Sims Ltd. · ASX:SGM
Sims — Investor Day (March 2022)
169 slides from Sims's investor day presentation, Apr 5, 2022
Slide 1: Creating Value by Providing a Pathway for Decarbonisation to our Customers
For personal use only Creating Value by Providing a Pathway for Decarbonisation to our Customers Investor Day Briefing 29 March 2022
Slide 2: Acknowledgment of Country
For personal use only Acknowledgment of Country 2
Slide 3: Disclaimer
Disclaimer The material contained in this document is a presentation of information about the Group’s For personal use only activities current at the date of the presentation, 29 March 2022. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the
Slide 4: Agenda
Agenda Q&A Presenter For personal use only 8:00-9:00am • Progress on Strategy 15 mins Alistair Field • Market trends in 2022 & beyond and Sims’ response 9:00-9:45am ESG 15 mins Elise Gautier 9:45-10:00am Morning Tea 10:00-11:00am 101 Metal 15 mins John Glyde 11:00am-11:45am Fireside chat – Market co
Slide 5: Agenda
Agenda Q&A Presenter For personal use only 12.30pm-1:30pm Deep Dive on SLS 30 mins Ingrid Sinclair 1:30pm-2:30pm Update on SRR 15 mins Brendan McDonnell 2:30pm-2:45pm Afternoon Tea 2:45pm-3.45pm Finance 15 mins Stephen Mikkelsen 3:45pm-4:15pm Q&A Stephen Mikkelsen Wrap Up 4:15pm-5:15pm Drinks Manage
Slide 6: Alistair Field, Group CEO & Managing Director
For personal use only Alistair Field Group CEO & Managing Director 6
Slide 7: Strategy: Progress since 2019
For personal use only Strategy Progress since 2019 7
Slide 8: Create a world without waste to preserve our planet
For personal use only Create a world without waste to preserve our planet
Slide 9: Our Business Strategy is Enduring
For personal use only Our Business Strategy is Enduring Sims Metal Sims Resource Renewal Sims Lifecycle Sims Energy Sims Municipal Recycling Fortify and grow Utilise waste to create new Grow product stewardship Expand proven business Develop recycling solutions sustainable profits revenue stream and
Slide 10: Business Transformation Underway
Business Transformation Underway Organisational structure and leadership changes in place with early signs of improvement in effectiveness, efficiency, and culture For personal use only • Improved Communication and Purpose Transition from a regional to a Delayering the organisation to & Direction sc
Slide 11: Engaged Employees
Engaged Employees Maintained high levels of employee engagement despite COVID-19 disruption For personal use only Engagement Score 82% FY19 FY21 11
Slide 12: Employee Health & Safety
Employee Health & Safety Turned safety performance around and embedded a sustainable safety culture For personal use only Total Recordable Injury Frequency Rate (TRIFR)1 FY21 was Sims’ safest year 3.5 Fewest critical risk incidents, fewest injuries, 2.9 3.0 and lowest injury rates on record 2.5 1.8
Slide 13: Sims Metal Ferrous
Sims Metal Ferrous PROGRESS ACHIEVED BY 2022 For personal use only Engineering & Feeder Yard Expansion Acquisitions Logistics Technology • Artesian, Illinois FY19 • Sims Pacific Metals FY19 Ongoing initiatives include: • Initiatives in place to • Odessa, Texas FY20 optimise logistical • Morley FY19
Slide 14: Sims Metal Retail Non-Ferrous
Sims Metal Retail Non-Ferrous PROGRESS ACHIEVED BY 2022 For personal use only Engineering & Buy Strategy Sales Strategy Inorganic Opportunities Technology • Capex programme Ongoing initiatives include: Ongoing initiatives Alumisource- focused on scrap include: a transformational collection • Install
Slide 15: Sims Metal: On track to achieve 2025 targets
Sims Metal On track to achieve 2025 targets despite volatile global scrap metal market For personal use only Challenging market conditions Ferrous Sales Volumes (‘000 tonnes) Volatile market conditions caused by Target set in 2019 Updated target September 2019 scrap market crash (1) Expand metal vol
Slide 16: Sims Resource Renewal
Sims Resource Renewal On track to deliver on FY25 target For personal use only FY19 FY21 FY22 FY25 Pre-feasibility • Statutory approval • Paused further work Target set in 2019 Updated target commenced for the Rocklea pilot on Campbellfield facility facility due to 290k ASR Capacity 120k • Confirmed
Slide 17: Sims Lifecycle Services
Sims Lifecycle Services Updated target to reflect changing market For personal use only FY21 FY25 Target set in 2019 Updated target Tonnes of Cloud Material Recycled 8.5 Repurposed Units 200,000 (millions) 2.1 15,200 1.0 1.3 FY19 FY21 1H22 FY25 FY19 FY21 1H22 FY25 • Divested low margin European Comp
Slide 18: Sims Municipal Recycling
Sims Municipal Recycling Strengthened the business through new contracts and JV; poised to innovate and scale up quickly For personal use only JV to accelerate innovation and Progress after JV: Structure and Progress before JV: New contracts expand operations into new Strategy in place markets in th
Slide 19: Sims Energy
