Steel & Tube 1H23 Interim Results

STEEL & TUBE HOLDINGS LIMITED
2023
HALF YEAR
REPORT

1
STEEL & TUBE HALF YEAR REPORT 2023
INTERIM
FINANCIAL
STATEMENTS
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2022
Contents
02 Interim Financial Statements
06 Notes to the Interim Financial Statements
12 Independent Review Report
These interim financial statements do
not include all the notes and information
normally included in the annual financial
statements. Accordingly, they should be
read in conjunction with the annual financial
statements for the year ended 30 June 2022.
1
STEEL & TUBE HALF YEAR REPORT 2023

2
STEEL & TUBE HALF YEAR REPORT 2023
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2022
Notes
Unaudited
December
2022
$000
Unaudited
December
2021
$000
Sales revenue3 315,326 282,187
Other operating income 238 1,112
Cost of sales2 (246,941) (217,756)
Operating expenses2 (4 7,1 6 2) (42,0 8 3)
Software as a Service (SaaS) upfront expenditure (1,068) (1,140)
Earnings before interest, tax and other gains and losses 20,393 22,320
Other (losses) / gains (49) 317
Earnings before interest and tax 20,344 22,637
Interest income 144 43
Interest expense (4,0 0 9) (2,67 1)
Profit before tax 16,479 20,009
Tax expense (4, 6 4 4) (5,672)
Profit for the period attributable to owners of the Company 11,83514,337
Items that may subsequently be reclassified to profit or loss
Other comprehensive loss - hedging reserve (783) (295)
Total comprehensive income 11,052 14,042
Basic earnings per share (cents) 7.1 8.7
Diluted earnings per share (cents) 7. 0 8.6
The accompanying notes form part of these financial statements.

3
STEEL & TUBE HALF YEAR REPORT 2023
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2022
Share
capital
$000
Retained
earnings
$000
Hedging
reserve
$000
Treasury
shares
$000
Share-
based
payments
$000
Total
equity
$000
Balance at 1 July 2022156,66954,770560(2 , 896)998210,101
Comprehensive income
Profit after tax - 11,835 - - - 11,835
Other comprehensive (loss) / income
Hedging reserve (net of tax) - - (783) - - (783)
Total comprehensive income - 11,835(783) - - 11,052
Transactions with owners
Dividends paid - (12,457) - - - (12,457)
Employee share schemes499 - - - 55554
Unaudited balance at 31 December 20221 5 7,1 6 854,148 (223) (2 , 896)1,053209, 2 50
Balance as at 1 July 2021156,6693 8,913403(2 , 896)663193,752
Comprehensive income
Profit after tax - 14,337 - - - 14,337
Other comprehensive (loss) / income
Hedging reserve (net of tax) - - (295) - - (295)
Total comprehensive income - 14,337(295) - - 14,042
Transactions with owners
Dividends paid - (5,460) - - - (5,460)
Employee share schemes - 349 - - (14 6)203
Unaudited balance at 31 December 2021156,66948,139108(2 , 896)517202,537
The accompanying notes form part of these financial statements.

4
STEEL & TUBE HALF YEAR REPORT 2023
BALANCE SHEET
As at 31 December 2022
Notes
Unaudited
December
2022
$000
Audited
June 2022
$000
Current assets
Cash and cash equivalents 7, 5 3 6 8,046
Trade and other receivables 69,608 9 0,9 7 1
Contract assets 9, 2 24 10,822
Inventories4 175,015 192,460
Derivative assets 33 1,491
261,416 303,790
Non-current assets
Deferred tax 7,1 0 6 7, 5 8 2
Property, plant and equipment 35,176 3 5 ,9 2 5
Intangibles 13,224 7,875
Right-of-use assets 74, 3 36 78,688
1 29,8 42 130,070
Total assets 391,258 433,860
Current liabilities
Trade and other payables 44,519 69,6 2 7
Borrowings5 40,000 51,000
Income tax payable 3,533 5,014
Provisions 520 767
Derivative liabilities 1,018 8
Short term lease liabilities 13,437 13,555
103,027 139,971
Non-current liabilities
Provisions 1,235 1,271
Long term lease liabilities 7 7, 74 6 82,517
78,981 83,788
Equity
Share capital 1 5 7,1 6 8 156,669
Retained earnings 54,148 54,770
Other reserves (2 ,0 6 6) (1,338)
209, 2 50 210,101
Total equity and liabilities 391,258 433,860
Susan Paterson ChairKaren Jordan Director
These financial statements and the accompanying notes were authorised by the Board on 14 February 2023.
For the Board:
The accompanying notes form part of these financial statements.

