Vulcan Steel Forsyth Barr Investor Day 2023 Presentation

Vulcan Steel Limited
29 Neales Road East Tamaki Auckland New Zealand
e: investor@vulcan.co | w: vulcan.co
Vulcan Steel Limited (Vulcan), ASX: VSL, NZX: VSL

ASX/NZX Release

5 April 2023

Vulcan to present at the Forsyth Barr Investor Conference
Please find attached a copy of Vulcan’s presentation for the Forsyth Barr Investor
Conference at Eden Park (The Grand Hall, North Stand) in Auckland, on Wednesday,
5 April 2023.
Vulcan’s presentation is scheduled to commence at 2:00pm NZ time (12:00pm AEST).

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

About Vulcan
Founded in 1995, Vulcan is an Australasian-wide industrial product distributor and
value-added processor with 72 logistics and processing facilities employing 1,440 staff
across the company’s Steel and Metals divisions.

FORSYTH BARR INVESTOR DAY 2023

The material contained in this document is a presentation
of information about Vulcan Steel Limited’s (“Vulcan”)
activities current as of 5 April 2023.
It is provided in summary form and does not purport
to be complete. It should be read in conjunction with
Vulcan’s periodic reporting and other announcements
lodged with the Australian Securities Exchange (ASX)
and New Zealand Stock Exchange (NZX).
This document contains projections and other
forward-looking statements, current intention, opinion
and predictions regarding the Company’s present
and future operations, possible future events and
future financial prospects. These represent Vulcan’s
assumptions and views, including expectations and
projections about Vulcan’s business, the industry in
which it operates and management’s own beliefs
and assumptions. While these statements reflect
expectations at the date of this document, they are,
by their nature, not certain and are susceptible to
change. Such matters require subjective judgement
and analysis and may be based on assumptions
which are incorrect.
They may also be based on factors which are subject
to significant uncertainties and contingencies which
may be outside the control of Vulcan and are provided
only as a general guide or statement and should
not be relied upon as an indication or guarantee
(expressed or implied) of future performance. Except
as required by applicable law or the ASX and NZX
Listing Rules, Vulcan disclaims any obligation or
undertaking to publicly update such forward-looking
statements.
This document is not intended to be relied upon as
advice to investors or potential investors and does not
take into account the investment objectives, financial
situation or needs of any particular investor.
Unless otherwise stated, financials (including
comparatives) reflect the adoption of IFRS 16 Leases.
This presentation contains non-IFRS financial
measures to assist readers of this document to assess
the underlying financial performance of Vulcan.
The non-IFRS financial measures in this presentation
were not subject to a review or an audit by Deloitte.
Disclaimer
2
VULCAN.COFORSYTH BARR INVESTOR DAY 2023

Agenda
02
01
04
03
05
Overview
Introduction
Outlook & Guidance
Financials
Q&A
3
VULCAN.COFORSYTH BARR INVESTOR DAY 2023

Introduction
01
4
VULCAN.COFORSYTH BARR INVESTOR DAY 2023

Vulcan is an industrial distributor and processor of steel and metal products across Australia and New Zealand
Introduction
1. Based of Vulcan closing share prices on the NZX, respectively, as at 22 March 2023.
2. Significant items included offer costs and founder share gift to employees.
Vulcan’s Total Shareholder Return
since listing
On NZ Dollar basis, our market capitalisation
has risen by 11% (NZ$105m) from NZ$976m to
NZ$1.08bn
1
.
In addition, since our listing we declared a total
of NZ$118m in dividends for FY22 and 1H FY23.
We achieved NPAT of NZ$142m in
FY22 before significant items
2
and
NZ$54m in the first half of 2023
financial year
Listed on the NZX and ASX seventeen
months ago on 4 November 2021
Added to the MSCI Global Small Cap Index for
Australia in May 2022.
Added to the S&P/NZX 50 Index in December 2022.
Added to FTSE Asia Pacific ex-Japan and China
Small Cap Index for Australia in March 2023.
5
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 INTRODUCTION