Sims Energy Expected to meet first year production targets; multiple growth opportunities For personal use only JED Landfill Gas Plant • Acquired in July 2021 • Orlando, Florida • Gas Rights: 26 years plus 10 year extension • PPA Term: 16 years remaining • Current Production: 6.7 MW Growth Opportuni
Slide 20: LMS Energy
LMS Energy Strong growth in contracted biogas rights, carbon reserves and installed generation capacity For personal use only • Achieved strong growth in core landfill gas (LFG) business, strengthened market share and grew carbon reserves • Continued focus on innovation to diversify electricity reve
Slide 21: Structural Market Tailwinds
For personal use only Structural Market Tailwinds 21
Slide 22: Structural Market Tailwinds
Structural Market Tailwinds Create strategic opportunities for Sims For personal use only Increased environmental concerns for our Electrification and energy transition to customers drive copper and aluminium prices higher More stringent environmental controls lift standards Global push for high qua
Slide 23: More Stringent Environmental Controls
More Stringent Environmental Controls Lift standards required to operate in the metal recycling industry For personal use only • Stricter environmental controls on emissions (mostly particles of dirt and dust) from shredders in the United States • EPA in Victoria, Australia has introduced stockpile
Slide 24: Decarbonisation
Decarbonisation Countries and companies rapidly commitment to lower or net zero emissions For personal use only COMPANIES1 GOVERNMENT – NET ZERO TARGET STATUS2 Percentage of total global GHG emissions across all nations “At least one fifth (21%) of the 43% world’s 2,000 largest public companies, rep
Slide 25: Circular Economy
Circular Economy A circular economy is key to achieve net-zero targets For personal use only Moving to renewables can address 55 percent of global GHG emissions to meet the UN climate goals, it will be essential to address the remaining 45 percent that comes from manufacturing everyday products Elle
Slide 26: Decarbonisation of the Metal Industry
Decarbonisation of the Metal Industry Using recycled metal is paramount to reduce carbon emissions For personal use only 7% of global Steel produced from EAF emits An electric arc furnace can be greenhouse emissions 83% less CO2/tonne compared charged with 100% steel scrap. A are produced by the to
Slide 27: Aluminium
Aluminium Will be a key beneficiary from the Energy Transition For personal use only LME Aluminium Inventory1 (mt) The metal of choice for the solar 3,500,000 industry 3,000,000 Usage of Aluminium for various 2,500,000 components, including mounting and framing solar PV panels and for 2,000,000 refl
Slide 28: Copper: Demand surge driven by Electric Vehicles
Copper Demand surge driven by Electric Vehicles For personal use only The demand for copper due to electric vehicles is expected to increase by 1,700 kilotons by 2027 Copper is a major component in EVs used in electric motors, bateries, inverters, wiring and in charging stations Sources: Internation
Slide 29: Copper: New supply required
Copper New supply is required to satisfy future demand, however global mine supply is expected to remain tight due to environmental concerns For personal use only LME Copper Inventory1 (mt) Global Copper Mine Supply2 (000t) 800,000 30,000 Environmental concerns have 700,000 led to bans to open-pit m
Slide 30: China
China Environmental regulation expected to increase electric arc furnace (EAFs) production, and consequently higher scrap demand For personal use only Lifted ban on high quality recycled ferrous on 1 January 2021 2020 2030 CAGR (million (million tonnes) tonnes) Scrap 248 343 +3.3% Demand EAF 80 162
Slide 31: Structural Changes in the United States
Structural Changes in the United States As the industry continues its rapid transformation from BF to EAF technology, scrap metal has become a strategic asset and the driving force behind consolidation wave in the market For personal use only 13.8 million tonnes of steel production capacity for new
Slide 32: End of Life IT Assets
End of Life IT Assets There is rising demand for repurposing units due to significant carbon reduction benefits and growth of the cloud industry For personal use only • In FY21 there were estimated to be 85 million units suitable for repurposing in the cloud1 • Enterprise data storage is expected to
Slide 33: Increased Focus on Waste Management
Increased Focus on Waste Management Reusing and recycling materials is essential to minimise greenhouse gas emissions For personal use only Worldwide Projected Waste Generation (million tonnes per year) 714 602 490 468 440 396 392 342 Solid waste landfills are the third-largest 289 source of human r
Slide 34: Well Positioned to Capitalise on Trends
Well Positioned to Capitalise on Trends Our capabilities and business strategy continue to match the accelerated tailwinds For personal use only Competitive Advantages Growth Strategy Technology & People • Dedicated in-house engineering team Grow core business and leverage synergies to • Best-in-cla
