Steel & Tube 2023 ASM Presentation and Speeches

Click to view video

2023 Annual
Shareholders’
Meeting
29 September 2023

3
How to ask questions
Shareholder & Proxyholder Q&A
Participation
Written Questions: Questions may be
submitted ahead of the meeting. If you have a
question to submit during the live meeting,
please select the Q&A tab on the right half of
your screen at anytime. Type your question into
the field and press submit. Your question will
be immediately submitted.
Help: The Q&A tab can also be used for
immediate help. If you need assistance, please
submit your query in the same manner as
typing a question and a Computershare
representative will respond to you directly.

4
How to vote
Shareholder & Proxyholder Voting
Once the voting has been opened, the
resolutions and voting options will allow voting.
To vote, simply click on the Vote tab,
and select your voting direction from the
options shown on the screen. You can vote for
all resolutions at once or by each resolution.
Your vote has been cast when the tick appears.
To change your vote, select ‘Change Your Vote’.

Agenda
•Chair’s Presentation
•Management Presentations
•Discussion
•Resolutions
•Other Business
•Meeting Close/Refreshments
5

Chair |Susan Paterson

Your Board
Steve Reindler
Independent Director
Appointed Oct 2017
Standing for re-election
Karen Jordan
Independent Director
Appointed Dec 2020
Susan Paterson
Independent Chair
Appointed Jan 2017
Christopher Ellis
Independent Director
Appointed Oct 2017
Standing for re-election
John Beveridge
Independent Director
Appointed August 2019
Andrew Flavell
Independent Director
Appointed Oct 2021
Cherie Kerrison
Future Director
From 31 March 2023

Leadership team
Marc Hainen
GM Distribution
Damian Miller
GM QHSE
Anna Morris
GM People & Culture
Mark Malpass
CEO
Mark Baker
GM Supply Chain &
Distribution Centres
Peter Ensor
GM Reinforcing/Wire
and CFDL
Richard Smyth
CFO

Celebrating 70 years together

Making life
easier for
customers
needing steel
solutions
10

11
Clear growth strategy in place, building on strong foundations to strengthen
the core and growth in high value products, services and sectors
Strategic Goals
Customer
The preferred
supplier for steel
solutions and
products
Growth
Increase valuation
through organic
growth and M&A
Shareholder
Deliver increasing
value and returns
for our
shareholders

12
FY23 further demonstrated Steel & Tube’s value
•Strong financial performance despite market conditions
•Robust operating model that will deliver through the economic cycle
•Balance sheet strength
•Clear focus on continuing to strengthen the core and investing in high
v
alue products, services and sectors
•Record operating cash flows reflecting steady revenues and inventory
d
isciplines
•Full year dividends of 8cps fully imputed, in line with policy of 60% to
80%
of adjusted NPAT

13
•Risk management and resilience in a fast
changing world
•Responsible business practices
•Enhancing our customer value proposition
•Our people
•Climate change response and resilience
•Value adding growth
In the Boardroom
Priority issues for the Steel & Tube Board
Shaping our
business for
the future
Long term business
sustainability supported
by balance sheet strength
with capacity for growth
investment

14
Click to view video
Sustainable Business
Trent Brash, Group Sustainability Manager

15
Investor returns
1.Gross dividends include the benefit of imputation credits
2.Based on share price at 30 June – FY23 $1.12
•Return on funds employed above cost of
capital for both FY22 and FY23
•75% dividend payout in FY23
•High dividend yield maintained
•Earnings per share: 10.3 cents per share
•Net Tangible Assets per share: $1.17
•Price earnings ratio: 10.9
1
FY23 Dividend
Interim Dividend
cps (net)
4.0
Final Dividend
cps (net)
4.0
To t a l
cps (net)
8.0
cps (gross)
1
11.1
Dividend Yield (Gross)
2
%
9.9%
Five year share price performance

Delivering strong and sustainable value
•Attractive dividend policy and yield
•Balance sheet strength with headroom for growth investment
•Growth strategy delivering increasing returns
•Leading supplier in the New Zealand market
•Investment in technology and analytics driving operational
e
fficiency, business insights and customer service
•Clear forward strategy with potential for growth and expansion
•Experienced board and leadership team
16

