Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — H1 2014 Earnings Presentation
18 slides from Steel & Tube's earnings presentation, Feb 20, 2014
Slide 1: 2014 H1 Update
2014 H1 Update Dave Taylor, CEO Janie Elrick, CFO February 2014
Slide 2: Disclaimer
Disclaimer This presentation, dated 20 February 2014, provides additional comment on Steel & Tube’s financial results announcement for the period ending 31 December 2013. It should be read in conjunction with the documents attached to that announcement, which highlight future outlook expectations of
Slide 3: Global Markets: Global steel commodity prices
Global Markets Global steel commodity prices • Raw material prices recovered from mid year dips and were expected to firm further in Q1 2014… • However, spot iron ore prices have softened to US$120 per tonne • …and scrap to just under US$370 per tonne • Volatility continues • Most of 2013 saw finish
Slide 4: Global Markets: exchange rates volatility
Global Markets Global steel commodity prices - exchange rates volatility • Significant swings in recent months • An appreciating /strong NZ$ in H2 2013, impacted Oct 1 price increase
Slide 5: Global steel production and industrial activity
Global Markets Global steel production and industrial activity • Production continues to slowly increase, dominated by China • Underlying global demand remains soft in relative terms • There are indications of a revival in global manufacturing • Although China’s demand outlook is less positive Sourc
Slide 6: New Zealand Markets: Steel volumes
New Zealand Markets Steel volumes • Demand is slowly returning • Total steel demand has increased 30k to 726k tonnes • This is still 16% below pre-GFC figures and 25% below the highest consumption in 2005 Source: Stats NZ; S&T Research
Slide 7: Key sector trends – building consents
New Zealand Markets Key sector trends – building consents ($m) • Non-residential consents have improved by 6.9 % by value • Although the last quarter to Dec 13 was soft • Solid demand for structural products • Residential consents have increased 29.7% by value • Led by Christchurch and Auckland but
Slide 8: Key sector trends – actual building work
New Zealand Markets Key sector trends – actual building work ($m quarterly) • While consents are increasing especially, actual building work lags • Non-residential consents and actual work reducing in recent months Source: Stats NZ
Slide 9: Key sector trends – rural
New Zealand Markets Key sector trends – rural • Commodity index has risen on the back of dairy products • Meat and wool is recovering some lost ground while forestry remains at historical levels • Improving levels of investment • Fonterra announces record cash pay- out • Dairy farm income expected t
Slide 10: Key sector trends – manufacturing
New Zealand Markets Key sector trends – manufacturing ($m) • Volatility continues from quarter to quarter • Recent months showing improvement • Some ‘pull-through’ from construction sector Source: Stats NZ
Slide 11: Business performance – Revenue and Profit
Steel & Tube Business performance – Revenue and Profit Source: S&T financial reports
Slide 12: Business performance – Operating Cash
Steel & Tube Business performance – Operating Cash Source: S&T financial reports
Slide 13: Business Performance – Balance Sheet and Gearing
Steel & Tube Business Performance – Balance Sheet and Gearing Source: S&T financial reports
Slide 14: Business performance
Steel & Tube Business performance Against the backdrop of a slowly improving economic environment: • Positive half-year result reflects solid performance • Sales increased by $12.1m to $211.7m – up by 6% on improved volumes • Margins consistent with H1 2013, despite lower selling prices • Depreciati
Slide 15: One Company reinvigoration
Steel & Tube One Company reinvigoration Ongoing investment in people and infrastructure sees S&T well placed to support projected increase in sector activity: • Key building blocks of supply chain initiative are now in place and we expect to see increasing benefits • New plant and equipment commissi
Slide 16: Outlook
Steel & Tube Outlook More solid evidence of the beginnings of economic upturn: • More optimistic outlook globally, despite muted growth and debt concerns in China • Positive sentiment suggests New Zealand is set for marked turnaround • Domestic steel demand is slowly increasing – but still 16% off p
Slide 17: Summary
Steel & Tube Summary External: Internal: • Positive economic sentiment • Focused on delivering multiple growing initiatives to strengthen overall capacity and capability • Activity levels and volumes increasing across sectors and • Ongoing One Company product categories reinvigoration ensures we are
Slide 18: Thank you
Thank you Sc
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