Slide 35: Market Leadership Position
Market Leadership Position We are #1 and #2 in the markets we operate For personal use only #1 #2 North America UK Metal Metal & SAR New #1 Zealand Australia Metal Metal #1 Source: Sims’ estimates 35
Slide 36: Metal Business
Metal Business We seek to deliver on the metal targets through a very targeted and disciplined growth strategy For personal use only Grow non-ferrous retail business in the US and expand metal volumes in favourable regions Ferrous Strategic lens to identify organic and M&A growth opportunities • Coa
Slide 37: Summary
Summary For personal use only We are on track to achieve our targets • Strong track record of execution and successful evolution We are future ready, now • Transformed the business to capitalise on the accelerated decarbonisation opportunities We are united by our common purpose • All business units
Slide 38: Questions & Answers
For personal use only Answers Questions & 38
Slide 39: Elise Gautier, Chief Risk & Sustainability Officer
For personal use only Elise Gautier Chief Risk & Sustainability Officer 39
Slide 40: Our ESG Journey
Our ESG Journey Positioning us well to support our stakeholders For personal use only Developed Published first First disclosure Sims Purpose sustainability Reconciliation Awarded Terra to the CDP articulated strategy Action Plan Carta Seal 2005 2008 2013 2018 2019 2020 2021 2022 Named Corporate Fir
Slide 41: The Value Sims Delivers
The Value Sims Delivers Sims plays an integral role in decarbonisation For personal use only Our measurable impact on We are strategically decarbonisation positioned to capture growth from • 8.6M tonnes of scrap metal for Metal Recycling accelerating reuse in low-embodied emission processes and prod
Slide 42: Latest Credentials
Latest Credentials Recognition for our ESG performance For personal use only Ranked 11th in the Ranked 87th in the Ranked #6 in Global 100 list of most Clean200 global list of Sustainability sustainable companies, publicly traded Magazine’s Top100 Terra Carta Seal for ranked for the 8th time compani
Slide 43: Integrated Approach to Business Performance
Integrated Approach to Business Performance Growth strategy embedded in the sustainability strategy For personal use only Tailwinds Increased environmental Materiality concerns and more Sustainability Strategy stringent environmental Growth Strategy controls • Advance the circular economy • Grow cor
Slide 44: Our Sustainability Strategy
Our Sustainability Strategy Three pillars driving economic, environmental and social value For personal use only SIMS_Sustainability Report (vimeo.com) 44
Slide 45: Sustainability Strategy: VIDEO
For personal use only Sustainability Strategy: VIDEO 45
Slide 46: Driving Accountability and Transparency
Driving Accountability and Transparency 2025 and beyond goals defined to measure success For personal use only OPERATE RESPONSIBLY CLOSE THE LOOP 1 Foster a safe work environment 5 Become carbon neutral by 2030 and achieve net zero by 2050 1.1 Total Recordable Injury Frequency Rate (TRIFR) ≤ 1 5.1 R
Slide 47: Sustainability Ambition: Carbon neutral by 2030
For personal use only Sustainability Ambition: Become carbon neutral by 2030 and achieve net zero by 2050 47
Slide 48: Accelerating Decarbonisation of Our Business
Accelerating Decarbonisation of Our Business Brought forward carbon neutrality target by 12 years For personal use only Targets set in line with SBTi Sims Carbon Emissions Tonnes of Co2e 2025 2030 ▪ 23% reduction in Carbon neutral in direct direct operations operations (scope 1 & 2) (scope 1 & 2) ▪
Slide 49: Current Emissions Profile
Current Emissions Profile Net total emissions declined despite increased activity For personal use only Tonnes of CO2e (t) Net total Scope 1 Net Scope 2 1 CO2e/$1M revenue FY20 152,154 78,592 73,562 19% 31.00t FY21 146,655 3.6% 81,190 65,465 Renewable 24.78t Energy FY21 Emissions Profile - Business
Slide 50: Pathway to Reaching 2025 Targets
Pathway to Reaching 2025 Targets Achievable through renewable electricity transition For personal use only By 2025 we will: 23% reduction by ▪ Have shifted to renewable 2025 electricity wherever commercially feasible ▪ Accelerated delivery of fuel efficiency and substitution projects ▪ Have advanced
Slide 51: Our Roadmap to Carbon Neutrality
Our Roadmap to Carbon Neutrality Key Initiatives to decarbonisation For personal use only 2022 2030 Design to Procurement Advocate for Carbon risk Engage decarbonise Model shadow carbon an orderly, assessment on employees price to guide internal & capex decisions policies 1.5° transition strategy &
Slide 52: Significant Progress
Significant Progress Achieved in the transition to renewable energy and electrification For personal use only Renewable Energy Electrification and Optimisation • Electrification of mobile plant and transit vehicles as Sites with Renewable Net scope 2 assets are due for replacement 100% energy emissi
Slide 53: Sustainability Ambition: Close Gender Gap
