Steel & Tube Shareholder Newsletter December 2022

SHAREHOLDER
NEWSLETTER
December 2022

2022/23 marks Steel & Tube’s 70th year of
trading and our 55th year as a listed company.
We were delighted to commemorate this
milestone recently with the NZX and have
plenty more activities planned over the next
12 months as we celebrate our history and the
future for our company.
We were honoured to be announced as a finalist
in the recent 2022 Deloitte Top 200 Awards
for Most Improved Performance. This award
recognises a significant improvement in business
performance and is credit to the fantastic Steel &
Tube team who contribute every day to our aim
of making life easier for our customers.
Our goal is to run our business in a way that
has a positive impact on our customers, our
staff and our communities, as well as building
a strong foundation for the future. The results
of the work we’ve been doing to transform
Steel & Tube are now clear - from our industry
leading digital solutions to the investment
we make in our people and the breadth and
quality of our steel products and services. We
are always looking for ways to improve and be
even better.
DEAR SHAREHOLDER
KIA ORA, TĒNĀ KOUTOU
Steel & Tube’s CEO Mark Malpass,
Chair Susan Paterson and Director Andrew Flavell,
celebrating the company’s 55th listing anniversary
on the NZX.

TRADING UPDATE
The strong demand for steel we have seen
over the last two years has continued into the
first half of our FY23 financial year, despite
challenging macro trends, including higher
interest rates, increased labour costs and
elevated steel pricing.
Infrastructure and commercial construction
have long pipelines in place and manufacturing
has been steady. We expect to see continued
easing in residential construction, which
comprises around 11% of our sales revenue.
Our diversification across a range of sectors
is of value in this environment and mitigates
the risks of any one sector. Pleasingly, we have
seen supply chains freeing up and international
freight costs are starting to reduce. We are
managing our inventory levels carefully to
ensure the best use of our working capital.
Steel & Tube is well positioned to respond
to the changing environment and to take
advantage of new market and product
opportunities. We have a solid foundation,
a clear strategy and are a leading supplier
in a market with strong demand.
We remain focused on our growth pathways -
continuing to strengthen our core foundation
and investing in higher value products,
services and sectors to drive gross margin
improvement. The investments we made
in the past six months in expanded plate
processing and the acquisition of Kiwi Pipe
and Fittings are delivering value, with robust
demand for these new offerings.
WHAT MATTERS
We are committed to doing the right thing
and doing things right. There are several
stand out areas that we see as critical for our
continued long term success – maximising
steel’s contribution to a sustainable and low
emission society, supporting our people
and customers, and delivering value to our
shareholders. We believe decarbonisation
provides a strong competitive advantage and
are actively looking at ways to deliver lower
carbon solutions for our customers.
We recently adopted ESG World, an online
platform which allows us to provide
shareholders and other stakeholders with
ready access to information on Steel & Tube’s
Environmental, Social and Governance
practices. In this newsletter we’ve provided
some quick snapshots of some of the ESG
initiatives we have underway in each of our
five pathways which are focused on our
customers, our people, technology, service
and operational efficiency.
As always, we welcome feedback from our
shareholders. Thank you for your continued
support.
Find out more:
Susan Paterson, Chair
Mark Malpass, Chief Executive Officer
COMPANY UPDATE
• Email: sustainability@steelandtube.co.nz

