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Address from Vulcan Steel Limited‘s Chair of the Board - Russell Chenu Ladies and Gentlemen, fellow shareholders. The Financial Year 2025 in review FY2025 presented a challenging environment for our company. Vulcan experienced continuing headwinds in all of our major market segments in Australia and New Zealand. Low levels of business confidence and restrained government spending resulted in reduced private sector and public sector investment. The outcomes were weak metals markets and lower sales volume, with increased competition. Our sales volume declined 6% in FY25 — and that followed a 9% decline in FY24. Sales revenue declined 11% as a result of volume reduction and increased competition. Although Vulcan’s statutory net profit after tax declined by a disappointing 61% to $16 million in FY25, the company’s net cash flow continued to be strong, and we reduced net debt by $44 million from $276 million at June 2024 to $232 million at June 2025. That was a very positive achievement. We finished FY25 with cash and unutilised committed borrowing facilities of $177 million. Rhys will address the FY25 year in more detail in his address. Dividend The total dividend declared for FY25 was $0.06 per share, amounting to just over $8 million, representing 55% of net profit after tax. The dividend was 67% imputed for NZ shareholders and 100% franked for Australian shareholders. Climate Disclosure Report and sustainability Vulcan’s annual report for 2025 incorporated our second annual climate-related disclosures in accordance with New Zealand legislation. The report disclosed a further modest reduction in scope one and two carbon emissions compared with recent years. Board and Management changes In June of this year, we announced proposed changes to the Board and also our Senior Management Team. After 19 years of service to Vulcan, including 14 years as Managing Director, Rhys Jones will retire from executive duties at the end of this calendar year. Our Chief Commercial Officer, Gavin Street, will succeed Rhys as Chief Executive Officer and Managing Director of Vulcan from the beginning of 2026. Gavin has significant experience in industrial distribution businesses. He joined Vulcan in October 2024 and has contributed significantly to business improvement in the past 12 months. We congratulate Gavin on his appointment. All directors look forward to working with Gavin in his pursuit of value creation. For personal use only
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In a further change, I will step down as Chair of the Board, to be replaced by Rhys from 1 January 2026. I will remain a director and will serve as the lead independent director. Rhys has led a management team that has created and expanded a significant presence in metals merchandising in both New Zealand and Australia. His approach has been disciplined and focused, resulting in significant shareholder value creation through a number of business and economic cycles. We wish Rhys the best in his transition from executive roles to a governance role. Importantly, notwithstanding these changes, the Vulcan board will continue to have a majority of independent directors. Acquisition of Roofing Industries At the time of announcing our FY2025 results at the end of August, Vulcan also announced the acquisition of Roofing Industries, a business which takes Vulcan into a new product segment in New Zealand. The $88 million required for the purchase of Roofing Industries was funded with a capital raising in a one-for-nine share issue which provided all existing shareholders with entitlements to subscribe for new shares at AU$5.95 or NZ$6.60 each, or to sell their rights to new shares. The equity issue has resulted in diversification of our shareholder base and early evidence suggests increased liquidity in the form of average daily traded volume on both NZX and ASX. The acquisition of Roofing Industries closed at the end of September 2025, and we welcome all Roofing Industries employees to the Vulcan family. Gavin will include more detail on Roofing Industries in his presentation. Outlook The metals distribution sectors in both New Zealand and Australia are characterised by overcapacity at current activity levels. As far as we can determine, very few peer companies in Australasia are trading profitably. The board and management of Vulcan are proud that the company continues to be profitable, although at reduced levels compared with more buoyant economic times. We are currently reminded of the cyclicality of the metals industry. Our very experienced management team remains relentlessly focused on delivering superior customer service, continuing our people development programs and investing in other assets such as upgrades to physical facilities and IT systems in order to build our capabilities. Vulcan is in a very strong position to leverage its considerable strength when the market turns and business activity increases. As in past years, and on behalf of your board, I would like to thank all employees for their commitment, our customers for their trust in our company and you, our shareholders, for your continuing support. I will now ask Rhys to present his Chief Executive address. For personal use only
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Address from Vulcan Steel Limited‘s management team - Rhys Jones Thank you, Russell, and thank you to all those who are joining us for our Annual Shareholder Meeting. Summary of Financial Year 2025 performance The 2025 financial year ended up being an even more challenging year than FY24. Global economic growth remained tempered due to heightened geopolitical and trade policy uncertainties. Australian economic activity level was well below trend growth while New Zealand businesses continued to experience a recessionary environment during the last 12 months. Over the course of the last financial year, Vulcan generated $105 million in operating cashflow and further reduced debt by $44 million. This is despite Vulcan’s adjusted net profit after tax falling to $18 million for FY25, from $40m in the previous year. Our return on capital employed (or ROCE) was 8.8% for FY25. While this compares well to our peers