital which will be reduced that will be funded by a deferred settlement
in 1H calendar 2023.

Ullrich Aluminium includes 41 sales units across Australasia and an extrusion plant in each
country. Aluminium and stainless steel have a large number of shared customers which will
enable Vulcan over time to increase our customer numbers by leveraging a much larger
sales unit network through our well established hybrid unit model. The Metals division will
now include aluminium and will have a similar annualised revenue to the Steel division.

Vulcan’s 1Q FY 23 earnings performance has been consistent with the company’s FY23
guidance range at our FY22 result in August.

Our new Aluminium business made a positive earnings contribution in the first two months
following our acquisition on 1 August.

Based on our 1Q trading outcome, we reaffirm our full year EBITDA guidance of NZ$215m -
NZ$235m. We expect the conditions we experienced in 1Q FY23 to continue due to the
impact of rising interest rates on general economic activity following a record FY22. Our
team is fully engaged in optimising earnings through volume, margin and cost efficiency
management. We remain positive on the opportunities ahead in our aluminium business.

ANNUAL MEETING OF SHAREHOLDERS
20 OCTOBER 2022

Welcome
Our ambition is driven by our unparalleled dedication to continuous improvement. These past two years
have demonstrated how our willingness to capitalise on opportunities and take considered risks over time,
reaps rewards. We are always looking ahead and know that embracing change – the only constant in life –
is fundamental to advancement and increasing value for all stakeholders. Our growth over time speaks for
our record of reliability and our mindset of constantly raising the bar on performance.
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Agenda
02
01
04
03
05
06
07
Chair Address
Short video
Q&A
Managing Director and
Chief Executive Officer Address
Resolutions for approval
Voting
General Business
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Link Market Services helpdesk
New Zealand – 0800 200 220
Australia – 1800 990 363
Voting & Asking Questions
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Adrian Casey
CHIEF OPERATING OFFICER
AND EXECUTIVE DIRECTOR
Peter Wells
NON-EXECUTIVE DIRECTOR
Your Board of Directors
Russell Chenu
CHAIR AND INDEPENDENT
NON-EXECUTIVE DIRECTOR
Rhys Jones
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
Pip Greenwood
INDEPENDENT NON-EXECUTIVE DIRECTOR
Carolyn Steele
INDEPENDENT NON-EXECUTIVE DIRECTOR
Bart de Haan
INDEPENDENT NON-EXECUTIVE DIRECTOR
Wayne Boyd
NON-EXECUTIVE DIRECTOR
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Your Leadership Team
Russell Chenu
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
Kar Yue Yeo
CHIEF FINANCIAL OFFICER
Adrian Casey
CHIEF OPERATING OFFICER
James Wells
CHIEF INFORMATION OFFICER
Sarah-Jane Lawson
COMPANY SECRETARY
Helene Deschamps
LEADERSHIP DEVELOPMENT
Brendon Chandulal
AUSTRALIAN LEADER
Matthew Lee
AUSTRALIAN LEADER
Bradley Childs
AUSTRALIAN LEADER
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Video
Working at Vulcan
01
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Agenda
02
01
04
03
05
06
07
Chair Address
Short video
Q&A
Managing Director and
Chief Executive Officer Address
Resolutions for approval
Voting
General Business
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Chair
Address
Russell Chenu
02
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Chair Address
• Completed our public listing with an initial market
capitalisation of almost NZ$1 billion
• A Record Result in FY22
• FY22 Dividend: NZ$0.65 per share
• Further executed on our growth strategy with the
completion of Ullrich Aluminium acquisition
• Board update
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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FY22 Dividend Yield based on IPO Price
• Vulcan’s annual dividend is based
on a current target payout ratio of
60-80% on statutory net profit after
tax adjusted for significant items
approved by the Board.
Per share (excluding franking and imputation)NZ$A$AUD/NZD rate
Interim
0.27500.25671.071352
Final
0.37500.32781.143903
Total0.65000.5845
Per share (including franking and imputation)NZ$A$ImputationFranking
Interim
0.38190.2567100%0%
Final
0.49170.468380%100%
Total0.87360.7250
IPO Price
7.527.10
Yield based on IPO price
Nominal Dividend Yield
8.6%8.2%
Gross Dividend Yield (incl tax credits)
11.6%10.2%
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Vulcan’s Share Price Performance
• VSL share price: +31% vs Peer & +11% vs S&P/ASX 300 since IPO
1. Data based on closing prices as at 11 October 2022. 2. Company share prices included in Median of Peer performance: AdBri, Bapcor, Bluescope, Boral, CSR, Fletcher Building, GUD, GWA, James Hardie, Reliance Worldwide and Steel & Tube.
• VSL share price: +22% vs NZX 50 Gross Index since IPO
S&P/ASX 300 INDEX, VSL & PEERS PERFORMANCE
1
S&P/NZX 50 GROSS INDEX & VSL.NZ SHARE PRICE PERFORMANCE
1
VSL.AXS&P/ASX 300 IndexMedian of Peers
2
0
20
40
60
80
100
120
140
160
Oct-22
Sep-22
Aug-22Aug-22
Jul-22
Jun-22Jun-22
May-22
Apr-22
Mar-22Mar-22
Feb-22
Jan-22Jan-22
Dec-21
Nov-21Nov-21
VSL.NZS&P/NZX 50 Gross Index
0
20
40
60
80
100
120
140
160
Oct-22
Sep-22
Aug-22Aug-22
Jul-22
Jun-22Jun-22
May-22
Apr-22
Mar-22Mar-22
Feb-22
Jan-22Jan-22
Dec-21
Nov-21Nov-21
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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MD & CEO
Address
Rhys Jones
03
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Record Results in FY22
ADJUSTED EBITDA
1
up $110m from FY21
NZ$243m
ADJUSTED NPAT
2
up $77m from FY21
NZ$142m
ROCE
3
OFDEBT COVER
4
CASH CONVERSION
5
up 13% from FY21Adjusted for Ullrich acquisitionup 700 basis points from FY21
37% 1.4x
85%
REVENUE AT ALMOST
up 33% from FY21
NZ$1bn
1. EBITDA - Earnings before interests depreciation and tax. 2 NPAT - Net profit after tax. 3. ROCE - Return on Capital Employed. 4. Debt cover: Net debt to pre-IFRS 16 EBITDA. 5. IFRS 16 - International Financial Reporting Standard 16 relates to accounting for operating leases. 6. Cash Conversion: (EBITDA - capital expenditure) / EBITDA
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022
15
Our new Aluminium
Business
• Aluminium is a segment identified on our roadmap
for growth
• Our acquisition of Ullrich Aluminium business across
Australia and New Zealand provides a strong
foundation for further earnings growth and
shareholder value creation
• Transaction was based on net tangible assets
of NZ$128m
• Final effective enterprise value was
NZ$149m including NZ$41m net debt
assumed
• Expected to be earnings per share
accretive in FY23
VULCAN.CO

VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022
16
Reaffirming Guidance
• Overall 1Q FY23 trading outcome is consistent with our
expectation and guidance
• Expect the conditions experienced in 1Q FY23 to continue
due to the impact of rising interest rates on general
economic activity following a record FY22
• The Vulcan team is fully engaged - optimise
earnings through volume, margin and cost
efficiency management
• Positive on the opportunities ahead
in aluminium
• Reaffirming FY23 EBITDA guidance of
NZ$215m - NZ$235m (compared
with NZ$243m recorded in FY22)
VULCAN.CO

Q&A
04
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolutions
for approval
05
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 1 - Auditor’s remuneration
• That the directors of Vulcan are authorised to fix the fees
and expenses of Deloitte Limited (New Zealand), as Vulcan’s
auditor, for the financial year ending 30 June 2023
• Proxies received:
For - 45,944,850 shares (34.9634%)
Open/Undirected - 14,333,775 shares (10.9078%)
Against - 31,029 shares (0.0236%)
Abstain - 5,279 shares (0.0040%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 2 - Election of Adrian Casey
• That Adrian Casey, who was appointed as a director
of Vulcan by the Board on September 2022, be elected
as a director of Vulcan
• Proxies received:
For - 40,091,361 shares (30.5089%)
Open/Undirected - 14,333,775 shares (10.9078%)
Against - 2,010,552 shares (1.5300%)
Abstain - 3,879,245 shares (2.9520%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 3 - Re-election of Wayne Boyd
• That Wayne Boyd, who retires as a director of Vulcan
by rotation and is eligible for re-election, is re-elected
as a director of Vulcan
• Proxies received:
For - 39,993,110 shares (30.4342%)
Open/Undirected - 14,334,475 shares (10.9083%)
Against - 2,121,304 shares (1.6143%)
Abstain - 3,866,044 shares (2.9420%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 4 - Re-election of Russell Chenu
• That Russell Chenu, who retires as a director of Vulcan
by rotation and is eligible for re-election, is re-elected
as a director of Vulcan
• Proxies received:
For - 45,831,937 shares (34.8774%)
Open/Undirected - 14,333,775 shares (10.9078%)
Against - 142,420 shares (0.1084%)
Abstain - 6,801 shares (0.0052%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 5 – Grant of performance rights
to the MD and CEO
• That, for the purposes of ASX Listing Rule 10.14 and for all
other purposes, the issue of 221,799 Performance Rights
to Vulcan’s Managing Director and Chief Executive Officer,
Rhys Jones, under Vulcan’s FY23 Long-Term Incentive Plan
and on the terms and conditions set out in the Explanatory
Notes be approved
• Proxies received:
For - 45,862,348 shares (34.9006%)
Open/Undirected - 14,333,775 shares (10.9078%)
Against - 111,263 shares (0.0847%)
Abstain - 7,547 shares (0.0057%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Resolution 6 – Grant of performance rights
to the COO and executive director
• That, for the purposes of ASX Listing Rule 10.14 and for
all other purposes, the issue of 55,309 Performance
Rights to Vulcan’s Chief Operating Officer and Executive
Director, Adrian Casey, under Vulcan’s FY23 Long-Term
Incentive Plan and on the terms and conditions set out
in the Explanatory Notes be approved
• Proxies received:
For - 45,860,973 shares (34.8995%)
Open/Undirected - 14,333,775 shares (10.9078%)
Against - 111,427 shares (0.0848%)
Abstain - 8,758 shares (0.0067%)
TOTAL - 60,314,933 shares of 131,408,572 shares (45.8988%)
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Voting
06
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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General
Business
07
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2022VULCAN.CO
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Thank-you for joining us.
VULCAN.CO