Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — Investor Presentation (September 2012)
32 slides from Sims's investor presentation, Sep 10, 2012
Slide 1: Investor Presentation September 2012
Exhibit 99.6 Exhibit 99.6 Investor Presentation September 2012 Daniel W. Dienst Group Chief Executive Officer Robert C. Larry Group Chief Financial Officer Prepared for Today, Positioned for Tomorrow
Slide 2: Disclaimer
Disclaimer materially including uncertainties, date in statements aretheir references of this entirety the from are involve to This presentation. risk reflect actual to typically by these presentation Australian factors the certain results events forward-looking cautionary identified All described r
Slide 3: Agenda
Agenda Company Above Safety Our Drivers Macroeconomic Competitive Strategic North Challenges U.K. Australia Sims Global 3Financial Conclusion Outlook Vision Operating Metals Metal Recycling America Ground Growth ofPriorities Metals Overview Review Overview Growth and Management Advantages & Space SR
Slide 4: Company Overview
Company Sims We Ferrous Non-ferrous Industrial Specialty Waste Increasingly Domiciled As SimsMM 4World’s of specialise Metal 30 electronics metals largest June alloys had is and Overview inManagement publicly metals non-metallics, Australia in $9 obsolete 2012, listed the billion andfollowing the li
Slide 5: Our Vision and Mission
Simswill Through smelters SimsMM Our size. non-ferrous 5We vision global Metal increase strive continue and our has is footprint Management: trading foundries. extensive to nearly tobe achieve shareholder tothe platforms drive now 100 premier global years significantly includes improvements Ourand n
Slide 6: FY 2012 Results Overview
Overview FY Revenue Statutory Underlying Dividends Intake Shipment 2012 We Goodwill NOTE: 6Tonnes 2012 are proved Tonnes aggressively come Please FY ($m) NPAT EPS write-downs Tonnes of per EBITDA EBIT NPAT EPS 2011 Fiscal to first; (million share ($2.53) 9,042.3 see be ($m) $0.37 (million ($m) Chang
Slide 7: A Recognised Global Leader in Safety
A Recognised Safety There While Our in 7WeFY are have commitment 2008 is we remains tireless more come saw — hard Global some while ain a long critical to our work safety plateauing providing efforts Leader wayfocus tobut isbe to both on can, for done be ainSafety safer MTI aSimsMM. one and moral no
Slide 8: Above Ground Mining
AnSimsMM, At As Societies’ the SimsMM ‘developing, Over information 8We countries Above downstream are thepositioning anlast is demands above Ground well technology developed’ continue several wemelting ground positioned believe Mining to onyears manage to natural and emerging industry; mining devel
Slide 9: Our Operating Space: Recycled Material Supply Chain
Oursource SimsMM We The Growth 9Supply underlying Operating Chain inoccupies these the of recyclable Space economic factors Recycled the critical require products drivers Material space steel, ofinour atthe non- the success wealthy, ferrous centreremain of ‘wasteful’ metals a global growth andadvanc
Slide 10: Growth Drivers: Urbanisation and Steel Intensity
110 andData Drivers Steel NOTE: of GDP metal Growth: represents measured intensity Urbanisation projected atinexpected the emerging percentage real exchange economies growth rate. is instill urban SOURCE: many areas years McKinsey during away thefrom Global 2010-2025 peaking Institute period. andCit
Slide 11: Growth Drivers: GDP and Population
Drivers Medium This Gross Global Output Source: 11 represents Domestic Population output isof IMF UN case set Growth World to World projections growth an bottom Product across Scenarios Population Economic will outthe show continue inboard 2012 Prospects Outlook an increase and requirement to be Apr
Slide 12: Macro Factors Linger: Consumer Confidence
United Australia Macro Post-consumer An This Consumer Source: 12 anxious reticence Factors Implications States Kingdom Trading confidence behaviour consumer isStill generation Economics creating Linger: also buys, remains adrives of dam Consumer and metal subdued of therefore business pent-up andCon
Slide 13: Macro Factors Linger: Industrial Production
Industrial Macro Global The IP Lower Source: 13 has most rebounded IP Factors Implications PMI International results recent Production is aStill useful data inwell less Linger: suggests Monetary in forward-looking high thePMI U.S. quality that Fund and and manufacturing industrial Industrial WEO Aus
Slide 14: Map of Our Global Network of Metal Recycling
Mapnetwork Our 14 of MetalofRecycling collectionSupply and processing Chain yards ensures that we are positioned with market access to the most prominent and fastest growing global demand markets.
