Vulcan Steel Ltd. · ASX:VSL
Vulcan Steel — Shareholder Meeting (November 2024)
39 slides from Vulcan Steel's shareholder meeting presentation, Nov 1, 2024
Slide 1: 2024 Annual meeting of shareholders – Presentations
Vulcan Steel Limited (ASX: VSL, NZX: VSL) ASX and NZX release 1 November 2024 2024 Annual meeting of shareholders – Presentations Attached are the following documents in connection with Vulcan Steel Limited’s (Vulcan) 2024 annual meeting of shareholders (Annual Meeting) to be held at 11:00am NZT (9:
Slide 2: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS 1 NOVEMBER 2024
Slide 3: Welcome
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Welcome Our culture is founded on teamwork and a shared commitment to continuous improvement. It is this collective ambition for growth that propels us forward. Focusing on what we can control, creating momentum with each coordinated effort ensure
Slide 4: Agenda
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 01 SHORT VIDEO 02 CHAIR ADDRESS 03 MANAGING DIRECTOR AND Agenda CHIEF EXECUTIVE OFFICER ADDRESS 04 Q&A 05 RESOLUTIONS FOR APPROVAL 06 VOTING 07 GENERAL BUSINESS 3
Slide 5: Voting and asking questions
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Voting and asking questions MUFG Corporate Markets helpdesk New Zealand – 0800 200 220 Australia – 1800 990 363 4
Slide 6: Your Board
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Your Board Russell Chenu Rhys Jones Adrian Casey Wayne Boyd CHAIR AND INDEPENDENT MANAGING DIRECTOR AND EXECUTIVE DIRECTOR AND NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER Retiring at close of this
Slide 7: Your Lead Team
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Your Lead Team Rhys Jones Adrian Casey Kar Yue Yeo James Wells Gavin Street MANAGING DIRECTOR AND CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER CHIEF INFORMATION OFFICER CHIEF COMMERCIAL OFFICER CHIEF EXECUTIVE OFFICER Helene Deschamps Lou Cadma
Slide 8: Video
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 01 Video Working at Vulcan 7
Slide 9: Agenda
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 01 SHORT VIDEO 02 CHAIR ADDRESS 03 MANAGING DIRECTOR AND Agenda CHIEF EXECUTIVE OFFICER ADDRESS 04 Q&A 05 RESOLUTIONS FOR APPROVAL 06 VOTING 07 GENERAL BUSINESS 8
Slide 10: Chair address
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 02 Chair address Russell Chenu 9
Slide 11: Chair address
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Chair address • A good FY24 performance considering operating conditions • Further executed on our growth strategy with the integration of systems for our aluminium business now completed • Board update 10
Slide 12: FY24 dividend of NZ 24 cents per share
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO FY24 dividend of NZ 24 cents per share • Vulcan’s declared dividend of NZ$31.5m for FY24 TOTAL DECLARED DIVIDEND PER SHARE represented a 79% payout on the company’s NZ$40m net profit after tax (adjusted for significant items) 70 • The company has
Slide 13: Vulcan's share price performance
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Vulcan’s share price performance Compared to ASX300 performance Compared to NZX50 performance • -17.5% vs S&P/ASX300 in the last 12 months • -4.5% vs S&P/NZX50 Capital Index in the last 12 months • -5.2% vs S&P/ASX300 since IPO (November 2021) • 2
Slide 14: Vulcan's environment and sustainability update
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Vulcan’s environment and sustainability update Environment 2024 EMISSIONS BREAKDOWN • Scope 1 and 2 greenhouse gas (GHG) emissions were approximately 100 tonnes lower in FY24, at 13,865 tonnes, compared with FY23 • Total Group Scope 1 and 2 GHG em
Slide 15: MD & CEO address
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 03 MD & CEO address Rhys Jones 14
Slide 16: Sound financial returns in FY24
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Sound financial returns in FY24 ROCE 1 REVENUE NZ$ ADJUSTED EBITDA 3 NZ$ ADJUSTED NPAT 4 NZ$ 13.4% $1,064m $148m $40m 2 -7.9% from 21.3% in FY23 -15% on $1,245m in FY23 -33% on $219m in FY23 -58% on $95m in FY23 OPERATING CASHFLOW NZ$ CASH CONVERS
Slide 17: Operational highlights
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Operational highlights +3.6% Growth in active customer base* 6 Number of hybrids sites added or hybridised in FY24 97.9% FY24 DIFOT** * Based on customers that transacted with Vulcan at least once in 2H FY24 vs 2H FY23 (excludes aluminium customer
Slide 18: Vulcan's business
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Vulcan’s business Vulcan added aluminium to the company’s steel and metals distribution and processing services offering in August 2022 STEEL METALS STEEL DISTRIBUTION PLATE PROCESSING COIL PROCESSING STAINLESS STEEL ENGINEERING STEELS ALUMINIUM D
Slide 19: Vulcan's network
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Vulcan’s network Opportunity to drive more operating leverage 66 1,326 22.5k S T R A T E G I C A L L Y L O C A TE D S I TE S C O M PA N Y E M PL O YE E S A C TI V E C US TO M E R S 1 from our footprint and scale DA R W I N CA I RN S T OW N SVI L L
Slide 20: Growth strategy and update
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Growth strategy and update Expansion of Business Brownfield Entry into new offering and Mergers and improvement expansion geographies hybrid locations Acquisitions initiatives • Strong track record in • Expanded into 10 regional • Increasing the b