Overview
02
6
VULCAN.COFORSYTH BARR INVESTOR DAY 2023

7
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW
The journey so far...
Vulcan’s History
Founded in 1995
in New Zealand,
Vulcan is an
industrial product
distributor and
value-added
processor.
Expanded into
the Victorian
market.
Expanded into
the Queensland
market.
Acquired
Sandvik’s
Australia and
New Zealand
Stainless steel
business.
Acquired
engineering steel
businesses in
Australia.
Consolidated
interests in
Horan Steel NSW.
(previously 50%
owned)
Vulcan operates
29 logistics and
processing
facilities across
19 regions - 9 in
Australia and 10
in New Zealand.
Successfully
listed on the ASX
on 4 November
2021.
19952002200720142018201920202021
Acquired Ullrich
Aluminium’s
extrusion,
distribution
and fabrication
operations
across 43
locations in
Australia and
New Zealand
2022

8
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW
Vulcan recently added aluminium to the company’s steel & metals distribution and processing services offering
c. 7,000 monthly active trading accounts (excluding aluminium customers) which operate across a range of end-markets
Vulcan’s Business
VIC
NSW
QLD
South Island
WA
North Island
SA
GEOGRAPHY*
23%
17%
15%
5%
3%
26%
11%
Fabricating
Manufacturing
Engineering
Mining
Transport
Sheetmetal
Other
Food & Agriculture
Rollformers
MARKET SEGMENTS*
21%
20%
14%
8%
9%
5%
3%
3%
21%
Other Customers
Customers #2-#20
Customer #1
CUSTOMER*
11%
2%
87%
N
e
w

Z
e
a
l
a
n
d


3
7
%
A
u
s
t
r
a
l
i
a


6
3
%

* Based on Vulcan’s FY22 revenue.
Plate Processing
Processes steel plate to
customer specifications
(including cutting, drilling,
tapping, counter-sinking
and folding)
Steel Distribution
Distributes steel hollows,
merchant products (bars,
beams, angles, channels)
and unprocessed coil
and plate
Coil Processing
Processes steel coil to
customer specifications
(including sheeting
and slitting)
Stainless Steel
Distributes stainless steel
hollows, bars, fittings
and sheets/plate, and
processes stainless
steel plate
Engineering Steels
Distributes high
performance engineering
steel and metal products,
and processes engineering
steel and metal products
Aluminium
Extrude and distribute
standard and customised
products and third party
products including sheet,
plate and coil products
METALSSTEEL

T OWNSV ILLE
MACKAY
BRISBANE
NEWCASTLE
LAUNCESTON
HOBART
S Y D N E Y
CANBERRA
MELBOURNE
ADELA I D E
PERTH
KURRI KURRI
BATHURST
ALBURY
DARWIN
BUNBURY
CAIRNS
ROCKHAMPTON
CALOUNDRA
GOLD COAST
DUNDOWRAN
COFFS HARBOUR
x2
x4
x2
x2
x3x3
WHANGAREI
AUCKLAND
x3x3
TAURANGA
ROTORUA
NAPIER
DUNEDIN
CHRISTCHURCH
WELLINGTON
SILVERDALE
NEW PLYMOUTH
HAMILTON
PALMERSTON NORTH
INVERGARGILL
TIMARU
NELSON
x2
x2x2
Trans-Tasman positions with a national footprint and significant scale drive operating leverage and supply chain capability
Vulcan’s Business continued
72144012k
SITES STRATEGICALLY LOCATED TO
SERVE THE LOCAL CUSTOMER BASE
COMPANY
EMPLOYEES
ACTIVE
CUSTOMERS*
* Excluding Aluminium.
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW VULCAN.CO
9

