UBS Australasia Conference presentation

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

ASX and NZX release

14 November 2023

Vulcan to present at the UBS Australasia Conference
Please find attached a copy of Vulcan Steel Limited’s (Vulcan) presentation for the UBS
Australasia Conference on Tuesday, 14 November 2023.

ENDS
Kar Yue Yeo
Investor and media contact
Email: karyue.yeo@vulcan.co
Phone: +64 9 273 7214
This announcement was authorised by Vulcan’s 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 approximately 1,325
staff across the company’s Steel and Metals divisions.

UBS AUSTRALASIA CONFERENCE
14 NOVEMBER 2023

Disclaimer
The material contained in this document is a presentation
of information about Vulcan Steel Limited’s (Vulcan)
activities current as of 14 November 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 Vulcan’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 document
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 document were not subject to a review or an audit
by Deloitte.
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
2

Agenda
01
02
03
04
05
OVERVIEW
FINANCIALS AND OPERATIONS
OUTLOOK AND GUIDANCE
Q&A
SUPPLEMENTARY INFORMATION
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
3

Overview
01
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
4

1. ROCE - Return on Capital Employed. 2. m – millions 3. EBITDA - Earnings before interests, tax, depreciation and amortisation. 4. NPAT - Net profit after tax. 5. Cash Conversion: (EBITDA - lease payments - capital expenditure)/(EBITDA - lease payments)
6. Debt cover: Net debt to pre-IFRS 16 EBITDA. 7. IFRS 16 - International Financial Reporting Standard 16 relates to accounting for operating leases.
A sound return in FY23
ADJUSTED EBITDA
3
NZ$
down 10% on $243m in FY22
$219m
ADJUSTED NPAT
4
NZ$
down 33% from $142m in FY22
$95m
OPERATING CASHFLOW NZ$
up $133m from $12m in FY22
$145m
CASH CONVERSION
5

down 8% from 95% in FY22
87%
NET DEBT COVER
6

up from 0.86 in FY22
1.85x
ROCE
1
down 16% from 37% in FY22
21%
REVENUE NZ$
up 28% on $973m in FY22
$1,245m
2
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
55

• Overriding principle - Provide a service proposition that
adds value to customers and that is also accretive to
Vulcan shareholder value
• Approach to value capture - Greenfield and brownfield
initiatives as well as disciplined acquisitions
• Expansion into Aluminium in FY23 – Has widened Vulcan’s
network reach, increased cross-sell opportunities, and
added more options for hybrid sites
• Priorities for FY24
- Continue to embed Vulcan’s business model, service
mindset and culture in the company’s aluminium
business
- Execute on hybrid sites rollout
- Focus on productivity and contain cost growth
- Explore other platforms and adjacencies to grow
shareholder value over time
Value creation strategy & implementation
IMAGE TO BE CONFIRMED
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
6

Financials
& Operations
02
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
7

• Revenue decline of 9% year-on-year (yoy) was driven
by lower average selling price and volume compared
with previous corresponding period
• The yoy weakness in 4M FY24 EBITDA was due to a
combination of lower volume, margin and inflation
impact on operating costs
• Sales tonnes per day in 4M FY24 compared with 2H FY23
has been mixed:
- Australia has remained steady; and
- New Zealand has weakened further, reflecting market
conditions
• Volumes in New Zealand in October were adversely
impacted by the general election


Trading in first 4 months of FY24
NZ$m4M FY24
1
4M FY23
3
Change
Revenue
2
400438-9%
EBITDA
2
5882-29%
Volume (000 tonnes)
2
8490-7%
1. 4M FY24: Four months from 1 July to 31 October 2023.
2. Based on unaudited management accounts.
3. The four months from 1 July to 31 October 2022 in the previous corresponding period (4MFY23) included three months of contributions
from aluminium following the purchase of Vulcan’s aluminium business on 1 August 2022.
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
8

