Slide 1: Financial Results Full year ended 30 June 2015
For personal use only Financial Results Full year ended 30 June 2015 Galdino Claro, Group CEO Fred Knechtel, Group CFO 21 August 2015
Slide 2: Financial Results
Financial Results For personal use only Sales Revenue Sales Tonnes $6,311m 10.5Mt Underlying EBITDA1 Net Cash $263m $314m Underlying EBIT1 Statutory EBIT $142m $145m Underlying NPAT1 Statutory NPAT $102m $110m Underlying EPS1 (diluted) FY15 Dividends 49.2c 29.0c 16.0c (interim) & 13.0c (final) Highe
Slide 3: Strong growth from Europe Metals and E-Recycling
Strong growth from Europe Metals and E-Recycling For personal use only Underlying EBIT of $142m 160 6 Within North America Metals, EBIT in the 38 West Coast and East Coast Regions 140 improved by $16 million during FY15 8 -9 0 120 Significant earnings improvement in the East and West was offset by e
Slide 4: Strategic Plan Progress
Strategic Plan Progress For personal use only Streamline Optimise Grow FY15 Progress Initial Streamline completed: Established Project Acquired three small Closure of e-recycling Management Office (PMO) to businesses in North America operations in UK & Canada drive strategy implementation & ANZ Meta
Slide 5: Earnings Growth & Target
Earnings Growth & Target For personal use only >11% Return on 350 Capital 10% 300 Underlying EBIT (A$m) 250 8% Grow Return on Capital 200 5.5% Optimise 6% 4.6% 321 150 Streamline 4% 100 2.3% 142 2% 119 50 67 0 1 0% FY13 FY14 FY15 FY18 Underlying EBIT Return Returnonon Series2 Return Capital onCapita
Slide 6: Financial & Segment Performance
For personal use only Financial & Segment Performance Fred Knechtel, Group CFO 6
Slide 7: Internal initiatives driving higher margins
Internal initiatives driving higher margins For personal use only 180 EBIT Bridge 160 6 38 2 140 -15 -111 120 28 A$ million 100 75 $44 million total benefit across the 80 global electronics recycling operations 139 142 60 119 40 $103 million benefit from internal 20 initiatives across the global met
Slide 8: Gross Margin Management
Gross Margin Management For personal use only Internal initiatives have driven gross Gross Margin Trend1 margin improvement of $47/t since the start of the strategic plan 700 Start of 5 year plan 150 650 140 A$ margin / tonne Margins expanded through: 600 130 A$ / sales tonne 120 Raw material source
Slide 9: Ferrous prices impacting intake volumes
Ferrous prices impacting intake volumes For personal use only ANZ ferrous volumes Long-term a relationship exists kg/ per capita US$/t between ferrous scrap intake and 180 600 160 ferrous scrap prices (inflation adjusted) 140 500 120 400 100 300 80 Across the US, UK, and Australia & 60 40 200 100 Ne
Slide 10: Earnings by Quarter
Earnings by Quarter For personal use only FY15 underlying EBIT by Quarter 60 FY15 earnings negatively impacted by 3Q commodity price decline and severe weather in North America 50 1. During 3Q the 24% drop in ferrous scrap 40 prices and the severe winter weather, led 2 to reduced group volumes of 18
Slide 11: North America Metals
North America Metals For personal use only A$m FY15 FY14 Chg % Performance Sales Revenue 3,416.5 3,995.7 (14.5) Improved earnings over the prior year, despite 14% lower sales volume and competitive market conditions Statutory EBITDA 86.7 60.2 44.0 As conditions stabilised in the 4th quarter, earning
Slide 12: Australia & New Zealand Metals
Australia & New Zealand Metals For personal use only A$m FY15 FY14 Chg % Performance Sales Revenue 1,053.3 1,187.8 (11.3) Profitability impacted by falling commodity prices, leading to lower volumes and margin compression Statutory EBITDA 85.0 108.8 (21.9) Lower ferrous prices reduced intake flow fr
Slide 13: Europe Metals
Europe Metals For personal use only A$m FY15 FY14 Chg % Performance Sales Revenue 1,036.6 1,063.5 (2.5) Considerable lift in underlying earnings due to higher gross margins and lower operating expenses Statutory EBITDA 38.0 29.0 31.0 Gross margins boosted by improved metallic yields across the regio
Slide 14: Global E-Recycling
Global E-Recycling For personal use only A$m FY15 FY14 Chg % Performance Consolidated Operations1 Underlying EBIT and margins the highest in three years, driven by streamline and optimisation actions Underlying EBITDA 49.5 20.2 145.0 Reduced statutory losses from discontinued Underlying EBIT 38.0 0.