CEO |Mark Malpass

18
Results at a glance
Successful strategy execution driving resilient performance
Revenue
$589.1m
-1.7%
EBITDA
$51.9m
-22.1%
EBIT
$31.0m
-34.9%
NPAT
$17.0m
-43.7%
Volume
146,409t
-12.4%
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 (Net Debt
(including Lease Liability) + Equity). FY22 had previously been calculated using debt, the percentage has been restated to use net debt consistent with the company’s peers | Non-GAAP earnings reconciliation at the end of the presentation
ROFE
9.9%
FY22: 15.4%
Normalised
EBITDA
$52.9m
-20.9%
Normalised
EBIT
$32.1m
-33.0%
•Solid financial performance,
a
t top of guidance
•Achieved Steel & Tube’s
se
cond highest revenue
result, just shy of last year’s
exceptional super cycle result
•Record net cash inflow from
o
perating activities of
~$100m, almost double that
of the previous record cash
inflow result
•No bank debt and a positive
c
ash balance, representing a
~$50m improvement

19
Balance Sheet Strength
Group balance sheetsummary
•Significant reduction in inventory
•Freeing up cash as inventory position reduced
•Disciplined management of working capital
•Strong cashflows supporting strategic initiatives
•Fully repaid debt with substantial bank facility in
pl
ace to fund growth
•Subsequent to 30 June 2023, completed the
r
enewal of the $100m bank facility
$mFY23FY22
Trade and other receivables79.3 103.3
Inventories139.2 192.5
Trade and other payables(69.4)(89.0)
Working Capital149.1 206.8
Total Facility
100.0 100.0
Borrowings
-(51.0)
Available Facility/Undrawn
100.0 49.0
Cash and cash equivalents6.5 8.0
Borrowings-(51.0)
Net Cash/(Debt)6.5 (43.0)
Net Tangible Assets (NTA) 194.6 202.2
ROFE (%)9.9%15.4%

20
Actively managing market challenges
Market ChallengesFY23 response
Slowing economy•Resilient business platform –significant reductions in debt and inventory, solid underlying
cashflows
Commodity price
volatility, some easing
•Continued investment in the right inventory and reduced inventory cover
•Selling down longer inventory positions
•Focus on dollar margin capture on existing inventory
Inflation•Actively targeting cost inflation
•Comprehensive cost out programme –benefits to be seen in FY24
Tight labour market•Continued focus on staff training and development – leadership training, coaching,
wellbeing workshops
•Expanded investment in Māori Cadetship Programme
•At year end, all staff at or above the Living Wage
Cashflow management•Tight management of debtors
•Continuing to review debtor and creditor terms

21
Strategic pathways
Overall goal to deliver gross margin improvement
•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 M&A in direct adjacent sectors
Grow High Value Products,
Services and Sectors

22
PLATE PROCESSING
•Revenues up 76% and
Gross Margin $ up
75% yoy
•Earnings momentum
building
•Fur
thergeographic
expansion in progress
Growth investments focused on added value
32
ALUMINIUM
•Immediately earnings
accretive
•Product margin
$/tonnehas exceeded
expectations
•No
w one of our highest
margin products
KIWI PIPE AND
FITTINGS
•Earnings per share
positive in the first
year
•One of the highest
ROFE businesses
FASTENERS NZ
•High quality, strong
ongoing demand
•Range expansion
adding value
Recent organic growth initiativesCompleted M&A
PROJECT STRONG
•Increased warehouse
capacity for high
value, high demand
products
•Enhanced automation
and warehouse
technologies
•FY24 one-o
ff opex
impact $0.7m

23
Our Strategy in Action
Marc Hainen GM Distribution
and Peter Ensor, GM Wire/Reinforcing and CFDL
Click to view video

24
Customer, employee and sustainability update
4.9
1.86
1.13
1.14
0
2
4
6
FY20FY21FY22FY23
5
19
3535
0
10
20
30
40
Jul-20Jul-21Apr-22Mar-23
Employee Satisfaction (eNPS
2
)
Employee Safety Measure
(eTRIFR
1
)
Emissions kgCO
2
e per tonne
3
24
34
40
42
0
10
20
30
40
50
FY20FY21FY22FY23
Industry Average: 32
1.eTRIFR: Employee Total Recordable Injury Frequency Rate
2.Net Promoter Score (NPS): Measure of customer/employee satisfaction
3.Reporting references the Greenhouse Gas Protocol and includes all material emissions under Scope 1 and 2, with Scope 3, except purchased goods and services
Customer Satisfaction (NPS
2
)
Industry Average: 18
Customer
•Satisfaction remains at high levels as we
m
aintain focus on best-in -class customer
experience and solutions
•Growing online presence, omni-c
hannel
offer
•Product offer tailored to customer needs
S
ustainability
•Emphasis on safety, wellbeing and culture
•Employee satisfaction well above industry
av
erage
•Industry leading employee safety metric
•Voluntary Climate-R
elated Disclosures in
FY23 Annual Report
104.0
96.6
90
95
100
105
FY22FY23
7% Year on Year Reduction

