Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — NZX Retail Series 2022
23 slides from Steel & Tube's conference presentation, Sep 6, 2022
Slide 1: NZX Retail Series
NZX Retail Series 6 September 2022
Slide 2: Agenda
Agenda About Steel & Tube Mark Malpass Performance & Sustainability Richard Smyth Growth Strategy Mark Malpass Q&A 2
Slide 3: Steel & Tube
Steel & Tube • One of New Zealand’s leading providers of steel solutions • A proud New Zealand company, with over 69 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 country’
Slide 4: Our business divisions
Our business divisions Products sourced from preferred Products processed before sale, typically Infrastructure Distribution steel mills and distributed through on a contract or project basis, including our national network onsite installation services Steel Piping Systems Chain & Rigging Roofing Co
Slide 5: Primary product and service offering by participants
Primary product and service offering by participants Stainless steel Engineering distribution Reinforcing processing processing Fasteners Roofing Plate Steel Wire steel steel Coil Steel & Tube ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 Fletcher Steel ✓j ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 5 Vulcan ✓5 ✓5 ✓5 ✓5 ✓5 United Industries ✓5
Slide 6: Our journey
Our journey Late-2017 embarked on an extensive company- wide reset to drive sustainable earnings Moving Forward improvement and rebuild shareholder value. Steel & Tube leadership Foundation now built and moving forward. in the sector and the preferred choice for steel products and solutions across t
Slide 7: FY22 demonstrated Steel & Tube’s value
FY22 demonstrated Steel & Tube’s value • Record financial performance • Robust operating model that will deliver through the economic cycle • Clear focus on continuing to strengthen the core and investing in high value products, services and sectors • Goal to deliver sustainable double-digit ROFE 7
Slide 8: Performance & Sustainability
Performance & Sustainability 8
Slide 9: Record results with improvement in all key metrics
Record results with improvement in all key metrics Results driven by strong sector demand, trading disciplines, customer service, operational performance and supply chain management Revenue Volume EBITDA EBIT NPAT $599.1m 167,209t $66.6m $47.6m $30.2m +24.6% +5.7% +72.5% +130.0% +96.4% Dividend ROFE
Slide 10: Five year transformation
Five year transformation Embedded value from turnaround programme; growth strategy now underway Revenue EBITDA EBIT NPAT 599.1 47.6 30.2 66.6 495.8 $m $m $m $m (28.1) (32.1) (36.2) FY18 FY22 FY18 FY22 FY18 FY22 FY18 FY22 Volume Normalised EBITDA Normalised EBIT ROFE 47.9 66.9 14.6 167 150 $m % Tonne
Slide 11: Shareholder Returns
Shareholder Returns 5 year transition complete, now focused on growth and continuing to generate Steel & Tube delivers a high dividend yield sustainable double-digit ROFE: • Quality business with strong foundations embedded FY22 Dividend: 13.0 cps Represents a dividend yield of 11.4%* • Leading supp
Slide 12: Building a sustainable business
Building a sustainable business Our long term aim is to operate our business in a way that is financially rewarding for our shareholders and Maximising steel’s positive for our people, our customers contribution to a Supporting our and our planet. sustainable and people and low emission customers St
Slide 13: ESG Scorecard
ESG Scorecard Positive progress being made on all key metrics Employee Safety Measure Customer satisfaction TRIFR 1.13 – substantially than industry standards* NPS of 40 for FY22 6 4.9 50 40 40 34 4 NPS SCORE 24 TRIFR 30 1.86 20 2 1.13 10 0 0 FY20 FY21 FY22 FY20 FY21 FY22 Employee Engagement Carbon
Slide 14: Moving Forward
Moving Forward 14
Slide 15: Our purpose
15 Our purpose To make life easier for our customers needing steel solutions • Providing a one-stop-shop for the most essential steel products – from foundation to roof and everywhere in between • Doing everything we can to make it easy for our customers to do business with us • Always looking for w
Slide 16: Strategic focus
Strategic focus Growth focused on strengthening the core and building higher value products, services and sectors to drive gross margin improvement – benefits expected from FY24 onwards Grow High Value Products, Continue to Strengthen the Core Services and Sectors • Continue to build best-in-class c
Slide 17: Expanded plate processing capability and offer
Expanded plate processing capability and offer • Attractive value-added products • Growing market sector • Replacement of obsolete equipment with large, high capacity machinery • Market leading – digitally enabled, automated cutting, optimises remnants • Operational from June 2022, solid forward wor
Slide 18: Kiwi Pipe and Fittings
Kiwi Pipe and Fittings • Symbolic of strategy to selectively invest in high value products and segments • Niche strength – fire and water reticulation products • Builds on Steel & Tube’s existing offer • Provides scale, market share growth and immediately earnings accretive 18 32
Slide 19: FY23 Outlook
FY23 Outlook Robust operating model, well positioned to deliver through the economic cycle Trading conditions: Business Outlook: • Continuing volatility in global and local • Clear focus on strengthening the core and economies expected investing in high value products, services and • Steel pricing e
Slide 20: Discussion
Discussion
Slide 21: Non-GAAP Financial
Non-GAAP Financial EBITDA EBIT Period ended 30 June Restated Restated $000s FY22 FY21 FY22 FY21 Reported 66,598 38,614 47,636 20,707 Holiday Pay provision release (854) - (854) - NZ IFRS 16 reversal of impairment (527) (1,546) (527) (1,546) Gain on sale of properties (1,215) (1,215) Software as a Se
Slide 22: Glossary of Terms
Glossary of Terms EBIT: Earnings / (Loss) before the deduction of interest and Normalised EBIT/EBITDA: This means EBIT and EBITDA tax. This is calculated as profit for the year before net excluding non-trading adjustments and unusual transactions interest costs and tax eTRIFR: Employee Total Recorda
Slide 23: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Limited about the future, by its nature, involves inherent risks and (“STU”). The information in this presentation is of a general nature uncertainties. Accordingly, nothing in this presentation is a promise only. It is not a complete