Steel & Tube - 2025 ASM Presentation and Speeches

2025 Annual
Shareholders’
Meeting
22 October 2025

Chair
Susan Paterson

3
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Agenda
•Chair and CEO
Presentations
•Discussion
•Resolutions
•Other Business
•Meeting Close/
Refreshments
4

Your Board
Karen Jordan
Independent Director
Appointed Dec 2020
Christopher Ellis
Independent Director
Appointed Sep 2017
Susan Paterson
Chair & Independent Director
Appointed Jan 2017
Steve Reindler
Independent Director
Appointed Aug 2017
John Beveridge
Independent Director
Appointed Aug 2019
Standing down at end
of 2025 ASM
Andrew Flavell
Independent Director
Appointed Oct 2021
Standing for
re-election

6
Long term commitment to strategic goals
Customer
Growth
Shareholder
Sustainability
The preferred supplier
for steel solutions and
products
Strengthening the
core and growing
higher value products
and services
Deliver increasing
value and returns for
our shareholders
Positive outcomes for
our business, our
people, our
communities and our
planet

7
Strategic pathways
Clear growth strategy in place, building on strong foundations to
strengthen the core and growth in high value products and services
•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

8
Click to view video

9
FY25 key financial measures
Cyclical business, impacted by recessionary economy
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 FY23 unless otherwise stated
Gross dividend yield based on share price at 30 June – FY24 $1.12
Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided
Revenue
$385.4m
FY24: $479.1m
NPAT/NLAT
-$24.4m
FY24: $2.6m
Normalised
OPEX
$69.9m
FY24: $70.1m
Normalised EBIT
-$21.4m
FY24: $14.5m
Normalised
EBITDA
$2.1m
FY25: $35.8m
Operating
Cash Flows
$10.4m
FY24: $42.2m
Net Debt/Cash
-$36.3m
FY24: $8.7m
Volume
101,716t
FY24: 115,535t

10
Priority topics for the Board
•Disciplined focus on strategy in a
challenging market
•Improving financial performance
•Value adding growth
•Risk management and resilience
•Ready the business for the economic
recovery
In the
Boardroom

CEO
Mark Malpass

12
Steel & Tube
Our purpose is to make life easier for
customers needing steel solutions
•A proud NewZealand company, trading
for over 70 years
•We offer NewZealand’s most
comprehensive range of steelproducts,
services and solutions
•Our stable of best-in-class businesses
are some of this country’s leadingsteel
suppliers
~900 team members
35 sites across NZ
* As at 1 September 2025
(includes Perry Metal Protection
– 100 team members and 6 sites)

13
Business underpinned by strong fundamentals
1.13
1.14
0
3.5
0
1
2
3
4
5
FY22FY23FY24FY25
Employee Satisfaction (eNPS
2
)
Employee Safety Measure (TRIFR
1
)
Emissions kgCO
2
e per tonne
3,4
40
42
50
42
0
20
40
60
FY22FY23FY24FY25
1.TRIFR: 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 and employee commute
4.Emissions kgCO2e per tonne excludes acquisitions during the year
All metrics exclude Perry’s except for TRIFR as shown
Customer Satisfaction (NPS
2
)
•Customer satisfaction
remains at high levels
•Safety outcomes are
positive, remain focused on
zero harm
•Employee satisfaction
remains in the top quartile
35
29
31
32
0
10
20
30
40
Mar-23Dec-23May-24Jun-25
eNPSTop Quartile
104
92
111
118
80
90
100
110
120
FY22FY23FY24FY25
kgCO2
-
e (000s)

14
FY25
Lookback

15
Recessionary conditions impacted across sectors
Diversified sector exposure, focused on growth markets
•Manufacturing: some improvement in early 2025, before
contracting again
•Commercial: businesses remain cautious around outlook
and significant investments
•Residential: weak market, some stabilisation seen from
early 2025
•Infrastructure: projects paused or delayed; limited
investment
•Others: recovery in the agricultural sector
•Expect to see cyclical recovery later in FY26, resulting in
improved activity across all sectors
35%
30%
12%
7%
7%
9%
Group
Revenue split by sector
Others (incl rural)
Reseller
Infrastructure
Residential
Commercial
Manufacturing