25
Health, safety and wellbeing
Continuous improvement driven by vision of
zero harm
•Board Quality, Health, Safety and Environment Committee
•Emphasis on critical risk reduction and injury prevention
•Culture of safety where every employee is empowered to
c
ontribute to a safe workplace and uphold high safety
standards, with worker engagement providing valuable
insights
•Safeguarding our operations through investment in
g
uarding
•Focus on building capability of our people with training
p
rogrammes and safety workshops
•Dedicated wellbeing programmes with a focus on
p
hysical and mental health
FY23 key initiatives:
•31 H&S committees across our sites
•NZQA Level training for both crane
an
d forklift operations, benefiting a
total of 205 employees
•More than 2,027 customisedin -
house H&S training sessions for our
team
•Over 998 safety conversations to
p
romote active engagement
•Reviewed 167-p
lus work instructions
to ensure best practice
•Formal p
rogrammeof critical risk
reviews using Bowtie methodology
•Endorsed for ISO 45001 and ISO
1
4001 standards for occupational
safety, health, and environmental
responsibility

26
Quality in everything we do
•Extensive Quality Management System in place
•ISO 9001 Quality Standard
•Steel sourced from independently audited and
v
erified steel mills - independent assessments
of supplier mills’ quality standards and
processes by Lloyds Register Quality Assurance
•Digital platform allows matching of test
c
ertificates to products and further enhances
traceability
•Purpose-b
uilt IANZ certificated reinforcing
laboratory
New Zealand44.9%
NZ purchased,
globally sourced
12.1%
China14.4%
Taiwan10.9%
Australia6.7%
Thailand5.0%
South Korea2.0%
Vietnam0.8%
Singapore0.6%
Japan0.5%
Rest of world2.1%
100.0%
Supplier network of
independently audited and
verified steel mills

27
Enabling Our Business
Anna Morris, GM People & Culture
and Damian Miller, GM QSHET
Click to view video

28
Macro opportunities
Significant exposure to climate resilience, infrastructure and essential water services
Infrastructure
•Govt budget in excess of $71bvs

$45b in previous 5 year period
•In excess of $92b in project
v
alue in the pipeline
-Rebuild following extreme
w
eather events
-Major projects across health,
e
ducation, community
facilities, energy, water and
transport
-Mix of region-w
ide and
national projects
Steel is one of the world’s
most essential and sustainable
building products –
permanent, forever reusable
and the most recycled
substance on the planet.
Steel offers a number of
advantages in a future where
climate change and extreme
weather events are likely to
become more common.
Climate resilience
•Proven capability, capacity, and
ex
pertise to deliver innovative
project solutions:
-Port rebuilds
-Wind and solar energy
-Coastal protection
-Resilient buildings

29
Economic drivers
Build share of sales in growth sectors
Share of Sales (FY23)
35%
32%
12%
10%
7%
4%
Others
Resellers
Infrastructure
Residential
Commercial
Manufacturing
Demand primarily driven by residential market trends
Strong long term pipeline driven by climate investments, rebuild following
weather events, and catch up on low investment in prior years
Economic headwinds impacting growth, expected improvement mid-2024
Modest fall from peak 2023 levels expected, however strong pipeline
Expected to remain subdued in the short to medium term
Resellers
FY24
FY27
Infrastructure
Residential
Commercial
Manufacturing
Customer First
M&A / Growth Activity
Focus on Costs

30
Well positioned to respond to the challenging economic
cycle and to take advantage of new market and product
opportunities, including the rebuilding programme
•
Healthy pipeline of infrastructure and commercial
projects in place; manufacturing remains steady
•Strong balance sheet and cashflowsto support growth
initiatives; focus remains on gross margin $/tonne and
actively managing costs with $5m cost out programme
underwayin FY24
•Business growth to continue through organic
expansion and M&A
Market outlook
•Economic cycle likely to remain
challenging; recessionary
environment to continue 1H24,
expect easing in 2H24
•Elevated Government
i
nvestment offset by weaker
business and residential
investment
•Significant medium to long
t
erm opportunities - climate
resilience, seismic
strengthening, rebuild activity
and essential water services.
•Steel pricing volatility has
r
educed; stabilised above pre-
Covid levels
FY24 outlook