5
STEEL & TUBE HALF YEAR REPORT 2023
STATEMENT OF CASH FLOWS
For the six months ended 31 December 2022
Notes
Unaudited
December
2022
$000
Unaudited
December
2021
$000
Cash flows from operating activities
Customer receipts 3 3 7, 5 1 4 278,295
Interest receipts 144 42
Payments to suppliers and employees (287,584) (286, 3 76)
Payments for interest on leases (2 , 24 4) (2, 361)
Income tax payments (5,102) -
Interest payments (1,6 4 6) (202)
Wage subsidy received 58 988
Net cash inflow/(outflow) from operating activities 41,140 (9,614)
Cash flows from investing activities
Property, plant and equipment disposal proceeds 92 37
Property, plant and equipment and intangible asset purchases (2 , 280) (2,535)
Payment for new business purchase6 (8,90 9) -
Net cash outflow from investing activities
(11,097) (2,498)
Cash flows to financing activities
Net proceeds (repayment of)/from borrowings (11,000) 2,000
Dividends paid (12,457) (5,460)
Payment for leases ( 7, 0 9 6) (6, 247)
Net cash outflow from financing activities
(30, 553) (9,707)
Net decrease in cash and cash equivalents (510) (21,819)
Cash and cash equivalents at the beginning of the year 8,046 25,033
Cash and cash equivalents at the end of the period
7, 5 3 6 3,214
Represented by:
Cash and cash equivalents 7, 5 3 6 3,214
7, 5 3 6 3,214
The accompanying notes form part of these financial statements.

6
STEEL & TUBE HALF YEAR REPORT 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2022
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Steel & Tube Holdings Limited (the Company or Steel & Tube) is registered under the Companies
Act 1993 and is a FMC Reporting Entity under the Financial Markets Conduct Act 2013. The
Company is a limited liability company incorporated and domiciled in New Zealand. The Group
comprises Steel & Tube Holdings Limited and its subsidiaries. The Group’s principal activities
relate to the distribution and processing of steel products, fastenings and metal floor decking.
The registered office of the Company is 7 Bruce Roderick Drive, East Tamaki, Auckland 2013,
New Zealand.
These interim financial statements have been reviewed, not audited, and were approved for
issue on 14 February 2023.
These interim financial statements are presented in New Zealand dollars and rounded to the
nearest thousand.
Basis of preparation
The Group is a for-profit entity. The interim financial statements have been prepared in
accordance with, and comply with, New Zealand Generally Accepted Accounting Practice
(NZ GAAP). They comply with NZ IAS 34: Interim Financial Reporting, IAS 34: Interim Financial
Reporting, and the NZX Main Board Listing Rules (issued 17 June 2022).
These interim financial statements do not include all the information required for an annual
financial report and consequently should be read in conjunction with the audited financial
statements of the Group for the year ended 30 June 2022. Non-GAAP measures shown in the
interim financial statements are defined in the 2022 Annual Report.
These interim financial statements have been prepared using the same accounting policies and
methods of computation as the financial statements for the year ended 30 June 2022.
The preparation of the interim financial statements requires the exercise of judgements that affect
the application of accounting policies, the reported amounts of assets and liabilities, and income
and expenses. Where applicable and based on information available at the time of preparing the
interim financial statements, the Group has updated its judgements, estimates and assumptions
adopted since the audited financial statements of the Group for the year ended 30 June 2022.
These interim financial statements have been prepared on a going concern basis as the Group
will be able to discharge its liabilities including the repayment terms of the banking facilities
disclosed in Note 5.
The carrying value of all financial instruments approximates fair value. All financial instruments
are held at amortised cost, with the exception of derivative instruments which are accounted
for at fair value through profit or loss. The derivative instruments comprise forward foreign
exchange contracts, the fair value of which are calculated using forward exchange rates that are
quoted in an active market. All financial instruments accounted for at fair value through profit or
loss are classified as level 2 of the fair value hierarchy. The Group applies hedge accounting and
where derivative instruments are designated as hedging instruments in a cash flow hedge, fair
value gains/losses are recognised in other comprehensive income and released either to profit
or loss or the hedged item when the forecast transaction takes place.

7
STEEL & TUBE HALF YEAR REPORT 2023
2. EXPENSES
Unaudited
December
2022
$000
Unaudited
December
2021
$000
Cost of sales and operating expenses:
Inventories expensed in cost of sales 2 29,6 86 200,817
Impairment of trade and other receivables 278 236
Depreciation and amortisation 10,138 9, 2 98
Directors’ fees 325 253
Employee benefits 3 7, 3 2 5 36,343
Defined contributions plans 974 841
Information technology expenses 3,650 3,270
Foreign exchange gains(478) (81)
Short term and low value lease costs 143 159
Other expenses 12,062 8,703
Total cost of sales and operating expenses294,1032 59, 8 3 9
Inventory sold during the period is expensed as cost of sales. Depreciation of $823k (31 December
2021: $753k) related to equipment used to manufacture products is included in cost of sales.
Depreciation of right-of-use assets and other depreciation is included in operating expenses.
3. OPERATING SEGMENTS
The Group has identified two reporting segments as at 31 December 2022 having regard for
the criteria outlined in NZ IFRS 8 Operating Segments (NZ IFRS 8). The Group’s Chief Operating
Decision Maker (being the CEO) receives financial reports which aggregate the activities of
the Group’s various operating segments into two distinct divisions, being Distribution and
Infrastructure.
These reportable segments have been determined by having regard to the nature of products,
services and processes the various business units undertake to service customers. The Group
has a diverse range of customers from various industries, with no single customer contributing
more than 10% of the Group’s revenue.
The Group derives its revenue from the distribution and processing of steel and associated
products. Within the Distribution business, the primary focus is on the distribution of steel
products and fasteners, servicing similar customer groups, sharing similar business models
and trading skills, and using similar sales channels. The majority of product is traded and sales
staff are tasked to know the full range of products. Within the Infrastructure business, product
is predominately steel product which is bought and processed/ manufactured in warehouse
facilities for project/contract customers.

