Steel & Tube - 1H25 Interim Result

STEEL & TUBE HOLDINGS LIMITED
2025
HALF YEAR
REPORT

1
STEEL & TUBE HALF YEAR REPORT 2025
INTERIM
FINANCIAL
STATEMENTS
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2024
Contents
02 Interim Financial Statements
06 Notes to the Interim Financial Statements
12 Independent Review Report
These interim financial statements do
not include all the notes and information
normally included in the annual financial
statements. Accordingly, they should be
read in conjunction with the annual financial
statements for the year ended 30 June 2024.
Due to rounding, numbers presented
throughout the financial statements may not
add up precisely to the totals provided.
1
STEEL & TUBE HALF YEAR REPORT 2025

2
STEEL & TUBE HALF YEAR REPORT 2025
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2024
Notes
Unaudited
December
2024
$000
Unaudited
December
2023
$000
Sales revenue3 196,027 261,750
Other operating income 40 64
Cost of sales2(158,933)(203,789)
Operating expenses2(4 7, 7 2 6)(4 7, 5 1 0)
Software as a Service (SaaS) upfront expenditure
(3 0 9) (381)
Earnings before interest, tax, other gains and losses(10,901) 10,134
Other (losses)/gains(21) 38
Earnings before interest and tax(10,92 2) 10,172
Finance income 268 243
Finance costs(3 ,614) (2,9 24)
(Loss)/Profit before tax(14,268) 7,491
Tax credit/(expense) 3,874 (2,143)
(Loss)/Profit for the period attributable to owners of the company(10,394) 5,348
Items that may subsequently be reclassified to profit or loss
Other comprehensive income/(loss) - hedging reserve 215 (272)
Total comprehensive (loss)/income(1 0,179) 5,076
Basic earnings per share (cents)(6 . 2) 3.2
Diluted earnings per share (cents)(6 . 2) 3.1
The accompanying notes form part of these financial statements.

3
STEEL & TUBE HALF YEAR REPORT 2025
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2024
Share
capital
$000
Retained
earnings
$000
Hedging
reserve
$000
Treasury
shares
$000
Share-
based
payments
$000
Total
equity
$000
Balance at 1 July 2024 155,127 42,050 (26) - 1,039 198,190
Comprehensive income
Loss after tax - (10,394) - - - (10,394)
Other comprehensive income
Hedging reserve (net of tax) - - 215 - - 215
Total comprehensive (loss)/income - (10,394) 215 - - (10,179)
Transactions with owners
Dividends paid - (3, 348) - - - (3, 348)
Employee share schemes 285 234 - - (237) 282
Dividend reinvestment plan 233 - - - - 233
Unaudited balance at 31 December 2024 155,645 28,542 189 - 802 185,178
Balance at 1 July 2023 1 5 7,1 6 8 52 ,741 9 (2,896) 1,132 208,154
Comprehensive income
Profit after tax - 5,348 - - - 5,348
Other comprehensive (loss)/income
Hedging reserve (net of tax) - - (272) - - (272)
Total comprehensive income/(loss) - 5,348 (272) - - 5,076
Transactions with owners
Dividends paid - (6,6 39) - - - (6,6 39)
Employee share schemes 834 - - - (219) 615
Unaudited balance at 31 December 2023
158,002 51,450 (263) (2,896) 913 207,206
The accompanying notes form part of these financial statements.

4
STEEL & TUBE HALF YEAR REPORT 2025
BALANCE SHEET
As at 31 December 2024
Notes
Unaudited
December
2024
$000
Audited
June 2024
$000
Current assets
Cash and cash equivalents 1 7, 5 1 4 8,699
Trade and other receivables 42,034 5 8 ,9 12
Contract assets 3,312 4,9 2 5
Inventories4 109, 595 121,320
Income tax receivable 4,812 4,640
Derivative assets 1,238 55
178,505 198,551
Non-current assets
Loan receivable 1,582 1,532
Deferred tax 9,300 5,714
Property, plant and equipment 40,822 40,010
Intangibles 12,836 12,665
Right-of-use assets 91,218 95,337
155,758 155,258
Total assets 334,263 353,809
Current liabilities
Trade and other payables38,365 41,022
Provisions 412 1,099
Derivative liabilities 6 170
Short term lease liabilities 15,255 14,367
54,038 56,658
Non-current liabilities
Trade and other payables 515 -
Provisions1,329 1,335
Long term lease liabilities 93,203 9 7, 6 2 6
95,047 98 ,961
Equity
Share capital 155,645 155,127
Retained earnings28,542 42,050
Other reserves 991 1,013
185,178 198,190
Total equity and liabilities334,263 353,809
Susan Paterson ChairKaren Jordan Director
These financial statements and the accompanying notes were authorised by the board on 23 February 2025.
For the board:
The accompanying notes form part of these financial statements.

5
STEEL & TUBE HALF YEAR REPORT 2025
STATEMENT OF CASH FLOWS
For the six months ended 31 December 2024
Notes
Unaudited
December
2024
$000
Unaudited
December
2023
$000
Cash flows from operating activities
Customer receipts 215,438 282,529
Interest receipts 218 243
Payments to suppliers and employees(188,906) (233,388)
Payments for interest on leases(3 ,16 6) (2,468)
Income tax payments(28) (7,758)
Interest payments(4 0 8) (4 43)
Net cash inflow from operating activities 23,148 38,715
Cash flows from investing activities
Property, plant and equipment disposal proceeds 12 17
Property, plant and equipment and intangible asset purchases(3,887) (4,4 43)
Net cash outflow from investing activities
(3,875) (4,426)
Cash flows from financing activities
Dividends paid(3 ,114) (6,6 39)
Payment for leases( 7, 3 4 4) ( 7, 8 7 2)
Net cash outflow from financing activities
(10,458) (14, 511)
Net increase in cash and cash equivalents 8,815 19,7 78
Cash and cash equivalents at the beginning of the period 8,699 6,481
Cash and cash equivalents at the end of the period
1 7, 5 1 4 26,259
Represented by:
Cash and cash equivalents 1 7, 5 1 4 26,259
1 7, 5 1 4 26,259
The accompanying notes form part of these financial statements.