31
Delivering
value for our
shareholders,
customers and
New Zealand

Shareholder
discussion
32

Resolutions
33

34
Resolutions
Resolution 1: Auditor’s Remuneration
That the directors be authorisedto fix the fees and expenses of KPMG as the company’s auditor.
Resolution 2: Re-election of Chris Ellis
That Chris Ellis, who retires by rotation and is eligible for re-election, be re-elected as a director of the
company.
Resolution 3: Re-election of Steve Reindler
That Steve Reindler, who retires by rotation and is eligible for re-election, be re-elected as a director of the
company
.

Other business
Close of the Meeting
35

37
Non-GAAP financial information
Non-GAAP financial information: Steel & Tube uses several non-
GAAP measures when discussing financial performance. These
include Normalised EBITDA, 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 FY23 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 years ended 30 June 2023 and 30 June
2022 reconcile to normalised earnings. Non-trading adjustments of
$(1.1) million are included in the FY23 results.
Year ended 30 JuneEBITDAEBIT
$000sFY23FY22FY23FY22
Reported 51,876 66,598 31,009 47,636
Loss on de-recognition of finance lease receivable128 -128 -
Holiday pay provision release-(854)
-(854)
NZ IFRS 16 reversal of impairment(177)(527)
(177)(527)
Software as a Service (SaaS) upfront expenditure
1,109 1,645 1,109 1,645
Normalised52,936 66,862 32,069 47,900

38
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 (Net Debt
(including Lease Liability) + Equity)
eNPS: Employee Net Promoter Score – assists in measuring
employee satisfaction and loyalty within the organisation
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

39
•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
p
roducts for subscription, purchase or sale, or an invitation or
solicitation for such offers.
•This presentation is not intended as investment, financial or other
a
dvice 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
s
hould 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
s
hould 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,
em
ployees 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.
•Some numbers in this presentation may not add due to rounding.
Disclaimer

---

STEEL & TUBE 2023 ANNUAL SHAREHOLDERS’ MEETING
29 September 2023

CHAIR’S ADDRESS
Susan Paterson, Chair

OUR BOARD
Welcome to our shareholders.
All your board directors are in attendance today, although Andrew Flavell is joining us online from
Japan.
In the room with us, we have Steve Reindler, Karen Jordan, Chris Ellis and John Beveridge.
We’ve also been fortunate to have Cherie Kerrison in the mix as part of the Future Directors program.
This continues to be a positive format for upskilling aspiring directors and bringing in an outside
perspective to established boards. Cherie has a strong retail background and was most recently
Managing Director of JB HiFi. She has expertise in sales, marketing, pricing, Te Ao Māori, and
network management, and is a valued and proactive contributor at our board meetings.
We consider director succession on a regular basis, taking into account such things as tenure,
experience and director workload. The board has developed a skills matrix and this is a crucial tool in
evaluating our board composition, enabling us to align the diverse expertise of our directors with the
strategic needs of our company.
We believe that the current directors offer valuable and complementary skill sets. Importantly, the
majority of Steel & Tube’s directors have either worked in or held governance positions within the
sector.
LEADERSHIP TEAM
A key pillar of our success is our exceptional leadership team. As we navigate the ever evolving
business landscape, having a strong and experienced leadership team becomes paramount.
The strength of our leadership team lies not only in their individual capabilities but also in their
collaborative spirit. They work seamlessly together to drive Steel & Tube's success and secure our
position as a leader in our industry.
Joining us today are Mark Malpass, Steel & Tube’s CEO, as well as Richard Smyth, Chief Financial
Officer. A number of our other executives are also here and you will hear from them during our
presentations. Please feel free to approach them after the meeting for a chat. They are a very friendly
bunch!

