Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — H1 FY2013 Earnings Presentation
44 slides from Sims's earnings presentation, Feb 22, 2013
Slide 1: Interim Half Year Results Supplemental Materials
Exhibit 99.2 Interim Half SIMS Daniel 22 February year METAL W. results ended Dienst, 2013 –MANAGEMENT 31 Supplemental Group December Chief2012 Materials Executive Officer Rob Larry, Group Chief Financial Officer
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
SIMS Disclaimer Cautionary This are These results Exchange Because to cautionary circumstances 2All place typically subsequent references presentation METAL forward-looking orundue these earnings Commission statements Statements identified to forward-looking after reliance MANAGEMENT written currenc
Slide 3: Appendices
SIMS Appendices A. B. C. 3D. Progress Macroeconomic Financial Summary METAL Towards Results ofMANAGEMENT Restated Analytics Details Strategic Financial Goals Statements
Slide 4: Appendix A) Financial Results Details
SunsetMETAL Appendix Financial 4SIMS Park, Results A) NYMANAGEMENT –Details Municipal Recycling
Slide 5: Financial Overview
Financial SIMS HY EBITDA Goodwill Depreciation Amortisation EBIT NPAT EPS Underlying Capital Net Sales Interim 5*Underlying 2013 cash Debt Debt/(Net (cents) Tonnes Revenue ($m) METAL ($m) Expenditures Dividend inflow ($m) Restated Overview &(320.9) EBITDA EBIT NPAT EPS (295.5) –Intangible EBITDA, ($
Slide 6: Sales by Region
Sales SIMS 59.6% 16.7% 23.7% $m Australasia North Europe Total •HY 66.4% 13.9% 19.7% 6when HY2013 HY 2013 2012 $Revenue compared America METAL 3,428.5 811.6 2013 sales 573.6 HY 900.6 by MANAGEMENT 2,043.3 $revenue to4,583.9 2012 639.2 Region PCP. (9.9) Change 3,044.1 (10.3) was (25.2) mostly (%) (32
Slide 7: Sales by Product
Sales SIMS 0.8% 47.0% 4.4% 13.3% 19.2% 15.3% $m Manufacturing/JVs Ferrous Non Recycling Manufacturing/Other Total HY 1.4% 47.9% 4.2% 17.4% 18.3% 7•10.8% Ferrous Decline HY 2013 2012 Ferrous $Revenue METAL 3,428.5 2013 Trading Brokerage brokerage inSolutions Manufacturing/Other Trading/Brokerage Shre
Slide 8: EBITA by Region
SIMS ($’s $50 (12.9) (2.7) (5.0) (1.9) (25.7) (11.9) (0.3) 9.1 41.2 15.7 -$30 -$20 -$10 Australiasia $m Restated North Europe EBITA Unallocated Amortisation Goodwill EBIT 1. 2. HY 8Australasia EBITA HY 2012 2013 in(post-goodwill $40 (pre-goodwill America METAL millions) (pre-goodwill by (2) 2013 $30
Slide 9: Significant Items
Significant SIMS North Australasia $m Redundancy Loss Superstorm Fixed Bad Provisions Commercial Restated Goodwill Inventory Credit Final Prior 9Total HY Debt on Period Significant Settlement Asset Group METAL Loss 2013 Sale Revaluation HY & Impairment and Adjustments Related Items America Sandy Due
Slide 10: EBITA by Product
SIMS ($’s $60 -6.0 5.2 31.0 14.5 29.5 18.3 5.8 8.8 47.7 12.9 -$10 HY Fe Restated $m Ferrous Non Recycling Manufacturing/JVs/Other EBITA Group Amortisation EBIT •impairment) 10 EBITA Recycling Significant Trading HY 2013 2012 in $50 Ferrous (pre-goodwill METAL millions) &(pre-goodwill by 2013 Trading
Slide 11: Intake Volumes by Region
Intake SIMS Australiasia 14.3% 71.9% 13.8% Restated Australasia North Europe Total HY 11 12.5% 75.6% 11.9% 2013 2012 Tonnes 6,000 America METAL Volumes 827 859 7,272 865 North (‘000’s) MANAGEMENT 4,314 by 907 (4.4) (17.5) America Region (5.3) 5,500 HY 2013 (21.6) Europe HY 2012 Change (%)
Slide 12: Intake Volumes by Product