Half-yearly volume and financial trends
0
100
200
300
400
500
600
700
4MFY242HFY231HFY232HFY221HFY222HFY211HFY21
6-month period4-month period
0
200
400
600
800
1000
1200
1400
4MFY242HFY231HFY232HFY221HFY222HFY211HFY21
6-month period4-month period
0
20
40
60
80
100
120
140
4MFY242HFY231HFY232HFY221HFY222HFY211HFY21
6-month period4-month period
0
10
20
30
40
50
60
4MFY242HFY231HFY232HFY221HFY222HFY211HFY21
ROCE (12-monthy)
na
ROCE pre-IFRS 16 (12-monthly)
REVENUE (NZ$m)SALES VOLUME (Tonnes Per Day, tonnes)
ADJUSTED EBITDA (NZ$m)RETURN ON CAPITAL EMPLOYED (ROCE, %)
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
9

• Based on the first four months of trading in FY24, sales
volumes are showing early signs of stabilising
• High interest rate levels are expected to limit the extent
of a recovery
• Trading in New Zealand was variable in the first four
months of FY24. The lead activity indicators for New
Zealand suggest some recovery in 2H FY24, although
this could remain tepid
• In Australia, the outlook for Vulcan’s Metals segment
remains steady, while the Steel segment will likely continue
to be challenging in the near term
• December and January months are seasonally lower
sales and volume period due to fewer effective trading
days for Vulcan
• Global commodity prices are expected to remain range-
bound for a period
• Focusing on productivity to offset the inflation pressure
on Vulcan’s cost base
FY24 Outlook
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
10

04
Q&A
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
11

05
Supplementary
Information
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
12

Vulcan added aluminium to the company’s steel & metals distribution and processing services offering in August 2022
Vulcan’s business
1. Based on FY23 data, and excluding aluminium customers.
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
Extrudes and distributes
standard and customised
products and third party
products including sheet,
plate and coil products
METALSSTEEL
c. 7,000 monthly active trading accounts (excluding aluminium customers) which operate across a range of end-markets
VIC
NSW
QLD
South Island
WA
North Island
SA
GEOGRAPHY
1
23%
17%
15%
5%
3%
26%
11%
Fabricating
Manufacturing
Engineering
Mining
Transport
Sheetmetal
Other
Food & Agriculture
Rollformers
MARKET SEGMENTS
1
21%
20%
14%
8%
9%
5%
3%
3%
21%
Other Customers
Customers #2-#20
Customer #1
CUSTOMER
1
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
%

VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
13

LAUNCESTON
HOBART
SYDNEY x 4
CANBERRA
MELBOURNE x 3
ADELAIDE x 2
KURRI KURRI
BATHURST
DARWIN
CAIRNS
ROCKHAMPTON
CALOUNDRA
ALBURY x 2
DUNDOWRAN
PERTH x 2
BUNBURY
COFFS HARBOUR
BRISBANE x 6
NEWCASTLE x 3
GOLD COAST x 2
TOWNSVILLE x 2
MACKAY x 2
ROTORUA
NAPIER x 2
DUNEDIN x 2
WELLINGTON
SILVERDALE
NEW PLYMOUTH
HAMILTON x 2
PALMERSTON NORTH x 2
INVERGARGILL x 2
NELSON x 2
CHRISTCHURCH x 3
TIMARU
TAURANGA x 2
AUCKLAND x 6
WHANGAREI x 2
Opportunity to drive more operating leverage
from our footprint and scale
Vulcan’s network
1. As at 31 October 2023. 2. Excluding Aluminium.
1
,
32570
STRATEGICALLY LOCATED SITES
1
COMPANY EMPLOYEES
1
12k
ACTIVE CUSTOMERS
2
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
14

Growth strategy & update
• Strong track record in
brownfield expansions and
additional sites identified

for future expansion
• Focus on new customer
wins and increase share

of wallet
• Expanded into 10 regional
markets through greenfield
initiatives across
Australasia
• New opportunities identified
to expand footprint within
Australasia
• Increasing the breadth
and depth of our network
offering over time
• Successfully introduced
and cross-sold two major
product categories in the
last eight years
• Added aluminium products
into our offering in FY23
• 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 gains to

offset cost inflation
• Further extend hybrid
offering to exisitng and

new locations
• 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
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
15

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 and NZX on
4 November 2021
19952002200720142018201920202021
Acquired Ullrich
Aluminium’s
extrusion,
distribution
and fabrication
operations
across 43
locations in
Australia and
New Zealand
2022
VULCAN UBS CONFERENCE AUSTRALASIAVULCAN.CO
16

VULCAN.CO