I would like to acknowledge the exceptional efforts of Mark and the leadership team, as well as all
the people at Steel & Tube who deliver outstanding service for our customers every day.
CELEBRATING 70 YEARS TOGETHER
2023 marks a significant milestone for Steel & Tube as we commemorate 70 years of successful
business operation. In a world where less than half of businesses make it past the first ten years, our
longevity and strong standing is testament to our enduring spirit, our ability to move with the times,
the dedication of our team and the loyalty of our customers.
Since our inception in 1953, we have steadily grown from a modest operation to become a trusted
name in the steel and building materials sector, serving customers across New Zealand.
In celebrating this significant anniversary, it is important to acknowledge the contribution of our
shareholders, who have played a pivotal role in our journey, providing us with the resources and
support necessary to pursue our strategic objectives.
OUR PURPOSE
Our purpose is clear – to make life easier for customers needing steel solutions.
STRATEGIC GOALS
Our goals are three-fold:
• To position Steel & Tube as the preferred supplier for steel solutions and products;
• To increase the company’s valuation by growing our existing offer, and M&A in adjacent sectors;
• And to deliver increasing returns and value for our shareholders.
FY23 PERFORMANCE
The 2023 financial year demonstrated the resilience and strength of our business, as we delivered
solid results, at the top of guidance, in a challenging environment.
Revenue was the second highest reported, following the super cycle result in FY22.
Operating cashflows of ~$100m were a record.
In a time of recession, two things are key - having a strong balance sheet and keeping costs under
control. Steel & Tube finished the year with a very strong balance sheet, with a 35% reduction in
inventory tonnes, no bank debt and a positive cash balance of $6.5m.
Our company is positioned well for the economic cycle, with a clear forward strategy, a lean
operating platform and the means to invest into growth.
IN THE BOARDROOM
The last three years have demonstrated how much and how fast the world and our trading
environment can change in a short span of time.
Your board is focused on ensuring a long term, sustainable future for Steel & Tube, that is financially
rewarding for our shareholders, and positive for our people, our customers and our planet.

Important topics of discussion in our boardroom revolve around risk and resilience, being a
responsible business, how to better serve our customers and our people, our actions in response to
climate change and the growth of our business.
We are continually looking for ways we can ‘do business better and smarter’. Our results in FY23
demonstrate the resilience of our business and prove that we are on the right path with our dual
strategy.
Technology remains a key enabler for our business, providing data, insights and management tools
to help us run our business more effectively, as well as improving our customer experience. We are
reviewing Artificial Intelligence opportunities and have identified several parts of the business that
lend themselves to this new technology. We are taking a careful and structured approach to how we
can integrate IA into our organisation, with benefits including cost savings, productivity and
operational efficiencies, and enhancements to customer experience.
It is important to us to earn our social licence to operate – that means ensuring we operate ethically
and fairly. The Lloyds Register assurance programme we have in place, not only audits our supplier
mills for quality of product, but also looks at labour practices and environmental sustainability.
We are investing in the growth and development of our people and were proud to have paid the
living wage during FY23. Our digital platform also supports our team, with our online training
modules and wellbeing programme continuing to be popular.
Health and safety is a priority across our business and our safety metrics remain at record lows. We
make a significant investment in safety, both in financial terms and human capital, to ensure that our
people are kept safe in what is a high-risk environment. We have a Quality, Health and Safety
Committee and all directors are actively involved in our safety risk assessments and ongoing safety
stewardship.
As one of New Zealand’s largest steel distributors and manufacturers, climate change has the
potential to have a transformative impact on the way we do business. This is why we have committed
to engaging with policymakers on climate change legislation over the last two years and will
continue to do so in the future.
Our team has been doing significant work on climate change and emissions management and we
were pleased to voluntarily report our progress against the new Climate Related Disclosures regime
this year, ahead of it becoming mandatory in FY24.
Here’s Steel & Tube’s Group Sustainability Manager, Trent Brash, to talk about our commitment to
reducing our footprint and the work that is being done.
VIDEO – SUSTAINABLE BUSINESS
INVESTOR RETURNS
We were pleased to pay fully imputed dividends of 8 cents per share in FY23 which was a payout of
75% of our adjusted net profit. This represents a gross yield for investors of 9.9% and compares well
to our peers.

