Slides
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FY26 Results Presentation For 12 months ended 30 June 2026 26 August 2026
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FY26 Outtakes Progress made despite disrupted market recovery Strongly leveraged to market recovery • Normalised results improved on prior year, however unforeseen continuing market weakness and increased costs (primarily wages and energy) have delayed the return to profitability • Positive revenue and volumes trends are emerging in line with the modest market recovery • Normalised EBIT up 40% 2H26 vs 1H26 Balance sheet discipline • Five year investment into high-performing acquisitions • Focus on working capital, debt management and liquidity – extended banking facilities to September 2027 Consistent execution through the cycle • Strategic execution driving higher value growth, margin expansion and greater operating efficiency • Portfolio review in 4Q26 providing pathway to improved return on capital • Accelerated business reset underway
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FY26 Financial Summary Operating leverage supporting earnings growth off bottom of cycle Comparatives to prior year FY25 volume restated to show zinc tonnes consumed in galvanizing (previously Tonnes processed). See glossary slide for more detail Normalised Earnings Before Interest and Tax (EBIT), Normalised Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) exclude non-cash impairment of assets of $(51.9)m and other non-trading adjustments of $(3.8)m. Including these, EBIT was $(72.2)m and EBITDA was $(45.8)m. Non-GAAP earnings reconciliation in appendix Net Loss After Tax (NLAT) includes impairment and non-trading adjustments Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided Volume Normalised EBITDA Normalised OPEX Product Margin % Inventory ▲115,261t Up 15.9% ▲$9.9m Up $7.7m ▲$76.3m Increase 9.1% ▲30.7% Increase 2.6 pp ▼$111.0m Reduced by 2.3% Revenue Normalised EBIT NLAT Operating Cash Flows Net Debt ▲$438.9m Up 13.9% ▲$(16.5)m Improved by $4.9m ▼$(61.2)m Includes $(51.9)m impairment FY25: $(24.4)m ▲$12.7m Improved by $2.3m ▲$48m Up from $36.3m
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4 Operating Performance
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5 Jul-2017 Jul-2018 Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Revenue per trading day Tonnes per trading day Cycle turning but uneven through FY26 Positive revenue and volume trends through to Q3; slowed by Middle East conflict, cost inflation and pre-election caution in Q4 Covid-19 Indicator YOY Trend As at YE 2026 Customer Enquiries ⚫ Quotes Issued ⚫ Order Conversion ⚫ Inventory Turns ⚫ Steel Pricing ⚫ Construction ⚫ Infrastructure ⚫ Manufacturing ⚫ Market cycle Middle East conflict
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Significant earnings improvement as market recovered Normalised EBITDA and Normalised EBIT • Strong improvement YoY • Continuing momentum 1H26 to 2H26 Normalised EBITDA Normalised EBIT FY25: FY26 +376% +23% 1H25: 1H26 +40% (9)% 2H25: 2H26 +10,265% +48% 1H26: 2H26 +151% +40% 2,003 68 2,071 2,810 7,048 9,858 - 2,000 4,000 6,000 8,000 10,000 12,000 1H 2H Full Year $000s Normalised EBITDA FY25 FY26
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7 Broad exposure across key end markets Leveraging recovery across multiple sectors Construction Manufacturing Non-Residential (Commercial) Residential Infrastructure Agriculture and other 39% 27% 18% 4% 12% 36% 31% 19% 8% 7% FY26 Long- term avg.1 1From FY22 to FY26 • Manufacturing: clear signs of emerging recovery – moved from stagnation to expansion but with month-to-month volatility • Commercial: remained subdued and regionally uneven; new project commencements remain limited • Residential: improvement in consents, mostly for multi-unit developments, however, building activity continues to lag with construction volumes remaining near cyclical lows • Infrastructure: substantial long-term pipeline supports demand, but delivery timing and funding remain constraints, election uncertainty being felt • Others: economic recovery in the agricultural sector % of sales