8
STEEL & TUBE HALF YEAR REPORT 2023
The CEO uses EBIT as a measure to assess the performance of segments. The segment
information provided to the CEO for the period ended 31 December 2022 is as follows:
December 2022
Distribution
$000
Infrastructure
$000
Other
$000
Reconciled
to Group
$000
Timing of revenue recognition
At a point in time191,643 75,677 14 2 6 7, 3 3 4
Over time - 4 7,9 9 2 - 4 7,9 9 2
Revenue from external customers191,643 123,669 14 315,326
Depreciation and amortisation(5,17 1)(3, 5 4 4)(1,423)(10,138)
Expenses(170,353)(115 ,9 0 0)1,409 (284,844)
Segment EBIT 16,119 4,225 - 20,344
Interest on leases (1, 331)(906)(7)(2 , 24 4)
Interest - others (net) - - - (1,621)
Reconciled to Group Profit Before Tax - - - 16,479
December 2021
Distribution
$000
Infrastructure
$000
Other
$000
Reconciled
to Group
$000
Timing of revenue recognition
At a point in time181,663 59, 5 6 2 5 241,230
Over time - 40,957 - 40,957
Revenue from external customers181,663 100,519 5 282,187
Depreciation and amortisation(4,95 1)(3, 324)(1,023)(9, 298)
Expenses
( 1 5 7, 3 1 9)(9 3 ,95 1)1,018 (250,252)
Segment EBIT 19, 393 3,244 - 22,637
Interest on leases (1, 388)(965)(7)(2 , 360)
Interest - others (net)(268)
Reconciled to Group Profit Before Tax20,009

Depreciation and amortisation recognised in the period is inclusive of depreciation recognised
under NZ IFRS 16 Leases, which is in line with the financial reports received by the CEO.
Interest recognised under NZ IFRS 16 Leases is shown separately in the financial reports provided
to the CEO. Other interest income and expense are not allocated to segments as these are
driven by the central treasury function, which manages the cash position of the Group.
Sales between segments are eliminated on consolidation. The amounts provided to the CEO
with respect to segment revenue are measured in a manner materially consistent with that of
the financial statements.

9
STEEL & TUBE HALF YEAR REPORT 2023
4. INVENTORY
The Group holds inventories valued at $175.0 million (30 June 2022: $192.5 million).
Goods in transit
Provision for
write-down
Finished goods
at cost price
169,268
9,601
(3,854)
$175,015
Dec 2022
171,818
24,214
(3,572)
$192,460
Jun 2022
5. BORROWINGS
The Group has in place committed bank borrowing facilities of $100m, comprising a three year
$80m Revolving Cash Advance Facility with an expiry date of 15 February 2024 and a $20m Trade
Loan facility with an expiry date of 15 February 2024. Borrowing facilities arranged with the
Group’s banking partner can be drawn at any time, subject to meeting the terms of the Group’s
Facility Agreement (31 December 2022: $40.0m drawn and 30 June 2022: $51.0m drawn).
As at 31 December 2022, the Group is compliant with all financial covenants.
6. BUSINESS COMBINATION
The Group accounts for business combinations when it obtains control of either an entity, or a
group of assets and liabilities which constitute a business. The Group controls an entity when it
is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
Acquisition of Kiwi Pipe and Fittings
On 1 August 2022, the Group acquired 100% control of the operations of Kiwi Pipe and Fittings
Limited, a well established specialist and successful provider of fire and reticulation products.
The acquisition is part of the Group’s strategy to selectively invest in high value products,
services and sectors. While the Group already offers a range of fire protection products to its
customers, bringing Kiwi Pipe into the fold makes it one of the larger suppliers in this market.
For the five months ended 31 December 2022, Kiwi Pipe contributed revenue of $2.6m and
earnings before interest and tax (EBIT) of $0.4m. If the acquisition had occurred on 1 July 2022,
Management estimates that Kiwi Pipe would have contributed revenue of $3.1m and EBIT of
$0.5m. In determining these amounts, Management has assumed that the fair value adjustments
that arose on date of acquisition would have been the same if the acquisition had occurred on
1 July 2022.

10
STEEL & TUBE HALF YEAR REPORT 2023
Consideration transferred
The consideration transferred in the acquisition is generally measured at fair value, as are the
identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any
gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are
expensed as incurred, except if related to the issue of debt or equity securities.
The total consideration transferred for the acquisition of the Kiwi Pipe business comprised of
cash paid of $8.9m. No other form of consideration was transferred.
Identifiable assets acquired and liabilities assumed
The following table summarises the fair values of assets acquired and liabilities assumed at the
date of acquisition:
$000
Inventories 3,180
Property, plant and equipment 134
Trade and other payables(28)
Customer relationships 862
Total identifiable net assets acquired 4,148
Goodwill recognised
Goodwill arising from the acquisition has been recognised as follows:
$000
Consideration paid 8 ,9 0 9
Fair value of identifiable net assets acquired 4,148
Goodwill recognised 4,761
The goodwill is mainly attributable to the skills and experience of Kiwi Pipe’s workforce and
the synergies expected to be achieved when combined into the Group’s business. None of the
goodwill recognised is expected to be deductible for tax purposes.
KEY JUDGEMENT - IDENTIFICATION AND VALUATION OF
IDENTIFIABLE ASSETS AND LIABILITIES
The Group has identified the assets acquired and liabilities assumed at acquisition date,
and measured these at their acquisition date fair values.
Management has applied judgement in relation to both identifying and valuing these
assets and liabilities; specifically in respect to the identification and measurement of
customer relationships. The fair value of customer relationships was measured using the
multi-period excess earnings method. This method considers the present value of net
cash flows expected to be generated by the customer relationships, by excluding any
cash flows related to contributory assets.