For personal use only Sustainability Ambition: Close Gender Gap 53
Slide 54: Increased Focus on Gender Diversity
Increased Focus on Gender Diversity Resulted in earlier accomplishment of the board diversity target For personal use only In 2021 launched ‘Women Leading Board Diversity Gender Pay Gap Women in Senior at Sims’ to support female leaders Management Target Achieved FY21: FY22 H1: 21% Australia: 5.0% v
Slide 55: Sustainability Ambition: Foster a safe work environment
For personal use only Sustainability Ambition: Foster a safe work environment 55
Slide 56: Safety Performance
Safety Performance Strategic safety focus driving reduction in critical incidents and injuries For personal use only Total Number of Incidents and Injuries . Key initiative highlights: Significant reductions FY19-H1 to FY22-H1 80 • Analysed incident data collected in the last 10 years to 68 identify
Slide 57: Safety initiatives
For personal use only POSTERS AND EHS POLICY AND TRAINING MODULES EHS MOBILE APP COLLATERAL SIMPLIFIED STANDARDS ON CRITICAL RISKS AND TO REDUCE PAPER RAISE SETTING REQUIREMENTS STANDARD BASED ADMINISTRATIVE AWARENESS OF AND EXPECTATIONS REQUIREMENTS TO BURDEN AND ENHANCE CRITICAL RISKS INCREASE AWA
Slide 58: Caught-in hazards controls
For personal use only Caught-in hazards OPERATIONS-LED EHS DASHBOARDS AND MONTHLY EHS GLOBAL CONTROL VERIFICATION & REPORTS PROVIDE COMMUNICATIONS STANDARDIZATION GENERAL INSPECTIONS VISIBILITY AND DRIVE USING PROACTIVE DATA OF CRITICAL CONTROLS CHALLENGE EXISTENCE AND ACCOUNTABILITY SUPPORTS STANDA
Slide 59: Strong Commitment To Sustainability
For personal use only Strong Commitment To Sustainability • Carbon neutrality target brought forward by 12 years • Achieved board diversity target ahead of schedule • Continuous improvement driving strong safety performance • Sims makes a measurable contribution to decarbonisation • Achieved many mi
Slide 60: Questions & Answers
For personal use only Answers Questions & 60
Slide 61: John Glyde, Chief Operating Officer Metals
For personal use only John Glyde Chief Operating Officer Metals 61
Slide 62: Metals
METALS 101 For personal use only • Overview of metal operations • What differentiates Sims • Why the quality as well as demand for scrap will increase • How can Sims provide a pathway to decarbonisation for its customers • How can Sims capitalise on this demand and create value 62
Slide 63: Metal Operations: VIDEO
For personal use only Metal Operations: VIDEO 63
Slide 64: Metal Operations
Metal Operations For personal use only Sorting, Baling, Container, Foundries, Smelters, Granulation + Polishing Truck, Rail Refineries SHELMO, Insulated Wire Non-Ferrous Retail Zorba + ZSP Polishing + Container, Foundries, Smelters, Zurik Advanced Truck, Rail Refineries Separation Collection, Sims F
Slide 65: Global Footprint
Global Footprint Extensive network of facilities enables global sourcing of infeed and UK Metal diversity of sales outlets 28 704 For personal use only Facilities 4 Shredders HY22 Intake Volume Australia , New Zealand & PNG Metal 51 859 8 North America Metal 57 2,401 12 SA Recycling 123 2,2851,2 23
Slide 66: Diversified Supply Sources of Scrap
Diversified Supply Sources of Scrap Reduces risk, protects margins and ensures resilience of the business model For personal use only Plumbers Transportation Car Wreckers Peddlers Public Mining Construction Utilities Transport 66
Slide 67: Supported with Collection Infrastructure
Supported with Collection Infrastructure To secure more scrap ‘at source’ higher up the value chain and ensure consistent supply of infeed material For personal use only Demolition Bins Demolition Truck Rail recovery 67
Slide 68: Demand for Scrap Metal is Accelerating
Demand for Scrap Metal is Accelerating… For personal use only Ferrous Scrap Metal - Global Supply and Demand 80 (Million tonnes per annum) 60 40 Deficit / Surplus 20 0 -20 -40 -60 -80 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 China
Slide 69: Driven by Decarbonisation
…Driven by Decarbonisation Expansion of EAFs and an increased use of scrap remain the preferred practical option For personal use only EU Mills Producing new steel from ferrous scrap Annual Emission Level (*Only European Sites) Approx. 52 mil tons requires60% less energy and Approx. 22 mil tons Appr
Slide 70: Demand for Higher Quality Scrap
… and Demand for Higher Quality Scrap The need for technologically enhanced obsolete scrap to meet decarbonisation targets has been publicly communicated by our customers For personal use only ‘[Nucor]has also been working on reducing copper content ‘Increase capabilities to assess quality of obsole
Slide 71: Prime vs Obsolete Scrap
Prime vs Obsolete Scrap Our capital investments are focused on processing obsolete scrap For personal use only Obsolete Scrap Prime Scrap Benefits: Benefits: • Population driven – diverse group of suppliers • Higher quality and low residual and widely available • Known chemistry • Our capital invest
Slide 72: Obsolete Scrap Ferrous