6
STEEL & TUBE HALF YEAR REPORT 2025
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2024
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
General Information
Steel & Tube Holdings Limited (the company or Steel & Tube) is registered under the Companies
Act 1993 and is a FMC Reporting Entity under the Financial Markets Conduct Act 2013. The
company is a limited liability company incorporated and domiciled in New Zealand. The group
comprises Steel & Tube Holdings Limited and its subsidiaries.
The registered office of the company is 7 Bruce Roderick Drive, East Tamaki, Auckland, 2013,
New Zealand.
These interim financial statements have been reviewed, not audited, and were approved for
issue on 23 February 2025.
These interim financial statements are presented in New Zealand dollars and rounded to the
nearest thousand.
Basis of Preparation
The group is a for-profit entity. The interim financial statements have been prepared in
accordance with, and comply with, New Zealand Generally Accepted Accounting Practice (NZ
GAAP). They comply with NZ IAS 34: Interim Financial Reporting and the NZX Main Board Listing
Rules (issued 24 July 2024).
These interim financial statements do not include all the information required for an annual
financial report and consequently should be read in conjunction with the audited financial
statements of the group for the year ended 30 June 2024. Non-GAAP measures shown in the
interim financial statements are defined in the 2024 Annual Report.
These interim financial statements have been prepared using the same accounting policies and
methods of computation as the financial statements for the year ended 30 June 2024.
The preparation of the interim financial statements requires the exercise of judgements that
affect the application of accounting policies, the reported amounts of assets and liabilities,
and income and expenses. Where applicable and based on information available at the time of
preparing the interim financial statements, the group has updated its judgements, estimates and
assumptions adopted since the audited financial statements of the group for the year ended 30
June 2024.
These interim financial statements have been prepared on a going concern basis as the group
will be able to discharge its liabilities.
The carrying value of all financial instruments approximates fair value. All financial instruments
are held at amortised cost, with the exception of derivative instruments which are accounted
for at fair value through profit or loss. The derivative instruments comprise forward foreign
exchange contracts, the fair value of which are calculated using forward exchange rates that are
quoted in an active market. All financial instruments accounted for at fair value through profit or
loss are classified as level 2 of the fair value hierarchy. The group applies hedge accounting and
where derivative instruments are designated as hedging instruments in a cash flow hedge, fair
value gains/losses are recognised in other comprehensive income and released either to profit
or loss or the hedged item when the forecast transaction takes place.

7
STEEL & TUBE HALF YEAR REPORT 2025
2. EXPENSES
Unaudited
December
2024
$000
Unaudited
December
2023
$000
Cost of sales and operating expenses:
Inventories expensed in cost of sales142,785 1 8 7, 3 5 3
Employee benefits3 7,1 2 0 36,959
Depreciation and amortisation 11,483 11,000
Information technology expenses 3,605 3,538
Defined contribution plans 992 1,027
Directors' fees 321 321
Short term and low value lease costs 87 157
Impairment loss/(reversal) on trade receivables 77 (129)
Foreign exchange losses/(gains) 11 (260)
Other expenses10,178 11,333
Total cost of sales and operating expenses206,659 251,299
Inventory sold during the period is expensed as cost of sales. Depreciation of $0.9m (31 December
2023: $0.9m) related to equipment used to manufacture products is included in cost of sales.
Depreciation of right-of-use assets and other depreciation is included in operating expenses.
Information technology expenses disclosed in the above table excludes SaaS upfront
expenditure. This has been disclosed separately on the Statement of Profit or Loss and Other
Comprehensive Income. Employee benefits expense in the current period include restructuring
costs of $0.2m recognised as part of a board approved restructuring plan.
Included in the above table is $0.9m of Project Strong costs, primarily within employee benefits.
Project Strong is a board approved integrated transformation project and involves increasing
the group’s warehouse capacity. It includes exiting the Avondale site, increasing palletised
product at Bruce Roderick site and optimising processing across Auckland.
3. OPERATING SEGMENTS
The group has identified two reporting segments as at 31 December 2024 having regard for
the criteria outlined in NZ IFRS 8 Operating Segments (NZ IFRS 8). The group’s Chief Operating
Decision Maker (being the CEO) receives financial reports which aggregate the activities of
the group’s various operating segments into two distinct divisions, being Distribution and
Infrastructure.
These reportable segments have been determined by having regard to the nature of products,
services and processes the various Business Units undertake to service customers. The group
has a diverse range of customers from various industries, with no single customer contributing
more than 10% of the group’s revenue.

8
STEEL & TUBE HALF YEAR REPORT 2025
The group derives its revenue from the distribution and processing of steel, metal and
associated products. Within the Distribution business, the primary focus is on the distribution
of steel and metal products and fasteners, servicing similar customer groups, sharing similar
business models and trading skills, and using similar sales channels. The majority of product is
traded and sales staff are tasked to know the full range of products. Within the Infrastructure
business, product is predominately steel product which is bought and processed/manufactured
in warehouse facilities for project/contract customers.
The CEO uses EBIT as a measure to assess the performance of segments. The segment
information provided to the CEO for the period ended 31 December 2024 is as follows:
December 2024
Distribution
$000
Infrastructure
$000
Reconciled
to group
$000
Timing of revenue recognition
At a point in time 114,664 54,295 168,959
Over time - 2 7, 0 6 8 2 7, 0 6 8
Revenue from external customers 114,664 81,363 196,027
Depreciation and amortisation(6, 261)(5,222)(11,483)
Expenses(115,201)(80, 265)(195,4 6 6)
Segment EBIT (6,798)(4,1 2 4)(10,92 2)
Interest on leases (1,74 4)(1,422)(3 ,16 6)
Interest - others (net)(180)
Reconciled to group loss before tax(14,268)
December 2023
Distribution
$000
Infrastructure
$000
Reconciled
to group
$000
Timing of revenue recognition
At a point in time 153,144 64,817 217,961
Over time - 43,789 43,789
Revenue from external customers 153,144 108,606 261,750
Depreciation and amortisation(6,521) (4,479) (11,000)
Expenses
(141,821) (98,757) (240, 578)
Segment EBIT 4,802 5,370 10,172
Interest on leases (1, 538) (930) (2 ,468)
Interest - others (net)(213)
Reconciled to group profit before tax 7, 4 9 1