Earnings per share were 10.3 cents per share.
Return on funds employed was 10% for the year, meaning that Steel & Tube is delivering $1 for
every $10 of debt and shareholder equity employed in the business. While this is down on last year
due to the tighter economic conditions, it is still a very attractive measure. For both last year and this
year, our ROFE was above our cost of capital.
Our Net Tangible Assets were $1.17 per share. This is the historical cost of the physical assets owned
by Steel & Tube and takes into account our property, plant, inventory and equipment. It does not
take into account the additional value of intangible assets such as technology and goodwill.
DELIVERING STRONG AND SUSTAINABLE VALUE
Your board is focused on delivering strong and sustainable value.
We have a clear strategy and a strong balance sheet which will support us through the current
economic cycle and provides capacity for growth investment.
We are committed to enhancing our financial returns through operational and customer service
excellence, investment in growth opportunities and by building on our position as one of the leading
suppliers of steel in the New Zealand market.
This will enable us to deliver attractive and consistent dividends for our shareholders.
As we look ahead, we recognise that the business landscape is constantly evolving, and new
challenges and opportunities lie on the horizon. With a rich legacy across 70 years and a strong
sense of purpose, we are well-positioned to embrace the future with confidence and determination.
Our long-term vision remains unchanged, and we're unwavering in our commitment to building a
strong, sustainable future. As an organisation, we are making good progress and your board is very
optimistic about Steel & Tube’s future.
We will continue to invest in our people, nurture strong customer relationships and
leverage our expertise to drive innovation and create value for all stakeholders.
On behalf of the board, I would like to thank all our shareholders for your continued support.

CEO MARK MALPASS
Tena Koutou. Thank you and welcome to all those attending today’s meeting.
I’ll start with a quick summary of our FY23 performance and then talk in more detail about our
strategy and progress. You’ll also hear from several of our leadership team in videos today.
FY23 RESULTS AT A GLANCE
We saw solid demand for steel continue in the first half of FY23. However, the macro-economic
headwinds impacted activity and volumes were down 12% year on year. Despite this decrease in
volumes, revenue was very close to prior year as sell prices lifted.
The tight labour market that developed over the last two years continued, with some easing in 2H23
as more foreign workers have gained entry. There was a flow-on inflationary impact that affected
margins.
Elevated steel pricing softened in 2H23, although remains above pre-COVID levels.
Pleasingly, supply chain constraints and international freight rates eased at the end of 1H23.
However, fuel and compliance costs are on the rise and we expect to see further increases in FY24.
Overall, it was a solid result given a fairly challenging marketplace.
BALANCE SHEET
We successfully repositioned our balance sheet, which means we’re now in a position of strength to
manage any ongoing softness in the economy and enable continued investment in growth.
Inventory was reduced significantly as supply chain issues eased. This freed up cash allowing us to
fully repay debt – we ended the year with no bank debt and we have continued to improve our
position since financial year end.
In addition, we have a substantial $100m bank facility in place to fund growth and this was renewed
in August of this year.
We are well positioned to take advantage of opportunities.
MANAGING MARKET CHALLENGES
We continue to actively manage the business to meet market conditions, with considered responses
including:
• A comprehensive $5m cost out programme with benefits this financial year;
• Tight control over debtors and cashflow; and
• A continued focus on culture and our employee value proposition to ensure we attract and retain
the best talent.
We also continue to invest in the right inventory.
Despite the current conditions, demand for steel remains solid, and long term macro trends are
positive.

Benefits are being realised from our focus on higher value products, improved pricing disciplines and
leveraging data analytics and capabilities.
OUR STRATEGY
Susan mentioned our clear strategic focus on two pathways. Firstly, continuing to strengthen our
core business and secondly, to grow by investing in high value products and services.
Continuing to strengthen the core involves building on the business foundation now in place with a
focus on best in class customer experience and leveraging our breadth and scale to cross sell a wider
range of products.
Investing in higher value products and services is focussed on extending what we can offer to our
customers. This includes adjacent materials and value added services. While the majority of our
growth will be organic, we also continue to consider acquisitions where they meet our criteria.
We are mindful of the investment shareholders make in our company and do not believe in growth
for growth’s sake. Instead, we have a disciplined approach to investment in new opportunities, to
ensure they will deliver financial and strategic value.
GROWTH INVESTMENTS
The work we are doing under our dual pathway strategy is delivering benefits.
You can see here several examples of strengthening our core and also growing high value products
and services.
For more on these strategies in action, here’s a video from members of our leadership team.
VIDEO – OUR STRATEGY IN ACTION
CUSTOMER, EMPLOYEE, SUSTAINABILITY UPDATE
Our goal is to be the preferred provider of steel products and solutions in New Zealand. We do this
by working smarter and delivering better value for our people, our customers and our shareholders.
The combination of our expert team, high quality goods and services and our digital platform all
work together.
Pleasingly all our key metrics continue to improve, with customer satisfaction at high levels and
employee satisfaction also well above industry average. Our safety outcomes are positive and we
remain focused on being injury free across our organisation.
Our people are the heart of our business and I would like to acknowledge and thank our teams for
their commitment and passion for our business. As CEO, I am very lucky to work with more than 800
incredible people who contribute to Steel & Tube’s success every day.
HEALTH AND SAFETY
I’d like to provide a bit more detail on two areas that are very important to us – Health and Safety,
and Product Quality.

