Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — Corporate Update (July 2014)
36 slides from Sims's corporate update, Jul 23, 2014
Slide 1: Sims Metal Management Strategic Review
Exhibit 99.2 Sims Metal Management Strategic Review Galdino Claro, Group CEO 23 July 2014
Slide 2: Disclaimer
Disclaimer financial “outlook,” actual discussed Company’s differ release. qualified forwardmaterially effects All -looking condition, inand “estimate,” Cautionary subsequent Annual their of identified our from entirety statements Report results plans those “forecast,” Statements written inby and of
Slide 3: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary
Slide 4: A clear five-year strategic plan
A clear five Strengthen strategic businesses supplier -year strategic relationships servicesplan • Further Grow with Optimise cost assetreductions management • Organic 1-2and years market • Exploit 3-4 share years local growth 5 years & global and4 feeder logistics yard•network Share operational exp
Slide 5: Ambitious and realistic earnings pathway
Ambitious200 Optimise Streamline & Supplier realistic ? Realign Operational earnings to core growth drivers Productpathway ofGrow profitability Target EBIT Growth Underlying Grow 150 Pathway ? Relationships Primary 5 year focus plan Excellence ontoorganic grow EBIT Quality growth over & 100 350% Log
Slide 6: Initial test region results encouraging
Andproduct businesses and Northinitial American outside results quality test have the Gulf region long-term been Region led encouraging totest revenueinterests 3x regionStreamline higher Initial Sub-Region results of theOptimise? in Company margins test region during Initial Sales? Hightripled resul
Slide 7: Experienced team aligned for delivery
Experienced SRS West Central team East aligned Global for delivery Trade Steve Galdino Shinn Claro Galdino Group Claro CEOJoe & Payesko ManagingBill Director Schmiedel North Darron America McGree NorthBob America Kelman North Steve America Skurnac Australasia (interim) Europe Implementation Global M
Slide 8: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary 8
Slide 9: Streamlining Metals regions
Streamlining Metals region other charges sitesCorporate facilitiesGlobal ?9Consolidating the Business ? CFO SRS 7 operating Streamlining relocation ? Europeregions :Exit from expected non-core to Chicago 3 (West, to deliver UK-basedloss to Central, Newannual Yorkandhead benefits making East)? office
Slide 10: North America Metals: Re-aligning capital to most profitable operations
North capital OK AR America toalignment most profitable Metals: to global Lower andtrading NY overhead MArelationships MIand sustainable increased MS cannot operations operational be achievedLA RIfocus CT CAWest PA TXRegion NV ? Sold OHCentral Utah NJ ? Divesting assets Regionin May East non-core Re
Slide 11: North America Metals: Regional strategies
Northmills shredders steel Break domestic requirements America thesteel ?industry’s ?6Well of shredders mills Metals: domestic placed and traditional Re-aligning ?build deep 4mills deep sea ?11 ?Reinforce water Maximise export to address docks docks feeder competitive ? unique 6? brown Longer yardsr
Slide 12: Electronics Recycling (SRS): Streamlined portfolio
Electronics portfolio No Exited significant loss of making Recycling businesses additional Canada (SRS): achieve restructuring SRS Footprint Other operations Europe strategic streamlined Low Germany charges Near-term to core higher anticipated profitable profitability margins after operations with H
Slide 13: Electronics Recycling (SRS): Portfolio streamlined into two business lines
Electronics business retired to United company Austria with Kingdom Recycling global IT assets footprint (SRS): Poland India ensure Portfolio Canada _ Czech the efficient Republic streamlined Singapore and andbest ethical intoinExited two class WEEE disposal primary operating inRecycling FY14 ofbusi
Slide 14: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary 14
Slide 15: Metals Recycling: Optimising the core drivers of profitability
Metals Optimise Excellence new markets Recycling: transport ? Focus 15 Optimising capabilities on talent development the Logistics core drivers ? ?Minimise Share of profitability best freight practices &Supplier handling ? Develop ?cost Buy value ?the Leverage right addedquality products exportfor c
Slide 16: Supplier Relationships: Buying the right quality for the right price
Supplier Test and deliver Region: Relationships: key Toprelationships 25 Suppliers Buyingwith July theprofitable right 2013 quality Mayfeedback 2014 for the High toright buyers High price EBIT/t suppliers Case$0/t Study: were EBIT/t Profitability expanded New reports Lowreporting Low analyse Higher
Slide 17: Logistics: Maximising docks and transport flexibility
Logistics: Jersey docks and transport domestic provide City costs Maximising facility market sales ? Increase supported flexibility flexibility transport supplier Yard Rail iscapabilities increasingly accessibility by Access network Well Case important, of appeal engineered 9Study: feeder ? Lower Ne
Slide 18: Logistics: Managing transport and acquisition costs