9
STEEL & TUBE HALF YEAR REPORT 2025
Operating segments are reported in a manner consistent with the internal reports that the CEO
uses to assess performance. The operating segments include the reallocation of the head office
function costs to respective segments. Comparative figures have been amended to align with
current period presentation.
Depreciation and amortisation recognised as at 31 December 2024 is inclusive of depreciation
recognised under NZ IFRS 16 Leases, which is in line with the financial reports received by the CEO.
Interest recognised under NZ IFRS 16 Leases is shown separately in the financial reports provided
to the CEO. Other interest income and expense are not allocated to segments as these are
driven by the central treasury function, which manages the cash position of the group.
Assets and liabilities are reported to the CEO on a group basis, and are not separately reported
with respect to the individual operating segments.
Sales between segments are eliminated on consolidation. The amounts provided to the CEO
with respect to segment revenue are measured in a manner consistent with that of the financial
statements.
4. INVENTORY
The group holds inventories valued at $109.6m (30 June 2024: $121.3m).
Inventories ($000s)
Goods in transit
Provision for
write-down
Finished goods
at cost price
96,969
14,446
(1,820)
$109,595
Dec 2024
1 1 7, 241
6,126
(2,047)
$121,320
Jun 2024
5. IMPAIRMENT TESTING
Key Judgement - Impairment Testing
NZ IAS 36 Impairment of Assets (NZ IAS 36) requires the group to assess at the end of each
reporting period for any indicators of impairment and also to test the recoverable amount of
the group’s assets against its carrying value to assess whether there is any indication that an
asset may be impaired. The recoverable amount is the higher of an asset’s fair value less costs of
disposal (FVLCD) and value-in-use (VIU).
As at 31 December 2024, the group’s market capitalisation was $143.0m and the carrying value of
its net assets was $185.2m. Accounting standards consider this to be an indicator of impairment.
The market capitalisation value excludes any control premium and may not reflect the value of
100% of the group’s net assets.

10
STEEL & TUBE HALF YEAR REPORT 2025
For the purpose of assessing impairment, assets are grouped in the smallest identifiable group
of assets that generates cash inflows that are largely independent of the cash inflows from other
assets or groups of assets (cash generating unit or CGU), which as at 31 December 2024 were
identified as being Distribution, Reinforcing/CFDL and Rollforming.
To complete the impairment testing, management assessed the recoverable amount of each
of the CGU of which goodwill, property plant and equipment and finite life intangible assets
have been allocated by undertaking a VIU calculation for each of the CGUs. A VIU calculation
is a valuation based on forecast cash flows. These forecast cash flows are discounted back
to present value to estimate a value for the CGU. If the VIU exceeds the carrying value of the
assets, no impairment is recognised. The recoverable amounts of the CGU were estimated
based on the following key assumptions:
Key AssumptionsDistributionReinforcing/CFDLRollforming
Revenue growth (first 3-year CAGR)2 .9 %5.5%3.4%
Year 4-5 growth rate (revenue)7.0% - 9.0%5.5% - 10.0%8.5%
Discount rate (post tax)11.2%11.4%11.4%
Discount rate (pre tax)14.4%14.6%14.3%
The forecast 5-year period was based on the board or CEO approved 3-year forecast for 2025
to 2027, and based on forecast expectation of future outcomes, taking into account past
experience, sector analysis and adjusted for anticipated revenue growth/decline for the outer
years (2028 to 2030). Terminal growth rate of 2.25% was applied to 2030 and thereafter.
The group has conducted analysis of the sensitivity of the impairment test to changes in key
assumptions used to determine the recoverable amounts for the applicable CGUs. The group
identified that a reasonably possible change in key assumptions could cause the carrying
amount to exceed the recoverable amount.
Input required for the VIU to equate to the
carrying value
Key AssumptionsDistributionReinforcing/CFDLRollforming
Discount rate (post tax)12.3%12.5%16.7%
Revenue growth (first 3-year CAGR)1.8%4.2%(0.6%)
The group concluded that the recoverable amount of each of the CGU were higher than
their respective carrying values and therefore no impairment was considered necessary at
31 December 2024.
The group has also concluded that no reversal of the previous impairment of intangible assets
should be made following an assessment that previous assumptions applied remain consistent
in the current period.

11
STEEL & TUBE HALF YEAR REPORT 2025
6. RELATED PARTY AND SHARE BASED PLANS
The group has related party relationships with its subsidiaries and with key management
personnel.
There have been no material changes in the nature or amount of related party transactions for
the group since 30 June 2024.
7. SUBSEQUENT EVENTS
On 21 February 2025, the board resolved that no interim dividend would be declared for the
period ended 31 December 2024.
On 23 February 2025, the group entered into a conditional sale & purchase agreement to
purchase the business and assets of Perry Metal Protection Limited and WSB Hamilton Limited.
The purchase price is $43.5m plus up to $6m of contingent consideration, both to be paid 70%
in cash and 30% in equity of the company. The total amount of the contingent consideration
will be based on the financial performance of the assets acquired over a 2 to 3 year period from
acquisition.
The group expects to complete the acquisition during the second half of FY25.