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FY26 priorities and progress – lookback Sustainable earnings through the cycle • Broadening exposure across multiple market sectors and product offerings • Reducing reliance on construction – although will always be an important sector • Acquisition strategy proving itself – outperformance from Perry’s galvanizing Cost discipline and margin recovery • Further $6m annualised cost out programme, optimisation of supply chain and SKUs • Improved service + lower cost from warehouse and freight initiatives • Focus on higher value products and services supporting margin expansion Customer value delivery • Optimisation of SKUs ensuring availability of high demand, high value products • Expanding customer share of wallet, cross-sell and capture of synergies across businesses • Retained high levels of DIFOTIS and customer satisfaction Rebuild balance sheet capacity • Renewal of ANZ banking arrangements to September 2027 • M&A activity paused, capex restrictions in place, dividends on hold • Portfolio review to ensure capital is directed towards the highest-value opportunities Manage working capital • Close control and management of cash, working capital and debtors – minimal levels of bad debt despite increasing construction liquidations • Actively managing inventory – cover, turns, disciplined buying strategy
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9 Investment into higher value products and services Recent acquisitions and investments providing strategic benefit • Kiwi Pipe & Fittings, Aluminium, Fasteners, Freight, expanded Purlin capacity • Plate processing returns below investment criteria – planned exit in FY27 Perry Metal Protection continues to outperform • Meaningful cross-sell and revenue synergies above expectations • FY EBIT* +30% on business case, exceeded PY EBIT* by $1.1m • Margin expansion expected as volumes grow • Providing consistent earnings through the cycle *EBIT excludes corporate levy and IFRS 16. May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 PMP Revenue Trending Actual Business case May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 PMP EBIT* Trending Actual Business case
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10 Strengthening the core through the cycle Leaner, stronger and more efficient business Strategic Focus Measurement Best in class customer service • NPS 40 – in line with prior year • Recognised for specialist capability and technical expertise Cross sell products and services • 72% of customers buying from multiple product categories Accelerate shift to digital sales • 12% of active customers purchasing digitally Drive gross margin $/tonne • Increase 3.6% YoY – driven by high value products and services, despite increased steel pricing Operating efficiency • Automation, productivity and manufacturing improvements • Lower structural cost base • Continue to optimise network footprint Smarter business • Investment in digital and data – exploring further AI capabilities • Focus on sectors where we can create sustainable advantage
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11 Portfolio Review
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12 Comprehensive portfolio review Directing capital to the highest-value opportunities • Assessment of product and service portfolio against investment criteria • Priority focus on enhancing capital allocation and returns • Accelerate strategy to invest in high value products and services – build on success of acquisitions and organic growth to date • Adaptation of business model to deliver smarter, more profitable ways of servicing customers • Portfolio review supported by expert, independent advice Actions Underway • Exit Reinforcing & Wire (consultation phase) • Exit Plate Processing (consultation phase) • Lease portfolio review: exit of 7 sites in FY27 Assessment criteria Financial returns Sector attractiveness Market Structure Customer value proposition Strategic fit Capital intensity Barriers to entry Scalability Risk profile
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13 FY26 Financial Results
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14 Group financial summary • Relentless focus on financial discipline delivering measurable improvement • Significant operating leverage supporting earnings growth ahead of revenue • Annualised $6m cost out programme commenced, FY26 benefit of ~$3.5m • Meaningful uplift in Normalised EBITDA • No dividend declared • $51.9m impairment losses recognised in reported figures2 Financial performance 1. Normalised EBITDA and EBIT have been adjusted to exclude impairment and non-trading adjustments. Further details included in appendix to this presentation 2. See Note C2 in Financial Statements $m FY26 FY25 Var Revenue 438.9 385.4 13.9% ▲ Volume (Ktonnes) 115.3 99.5 15.9% ▲ PM$/tonne 1,167 1,088 7.3% ▲ EBITDA (45.8) (2.5) (1,732.0)% ▼ Normalised EBITDA1 9.9 2.1 375.9% ▲ EBIT (72.2) (26.0) (177.7)% ▼ Normalised EBIT1 (16.5) (21.4) 22.7% ▲ NLAT (61.2) (24.4) (151.0)% ▼ Net Operating cash flow 12.7 10.4 22.1% ▲