11
STEEL & TUBE HALF YEAR REPORT 2023
7. IMPAIRMENT TESTING
NZ IAS 36 Impairment of Assets (“NZ IAS 36”) requires the Group to assess for any indicators
of impairment at the end of each reporting period and also to test the recoverable amount of
the Group’s assets against its carrying value to assess whether there is any indication that an
asset may be impaired. The recoverable amount is the higher of an asset’s fair value less costs of
disposal and value-in use.
For the purpose of assessing impairment, assets are grouped in the smallest identifiable group
of assets that generates cash inflows that are largely independent of the cash inflows from other
assets or groups of assets (cash generating unit or CGU), which as at 31 December 2022 were
identified as being Distribution, Reinforcing/CFDL and Rollforming.
As at 31 December 2022, the Group has not identified any indicators of impairment over the
assets held at the CGUs. The Group’s market capitalisation is above net assets at period end and
accordingly provides evidence that the Group’s net assets value is supported.
The Group has therefore concluded that no impairment is required as at 31 December 2022.
The Group has also concluded that no reversal of the previous impairment of intangible assets
should be made following an assessment that previous assumptions applied remains consistent
in the current half-year.
8. RELATED PARTIES
The Company has related party relationships with its subsidiaries and with key management
personnel.
There have been no material changes in the nature or amount of related party transactions for
the Group since 30 June 2022.
9. SUBSEQUENT EVENTS
On 14 February 2023, the Board declared an interim dividend of 4.0 cents per share
(2022: 5.5 cents) totalling $6.7m (2022: $9.1m). The dividends will be fully imputed and will
be paid to shareholders on 6 April 2023.

12
STEEL & TUBE HALF YEAR REPORT 2023
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private
English company limited by guarantee. All rights reserved.
Independent Review Report
To the shareholders of Steel & T ube Holdings Limited
Report on the interim consolidated financial statements of Steel & Tube Holdings Limited (the ‘Company’)
and its subsidiaries (together the ‘Group’)
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 2 to 11
do not:
i.present fairly in all material respects the
Group’s financial position as at 31
December 2022 and its financial
performance and cash flows for the 6 month
period ended on that date; and
ii.comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the balance sheet as at 31 December 2022;
— the statements of profit or loss and other
comprehensive income, changes in equity and
cash flows for the 6 month period then ended;
and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Steel & Tube Holdings Limited, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review Report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the shareholders as a body for our review work, this report, or any of the opinions we have formed.

13
STEEL & TUBE HALF YEAR REPORT 2023
Responsibilities of the Directors for the interim
consolidated financial statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of interim consolidated financial statements
that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim
consolidated financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly, we do not express an audit
opinion on these interim consolidated financial statements.
This description forms part of our Independent Review Report.
KPMG
Auckland
14 February 2023

14
STEEL & TUBE HALF YEAR REPORT 2023
REGISTERED OFFICE
7 Bruce Roderick Drive, East Tamaki, Auckland 2013, New Zealand.
PO Box 58880, Botany, Auckland 2163, New Zealand
Ph: +64 4 570 5000 Fax: +64 4 569 2453
Email: info@steelandtube.co.nz
Website: www.steelandtube.co.nz
SHARE REGISTRY
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand
Ph: +64 9 488 8777 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz
AUDITORS
KPMG

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Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019



Results for announcement to the market
Name of issuer Steel & Tube Holdings Limited
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$315,326 11.7%
Total Revenue $315,326 11.7%
Net profit/(loss) from continuing
operations
$11,835 (17.5%)
Total net profit/(loss) $11,835 (17.5%)

Interim Dividend
Amount per Quoted Equity
Security
0.04000000
Supplementary dividend per
Quoted Equity Security
0.00705882

Imputed amount per Quoted
Equity Security
0.01555556

Record Date 23 March 2023
Dividend Payment Date 6 April 2023
Current period Prior comparable period
(31 December 2021)
Net tangible assets per Quoted
Equity Security
$1.17 $1.18
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Non-GAAP financial information
Steel & Tube uses several non-GAAP measures when
discussing financial performance. This includes normalised
EBITDA and normalised EBIT. 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.
Reconciliations of non-GAAP measures to GAAP measures
are detailed within this announcement.

Steel & Tube’s normalised EBITDA is $31.6m for 1H23
(1H22: $31.8m, 0.6% decrease) and normalised EBIT is
$21.5m for 1H23 (1H22: $22.5m, 4.4% decrease). Further
details on the unusual transactions/non-trading adjustments
are included in the investor presentation for the period ended
31 December 2022.
Definitions:
• EBITDA: This means earnings before interest, tax,
depreciation and amortisation and is calculated as profit
for the period before net finance costs, tax, depreciation
and amortisation
• Normalised EBITDA: This means EBITDA after
normalisation adjustments
• EBIT: This means earnings before interest and tax and is
calculated as profit for the period before net finance costs
and tax
• Normalised EBIT: This means EBIT after normalisation
adjustments
• Normalisation adjustments: These are transactions that
are unusual by size or nature in a particular accounting
period. Excluding these transactions can assist users in
forming a view of the underlying performance of the
Group. 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

Authority for this announcement
Name of person

authorised to
make this announcement
Mark Malpass
Contact person for this
announcement
Mark Malpass
Contact phone number +64 27 777 0327
Contact email address mark.malpass@steelandtube.co.nz
Date of release through MAP

15 February 2023

Unaudited financial statements accompany this announcement.

