Vulcan Trading Update

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/NZX/Media Release
21 October 2024
Vulcan trading update
Vulcan Steel Limited (Vulcan), an Australasian-wide industrial product distributor and
value-added processor has announced a market update on trading conditions and the
company’s performance for the September quarter 2024 (1Q FY25) based on unaudited
management accounts.
 Revenue fell 13% year-on-year (YoY) to NZ$263.1 million (m) in 1Q FY25 (from
NZ$304.0m in 1Q FY24)
 Earnings before interest depreciation and amortisation (EBITDA) fell 30% YoY to
NZ$33.1m in 1Q FY25 (from NZ$47.5m in 1Q FY24)
 Sales volume fell 10% YoY to approximately 57,800 tonnes in 1Q FY25 (from
approximately 64,500 tonnes in 1Q FY24)

Commenting on the results, Vulcan’s Managing Director and CEO, Rhys Jones, said:
“Following a challenging end to FY24, business conditions for our industry in 1Q FY25
remained soft and deteriorated across most market verticals and geography, especially
in New Zealand. These conditions are expected to continue for the balance of the 2024
calendar year.
Despite challenging conditions in the near term, Vulcan sees encouraging signs for 2025.
The reduction in the official cash rate by the Reserve Bank of New Zealand since August
2024 has led to a notable lift in business confidence and pre-sales activity level among
our customers, though the timing for this translating into tangible benefits during 2025
calendar year remains uncertain. In Australia, we expect trading conditions for some of our
operations to improve as business confidence lifts and when other present industry
disruption in that market abates.
With ongoing disciplined management of working capital, our net debt since the end of
FY24 has further reduced by $22m to NZ$254m at the end of September 2024. We remain
in compliance with our current banking covenant thresholds.

Vulcan Steel Limited
29 Neales Road East Tamaki Auckland New Zealand
e: investor@vulcan.co | w: vulcan.co
In addition, our banking syndicate continues to be supportive and we have entered into an
agreement with our lenders to provide a relaxation of the existing banking covenant
thresholds for the next fourteen months, with our current covenant thresholds to then apply
again from 31 December 2025. We have taken the prudent step to secure these
amendments in the event an economic recovery in Australia and New Zealand takes
longer to materialise.”

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 66 logistics and processing facilities employing approximately
1,300 employees across the company’s Steel and Metals divisions.