SUSTAINABILITY
ACROSS STEEL & TUBE
ACROSS THE GROUP, FROM THE
GROUND UP
From the ground up, the small things can make a big difference.
We’re looking at all areas of our business, to see how we can
improve. Here’s just a few of the things we are doing across
our facilities to improve our environmental footprint. These
initiatives also help to reduce our operating costs and create a
more comfortable workplace for our team:
Switching to LED lights – which automatically turn off on
bright sunny days
Regularly wash our roofs to improve natural light
Investment in improved sweeping equipment to reduce
airborne dust
Reuse and recycling of packaging and pallets
Mixed and soft plastics recycling on site
We also recycle batteries, steel scrap and printer
cartridges
REDUCED WASTE WITH NEW
KINETIC MACHINE
Not only does Steel & Tube’s new top of the line Kinetic
plate processing machine deliver substantial operating and
productivity benefits, it also reduces waste, minimises fumes
and has a lower energy consumption.
A closed chip extraction system maximises chip collection
for recycling, while travelling dross bins collect dross, chips
and waste from underneath the machine, leaving no wastage.
This waste is collected, processed domestically and shipped
internationally to the highest bidder for re-use.
In addition, the Kinetic’s high performance downdraft table
minimises smoke and fumes, and the low energy rating helps in
reducing operating costs.
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SUPPORTING OUR LOCAL
COMMUNITIES
The Tamaki Estuary is a large water catchment
area in Auckland and is recognised by the
Department of Conservation as a regionally
important wildlife habitat and an Area of
Significant Conservation Value.
Several of Steel & Tube’s Auckland facilities
are within the catchment area and, as such,
we have committed to supporting the Tāmaki
Estuary Protection Society (TEPS). The Society
works to improve the biodiversity and water
quality of the Estuary so it can once more
support its bird and aquatic life and grow in its
rich biodiversity, for all to value and enjoy.
In addition to donating to the work that
TEPS do, we look forward to becoming
more involved in future volunteer days.
We consider ourselves stewards of the local
environment and have stringent onsite
compliance. We undertake regular drain
management and cleaning at our facilities
to protect adjacent environments, such
as Tamaki Estuary.
https://teps.org.nz/
STEEL & TUBE ON
TRACK TO ACHIEVE
ENVIRONMENTAL AND
SAFETY & HEALTH
STANDARDS
Steel & Tube is ISO 9001 accredited,
which is an internationally
recognised standard that indicates
the organisation has active quality
management in place. We are now
on track to achieve accreditation
for ISO 14001 Environmental and
45001 Occupational Safety & Health
standards. Once final audits are
completed, Steel & Tube will have full
certification of three key standards,
providing assurance that quality,
environmental, health and safety
processes and systems are effective.
In addition, we have recently
received accreditation for our Savill
Drive testing laboratory under
the International Accreditation
New Zealand Mechanical Testing
Laboratory Accreditation Programme.
This is a major achievement for the
company and further reinforces Steel
& Tube’s quality focus.

The work of Lloyd’s Register has been
instrumental in allowing Steel & Tube to
continue upholding the standards we
require from our suppliers, particularly
during a time in which international travel
was restricted.
Better yet, Lloyd’s Register goes beyond
quality to include governance and social
responsibility aspects to ensure we are only
purchasing from heavily vetted suppliers
who are upholding their corporate and
social responsibilities.

Michael Palmer, Steel & Tube National Quality Manager
The Sustainable Business Council (SBC)
mobilises New Zealand’s most ambitious
businesses to build a thriving and
sustainable future through climate action,
leadership and a just transition.
Steel & Tube is pleased to be a member of
the Sustainable Business Council, an inspiring
group of New Zealand businesses accelerating
transformation to a low carbon economy. We
believe that businesses can make a difference
– our actions matter. At Steel & Tube, we are
on a journey to improve our sustainability
performance, taking incremental steps and
actions that will be of benefit for our future.
MEMBERSHIP OF THE SUSTAINABLE BUSINESS
COUNCIL NZ
Steel & Tube’s Group Sustainability Manager,
Trent Brash, is now a Green Star Practitioner.
Green Star is a certification for new buildings
run by the New Zealand Green Building
Council. A rating of up to 6 stars is awarded
to buildings based on their environmental
credentials and the overall impact of the
project’s design and construction. Green
Star ratings reward commercial projects of all
types that promote lower-carbon, healthy,
sustainable developments.
Becoming a Green Star Practitioner recognises
a commitment to green building practice
and knowledge leadership in this area. It also
provides a pathway to becoming a Green
Star Accredited Professional which allows
individuals to act as core members of a Green
Star project team and to make high-quality
submissions.
Steel & Tube provides materials for a number of
Green Star projects each year and our in-house
expertise ensures that customers have access
to steel-specific guidance when completing
their Green Star assessments.
GROUP SUSTAINABILITY MANAGER BECOMES GREEN
STAR PRACTITIONER
Every year, Lloyd's Register performs independent third-party supplier mill assessments
on behalf of Steel & Tube, across Asia Pacific and Europe, including New Zealand.
These audits cover a wide range of topics that Steel & Tube considers important. This includes
quality management, factory operations and control, health and safety, sustainability and
labour practices such as modern slavery and working conditions.