16
Strategic Initiatives
Strengthening the core
•Investments & Upgrades: acquired new
rollforming machine in Christchurch; and new
purlin machine and folder in Auckland
•Focus on Efficiency: new Auckland
warehousing project completed, delivering
increased efficiency and high DIFOTIS scores
•Winning with Customers: proven
execution and partnership approach driving
project wins
•Right sized teams to match demand;
investing in capability in areas that matter
Grow high value products and services
•Significant M&A: acquisition of Perry Metal
Protection, Perry Grating and Waikato Sand Blasting –
adding new market leading services to Steel & Tube’s
offer
•Extended Reach: expanded Kiwi Pipe & Fittings
offering into the South Island
•New Products: launch of QBT450 roofing profile
•Aluminium Growth: continuing to expand range in
response to positive customer demand
•Last Mile Logistics: added 13 trucks (total of 33),
providing more control over last mile service, delivery
and efficiency

17
•Challenging economic backdrop impacting
volumes and revenue
•Gross margin reflects lower volumes and
more competitive pressure on average sales
price
•2H volumes started to improve off low base;
margin pressure should ease as activity
continues to improve in FY26
•Normalised EBITDA remained positive
•Significant operating leverage for when
volumes return
Financial
performance
* FY24 and FY25 Normalised EBITDA and EBIT have been adjusted to exclude non-trading adjustments. Further details included in appendix to this presentation.
** Volumes and GM$/tonne have been restated to exclude Galvanizing steel tonnes processed and include zinc tonnes used as the steel tonnes processed do not belong to Steel & Tube.
$mFY25FY24Var
Revenue
385.4479.1 (93.7)
Volume (Ktonnes)
101.7115.5 (13.8)
GM$/tonne**
701901(200)
EBITDA
(2.5)31.4 (33.9)
Normalised EBITDA*
2.135.8 (33.7)
EBIT
(26.0)9.6(35.6)
Normalised EBIT*
(21.4)14.5 (35.9)
NPAT
(24.4)2.6(27.0)
Net Operating cash
flow
10.442.2
(31.8)

18
•Capital discipline focus on the right
acquisitions at the bottom of the
cycle
•Prudent management of working
capital in tough economic conditions
•Inventory - $14.7m (13%) of year end
inventory related to growth
investments ($5.9m – Perry’s)
•Utilised clean balance sheet for M&A
– net debt of $36.3m includes $30m
for Perry Metal Protection acquisition
$mFY25FY24Var
Trade and other receivables63.2 68.5 (5.3)
Inventories113.6 121.3 (7.9)
Trade and other payables(61.7)(56.7)(4.7)
Working Capital115.2 133.2 (17.9)
Total Facility
80.0 100.0 (20.0)
Borrowings
(50.0) - (50.0)
Available Facility/Undrawn
30.0 100.0 (70.0)
Cash and cash equivalents13.7 8.7 5.0
Borrowings(50.0) - (50.0)
Net Cash/(Debt)(36.3) 8.7 (45.0)
Net Tangible Assets (NTA) 127.7 185.5 (58.9)
Funds Employed338.0301.5(36.5)
Balance sheet summary
Focused on building balance sheet strength

19
Growth investments adding value
32
Recent growth initiatives and M&A
Acquisitions
Fasteners NZHigh quality, strong ongoing demand,
continuing to expand range
Kiwi Pipe & FittingsStrong earnings growth, continuing to
successfully expand ex-Auckland
Perry Metal ProtectionTransaction 1 May 2025; performing
ahead of expectations
Organic
Plate ProcessingValue add service (Auckland and
Christchurch)
AluminiumHigh value product, continuing to
expand range
Last mile freight deliveryExceeded expectations in first year of
operations
QBT450New roofing profile targeting high-end
residential market
0.0
5.0
10.0
15.0
20.0
25.0
FY23FY24FY25
Added Value from Strategic
Investments
Revenue from investments
EBITDA from investments

