Slide 1: Financial Results Half year ended 31 December 2014
For personal use only Financial Results Half year ended 31 December 2014 Galdino Claro, Group CEO Fred Knechtel, Group CFO 13 February 2015
Slide 2: Significant increase in earnings and dividend
Significant increase in earnings and dividend For personal use only Sales Revenue Sales Tonnes $3,387m -6% 5.5Mt -10% Underlying EBITDA1 Statutory EBITDA $149m 16% $154m 36% Underlying EBIT1 Statutory EBIT $91m 35% $95m 83% Underlying NPAT1 Statutory NPAT $64m 53% $75m 701% Underlying EPS1 (diluted)
Slide 3: Strategic plan advancing as anticipated
Strategic plan advancing as anticipated For personal use only Streamline Optimise Grow 1H15 Progress • Winding down of unprofitable • Established Project • Acquisition of two small e-recycling businesses in the Management Office (PMO) to businesses, one each within UK and Canada drive strategy imple
Slide 4: Earnings growth tracking on target
Earnings growth tracking on target For personal use only 350 321 A$m 300 250 Grow 200 Optimise 150 119 Streamline 100 91 67 50 Clear pathway for significant further EBIT growth 0 FY13 FY14 HY15 FY18 Underlying Underlying Underlying Target EBIT EBIT EBIT EBIT On track to $321 million of EBIT 4
Slide 5: Capital Expenditure and Capital Management
Capital Expenditure and Capital Management For personal use only Sustaining Expansionary Capital Shareholder wealth creation through Capex Capex Management the right balance of business investment and capital management Ongoing maintenance Investment in organic Dividend for HY15 of to sustain high a
Slide 6: Segment & Financial Performance
For personal use only Segment & Financial Performance Fred Knechtel, Group CFO 6
Slide 7: Stronger margins offset lower volumes
Stronger margins offset lower volumes For personal use only Underlying EBIT1 of $91m, up by 35% 110 A$m North America Metals EBIT increased $23m +12 100 over HY14 due to higher gross margins and lower +23 +7 operating expenses, offsetting lower volumes 90 -10 ANZ Metals EBIT decreased $9m primarily
Slide 8: Sales Revenue & Underlying EBIT by Region
Sales Revenue & Underlying EBIT by Region For personal use only Sales Revenue (A$m) HY15 HY14 Chg % HY15 Sales Revenue 12% 0% North America Metals 1,913.3 2,058.6 -7.1% NA Metals ANZ Metals 553.6 575.7 -3.8% ANZ Metals 15% Europe Metals 513.2 527.0 -2.6% Europe Metals 57% Global E-Recycling Global E
Slide 9: Sales Revenue & Volume by Product
Sales Revenue & Volume by Product For personal use only Sales Revenue (A$m) HY15 HY14 Chg % HY15 Sales Revenue 2% 12% Ferrous Metals 2,250.8 2,460.7 -8.5% Ferrous Metals Non Ferrous Metals 682.9 663.0 3.0% Non Ferrous Metals Global E-Recycling 401.5 422.3 -4.9% 20% Secondary processing and Global E-
Slide 10: North America Metals
North America Metals For personal use only A$m HY15 HY14 Chg % Performance Improved earnings driven by stronger gross margins Sales Revenue 1,913.3 2,058.6 -7.1% and a disciplined approach on lowering operating costs and increasing metallic yields Statutory EBITDA 65.9 32.7 101.5% Sales volumes decl
Slide 11: Australia & New Zealand Metals
Australia & New Zealand Metals For personal use only A$m HY15 HY14 Chg % Performance First half profitability impacted by difficult trading Sales Revenue 553.6 575.7 -3.8% conditions, falling commodity prices, and lower volumes Statutory EBITDA 43.6 53.7 -18.8% Strategic Progress Underlying EBITDA 4
Slide 12: Europe Metals
Europe Metals For personal use only A$m HY15 HY14 Chg % Performance Considerable lift in underlying earnings due to higher Sales Revenue 513.2 527.0 -2.6% gross margins and lower operating expenses Statutory EBITDA 22.7 14.1 61.0% Gross margins boosted by improved metallic yields across the region’s
Slide 13: Global E-Recycling
Global E-Recycling For personal use only A$m HY15 HY14 Chg % Performance Material recovery in underlying earnings to the highest Sales Revenue 401.5 422.3 -4.9% level in two years Statutory EBITDA 18.4 2.5 636.0% Stronger earnings were due to better performance from Continental Europe as well as red
Slide 14: Cash Flow Bridge
For personal use only 0 100 120 20 40 60 80 Cash and cash 57 equivalents (30 June 2014) Net Cash Inflows Cash Flows +53 from Operating Activities Capital Expenditure -40 Proceeds from Sale of +14 Fixed Assets Payments for Acquisitions of -4 Subsidiaries, Net of Cash Net Repayments / Cash Flow Bridge
Slide 15: Summary & Outlook
For personal use only Summary & Outlook Galdino Claro, Group CEO 15
Slide 16: Summary & Outlook
Summary & Outlook For personal use only Competition for intake material remains high, however industry structure for metals recycling in North America appears to be becoming more rational Significant near-term downward pressure on ferrous scrap demand, as prices have fallen sharply since the start o
Slide 17: Appendix
For personal use only Appendix 17
Slide 18: Summary of financial items by Region
Summary of financial items by Region For personal use only Sales Revenue Sales Volumes A$m HY15 HY14 Chg % Thousand tonnes HY15 HY14 Chg % North America Metals 1,913.3 2,058.6 -7.1% North America Metals 3,818 4,342 -12.1% ANZ Metals 553.6 575.7 -3.8% ANZ Metals 944 975 -3.2% Europe Metals 513.2 527.
Slide 19: Significant items by region – HY15
Significant items by region – HY15 For personal use only NA ANZ Europe Global Pre-Tax After-Tax HY15 (A$m) Unallocated Metals Metals Metals E-Recycling Total Total Reversal of an impairment of loan -0.6 - - - - -0.6 -0.6 receivable Net impact from investments in - - - - -2.0 -2.0 -2.0 associates Net
Slide 20: Significant items by region – HY14
Significant items by region – HY14 For personal use only NA ANZ Europe Global Pre-Tax After-Tax HY14 (A$m) Unallocated Metals Metals Metals E-Recycling Total Total Fixed Asset Impairment - - - 2.3 - 2.3 2.3 Insurance recoveries net of write- -3.3 - - - - -3.3 -3.3 offs Lease settlements/onerous leas
Slide 21: HY15 income tax expense considerations
HY15 income tax expense considerations For personal use only HY15 (A$m) Profit Before Tax Income Tax Effective Tax % Statutory Result 91.3 16.8 18.4% Reconciling items: Impact of significant items -4.2 0.0 Utilisation of previously unrecognised tax losses 0.0 8.5 Underlying losses not tax benefited
Slide 22: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 13 February 2015. It is provided in summary form and does not purport to be complete. It should be read in conjunction with