Slide 21: Priorities for FY25
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Priorities for FY25 1 2 3 4 5 Maintain and further Position ourselves Build bench strength Explore other Continue with new nurture customer to take advantage in Australia and New complementary hybrid sites rollout service mindset of the emerging Z
Slide 22: Vulcan's health and safety & community update
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Vulcan’s health and safety & community update Health and safety Community and social • Committed to providing a safe and healthy work environment • Support to local community organisations: • Trialling artificial intelligence assisted technology t
Slide 23: Trading in 1QFY25
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO Trading in 1QFY25 • Revenue decline of 13% year-on-year (yoy) was driven by lower average selling price and volume compared with previous corresponding period • The yoy weakness in 1QFY25 EBITDA was principally due to a combination of lower volume
Slide 24: FY25 outlook
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO FY25 outlook • As outlined in our 1QFY25 trading update on 21 October 2024, business conditions for our industry remained soft across most market verticals and geography, especially in New Zealand. These conditions are expected to continue for the
Slide 25: Q&A
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 04 Q&A 24
Slide 26: Resolutions for approval
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 05 Resolutions for approval 25
Slide 27: Auditor's remuneration
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO RESOLUTION 1 Auditor’s remuneration • That the Board of Vulcan is authorised to fix the fees and expenses of Deloitte Limited (New Zealand), as Vulcan’s auditor, for the financial year ending 30 June 2025 • Proxies received: FOR 43,850,060 shares
Slide 28: Re-election of Carolyn Steele as a director
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO RESOLUTION 2 Re-election of Carolyn Steele as a director • That Carolyn Steele, who retires and in accordance with the terms of Vulcan’s Constitution and is eligible for re-election, be re-elected as a director of Vulcan • Proxies received: FOR 42
Slide 29: Re-election of Russell Chenu as a director
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO RESOLUTION 3 Re-election of Russell Chenu as a director • That Russell Chenu, who retires and in accordance with the terms of Vulcan’s Constitution and is eligible for re-election, be re-elected as a director of Vulcan • Proxies received: FOR 42,7
Slide 30: Grant of performance share rights to Rhys Jones as MD and CEO
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO RESOLUTION 4 Grant of performance share rights to Rhys Jones as MD and CEO • That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the issue of 321,188 performance share rights to Vulcan’s Managing Director and Chief Executi
Slide 31: Grant of performance share rights to Adrian Casey as COO
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO RESOLUTION 5 Grant of performance share rights to Adrian Casey as COO • That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the issue of 105,263 performance share rights to Vulcan’s Chief Operating Officer, Adrian Casey, u
Slide 32: Voting
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 06 Voting 31
Slide 33: General Business
VULCAN ANNUAL MEETING OF SHAREHOLDERS 2024 VULCAN.CO 07 General Business 32
Slide 34: Thank-you for joining us.
Thank-you for joining us. VULCAN.CO
Slide 35: Address from the Chair of the Board of Directors, Russell Chenu
Address from Vulcan Steel Limited’s Chair of the Board of Directors, Russell Chenu Ladies and Gentlemen, fellow shareholders. The Year in Review Vulcan experienced continuing economic headwinds in all of our major market segments in Australia and New Zealand in the financial year ended June 2024. As
Slide 36: Address from Chair of Board: Outlook
Address from Chair of Board Outlook Vulcan operates in a highly cyclical industry. The company is very experienced in managing through periods of reduced demand like we experienced in FY2024 and which has persisted so far into the FY2025 year. However, opportunities for a robust business with a stro
Slide 37: Address from the Managing Director and CEO, Rhys Jones
Address from Vulcan Steel Limited’s Managing Director and Chief Executive Officer, Rhys Jones Thank you Russell, and welcome everyone to Vulcan Steel’s 2024 Annual Shareholders’ Meeting. Summary of FY2024 Performance The past year has been the most challenging period since at least the GFC with poor
Slide 38: Address from MD and CEO: FY 2025 Priorities, Health and Safety
Address from Managing Director and Chief Executive Officer In the current environment we have concentrated on ensuring we maintain or improve our share of a customers’ total spend by offering other products in our range or services such as product processing. The proprietary Vulcan IT system enables
Slide 39: Address from MD and CEO: First Quarter Trading Update and Outlook
Address from Managing Director and Chief Executive Officer First Quarter Trading Update In the September quarter trading, revenue decline of 13% year-on-year (yoy) was driven by lower average selling price and volume compared with previous corresponding period. The 30% year-on- year decline in 1Q FY