Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — Investor Presentation (May 2023)
19 slides from Steel & Tube's investor presentation, May 10, 2023
Slide 1: NZX Investor Presentation
NZX Investor Presentation 10 May 2023
Slide 2: Agenda
Agenda • About Steel & Tube • Growth Strategy • Guidance and Outlook • Investing in STU • Discussion 2
Slide 3: About Us: Steel & Tube
About Us Steel & Tube Our purpose is to make life easier for customers needing steel solutions • One of New Zealand’s leading providers of steel solutions • A proud New Zealand company, celebrating our 70th year of trading • We offer New Zealand’s most comprehensive range of steel products, services
Slide 4: Our business divisions
About Us 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 R
Slide 5: Extensive range of products and solutions
About Us Extensive range of products and solutions Stainless steel Engineering distribution Reinforcing processing processing Fasteners Primary product and service Roofing offering by participants Plate Steel Wire steel steel Coil Steel & Tube 5 5 5 5 5 5 5 5 5 Fletcher Steel j 5 5 5 5
Slide 6: Building a long term sustainable business
About Us Building a long term sustainable business Steel sustainability Steel offers a number of advantages in a future where climate change and extreme weather events are likely to become more common • Steel is a lightweight but strong product that Delivering value Supporting our provides durabilit
Slide 7: Strategic Goals
Growth Strategy Strategic Goals Clear growth strategy in place 1. Customer 2. Growth 3. Shareholder 4. Sustainability To be the preferred Increase value Deliver increasing Financially rewarding supplier for steel through organic value and returns for our shareholders solutions and growth and for our
Slide 8: Strategic pathways: strengthen the core and invest in growth
Growth Strategy Strategic pathways: Building on strong foundations to strengthen the core and investing in high value products, services and sectors for growth Strategic Initiative Early Hitting Full stage its stride benefit Continue to build best-in-class customer experience and accelerate shift to
Slide 9: Recent growth initiatives: Reporting back
Growth Strategy Recent growth initiatives: Reporting back ORGANIC GROWTH PROGRAMMATIC M&A Plate Processing Aluminum Kiwi Pipe & Fittings Fasteners NZ • New high specification Plate • Selected range of high • Integration in line with • Continued growth in customers Processing & Press Brake demand, hi
Slide 10: Financial and ESG outcomes demonstrate value of strategy
Growth Strategy Strong and resilient financial Financial and ESG outcomes performance and shareholder value demonstrate value of strategy FY22 1H23 Employee Safety Measure1 Customer Satisfaction2 Industry Average: 32 Revenue $599.1m $315.3m 6 4.9 50 40 40 40 34 Normalised $66.9m $31.6m 4 NPS SCORE T
Slide 11: Well positioned to support Cyclone/floods rebuild
Outlook Well positioned to support Cyclone/floods rebuild Steel is an essential construction material; Steel & Tube has the capability and capacity, as well as the expertise to deliver innovative solutions to assist with rebuilding vital assets Preliminary estimates put cost at between Infrastructur
Slide 12: Demand for steel continues despite challenging economic conditions
Outlook Demand for steel continues despite challenging economic conditions Positive long term macro trends will drive momentum Residential Consents Performance of Manufacturing Index (PMI) Long term demand and undersupply Headwinds affecting activity, long term remains positive Share of Sales (1H23)
Slide 13: Outlook
Outlook Outlook Steel & Tube is well positioned to respond to the more challenging economic cycle and to take advantage of new market and product opportunities, and the rebuilding programme • Significant medium to long term opportunities expected from rebuild activity, climate change, seismic streng
Slide 14: FY23 Guidance
Guidance FY23 Guidance Normalised EBIT of between $28m and $32m and normalised EBITDA of between $48m and $52m1. $millions FY23 FY22 FY21 • Tightening economic conditions and 10 months 10 months 10 months weather events in past 10 months • Strong revenues driven by elevated Revenue 489.0 479.3 384.6
Slide 15: Five good reasons to invest in Steel & Tube
Investing in STU Five good reasons to invest in Steel & Tube Steel & Tube is nimble and able to take advantage of new Quality business with strong core market and product opportunities • Unmatched breadth of high-quality product and solutions 1. Attractive shareholder returns and value • National ne
Slide 16: Discussion
Discussion
Slide 17: Non-GAAP Financial
Non-GAAP Financial EBITDA EBIT $000s 1H23 FY22 1H23 FY22 Reported 30,482 66,598 20,344 47,636 Loss on de-recognition of finance lease receivable 181 - 181 - IFRS 16 impairment reversal (113) (527) (113) (527) Release of holiday pay provision - (854) - (854) Software as a Service (SaaS) upfront expen
Slide 18: 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 year before net satisfaction and loyalty interest costs and tax Normalised EBIT/EBITDA: This means EBIT and EBITDA EBITDA:
Slide 19: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Holdings about the future, by its nature, involves inherent risks and Limited (“STU”). The information in this presentation is of a general uncertainties. Accordingly, nothing in this presentation is a promise nature only. It is not a
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