Intake SIMS 36.9% 37.0% 21.1% 4.7% Restated Ferrous Non Other Total •HY 0.3% 36.7% 33.7% 25.5% 3.8% 12 Ferrous 2013 2012 Ferrous Tonnes 6,000 Processed 17 METAL Volumes Shredded Shred Brokerage 21 brokerage 7,272 (19.0) Trading/Brokerage (‘000’s) (inc. MANAGEMENT by Ferrous (17.5) (incl. Product 1,2
Slide 13: Sales Volumes by Region
Sales2012 SIMS Australiasia 15.2% 71.4% 13.4% Australasia North Europe Total HY 13 12.0% 76.7% 11.3% 2013 Tonnes 5,927 Volumes America METAL 795 899 7,151 808 North (‘000’s) by MANAGEMENT 4,233 855 (1.6) (17.1) Region America 5.1 5,488 HY 2013 (22.9) Europe HY 2012 Change (%)
Slide 14: Sales Volumes by Product
Sales SIMS 0.3% 37.6% 36.3% 21.3% 4.5% Ferrous Non Other Total •HY 0.4% 37.3% 33.2% 25.1% 4.0% 14 Ferrous 2013 2012 Ferrous Tonnes 5,927 Volumes Processed 21 METAL Shredded Shred Brokerage 29 brokerage 7,151 (27.6) Trading/Brokerage (‘000’s) (inc. by MANAGEMENT Ferrous (17.1) Product (inc. 1,263 NFS
Slide 15: Group Income Statement
Group SIMS $m Restated Sales EBITDA EBIT Tax Net Underlying 15 HY Interest (Loss) Benefit Revenue (320.9) METAL Income 2013 32.6 Profit EBITDA EBIT Net 34.5 Expense HY (637.1) 99.5 Statement $MANAGEMENT Profit 3,428.5 14.3 After 2012 31.6 (66.9) (9.1) 93.8 316.2 20.2 After 75.7 Tax Change $(67.2) 14
Slide 16: Group Balance Sheet
Group SIMS As Restated $m Current Non-current Other Total Net 16 of December Assets/Equity Debt Assets Liabilities 31 Non-current METAL Balance Assets Liabilities As (Cash)/[Net of Assets 3,077.2 Borrowings 2012 30 $MANAGEMENT Sheet 1,129.4 1,356.0 June $645.2 Liabilities 1,721.2 2012 1,947.8 3,509.
Slide 17: Strategic Capital Allocations
Strategic & SIMS $m Net CAPEX, Acquisitions, Share Dividends Proceeds 17 Distribution HY Cash Repurchases METAL 2013 net Capital from Inflow 20.4 77.7 HY net sale to MANAGEMENT 48.7 from Allocations of 2012 Shareholders 65.0 8.6 of cash (28.3) businesses Operating 12.7 25.2 Change acquired (16.6) ($
Slide 18: North America Regional Results
North SIMS HY EBITDA Depreciation EBITA Goodwill Amortisation EBIT Underlying Assets Employees Sales (1) (2) 18 Excludes Underlying 2013 Revenue Margin ($m) America METAL ($m) ($m) ($m) HY &(1) 3,744 EBITDA EBITA EBIT $Intangible (1) Group ($m) of (%) 2012 1,669.7 (1) $($m) MANAGEMENT Regional EBITD
Slide 19: Australasia Regional Results
Australasia SIMS HY EBITDA Depreciation EBITA Goodwill Amortisation EBIT Underlying Assets Employees Sales (1) (2) 19 Excludes Underlying 2013 Revenue Margin ($m) METAL ($m) ($m) ($m) HY Impairment (1) 968 Regional EBITDA EBITA EBIT $(1) Group ($m) of (%) 2012 708.8 (1) $($m) MANAGEMENT EBITDA, 960
Slide 20: Europe Regional Results
Europe SIMS HY Restated EBITDA Depreciation EBITA Goodwill Amortisation EBIT Underlying Assets Employees Sales (1) 20 Underlying 2013 Revenue Margin ($m) METAL ($m) ($m) Regional ($m) HY Impairment $1,845 EBITDA EBITA EBIT $$(5.9) ($m) of (%) 2012 698.7 (5.0) $($m) MANAGEMENT EBITDA, intangibles 7.7
Slide 21: Appendix B) Progress Towards Strategic Goals
Appendix Progress SIMS METAL Towards B) MANAGEMENT Strategic Goals
Slide 22: Progress Towards Strategic Goals
Progress SIMS 1) 2) (i.e., 3) •4) 22 Acquisitions Underlying Further Solidify Divestment Expanding Optimizing Enhancing Capitalizing Maturation Creating Long-term Advance Targeted Portfolio E-Recycling Colorado, METAL towards cost leadership platform cost in optimization strategy recovery New of con
Slide 23: Controllable Cost Reductions