20
Perry Metal Protection
Performing ahead of expectations
•Performing ahead of expectations - five months EBIT is
45% above business case
•Highly aligned customer bases, cross sell synergies higher
than anticipated
•Accretive revenue in both Perry Metal Protection and Steel
& Tube businesses is 6x greater than our business case
•Integration plan on track
•Supportive macro trends – good for customers and the
planet, galvanizing extends life of steel by up to 7x
9.7
7.9
9.3
8.5
8.6
Mar-22Mar-23Mar-24Mar-25Jun-25
Rolling 12-months ended
$ Millions
Normalised EBITDA (pre IFRS)
33.3
34.6
35.8
33.7
32.5
Mar-22Mar-23Mar-24Mar-25Jun-25
Rolling 12-months ended
$ Millions
Revenue
RevenueAverage Selling Price

21
The market opportunity
New Zealand’s steel markets are very fragmented and in need of consolidation; Steel & Tube
is a natural acquirer
Fletcherreinforcing Logo

22
Moving
forward

23
Upswing will be driven by:
•Lowering interest rates
•Government investment in infrastructure
•Improved business confidence and
investment
•Recovery in consumer spending and the
housing market
Economic recovery on the way, albeit at slower pace
Headwinds expected to ease with improving activity in later FY26
Commercial
Residential
Manufacturing
Infrastructure

24
Medium term economic driver and trends
Market fundamentals remain strong, diversified product portfolio well positioned to
capture upside
Manufacturing
Attractive, stable and significant sector, supported by recovery of export,
agricultural, construction markets and domestic demand
Commercial
Interest rate cuts and improving business confidence will stimulate sector
Residential
Infrastructure
Resellers
Customer First
M&A / Growth Activity
Focus on Costs
Lower interest rates and increasing consumer confidence will drive
improving demand; housing supply and demand starting to balance out
Significant underspend, National Infrastructure Pipeline in place;
Government announcement of $6bn projects to commence pre-end 2025
Demand primarily driven by residential market trends

25
100
125
150
175
200
-
10
20
30
40
50
60
70
FY20FY21FY22FY23FY245%10%15%20%FY23
Vol
Volume (ktonnes)
EBIT ($m)
Volume Growth from FY24
VolumeEBIT
Inherent operating leverage
•Large proportion of costs fixed
•EBIT scales disproportionately to volume
•Lift in market activity, combined with
improvements in operating leverage, enables
significant earnings growth

Improvement in operating leverage
•Tight cost controls through cycle have locked in
structural benefits
•Recent enhancements: organisation structure,
Project Strong and ‘in housing’ of freight to customers
•Further leverage from cross selling new products
and services, and digital conversion
HistoricalVolume scenarios
Scenario modelling mid-cycle operating
leverage at increasing product volume levels
None of the modelling outlined on this page is a prediction, forecast or guide for FY26. Scenario product margins have been kept
constant and variable costs flexed proportionately to the increase in volume.
Operating leverage
Controlling the controllables

26
FY26 trading to date
Customer activity starting to
progressively build off a low base
•Continued economic weakness across
most sectors
•Some uplift in activity starting to be seen
this calendar year to date (July impacted by
weather, holidays)
•Projects moving from blueprint to planning
•Increasing tonnage per tender for
reinforcing – large infrastructure projects
coming to market with schedules
•Margins remain under pressure as market
competes for lower demand - recent signs
of improvement
320
420
520
1000
1200
1400
1600
1800
Revenue $ (000s)
Revenue & Tonnes per Trading Day*
RevenueTonnesLinear (Revenue)Linear (Tonnes)
*Excludes indent revenue and tonnes

27
FY26 focus and priorities
Navigating cyclical weakness while ensuring ability to scale up quickly
•Continue cost discipline, tight inventory control and cash management
•Support margins through new higher value products and services, and cross
sell opportunities
•Reinforce market position through continued strengthening of customer
relationships and customer-first mindset across the business
•Continued capital allocation discipline as current economic conditions
provide opportunity to grow organically and through acquisitions
•Will benefit from full year of Perry Metal Protection plus group-wide cost
out and efficiencies in FY26

28
Strong fundamentals; well
positioned for economic upswing
•Leading provider of steel products and solutions
•Strong and loyal customer partnerships
•Expert team and technical know-how
•Proven strategy delivering value and growth
•Disciplined capital allocation and strategic investments to support
future growth
•Significant operating leverage
•Favourable long term demand drivers

