Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — FY2013 Earnings Presentation
38 slides from Sims's earnings presentation, Aug 26, 2013
Slide 1: Full Year Financial Results 30 June 2013
Exhibit 99.2 Financial Full Geoffrey Rob 23 August year Larry,ended N. Results 2013 Group Brunsdon, 30Chief JuneChairman 2013 Financial Officer
Slide 2: Cautionary Disclaimer
Cautionary Disclaimer This These may the Because 2013. are their looking All 2 cautioned United subsequent references cause presentation entirety forward-looking statements these actual States Statements by not to forward-looking written the currencies, results Securities to may are to cautionary pl
Slide 3: Financial Overview
Financial -25% -45% Underlying Statutory -$466m Sales 12.8Mt 1. 3 Underlying Tonnes Revenue -47% -35% -12% -25% NPAT Overview EBITDA1 EBIT1 NPAT1 Full nil -228.1c excludes Cash Statutory year Gearing Underlying from -25% Net dividend goodwill EPS operations Debt (ND/ND+E) EPS1 $191m and $7,193m othe
Slide 4: Key Underlying EBITDA Drivers
Key Underlying A$m North 253 -12 lifted controllable 191 falling Australasia Europe 1. 4 Underlying 29 -74 Earnings by America average EBITDA -5 higher EBITDA EBITDA1 costs, Drivers excludes scrap EBITDA sales dropped offset metal margins fell of goodwill by increased by $191m, $74m, prices lower $1
Slide 5: Operational Progress
Operational A$m 150 Underlying 2H 110 non-ferrous North 50 Divestitures 4 2 6FY13, 18 A$/t America Arizona, S 0 -10 1 EBITDA 1. 5 1inEBIT scrap Gains of spite non-core underlying Metals 1Colorado, Development outhwest -2 1H10 metals Underlying EBIT2H10 of margins prices of Newin declining North and
Slide 6: Reductions in Controllable Costs and Headcount
Reductions $60m Headcount Cost Reducing -48 -39 A$m 13 Metals Significant Controllable Costs 1. 6 Underlying 2-10 1,250 savings FY13 inMetalsSRS -1net controllable 146 1,187 reduced items Across underlying (Statutory) expected excludes 1,148 Metals America Controllable by costs to 279 1,104 goodwill
Slide 7: Key Improvement Drivers
Key Improvement 140 160 13% 120 80 100 shipments 60 US 40 (m 20 18 16 14 12 10 8 6 3. 7 US 6% 24 22 20 18 16 units) Consumer Light US Scrap US7% household 26 14 consumer light 12 1. Source: (US$ Vehicle up Generation 7% in vehicle Confidence1 bn) key over appliance Sales2 confidence Conference US sc
Slide 8: Operational Overview: Volumes and Sales
Operational (mt) 20 15 11.080 Volumes 1.772 Sales 140 $ 60 (A 1 8 62 EBIT12.786 56 37 North Lower 124 FY12 68 020 Increased1.764 9.377 Controllable 1. m) 10 UnderlyingFY13 100 Overview 51.651 America brokerage -19 sales cost -2075 14.503 1.645 excludes Australasia margins -2 Lower reductions UK Meta
Slide 9: North America
North A$m Revenue Prudent Sales Earnings 200 cost 140 160 120 103 29 80 60 -127 40 20 0 FY12 1. 2. 9 2Other Underlying Development 104 75 Continued A$m Strategic Divestitures savings, Texas FY2013 volumes America Sales selective includes, 4,534.6 assisted &Volumes including Progress Oklahoma focus F
Slide 10: Australasia
A$m Australasia EBIT1 Sales Controllable 120 expanding 1 2 80 A$m FY2013 margins volumes Non-core 40 88 100 20 61.7 -1 Strategic business Regional underlying 74.6 Acquisition -20 NSW, FY12 1. 2. 10 and cost FY2012 on down of(17.2) asavings Australasian Underlying Other Sales per activity Progress 1%
Slide 11: Europe
Europe A$m Revenue Sales Underlying Strategic 100 New 10% 80 UK 60 40 13 restructuring 20 8 11 0 to -20 FY12 1. 2. 1084 SRS: 2Metals: A$m headcount management FY2013 margin volumes small Regional implementation 1,575.3 Progress Underlying Other show Sales controllable yards two in decline FY2012 ben
Slide 12: Product EBITA
Product EBITA1 2 Non-Ferrous SRS (22.4) Underlying Strategic Sales Divestitures New looking 1. 2. 12 Ferrous Underlying Includes EBITA President Volumes (26.8) at Category (A$m) Progress EBITA Total all EBIT of fell (16.4) EBITA excludes Ferrous (Mt) of Nashville FY2013 12.786 74% declined Global 67
Slide 13: Financial Review
Financial Rob Larry,Review Group CFO
Slide 14: Financial Overview
Financial FY Restated EBIT NPAT Underlying Capital Net Sales Full *Underlying 14 2013 Debt Debt/(Net Fiscal Tonnes Revenue ($m) ($m) Expenditures FY ($m) Overview Year (469.4) EBITDA EBIT NPAT (466.1) 2012 EBITDA, (‘000) Debt 153.8 ($m) Dividend ($m)* ($m)* Change (623.3) (622.5) +12,786 7,193.0 292
Slide 15: Group Balance Sheet