Logistics: costs acquisition cost tonnes management Case trucked Leveraging Study: of raw (RHS) 20 North material 40Internal new Trucked America reporting feedstock trucking 15 Metals, 30 tools 35?costs, 70 Improvements trucking to? lower North US$/tcosts freight America 18 beginning 50costs 100 Met
Slide 19: Operational Excellence: Driving continuous improvement
?Operational metals raises expected Kwinana margins recovery toisbe Excellence: the and operational technology final liftsstage competitive Driving during available of our continuous 2H shredder advantages FY15 ? Optimising 19 replacement improvement • Kwinana downstream program & will lifting be no
Slide 20: Operational Excellence: Talent development
Operational critical cadet/graduate for long-term Excellence: program success ?Focused The?current Talent on talent program development, development has 14 from participants and cadets retention toacross managers, Case Australasia Study: is ourAustralasia most 20 sustainable cadet / competitive grad
Slide 21: Product Quality & Service: Developing new value added products
Product years cultivate Steel Quality ourmaking relationships & Service: industry with Developing hadour evolved customers new requiring value to provide added new targeted the products products products Industry theyEach need specifications steel 21 mill hasneed specific to adapt ferrous to custome
Slide 22: Product Quality & Service: Taking the lead on product quality
Product Quality & Service: Taking the lead on product quality Ferrous Scrap Types Heavy Melt Steel (HMS) Shredded Plate & Structural Busheling 22
Slide 23: Product Quality & Service: Scale provides flexibility to service all customers
Product Quality & Service: Our scale provides flexibility to service all customers Both bulk shipping needs o r containerised 23
Slide 24: Product Quality & Service: Leveraging global network to reach new markets
Product Trade Office Quality 24 & Service: Leveraging global network to reach new markets Global supply and customer network Sims Metal Management Metals Recycling Operations Key Export Market Global
Slide 25: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary 25
Slide 26: Electronics Recycling (SRS): Strategy
Electronics strategy stimulates hypercompetitive equipment footprintishas exited over 2005-2010 Recycling ? SRS ? and Integrate regions invests customer (SRS): profitable exited global in Reset emerging service business and network toinaddress work supportive been servicing offlows rich right-sized
Slide 27: Electronics Recycling (SRS): A clear plan for growth
Electronics growth and understand restructuring re-sale in asset capabilities Dubai, Recycling charges strategic South are (SRS): *and Africa *Remaining Standardise loss A clear and making SE portfolio plan global competitive purchasing for earnings work of Grow development advantages management, re
Slide 28: Electronics Recycling (SRS): Leveraging customer relationships
Electronics significant other recovery datarevenue storage component Recycling Leverages destruction (SRS): of future client Leveraging capabilities, revenue base toand customer create under EBIT client additional Data relationships supervision security opportunities is Case an Client increasing Stu
Slide 29: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary 29
Slide 30: Attractive opportunities for growth: Metals Recycling
Attractive opportunities relationships development to ? Asia: lift regional Retain for growth: longer-term market share Metals options Operational Recycling for a physical footprint Organic presence growth enhancements ininexisting China ? Investigate and coreEast markets Asia asset? swaps Strategic
Slide 31: Attractive opportunities for growth: Electronics Recycling (SRS)
Attractive as services a portion ?from On-site opportunities ofWestern totalasset SRS firms management for revenues growth: in emerging ? Electronics Expand capabilities market mobile Recycling economies device (SRS) repair, New business Continue re-use, and and growth re-sale services inGrow Asset
Slide 32: Agenda
Agenda ? Strategy Overview ? Streamline ? Optimise ? Metals Recycling ? Electronics Recycling (SRS) ? Grow ? Summary 32
Slide 33: A clear five-year strategic plan
A clear five Strengthen strategic businesses supplier -year strategic relationships servicesplan • Further Grow with Optimise cost assetreductions management • Organic 1-2and years market • Exploit 3-4 share years local growth 5 years & global and33feeder logistics yard•network Share operational exp
Slide 34: Strategic Review Appendix
Strategic Review Appendix July 23, 2014
Slide 35: Restructuring charges
Restructuring term operations loss restructuring $85 million making Norththese America in UK-based charges Charges restructuring actions Metals were 1$56-58 result ? Strategic originally Recycling charges in ? The total review 35 non-cash announced pre-tax interests hassignificant portion identified
Slide 36: Global operations and sales tonnes
Globaltonnes: Sales (SRS)** shredders Recycling *~9 Metals JV 9.4Mt facilities Operations Recycling (FY13) & Metals 2geographies Europe shredders Recycling: Sales Electronics include tonnes: ~70SRS 1.6Mt facilities, Recycling: ** (FY13) Number 1011 shredders, Metals of facilities facilities Recyclin