Slide 15: E-Recycling Footprint
E-Recycling Our Canadian The environmental Australia Countries/States/Provinces 15 European U.S. Simshas and provinces Recycling Footprint adopted India e-recycling stewardship are have Solutions a phasing more fairly markets with without andpiecemeal (SRS) developed in data legislation collection a
Slide 16: SimsMM Competitive Advantages
SimsMM1.Competitive People Advantages Our commitment 2. Diversity to recruiting, of Business training and employee engagement ensures that we have the best and most diverse workforce in the industry. SimsMM3. Separate divisions is the world’s Financial for stainless largest Strength listed steel,and
Slide 17: FY 2013 Strategic Priorities
FY 2013 Optimise Targeted Widen Continue Expand Build Advance Nurture, Retain 17 on an gross our invest, Group-wide the our Strategic SimsMM current the unwavering position momentum margins. first development attract portfolio mover Priorities positioning incost commitment and the advantage ofreduct
Slide 18: SimsMM's Challenges
SimsMM’s Challenges generating market The We marginal In climate 18 the FY believe scrap aftermath 2013, position improves. capacity metal markets that global we the will while of supply is expansion the were resulting being improve delivering GFC, surge ripe culled. the weakness strategy earnings f
Slide 19: U.S. Shredded Scrap Industry
U.S. Shredded Company In increase 19 theScrap absence gross steel research Industry: margins. of production more indicates Weak normalised has Generation that steadily anscrap additional & increased flows, Overcapacity 3-4 SimsMM over million the past must tonnes eight continue of years, material to
Slide 20: North America Metals
North H2 We Implemented Realigned Created Established With flexibility FY Aggressive Reductions Targeted Regional Installation Success 20 2012 2013 repositioned have the America smaller, on proper made capital marked initiatives expansion to leadership these of source in more ship strategies operati
Slide 21: Reengineering U.K. Metals
Reengineer Improving FY recovery Our Optimise Phasing Targeted Capitalise Non-ferrous Ensure Temporarily Organisational Improve More Improved 21 2012 twin feeder the in source reductions marked plant initiatives assets commercial on significant our right U.K. and yards. idle technology and competiti
Slide 22: Expand Australia Metals
Expand Our We Improve Install Establish Leverage Continue 22 will strategic advanced Australia build source facilities to ourstrategically focus ability oncontrol material our Metals to has to sustainable capture handle been, toevaluate recovery ensure and increasing electronic competitive that cont
Slide 23: Accelerate Sims Recycling Solutions Growth
Accelerate corporations Our Low Continued While markets We 23 have goal first strategic capitalised wethat mover been developed for expect development regional export Growth are SRS and foci successful status entry still municipalities. new of has include: for expansion abest-in-class developing. co
Slide 24: Global Growth Strategy: Go Scrap!
Global The multiyear In We Our 24 anhave January PRC global effort Growth targeted has period. 2012, approach non-ferrous/ferrous tobeen maintain Strategy: we and a executed large identifies are our Go working area standing tothe attractive of marketing thefocus first to Scrap! as execute leg the fo
Slide 25: Global Growth Strategy: CTG Investment
Global CTG Upon Through Additional We volumes The 25 believe CTG PRC Locations completion Growth of this will investment investment in obsolete investment the beStrategy: asustainability ofmajor this post-consumer provides will investment, we CTG force further will upside Investment in ofgain the th
Slide 26: Financial Positioning
Financial positioning Our Despite We In 26 the will financial dividend context the our continue Review ourselves challenging aggressive strength policy of the to be historical remains for isopportunistic growth operating aasource better 45%-55% volatility strategies operating of climate important wi
Slide 27: Financial Review: Consolidated Income Statement
Financial 2012 Sales PBIT EBITDA ROE** Net Shipped *Purchased ** 272012 2012 Debt 2011 ($m) ($m)* and 3.0% and Tonnes ($m) (Cash) Review: Tonnes 2010 9,042.3 2009 99.5 2009 6.6% 230.2 (mm) 2009 ($m) years 299.7 years (mm) Consolidated 8,852.9 3.9% 430.3 2008 292.2 14.503 reflect 205.7 reflect 14.355
Slide 28: Financial Review: Balance Sheet
Financial $m Current Non-current Other Total Net 28 FY Assets Debt/(Net Assets Liabilities Non-current 2012 Assets Liabilities Review: $ Assets 3,620.0 Borrowings 2,394.4 FYDebt $1,225.6 2011 1,484.2 Balance 734.2 Liabilities 2,135.8 +4,179.8 $Equity) Change 2,920.5 1,259.3 329.9 823.3 $ 1,766.5 She
Slide 29: Capex and Capital Management
Capex and On-market Capital Management Invested CAPEX Building 29 will and more through Share share continue Acquisitions remains than buy-back Buy-Back technology $1to committed billion bebyallocated commenced Region and in acquisitions, to strategic investing to in those FY in October investment 2
Slide 30: The Outlook
The Outlook We At to While recycling Our SimsMM’s Prepared 30 sustained the have last belief we same several taken for company expect inability success. time, Today, themany years increased FY we toin Positioned 2013 provide aggressive have have the world. to relevance executed, presented present en
Slide 31: Conclusion
TheFY Conclusion Throughout Returned Markedly Aggressively Significantly Invested Expanded Developed In 31 last 2013, several incapital improved Global and Australia this we enhanced repositioned executed will years period, toSRS shareholders. the build Metals have to our safety we aaon the global $
Slide 32: Questions?
D Piven Questions?
Sims Metal Management — Investor Presentation (September 2012) on 6ix