Shareholder
discussion
29

Resolutions
30

31
Resolutions
Resolution 1:
Auditor’s Remuneration
That the directors be authorised to fix the fees and
expenses of KPMG as the company’s auditor.
Resolution 2:
Re-election of Andrew Flavell
That Andrew Flavell, who retires by rotation in accordance
with Listing Rule 2.7.1 and is eligible for re-election, be re-
elected as a director of the company.
Resolution 3:
Ratification Of Previous Share Issue
That, in accordance with NZX Listing Rule 4.5.1(c),
shareholders ratify the issue of 15,476,755 fully paid
ordinary shares in Steel & Tube Holdings Limited to Perry
Group Limited on 1 May 2025 at an issue price of $0.8432
per share.

Other business
Close of the
Meeting
32

34
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
FY25 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 30
June 2025 and 30 June 2024 reconcile to normalised earnings. Non-
trading adjustments of $(4.6) million are included in the FY25 EBIT &
EBITDA.
Period ended 30 JuneEBITDAEBIT
$000sFY25FY24FY25FY24
Reported (2,496)31,415 (25,964)9,569
Palletised warehouse project costs1,364 2,701 1,364 3,192
Business restructuring costs699 550 699 550
Acquisition and integration costs903 - 903 -
Software as a Service (SaaS) upfront expenditure1,601 1,144 1,601 1,144
Normalised2,07135,810 (21,397)14,455

35
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)
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
TRIFR: 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

36
•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

---

Steel & Tube Holdings Limited, PO Box 58880, Botany, Auckland 2163, New Zealand
P +64 4 570 5000 www.steelandtube.co.nz
STEEL & TUBE 2025 ANNUAL SHAREHOLDERS’ MEETING
22 October 2025

CHAIR’S ADDRESS
Susan Paterson

Strategic Goals
For the past eight years, our purpose – making life easier for our customers – has been the foundation of our
strategy and it continues to guide every decision we make.
Our long-term goals remain clear and unchanged:
• To position Steel & Tube as the preferred supplier for steel solutions and products;
• To increase our company’s value through investment in high value products and services;
• To deliver increasing returns and value for our shareholders
• And to create positive outcomes for our business, our people, our communities and our planet.
We are firmly committed to these goals, not just for today, but for the years ahead, as we continue to play our
part in transforming and modernising the steel industry for the future.
Strategic Pathways
Our dual pathway strategy underpins our actions – building a diversified and resilient business while
capitalising on new avenues of growth.
The strategic decisions we have made over the past few years are positioning our company for success.
This year, not only have we continued to strengthen our core, but we have invested in both organic and
acquisitive growth – further expanding our leading range of steel solutions and businesses.
Perry’s Acquisition
The acquisition of Perry Metal Protection – a market leader in galvanizing services – was a highlight for the year
and reinforces our position as a leader in the sector.
FY25 Key Results
We were disappointed to announce a soft performance for FY25, with the challenging economic headwinds
affecting volumes, revenue and margins. We are a pure New Zealand play and as such our performance is
heavily linked to the ebbs and flows of the New Zealand economy.
Normalised EBITDA remained positive at the bottom of the cycle, as did operating cashflows.
Capital allocation discipline has been an important focus and meant we could buy quality businesses at bottom
of the cycle. As a result, net debt increased to $36m, which included $30m for the Perry’s acquisition.