• Face to face sales induction workshops
have been launched to support those new
to sales roles
• Leadership Contract training workshops
have also been conducted for 80 leaders
across the organisation. This is a global
programme to help leaders better
understand the principles of accountable
leadership
• Steel & Tube’s comprehensive suite of
on-line training programmes continue to
be used by the team for everything from
product specialist knowledge and digital
security through to business skills such as
project management and excel
• Wellbeing workshops continued as a
popular feature through the year, with
special emphasis on education in finances,
health and mental wellbeing – such as
Women and Men’s Health, Mental Fitness
and Christmas Finances. The workshops
are hosted by leading experts in their field
and are open to all Steel & Tube employees
and their friends and families.
IN PERSON TRAINING SESSIONS BACK
AFTER TWO YEARS
After two years of on-line training only, in person workshop sessions have
recommenced with gusto:
GETTING THE FREE JAB!
Like most business, the winter flu season can
have an impact on our operations, particularly
in smaller regional branches where two or
three people on sick leave can have a bigger
effect. The value of our centralised customer
excellence centre becomes ever more obvious
in situations such as this, allowing us to
reallocate resources and continue delivering
high levels of customer service.
To help keep our team healthy, every year,
we offer our employees a free flu jab. This
winter, approximately 40% of Steel & Tube’s
workforce took up the free offer.
HEALTH AND WELLBEING HAS BEEN FRONT
OF MIND FOR OUR TEAM AND WE HAVE
SUPPORTED MENTAL HEALTH AWARENESS
WEEK AS WELL AS MOVEMBER IN RECENT
MONTHS. IN ADDITION, OUR POPULAR
EDUCATION SESSIONS HAVE BEEN FOCUSED
ON HEALTH AND WELLBEING, WITH ALL
TEAM MEMBERS, AS WELL AS THEIR FRIENDS
AND FAMILY, INVITED TO WELLBEING
SESSIONS, HOSTED BY LEADING HEALTH
EXPERTS IN NEW ZEALAND.
KEEPING OUR
TEAM HEALTHY

OUR LONG TERM AIM
IS TO OPERATE OUR
BUSINESS IN A WAY
THAT IS FINANCIALLY
REWARDING FOR
OUR SHAREHOLDERS
& POSITIVE FOR
OUR PEOPLE,
OUR CUSTOMERS,
OUR COMMUNITIES &
THE ENVIRONMENT
OUR FOCUS AREAS
Doing everything we can
to make it easy for our
customers to do business
with us
To make life easier for our customers
needing steel solutions
OUR PURPOSE
CUSTOMER
Preferred supplier for steel
solutions and products
GROWTH
Increase value through
organic growth and
programmatic smaller M&A
SHAREHOLDER
Deliver increasing value and
returns for our shareholders
STRATEGIC GOALS
Using technology and
great thinking to pull it
all together and enable a
better business
OUR STRATEGY
Providing a one-stop-shop for
the most essential steel products
– from foundation to roof and
everywhere in between
Building one great team right across Steel & Tube
Building on strong
foundation to strengthen
the core
Growth in high value
products, services and
sectors
BUILDING ON MOMENTUM
TO CREATE A MARKET
LEADING BUSINESS
Always looking for ways to work smarter

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