Obsolete Scrap Ferrous Is needed to fill the supply gap, presenting opportunities to upgrade quality allowing access to new market segments For personal use only Technical Challenges for the Consumption of Steel Scrap1 Content of tramp elements2 Fe 0.6% Ordinary steel bar B Mg AI Si Ca Ti 0.4% Impur
Slide 73: The Opportunities for Sims Ferrous
The Opportunities for Sims Ferrous For personal use only Sims’ Prime vs Obsolete 1 Spread1 • Capitalise on demand driven by Midwest Region decarbonisation • Extraction of non-ferrous, in particular 250 residual copper and aluminium 200 • Potential to attract significantly higher 150 USD$ pricing 100
Slide 74: Similar Opportunities in Non-Ferrous
Similar Opportunities in Non-Ferrous Redirecting scrap from traditional secondary markets to primary markets leads to higher pricing For personal use only ‘Postconsumer scrap is a key enabler towards a zero- carbon aluminium product. To grow in this area today, we focus across the recycling value ch
Slide 75: Seizing the Opportunity
Seizing the Opportunity Through operational innovation and R&D in emerging technologies – enhanced liberation, advanced separation, artificial intelligence, robotics and quality assurance For personal use only Advanced Inbound source Enhanced density separation and control and liberation lower resid
Slide 76: Summary
Summary For personal use only • Technology-driven metal operations access new attractive market segments • Business model is underpinned by unrivalled capabilities that set us apart • As the demand for scrap increases due to decarbonisation and the supply of prime scrap is limited, technological enh
Slide 77: Questions & Answers
For personal use only Answers Questions & 77
Slide 78: Fireside Chat: Markets Conditions
For personal use only Fireside Chat Markets Conditions 78
Slide 79: Fireside Chat
Fireside Chat For personal use only PHOTO Ana Metelo Graeme Cameron Group Director, Investor Relations Global Head of Trading 79
Slide 80: Questions & Answers
For personal use only Answers Questions & 80
Slide 81: Ingrid Sinclair, Global President, Sims Lifecycle Services
For personal use only Ingrid Sinclair Global President, Sims Lifecycle Services 81
Slide 82: Deep Dive on SLS
For personal use only Deep Dive on SLS
Slide 83: Our Journey
For personal use only Our Journey
Slide 84: SLS Video
For personal use only SLS Video 84
Slide 85: Data Centres
For personal use only Data Centres
Slide 86: For personal use only
For personal use only Source: Meta website
Slide 87: Types of Data Centers
Types of Data Centers For personal use only Cloud data centers In this off-premises form of a data center, data & applications are hosted by a cloud services provider such as Amazon Web Services (AWS), Microsoft (Azure), or IBM Cloud or other public cloud provider. Colocation data centers In colocat
Slide 88: What's Important to Data Centers?
What’s Important to Data Centers? For personal use only Power Consumption Sustainability Uptime Hardware Availability 100% 88
Slide 89: Hyperscale Data Center
Uninterruptable Power Supplies (UPS) Server Racks Hyperscale For personal use only Data Center Generators 1,000,000 Sq Ft DC uses approx. 1,000 MW of 1,000,000 square feet Staging Room electricity Usage of 600,000 92,903 square meters Entrance homes Entire San Diego area 150,000 100,000 square feet
Slide 90: For personal use only
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Slide 91: For personal use only
For personal use only 91
Slide 92: Server Rack
Server Rack For personal use only Made of steel 73.5 Inches 350 lbs. 92
Slide 93: For personal use only
AjwO-OSN-feuoSied 105 OE
Slide 94: Server
Server For personal use only 30 – 40 servers per rack Storage servers store data like Netflix movies Processing servers manage data like artificial intelligence 94
Slide 95: Motherboard
For personal use only Motherboard 95
Slide 96: Motherboard
Motherboard For personal use only Connects… Processor Memory Hard Drives 96
Slide 97: Processor
Processor For personal use only Processor Executes instructions, performs calculations, and coordinates input/output operations One or two processors per server 97
Slide 98: Memory (DIMM)
Memory (DIMM) For personal use only Gives applications a place to store and access data on a short-term basis 4 – 8 DIMMs per Memory motherboard 98
Slide 99: Hard Drives
Hard Drives For personal use only Core data warehouse, where all software and user data are stored. Mechanical Drive (HDD) Solid State Drive (SSD) ▪ Spinning Platter ▪ No moving parts ▪ Less expensive per GB. ▪ More expensive per GB. ▪ Older Technology ▪ Future ▪ Slow and energy intensive ▪ Fast and
Slide 100: Also in rack: Switch
Also in rack For personal use only Switch Allows data to enter from one source, and then directs it to a specific device 1 per rack 100
Slide 101: Also in rack: Cables, Fans, PDU
Also in rack For personal use only Cables Fans PDU (Power Distribution Unit) 101
Slide 102: Why Data Centres?
For personal use only Why Data Centres?
