2018 Annual Meeting Presentation

ANNUAL
SHAREHOLDERS’
MEETING
25 October 2018

BOARD
Steve Reindler
Independent Director
Appointed Oct 2017
Anne Urlwin
Independent Director
Appointed June 2013
Susan Paterson
Independent Chair
Appointed Jan 2017
Rosemary Warnock
Independent Director,
Appointed Sept 2010
Christopher Ellis
Independent Director,
Appointed Oct 2017

Chair’s
Presentation
Susan Paterson

KEY REASONS FOR BOARD DECISIONS:
OPPORTUNISTIC TIMING: Following a period of historical underperformance; significant impact of October 2017 ERP system
change; $54m write down and impairments to reset the business and a $81m discounted capital raise to reset debt (paid for
~$80m in previously purchased acquisitions)
DEAL EXECUTION UNCLEAR WITH POTENTIAL RISK BEING CARRIED BY STU SHAREHOLDERS: No guarantee of Commerce
Commission (CC) approval; likely to be significant delays impacting value and time value of money; risk of CC declining and
FBU walking away whilst Steel & Tube (STU) shareholders suffered impacts
STU TURNAROUND UNDERWAY AND BENEFITS ONLY JUST STARTING TO BE REALISED: Pre GFC and before recent
acquisitions STU EBIT $40-60m EBIT p.a. Business on track towards $25m EBIT in FY19. Achieving $35-40m EBIT by FY21 is
realistic. These targets along with conservative assumptions value your shares at $1.95-$2.36 per share
•Your Board was very responsive to FBU’s non-binding offers, and absolutely focussed on the interests of
shareholders as a whole
•We viewed $1.90 per share as below fair value but close enough to engage an independent expert
•FBU chose not to await the independent expert valuation report
FLETCHER BUILDING (FBU) OFFER

IMPACT OF HISTORICAL ISSUES GREATER THAN EXPECTED
▪Significant difficulties with
ERP implementation
impacting trading
▪Scale of legacy issues clean-
up was significant
▪$24m inventory write-
downs
▪Plastics business future
prospects bleak
▪Goodwill impairment
impacted by poor
performance of heritage
businesses
▪Capital structure weakened
necessitating capital raise
0
5
10
15
20
25
30
35
40
45
50
FY14FY15FY16FY17FY18
$Millions
CAPITAL INVESTMENT
Plant & EquipmentSoftware
Land & BuildingAcquisitions
$MillionsFY17FY18
Inventories143.1116.0
Debtors93.599.2
Trade and other Creditors(54.4)(49.9)
Working Capital 182.2165.4
Cash and cash equivalents6.55.6
Property, plant and equipment102.652.7
Intangibles66.857.4
Other0.214.6
Total Assets412.7345.5
Borrowings133.4109.9
Other12.913.1
Total Liabilities200.6172.9
Shareholders Equity212.1172.6
Net Debt: Net Debt + Equity37.4%37.7%
Net Debt: EBITDA
(1)
3.34.6
1)FY18 Normalised EBITDA is adjusted for a full year’s impact of the additional operating leases in relation to the sale of Stonedon Drive and
Blenheim Road

$1.00
$2.00
$3.00
$4.00
$5.00
Mar-05Sep-06Mar-08Sep-09Mar-11Sep-12Mar-14Sep-15Mar-17Sep-18
Price per Share ($)
REBUILDING SHAREHOLDER VALUE IS TOP OF MIND
Long term share price performance: March 2005 to YTD
Implied share price
post capital raise
Actual Share price
Significant financial restructuring required over the last 12 months to reset the business:
•Sophisticated investors recognised historical issues with increasing debt, inventories
and core business deterioration –little share price growth since GFC
•Inherited ERP system decisions and challenging implementation impacted on business
•Indepthcompany wide review leading to major write-down, earnings downgrade and
suspension of dividend. High debt levels from prior M&A
•Discounted capital raise undertaken
•Turnaround strategy well underway and is delivering improved earnings