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15 Revenue Increasing demand as recovery gained momentum Q1 to Q3 300 400 500 600 1,200 1,400 1,600 1,800 2,000 Tonnes Revenue $ (000s) Revenue & Tonnes per Trading Day Revenue Tonnes 2,000 3,000 4,000 - 100 200 300 400 500 600 700 FY22 FY23 FY24 FY25 FY26 Average Selling Price ($/t) Sales ($m) Sales & Average Selling Price Revenue Average Selling Price • Improving quarterly trend Q1 to Q3, tempered by impact of Middle East conflict and pre-election caution in Q4 • 1H26 vs pcp: increase in revenue and tonnes per day, lift in product margins • 2H26: revenue and tonnes per day ahead of pcp, and ahead of the first half performance – margins down slightly due to product mix and cost inflation • Average selling price reflects increasing price pressure, supported by diversification into galvanizing sector • Maintaining market share
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16 • Product margin % up 2.6pp YoY • Product margin $/tonne increased 15.8% YoY • GM$/Tonne increased 3.7% YoY • Margin expansion driven by diversification into Galvanizing sector offsetting base business margin decline • Supported by cost programme and freight and warehouse initiatives • Disciplined pricing + higher value product mix + leaner operating platform will deliver earnings and margin growth when volumes recover Product margins Operating leverage coming into play – earnings will recover faster than revenue Product Margin includes freight and excludes direct and sub-contract labour 1Tonnes include zinc tonnes consumed in galvanizing. Consistent with other industry participants $ per tonne includes owned tonnes only 177 167 143 108 135 FY22 FY23 FY24 FY25 FY26 Product Margin ($m) 29.5% 28.4% 29.8% 28.1% 30.7% 1,057 1,142 1,238 1,088 1,167 FY22 FY23 FY24 FY25 FY26 Product Margin % and $/tonne1 Product Margin % PM$/Tonne
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17 Normalised operating expenses Third wave of cost out programme underway • Accelerated cost savings needed to combat inflationary pressures • 7% of FY26 normalised OPEX relates to the Galvanizing division • Excluding Perry’s, cost up 2% YoY due to inflation and non-recurring credits in FY25 • Locked in $3m annualised OPEX benefit from FY27 FY26 Normalised OPEX excludes restructuring costs of $1.4m, capital & strategic review costs of $0.5m, acquisition & integration costs of $0. 3m and the $2.2m impact of SaaS, as well as non-trading adjustments previously reported, Normalised OPEX excludes D&A *Inflation of 4.1% as reported by Statistics NZ in their June 2026 release 69.9 4.9 1.0 75.7 2.9 (2.3) 76.3 FY25 Normalised OPEX Galvanizing Division Non-recurring credits Restated FY25 Normalised OPEX Estimated inflation* Net cost savings FY26 Normalised OPEX $m 35 45 55 65 75 85 95 Normalised OPEX Bridge: FY25 to FY26
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18 Normalised EBITDA Growth investments and opex savings supporting increased earnings • 376% improvement from $2.1m to $9.9m • Positive contribution from new growth investments and strategic focus on higher value products and services • Base business margin decline driven by intense market competition and product mix Normalised EBITDA has been adjusted to exclude impairment and non -trading adjustments. Further details included in appendix to this presentation. *Growth investments includes EBITDA generated from the day-to-day operations of Galvanizing, Aluminium, Kiwi Pipe, Plate Processing and Group Freight **Inflation of 4.1% as reported by Statistics NZ in their June 2026 release 2.1 6.3 17.5 (12.6) (1.6) (2.4) 0.9 (0.3) 9.9 $m 0 5 10 15 20 25 30 35 Normalised EBITDA Bridge FY25 to FY26