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Template
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Steel & Tube Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code STU
ISIN (If unknown, check on NZX
website)
NZSUTE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 23 March 2023
Ex-Date (one business day before the
Record Date)
22 March 2023
Payment date (and allotment date for
DRP)
6 April 2023
Total monies associated with the
distribution
1

$6,673,107

Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.05555556
Gross taxable amount
3
$0.05555556
Total cash distribution
4
$0.04000000
Excluded amount (applicable to listed
PIEs)
NIL
Supplementary distribution amount $0.00705882
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28.0%
Imputation tax credits per financial
product
$0.01555556


Resident Withholding Tax per
financial product
$0.00277778

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Richard Smyth
Contact person for this
announcement
Richard Smyth
Contact phone number 021 646 822
Contact email address Richard.smyth@steelandtube.co.nz
Date of release through MAP

15 February 2023





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

HY23 Results Presentation
For the six months ended 31 December 2022

Half year in review
•Solid demand for steel despite easing in activity across most sectors, infrastructure continues
to strengthen; 1H23 volumes decreased slightly although still ahead of 1H five-year average
•Supply chain constraints easing and international freight costs reducing towards end of
1H23
•Inflationary cost increases, higher interest rate environment, tight labour market
•Ongoing impact from Covid, particularly affecting absenteeism
•Focus has been on strengthening the balance sheet to support the business through the
economic cycle –reduction in net debt, inventory positions reduced, strong cashflows, cost
inflation management

3
Strong trading performance and resilient 1H23 results
Record revenue paired with strong earnings
Revenue
$315.3m
+11.7%
EBITDA
$30.5m
-4.4%
EBIT
$20.3m
-10.2%
NPAT
$11.8m
-17.5%
Volume
80,491t
-2.8%
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)
ROFE
13.8%
FY22: 14.6%
Normalised
EBITDA
$31.6m
-0.6%
Normalised
EBIT
$21.5m
-4.4%
•Customer demand
driving revenue
•Year-on-year uplift in
gross margin dollars
•Costs tightly managed
•1H23 interim dividend:
4 cents per share, 100%
imputed

4
Current market challenges and how we respond to them
Market Challenges OUR RESPONSES
FY23
Commodity price
volatility, some easing
•Continued investment in the right inventory
•Easing supply chain allowing reduced inventory cover
•Selling down lower margin inventory
•Focus on margin capture on existing inventory
Supply chain constraints•Face-to-face engagement with overseas suppliers
•Further operational optimisation
Tight labour market•Introduction of Steel & Tube Coaching and other programmes
•Leadership Contract training to all Senior Managers
•Continued focus on Wellbeing workshops including financial, mental and physical health
•Expanded investment in Māori Cadetship Programme
•Further investment in staff training
•All staff at or above the Living Wage from 31 December 2022
Inflation•Actively targeting cost inflation
Cashflow management•Focus on debtor collections
•Continuing to review debtor and creditor terms

5
Steel Pricing and Procurement
•Global demand moving to more normal growth trajectory: global demand for
steel, particularly in China, has cooled, however is expected to return to a more
normal growth trajectory as China relaxes Covid restrictions and invests in economic
stimulus
•Peak prices have moderated: for mills, the need to fill capacity has seen peak prices
recede during the half although in December and January international prices firmed
on a NZ dollars basis
•Price volatility reducing: product availability is no longer an immediate concern and
some of the price volatility has been reduced
•Steel pricing has stabilised above pre-Covid levels and pricing remains
competitive

6
Demand for steel continues despite challenging macro trends
Economic headwinds expected to lead to some moderation in activity in late FY23
2
3
4
2
3
5
6
8
Dec-18Dec-19Dec-20Dec-21Dec-22
SQM (000s)
No. Consents (000s)
Rolling 12months
Non-Residential Consents
ConsentsFloor Area
5
6
7
8
20
30
40
50
Dec-18Dec-19Dec-20Dec-21Dec-22
Rolling 12months
SQM (000s)
No. Consents (000’s)
Residential Consents
ConsentsFloor Area
20
40
60
Dec-18Dec-19Dec-20Dec-21Dec-22
Performance of Manufacturing
Index (PMI)
Source: Statistics New Zealand, BNZ –BusinessNZ PMI, Statistic NZ, NZIER
Steel & Tube is a diversified
business with limited
exposure to any one sector
50
100
150
200
Dec-18Dec-19Dec-20Dec-21Dec-22
Index (2010=100:sa)
Activity Index
Infrastructure Construction
Share of Sales
42%
39%
30%
31%
10%
11%
11%
10%
6%
5%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H23FY22
Others
Infrastructure
Engineering
Residential
Construction
Manufacturing
Commercial
Construction