Slide 15: Cash Flows
Cash Flows For personal use only 450 Cash Flow Bridge (A$m) 127 400 298 350 19 -48 1 300 16 -53 A$ million 250 -6 -95 200 150 316 296 100 50 57 0 Cash and cash Net Cash Capital Proceeds from Payments for Sale of CTG Net Dividends Paid Other (net) Effects of Cash and cash equivalents inflows from Exp
Slide 16: Free Cash Flow and Net Cash
Free Cash Flow and Net Cash For personal use only Free Cash Flow1 250 203 Strong operational cash flow 200 148 146 A$ million 150 129 Consistent positive free cash flow after 100 capex 50 0 FY12 FY13 FY14 FY15 Net Cash2 400 314 Net cash balance sheet position due to 300 strength of operational cash
Slide 17: Capital Management
Capital Management For personal use only Net cash of $314 million as of 30 June •Ongoing maintenance to sustain high 2015 Sustaining performing operations •Renewal of obsolete technology and Capex equipment •Maintain and improve environmental and Final dividend of 13 cents, fully franked safety stan
Slide 18: Return on Capital Focus
Return on Capital Focus For personal use only Return on Capital Trend Net Operating Profit After Tax (NOPAT) Improve gross margin per tonne 3,500 7% Start of 5 year plan Increase tax structure efficiency 3,000 6% Optimise operating assets & Return on Capital variablisation of fixed cost base 2,500 5
Slide 19: Summary & Outlook
For personal use only Summary & Outlook Galdino Claro, Group CEO 19
Slide 20: Summary & Outlook
Summary & Outlook For personal use only Continued underlying NPAT growth in FY15, with underlying EBIT now more than double since the start of the five year strategic plan FY18 earnings targets reviewed and reconfirmed to be achievable in full Near-term external market conditions still challenging d
Slide 21: Appendix
For personal use only Appendix 21
Slide 22: FY15 income tax expense considerations
FY15 income tax expense considerations For personal use only A$ million Profit Before Tax Income Tax Effective Tax % Statutory Result 137.0 27.2 19.9% Reconciling items: Utilisation of previously unrecognised losses 8.0 Other one-time tax benefits 4.2 Underlying Results 137.0 39.4 28.8% 22
Slide 23: Financial Summary - Group
Financial Summary - Group For personal use only A$ million FY10 FY11 FY12 FY13 FY14 FY151 Group Results Sales Revenue 7,453 8,847 9,036 7,193 7,129 6,311 Underlying EBITDA 379 414 253 190 242 263 Underlying EBIT 235 283 123 67 119 142 Underlying NPAT 127 182 74 17 69 102 Underlying EPS (cents) 65 88
Slide 24: Financial Summary – Segment
Financial Summary – Segment For personal use only A$ million FY10 FY11 FY12 FY13 FY14 FY151 Sales Revenue North America Metals 4,834 5,782 5,773 4,256 3,996 3,417 ANZ Metals 1,126 1,300 1,190 1,047 1,188 1,053 Europe Metals 783 954 1,056 935 1,063 1,037 Global E-Recycling 622 750 982 937 868 795 Una
Slide 25: Financial Summary – Segment (cont.)
Financial Summary – Segment (cont.) For personal use only A$ million FY10 FY11 FY12 FY13 FY14 FY15 Sales tonnes (‘000) North America Metals 9,906 10,964 11,080 9,377 8,152 7,018 ANZ Metals 1,578 1,764 1,765 1,764 2,054 1,874 Europe Metals 1,394 1,466 1,651 1,645 1,609 1,589 Total 12,878 14,194 14,49
Slide 26: Financial Summary – Segment (cont.)
Financial Summary – Segment (cont.) For personal use only A$ million FY10 FY11 FY12 FY13 FY14 FY151 Sales tonnes (‘000) Ferrous Trading 9,068 10,115 10,320 9,396 9,331 8,325 Ferrous Brokerage 3,264 3,518 3,597 2,840 1,918 1,617 Non Ferrous 565 571 586 550 566 539 Total 12,897 14,204 14,503 12,786 11
Slide 27: 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, 20 August 2015. It is provided in summary form and does not purport to be complete. It should be read in conjunction with th