12
STEEL & TUBE HALF YEAR REPORT 2025
© 2025 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Auditor’s Review
Report
To the shareholders of Steel & Tube Holdings Limited (Group)
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 2 to 11
do not:
‒ present fairly, in all material respects, the
Group’s financial position as at 31
December 2024 and its financial
performance and cash flows for the 6 month
period then ended; and
‒ comply with New Zealand Equivalent to
International Accounting Standard 34
Interim Financial Reporting (NZ IAS 34)
issued by the New Zealand Accounting
Standards Board.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
‒ the interim balance sheet as at 31
December 2024;
‒ the interim statements of profit or loss and
other comprehensive income, changes in
equity and cash flows for the 6 month period
then ended; and
‒ notes, including material accounting policy
information.
Basis for conclusion
We conducted our review of the financial statements in accordance with NZ SRE 2410 (Revised) Review of
Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our
responsibilities are further described in the Auditor's Responsibilities for the Review of the interim consolidated
financial statements section of our report.
We are independent of Steel & Tube Holdings Limited in accordance with the relevant ethical requirements in
New Zealand relating to the audit of the annual financial statements and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Subject to certain restrictions, partners and employees of our firm may also deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. These matters have not impaired our
independence as auditor of the Group. The firm has no other relationship with, or interest in, the Group.
Use of this Independent Auditor’s Review Report
This report is made solely to the shareholders. Our review work has been undertaken so that we might state to
the shareholders those matters we are required to state to them in the Independent Auditor’s Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the shareholders for our review work, this report, or any of the conclusions we have formed.

13
STEEL & TUBE HALF YEAR REPORT 2025
Responsibilities of Directors for the interim consolidated financial
statements
The Directors on behalf of the Group are responsible for:
‒ the preparation and fair presentation of the interim consolidated financial statements in accordance with
NZ IAS 34; and
‒ implementing necessary internal control to enable the preparation of interim consolidated financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error.
Auditor's responsibilities for the review of the interim consolidated
financial statements
Our responsibility is to express a conclusion on the interim consolidated financial statements based on our
review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to
believe that the interim consolidated financial statements, taken as a whole, are not prepared, in all material
respects, in accordance with NZ IAS 34.
A review of the interim consolidated financial statements prepared in accordance with NZ SRE 2410 (Revised) is
a limited assurance engagement. The auditor performs procedures, consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and consequently does not enable us to
obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on the
financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Laura Youdan.
For and on behalf of:
KPMG
Auckland
23 February 2025

14
STEEL & TUBE HALF YEAR REPORT 2025
Registered Office
7 Bruce Roderick Drive, East Tamaki,
Auckland 2013, New Zealand
PO Box 58880, Botany, Auckland 2163,
New Zealand
Ph: +64 4 570 5000 Fax: +64 4 570 2453
Email: info@steelandtube.co.nz
Website: www.steelandtube.co.nz
Directors
Susan Paterson Chair and Independent
Director
Steve Reindler Independent Director
Christopher Ellis Independent Director
John Beveridge Independent Director
Karen Jordan Independent Director
Andrew Flavell Independent Director
Auditor
KPMG Auckland
18 Viaduct Harbour Avenue, Auckland 1010
Share Registry
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand
Ph: +64 9 488 8777 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz
Bankers
ANZ New Zealand
ANZ Centre, 23-29 Albert Street, Auckland 1010
Solicitors
Chapman Tripp Auckland
Level 34, PwC Tower, 15 Customs Street West
PO Box 2206, Auckland 1140
Financial Calendar
Half year results announced February
End of financial year 30 June
Annual results announced August
Annual report August
Stock Exchange
The company’s shares trade on the
New Zealand Exchange under the code STU
Directory

---

1H25 Results Presentation
For the six months ended 31 December 2024
24 February 2025

2
Acquisition of
Perry Metal
Protection

3
Perry Metal Protection Transaction Summary
The acquisition supports strategy of growing high value products and services
Transaction
•Acquisition of assets of Perry Metal Protection, Perry Grating and Waikato Sand Blasting for $43.5m
including $6.1m of inventory
•Performance based earnout payable end of year two, up to a value of $6m; option to extend earnout
to year three
Funding
•The acquisition, including earnout, is funded with a mixture of debt (70%) and equity (30%)
•The newly issued equity in Steel & Tube Holdings will result in 15,476,755 shares to be issued on
completion
Impact on Earnings
•Earnings accretive to Steel & Tube from day one
•More details to be provided at FY25 full year result on earnings and synergy
Conditional agreement
•Subject to multiple conditions including finalisation of finance, lease terms and environmental testing;
completion expected to be May 2025

4
Strategic Rationale
Strong fundamentals and stable earnings through the cycle
•Highly aligned customer base improving our service offer
•Provides earnings consistency throughout the cycle
•Identified synergies including further growth pathways
•Strong brands retained including Perry Metal Protection, Perry Grating and Waikato Sand Blasting
•Highly engaged management team and workforce
•High value business with supportive macro trends e.g. extends lifecycle of steel
•Market leading position in hot dip galvanising
•Nationwide reach with industry leading assets

5
Perry Metal Protection
•Privately held, established in 1974, nationwide footprint and market leading
position ~44% share in hot dip galvanizing
•Includes a complementary grating and sandblasting businesses
•113 staff across 6 locations
6 Sites
Nationwide

6
Business Overview – Key Metrics
•3-year average EBITDA multiple of 4.8x
•Estimated EPS 1.5c in first 12 months of ownership
10
8
9
-
2
4
6
8
10
12
FY22FY23FY24
Millions
Normalised EBITDA (pre IFRS16)
9
7
8
-
2
4
6
8
10
FY22FY23FY24
Millions
Normalised EBIT (pre IFRS16)
*The draft financial results presented have been extracted from management accounts provided during the due diligence process. These results
are based on a March fiscal year end.
*EBITDA multiple is calculated using purchase price over 3-year average historical earnings
33
35
36
-
500
1,000
1,500
2,000
2,500
-
10
20
30
40
FY22FY23FY24
Average Selling Price
($/tonne)
Revenue (Millions)
Revenue
RevenueAverage Selling Price