10
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW
OUTCOME
OPERATIONAL EXCELLENCE
ENABLERS
Inventory
Management
Processing
Capability
Managing
Overheads
Internally developed
fit-for-purpose IT
Accountable profit centres
97% Delivery in full, on time
1
Flat Structure
Customer
Service
Vulcan’s Business
Our business model at a glance...
1. Relates to both Australia and New Zealand in 1H FY23 (excludes aluminium operations)

11
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW
A Strong Track Record Over Time
0
10
20
30
40
50
60
70
80
90
100
FY23FY22FY21FY20FY19
EBITDA cash conversion (%)
0
5
10
15
20
25
30
35
40
12M to 1HFY23FY22FY21FY20FY19
Return on Capital Employed (%, post-IFRS 16)
0
50
100
150
200
250
300
FY23FY22FY21*FY20*FY19*
Full year1H2H
0
20
40
60
80
100
120
140
160
FY23FY22FY21*FY20*FY19*
Full year1H2H
EBITDA CASH CONVERSION** (%)RETURN ON CAPITAL EMPLOYED*** (%)
EBITDA BEFORE SIGNIFICANT ITEMS* (NZ$ millions)NPAT BEFORE SIGNIFICANT ITEMS * (NZ$ millions)
* Exclude initial public listing costs
** Cash conversion = (EBITDA less lease payments and capex)/(EBITDA less lease payment)
*** Return on Capital Employed = EBIT/(Shareholders’ funds + net debt + capitalised leased obligation)

12
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW
Growth Strategy & Update
• Recipient of Deloitte Top-200 2022 Awards in December 2022 for New Zealand
Company of the Year, recognising our employees for outstanding performance
and long history of value creation
• Strategy is focused on the creation of sustainable long term shareholder value
• Strong track record in
brownfield expansions -
additional sites identified
for expansion
• Focus on new customer
wins and increase share
of wallet
• Expanded into 10 regional
markets though greenfield
initiatives across Australasia
• New opportunities identified
to expand footprint within
Australasia
• Successfully introduced and
cross sell 2 major product
categories in the last 7 years
• Recently added aluminium
products into our offering
• Considering opportunities
in other steel segments
• Acquired and successfully
integrated 11 businesses
since 1995
• Acquired Ullrich Aluminium
in August 2022
• Opportunities for further
consolidation
• Ongoing focus on
productivity gain to offset
cost inflation
• 11 of 17 growth initiatives
previously identified are
now in revenue generation
phase, and are delivering
strong revenue run rate due
to higher product prices
• Ongoing focus on lifting
customer engagement
and volumes
Brownfield
expansion
Entry into new
geographies
Expansion of
product and/or
service offering
Mergers and
Acquisitions
Business
improvement
initiatives

• Continue to favour local supply chain, where possible
• Maintained a disciplined approach to management of inventory
and product availability
• A “team first” and agile culture to maintain high service level
and further increase engagement with existing and prospective
customers
• Ongoing efficiency initiatives to mitigate the impact of higher
inflation on our cost base
COVID-19-related disruptions highlighted the
strength of our Business Model
13
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OVERVIEW

Financials
03
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VULCAN.COFORSYTH BARR INVESTOR DAY 2023

1H FY23 Performance Highlights
1. Included five months of aluminium contribution in 1H FY23. 2. m - millions. 3. Earnings before interest, tax, depreciation and amortisation. 4.1H FY22: Statutory report included NZ$16m offer costs. 5. IFRS 16 - New Zealand accounting recognition
of right of use assets and corresponding liabilities on leases adopted in FY20. 6. Pre-IFRS 16 - NZ International Accounting Standard 17 – accounting treatment of leases prior to the introduction of IFRS 16 in FY20. 7. Based on customers that
transacted with Vulcan at least once in the relevant period, and excludes aluminium customers.
ADJUSTED EBITDA
1,3