Group Restated Current Borrowings Other Total Net 15 Debt Liabilities Non-current Balance Assets As / (Net 189.1 of 30 $1,159.4 Sheet Debt 988.0 June 329.9 Liabilities +Equity) 1,225.3 As $1,429.1 (140.8) of 30 127.5 (237.3) (%) June (42.7) (269.7) 7.4% 161.2 $m (19.4) 11.3% 2013 (18.9) (33.7) Net 2
Slide 16: Group Cash Flow
Group5.0 Restated (Loss) Depreciation controlled Other Change Payments PP&E Proceeds $223.8 16 4.8 /Cash Net in Profit $m from (0.2) for on 6.6 entities operating cash Flow FY acquisitions and PP&E (1.8) for sale 5.2 2013 inflows amortisation the and of Proceeds ($149.0) assets year jointly FY asset
Slide 17: Significant Items
Significant Group $m -Non-cash Impairment equity 21.3 Lease related ——3.4 Yard Commercial 1.3 Total 174.30.3 FY ——21.3 —Closure Significant Settlements accounted After-Tax to — 2013 4.3 3.4 Goodwill 1.6 Items 2.7 in of 2.1 Settlements—(1.5) /1.5 investment Loan 21.3 Dilapidations recoveries former A
Slide 18: Strategy and Outlook
Strategy and Geoffrey N. Brunsdon, Outlook Chairman
Slide 19: Progress and Focus
Progress 1) Focus over Divestitures Expanding Idling Cost 3) Appointment improving Initial recycling, Continued 19 Targeted E-Recycling FY12 savings reductions business low on Towards costs non-ferrous, throughput US focus New Cost of from ofeconomy savings lower review Platform will new England on
Slide 20: Cost Savings and Headcount
7,000Savings 6,500 6,250 5,750 6,000 FY13 6,320 reductions 5,250 Roughly Employees America controllable employee Cost intake Continued Employee Managing 20 North Australasia Actions: Europe Outlook: 21 savings Headcount 149 -224 6,599 America with volumes Acquisition Divestitures Idled 70% New Net b
Slide 21: Rapidly Repositioning SRS
Rapidly Headcount 13% Cost UK 300 Global New Skurnac, SRS Management Continued North 22 Metals Revenue repositioning net reductions management President America SRS Restructuring headcount appointed focus Reductions 800 SRS believes by of Australasia focus UK on Region Global team toreductions 1cost
Slide 22: Outlook
CEO Outlook The FY14 East Non-ferrous At Capital 23 present Board Coast Appointment Trading expenditure trading continues expects export prices Update ferrous liquidity to have expected to announce &evaluate experienced Outlook scrap remains to markets an be candidates appointment circa firm someimp
Slide 23: Appendix: Reporting segment information
Reporting segment information Appendix
Slide 24: Sales Revenue by Region
Sales FY 15.1% 21.9% 19.7% $m 66.7% 63.0% Australasia Europe PCP. Total 25 2013 FY$7,193.0 Revenue Australasia 13.6% 2013 1,575.3 FY1,083.1 2012 FY$9,035.7 by 1,780.6 2012 Region North 1,228.1 Change (11.5) (20.4) America (11.8) (%) to • FY2013 PCP which sales was revenue mostlywas related mostly to
Slide 25: Sales Revenue by Product
Sales FY 13.5% 1.2% 0.8% 48.1% 18.8% 18.3% Recycling 14.5% $m 3.6% 4.3% Ferrous Non 26 2013 FY Ferrous Revenue Manufacturing/Other 2013 Trading Brokerage Solutions Trading Trading/Brokerage FY Shred by$3,462.6 FY 2012 Product 48.3% 1,042.1 11.2% Recovery 2012 Change $4,359.9 Recovery 1,572.0 17.4% 3
Slide 26: EBITA by Region
$125 $75 $25 19.7 (2.6) (5.7) (’s Restated -$175 (145.0) -$125 (2) 2. EBITA follows: Unallocated Goodwill EBIT 27$-$75 EBITA 19.7 (22.4) 4.1 FY 106.4 (pre-goodwill (post-goodwill (pre-goodwill by 106.4 2013 1.& by Region EBITA intangible Group Region millions) (81.5) (1) by Corporate &was asset && (
Slide 27: EBITA by Product
$80 $60 57.8 44.4 13.7 FY (-$20 Ferrous -$80 -65.1 -$60 -28.7 Non Recycling EBITA EBIT ($165.0) Group 28 -$40 2013 72.4 52.2 Ferrous $40 14.6 $(pre-goodwill & ’sby (pre-goodwill Trading $52.3 millions) 42.1 Regional 19.6 Solutions Product Trading/Brokerage $20 (415.5) (incl. $0 $6.4 Corporate Corp &
Slide 28: Intake Volumes by Region
Intake FY 14.1% Australasia 12.9% 73.0% Restated Total 29 2013 Tonnes 12,453 Volumes 11.7% 75.8% FYNorth 2012 14,386 (‘000’s) 12.5% byAmerica Region (13.4) FY 2013 Europe FY 2012 Change (%) Australasia 1,758 1,790 (1.8) North America 9,087 10,908 (16.7) Europe 1,608 1,688 (4.7)
Slide 29: Intake Volumes by Product
Intake FY 4.5% 23.0% 35.5% Non 36.8% Restated Ferrous Other Total 30 2013 Ferrous Tonnes 12,453 0.2% Processed 31 Volumes Ferrous 25.1% 35.8% Shredded Brokerage Shred •FY 47Ferrous 3.9% (34.0) 2012 Trading/Brokerage 14,386 (‘000’s) (inc. by Ferrous 0.3% brokerage Product 34.9% NFSR) (13.4) FY(incl.
