Sims Ltd. · ASX:SGM
Sims — Non-Deal Roadshow (August 2022)
25 slides from Sims's roadshow presentation, Aug 30, 2022
Slide 1: Creating Value by Providing a Pathway to Decarbonisation for our Customers
For personal use only Creating Value by Providing a Pathway to Decarbonisation for our Customers Geoff Brunsdon – Chairman Alistair Field – Group CEO & Managing Director Stephen Mikkelsen – Group Chief Financial Officer Japan Investor Roadshow 30 August 2022
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of information about the Group’s activities For personal use only current at the date of the presentation, 30 August 2022. It is provided in summary form and does not purport to be complete. It should be read in conjunction with th
Slide 3: Strong Corporate Governance adds to Sims competitive advantage
For personal use only Strong Corporate Governance, adds to Sims competitive advantage 3
Slide 4: Governance
Governance For personal use only Sims is a long-established organisation, having been in operation for 104 years The company has grown primarily through M&A in the last 30 years: • 1988 - acquired LMC in California • 1992 - formed JV with Pacific Steel Industries creating Sims Pacific Metals Limited
Slide 5: Governance
Governance Sims Board is responsible for establishing sound and transparent corporate governance culture For personal use only Sims Board Is fundamental to fostering investor confidence and driving higher value for shareholders through prudent risk management and a culture that encourages ethical
Slide 6: Overview of Sims Limited
For personal use only Overview of Sims Limited 6
Slide 7: Sims Limited: The group at a glance
Sims Limited For personal use only The group at glance • Publicly listed Australian Company (ASX: SGM; OTC: SMSMY) • Market capitalisation approximately A$3.03 billion on 25 August 2022 • FY22 Total sales volumes of 8,106 million tonnes • FY22 Revenue A$9,264.4million • FY22 Underlying EBIT A$756.1
Slide 8: Our Purpose
Our Purpose For personal use only Create a world without waste to preserve our planet
Slide 9: FY22 Segment Overview
FY22 Segment Overview For personal use only FY22 % of Group EBIT1 Metal Businesses 73 Sims Lifecycle Services 2 SA Recycling 40 Global Trading (3) Corporate & Other (12) Total 100% 1Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges, and internal rechar
Slide 10: Integrated Business Model
Integrated Business Model We provide solutions that solve multi-decade challenges related to decarbonisation and circular economy For personal use only Sims Lifecycle Metal Recycling Municipal Recycling Resource Renewal Renewable Energy Services Buys, processes and sells Provides solutions to ferrou
Slide 11: Global Footprint
Global Footprint Extensive network of facilities enables global sourcing of infeed and UK Metal diversity of sales outlets 28 For personal use only Facilities 4 Shredders Australia , New Zealand & PNG Metal 51 8 North America Metal 57 12 SA Recycling 123 23 Footprint as of 29 March 2022 11
Slide 12: Market Leadership Position
Market Leadership Position We are the world’s largest We are #1 and #2 in the markets we operate public recycler of metals by volume For personal use only #1 #2 North America UK Metal Metal & SAR New #1 Zealand Australia Metal Metal #1 Source: Sims’ estimates 12
Slide 13: 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 14: 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 15: Sustainability as a Strategy for Growth
Sustainability as a Strategy for Growth Drives the FY25 social, environmental and economic strategic targets1 For personal use only Operate Responsibly Metals Close the Loop Safety 9.6 m tonnes of ferrous volumes in favourable SRR Diversity Total recordable injury geographies Process 120,000 tonnes
Slide 16: 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 17: 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 18: Full year ended June 2022 delivered a very strong result
For personal use only Full year ended 30 June 2022 Delivered a very strong result 18
Slide 19: Summary of Financial Outcomes
Summary of Financial Outcomes High-quality result - materially increased sales volume, revenue, and profit. Significantly higher cash flow distribution while maintaining a strong balance sheet. For personal use only Sales Revenue Sales Volumes $ 9,264.4 million 8,106 million tonnes FY21 FY21 12.2% 5
Slide 20: Business Segment Financial Performance
Business Segment Financial Performance Near doubling of year-on-year EBIT. Improved volumes driven by NAM and SA Recycling For personal use only Trading Margin FY21 FY22 Change Sales volumes FY21 FY22 Change (‘000 tonnes) Trading Margin – Metals (A$m) 1,071.5 1,539.1 43.6% Metal Business2 7,225 8,10
Slide 21: Sustainability
Sustainability Strengthened ESG credentials For personal use only Ranked 11th in the Global 100 list Received maximum AAA of most sustainable companies, rating ranked for the 8th time Ranked #6 in Sustainability Included in Financial Magazine Top 100 companies in Times/Nikkei Asia inaugural sustaina
Slide 22: Appendix
For personal use only Appendix 22
Slide 23: Employee Health & Safety
Employee Health & Safety Strong safety performance with the lowest ever Total Recordable Injury Frequency Rate For personal use only 160 48% • Implementation of the Critical Risk Management 140 reduction in strategy delivered sequential improvements since FY19 120 Recordable Injuries • Proactive lea
Slide 24: 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 25: Driving Accountability and Transparency
Driving Accountability and Transparency 2025 and beyond goals defined to measure success OPERATE RESPONSIBLY CLOSE THE LOOP For personal use only 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