7
Integration Strategy
Strengthen fundamentals and leverage operational excellence
•Agreement follows a rigorous 6-month due diligence process
•Steering committee has been established to support the integration process with the involvement
from leaders in Steel & Tube and Perry Metal Protection
•Staff and customer communication is a key priority and already underway
•Integration team in place and action plan established, costs estimated at $0.8m
•Drawing on lessons from successful integration of Kiwi Pipe
•Initial assessment of synergy benefits $1m EBITDA per annum following integration

8
Proven M&A Track Record
Successful acquisitions over the past 4 years supporting business into the future
•Acquired 2021
•Increased share of
fasteners market
•Transaction Value $0.5m
•2-Year ROFE 71%
Kiwi Pipe & FittingsFasteners NZTransport Strategy
•Acquired 2022
•Building on position in
fire and water reticulation
•Transaction Value $9.1m
•2-Year ROFE 25%
•Acquired 2024
•Internalising margin from
local and regional
trucking routes
•Transaction Value $0.8m
•Forecast 1-year ROFE
198%

9
Steadily navigating weak economy
Strong fundamentals in place

10
-$9.5m
-184%
$0.6m
-97%
$2.0m
-91%
Results at a glance
Weak economic conditions impacting volumes and earnings
48,667t
-22%
$196.0m
-25%
Earnings Before Interest and Tax (EBIT), Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), Net Profit After Tax (NPAT) | Non-GAAP earnings reconciliation at the end of the presentation
Percentage variances compared against 1H24 unless otherwise stated
Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided
-2.2%
1H24: 7.6%
$23.1m
1H24: $38.7m
$36.0m
-3%
-$10.9m
-207%
-$10.4m
-294%
$109.6m
1H24: $128.6m
$17.5m
1H24: $26.3m
Volume
Normalised
EBITDA
Normalised
EBIT
NPAT
Normalised
OPEX
Inventory
Revenue EBITDA EBITROFE
Operating
Cash Flows
Net Cash

11
Key messages
Company is focused on delivering to its priorities
•Cycle looks to have bottomed out
•Strong fundamentals in place
•Prioritising cashflows and inventory
•Signs of market improvement, likely to build from mid-2025
•Further M&A opportunities remain

12
25
35
45
55
65
Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24
2
3
4
2
4
6
8
10
Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24
SQM (millions)
Consents $ (bn)
Non-Residential Consents
Value of ConsentsFloor Area (m2)
Manufacturing and Commercial
Manufacturing and commercial construction slow
Source: Statistics New Zealand, BNZ – BusinessNZ PMI, Infometrics
Performance of Manufacturing Index (PMI)
MANUFACTURING
34% of group sales
•PMI has reduced by 7% since December 2019
•PMI expanded for the first time in 23 months, increasing to
51.4 in January, up from 46.2 in December
COMMERCIAL
29% of group sales
•Non-residential consented floor area has reduced by 14%
YoY to December
•Sector has been impacted by high interest rates and slow-
down in Government activity

13
4
5
6
7
8
20
30
40
50
60
Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24
SQM (millions)
No. Consents (000s)
Residential Consents
Number of ConsentsFloor Area (m2)
Residential and Infrastructure
Residential in decline, delayed infrastructure
Source: Statistics New Zealand, BNZ – BusinessNZ PMI, Infometrics
RESIDENTIAL
13% of group sales
•Residential consented floor area has reduced by 10% YoY to
December
•Sector has been impacted by high interest rates and
slowdown in residential and retirement developments
INFRASTRUCTURE
8% of group sales
•Continued pause on large commercial projects – improved
funding conditions will stimulate activity
•Government fast-tracking projects of economic significance
– will benefit over the longer term
•$68bn infrastructure spend outlined in the May 24 budget
2
4
6
8
10
12
Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24
$bn
Infrastructure Activity

•Lowering interest rates
•Government investment in infrastructure
•Improved business confidence and
investment
•Recovery in consumer spending and the
housing market
Long term trends are favourable for Steel & Tube
Navigating near term softness; well positioned to capture the upside
Commercial
Residential
Manufacturing
Infrastructure

15
Actively managing market challenges
Market
Challenges
1H252H25FY26Response and Mitigation
Continuing
weak economic
drivers
HighHighMed
•Strong balance sheet and lean cost structure
•Expanding existing customer share of wallet
•Focus on higher value products and services
•Diversified business with limited exposure to any one sector
Lack of
infrastructure
spend
HighHighMed
•Staying close to Government and industry players
•Well positioned for commencement of Government investment into infrastructure
•Specialist expertise and technical know-how
Commodity
price volatility
MedMedMed
•Actively managing inventory cover
•Buying the right products, at the right time
•Monitoring exchange rates, disciplined buying strategy
•Focus on dollar margin capture on existing inventory
Geo-political
threats
MedMedMed
•Monitoring events and maintaining diversity of suppliers
•Secured shipping lanes
Cashflow
management
LowMedMed
•Tight control and management of cash, working capital and debtors - minimal levels of
bad debt despite increasing business liquidations, particularly within construction

Business
strategy

17
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 and
Services

18
100
125
150
175
200
-
10
20
30
40
50
60
70
FY20FY21FY22FY23FY245%10%15%20%FY23
Vol
FY22
Vol
Volume (ktonnes)
EBIT ($m)
VolumeEBIT
HistoricalVolume scenarios
Scenario modelling FY24’s operating leverage
at increasing product volume levels
None of the modelling outlined on this page is a prediction, forecast or guide for FY25. Scenario product
margins have been kept constant with FY24 and variable costs flexed proportionately to the increase in
volume. EBIT increases are based on management estimates only.
Operating leverage
Controlling the controllables
•Focus on higher value products and
lower costs driving strong operating
leverage
•Large proportion of fixed costs, EBIT
scales disproportionately to volume
•Enables magnification of earnings
growth when activity returns
35% increase in
earnings
Volume Growth