(EXCLUDING SIGNIFICANT ITEMS
4
)
(NZ$97m pre-IFRS 16
3,4,6
basis)
-3% on NZ$118m in 1H FY22
NZ$115m
INTERIM DIVIDEND
(TOTALLING NZ$32m)
vs NZ27.5c in 1H FY22
NZ 24.5c
CUSTOMERS TRANSACTED
WITH VULCAN
7
+1% on 11,839 in 1H FY22
11,941
SALES VOLUME
1
-8% on 138,265 tonnes in 1H FY22
127,354t
ADJUSTED NPAT
5

(EXCLUDING SIGNIFICANT ITEMS)
(NZ$57m pre-IFRS 16 basis)
-22% on NZ$70m in 1H FY22
NZ$54m
REVENUE
1
+38% on NZ$463m in 1H FY22
NZ$638m
2
OPERATING CASH FLOW
1
vs NZ$36m in 1H FY22
NZ$16m
GROSS MARGIN
-5.4% on 41.3% in 1H FY22
35.9%
GROSS PROFIT $/TONNE
1
1H FY23 on 1H FY22
+30%
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VULCAN.COFORSYTH BARR INVESTOR DAY 2023 FINANCIALS

• Remain financially well-positioned to execute on growth opportunities
• 60%-80% annual dividend payout policy retained
- Declared 1H FY23 dividend 24.5 NZ cents is fully franked and imputed
• Bank facilities of NZ$429m as at 31 December 2022
- Continue to optimise the cost of carrying excess unutilised debt
facility and maintain sufficient flexibility for growth opportunities
Balance Sheet Metrics & Dividend
0
50
100
150
200
250
300
350
400
450
Dec-22Jun-22Dec-21Jun-21
160
429
250
160
Committed Facilities
3.0
1.7
0.9
1.7
0.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Banking CovenantDec-22Jun-22Dec-21Jun-21
0
100
200
300
400
500
600
700
800
900
1000
Dec-22Jun-22Dec-21Jun-21Dec-20
853.2
406.5
418.6
574.5
453.5
197.1
85.9
123.5
194.7
69.8
154.1
200.6
113.3
139.5
202.3
186.9
185.3
390.4
286.8
176.0
Shareholders’ FundsNet DebtLease Liabilities
BANKING FACILITIES
NET DEBT COVER (Net debt/EBITDA, pre IFRS 16)
FUNDS EMPLOYED (NZ$ million)
16
VULCAN.COFORSYTH BARR INVESTOR DAY 2023 FINANCIALS

17
Outlook
& Guidance
04
17
VULCAN.COFORSYTH BARR INVESTOR DAY 2023

Outlook
• As outlined in August last year with our full year FY22 results, we
expected the present financial year to be more challenging as the
market begins to normalise from peak demand trading conditions
arising from COVID-19, and as economic headwinds including higher
interest rates begin to impact on the wider economy and our business
• While we are encouraged by our margin performance, the demand
conditions observed in 1H FY23 are not expected to materially improve
in 2H FY23 across the Australian and New Zealand markets
• With current monetary policy settings, current business conditions
and the uncertainty surrounding New Zealand’s national election in
October 2023, there are risks of further weakening in the New Zealand
economy
• The recent weather-related events in the North Island of New Zealand
may cause ongoing disruption to trading activity in the short term
• There remains ongoing inflation pressure on our operating cost base
across Australia and New Zealand.
• The demand for steel and metal products globally in 2023 is expected
to increase from levels observed in 2022, as business activity in China
begins to recover from COVID-19
• Our aluminium business has performed well. Our goal is to maintain
the present momentum in the remainder of FY23
Outlook & Guidance
Earnings Guidance
• Based on current view of market conditions and recent trading, we
are reiterating our full year earnings guidance released at our 1H FY23
results, which is an EBITDA range of NZ$215m - NZ$230m and a NPAT
range of NZ$95m - NZ$109m.
• With the ongoing economic and market volatility, we will update our
guidance as appropriate.
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VULCAN.COFORSYTH BARR INVESTOR DAY 2023 OUTLOOK & GUIDANCE

04
Q&A
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VULCAN.COFORSYTH BARR INVESTOR DAY 2023

VULCAN.CO