▪Susan Paterson and Mark
Malpass appointed to the
Board
▪New Dunedin facility
opened
▪CC charges filed in relation
to historical issues
Late-2017: Embarked on an extensive company-wide reset to drive long-term sustainable earnings improvement
RE-SETTNG OUR BUSINESS
2H17: January to June1H18: July to December2H18: January to June1H19: July onwards
▪Deployment of new ERP system
▪Mark Malpass appointed interim
CEO. Greg Smith appointed CFO
▪Board refresh continues with
appointment of Chris Ellis and Steve
Reindler
▪Business formally aligned into two
divisions –Distribution and
Infrastructure
▪New Christchurch coil processing
facility opened
▪Extensive company wide review
▪Mark Malpass appointed CEO
▪New purpose built distribution
centre opened in Christchurch
▪Company wide stock take
▪Completed review of legacy issues
▪Announced FY18 guidance
▪Established Striving for Excellence
strategy
▪Commenced Project Strive
▪Sale and lease back of buildings
▪Focus on reduction of borrowings
▪Announced FY18 results
▪Successful completion of
$80.9m capital raising
▪Continued year on year
sales improvements
▪On track towards FY19 EBIT
target
JOURNEY TO REFRESHED BOARD, STRATEGY AND LEADERSHIP
EXTENSIVEORGANISATIONAL REVIEW
CHANGE PROGRAMME AND OPERATIONAL RESET
STRENGTHENED
FOUNDATION

STEEL & TUBE IS...
▪One of NewZealand’s leading providers of steel solutions,
and a proud NewZealand company, with over 65 years of
trading history
▪We offer NewZealand’s most comprehensive range of
steelproducts, services and solutions
▪Our stable of best-in-class businesses are some of this
country’s leadingsteel suppliers

A STRONGER FUTURE
▪Positive economic growth trends across majority of sectors in
which S&T operates
▪Strong foundation from which to build our company
▪Financial flexibility to undertake business transformation
initiatives and achieve our goals
▪Pleasing progress being seen with early benefits from Project
Strive initiatives and improving sales results
▪On track to achieve FY19 guidance of $25 million in earnings
before interest and tax
▪Strong New Zealand company, adding value to NZ economy

Management
Presentation
Mark Malpass

▪Revenues impacted by issues with ERP system
implementation affecting customer service
▪$53.8m of non-trading impacts from legacy issues
recognised in FY18 following detailed review
▪Normalised EBIT slightly ahead of earnings
guidance of $16.0m
▪No FY18 final dividend –plan to resume FY19
interim in line with Dividend Policy
▪Change programme underway and benefits are
being recognised
FY18FY17
Revenue$495.8m$511.4m
EBIT$(36.2)m$31.6m
Normalised EBIT$16.5m$31.2m
NPAT$(32.0)m$20.0m
Normalised NPAT$7.8m$19.7m
Final Dividend-7 cps
FY18 FINANCIAL SUMMARY
1) Earnings Before Interest and Tax (EBIT). FY18 normalised earnings is EBIT excluding non-trading adjustments of $53.8m and a $1.1m timing benefit from reduced software
amortisation costs due to the ERP implementation delay.

OUR BUSINESS: DIVISIONS
DISTRIBUTION
Products are sourced from preferred steel mills and distributed through
Steel & Tube’s national network of branches
FY18: ~58% of revenue
INFRASTRUCTURE
Products are processed before sale and typically on a contract or project basis,
including onsite installation services
FY18: ~42% of revenue
STEEL
STAINLESS STEEL
PIPING SYSTEMS
CHAIN & RIGGING
RURAL PRODUCTS
FASTENINGS
CFDL
ROOFING
COIL PROCESSING
PURLINS
COMFLOR®
Composite Floor Decks Ltd.
REINFORCING
Roll
-
forming
REO / CFDL

INDUSTRY LANDSCAPE AND MARKET SHARES (1)
Long ProductsFlat & Roll-formedProductsSpecialisedPre-Fab
REBAR
MESH
WIRE
STRUCTURAL
MERCHANT
HOLLOWS
PLATE
SHEET & COIL
ROLLFORMING
STAINLESS
ENGINEERING STEEL
FASTENINGS
CHAIN &RIGGING
PREFAB & OTHER
DIRECT TO MARKET
1) Market share for S&T and other suppliers based on best estimates of Steel & Tube Management from available industry data as at 30 September 2018. These are approximate only and provided in good faith

Sales data, based on June 2018 YTD figures
Construction
▪Exposure to infrastructure,
commercial (non-residential) and
residential construction
▪A highly competitive market
experiencing high demand
▪Construction expected to drive
reinforcing, piping, roll-forming and
structural steel revenue
Manufacturing
▪The manufacturing sector expected
to remain stable with significant
opportunities in the food subsector
▪Demand expected to drive growth in
plates, coils, sections and fasteners
Rural sector
▪Driving demand for stainless steels
SECTOR EXPOSURE
Well balanced across construction, manufacturing and rural sectors