7
Significant value from ’strengthen and grow’ strategies
•Clear strategic focus on continuing to strengthen the core and investing in high value
products, services and sectors for growth
•Recent growth investment into new products and services –fasteners, aluminium, plate
processing, fire and water reticulation products
•Continuing value from digital strategy and initiatives
•Programmatic M&A remains key part of growth strategy

8
Building a
sustainable
business
Continuing strength in key
metrics
Customer Satisfaction
NPS 40 (1H22: 38)
Employee Safety Measure
eTRIFR1.10 (1H22: 1.27)
Employee Engagement
Employee NPS 35 (1H22: 29)
Net Promoter Score (NPS): Measure of customer/employee satisfaction
Customer NPS industry average is 32 (1H22 restated based on a 3-month rolling basis to
be consistent with 1H23)
Employee NPS industry average is 18
Employee Total Recordable Injury Frequency Rate (eTRIFR): Employee safety measure
Long term business sustainability supported by
balance sheet strength through the economic cycle
with capacity for growth investment
Continued commitment to Quality, Health and
Safety with ongoing independent inspection
systems

9
Group financial summary
•Inventory reducing as supply chain headwinds
ease; inventory turns remained consistent
•Effective margin management with some
reduction as excess inventory moved at
reduced margin and input costs increase
•Opexincreases held in line with inflation
•Strong cashflows supporting reduction in net
debt
•1H23 dividend 4cps fully imputed –equivalent
to 1H22 dividend of 5.5cps which was
unimputed (for NZ tax payers)
$m1H23 1H22Var%
Revenue315.3282.211.7%
Volume (Ktonnes)80.582.8(2.8%)
EBITDA30.531.9(4.4%)
Normalised EBITDA*31.631.8(0.6%)
EBIT20.322.6(10.2%)
Normalised EBIT*21.522.5(4.4%)
NPAT11.814.3(17.5%)
Net operating cash flow41.1(9.6)528.1%
Dividend (cents per share)
4.0
Imputed
5.5
Unimputed
-
Delivered strong
1H23 results
* 1H23 and 1H22 Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments. Further details included in appendix to this
presentation.

10
Repositioned the business for
more challenging economic
cycle while investing in growth
Group Balance Sheet Summary
•Reduction in inventory as supply chain issues
ease
•Freeing up cash as inventory position reduced
•Disciplined management of working capital
•Reduction in debt with substantial bank facility in
place to fund growth
•Strong cashflows supporting strategic initiatives
•Delivered double-digit ROFE
•Continued reduction in net debt in January to
$25.9m
$m1H23FY221H22
Trade and other receivables78.9103.389.6
Inventories175.0192.5152.9
Trade and other payables(62.9)(89.0)(85.8)
Working Capital191.0206.8156.8
Total Facility 100.0100.050.0
Borrowings (40.0)(51.0)(2.0)
Available Facility / Undrawn60.049.048.0
Cash and cash equivalents7.58.03.2
Borrowings(40.0)(51.0)(2.0)
Net Cash/Debt(32.5)(43.0)1.2
Net Tangible Assets (NTA) 196.0202.2194.1
ROFE (%)13.8%14.6%11.7%

11
Record revenue
Momentum driven by strong focus on our
customers, trading disciplines and positive
market conditions
0
25
50
75
100
0
100
200
300
400
1H211H221H23
Tonnage (000’s)
Sales ($m)
Sales & Volume
SalesTonnage
Revenue $315.3m: Up $33.1m, +11.7%
Continuing sales momentum, despite market conditions
Volume 80.5Ktonnes: Down 2.3Kt, -2.8%
Sustained customer demand for comprehensive range of
products
0
1,000
2,000
3,000
4,000
5,000
0
100
200
300
400
1H211H221H23
Average selling price ($/t)
Sales ($m)
Sales & Average Selling price
SalesAverage selling price

12
Year-on-year growth in Gross Margin $/tonne
•Some margin reduction as excess inventory was
reduced
•Focus on fast moving inventory ensures minimal
margin squeeze as prices eased
•Increased input costs –operating expenses held
in line with inflation
•Strategic focus on higher margin products,
services and sectors
Gross margin includes freight, direct and sub-contract labour
Improvement in Gross Margin $/tonne
$623
$778
$850
1H211H221H23
Gross Margin $/tonne
20.3%
22.8%
21.7%
1H211H221H23
Trending Gross Margin

13
Business Performance
Increases across both divisions
Distribution –high volume business
•Solid performance despite market conditions
•Benefiting from inventory management, pricing and
supply chain disciplines
•Expect margins to improve longer term
Infrastructure –processing products before sale
•Business driven by tight margin and cost management
•Risk reduction –focus on supply only projects
•Transitioned to projects where capability can be
leveraged; solid pipeline of work from new tenders;
some large projects delayed into 2H23
Distribution1H231H22
% of Group
revenue
60.8%64.4%
Revenue$191.6m$181.7m
Gross Margin22.5%24.8%
Infrastructure1H231H22
% of Group
revenue
39.2%35.6%
Revenue$123.7m$100.5m
Gross Margin19.6%18.3%
Gross margin includes freight, direct and sub-contract labour

