Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — Shareholder Meeting (November 2024)
36 slides from Steel & Tube's shareholder meeting presentation, Nov 28, 2024
Slide 1: Stronger Together
SiC steel&tube STRONGER TOGETHER © Click to view video
Slide 2: 2024 Annual Shareholders' Meeting
2024 Annual Shareholders’ Meeting 28 November 2024
Slide 3: Online Meeting
Online Meeting VOTING TAB Q&A TAB 3
Slide 4: Agenda
Agenda • Chair’s Presentation • Management Presentations • Discussion • Resolutions • Other Business • Meeting Close/Refreshments 4
Slide 5: Chair | Susan Paterson
Chair | Susan Paterson
Slide 6: Your Board
Your Board Susan Paterson Andrew Flavell Steve Reindler Christopher Ellis Karen Jordan John Beveridge Chair & Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director Appointed Jan 2017 Appointed Oct 2021 Appointed Aug 2017 Appoint
Slide 7: Leadership team
Leadership team Peter Ensor Anna Morris Sam Reindler Peter Reiber Mark Malpass Damian Miller Richard Smyth Raffaella del Prete Marc Hainen Daryll Maiden GM Reinforcing GM People & GM Logistics & GM Rollforming Chief Executive GM Quality, Chief Financial Chief Digital Officer GM Strategic Acting GM &
Slide 8: Strategic Goals
Strategic Goals Clear growth strategy in place, building on strong foundations to strengthen the core and growth in high value products and services Customer Growth Shareholder The preferred Increase valuation Deliver increasing supplier for steel through organic value and returns solutions and grow
Slide 9: Strongly positioned to navigate the current cycle
Strongly positioned to successfully navigate the current cycle, leverage future demand and take advantage of opportunities, both now and in the future 9
Slide 10: FY24 key financial measures
FY24 key financial measures Continued solid performance in a challenging trading environment Revenue Normalised EBIT NPAT $479.1m $14.5m $2.6m -18.7% -54.8% -84.7% ROFE Net Cash FY24 Dividends 4.8% $8.7m 6.0 cps FY23: 9.9% +33.8% (Gross yield 9.7%) Earnings Before Interest and Tax (EBIT), Earnings B
Slide 11: Capital management
Capital management Balance sheet providing resilience and strength through the cycle; capacity for growth when the cycle turns Net (Debt)/ Cash Position • No borrowings, $100m facility in place 50 50% • Net cash $16.7m end-Oct 24 0 20% • Strong cashflows supporting strategic Net Debt / Equity initia
Slide 12: Investor returns
Investor returns Gross Dividend Returns • FY24 dividend payout of 10 14% 6cps above policy range 12% 8 • Attractive dividend yield of 10% c.10% over past two years 6 8% • Introduced Dividend 6% Reinvestment Plan – active 4 for final FY24 dividend 2 4% 2% - 0% 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24
Slide 13: Building a strong business
Building a strong business Customer, people and sustainability performance Customer satisfaction FY24 the best in Employee satisfaction in Reduction expected as continues at high levels company’s history industry top quartile volumes grow Net Promoter Score1 eNPS1 eTRIFR2 Scope 1 & 2 Industry Averag
Slide 14: In the Boardroom
Priority topics for the Board • Stay the course on strategy In the • Return to profit Boardroom • Leverage the economic recovery • Value adding growth • Risk management and resilience 14
Slide 15: Positioned to benefit as demand returns
Positioned to benefit as demand returns • Proven dual pathway strategy – strengthen the core, and grow high value products and services • Financial and operating model delivering inherent operating leverage • Robust balance sheet strength providing resilience & supporting growth • Proven organic gro
Slide 16: CEO | Mark Malpass
CEO | Mark Malpass
Slide 17: Actively managing market challenges
Actively managing market challenges Market FY24 FY25 Response and Mitigation Challenges • Strong balance sheet and lean cost structure Weak economic • Customer focused - expanding existing customer share of wallet High High drivers • Focus on higher value products and services • Diversified business
Slide 18: FY25 four-month trading update