1)49 SIMS •U.K. Controllable 600 8A$m 1578 10 7528 591 42 HY12 North Australia UK Global Group *HY13 23 570 Controllable Controllable Targeted Metals 550 Metals America METAL Significant Controllable Unallocated SRS 500 Metals cost Cost 450 costs costs MANAGEMENT Metals reductions 400 Items Bridge a
Slide 24: 1) Update on Cost Reduction
1)Update SIMS North Australia Total •UK 24 Management Rigorously . .Metals .with controllable America METAL to Metals further and beexamining provided is projects MANAGEMENT Metals Global targeting cost reduction reductions SRS cost with further a reductions further fullcost run year identified $2 s
Slide 25: 2) Acquisition and Portfolio Optimization
2)Acquisition SIMS North solid Australia •UK Playing 25 Directing Growing Development Freeing Divestment Reduced Expanding Re-alignment Asset Metals ROI’s America METAL to portfolio up and our controllable footprint capital through capital operations of New strengths MANAGEMENT Metals of Colorado sh
Slide 26: 2) North America Asset Portfolio Footprint
2)Richmond SIMS Sims Joint Deep River Western 0Central Texas/Oklahoma 24Gulf 1Southeast *63Northeast Solidifying 26shredder, shredders, Blue North Coast Venture Metal Sea System METAL Water Region Region American Access Region Region 711 leadership Management 6Steel 11 20 yards /Shredder Facility Ac
Slide 27: 3) Applying E-Recycling Platform
3)Applying •–SIMS 25 US$bn 17% 2011 Source: Global 51 across 27 Leveraging Creating Backlog Simplification Nov E-Recycling 20CAGR facilities 2012 15 METAL 2012 7SRS E-Recycling Markets countries 10 of synergies 2013F low opening 5Operations growth unrivalled 0MANAGEMENT capital platform of and 2014F
Slide 28: 4) Continued Advance in Emerging Economies
4)Continued SIMS Implied 160 Domestic 2004 2002 EAF 80 Mt India Turkey 2000 Source: China Chiho-Tiande •Additional 28 Over Implied Metals SimsMM Advance 70 annualized 140 Crude 2006 2002 43,100 60 METAL 70,900 50% 25,275 World Macquarie Chinese 120 recycling 50 ferrous Imports 2008 2004 opportunitie
Slide 29: 4) Capitalizing on Emerging Markets
4)Capitalizing SIMS Established Municipal E-recycling Full Recycling Metals South Canada China Vietnam India United Papua Malaysia U.A.E. Singapore New •Australia 29 Leveraging Advance Service Market Zealand Africa METAL New Trading Kingdom States Recycling in Guinea Market Offering Entry our on eme
Slide 30: Appendix C) Macroeconomic Analytics
Claremont Appendix Macroeconomic SIMS METAL C) Terminal, MANAGEMENT Analytics NJ – Metals Recycling
Slide 31: US Scrap Generation and GDP Growth
SIMS 14,000 02R2 80,000 60,000 40,000 US Scrap 8% 1982: 1991: 2001: Mt 80 Post Source: 31 0,000 60 = 100 GDP scrap 6% recession 1982 0.814 40 Generation generation 6.7% 1.7% 4.0% METAL 12,000 4% USGS, (constant 20 generation scenario 2% CAGR 0 scrap 10,000 MANAGEMENT 0% BEA US thousand terms) Post o
Slide 32: Improving Vehicle and Appliance Sales
SIMS Post 80 Kg *LT Improving 20 Vehicle 60 Appliance US Source: 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 million 32Ferrous 70 18 50 Avg per consumer Major consumer 60 16 40 METAL capita sales Scappage AHAM, Wards Conference 50 14 30 scrap appliance scrap vehicle 40scrap 12 20 Auto, shreddable MANAGEMENT 30
Slide 33: US Consumer Confidence and Scrap Generation
•SIMS push 160 US 1980 75 kg *Source: 33 Positive Improved US Ferrous 70 consumer 140 consumer shredder 1982 65 METAL Conference 120 60 scrap signals 1984 consumer 55 100 activity scrap confidence utilization MANAGEMENT 50 scrap from 1986 80 in45per the Board, 60 vehicles, generation 40 confidence k