14
Normalised operating expenses
Ongoing focus on operating expenditure
•Normalised operational costs as a percentage of sales
continues to decline
•Continued efficiencies have resulted in network
leverage and led to a reduction in carbon emissions
Increase in 1H23 normalised operating expenses of
$4.3m
•Inflationary pressure –wage/salary and property
•Increased depreciation –mostly growth related
Normalised Opex excludes Holiday Pay provisions/reversal, as well as non-trading adjustments previously reported
38.2
42.9
47.2
10%
15%
20%
0
20
40
60
1H211H221H23
$m
Normalised Opex
Normalised Opex
Opex/Sales%

15
Pricing benefits
offset by inflationary
pressures
1H22 Normalised EBIT
Volume
Pricing Mix
1H22 Wage Subsidy
Depreciation Expense
Net Cost Escalations
1H23 Normalised EBIT
•Focus on higher value products,
ensuring inventory availability for
key clients
•Improved pricing disciplines,
leveraging digital capabilities and
analytics
•1H23 Normalised EBIT $21.5m;
reported EBIT $20.3m
NormalisedEBIT has been adjusted to exclude non-trading adjustments. Further details included in
appendix to this presentation.

16
Inventory management
Managing inventory levels carefully to
ensure best use of working capital
•Inventory levels increased in FY22 in response to
supply chain issues and to ensure product
availability for key customers
•Higher inventory positions now being reduced -
25% reduction in volumes (tonnes) on hand
during 1H23
•Unit prices remain at elevated levels
•Inventory turns (unit and tonnes) have remained
consistent with prior periods
•Use of detailed analytical tools to ensure
investments are made in higher margin products
•Focus on reducing lower margin products
Opening Inventory
Pricing
Strategic Initiatives
Inventory Optimisation
Supply Chain Improvements
Closing Inventory

17
Cashflow
•Strong cash inflows reflecting
increased revenues
•Decrease in inventory on hand as
supply constrains ease
•Dividends of $12.5m paid during
1H23
Opening Net Debt
EBITDA
Decrease in Inventory
Acquisition payment
Other working capital
movement/timing
Dividend
payments
Capex payments
Lease/ROU payments
Closing Net Debt

18
Capital Expenditure
Careful management of funds in current environment
•1H23 capex of $2.3m (1H22: $2.6m)
•Capital spend reduced below depreciation levels
•Priority capital allocation to projects supporting
digital (43%) and business improvement/growth
(57%)
Planned Investment for FY23
•Investment in processing equipment and other
growth opportunities
•Continued investment in digital technology
•Increased cashflow will support capital investment
programme
* FY21 capex hasbeen restated for the impact of a change in accounting policy in relation to the accounting for Software as a Service arrangements (“SaaS”)
** FY20 capex has not been restated for the impact of SaaS
***Depreciation and amortisation excludes right-of-use asset depreciation
0
2
4
6
8
10
0
2
4
6
8
10
FY20**FY21*FY221H23
$m
Capital Expenditure

19
Moving
Forward

20
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
OUR PURPOSE: To make life easier for our customers needing steel solutions

21
Strategic pathway: 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
✓
Expand steel framing
✓
Build niche market share through Kiwi Pipe & Fittings
✓
Build high value product range via acquisition of Fasteners NZ
✓
Accelerate shift to digital sales
✓

22
•Steel & Tube has entered the aluminium market in a
selected range of high demand products largely
servicing existing customers
•Focus on high value products
•Aligned to Steel & Tube’s capabilities and completes
our steel and metals offer to customers
•Diversification provides scale, customer share of
wallet growth and is immediately earnings accretive
•Initial entry is focused on a tight core range,
targeting existing customer base
•Launch stock delivered in February with further
stock purchases arriving through the remainder of
the year
32
New growth investment
Aluminium offering

23
•Integration in line with expectations
with business operating on Steel &
Tube systems
•Solid forward workload in the
pipeline
•Continued growth in customers and
earnings
•New product range extensions
supporting growth
•New high specification Plate
Processing & Press Brake installed
•Earnings momentum building with
further expansion plans in progress
Plate ProcessingKiwi Pipe & Fittings
Recent growth initiatives: Reporting back
Fasteners NZ
32
STRENGTHENING THE COREPROGRAMMATIC M&A

24
2H23 Market Outlook
Challenging macro trends expected to continue; following prolonged ‘super cycle’,
steel demand is now expected to moderate
Trading conditions:
•Challenging macro trends expected to continue –inflation and higher interest rates,
tight labour market and the ongoing impact from Covid
•Following prolonged ‘super cycle’, steel demand is now expected to moderate;
easing activity already occurring in residential construction
•Steel pricing stabilising above pre-Covid levels during 1H although in December and
January international prices have firmed in NZ dollars

25
2H23 Business Outlook
Steel & Tube is well positioned to respond to the changing environment and to take
advantage of new market and product opportunities
Business Outlook:
•Wet weather has impacted demand in January and February, particularly in construction and
infrastructure
•We remain focussed on our customers and have a healthy pipeline of infrastructure and
commercial projects in place; manufacturing remains steady
•Strong balance sheet and cashflows to support growth initiatives; focus remains on gross
margin $/tonne and actively managing costs
•Business growth to continue through organic expansion and programmatic smaller M&A
•Further strategic initiatives expected to be reflected in results from FY24 onwards