FY25 four-month trading update Challenging market conditions impacting across the sector • Continuing weakness in New Zealand 4m YTD 4m YTD economic environment July to October FY25 FY24 Var. • Revenue and earnings affected, but will Sales volumes (000t) 35.5 43.5 (8.0) improve when demand returns •
Slide 19: FY25 focus and priorities
FY25 focus and priorities Tight control through the cycle; preparing to deliver when demand returns • Laser focus on capturing revenue and driving profitability • Expand offering and sales to current clients – cross-sell opportunities • Continue to take cost out, while retaining the ‘muscle’ • Conti
Slide 20: Business strategy
Business strategy
Slide 21: Strategic pathways
Strategic pathways Overall goal to deliver gross margin improvement Grow High Value Products and Continue to Strengthen the Core Services • Best-in-class customer experience • High value products, diversified materials and value-added services • Cross sell products and services • Diversify customer
Slide 22: Selling more products to each customer
Selling more products to each customer Broad product range provides competitive advantage, focus on increasing our category share per customer 23% increase in customers buying 3 or more products 18% 24% 22% 30% 1 Category 2 Categories 10% FY23 FY24 3 Categories 12% 4 Categories 16% 25% 5 or More Cat
Slide 23: Operating leverage
Operating leverage Scenario modelling FY24’s operating leverage Controlling the controllables at increasing product volume levels Volume EBIT • Lift in market activity, combined with improvements in operating 70 Historical Volume scenarios 200 leverage, enables magnification 60 35% increase in Volum
Slide 24: Growth focused on two key pathways
Growth focused on two key pathways Organic growth and M&A activity Growth Criteria M&A Criteria • Industry aligns with current Additional criteria • Products that fit into our existing operations, enhancing capability • Procurement distribution network leveraging or range • People our national footp
Slide 25: Growth investments adding value
Growth investments adding value Recent growth initiatives Completed M&A PLATE PROCESSING ALUMINIUM LAST-MILE KIWI PIPE AND FASTENERS NZ • Value-add service • Well supported by FREIGHT DELIVERY FITTINGS • High quality, strong improving margin customers • Operations • Strong earnings ongoing demand ca
Slide 26: Outlook
Outlook
Slide 27: Long term trends are favourable
Long term trends are favourable Short term market softness; well positioned to capture the upside Commercial Resellers Residential Infrastructure Manufacturing
Slide 28: Ready to win.
Ready to win. • Leading provider of steel products and solutions • Strong and loyal customer partnerships • Expert team and technical know-how • Proven strategy delivering value and growth • Favourable long term demand drivers • Robust balance sheet providing optionality 28
Slide 29: Shareholder discussion
Shareholder discussion 29
Slide 30: Resolutions
Resolutions 30
Slide 31: Resolutions
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 Susan Paterson That Susan Paterson, who retires by rotation and is eligible for re-election, be re-elected as a director of th
Slide 32: Other business, Close of the Meeting
Other business Close of the Meeting 32
Slide 33: Steel & Tube Stronger Together
SiC steel&tube STRONGER TOGET
Slide 34: Non-GAAP financial information
Non-GAAP financial information Period ended 30 June EBITDA EBIT $000s FY24 FY23 FY24 FY23 Reported 31,415 51,876 9,569 31,009 Project Strong costs 2,701 - 3,192 - Business restructuring costs 550 - 550 - Loss on de-recognition of finance lease receivable - 128 - 128 NZ IFRS 16 reversal of impairment
Slide 35: 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 period before net satisfaction and loyalty interest costs and tax Normalised EBIT/EBITDA: This means EBIT and EBITDA EBITDA
Slide 36: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Holdings operations and business, and business strategy of STU. Information Limited (“STU”). The information in this presentation is of a general about the future, by its nature, involves inherent risks and nature only. It is not a com
Steel & Tube Holdings — Shareholder Meeting (November 2024) on 6ix