19
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1H232H231H242H241H25
$m
Added Value from Strategic
Investments
Revenue from investments
EBITDA from investments
Growth investments adding value
32
Recent growth initiatives and M&A
Plate ProcessingValue add service (Auckland &
Wellington)
AluminiumHigh value product, continuing to
expand range
Last mile freight
delivery
Exceeding expectations
Kiwi Pipe &
Fittings
Strong earnings growth, successfully
continuing to expand ex-Auckland
Fasteners NZHigh quality, strong ongoing demand,
continuing to expand range

20
Covid-19
-210%
-180%
-150%
-120%
-90%
-60%
-30%
0%
30%
60%
(150)
(125)
(100)
(75)
(50)
(25)
0
25
50
FY15FY16
FY17
FY18FY19
FY20
FY21
FY22FY23
FY24
1H25
Net Debt/Equity
$m
Net (Debt)/Cash Position
Net (Debt)/CashNet Debt to Equity
Capital management
Balance sheet providing resilience and opportunity through the cycle
32
•Net cash $17.5m end-Dec 24
•Strong cashflows supporting strategic
initiatives
•Priority capital allocation to
maintenance spend and strategic
investments
•Capacity to leverage current market
opportunities and invest in growth
when the cycle turns
•No borrowings, $100m undrawn
facility in place

21
2H25 focus and priorities
Tight control through the cycle; operating leverage as demand returns
•Laser focus on capturing revenue and driving profitability
•Expand offering and sales to current customers – cross-sell opportunities
•Continue to take cost out, while retaining ‘muscle’
•Continued tight management of inventory, retaining ability to quickly scale up
•Support margins through higher value products and services

22
Financial
results

23
•Volumes continue to be suppressed in a
recessionary environment
•Revenues reflect decreased volumes and selling
price pressure from competitors
•Margins impacted by product mix and competitive
pricing
•Cost out programme mitigating inflationary
pressure
•No 1H25 dividend has been declared
Financial performance
Group financial summary
*Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments. Further details included in appendix to this presentation.
$m1H252H241H24
Revenue
196.0217.4261.8
Volume (Ktonnes)
48.753.062.6
GM$/tonne
762871926
EBITDA
0.610.221.2
Normalised EBITDA*
2.013.921.9
EBIT
(10.9)(0.6)10.2
Normalised EBIT*
(9.5)3.211.3
NPAT
(10.4)(2.7)5.3
EPS ($)
(0.06)(0.02)0.03
Net operating cash flow
23.13.538.7
Dividend (cents per share)
-2.04.0

24
0
20
40
60
80
100
0
50
100
150
200
250
300
350
1H222H221H232H231H242H241H25
Tonnage (000s)
Sales ($m)
Sales & Volume
VolumeRevenue
Revenue
Focus on customer, high value products
and services, and pricing disciplines
•Reduction in volume and revenue compared to
1H24 driven by the continuation of challenging
economic conditions
•Softened customer demand across complete
range of products

-
1,000
2,000
3,000
4,000
5,000
-
50
100
150
200
250
300
350
1H222H221H232H231H242H241H25
Average Selling Price ($/t)
Sales ($m)
Sales & Average Selling Price
Average Selling PriceRevenue

25
778
820
850
850
926
871
762
1032
1081
1126
1162
1252
1220
1155
1H222H221H232H231H242H241H25
Margin $/tonne
Gross Margin/tonneProduct Margin/tonne
22.8%
21.8%
21.7%
20.5%
22.1%
21.2%
18.9%
30.3%
28.8%
28.7%
28.0%
29.9%
29.7%
28.7%
1H222H221H232H231H242H241H25
Margin %
GM%PM%
•Competitor price pressure has flowed through
to margins
•Continued focus on Gross Margin $/tonne
through customer value add, cross selling,
pricing discipline and cost control
•Strategic focus on higher value products and
services
•Margins expected to improve as economic
conditions return to a more normal setting
Product Margin includes freight
Gross Margin includes freight, direct and sub-contract labour
Competitive margins
Declining margins reflect economic conditions

26
Normalised operating expenses
Cost out programme more than offsetting inflationary pressures
Targeting annualised $7m (versus $5m
planned) of operating expense savings in FY25
•Ongoing focus on streamlining operational costs
•Normalised operating expenses reduced by $1m
from 1H24
•Cost initiatives focused on headcount
optimisation, tight control of discretionary
spending, procurement efficiencies and other
savings
•Inflationary pressure – wage/salary inflation has
returned to normal levels along with other costs
as high interest rates continue to cool the
economy
Normalised Opex excludes Project Strong costs of $0.9m, restructuring costs of $0.2m and the $0.3m impact of SaaS, as well as non-trading adjustments
previously reported, Normalised Opex excludes D&A
*Estimated inflation of 2.6% measured as the average movement in CPI between the periods of 1H24 and 1H25

27
Normalised EBITDA
Volume impacts partially offset by
operating cost reductions
•Volume decline consistent with New
Zealand’s recessionary environment
•Pricing impact reflective of market
competitiveness and product mix
•Renewed focus on higher value
products, improved pricing
disciplines, leveraging analytics and
digital capabilities
•Net Opex savings of $1.2m from 1H24
Normalised EBIT has been adjusted to exclude non-trading adjustments.
Further details included in appendix to this presentation.

