Sims Ltd. · ASX:SGM
Sims — Macquarie Australia Conference 2024
11 slides from Sims's conference presentation, May 7, 2024
Slide 1: Creating Value Through Decarbonisation and the Circular Economy
For personal use only Creating Value Through Decarbonisation and the Circular Economy Macquarie Australia Conference 7 May 2024
Slide 2: Disclaimer
For personal use only Disclaimer The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 7 May 2024. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Gr
Slide 3: Market Influences: Decarbonisation, Regionalisation and Technology
Market Influences Decarbonisation, Regionalisation and Technology For personal use only Climate & Regulatory Sims Limited Geopolitical Fourth Industrial Revolution • Decarbonisation, electrification and Sims Limited • Regionalism and protectionism • Acceleration of AI technology energy transition •
Slide 4: Recycled Metal: Supply to lag demand
Recycled Metal Supply to lag demand For personal use only FERROUS NON-FERROUS Global Copper Mine Supply3 (000t) Metal Intensity By Passenger Vehicle An electric arc furnace can Sims Limited Transmission type (Kg/Unit)4 be charged with ~100% 30,000 scrap. A basic oxygen 25,000 furnace is limited to ~
Slide 5: Structural Change: EAF demand
Structural Change EAF demand. Shifts in scrap flows to impact Turkey For personal use only EAF Capacity (% of total ferrous production) 1 Export Projections & Change (Mt)2 US 2014 67 2023 75 Sims Limited 2028 79 EU 2021 (Total) ~19.5 2030 (Change) (~4.5) ANZ 16 25 50 US ~18.0 (~7.0) UK 22 19 50 Cana
Slide 6: Simplification
Simplification Improve execution, greater adaptability and resource optimisation For personal use only Focus areas STRATEGIC ELEMENTS Sims Limited Customers Innovative & Operational The Strength of Investing Agile Efficiency Our Network Responsibly Suppliers and Low-cost Safety & Domestic Cash gener
Slide 7: Ferrous Scrap Markets
Ferrous Scrap Markets Tight supply and challenging steel markets impacting all our metal markets For personal use only US Durable Good Shipments1 Chinese Steel Exports2 (Mt) % MoM change 40% 100 30% 20% 80 10% 60 0% -10% 40 +30% YoY -20% -30% 20 0 2017 2018 2019 2020 2021 2022 2023 2024 Mar YTD US D
Slide 8: Operating Focus: NAM early positive outcomes
Operating Focus NAM: Early positive outcomes For personal use only % Unprepared Scrap Metal1,2 Performance Improvements Initiatives +4 ppts • Margin focused; price discipline implementation; removed volume targets • Reward unprepared scrap in buyer incentive program 1QFY24 2QFY24 3QFY24 • Barging fo
Slide 9: UK Metal
UK Metal Strategic review on track. Operating initiatives implemented. For personal use only Strategic Review • Process on track • UK Metal well positioned to capitalise on EAF shift • Optionality: sale; JV/partnership; retain and restructure • Strong interest • Focus on best value outcome Operation
Slide 10: Sims Lifestyle Services
Sims Lifestyle Services Continue to grow repurposing business model For personal use only Repurposed Units (million) On track to deliver 5 Sims Limited 3.0 million repurposed units in FY24 2.5 2.0 1.5 1.0 0.5 0.0 HY22 2H22 HY23 2H23 HY24 3Q FY24 10
Slide 11: Create a world without waste to preserve our planet
Create a world without waste For personal use only to preserve our planet Driving value through a purpose-led strategy We enable the re-use of finite natural resources and the decarbonisation of our customers’ supply chain, directly creating measurable positive impact for individuals, communities, i