OUR OPPORTUNITY
Growth in customer sectors is driving demand
•Multi-unit dwellings are an increasing share in the residential
sector
•Increased central and local government funded
infrastructure, housing and development projects
Steel is a preferred building material
•Increased intensity of steel in buildings
•Construction speed and efficiency
•More cost effective through its life
•Proven performance in seismic events

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
offering
▪Industry leading businesses
▪Innovative approach to business and customer solution
▪Leveraging of technology
Our goal is to be the leader in buying, selling, processing
and placing steel products in New Zealand

OUR STRATEGY FOR PROFITABLE GROWTH

Our Strategy
in Action
“Striving for Excellence”

COMMITMENT TO
SAFETY AND
QUALITY
▪Safe and healthy work environment
▪Quality processes and products
▪Continual improvement
HEALTH & SAFETY, QUALITY FOCUS
▪Board Quality, Health, Safety and Environment
Committee and Management sub-committees
▪Comprehensive reporting covering risk
management, lead and lag indicator
performance, and incident and non-
conformance reviews
CONTINUING IMPROVEMENT IN SAFETY INIDCATORS
FY18 lag indicator improvements continue into FY19
▪Strong employee engagement
▪Worksafebased programmeon the power of speaking up
▪Robust return to work programmefollowing end of year
break

FOCUS ON QUALITY
KEY QUALITY INITIATIVES IN FY19
▪Dedicated QHS&E team
▪Group-wide update to ISO 9001:2015
▪Third party audits of steel mills
▪Traceability enhancements including
barcode scanning

KEY INITIATIVES IN FY19
▪Sales account alignment, management
and sales excellence programme
▪Improvement in delivery performance
▪Investment into product innovation
▪Customer loyalty and value growth
▪Call centre activation
▪Ecommerce and digital platforms
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

POSITIVE IMPACT OF INTIATIVES NOW BEING SEEN
Positive results now being seen from the implementation of the change programme with increases in both
average daily volumes and average daily sales, and improving market share in key categories

INNOVATION IS IMPORTANT TO SUCCESS
BIM SPEC
▪One stop portal for Building Information Models (BIM)
and 2D and 3D content across the Steel & Tube product
range
▪Easy to use digital platform for design professionals to
access our technical content
COMFLOR SR
▪Flat soffit designed and tested to the highest standard
▪Ideal for multi-storey residential sector with a thinner slab
depth, enhanced fire resistance and improved acoustic
performance
▪Seamless integration with ComFlor60 and ComFlor80
profile

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 IN FY19
▪Supply chain improvements
▪New inventory recording procedures
▪Operational excellence and efficiency
▪Freight efficiencies
▪Facility footprint consolidation
▪Leverage procurement scale

SUPPLY CHAIN EXCELLENCE
▪Inventory segmentation: Resulting in
improvements in A-line stock availability from
83% to 93%; targeting 98%
▪Dedicated sales and operations planning team
▪Sales and operations planning (S&OP) system:
Better matching customer demand with supply.
Implemented Q1 FY19
▪Inventory and procurement optimisation:
Strategic sourcing to leverage procurement scale
and reduce sourcing costs

OPTIMISING OUR FOOTPRINT
•Integration of previously acquired
businesses delivering synergy benefits
•Heritage Steel & Tube Stainless combined
with the acquired Stainless business
•Acquired and existing Fasteners businesses
also combined
•Consolidation of facilities from 50 to 40
locations; further integrations ongoing,
delivering efficiencies while retaining focus
on customer service and product range
•Rollout of ‘hub and spoke’ reinforcing steel
model
•Integration of external warehousing into
Steel & Tube’s own facilities
•Optimisation and reduction of freight costs
and tender routes
•Sale and lease back of two buildings
Significant rationalisation in Steel & Tube site
numbers while retaining regional footprints -from
50 to 40 sites with more to come
Whangarei 2
Auckland 8
Waikato/BOP 5
Hawkes Bay 4
Palmerston Nth 2
Wellington 4
New Plymouth 1
Nelson 1
Blenheim 1
Christchurch 8
Dunedin 1
Timaru 1
Invercargill 2
•Removes duplication
•Improves customer
interface
•Supports cross selling
•Better leverages the
breadth of our services