in the industry in the context of the present conditions, we are unsatisfied with our results and are absolutely focused on driving improved outcomes for shareholders. Operations Stock management was a key focus area for our business leaders in FY25. We were able to reduce our stock levels by 10% while maintaining a high level of product availability to our customers. We further invested for growth. During the year, we added or hybridised six locations across Australia and New Zealand. Pleasingly, our team maintained a high customer service level, reflected in an industry-leading 98% order fulfilment rate or DIFOT across all orders in FY25. Growth strategy A key plank in Vulcan’s shareholder value creation strategy is through a disciplined expansion into new verticals within our industry. I am pleased to say that since 1 October, the Vulcan Group is now able to serve New Zealand’s roofing and cladding needs through our recently completed purchase of Roofing Industries Limited. This purchase was our 12th acquisition since 1995. I would now like to invite Gavin Street, our incoming Managing Director and CEO, to share with you more detail on the roofing business, our priorities and outlook for FY26. For personal use only
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Address from Vulcan Steel Limited‘s management team - Gavin Street Thank you, Rhys. I would firstly like to thank our Board and you, our shareholders, for the opportunity to be part of Vulcan’s growth journey going forward. The successes of our company over the last 30 years are a result of culture and our people – our most important asset - with a shared vision and outcome and aligned processes. It is a privilege to have the opportunity to be part of the Vulcan team as we further grow value for our shareholders. Roofing Industries Acquisition and group network Our acquisition of Roofing Industries is one such opportunity that will allow us to grow shareholder value over time. As Rhys mentioned, Roofing Industries’ products represent a new vertical for the Vulcan Group, and the business is a great fit and platform for Vulcan. Roofing industries has a strong alignment to Vulcan’s culture and the same unwavering commitment to customer service. Our roofing business operates nationally in New Zealand, supported by more than 250 employees. One of the reasons for Roofing Industries success to date is its partnership with local owner-operators at a branch level, whose service mindset and financial interest are aligned through an equity stake in the business. We again welcome all our employees in the roofing business to the Vulcan team. The addition of the 15 roll-forming, folding and water-goods supply operations brings the Vulcan network footprint to 80 locations across Australia and New Zealand. Health and safety Turning to health and safety, Vulcan is committed to providing a safe and healthy work environment. In FY25, we reinforced this with the launch of the Safety Step Change Programme to further improve our practices, and invested in a new on-site health and safety platform to enhance awareness, reporting and management. We have also commenced the use of Inviol, which is artificial intelligence assisted video technology to mitigate high risk events across a range of workspaces. First quarter trading update Turning to Vulcan’s financial performance. So far in FY26, our revenue in the September quarter declined 3% year-on-year as a result of lower average selling price due to product mix compared with the September 2024 quarter. Our September quarter EBITDA was lower year-on-year due to lower gross profit dollar per tonne. Sales tonnes per day in our first quarter improved by 2% year-on-year, reflecting a 5% year- on-year increase in our Steel segment volume and 5% year-on-year decline in our Metals segment volume. For personal use only
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At 30 September 2025, Vulcan’s net debt was NZ$182 million following completion of Vulcan’s equity raising and the first payment for the acquisition of Roofing Industries. The second payment for the acquisition is due in January 2026. Priorities We intend to add to our foundation for growth. This means maintaining and nurturing our customer service mindset in preparation for an economic upswing going forward. We will continue to expand into the roofing segment, integrate cross-selling initiatives across the company including opportunities for new hybrid sites, and explore other opportunities. As we have done over the last two years, we will ensure we have sufficient bench strength to support growth. Outlook Overall, volume activity for the Vulcan Group showed gradual stabilisation in the first quarter of FY26, with the pace of recovery anticipated to strengthen for the second half of FY26. Uncertainty around global trade policies remain a risk for investment appetite and timing for sustained recovery in our regions. The economic recovery in New Zealand is progressing, with encouraging signs of improvement for some of our customers and sectors, supported by lower interest rates. However, construction and infrastructure projects are expected to recover more slowly over the next couple of years. Competitive intensity remains high as some participants choose to focus on market share over profitability. Australia activity level was steady to improving in the first quarter FY26. Tonnes per day for our Queensland, New South Wales and Western Australia operations were steady on a year- on-year basis and are expected to show gradual improvement. Victoria showed promising progress in the first quarter FY26 and is positioned for stronger growth in the balance of the financial year. From 1 October 2025, Roofing Industries financial results will be consolidated into the Vulcan Group with our FY26 half year results due to be released in mid-February 2026. Closing As always, our employees are the most important asset in our business, which is even more so in difficult times. Our culture, customer focus and teamwork continue to shine through despite a difficult environment. I want to thank our employees for their commitment and great teamwork, as well as our customers for their ongoing support. For personal use only