Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — NZSA Wellington Branch Presentation (August 2020)
21 slides from Steel & Tube's conference presentation, Aug 11, 2020
Slide 1: NZSA Wellington Branch Presentation
NZSA Wellington Branch Presentation 11 August 2020 1
Slide 2: Steel & Tube is…
STEEL & TUBE IS…. • One of New Zealand’s leading providers of steel solutions, and a proud New Zealand company, with over 67 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
Slide 3: Our Business - Divisions
OUR BUSINESS - DIVISIONS DISTRIBUTION INFRASTRUCTURE Products sourced from preferred steel mills and Products processed before sale, typically on a contract or distributed through our national network project basis, including onsite installation services Roll-forming STEEL RURAL PRODUCTS ROOFING COI
Slide 4: Respected Supplier Partner
RESPECTED SUPPLIER PARTNER We have participated in a number of large projects, on the back of a growing reputation for quality, customer service, delivery and operational performance. Installation of Comflor as part of Installation of Comflor in Westfield Installation of epoxy coated the new Sky Wak
Slide 5: Sector Exposure – 1H20 Sales Share
SECTOR EXPOSURE – 1H20 SALES SHARE Infrastructure 13% Non-food Manufacturing 24% Non-Residential Construction Food 24% Manufacturing 14% Residential Retail / Construction Wholesale 15% 10% 5
Slide 6: Market Conditions
MARKET CONDITIONS Reduced vertical construction activity and softer stainless market has impacted Steel & Tube revenues Non-Residential Consents – Floor Area RBL Non- Residential Crane Index 3,900 170 Base Dec -15 = 100 3,700 160 150 3,500 140 3,300 130 3,100 120 2,900 110 100 2,700 FY19 FY20 90 2,5
Slide 7: Sector Outlook
SECTOR OUTLOOK • Residential near-term demand strong, supported by tight supply, low mortgage rates, and strong first home buyer interest • Non- residential demand remains soft with many projects being Construction delayed due to uncertainty • Residential and business investment expected to contract
Slide 8: Our Strengths
OUR STRENGTHS Strong Board and Management with deep industry experience Passionate and engaged workforce Loyal and extensive customer base Well considered and articulated strategy In-depth understanding of our business and opportunities Breadth and depth of our distribution network and product offer
Slide 9: FY17 to FY20 Strategic Progress
FY17 TO FY20 STRATEGIC PROGRESS Late-2017: Embarked on an extensive company- wide reset to drive long-term sustainable earnings improvement and rebuild shareholder value. Moving Forward: Steel & Tube as a leader in JOURNEY TO REFRESHED the sector and the preferred BOARD, STRATEGY & LEADERSHIP choice
Slide 10: Strategic Pillars
STRATEGIC PILLARS Our four pillars are fundamental for our business and underpin all that we do. COMMITMENT TO QUALITY, OPERATIONAL AND SUPPLY CHAIN HEALTH AND SAFETY EXCELLENCE Safe and healthy work Leverage our procurement and environment supply chain scale Quality processes Excellent inve
Slide 11: Board
BOARD Susan Paterson Christopher Ellis Steve Reindler Independent Chair Independent Director Independent Director Appointed Jan 2017 Appointed Oct 2017 Appointed Oct 2017 Anne Urlwin John Beveridge Independent Director Independent Director Appointed June 2013 Appointed August 2019
Slide 12: Management Team
MANAGEMENT TEAM OPERATIONAL MANAGEMENT Mark Malpass Marc Hainen Mohammed Afroz David McGregor Chief Executive Officer GM Distribution GM Roll Forming GM Reinforcing & Wire BUSINESS MANAGEMENT Greg Smith Anna Morris Damian Miller Mike Hendry Chief Financial Officer GM People & Culture GM Quality, Hea
Slide 13: Commitment to Safety and Quality
KEY INITIATIVES COMMITMENT TO Health & Safety Quality, Health & Safety committees at every level of SAFETY AND the organisation Comprehensive reporting covering risk QUALITY management, lead and lag indicator performance, and incident and non-conformance reviews TRIFR below comparable benchmar
Slide 14: Putting the Customer at the Heart of the Business
PUTTING THE CUSTOMER AT THE HEART OF THE BUSINESS Products and services to meet customer needs Leverage our technical expertise Delivery in full, on time and in specification KEY INITIATIVES Sales account alignment, management and sales excellence programme Improvement in delivery performance
Slide 15: Operational and Supply Chain Excellence
OPERATIONAL AND SUPPLY CHAIN EXCELLENCE Leverage our procurement and supply chain scale Manufacturing excellence Excellence in inventory management Employ data analytics to better service our customers Delivering operational efficiencies KEY INITIATIVES Supply chain improvements Inventory Manage
Slide 16: Supporting a Winning Team
SUPPORTING A WINNING TEAM Develop leaders Everyone matters Provide a rewarding workplace Recognise personal and team contributions KEY INITIATIVES Employee engagement Leadership development Sales training English and Numeracy Programme First Foundation Scholarships Supporting the ‘Mates
Slide 17: Our Response to the COVID-19 Pandemic
OUR RESPONSE TO THE COVID-19 PANDEMIC Contingency planning and implementation of precautionary measures During L4 lockdown, all sites closed except where needed to supply essential services Customers supported online and through safe business trading Prudent approach to capital management le
Slide 18: FY20 Trading Update – August 2020
FY20 TRADING UPDATE – 10 August 2020 • FY20 normalised EBIT is expected to be break-even subject to completion of audit work - on a pre-NZ IFRS 16 basis, FY20 normalised EBIT is expected to be a loss of approximately $5m to $7m • STU expects to report strong operating cash flows of approximately $26
Slide 19: Moving Forward
MOVING FORWARD Better Ways of Working Full Service Innovation and Provider Technology Making It Easy Strategic One Team Pathways 19
Slide 20: Discussion
DISCUSSION
Slide 21: 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,
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