Slide 30: Sales Volumes by Region
Sales FY 12.9% Australasia 73.3% Total 31 2013 Tonnes 12,786 Volumes 13.8% 76.4% FYNorth 2012 14,503 (‘000’s) 11.4% by America Region (11.8) 12.2% FY 2013 Europe FY 2012 Change (%) Australasia 1,764 1,772 (0.5) North America 9,377 11,080 (15.4) Europe 1,645 1,651 (0.4)
Slide 31: Sales Volumes by Product
Sales FY 4.3% 22.2% 24.9% 37.9% Ferrous Non Other Total 32 2013 Ferrous Tonnes 12,786 0.3% Volumes Processed 37 35.3% 35.7% Shredded Shred Brokerage FY 484.0% (22.9) 2012 Trading/Brokerage 14,503 (‘000’s) Ferrous (inc. byFerrous 0.3% Product 2,840 NFSR) (11.8) FY Brokerage (incl. 4,847 3,597 2013 4,
Slide 32: Significant Items FY2013
Significant Group $m -Non-cash Impairment equity 21.3 Lease related ——3.4 Yard Commercial 1.3 Total 334.30.3 FY ——21.3 —Closure Significant Settlements accounted After-Tax to — 2013 4.3 3.4 Goodwill 1.6 Items 2.7 in of 2.1 Settlements—(1.5) /1.5 investment Loan 21.3 Dilapidations recoveries former A
Slide 33: Significant Items FY2012
Significant Group $m $3.6 Natural (2.0) UK Inventory Write-down 1.2 Redundancy of Loss/(Gain) (35.7) Total 34 a——1.2 FY Inventory Customer—4.4 $569.1 (0.7) Significant ——(35.7) After-Tax 2012 Disaster Adjustments —Items $102.9 1.2 on of Provisions Non-cash (2.7) Write-downs CTG Sale accounted expens
Slide 34: North America Results
North FY Depreciation EBITA EBIT Underlying Assets Employees Sales (1) 35 (2) 2013 Margin ($m) America ($m) ($m) Excludes FY(1) 3,618 EBITDA EBITA EBIT $1,660.0 Underlying2012 (1) ($m) (%) ($315.3) Regional ($2.6) Unallocated 3,693 ($m) 15.4% Change 48.1 ($m) EBITDA, ($m) $2,066.3 ($25.7) (2) 52.5 (
Slide 35: Australasia Results
Australasia FY Depreciation EBITA EBIT Underlying Assets Employees Sales (1) 36 (2) 2013 Margin ($m) ($m) ($m) Excludes FY(1) 984 Regional EBITDA EBITA EBIT $671.4 Underlying2012 (1) ($m) (%) $18.8 1,006 $19.7 Group ($m) 23.9% Change 25.1 ($m) EBITDA,$733.0 $102.0 Results ($m) (2.2) $106.4 (2) 24.1
Slide 36: Europe Results
Europe FY Restated Depreciation EBITA EBIT Underlying Assets Employees Sales (1) 37 Underlying 2013 Margin ($m) ($m) ($m) Regional FY($150.6) 1,718 EBITDA EBITA EBIT $585.4 2012 ($145.0) ($m) (%) EBITDA, Results 1,900 ($m) 14.2% Change 27.5 ($m) $709.7 ($100.7) ($m) $4.1 (1) 26.0 (9.6) (1) 17.9% EBI
Slide 37: Sales by Destination
Sales FY2013 12% 32% 1% 3% 25% 38 1% 2% SE 8% USA 26% byAsia Northeast FY2012 Destination Domestic / Canada / Oceania Asia 8% 32%3%11% South / Central America Europe Middle East 20% 13% China & HK
Slide 38: Sales by Destination
Sales by Destination D Pos FY2013 = Domestic BUSA / Canada = South / Central America mEurope » Middle East China & HK = Northeast Asia @SE Asia / Oceania 25% FY2012 8% 8% 3% 26% 38