In the face of ongoing economic pressure, we had to make difficult choices to ensure the long-term health of
the business, including the reduction of roles. These decisions were made with the future in mind, but not
without recognising the real impact they have on people today.
The board acknowledges and thanks those team members who have left us, for their dedication and hard work.
As governors of the company, we are committed to modelling the values that matter. The board and CEO
therefore, took a temporary 20% reduction in fees and salary. The leadership team has also agreed to a
temporary pay freeze. If we are asking our people to cut back, it’s only right that we do so too.
In the Boardroom
As a board, we had two clear priorities over the last year:
• To navigate Steel & Tube through the current challenging cycle – one of the most difficult we have
seen since the pandemic and the early 90s;
• and to prepare the company to capitalise on the economic upswing when it returns.
We remained focused on our strategy - strengthening our core, delivering for customers, organic growth and
fast-tracking scale through M&A.
Financial performance, risk and resilience are important topics of discussion, particularly in the current
economic climate. Capital management continues to be a key area of focus, allowing for strategic investment
while maintaining the flexibility to pursue growth. Our recent investments are delivering value – with positive
revenue, margin and earnings growth in the face of a cyclical downturn.
In the past year alone, we have expanded our range of aluminium products in response to customer demand,
extended the reach of Kiwi Pipe & Fittings into the South Island and launched QBT540, the first new roofing
profile to market in many years.
Our investment into palletised warehousing for our fasteners business has been completed and delivery
metrics are now consistently at 99%. We also invested in new rollforming machinery in Auckland and
Christchurch and added 13 trucks to our inhouse fleet, providing more control over last mile service, delivery
and efficiency.
We are managing our cashflow carefully with good cash collections in a softened operating environment and
inventory continues to be managed prudently to ensure best use of working capital.
The absolute priority for your board is to deliver a return to profit.
Across the business community, there is a strong consensus on what is required from government to support
sustained economic progress - a long-term vision that provides certainty for infrastructure, energy, housing
and transport. We need shovel-ready projects and a credible pipeline that allows businesses to plan, invest and
deliver with confidence.
Business also has a role to play. We cannot rely solely on government action. Companies must continue to
invest, innovate and drive productivity.
We're committed to building a strong, sustainable future for Steel & Tube. This runs deeper than just business
– it’s about building something lasting, resilient and sustainable that creates value not just for our
shareholders, but for all our stakeholders.

Our people are at the heart of our success – from our exceptional leaders to the wider Steel & Tube team.
Every day, they work together to deliver for our customers and our business. On behalf of the board, I want to
thank them for their commitment, adaptability and professionalism, in what has been a difficult environment.

CEO’S ADDRESS
Mark Malpass

Steel & Tube
I wanted to start with a quick reminder of the scale and strength of our business.
We are an established business with over 70 years of trading history. Our stable of best-in-class businesses
offer the most comprehensive range of steel and metal products, services and solutions in New Zealand. This
year, we added market leading galvanizing services to our offer. Our ability to cross-sell our wide range of
products across our 13,500 customers offers a significant strategic advantage.
We serve our customers through our nationwide network of 35 sites across the country and our online
platform, with support from Account Managers, our Customer Services Centres and our inside sales team. We
segment our customers into tiers based on size and value, and we are careful to balance our cost to serve with
the customer’s potential.
Our competitive advantage is anchored on our ability to leverage our national footprint and our wide product
range through cross selling. Our people make this come alive and we invest heavily in their product
knowledge to make life easier for our customers.
Underpinned by Strong Fundamentals
Customer satisfaction remains a core measure for us, and despite tougher conditions, our NPS customer
satisfaction score has held steady in line with historical averages – the rolling 3-month NPS as at end-
September is 50. I visit a selection of different customers weekly, and their insights and feedback help to inform
how we operate and deliver value. We also have board events with key customers in various regions a couple
of times a year which also helps inform our value proposition. Our strong customer relationships will serve us
well as market conditions improve and demand reignites.
Our team remain engaged and committed, with employee satisfaction lifting to 33 as at end September, which
is in the industry top quartile. We are conscious of cost of living pressures on our people and have initiatives
to provide support including financial planning and budgeting workshops, a Back to School financial assistance
programme, and the Healthnow Programme which provides support to meet basic family health costs like
doctors, dentists and pharmacy bills.
We also continue to invest in training and development opportunities to support team members to upskill and
progress their careers. A particular focus has been on training our Account Managers with product knowledge
to enable more cross-selling.
Our community support is anchored around helping young people to realise their potential.
Health and safety are embedded into our culture, and we have a steadfast commitment to ensuring every team
member goes home safe, every day. Our people are engaged with our safety programme and are important