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19 $m FY26 FY25 Var Trade and other receivables 67.2 63.2 4.0 Inventories 111.0 113.6 (2.6) Trade and other payables (81.0) (61.7) (19.3) Working Capital 97.2 115.2 (18.0) Total Facility 80.0 80.0 - Borrowings (60.0) (50.0) (10.0) Available Facility/Undrawn 20.0 30.0 (10.0) Cash and cash equivalents 12.0 13.7 (1.7) Borrowings (60.0) (50.0) (10.0) Net Cash/(Debt) (48.0) (36.3) (11.7) Net Tangible Assets (NTA) 74.1 127.7 (53.6) Funds Employed 282.2 338.0 (55.9) Balance sheet summary Capital management remains priority, focus on rebuilding balance sheet capacity • Borrowings reflect Perry’s acquisition in May 2025 • Extended ANZ facility to September 2027 Capital management initiatives: • Tight control of cashflow • Inventory management and rationalisation • Network optimisation/site consolidations • Improved supplier terms • Portfolio Review
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20 • Net operating cash $12.7m • Focus on cash conversion and margin discipline • Tight working capital management – inventory, receivables, payables • Cashflow initiatives taken: - M&A paused - Capex restrictions in place - Third wave cost reduction - Dividends on hold Cashflow and Net Debt Staying the course, disciplined cashflow management (36.3) 6.1 (6.3) (24.9) 2.6 10.8 (48.0) Opening Net Cash/(Debt) EBITDA excl. non-cash impairment Net Capex payments Lease payments Decrease in inventory Other working capital Closing Net Cash/(Debt) $m 0 (10) (20) (30) (40) (50) (60) (70) Cash Flow Bridge: FY25 to FY26
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21 Inventory • Investment in high-quality, high margin inventory items • Reduced from 23k to ~13k planned SKUs over two year period (FY24 to FY26) • Actively managing discontinued inventory lines • Reduced slow-moving and obsolete inventory by $3.9m in FY26 • Netstock inventory system fully implemented, creating better availability for the products that matter most to our customers - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 100 105 110 115 120 125 FY24 FY25 FY26 Stock turns $m Inventory turnover Inventory Stock turns - 5,000 10,000 15,000 20,000 25,000 FY24 FY25 FY26 Number of planned SKUs
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22 Moving forward
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23 Market Drivers Manufacturing Non-Residential (Commercial) Residential Infrastructure Other Improving pipeline, with a lag before volumes recover Limited near-term visibility and cautious project commitments Positive momentum, but volatile and exposed to input-cost pressures Relatively resilient, but dependent on funding and project timing FY27 Outlook Highly leveraged for domestic market recovery, timing and pace remains uncertain • Q2 & Q3 FY26 showed ability to deliver when market conditions improve • Cautious outlook, dependent on macro conditions, some early recovery being seen • General election and Middle East conflict has delayed customer activity and investment decisions • Price increases implemented in late FY26 are holding • Rollout of Portfolio Review actions focused on improving ROIC Strong rural sector
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24 Key Priorities Implemented Disciplined control Customer share of wallet growth embedded Tight focus on customer value (differentiated service, pricing and product availability) Effective integration and value capture from acquisitions M&A activity paused, capex restrictions and dividends on hold Cost discipline – recent third wave of cost out initiatives (includes 60 roles) Short term Optimise the recovery Portfolio and business reset – exit loss making operations Priority focus on balance sheet management Cost discipline and margin growth initiatives Value capture from recent initiatives and acquisitions Build on strategic customer alliances and share of wallet Medium term Return to growth o Benefit realisation from growth initiatives: o M&A o Share of wallet o Investment in higher value products and services o Reduce debt o Recommence dividends o Re-engage M&A activity
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25 Key strengths One of New Zealand’s largest and leading providers of steel solutions, operating in market with strong long-term drivers Outlook improving • Signs of an improving outlook are beginning to emerge Positioned for the upswing • Diversified exposure to end markets • Broad range of in-demand steel products and solutions • National reach and technical capability • Long standing customer relationships and trust • Strong brand recognition Disciplined cost and capital management • Strong capital discipline and tight management of working capital and costs • Highly leveraged to market recovery Disciplined strategic execution • Strengthen the core and grow high value products and services
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Discussion
