Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — Corporate Update (May 2014)
42 slides from Sims's corporate update, May 1, 2014
Slide 1: Analyst and Investor Site Tour – North America Metals
Exhibit 99.1 Claremont Terminal, Jersey City – Metals Recycling Sims Metal Management Analyst and Investor Site Tour North America Metals – New England & East Regions April 30 & May 1, 2014
Slide 2: Disclaimer
Disclaimer financial “outlook,” actual discussed Company’s differ release. qualified forward-looking materially effects All condition, inand “estimate,” Cautionary subsequent Annual their of identified our from statements entirety Report results plans those “forecast,” Statements written inby and of
Slide 3: Agenda
Agenda Sims Metal Management North America Overview Economic Update & Key Earnings Drivers US Metals Recycling Overview & Competitive Landscape Global Markets & Trading Summary
Slide 4: Sims Metal Management North America overview
NorthCity (A$m) York America North municipal America Reporting recycling Metals Segment export operations Sims docks Metal 4,262 across Management North 20 states America 273 North Metals 50%America JVNorth withNorth America AdamsAmerica Steel SRSSANorth Recycling America ~50Metals facilities Recycl
Slide 5: North America Metals structure
North America NAM Central NAM Metals South Bob IL, Kelman IN, MI President and OHNorth TN, AR, America and MS Metals NAMNAM Southwest East NAM Bulk New Stainless England TX and NY,OK NJ, NJ, andIL, PAand CT,AR RI, Ferrous and MATrading NAM Southeast NYC Municipal NAM West North VAAmerica and NCRecyc
Slide 6: North America footprint (FY13)
North America (FY13) (underlying) across North TN Sales A$37m America Metals Revenue SAR (including Footprint JV A$4,535m Shredder WA JV operations) ME AZSales VT OKVolumes MT SC1)ND NM North MN AR 9.38Mt America EBITDA NH SAR NY total OR JV (statutory) MA Yard including ID Assets WI A$46m SRS, SD A
Slide 7: Development of North America market
Development market California Sep located FY00&FY01 Dec-12: through in AZ, East FY02 of the recycling Coast the North US, FY03 metals ofparticularly America the FY04 operations recycling USFY05 California Metals inwith toUS FY06 create 1998: with Metal Aerospace FY07 SA Entered operations Management
Slide 8: North America currently the smallest earnings contributor
Currently the Australasia Europe smallest North earnings America contributor is currently EBITtheby smallest Regionearnings EBIT bycontributor, Region FY08 andHY14 represents 10% 13% the largest 17% Peak upside to potential present earnings 29% 58% 73% North America Australasia Europe North America
Slide 9: Agenda
Agenda Sims Metal Management North America Overview Economic Update & Key Earnings Drivers US Metals Recycling Overview & Competitive Landscape Global Markets & Trading Summary
Slide 10: Economic update: tonnage recovery
Economic tonnage Recovery vehicles recovering, has now to Update with improved, long-term overvehicle Continued 11 years auto but scrapping mix old, &weak appliance isuppoor still 21% metal Vehicle lagging since scrapping scrapping 2008 &USAppliance rates new Average rateshome would andscrap age poo
Slide 11: Total scrap ferrous processed
Total scrapferrous processed suppressing metal auto &generation scrap 60 60% volumes appliance still Ferrous low Total disposal scrap US ferrous rates landfilled 40scrap 40% 100generation 20 100% 20%Recycling 0 0% Higher Source: rate recycling USGS, (RHS)rates, The SRI,mix as Sims a of percentage Me
Slide 12: Material flows and consumer confidence
Material flows confidence suppressing for shredding auto & inadequate appliance35% disposal Autovolumes & Appliance Source: as % Polk, of total AHAM,scrapUSGS, Consumer Conference Confidence Board, (RHS) Sims160 Metal 140Management 30% 120 100 25% 80 20% 60 40 15% 20 10% 0 Historically low consumer
Slide 13: Consumer confidence and scrap reservoir
Consumer Continued scrap reservoir scrap low Return consumer generation to long-term confidence near 15 auto yr60lows High & appliance Vehicles unemployment, & perAppliances capitalow scrapping labour 2008-09 participation, 50recession would boost had andshredder significant weak mortgage feedstock
Slide 14: Low scrapping of vehicles
