Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — Shareholder Meeting (November 2017)
35 slides from Steel & Tube's shareholder meeting presentation, Nov 16, 2017
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting 16 November 2017
Slide 2: Meeting Agenda
Meeting Agenda Chair’s Welcome and Overview Management Presentation Shareholder Discussion Resolutions Other Business Close of Meeting
Slide 3: Chair's Presentation
Chair’s Presentation Susan Paterson
Slide 4: A Modern and Innovative Company
A Modern and Innovative Company Providing Strength to New Zealand Steel & Tube is New Zealand’s leading steel solutions provider, helping customers build what the country needs. Our aspiration is to be a supply chain participant of scale, delivering superior value to our customers.
Slide 5: Delivering for New Zealanders
Delivering for New Zealanders Supporting critical infrastructure and construction projects: Supplied over 7Km of stainless steel pipework for Mangere wastewater treatment plant upgrade Supplied 1500 tonnes of reinforcing for the new Kapiti Expressway Supporting NZ’s young talent: The First Foundatio
Slide 6: Strategy Refresh
Strategy Refresh Build on One Company ethos, focus on adding further customer value and delivering profitable growth Leverage size, geographical presence Growth and comprehensive product offering Customer Build on ‘One Company’ ethos and Focus deliver solutions that meet customer needs Optimal Deliv
Slide 7: Refreshed Board
Refreshed Board Susan Paterson Christopher Ellis Independent Chair Independent Director, Appointed Jan 2017 Appointed Oct 2017 Steve Reindler Rosemary Warnock Independent Director Independent Director, Appointed Oct 2017 Appointed Sept 2010 Anne Urlwin Dean Pritchard Independent Director Independent
Slide 8: Delivering Shareholder Value
Delivering Shareholder Value Three Year Targets: Net debt to net debt + equity within target range of 30% - 35% Net debt to EBITDA < 2.75xs A dividend payout ratio target of between 60% and 80% of net earnings adjusted for any material non-ordinary items and subject to relevant factors at the time F
Slide 9: Fit for the Future
Fit for the future Fit for the Future
Slide 10: Management Presentation
Management Presentation Interim CEO, Mark Malpass
Slide 11: Management Presentation
Management Presentation FY17 Financial Summary Market Positions and Sector Exposure Resetting the Business Our Licence to Operate
Slide 12: FY17 Financial Summary
FY17 Financial Summary Overview: Revenue EBIT 600 40 35 500 Positive result although 30 400 25 below company’s 300 20 expectations 15 200 $Millions $Millions 10 Benefitted from acquisitions 100 5 0 and continuing focus on 0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 margin management and cost
Slide 13: Market Positions and Sector Exposure
Market Positions and Sector Exposure
Slide 14: Our Role in the Supply Chain
Our Role in the Supply Chain Steel Mills End Customers Large Minimum Order Enough scale to access Smaller order quantities Quantities (MOQ’s) Mill MOQ’s Broad range of products Narrow range of products Hold wider range of stock Short delivery times Long lead times Hold / break down bulk Price stabil
Slide 15: Sourcing Steel
(A Sourcing Steel Tonnes '000 1000 New Zealand steel market and international steel price mmm NZ Steel market | =mmpEast Asia HR Coil price (RHS) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1200 8 USD/ Tonne 200
Slide 16: Steel Market Landscape
Steel Market Landscape Market share based on S&T estimates and assumptions
Slide 17: Sector Exposure
Sector Exposure Most sectors show promise of growth, in particular: Construction growth is expected to drive demand for reinforcing, piping and structural steel Equipment and machinery manufacturing growth expected to drive demand for plates, coils, sections and fasteners The dairy sector is expecte
Slide 18: Resetting the Business
Resetting the Business
Slide 19: Resetting the Business Key Goals
Resetting the Business Key goals: Refreshed board of directors Refreshed delivering fresh thinking, 1. Provide superior value Board industry knowledge and to our customers business expertise Stronger leadership team and 2. Simplify the business Refreshed organisational structure Leadership Deep cust
Slide 20: Aligning People, Structure and Strategy
Aligning People, Structure and Strategy Objectives: Interim CEO Mark Malpass 1. Organise the business around our customers 2. Clear line of sight for Support improved Distribution Infrastructure Functions accountability 3. Unlock integration benefits from acquired businesses Marc Hainen Ross Pickwor
Slide 21: Our Licence to Operate
Our Licence to Operate Continue building capacity Health, and engagement within Safety and our workforce and create Environment a healthy, safe, fair and just culture Implement a ‘world-class’ Quality Quality Management Management System (QMS) that will set the industry standard and provide customer
Slide 22: Strengthening the Capital Structure
Strengthening the Capital Structure FY18 focus on: $M FY16 FY17 Capturing working capital Inventory 129.4 143.1 benefits from scale and technology investments Debtors 89.8 93.5 Trade and other Creditors (45.1) (54.4) Better inventory Working Capital 174.1 182.2 management ~$14m Cash and Cash Equival
Slide 23: Operating Environment Outlook
Operating Environment Outlook
Slide 24: Outlook and Guidance
Outlook and Guidance Trading Environment: Demand for steel continues to grow in line with global growth forecasts Steel prices on a rising trend 2017/18 Earnings Outlook: Short term downside before improvement HY18 EBIT $9 - 10 million lower than HY17 due to a review of inventory holdings (approx. 5
Slide 25: In Summary: Board's Focus
Al In Summary: Board’s Focus
Slide 26: Board Priorities
Board Priorities Talented CEO who can lead the CEO change needed and realise the Appointment potential of the company Focus on health & safety, quality Risk and clear understanding and Management oversight of risks relevant to the business Fully engaged to support the Financial and management team i
Slide 27: Shareholder Discussion
steel&tube Shareholder Discussion [COMMERCIAL IN CONFIDENCE] L
Slide 28: Resolutions
Resolutions
Slide 29: Resolutions: Election of Directors
Resolutions: Election of Directors 1 That Susan Paterson, having been appointed as a Director of the Company by the Board on 16 January 2017, and being eligible and having offered herself for election, be elected as a Director of the Company. 2 That Steve Reindler, having been appointed as a Directo
Slide 30: Resolutions: Re-election of Directors
Resolutions: Re-election of Directors 4 That Rosemary Warnock, who retires by rotation at the annual meeting and is eligible for re-election, be re-elected as a Director of the Company.
Slide 31: Resolutions: Auditor Fees and Directors' Remuneration
Resolutions 5 Auditor fees and expenses That the Directors be authorised to fix the auditors’ remuneration for the ensuing financial year. 6 Directors’ remuneration That the pool available for payment of Director fees be increased by $155,000 from $420,000 to $575,000 with such amount to be divided
Slide 32: Proxies
Proxies PROXY RESOLUTION FOR AGAINST DISCRETION 11,300,410 86,925 5,453,115 Election of Susan Paterson 67.10% 0.52% 32.38% 11,266,360 42,467 5,527,123 Election of Steve Reindler 66.92% 0.25% 32.83% 11,225,222 62,747 5,523,181 Election of Chris Ellis 66.77% 0.37% 32.85% 11,050,475 221,038 5,539,837 R
Slide 33: Other Business, Close of Meeting
Other Business Close of Meeting
Slide 34: Disclaimer
DISCLAIMER This presentation has been prepared by Steel & Tube Limited (“STU”). The information in this presentation is of a general nature only. It is not a complete description of STU. This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or a
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