Slide 103: Large market potential
Large market potential In 2021 there were estimated to be 85 million units suitable for repurposing the cloud For personal use only Enterprise Data centre HDD & SSD install estimate 9,000 8,000 7,000 6,000 Exabytes 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 202
Slide 104: Online in 60 seconds
4,200,000 97,200 Google searches Hours of content consumed on For personal use only Netflix 510,000 3,470,000 Videos watched Active users on on YouTube Facebook ONLINE IN 60 seconds $283,000 7,000 Spent online shopping on Active users on LinkedIn Amazon 4,100 Clicks on sponsored Instagram posts 104
Slide 105: Strategy: SLS Growth
For personal use only Strategy SLS Growth
Slide 106: Global Leader in Circular Cloud Solutions
Global Leader in Circular Cloud Solutions For personal use only Global Circular Cloud Consistent Reuse Servers Compliant Redeploy Networking Comprehensive Reengineer Storage Sustainable Recycle 106
Slide 107: Pillars of Growth
Pillars of Growth For personal use only Expand services Grow current clients New clients - Fulfilment - Geographies - Co-locators - On site services - Services - Hyperscalers - Global Box - Enterprises e.g. Fortune Programme 500 - Sustainability 107
Slide 108: Demonstrated growth
Demonstrated growth Growing and scaling the business profitably For personal use only Consecutive earnings growth over three years 12 SLS Underlying EBIT (A$ million) Significant Underlying EBIT 10 advancement in HY22 vs HY21 resulting in 46% growth primarily 8 due to market share gains 6 4 Good res
Slide 109: FY22 Expansion
For personal use only FY22 Expansion 109
Slide 110: Growth expected to continue
Growth expected to continue Targeting 300% growth in repurposed units over the next four years For personal use only Repurposed Units (millions)1 10 8 6 4 2 0 FY21 FY25 Forecast 1. A repurposed unit is any unit that re-enters the market by being resold or redeployed. It excludes units that are recyc
Slide 111: Growth Delivery & Execution
Growth Delivery & Execution For personal use only Operational Technical Innovation Readiness Development • Dedicated • Industry knowledge • Innovation with a experienced team and leadership growth mindset • New services and • Operational solutions • Delivery through a locations structured approach 1
Slide 112: Our Ability to Scale and Pivot: SLS Site
Our Ability to Scale and Pivot: SLS Site For personal use only 112
Slide 113: Days Later: Rack ready for key client
30 Days Later: Rack ready for key client For personal use only 113
Slide 114: SLS market position
For personal use only position SLS market
Slide 115: Diversified earnings
Diversified earnings For personal use only Underlying EBIT by Client – FY22 Estimated Enterprise - Other Hyperscaler Enterprise - Tech 115
Slide 116: Repurposing represents 70% of revenue
Repurposing represents 70% of revenue For personal use only Revenue by Category – YTD FY22 Reuse Service Recycling Other 116
Slide 117: Why SLS is best in market
Why SLS is best in market Strong competitive advantages to continue to demonstrate growth For personal use only Integrated service provider Global Enabling service sustainability Sims Lifecycle Services Linked to the A secure larger Sims partner Group 117
Slide 118: A secure partner
A secure partner Selecting a secure partner is the most critical step for any IT Asset Manager For personal use only A large global bank received a US$60 million Consequences of not selecting a secure fine, a class action lawsuit and brand damage partner can be severe, for example: from an irreputab
Slide 119: Global service
Global service Strategically positioned to optimize owned sites near clients and subcontractors for far-reach areas For personal use only • Seamless services in-country • Strategic locations mixed between owned sites and subcontractors • Alignment with clients’ locations X X X X X X 119
Slide 120: Integrated service
Integrated service Full-service provider for data centres, enterprises and manufacturers on a global scale For personal use only Reuse Redeploy Reengineer Fulfillment Recycle 120
Slide 121: Linked to larger Sims Group
Linked to larger Sims Group For personal use only Publicly traded Secure Compliant Audited Sustainable 121
Slide 122: Public cloud hyperscalers
Public cloud hyperscalers Have ambitious sustainability goals and SLS can contribute to their achievement For personal use only CO2 Reduction Waste Reduction Other Microsoft ▪ Carbon negative by 2030 ▪ “Zero Waste” by 2030 There is also interest in a number of other sustainability areas: ▪ Governanc
Slide 123: Sustainability is a competitive advantage
Sustainability is a competitive advantage SLS offers unique sustainability offerings to clients that create a competitive advantage For personal use only SLS Service Provision Provision of bespoke reporting to enable Agile and strategic processing locations: client achievement of targets and meet Re
Slide 124: Conclusion
Conclusion For personal use only SLS has: • Demonstrated consecutive earnings growth over three years • Transformed the business to repurposing • Strong competitive advantages • Proven its ability to scale SLS will continue to grow • Targeting 300% growth in repurposed units over the next four years
Slide 125: Questions & Answers
For personal use only Questions & Answers 125
Slide 126: Brendan McDonnell, Group Chief Technology Officer
For personal use only Brendan McDonnell Group Chief Technology Officer 126
Slide 127: Closing the loop: Enabling a circular economy
Closing the loop Enabling a circular economy Achieving Sims Purpose For personal use only • Delivering a leading circular business model • Innovative technology to transform Sims waste and other hard to treat waste streams, into new useful products 127
Slide 128: Our Journey
Our Journey Evolution and Progression Evolving to a more circular model, completely closing For personal use only the loop Auto Industries & • Plasma gasification technology Manufacturers Consumers of best fit with input material and US & ongoing market flexibility UK Purpose/Circularity • Progressi
Slide 129: What is ASR and plasma gasification?