Low scrapping vehicles consultant Research 40% CCC, US lifting as usea leading Over average 120 #vehicle vehicles millionage vehicles over Rising 11 years over age 11 of % years vehicles vehicles old130 over 80 74% 55% 11 years of 120allNumber (RHS) vehicles cause ofscrapped vehicles of higher are o
Slide 15: US household appliances aging
US household appliances Appliance Magazine Dishwashers appliances9also yearsaging 4.9 Dryers Average13age years of Household 4.8 FreezersAppliances 11 years Range 5.5 5.4(electric) Average13ageyears of household 4.7 Refrigerators appliances 13 now yearsthe 4.6highest Washersin 10 70 years years Wate
Slide 16: Non-residential fixed assets aging
As well Private 12.5 23 non-residential 6.0 as non-residential 12.0 5.5 11.5 fixed 22 fixed 16 asset years assets aging 5.0 Average had 11.02522age also 4.5ofincreased 10.5 Government 21 15since 4.0Fixed 10.0 2008,Power Assets as capital Highways Government 24 18 and spending fixed streets asset and
Slide 17: Improving indicators for scrapping
Improving follows Scrapping Source: scrapping Sales Board,and BEA, at US Vehicle historically aUS leading Census lag Polk Appliance 60Scrapping Source: 40 indicators Improving follows to new Shipments USUS vehicle encouraging atCensus leading Appliance a lag18 sales 60 indicators 25,000 40Consumer 2
Slide 18: Agenda
Agenda Sims Metal Management North America Overview Economic Update & Key Earnings Drivers US Metals Recycling Overview & Competitive Landscape Global Markets & Trading Summary
Slide 19: World's largest source of scrap supply
World’sscrap ferrous imports Source: largest Million source USGS,40 ofBIR, 30 scrap 300Mt *excludes supply 20 10 US home 5.5 processed United scrap States scrap by 2.0commodity Rest Of World Global 0 Ferrous ferrous(Steel) scrap processed Aluminium80Copper 2012 2012 Source: 70.0USGS, 70 70Mt *calcul
Slide 20: US metals recycling industry footprint
US metals 7% Data DJJ 5%recycling Ferrous Processing industry footprint & Trading US Metals Metalico Recycling CMC 4%Industry 1% Processors Footprint 3% US Alter Metals PSCRecycling Metals Trading Market2% Share EMR Sims (USA) North 4%America 2% Source: 14%ISRI, Steel 2013 Dynamics Source: / Omnisou
Slide 21: Key sources of ferrous scrap supply
Ferrous Other Construction Metal Steel Management sources Industrial Other of supply light Scrap iron Key Other 5-10% sources 1-3% & of Railroad Other ferrous light rails scrap Total 1% supply Demolition ~20%Steel ironCans Obsolete Passenger Post Material Industrial Steel cans %%Construction 1% Stai
Slide 22: Ferrous scrap processing methods
Ferrous #1 Railroad and #2 processing rails Bundles Plate Obsolete and processed Structural Material grades Steel Passenger cans Unprocessed Baling, vehicles Shearing, Supply MajorProcessing Stainless appliances steel Method Shredding OtherProcessed Densifying, Shredded Grades Scrap and Other Post O
Slide 23: Key ferrous scrap grades and prices
Processed Plate & Structural ferrous grades 200 7%and 100prices Bundles Key&ferrous Busheling scrap11% grades 0 HMS Ferrous 1&2scrap 27%prices #1 Busheling—US % of production Midwest 600 US$/t Shredded Stainless Scrap—US Other 14% Midwest 500 Steel #1 HMS—US 2% Turnings Midwest & Shredded Source: 40
Slide 24: Industry shredding capacity
Industry shredding Capacity YoY Changecapacity (RHS)slowly Shredder declining capacity 60 rationalisation Shredding capacity just beginning year-on-year 1) Shredding change 20% capacity Million ofgross unprocessed tonnes per feedstock annum1material in total Source: capacityAMM, 50 15% Recycling 40
Slide 25: Agenda
Agenda Sims Metal Management North America Overview Economic Update & Key Earnings Drivers US Metals Recycling Overview & Competitive Landscape Global Markets & Trading Summary
Slide 26: Global trade in ferrous scrap
Global Korea 5.0 5.310.1 trade 5.0 4.8 Australia in6.1 ferrous Leading 2.2scrap United global metal Germany market Globalpositions States Ferrous Belgium Exports across 8.9 Global by3.7 Country India reachGlobal 3.5 andCanada relationships Ferrous Belgium Imports across 8.1by 4.1 largest Country 4.2
Slide 27: Global trading of ferrous scrap
Global trading of ferrous scrap Sims Metal Management Metals Recycling Operations Key Export Market Global Trade Office
Slide 28: Agenda
Agenda Sims Metal Management North America Overview Economic Update & Key Earnings Drivers US Metals Recycling Overview & Competitive Landscape Global Markets & Trading Summary