28
•Disciplined management of working capital
•Cash balance of $17.5m, no borrowings, $100m
facility in place to fund growth
•Priority capital allocation on maintenance spend
(20.7%) and strategic investments (55.1%)
Inventory:
•Managing inventory levels carefully to ensure
best use of working capital
•Active stewardship and use of detailed analytical
tools to ensure investments are made in higher
value products
•Investing in key inventory lines for expected
return in demand
Balance sheet summary
Robust balance sheet, capable of
investing in growth
$m1H252H241H24
Trade and other receivables51.468.561.3
Inventories109.6121.3128.6
Trade and other payables(54.0)(56.7)(61.7)
Working Capital107.0133.1128.2
Total Facility
100.0100.0100.0
Borrowings
---
Available Facility/Undrawn
100.0100.0100.0
Cash and cash equivalents17.58.726.3
Borrowings---
Net Cash/(Debt)17.58.726.3
Net Tangible Assets (NTA) 172.3185.5194.0
ROFE (%)(2.2%)4.9%7.6%

29
Inventory management
Managing inventory levels to ensure best use
of working capital
•1H25 inventory in line with activity, coupled with
further improvements and optimisations
•Unit finished product prices remain at elevated
levels
•Active stewardship and use of detailed analytical
tools to ensure investments are made in higher
value products
•Focus on high value, high demand products

30
Cashflow
Focus on cash management
•Cash balance of $17.5m at 31 December
2024, up from $8.7m at the end of June
2024
•Disciplined cash flow management has
ensured strong cash collections, despite
economic/construction downturn
•Careful inventory management and
supply chain optimisation

Outlook

•Cycle appears to have bottomed out
•Starting to see improved activity and sentiment from customers, with momentum
expected to build from mid-2025 (1H26)
‒Manufacturing is poised to grow, supported by recovery of the domestic and
international markets
‒Commercial and residential projects will improve as interest rates reduce and
funding conditions improve
‒Infrastructure activity to increase following fast track legislation and Government
infrastructure investment
•Steel pricing expected to remain elevated
•Long term drivers of demand remain strong
Market outlook

Summary key messages
Well positioned for economic improvement
•Steadily navigating the weak economy
•Focused on maximising the benefit of M&A activity
•Prioritising cashflows and inventory
•Well placed to deliver material earnings growth as economic conditions
improve

34
Appendices

35
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
1H25 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 periods ended 31
December 2024, 30 June 2024 and 31 December 2023 reconcile to
normalised earnings. Non-trading adjustments of $(1.4) million are
included in the 1H25 EBIT and EBITDA.
Reconciliation of Reported to Normalised EarningsEBITDAEBIT
$000s1H252H241H241H252H241H24
Reported 561 10,24321,172 (10,922) (603)10,172
Project Strong costs*906 2,382319906 2,463729
Business restructuring costs227 550- 227 550-
Software as a Service (SaaS) upfront expenditure309 763381 309 763381
Normalised2,003 13,93821,872 (9,480) 3,17311,282
*Project Strong is a board approved integrated transformation project and involves increasing our palletised warehouse capacity, improving our service offering and increasing our
productivity. It includes exiting the Avondale site, increasing palletised product at Bruce Roderick Drive site and optimising processing across Auckland.
Costs included additional labour, relocation costs, temporary storage, accelerated depreciation and other items.
This project will be completed during FY25.

36
Glossary of terms
EBIT: Earnings/(Loss) before the deduction of interest and
tax. This is calculated as profit for the period 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 period 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)
Normalised EBIT/EBITDA: This means EBIT and EBITDA
excluding non-trading adjustments and unusual
transactions
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

37
•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 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
a 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.
•Several 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

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023


Results for announcement to the market
Name of issuer Steel & Tube Holdings Limited
Reporting Period 6 months to 31 December 2024
Previous Reporting Period 6 months to 31 December 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$196,027 (25.1%)
Total Revenue $196,027 (25.1%)
Net profit/(loss) from
continuing operations
$(10,394) (294.4%)
Total net profit/(loss) $(10,394) (294.4%)
Interim Dividend
Amount per Quoted Equity
Security
n/a
Imputed amount per Quoted
Equity Security
n/a
Record Date n/a
Dividend Payment Date n/a
Current period Prior comparable period
(31 December 2023)
Net tangible assets per
Quoted Equity Security
$1.02 $1.16
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Non-GAAP financial information
Steel & Tube uses several non-GAAP measures when
discussing financial performance. This includes normalised
EBITDA and normalised EBIT. 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. Reconciliations of non-GAAP
measures to GAAP measures are detailed within this
announcement.
Steel & Tube’s normalised EBITDA is $2.0m for 1H25 (1H24:
$21.9m, 90.8% decrease) and normalised EBIT is $(9.5m) loss
for 1H25 (1H24: $11.3m, 184.0% decrease). Further details on
the unusual transactions/non-trading adjustments are included in
the investor presentation for the year ended 31 December 2024.

Definitions:
• EBITDA: This means earnings before interest, tax,
depreciation and amortisation and is calculated as profit for
the period before net finance costs, tax, depreciation and
amortisation
• Normalised EBITDA: This means EBITDA after normalisation
adjustments
• EBIT: This means earnings before interest and tax and is
calculated as profit for the period before net finance costs
and tax
• Normalised EBIT: This means EBIT after normalisation
adjustments
• Normalisation adjustments: These are transactions that are
unusual by size or nature in a particular accounting period.
Excluding these transactions can assist users in forming a
view of the underlying performance of the Group. 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

Authority for this announcement
Name of person

authorised
to make this announcement
Mark Malpass
Contact person for this
announcement
Mark Malpass
Contact phone number +64 27 777 0327
Contact email address mark.malpass@steelandtube.co.nz
Date of release through MAP

24 February 2025

Unaudited financial statements accompany this announcement.

