Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — Craigs Investment Partners presentation (September 2022)
21 slides from Steel & Tube's conference presentation, Sep 21, 2022
Slide 1: Craigs Investment Partners
Craigs Investment Partners 21 September 2022
Slide 2: Agenda
Agenda About Steel & Tube Performance & Sustainability Growth Strategy Q&A 2
Slide 3: Steel & Tube
Steel & Tube • One of New Zealand’s leading providers of steel solutions • A proud New Zealand company, with over 69 years of trading history • 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’
Slide 4: Our business divisions
Our business divisions Products sourced from preferred Products processed before sale, typically Infrastructure Distribution steel mills and distributed through on a contract or project basis, including our national network onsite installation services Steel Piping Systems Chain & Rigging Roofing Co
Slide 5: Primary product and service offering by participants
Primary product and service offering by participants Stainless steel Engineering distribution Reinforcing processing processing Fasteners Roofing Plate Steel Wire steel steel Coil Steel & Tube 5 5 5 5 5 5 5 5 5 Fletcher Steel j 5 5 5 5 5 5 5 Vulcan 5 5 5 5 5 United Industries 5
Slide 6: Our journey
Our journey Our goal is to be the best in the sector, the preferred choice for steel products and solutions and a trusted partner for our customers. FY18 - FY20 FY21 – FY22 FY23 onwards Project Strive – Value of turnaround company wide reset Embedded value. now apparent. Strong to refocus, reduce Fo
Slide 7: FY22 demonstrated Steel & Tube's value
FY22 demonstrated Steel & Tube’s value • Record financial performance • Robust operating model that will deliver through the economic cycle • Clear focus on continuing to strengthen the core and investing in high value products, services and sectors • Goal to deliver sustainable double-digit ROFE 7
Slide 8: Record results with improvement in all key metrics
Record results with improvement in all key metrics Results driven by strong sector demand, trading disciplines, customer service, operational performance and supply chain management Revenue Volume EBITDA EBIT NPAT $599.1m 167,209t $66.6m $47.6m $30.2m +24.6% +5.7% +72.5% +130.0% +96.4% Dividend ROFE
Slide 9: Five year transformation
Five year transformation Embedded value from turnaround programme; growth strategy now underway Revenue EBITDA EBIT NPAT 599.1 47.6 30.2 66.6 495.8 $m $m $m $m (28.1) (32.1) (36.2) FY18 FY22 FY18 FY22 FY18 FY22 FY18 FY22 Volume Normalised EBITDA Normalised EBIT ROFE 47.9 66.9 14.6 167 150 $m Tonnes
Slide 10: FY22 Shareholder Returns
FY22 Shareholder Returns 5 year transition complete, now focused on growth and continuing to generate Steel & Tube delivers a high dividend yield sustainable double-digit ROFE: FY22 Dividend: 13.0 cps • Quality business with strong foundations embedded Represents a dividend yield of 11.4% (Based on
Slide 11: Building a sustainable business
Building a sustainable business Our long term aim is to operate our business in a way that is financially rewarding for our shareholders and Maximising steel’s positive for our people, our customers contribution to a Supporting our and our planet. sustainable and people and low emission customers St
Slide 12: ESG Scorecard
ESG Scorecard Positive progress being made on all key metrics Employee Safety Measure Customer satisfaction TRIFR 1.13 – substantially than industry standards* NPS of 40 for FY22 6 4.9 50 40 40 34 4 24 NPS SCORE 30 TRIFR 1.86 20 2 1.13 10 0 0 FY20 FY21 FY22 FY20 FY21 FY22 Employee Engagement Carbon
Slide 13: Our purpose
13 Our purpose To make life easier for our customers needing steel solutions • Providing a one-stop-shop for the most essential steel products – from foundation to roof and everywhere in between • Doing everything we can to make it easy for our customers to do business with us • Always looking for w
Slide 14: Strategic focus
Strategic focus Growth focused on strengthening the core and building higher value products, services and sectors to drive gross margin improvement – benefits expected from FY24 onwards Grow High Value Products, Continue to Strengthen the Core Services and Sectors • Continue to build best-in-class c
Slide 15: Expanded plate processing capability and offer
Expanded plate processing capability and offer • Attractive value-added products • Growing market sector • Replacement of obsolete equipment with large, high capacity machinery • Market leading – digitally enabled, automated cutting, optimises remnants • Operational from June 2022, solid forward wor
Slide 16: Kiwi Pipe and Fittings
Kiwi Pipe and Fittings • Symbolic of strategy to selectively invest in high value products and segments • Niche strength – fire and water reticulation products • Builds on Steel & Tube’s existing offer • Provides scale, market share growth and immediately earnings accretive 16 32
Slide 17: FY23 Outlook
FY23 Outlook Robust operating model, well positioned to deliver through the economic cycle Trading conditions: Sector Outlook • Continuing volatility in global and local • Significant rebuilding of Government economies expected investment in infrastructure (+56% over • Steel pricing expected to rema
Slide 18: Discussion
Discussion
Slide 19: Non-GAAP Financial
Non-GAAP Financial EBITDA EBIT Period ended 30 June Restated Restated $000s FY22 FY21 FY22 FY21 Reported 66,598 38,614 47,636 20,707 Holiday Pay provision release (854) - (854) - NZ IFRS 16 reversal of impairment (527) (1,546) (527) (1,546) Gain on sale of properties (1,215) (1,215) Software as a Se
Slide 20: Glossary of Terms
Glossary of Terms EBIT: Earnings / (Loss) before the deduction of interest and Normalised EBIT/EBITDA: This means EBIT and EBITDA tax. This is calculated as profit for the year before net excluding non-trading adjustments and unusual transactions interest costs and tax eTRIFR: Employee Total Recorda
Slide 21: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Limited about the future, by its nature, involves inherent risks and (“STU”). The information in this presentation is of a general nature uncertainties. Accordingly, nothing in this presentation is a promise only. It is not a complete
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