Slide 29: Summary
Summary earnings auto and declining appliance & appliance contributor, since The sales US 2012 recycling metals improving, Emerging but with recycling rates the but indications would largest still industry low boost upside of Higher has shredder market Low faced consumer material consolidation chall
Slide 30: Johnston, RI – Metals Recycling, New England Region
Johnston, RI – Metals Recycling Sims Metal Management North America Metals—New England Region April 30, 2014
Slide 31: Safety overview
Safety Overview continue involvement to stay intolow 4.5 the despite Safety SHEC 4.0process regional Incident Rec 1.0 rates Freq growthfor Rate and the Lost integrating New Day England Rate new NA based employees Freq3.5 Rate facilities into in order thehave 0.5 to increase consistently culture 0.0
Slide 32: New England Metals Recycling footprint
New England Total Haven Source: catchment and BEANorth Metals area Haven of Recycling over CT, 12 andmillion Footprint 3 feeder people, yards Located and Wholly-owned inGDP the densely of overdeep populated US$680 waterbillion export scrap per generating terminal annum,located North acrossin East, M
Slide 33: Johnston, Rhode Island
Johnston, located equal scrap generation toon a Rhode total majormarket rates Island I-29533 opportunity highway Commenced outside ofoperations roughly Providence 1.7intoDecember RI, 2.0 and million less 2013 tonnes than Operates 50ofmiles ferrous a large from andmega Boston non-ferrous shredder and
Slide 34: Providence, Rhode Island export facility
Providence, well facility Exportas Facility wet withcar Rhode a rail-serviced detox Island Excellent Providence 600fttransport pier and – Fields logistics two-deep Point including water Commenced berths rail access Low operations cost Fields ship inPoint, August loading RI 2013 –capacity Feeder 7.5
Slide 35: North Haven, Connecticut yard and shredder
Northcutters torch Established Haven,Haven, CT–relationships Yard and Connecticut wet & Shredder car detox with Acquired 1.2 US station million steel inOperates 1998 mills tonnes by Total Metals downstream ofcatchment ferrous Management and MRP area non-ferrous of recovery Purchases circa 4.5 metal
Slide 36: Summary
Summary regions terminals ofFocused Expanding Boston MA, on processing providing Providence the andRI, highest exporting and Hartford levels footprint of CT service Strategic for the to our North flexibility customers Americatoand service Metals a zero-harm both business domestic work Situated envir
Slide 37: Claremont Terminal, Jersey City – East Region
Claremont Terminal, Jersey City – Metals Recycling Sims Metal Management North America Metals – East Region May 1, 2014
Slide 38: Safety overview
Safety2011 injury 2010 that Overview pushed 2012 2013 4.5 theSafety RR 2014and Recordable 4.0LTR Maintaining up 1.5 Rate significantly aLost ‘zero Time harm’ from Rate working previous NAM environment Frequency years 1.0Rate The 3.5After region is a core plateauing is value back on for intrack Sims
Slide 39: East Region Metals Recycling footprint
East over in Jersey Region 30 million CityMetals NJ, people, and Recycling Morrisville and a GDP Footprint PA of Network US$1,700 Located ofbillion in 16the feeder densely per annum, yards populated 5 across deep water US the east greater docks coast with Newencompassing export York City capabilitie
Slide 40: Claremont Terminal, Jersey City NJ
Claremont Downstream 23 generation million people Terminal, perMRP annum1 across recovery Jersey Claremont theCity system greater NJTerminal, Strategically New Largest York full Jersey City, service positioned City, Newark-Jersey facility NJ near 1) Based inmain the City on North transport metropoli
Slide 41: Fairless, Morrisville PA
Fairless, network 1.6 to 1.8of Morrisville million 5 feeder tonnes yards PA Acquired ofand ferrous strong inand 2009 dealer non-ferrous Equipped suppliermetal with relationships ageneration large shredder, Total percatchment annum1 shears, Morrisville torch area of cutters, circa PA, 7and million Ya
Slide 42: Summary
Summary NY, area market Newark-Jersey Advanced intelligence Leading downstream market through City NJ, share non-ferrous Sims andinPhiladelphia Metal the densely Management’s recovery PA populated system HighlyGlobal coverage complementary and high Trade scrap fordivision allgenerating eco-system sh