What is ASR and plasma gasification? Waste we currently send to landfill and how we’ll transform it ASR For personal use only Syngas ASR Vitrified Product • 1 million tonnes of ASR generated annually • Plasma torch transforms materials back to basic elements at +1,100 degrees • Decarbonisation will
Slide 130: Sims Residue Conversion Technology
Sims Residue Conversion Technology1 What it is and why are we developing it? For personal use only Feed Bin Residue • Our proprietary plasma gasification Conversion Vessel technology • Flexible technology that enables product creation to be tailored to market needs • Ability to apply R&D and innovat
Slide 131: Our Product Pathways
Our Product Pathways Different products for different markets For personal use only • First commercial facility in Australia: • Hydrogen - mainly for transportation • Carbon dioxide - for the food and beverage industry • Glass-like product - used to create aggregates for construction • R&D activitie
Slide 132: Input and Output Flow Chart
Input and Output Flow Chart Flexible end product options For personal use only 132
Slide 133: Unique Product; Premium Price
Unique Product; Premium Price Life Cycle Assessment preliminary results - low LCA hydrogen product LCA GHG impact of H2 For personal use only • Conducting a desktop “cradle to gate” life cycle greenhouse gas (GHG) 12 preliminary results) (Indicative range Steam Methane emission assessment (LCA) of o
Slide 134: Our Programme
Our Programme Our step-by-step pathway For personal use only Phase 1 Demo Plant - Develop proprietary Residue Phase 2 Conversion Technology - Fabrication underway North America Large-Scale Facility Phase 3 - Completion Q4 2022 - Build commercial plant with Australia Facility 2 (QLD) downstream to pr
Slide 135: Campbellfield/VIC project
Campbellfield/VIC project For personal use only Victorian Waste to Energy Framework • Paused further work on Campbellfield facility to minimize further investment until greater certainty of regulatory and licensing process available • Regulatory framework anticipated 2nd half of 2022 • Expect to app
Slide 136: QLD/Rocklea Demo Plant
QLD/Rocklea Demo Plant Construction, Delivery and Testing For personal use only • All major fabrication works underway, including Sims Residue Conversion vessel and supporting systems • Tender issued for Civil work design with planned commencement March 2022 • Completion in Q4 calendar 2022 • Testin
Slide 137: QLD Commercial Plant
QLD Commercial Plant Design, approval and construction For personal use only • Accelerated focus on developing QLD commercial facility • Assessment of several sites • Project completion - 36 months to 42 months from site selection • Design and regulatory approvals run in parallel 137
Slide 138: QLD Commercial Plant: Revenue base and Returns
QLD Commercial Plant Revenue base and Returns For personal use only • Based on a 60,000tpa of ASR feedstock, we anticipate producing 4,400tpa of high purity Hydrogen, 80,000tpa of high purity CO2 and 40,000tpa of vitrified product • Diverse revenue streams • Speed to market • Continue to optimise pl
Slide 139: Partnerships and R&D
Partnerships and R&D Creating additional value through collaboration For personal use only • Leveraging the strengths and expertise of partners creates additional value • Commenced discussions with various potential partners: R&D Ownership • Programme and Project participation • Off-taking Hydrogen,
Slide 140: Programme Rollout
Programme Rollout Across the globe For personal use only First phase 1.2 Remaining Facilities such as • Establish gasification and facility ANZ/NSW, UK, NAM/RWC BC delivery capability • Successful demonstration and 1 commercialization of Sims Residue ASR cumulative volume miltpa Conversion Technolog
Slide 141: Growth Led by Purpose
Growth Led by Purpose Growing revenue, managing risk and delivering value for society and the environment For personal use only Low risk approach to delivery over next 7 years. Clear focus on success with a progressive (not exponential) expansion of sites and operations. Option to expand using partn
Slide 142: Questions & Answers
For personal use only Questions & Answers 142
Slide 143: Finance
For personal use only Finance 143
Slide 144: Stephen Mikkelsen, Group Chief Financial Officer
For personal use only Stephen Mikkelsen Group Chief Financial Officer 144
Slide 145: Stephen Mikkelsen, CFO
For personal use only Stephen Mikkelsen CFO 145
Slide 146: Key Profit Drivers
Key Profit Drivers Trading margins in percentage terms relatively steady through the cycle Key Drivers For personal use only Group P&L (A$m) FY17 FY18 FY19 FY20 FY21 HY22 • Sims’ key earnings drivers centre around sales volumes, Sales Revenue 5,079 6,448 6,640 4,909 5,916 4,265 sale price per tonne,
Slide 147: Trading Margins & Operating Costs: Metal Recycling
Trading Margins & Operating Costs Metal Recycling Trading Margin For personal use only 30% 300 23% 23% • Margin in percentage terms typically steady through the 25% 22% 21% 22% 22% 250 Trading Margin cycle. A$ / tonne 20% 200 • Steady margins reflect the value added through material 15% 150 processi
Slide 148: Trading Margins & Operating Costs: North America Metals
Trading Margins & Operating Costs North America Metals Trading Margin For personal use only 30% 300 24% • Margin in percentage terms have remained steady 25% 22% 21% 22% 21% 21% 250 Trading Margin through the past five-year cycle, including the most A$ / tonne 20% 200 recent HY22 period. 15% 150 • M
Slide 149: Trading Margins & Operating Costs: ANZ Metals
Trading Margins & Operating Costs ANZ Metals Trading Margin 28% 28% 29% 28% For personal use only 30% 26% 26% 300 • Margin in percentage terms have remained steady 25% 250 Trading Margin through the past five-year cycle, including the most A$ / tonne 20% 200 recent HY22 period. 15% 281 150 • ANZ Met