Ensuring the health, safety and wellbeing of our team, our customers, contractors, and anyone who
visits our sites is a priority. This focus is led from the board down and is the responsibility of every
person in our organisation.
We prioritise employee health and safety and empower every team member to contribute to a safe
workplace and uphold high safety standards.
We provide ongoing training, invest significant amounts in equipment guarding and use dashboards
to monitor and identify any potential safety hazards. We also engage with our teams for their input
on how we can improve our work environment.
Our safety performance has significantly improved over the past seven years and the FY23 employee
Total Recordable Injury Frequency Rate of 1.14 is in line with the prior year historic low.
QUALITY
Quality is crucial in everything we do, from the sourcing of products, through to customer service
and delivery. We have an extensive Quality Management System in place and have achieved ISO
quality certifications.
We source steel from independently audited and verified steel mills, with Lloyds Register Quality
Assurance undertaking independent assessments of our supplier mills’ quality standards and
processes.
Our digital platform allows us to match test certificates to products which further enhances
traceability.
In the last year, we received IANZ certification for our purpose-built reinforcing laboratory. This
certifies that our products comply with NZ standards, demonstrates our competence and instils
confidence in our work and our products.
The testing lab is just one component of our comprehensive quality control programme. We also
undertake random sampling of relevant products, and these are tested by an independent IANZ-
accredited laboratory in New Zealand for verification to the relevant standard.
These achievements demonstrate our unwavering dedication to quality across our business.
Here are members of our leadership team to talk a bit more on these important areas.
VIDEO – ENABLING OUR BUSINESS
MACRO OPPORTUNITIES
As Trent mentioned, steel is one of the world’s most essential and sustainable building products –
permanent, forever reusable and the most recycled substance on the planet.
For many construction applications, steel is the only choice and it offers a number of advantages in a
future where climate change and extreme weather events are likely to become more common.
We have proven expertise and capability to deliver for climate resilience projects such as port
rebuilds, wind and solar energy developments, coastal protection and resilient buildings.

We are also well positioned to support New Zealand’s infrastructure rebuild, including essential
water services, and the cyclone and floods rebuild over the next few years.
ECONOMIC DRIVERS
There are plenty of green lights ahead of us.
The diversity of our customer base is a significant advantage, in that we are not heavily exposed to
any particular sector.
Commercial construction is expected to improve; there is still a strong pipeline in residential from
consents granted previously; and while manufacturing is expected to remain subdued in the short to
medium term, solid demand for steel continues.
Infrastructure has a strong, long term outlook with the NZ Government allocating $6b to ‘build back
better’ following the recent weather events, and a further $71b infrastructure spend over the next
five years compared to $45b over the previous five years.
In addition, there are many opportunities to add value to our business, including some that will
present themselves as a direct result of the economic environment, and we are well positioned to
take advantage of these.
FY24 OUTLOOK
The value of our dual pathway strategy is now becoming clear, and this remains the framework for
our actions as we continue to strengthen our core and build high growth products and services.
We are cautiously optimistic that calendar 2023 represents the bottom of the cycle and although we
don’t expect a fast recovery, we anticipate there will be some improvement from early calendar 2024
(the second half of our FY24 financial year).
In a recessionary environment, the most important thing we can do is ensure a strong balance sheet
and tightly manage costs.
We have proven our ability to deliver strong results in challenging conditions and would expect any
uplift in activity and demand to be reflected in our results.
DELIVERING VALUE
Steel & Tube is strongly positioned to deliver through the economic cycle and to take advantage of
new market and product opportunities.
Our team has the experience and skills to solve challenges and identify opportunities.
Our focus remains on how we differentiate ourselves to stand out as the preferred supplier of choice.
Thank you for listening.
ENDS