contributors to keeping our whole team safe and well. Our FY25 safety metric increased mostly as a result of
the Perry’s acquisition, however, it’s important to note that there were no serious incidents and Perry’s has a
very robust safety framework in place.
We are supportive of New Zealand’s net-zero ambitions by 2050 and are focussed on those things that we can
control, from the transport emissions of our fleet to energy use, and the reduction of waste produced during
manufacturing in our plants. This is a journey for us and we continually look at how we can improve.
FY25 LOOKBACK
Looking back at the financial year ended 30 June 2025...
Recessionary Conditions
Steel & Tube has broad sector diversity with revenue predominantly generated from the manufacturing,
construction and infrastructure sectors.
Manufacturing, accounting for just over one third of our revenues, started to show some positive signs,
particularly in the second half of our financial year.
Commercial construction makes up almost one third of our revenues. When you add Residential and Resellers,
construction is almost 50% of our revenues. The high interest rate environment, international uncertainty,
limited Government infrastructure and social housing spending, increasing housing supply and job losses,
affected the construction market and business investment confidence.
Investment into infrastructure projects was limited, with a number of projects paused or delayed.
Conversely, the rural sector, was a standout over the year, supporting the economy by driving rural incomes
and job creation and sector-related manufacturing.
Strategic Initiatives
Despite the tough market, we continued to execute on our strategy - strengthening our core, delivering for
customers, growing organically and through acquisitions.
Financial Performance
As Susan said, the challenging economic backdrop and its impact on demand for steel, affected volumes,
revenue and average selling price in FY25.
Lower demand and volumes increased competition, putting pressure on margins. However, we have strong
operating leverage and margins are starting to show signs of improvement as volumes improve and capacity is
better utilised.
A focus on costs and efficiency further improved operating leverage, with an additional $7m in cost taken out
of the business in the last year, on top of $5m in the previous year.
We reported a normalised EBIT loss of $21.4m while normalised EBITDA was a profit of $2.1m.
Balance Sheet Summary
We have been disciplined with the use of shareholders’ funds, particularly in the current economic cycle.
Inventory has been carefully managed to ensure customer availability while shifting product mix towards
higher value products, and operating cashflows remained positive.

However, this environment has also opened up opportunities for us and we have been able to utilise our
balance sheet for growth initiatives and M&A, including the acquisition of Perry Metal Group.
Growth Investments Adding Value
Acquisitions enable us to grow into adjacent areas when organic pathways are not as attractive.
We started out with smaller acquisitions - Fasteners NZ in 2021, Kiwi Pipe and Fittings in 2022 and Roadex last
year - and proved our ability to acquire businesses and products and integrate them into the group.
In the past year alone, we acquired Perry’s, expanded our range of aluminium products in response to
customer demand, extended the reach of Kiwi Pipe & Fittings into the South Island and launched QBT540, our
first new roofing profile to market in many years.
We also added 13 trucks to our inhouse fleet (now 33 in total), providing more control over last mile service,
delivery and efficiency.
Our recent investments are delivering value – with positive revenue, margin and earnings growth in the face of
a cyclical downturn.
Perry Metal Protection
The acquisition of Perry Metal Protection is a good demonstration of our strategy in action and was a highlight
of the past year. It further expands our offer to our existing and new customers, and we are seeing a range of
benefits, from cross-selling to operational synergies.
Integration of Perry’s into the group has gone well and is now mostly complete. We have a good cultural and
value fit and strong alignment of customer groups.
While it is still early days, the results to date have exceeded our business case expectations, with EBIT for the
first 5 months 45% above business case.
The Market Opportunity
The steel and metals sector in New Zealand is busy and fragmented. There is a wide range of potential
consolidation opportunities and Steel & Tube is a natural acquirer, well-positioned to integrate and grow.
The Perry’s acquisition is the largest we have done to date and demonstrates our capability to identify strategic
opportunities, execute complex transactions and realise synergies that strengthen our group’s market position.
MOVING FORWARD
Economic Recovery on the Way
Market conditions remain challenging— slower infrastructure growth, high cost of capital and complex
regulations have made planning and investment harder than it should be. Many businesses have put projects
on hold and stopped spending, and the Government has cancelled or paused many large infrastructure
projects. While the Fast Track bill and current growth narrative is a positive step, approvals and funding will
take time.
Medium Term Economic Drivers
There are some positive themes that should lead to improved activity over the next 12 to 18 months:
• Manufacturing is poised to grow, supported by recovery of export, rural and construction markets, and
domestic demand.