MANUFACTURING EXCELLENCE
•Implementing a Lean 5s programme
across the manufacturing businesses
-Reinforcing and Roll-forming
•Involves Key Performance Targets
and systems tracking of machine
efficiency and productivity
•Already delivering significant
improvements in uptime efficiency
•Also leveraging technology through
capacity planning and scheduling
Initiatives leading to significant reduction in wage costs

SUPPORTING A WINNING
TEAM
▪Develop leaders
▪Everyone matters
▪Recognisepersonal and team contributions
▪Provide a rewarding workplace
KEY STRATEGIES IN FY19
▪Employee engagement
▪Leadership development
▪Sales training
▪Annual Excellence Awards
▪Continue to support First
Foundation

ANNUAL STAFF SURVEY RESULTS
▪High participation by staff across company divisions
and locations
▪76% willing to go the extra mile to contribute to the
company’s success
▪Company Strengths: people, teamwork, employee
knowledge and loyalty
▪Strong recognition Health and Safety is a top company
priority
▪Staff workshops across the company to establish
company-wide initiatives
76% of staff willing to
go the extra mile to
contribute to Steel &
Tube’s success
High levels of staff engagement

Mark Malpass
CEO
STRONG MANAGEMENT TEAM
Greg Smith
CFO
Marc Hainen
GM Distribution
Steve Kubala
GM Roll Forming
Damian Miller
Quality, HS&E
Manager
Dave Clegg
GM People & Culture
Miki Cooke
National Supply Chain
Manager
Andrew Roche
Reinforcing Manager
OPERATIONAL MANAGEMENT
BUSINESSMANAGEMENT
Mohammed Afroz
CFDL Manager

Trading
Update and
Outlook

Global Steel Market Trend
▪Global crude steel production increased by 2.6%
to 1.748b tonnes over the last year
▪China’s increased output of 2.7% over the year
which was mainly consumed domestically
▪East Asian steel prices continued the upward
trend but flattened out in the second half of the
year, although softening New Zealand dollar
putting pressure on domestic prices
Year to Date:
▪Demand for steel continues to grow in line with
global growth forecasts
▪Steel prices on a rising trend
▪NZD:USD weakened in past year
OPERATING ENVIRONMENT
1)Source: World Steel Association, August 2018
2)Source: S&P Global Platts, September2018 withUSD/NZD conversion

▪Legacy issues behind us and major financial
restructuring completed
▪Beginning journey to significantly improved
operating and financial performance
▪Recent increases in volumes are encouraging
as ERP stabilised and focus has shifted to
servicing customers
▪Structural changes through Strive programme
gaining momentum
▪Operating cost reductions forecast to realign
with sales
▪Safety and quality disciplines underpinning
supply chain and operational excellence
FY19 GUIDANCE
No change in guidance, FY19 earnings before interest and tax of $25m

HALF YEAR OUTLOOK
▪Majority of earnings
improvements driven by the
Strive programme
▪Benefit of improvement
actions expected to flow
through subsequent years
▪1Q on track with budget to
achieve FY19 guidance
▪Strive programme driving
earnings YTD
$8.2 million
contribution from
Strive initiatives and
ERP recovery
Half year earnings
budget ~40% of FY
FY19 EBIT target of
$25m

Shareholder
Discussion

Resolutions

RESOLUTIONS
RESOLUTION 1: That the Directors be authorised to fix the fees and expenses of PricewaterhouseCoopers as
the Company’s auditor.
RESOLUTION 2: That Susan Paterson, who retires by rotation and is eligible for re-election, be re-elected as
a Director of the Company.
RESOLUTION 3: That Anne Urlwin, who retires by rotation and is eligible for re-election, be re-elected as a
Director of the Company.

Other Business
Close of Meeting

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 an invitationorsolicitation for such offers.
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investor may require. Any person who is considering an investment in STU securities should obtain independent professional advice prior to making an
investment decision, and should make any investment decision having regard to that person’s own objectives, financial situation,circumstances and needs.
Past performance information contained in this presentation should not be relied upon (and is not) an indication of future performance.This presentation may
also contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy of STU. Information
about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this presentation is a promise or representation as to the future or
a promise or representation that an transaction or outcome referred to in this presentation will proceed or occur on the basis described in this presentation.
Statements or assumptions in this presentation as to future matters may prove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitutefor, the information provided in
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