---

Company Announcement
24 February 2025







Steel & Tube Holdings Limited, PO Box 58880, Botany, Auckland 2163, New Zealand
P +64 4 570 5000 www.steelandtube.co.nz
Steel & Tube 1H25 Interim Result and Acquisition

Steadily navigating a weak economy, strong fundamentals in place

Steel & Tube Holdings Limited (NZX: STU), has announced its results for the six months ended 31 December
2024, as it continues to steadily navigate a weak economy and position itself for a return in demand. A
relentless focus on customer service, cost management and efficiencies has improved the company’s resilience.

1H25 snapshot

• Volumes and revenue impacted by weak economic conditions which have affected customer activity
and demand
• Robust balance sheet with net cash of $17.5m and a $100m bank facility providing resilience and
optionality for investment in growth
• Focus on higher value products and lower costs driving strong operating leverage which will expand
earnings growth when activity returns
• Early signs of market improvement, anticipated to build momentum from mid-2025; long term macro
trends remain favourable
• Steel & Tube well positioned to deliver material earnings growth as activity returns; significant pipeline
of work and structural tailwinds ahead
• Post-period end, signed conditional agreement for acquisition of Perry Metal Protection, Perry Grating
and Waikato Sand Blasting; completion expected May 2025

Chief executive, Mark Malpass, said: “Steel & Tube is a cyclical business and our 1H25 results are reflective of
the recessionary environment. Demand for steel remains at the lowest levels since the 1990s. Our team
continues to deliver excellent service to our customers with a focus on maintaining market share.”

1H25 Financial Performance
$m 1H25 2H24 1H24
Revenue 196.0 217.4 261.8
Volume (Ktonnes) 48.7 53.0 62.6
EBITDA 0.6 10.2 21.2
Normalised EBITDA
1
2.0 13.9 21.9
EBIT (10.9) (0.6) 10.2
Normalised EBIT
1
(9.5) 3.2 11.3
NPAT (10.4) (2.7) 5.3
Net operating cash flow 23.1 3.5 38.7
Dividend (cents per share) - 2.0 4.0

Revenue of $196.0m was reflective of weaker customer demand across all sectors and products. Competitor
pricing pressure has flowed through to margins. Gross margin $/tonne remains a continued focus through
customer value add, cross selling, pricing discipline and cost control, as well as a strategic focus on higher
value products and services. Normalised earnings were down year on year, with Normalised EBITDA of $2.0m
and Normalised EBIT of $(9.5)m. The company reported a net loss after tax of $(10.4)m.

1
Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments of $1.4m in 1H25. More information is
available in the Results presentation.

The company has kept tight control over working capital, with inventory levels further reduced to $109.6m (30
June 2024: $121.3m) and a priority investment into high value products and key inventory lines.

Steel & Tube ended the half year with no bank debt and a positive cash balance of $17.5m, representing a
~$9m improvement on 30 June 2024, with an undrawn $100m bank facility in place to support growth.
Disciplined cash flow management has ensured strong cash collections, despite economic and construction
downturn.

Chair, Susan Paterson commented “We are well placed to deliver material earnings growth as economic
conditions improve. Our focus on higher value products and lower costs is driving a continuing improvement
in our operating leverage which will expand our earnings growth when volumes return. Growth and M&A
investments to date are adding value and we have a strong balance sheet providing optionality. Current market
conditions are presenting new M&A opportunities and today we have announced the acquisition of the assets
and business of Perry Metal Protection, Perry Grating and Waikato Sand Blasting.”

Perry Metal Protection, Perry Grating and Waikato Sand Blasting Transaction
Owned by the Perry Group, this is New Zealand’s largest and only ISO certified hot dip galvanising business. In
addition to the galvanising business (90% of the earnings of the operations to be acquired), the transaction
also includes smaller grating and sandblasting businesses.

The total acquisition price is $43.5m, with a potential additional, up to, $6m payment based on the financial
performance of the assets over a 2-to-3-year period, post-acquisition. Payment of both the initial acquisition
price and the performance payment will be 70% in cash and 30% in newly issued equity in Steel & Tube
Holdings with 15,476,755 shares @ $0.8432 per share to be issued on completion. The acquisition price
represents a 3-year historical EBITDA (pre NZ IFRS16 Leases) multiple of 4.8x.

The customer base is highly aligned to Steel & Tube’s and offers two-way cross selling opportunities and the
ability to improve Steel & Tube’s service offering to existing customers. Synergy benefits are estimated to be
~$1m per annum following integration.

The transaction is conditional on finalisation of financing, lease terms, environment testing and several other
minor conditions. Completion is expected in May 2025 and the transaction will be earnings accretive to Steel &
Tube from day one.

Further details of this acquisition can be found the investor presentation released to the NZX today.

Dividend

Given the ongoing weak economy, the Board has taken a prudent approach to cash management and no
interim dividend has been declared.

Outlook

Mark Malpass commented: “While we expect the market to remain challenged for the next few months, the
cycle appears to have bottomed out, and we are seeing increased customer enquiries and tenders as business
confidence starts to improve. Activity is expected to start building momentum from mid-2025 (1H26) and we
are well-positioned to navigate the current weaker cycle and achieve material earnings growth as market
activity returns. There is a substantial pipeline of work ahead and Steel & Tube is well positioned to capitalise
on this.

“Growth opportunities continue to present themselves and we look forward to welcoming Perry Metal
Protection, Perry Grating and Waikato Sand Blasting to our group and adding further value for our customers.”

Investor call – webcast and conference call details

Date and time: 24 February 2025, NZST 10.00am
Webcast: https://ccmediaframe.com/?id=RM8SbBJm
To register for the conference call: https://s1.c-conf.com/diamondpass/10044244-7qhfyg.html
A full replay of the presentation will be available at the same link shortly after the conclusion of the live
presentation.

ENDS

For media or investor enquiries, please contact: Jackie Ellis Tel: +64 27 246 2505 or
email: jackie@ellisandco.co.nz

For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz
Richard Smyth
Steel & Tube CFO
Tel: +64 21 646 822
Email: richard.smyth@steelandtube.co.nz