Slides
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2025 Annual Shareholders’ Meeting 22 October 2025
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Chair Susan Paterson
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3 Online Meeting VOTING TAB Q&A TAB If you have a question to submit during the live meeting, please select the Q & A tab on the right half of your screen at anytime. Type your question into the field and press submit. Your question will be immediately submitted to the moderator. Online Questions Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. Your vote has been cast when the tick appears. To change your vote, select ‘Change Your Vote’. Shareholder & Proxyholder Voting
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Agenda • Chair and CEO Presentations • Discussion • Resolutions • Other Business • Meeting Close/ Refreshments 4
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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
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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
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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
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8 Click to view video
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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
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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
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CEO Mark Malpass
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12 Steel & Tube Our purpose is to make life easier for customers needing steel solutions • A proud New Zealand company, trading for over 70 years • We offer New Zealand’s most comprehensive range of steel products, services and solutions • Our stable of best-in-class businesses are some of this country’s leading steel suppliers ~900 team members 35 sites across NZ * As at 1 September 2025 (includes Perry Metal Protection – 100 team members and 6 sites)
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13 Business underpinned by strong fundamentals 1.13 1.14 0 3.5 0 1 2 3 4 5 FY22 FY23 FY24 FY25 Employee Satisfaction (eNPS2) Employee Safety Measure (TRIFR1) Emissions kgCO2e per tonne3,4 40 42 50 42 0 20 40 60 FY22 FY23 FY24 FY25 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 (NPS2) • 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-23 Dec-23 May-24 Jun-25 eNPS Top Quartile 104 92 111 118 80 90 100 110 120 FY22 FY23 FY24 FY25 kgCO2-e (000s)
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14 FY25 Lookback
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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
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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
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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. $m FY25 FY24 Var Revenue 385.4 479.1 (93.7) Volume (Ktonnes) 101.7 115.5 (13.8) GM$/tonne** 701 901 (200) EBITDA (2.5) 31.4 (33.9) Normalised EBITDA* 2.1 35.8 (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 10.4 42.2 (31.8)
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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 $m FY25 FY24 Var Trade and other receivables 63.2 68.5 (5.3) Inventories 113.6 121.3 (7.9) Trade and other payables (61.7) (56.7) (4.7) Working Capital 115.2 133.2 (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 equivalents 13.7 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 Employed 338.0 301.5 (36.5) Balance sheet summary Focused on building balance sheet strength
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19 Growth investments adding value 32 Recent growth initiatives and M&A Acquisitions Fasteners NZ High quality, strong ongoing demand, continuing to expand range Kiwi Pipe & Fittings Strong earnings growth, continuing to successfully expand ex-Auckland Perry Metal Protection Transaction 1 May 2025; performing ahead of expectations Organic Plate Processing Value add service (Auckland and Christchurch) Aluminium High value product, continuing to expand range Last mile freight delivery Exceeded expectations in first year of operations QBT450 New roofing profile targeting high-end residential market 0.0 5.0 10.0 15.0 20.0 25.0 FY23 FY24 FY25 Added Value from Strategic Investments Revenue from investments EBITDA from investments
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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-22 Mar-23 Mar-24 Mar-25 Jun-25 Rolling 12-months ended $ Millions Normalised EBITDA (pre IFRS) 33.3 34.6 35.8 33.7 32.5 Mar-22 Mar-23 Mar-24 Mar-25 Jun-25 Rolling 12-months ended $ Millions Revenue Revenue Average Selling Price
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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
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22 Moving forward
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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
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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 $6bn projects to commence pre-end 2025 Demand primarily driven by residential market trends
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25 100 125 150 175 200 - 10 20 30 40 50 60 70 FY20 FY21 FY22 FY23 FY24 5% 10% 15% 20% FY23 Vol Volume (ktonnes) EBIT ($m) Volume Growth from FY24 Volume EBIT 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 Historical Volume 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
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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 1800Revenue $ (000s) Revenue & Tonnes per Trading Day* Revenue Tonnes Linear (Revenue) Linear (Tonnes) *Excludes indent revenue and tonnes
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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
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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
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Shareholder discussion 29
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Resolutions 30
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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.
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Other business Close of the Meeting 32
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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 June EBITDA EBIT $000s FY25 FY24 FY25 FY24 Reported (2,496) 31,415 (25,964) 9,569 Palletised warehouse project costs 1,364 2,701 1,364 3,192 Business restructuring costs 699 550 699 550 Acquisition and integration costs 903 - 903 - Software as a Service (SaaS) upfront expenditure 1,601 1,144 1,601 1,144 Normalised 2,071 35,810 (21,397) 14,455
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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
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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