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27 Appendix
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28 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 FY26 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 2026 and 30 June 2025 reconcile to normalised earnings. Non- trading adjustments of $(55.7) million are included in the FY26 EBIT & EBITDA. Period ended 30 June EBITDA EBIT $000s FY26 FY25 FY26 FY25 Reported (45,815) (2,496) (72,201) (25,953) Palletised warehouse project costs - 1,364 - 1,364 Business restructuring costs 1,379 699 1,379 699 Acquisition and integration expenses 296 903 296 903 Software as a Service (SaaS) expenditure 2,174 1,601 2,174 1,601 Capital & strategic review costs 489 - 489 - Asset impairment charge 51,866 - 51,866 - Fair value (gain)/loss on contingent consideration (532) - (532) - Normalised 9,857 2,071 (16,529) (21,386)
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29 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 • Smart business 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 directly adjacent sectors Grow High Value Products and Services
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30 Customer, employee and sustainability update 1.13 1.14 0 3.5 3.43 0 1 2 3 4 5 FY22 FY23 FY24 FY25 FY26 Employee Satisfaction (eNPS2) Employee Safety Measure (TRIFR1) Emissions kgCO2e per tonne3,4 40 42 50 42 40 0 20 40 60 FY22 FY23 FY24 FY25 FY26 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. FY25 emissions do not include the Galvanizing operations, FY26 emissions excluding Galvanizing were 113kgCO2e Customer Satisfaction (NPS2)• Customer satisfaction remains at high levels due to our focus on making life easy for customers, offering best-in-class customer experience and solutions • Safety outcomes are positive, remain focused on zero harm • Employee satisfaction remains close to the top quartile – emphasis on safety, wellbeing and culture 35 29 31 32 30 0 10 20 30 40 Mar-23 Dec-23 May-24 Jun-25 Feb-26 eNPS Top Quartile 104 92 111 118 129 80 90 100 110 120 130 140 FY22 FY23 FY24 FY25 FY26 kgCO2-e (000s)
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31 Our business divisions Distribution Products sourced from preferred steel mills and distributed through our national network Processing (including Galvanizing) Products processed before sale, typically on a contract or project basis, including onsite installation services Steel Piping Systems Chain & Rigging Fastenings Rural Products Stainless Steel Sandblasting Grating Galvanizing Roofing Coil Processing Reinforcing Purlins ComFlor/CFDL Mesh
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32 Business performance FY25 volume restated to show zinc tonnes consumed in galvanizing (previously Tonnes processed ) *Gross Margin includes freight, direct and sub -contract labour **Processing is the Processing and Galvanizing segments combined. Full year contribution from Perry Metal Protection followin g settlement of acquisition on 1 May 2025 Distribution FY26 FY25 % of Group revenue 55.2% 59.4% Revenue ($m) 242.2 228.9 Gross Margin* 17.0% 17.4% Gross Margin $/tonne 600 653 Processing** FY26 FY25 % of Group revenue 44.8% 40.6% Revenue ($m) 196.7 156.5 Gross Margin* 22.5% 20.1% Gross Margin $/tonne 955 820 • Subdued demand for most of the year, some recovery in certain sectors and regions • Positive revenue growth offset by increasing costs • Customer satisfaction remains high • Demand for aluminium continues to grow rapidly • Fasteners, stainless and engineering steels back in growth mode • Volumes lifted YoY with varied demand across product categories • Mesh and Reo – low margin, sustained pricing pressure in a crowded market • CFDL/Comflor – project pipeline driving growth • Improving demand for Coil and Purlins • Roofing remains challenging in a competitive market • Galvanizing bolstering margin/tonne
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33 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 Normalised EBIT/EBITDA: This means EBIT and EBITDA excluding non-trading adjustments and unusual transactions 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 Tonnes: Represents tonnes sold by Distribution, Rollforming and Reinforcing and zinc tonnes consumed in the galvanizing process 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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34 • 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