• Further interest rate cuts over the coming year are expected to stimulate the commercial construction
sector.
• The residential sector is slowly recovering and lower interest rates and a large portion of fixed
mortgages coming up for renewal will drive increasing demand over time. In the short term, elevated
supply relative to demand, sluggish wage growth, high unemployment, and affordability constraints
continue to dampen demand.
• In terms of infrastructure, there are some shorter-term government-funded projects such as Dunedin
Hospital that will be helpful.
The Government has advised that billions of dollars in government-backed construction projects are set to get
underway across New Zealand before the end of the year, and we are actively working to secure contracts for
this work. However, we are cautious about when we will actually see shovels in the ground and a resulting
demand for steel.
We are also well positioned to deliver for climate resilience projects such as port rebuilds, wind and solar
energy developments, coastal protection and resilient buildings – areas where we have proven expertise and
capability.
We are committed to investing, innovating and executing, but progress will be faster if Government provides a
clear, long-term infrastructure pipeline—energy, transport and housing—so businesses can plan, invest, and
deliver.
Clear planning, decisive Government actions and business execution working together will unlock growth and
opportunity - for our company and for the wider economy.
Operating Leverage
We are well positioned with strong operating leverage. We have streamlined our fixed cost base to make it
more efficient and have tight control over variable costs, which will enable substantial profit expansion as
volumes return.
This conceptual chart demonstrates the improvements we have made to operating leverage, using FY23 as a
mid-cycle proxy.
Looking at the last shaded bar in the graph – if we took our FY23 volumes and modelled our current operating
leverage, our earnings – the red dot - would have been significantly higher than they were. This excludes any
benefit from the Perry Metal Group acquisition.
This modelling demonstrates that when our volumes increase, as we expect they will do, our strong operating
leverage will result in increased margins and profits.
FY26 Trading to Date
While there is some uplift emerging, we expect headwinds to remain until early 2026, at which time, we would
hope to see some easing as the benefits of lower interest rates take effect and stimulate confidence, spending
and investment.
We have started to see some uplift in customer activity, with more projects moving to the planning stage, an
increase in tender requests – and increasing tonnage per tender – and large infrastructure projects are coming
online with more definitive timetables around them. As these projects move to execution phase, our revenue
and tonnage will start to increase again.

In the short term, while there are signs of improvement, margins remain under pressure as the market
competes for lower demand. We are maintaining our balanced approach to jobs, ensuring we are competitive,
while retaining appropriate margins.
FY26 Focus and Priorities
Our focus is on maintaining our market position, supporting margins, and continuing our disciplined
management of costs, inventory and cash.
Our strong market position, loyal customer relationships, and customer-first mindset across the business will
support revenue.
We will continue to tightly manage cash and costs, and support margins through new higher value products
and services, and cross sell opportunities.
The current environment offers opportunities to continue to grow organically and through acquisitions and we
remain attuned to this.
Our FY26 results will benefit from a full year of Perry’s plus group-wide cost out and efficiencies delivered in
FY25.
Our strategy is delivering value and growth, and we are continuing to identify and assess growth opportunities
at the bottom of the cycle.

Chair’s concluding remarks
Well Positioned for Economic Upswing
As Mark has said, we’re well positioned for the economic upswing, with product diversity and broad sector
exposures that differs from listed peers.
We have a cost efficient and streamlined business, strong operating leverage, broad sector diversity and a solid
market position as a trusted supplier with competitive scale and longstanding customer relationships. We are
well positioned for the cyclical upswing and to drive margin expansion and profit growth when demand
returns.
Market fundamentals remain strong and long term drivers provide a multi-year growth pathway.
Steel is everywhere in our lives – where we play, live, work, in our transportation networks, our buildings and
our infrastructure. It’s one of the world’s most essential and sustainable building products – permanent,
forever reusable and the most recycled substance on the planet. There are many projects where steel is the
best, and sometimes the only suitable product.
Over the past 70-plus years, we have proven our ability to successfully navigate through down cycles, and we
are very confident in Steel & Tube’s ability to capitalise on increasing demand as the economy improves.
On behalf of the board, I would like to thank all our shareholders for your continued support.
ENDS