Slide 150: Trading Margins & Operating Costs: UK Metals
Trading Margins & Operating Costs UK Metals Trading Margin For personal use only 30% 300 • Margin in percentage terms have been somewhat steady 25% 250 19% Trading Margin 19% through the past five-year cycle. A$ / tonne 20% 16% 16% 200 15% 14% • Slightly greater volatility in margins in part reflect
Slide 151: Revenue Composition
Revenue Composition 1/3rd of revenues from non-ferrous metals For personal use only 5% • Despite total non-ferrous metals accounting for 3% less than 10% of sales volumes, in revenue terms, non-ferrous accounts for nearly 1/3rd of sales for the metals recycling business. Sales Volume • Aluminium and
Slide 152: Inflationary Impacts
Inflationary Impacts Positive: Strong commodity tailwinds, partially offset by cost headwinds For personal use only Tailwinds Headwinds • Higher commodity prices for ferrous and non- • Meaningful upward pressure on labour costs as ferrous metals, combined with a relatively well as tight availability
Slide 153: Balance Sheet: Working capital tied to commodity prices
Balance Sheet Working capital requirements tightly aligned to commodity prices For personal use only • Cash investment into working capital is tightly 700 1,000 aligned to the price of ferrous and non-ferrous 900 metal, with average revenue / tonne, largely 600 mirroring changes in raw material inta
Slide 154: Balance Sheet: Working capital relative to sales
Balance Sheet Working capital relative to sales is more stable through the cycle For personal use only 10% • In absolute terms, working capital requirements move with commodity prices. 9% 8% • In relative terms through the cycle, average 7% % Sales Revenues working capital1 has remained relatively s
Slide 155: Balance Sheet: Target net cash balance
Balance Sheet Target net cash balance of A$100 million For personal use only 700 • Target of $100 million net cash, represents conservative cash management bias in a 600 commodity exposed business. 500 • Targeted net cash will be modified for short term A$ million fluctuations driven by commodity pr
Slide 156: Capital Expenditure
Capital Expenditure Disciplined and appropriate capital expenditure program • FY22 has seen a pick-up in the rate of capital For personal use only spend post-COVID as activity levels return to 250 normal. 200 • Going forward, sustaining capital expenditure is expected to approximate depreciation (ex
Slide 157: Recycling Capital
Recycling Capital Prudent capital management through a range of funding alternatives For personal use only Case Study: SMR • Identified as having returns below IRR hurdle • Good strategic opportunities but execution Constant assessment of returns difficult due to required management focus and strate
Slide 158: Capital Management
Capital Management Capital management aligned to shareholder value For personal use only Summary of Priorities 1. Target $100 million net cash excluding significant changes in working capital attributable to commodity price movements. 2. Invest in growth capex and acquisitions that deliver sharehold
Slide 159: SA Recycling Today
SA Recycling Today For personal use only 125 Facilities 23 Shredders Operations in 15 States 2.3 million tonnes 2.2 Sales Volumes +3000 employees Intake Volumes in HY221 in HY221 1 SAR volumes 100% 159
Slide 160: SAR's rapid growth since 2017
SAR’s rapid growth since 2017 Successful acquisition integration For personal use only • PSC Metals • Pirkle • DMW Metals Recycling • Southern Recycling • Tennessee Valley Recycling • Alter Trading • Metro • American Metal Recycling • Georgia Recyclers • Metals USA • The Scrap Yard • Ideal Metals &
Slide 161: M&A Integration
M&A Integration Long track record of creating value through successful M&A integration For personal use only ▪ 125 years’ management experience operating in the United States scrap metal market ▪ Experienced Board ▪ Strong internal processes, from due diligence to integration, run by an experienced
Slide 162: SAR - Volume and Revenue
SAR - Volume and Revenue For personal use only Intake Volumes 5% 4,000 14% CAGR 5% (000’) tonnes 3,000 Sales Volume 2,000 FY21 90% 1,000 0 2016 2017 2018 2019 2020 2021 Export vs Domestic 27% 58% Sales Revenue Export FY21 15% 46% Domestic 54% Ferrous Non-Ferrous Shredder Recovery Non-Ferrous Retail
Slide 163: SA Recycling's Business Priorities
For personal use only SA Recycling’s Business Priorities • Integration of acquisitions closed in HY22 • Enhance presence in existing footprint • Investment in technology and infrastructure • Further downstream investment to produce mill ready products, semi-finished products, or reduce dependency on
Slide 164: Key Summary
Key Summary • Trading margins in percentage terms are relatively steady through the cycle. For personal use only • % margin is a more reliable method of viewing earnings • One third of revenues are generated from non-ferrous metals • Meaningful exposure to copper and aluminium provides earnings upsi
Slide 165: Questions & Answers
For personal use only Questions & Answers 165
Slide 166: Alistair Field, Group CEO & Managing Director
For personal use only Alistair Field Group CEO & Managing Director 166
Slide 167: Outlook Remains Strong
Outlook Remains Strong 3Q22 performance tracking in line with 2Q22, underpinned by strong prices and demand For personal use only • EBIT momentum has, to date, continued into 3Q22. Intake levels remain solid benefitting from strengthened non-ferrous and ferrous commodity prices in March • SA Recycli
Slide 168: Questions & Answers
For personal use only Questions & Answers 168
Slide 169: For personal use only
For personal use only 169