Discussion

27
Non-GAAP Financial
Non-GAAP financial information: Steel & Tube uses several non-
GAAP measures when discussing financial performance. These
include NormalisedEBITDA, 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 1H23 (6 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 31
December 2022 (6 months) and 31 December 2021 (6 months)
reconcile to normalised earnings. Non-trading adjustments of $(1.1)
million are included in the 1H23 (6 months) results.
Period ended 31 December
$000s
1H23
1H22
1H23
1H22
Reported
30,482
31,935
20,344
22,636
Loss on de-recognition of finance lease receivable
181


-
181


-


IFRS 16 impairment reversal
(113)
(374)
(113)
(374)
Release of holiday pay provision
-


(854)
-


(854)
Software as a Service (SaaS) upfront expenditure
1,068


1,140
1,068


1,140


Normalised
31,618
31,847
21,480
22,548
EBITDA
EBIT

28
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 organization
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
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

29
•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

---

15 February 2023
STU / NZX ANNOUNCEMENT


7 Bruce Roderick Drive, East Tamaki, 2013, Auckland PO Box 30543, Botany, 2163, Auckland
P 04 570 5000 F 04 570 2453 www.steelandtube.co.nz


STEEL & TUBE FY23 HALF YEAR RESULTS
Steel & Tube delivers record first half revenue and strong earnings
Steel & Tube Holdings Limited (NZX: STU) has reported its unaudited interim results for the six
months to 31 December 2022, with a second consecutive record first half revenue result and
continued strong earnings.
$m

1H23

1H22

Change

Revenue

315.3

282.2

11.7%

EBITDA

30.5

31.9

(4.4%)

Normalised EBITDA*

31.6

31.8

(0.6%)

EBIT

20.3

22.6

(10.2%)

Normalised EBIT*

21.5

22.5

(4.4%)

NPAT

11.8

14.3

(17.5%)

Net operating cashflow 41.1 (9.6) 528.1%
Total dividends (CPS) 4.0 Imputed 5.5 Unimputed -
* 1H23 and 1H22 Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments.
Further details included in appendix to the Results Presentation.
Solid demand for steel continued in 1H23 despite easing in activity across most sectors,
infrastructure continues to strengthen and has a long pipeline of projects underway. Supply chain
constraints started to lift with international freight costs reducing towards the end of 1H23. Steel
prices started to recede during the half although in December and January international prices
firmed on a NZ dollars basis. Macro-economic headwinds, including inflation, a higher interest rate
environment, a tight labour market and the ongoing impact from Covid, continue to provide
challenges.
Further actions have been taken during the period to strengthen the business, particularly the
balance sheet, with the Company reporting a reduction in net debt, a reduced inventory position,
strong cashflows and focus on management of cost inflation.
Steel & Tube is seeing significant value from its ‘strengthen and grow’ strategies. Recent strategic
investments – the expansion of plate processing and the acquisition of Kiwi Pipe & Fittings and
Fasteners NZ – are delivering to plan and are in line with the Company’s focus on higher value
products and services in existing or adjacent sectors.
From February 2023, Steel & Tube has also entered the aluminium market with a select range of
high demand, high value products, largely servicing existing customers. This product diversification
provides scale, customer share of wallet growth and is immediately earnings accretive. With a strong
balance sheet, Steel & Tube is well capitalised to continue its growth investments.
Revenue for the six months was a record $315.3m, up 12% on the prior comparative period (pcp).
Volumes were slightly below prior year, with sustained customer demand continuing for a
comprehensive range of products.
Earnings were down slightly on pcp as margin improvement was offset by inflation and depreciation.
A focus on margin management and fast moving inventory has minimised margin squeeze. Gross

margin was 21.7% with gross margin dollars per tonne increasing to $850 per tonne. Pleasingly,
normalised operational costs as a percentage of sales continued to decline. EBITDA for the period
was $30.5m with EBIT of $20.3m.
Inventory increased in FY22 to support customers through a period of supply chain constraints. This
position is now being reduced as supply chain headwinds ease. Inventory turns (unit and tonnes)
have remained consistent with prior periods.
Steel & Tube’s balance sheet remains strong with reduced net debt, down to $32.5m as at 31
December 2022, from $43m in FY22, with strong cashflows supporting strategic initiatives. The
company has a substantial bank facility in place to fund growth.
The Board is pleased to declare a 1H23 fully imputed dividend of 4 cents per share, equivalent to the
1H22 unimputed dividend of 5.5 cps (for NZ tax payers).
Outlook
Steel demand is expected to moderate as economic conditions impact on businesses and across a
broad range of sectors. Activity in January and February 2023 has been impacted by wet weather,
impacting construction and infrastructure projects.
Steel & Tube is focused on its ‘strengthen and grow’ strategies – continuing to strengthen the core
of the business and growing in high value products, services and sectors to drive gross margin dollar
improvement. Business growth will continue through organic expansion and smaller programmatic
acquisitions. Further strategic initiatives are expected to be reflected in results from FY24 onwards.
CEO of Steel & Tube, Mark Malpass, commented: “Following the recent ‘super cycle’, we are well
positioned to respond to moderating demand. We have a strong balance sheet and cashflows, and
are actively managing costs and margins per tonne. Customer and employee satisfaction remains at
high levels and we are a preferred supplier for projects large and small across a diverse range of
industries. Our recent growth investments are performing well and we are continuing to assess new
opportunities that complement our existing business and provide growth pathways.”
Results call
The Company is hosting an Investor and Analyst Call today at 10am to discuss the half year result.
Access details for the call can be viewed here https://www.nzx.com/announcements/405268.
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