Slide 34: US Shredder Capacity
US •SIMS Avg 4300 4400 4500 4600 4700 4800 4900 Average Auto 350 1998 Source: 34 While Since US shredding 300 Horsepower market Shredders 1999 METAL 2006 1998 overcapacity Recycling 250 Shredder 2000 shredding 200 the total capacity MANAGEMENT (RHS) 2001 average 150 US Horsepower Today, continues 10
Slide 35: Increasing EAF Steel Production
Increasing SIMS 400 % 50% 2000 EAF 70% 1975 United Source: China Germany France •8.8Mt 35 Turkey Vietnam Growth Global EAF Scrap Russia of300 40% 60% Steel Production as total 2002 1980 METAL by output States demand % World 200 is EAF isin 2015. 30% 50% announced of Production global planning 2004 1
Slide 36: Appendix D) Summary of Restated Financial Statements
North Haven, Appendix Summary SIMS METAL of D)Restated CT MANAGEMENT – Metals Financial Recycling Statements
Slide 37: Financial Overview FY2010-2012 Restated
Financial SIMS FY EBITDA 7,452.6 8,846.8 9,035.7 343.1 423.7 182.2 Goodwill 350.5 414.0 -0253.2 675.6 Depreciation Amortisation 109.1 102.2 103.1 EBIT 34.8 28.4 26.8 198.3 293.1 (623.3) NPAT 206.6 283.4 123.3 121.4 187.3 (622.5) EPS 127.3 182.0 68.3 Underlying 61.8 90.9 (302.4) 64.8 88.4 32.9 Capita
Slide 38: EBITA by Region FY Restated
SIMS $m FY North 81.2 87.3 106.3 Australasia Europe 113.1 140.6 (25.7) EBITA 61.6 95.7 4.1 Unallocated $255.9 $323.6 $84.7 Amortisation (21.9) (2.1) (5.6) (34.8) (28.4) (26.8) Non-cash $199.2 -($52.3 (675.6) EBIT (1) $198.3 $293.1 $(623.3) (2) 38 0.9)FY 2012 2011 2010 (pre-goodwill (post-goodwill Am
Slide 39: EBITA by Product FY Restated
SIMS $m FY Ferrous 133.2 181.7 52.2 21.4 23.4 14.6 Non 95.7 92.9 71.4 Recycling 3.2 1.6 1.1 EBITA 26.9 30.0 19.1 Manufacturing/JVs/Other 82.0 107.8 57.8 Group $362.4 $437.4 $216.2 Amortisation (128.4) (115.9) (137.1) EBIT (34.8) (28.4) (26.8) (1) $199.2 $293.1 $52.3 (2) (3) 39 FY 2012 2011 2010 Ferr
Slide 40: Intake Volumes by Region and Product Restated
Intake SIMS North 1,791 Australasia 1,687 Europe* 10,908 FY Other 5,021 Ferrous 5,146 Non 3,613 *FY 14,386 Total 47 Other* 559 40 2012 Ferrous 2012 Tonnes Processed America METAL Volumes Shred Brokerage restated. Trading/Brokerage (‘000’s) (inc. MANAGEMENT by Ferrous Region NFSR)*& Product — Restate
Slide 41: Group Income Statement FY Restated
Group SIMS $m FY Sales 343.1 423.7 182.2 EBITDA* $7,452.6 $8,846.8 $9,035.7 198.3 293.1 (623.3) EBIT* 350.5 414.0 253.2 206.6 283.4 123.3 Tax (13.6) (23.9) (21.2) Net (63.3) (81.9) 22.0 Underlying $121.4 $187.3 $(622.5) *FY $127.3 $182.0 $68.3 41 2012 2011 2010 Interest (Loss) Benefit 2012, Revenue
Slide 42: Group Balance Sheet FY Restated
Group SIMS $m FY $1,486.9 $1,754.1 $1,429.1 2,745.6 2,413.3 2,079.9 Current 4,232.5 4,167.4 3,509.0 Non-current 672.1 819.9 734.2 Other 116.6 291.2 329.9 Total 170.2 144.8 161.2 958.9 1,255.9 1,225.3 Net $3,273.6 $2,911.5 $2,283.7 42 (0.5) 4.2 11.32012 2011 2010 Assets/Equity Debt Assets Liabilities
Slide 43: Europe Regional Results FY Restated
Europe SIMS FY EBITDA $1,191.3 $1,484.6 $1,780.6 119.8 30.1 Depreciation 91.9 116.1 84.5 EBITA 22.9 24.1 26.0 61.6 95.7 4.1 Goodwill 69.0 92.0 58.4 -A 102.9 EBIT 2.4 2.1 1.9 Underlying 59.2 93.6 (100.7) Assets 66.6 89.8 56.5 Sales 1,307 1,727 1,900 Employees 637.3 878.5 709.6 *FY 26.9 24.3 17.9 43mo
Slide 44: Prepared for Today, Positioned for Tomorrow
SIMS METAL Prepared Positioned 44 forforToday Tomorrow MANAGEMENT
Sims Metal Management — H1 FY2013 Earnings Presentation on 6ix