Steel & Tube – NZSA Presentation July 2023

NZSA Tauranga Branch Meeting
25 July 2023

Agenda
•About Steel & Tube
•Performance & Sustainability
•Growth Strategy
•Q&A
2

Intro Video

Making life
easier for
customers
needing steel
solutions
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Steel & Tube
•One of NewZealand’s leading providers of
steel solutions
•A proud NewZealand company, with over
69years of trading history
•We offer NewZealand’s most
comprehensive range of steelproducts,
services and solutions
•Our stable of best-in-class businesses are
some of this country’s leadingsteel
suppliers
27Sites
Nationwide

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Our business divisions
Products sourced from preferred
steel mills and distributed through
our national network
Products processed before sale,
typically on a contract or project basis,
including onsite installation services
Distribution
Infrastructure
SteelPiping SystemsChain & Rigging
FasteningsRural ProductsStainless Steel
RoofingCoil ProcessingReinforcing
PurlinsComFlor/ CFDLMesh

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Primary product and service offering by participants
Steel distributionPlate processing Coil processingStainless steelEngineering steelReinforcing steelWireRoofingFasteners
Steel & Tube
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Fletcher Steel
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Vulcan
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United Industries
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Asmuss
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Summit Steel & Wire
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Wakefield Metals
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Project Strive –
company wide reset
to refocus, reduce
costs and streamline
the business
Our journey
Our goal is to be the best in the sector, the preferred choice for steel
products and solutions and a trusted partner for our customers.
FY21 – FY22
Embedded value.
Focus moving to
growth. Covid
headwinds
FY23 onwards
Value of turnaround
now apparent. Strong
focus on growth with
clear strategy in place
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FY18 - FY20

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FY22 & FY23 demonstrated Steel & Tube’s value
•Strong financial performance
•Robust operating model that will deliver through the economic
cycle
•Clear focus on continuing to strengthen the core and investing in
high value products, services and sectors
•Goal to deliver sustainable double-digit ROFE
•18 July 2023 guidance EBITDA $52-$53 million, EBIT $31-$32 million
•Dividend policy of 60% to 80% of adjusted NPAT
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

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Financial Performance 1H23
50
60
70
80
90
Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22
Tonnes (Thousands)
Volume
150
200
250
300
350
Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22
$ (Millions)
Revenue
20
40
60
80
Dec-17Dec-18Dec-19Dec-20Dec-21
Dec-22
$ (Millions)
Gross Margin
Shaded area represents
results affected by COVID-19

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Building a
sustainable
business
Continuing strength in key
metrics in FY23
Customer Satisfaction
NPS 42 (FY22: 40)
Employee Safety Measure
eTRIFR1.14 (FY22: 1.13)
Employee Engagement
Employee NPS 35 (FY22: 35)
Net Promoter Score (NPS): Measure of customer/employee satisfaction
Customer NPS industry average is 32
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

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

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Sustainable Steel
Steel facilitates a
circular economy
•Infinitely recyclable
•Reduced construction waste
•Durable
•Non-toxic and inert
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ESG Initiatives
New BYD EV in Christchurch
LED replacement program complete
Scrap steel collection

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

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

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•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 Processing
Kiwi Pipe & Fittings
Recent growth initiatives: Reporting back
Fasteners NZ
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ORGANIC GROWTH
PROGRAMMATIC M&A
Aluminum
•Selected range of high
demand, high value
products
•Immediately earnings
accretive
•Pleasing initial demand

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

Discussion

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