Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — Investor Presentation (August 2023)
24 slides from Steel & Tube's investor presentation, Aug 31, 2023
Slide 1: NZSA Waikato Branch Meeting
NZSA Waikato Branch Meeting 31 August 2023
Slide 2: Agenda
Agenda • About Steel & Tube • Performance & Sustainability • Growth Strategy • Q&A 2
Slide 3: Intro Video
Intro Video
Slide 4: Making life easier for customers needing steel solutions
Making life easier for customers needing steel solutions 4
Slide 5: 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 6: Our business divisions
Our business divisions Products sourced from preferred Products processed before sale, typically on a contract or project basis, Infrastructure Distribution steel mills and distributed through our national network including onsite installation services Steel Piping Systems Chain & Rigging Roofing Co
Slide 7: Primary product and service offering by participants
Primary product and service offering by participants Engineering distribution Reinforcing processing processing Fasteners Stainless Roofing Plate Steel Wire steel 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 8: 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 9: FY23 further demonstrated Steel & Tube's value
FY23 further demonstrated Steel & Tube’s value • Strong financial performance despite market conditions • 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 • Record operati
Slide 10: Results at a glance
Results at a glance Successful strategy execution driving resilient performance • Solid financial performance, at top of guidance • Achieved Steel & Tube’s Normalised Revenue Volume EBITDA EBITDA second highest revenue $589.1m 146,409t $52.9m $51.9m result, just shy of last year’s -1.7% -12.4% -22.1
Slide 11: Repositioned the business for more challenging economic cycle while investing in growth
Repositioned the business for $m FY23 FY22 more challenging economic Trade and other receivables 79.3 103.3 cycle while investing in growth Inventories 139.2 192.5 Trade and other payables (69.4) (89.0) Group balance sheet summary Working Capital 149.1 206.8 • Significant reduction in inventory Tota
Slide 12: Building a sustainable business
Continuing strength in key Building a metrics in FY23 sustainable business Customer Satisfaction NPS 42 (FY22: 40) Long term business sustainability Employee Safety Measure supported by balance sheet strength eTRIFR 1.14 (FY22: 1.13) through the economic cycle with capacity Employee Engagement for g
Slide 13: Sustainable Steel
Sustainable Steel Steel facilitates a circular economy • Infinitely recyclable • Reduced construction waste • Durable • Non-toxic and inert 13 13
Slide 14: ESG Initiatives
ESG Initiatives New BYD EV in Christchurch LED replacement program complete Scrap steel collection 14
Slide 15: Strategic pathways
Strategic pathways Overall goal to deliver gross margin improvement – benefits expected from FY24 onwards Grow High Value Products, Continue to Strengthen the Core Services and Sectors • Best-in-class customer experience • High value products, diversified materials and value-added services • Cross s
Slide 16: Recent growth initiatives: Reporting back
Recent growth initiatives: Reporting back ORGANIC GROWTH PROGRAMMATIC M&A Plate Processing Aluminum Kiwi Pipe & Fittings Fasteners NZ • Plate processing revenues • Immediately earnings • Solid forward project work • FY23 revenue and EBIT up 76% and Gross Margin $ accretive in the pipeline slightly u
Slide 17: Macro opportunities
Macro opportunities Significant exposure to climate resilience, infrastructure and essential water services Climate resilience Infrastructure Steel is one of the world’s • Proven capability, capacity, and • Govt budget in excess of $71b vs most essential and sustainable expertise to deliver innovati
Slide 18: Economic drivers
Economic drivers Build share of sales in growth sectors FY24 FY27 Share of Sales (FY23) 4% Resellers Demand primarily driven by residential market trends 7% 10% Strong long term pipeline driven by climate investments, rebuild following Others Infrastructure weather events, and catch up on low invest
Slide 19: FY24 outlook
FY24 outlook Market outlook • Economic cycle likely to remain challenging; Well positioned to respond to the challenging recessionary environment to continue 1H24, as economic cycle and to take advantage of new well as usual slowdown in activity prior to election. market and product opportunities, i
Slide 20: Steel & Tube is strongly positioned to deliver through the economic cycle
Steel & Tube is strongly positioned to deliver through the economic cycle Key Strengths • Unmatched breadth of high-quality product and solutions • National network with regional strength • Enhanced customer value proposition and high levels of customer service • Disciplined operational, supply chai
Slide 21: Discussion
Discussion
Slide 22: Non-GAAP financial information
Non-GAAP financial information Year ended 30 June EBITDA EBIT $000s FY23 FY22 FY23 FY22 Reported 51,876 66,598 31,009 47,636 Loss on de-recognition of finance lease receivable 128 - 128 - Holiday pay provision release - (854) - (854) NZ IFRS 16 reversal of impairment (177) (527) (177) (527) Software
Slide 23: Glossary of terms
Glossary of terms EBIT: Earnings / (Loss) before the deduction of interest and NPS: Net Promoter Score – assists in measuring customer tax. This is calculated as profit for the year before net satisfaction and loyalty interest costs and tax Normalised EBIT/EBITDA: This means EBIT and EBITDA EBITDA:
Slide 24: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Holdings about the future, by its nature, involves inherent risks and Limited (“STU”). The information in this presentation is of a general uncertainties. Accordingly, nothing in this presentation is a promise nature only. It is not a
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