Slide 1: Financial Results Half year ended 31 December 2023
Financial Results Half year ended 31 December 2023 Creating Value by Providing a Pathway to Decarbonisation for our Customers 20 February 2024
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 20 February 2024. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Group’s periodic r
Slide 3: Agenda
Agenda Results Overview & Strategic Progress Stephen Mikkelsen, Group CEO & Managing Director Financial Results Warrick Ranson, Group CFO Outlook Stephen Mikkelsen, Group CEO & Managing Director 3
Slide 4: Results Overview
Results Overview Stephen Mikkelsen, Group CEO & Managing Director 4
Slide 5: HY24 Financial Results Overview
HY24 Financial Results Overview Underlying EBIT decreased due to lower Metal trading margin and inflationary pressures HY24 Change • Sales volumes up 0.3% Sales Revenue (A$m) 4,114.4 7.4 % • Sales revenue of $4,114.4 million reflecting non- Sims Trading Margin – Metal (A$m) 653.4 (2.6) % ferrous gro
Slide 6: Sustainability Leader
Sustainability Leader Responsible operations and innovation • Named most sustainable company in the world in Corporate Knights’ Global 100 Ranking CO₂ emissions by Delivering customer-centric innovation for decarbonisation production type¹ • Premium scrap metal for high-quality, low CO2 metals 18 CO
Slide 7: Employee Health & Safety
Employee Health & Safety Excellent safety performance continued in HY24 Total Recordable Injury 23% reduction in • Recordable injury rate, including Baltimore Frequency Rate (TRIFR) 1 TRIFR and Northeast Metal Traders acquisitions, at 1.5 1.29 FY20 VS HY24 all-time low, meeting world-class standard
Slide 8: Market
Market Challenging seaborne trade; global short supply of scrap metal but strong demand in the US Global Chinese Steel Exports (Mt)¹ Steel Production² ⁴ US Metal Spread Outpaced Turkey³ Markets 100 90.3 +2.3% 104 750 75.4 -6.6% Short ferrous scrap 69.3 66.9 67.3 100 600 64.3 supply - ANZ and UK $USD
Slide 9: Price Trends: Metals & Freight
Price Trends: Metals & Freight Consistent ferrous prices, higher zorba and freight prices 1. Ferrous¹ - Similar to HY23 2 2.Freight - Geopolitical Impact 500 880 Turkey HMS 80:20 Price Baltic Handysize Index 450 770 (US$ / tonne) 400 660 HY24 average 550 350 HY23 average 440 300 330 Jul-22 Oct-22 Ja
Slide 10: HY24 Metal Volumes
HY24 Metal Volumes Market conditions favoured domestic sales, at-source supply and unprocessed volumes 1 2 1 Source Destination Composition NAM SAR ANZ UK Other Sources Dealers Domestic Export Unprocessed Processed 1 Ferrous Intake Volumes 2 Ferrous Sales Volumes 10
Slide 11: Strategic Progress
Strategic Progress 11
Slide 12: Strategy Progress
Strategy Progress FY22-23 FY23-FY24 FY25-FY26 Metal Metal Metal Divestment NAM- Market realignment Expansion of domestic channels Recycle capital- LMS, Sims Energy, SMR, UK- Strategic review Targeted acquisitions Surplus land ANZ- Drive competitive advantage Continue to recycle capital Acquisitions
Slide 13: Current Focus
Current Focus Strategy execution gained momentum towards end of Q2 FY24 1H24 Progress 2H24 Priorities • Rebalance of sales portfolio commenced • Execute on cost-out targets • Business simplification – operations and • Optimise existing network organisation • Increase unprocessed scrap supply • Exten
Slide 14: Cost Reduction Program
Cost Reduction Program Reducing costs by $70m - $90m for sustained financial strength through the cycle Build a lean and growth-ready organisation Streamline processes, optimise workforce, automation and technology Prioritising resources, safeguarding our capability to grow 1H24 2H24 FY25 Annualised
Slide 15: UK Metal Strategic Review Update
UK Metal Strategic Review Update • Market transitioning to domestic metal recycling consumption driven by EAF announcements • UK Metal is well positioned to capitalise on this shift • Strategic review to determine the best value-creation path. Potential for: • Sale • JV/Partnership • Retain and rest
Slide 16: SLS Strategy Update
SLS Strategy Update Mid-term 1H24 Progress Tailwinds • Deliver on customer objectives: • Continued growth in repurposed units, 5 • Quality focus million per year run rate • Customer diversification • Artificial intelligence • 1 2 Improved pricing of DRAMs and DIMMs • Driving new market technology •
Slide 17: Financial Results
Financial Results Warrick Ranson, Group CFO 17
Slide 18: Group Financial Performance
Group Financial Performance A$m HY24 HY23 Change • Statutory results included gain on sale of $170.4 million Statutory EBITDA 284.7 270.2 5.4% (net of disposal costs) relating to the disposal of interest Statutory EBIT 163.8 163.4 0.2% in LMS Statutory NPAT 65.8 101.0 (34.9)% • Total Underlying Oper
Slide 19: Business Segment Financial Performance
Business Segment Financial Performance Sales volumes Underlying EBIT¹ (A$m) HY24 HY23 Change HY24 HY23 Change (‘000 tonnes) Metal Segments² 85.9 136.4 (37.0)% Metal Segments² 5,127 5,093 0.7% Global Trading Operations (14.0) (11.8) 18.6% Global Trading Operations 559 578 (3.3)% Sims Lifecycle Servic
Slide 20: US Metal Segments
US Metal Segments NAM SA Recycling A$m HY24 HY23 Change A$m HY24 HY23 Change Proprietary Sales Volumes Proprietary Sales Volumes 2,470 2,451 0.8% 2,431 2,196 10.7% (‘000 tonnes) (‘000 tonnes) Sales Revenue 2,287.0 1,959.7 16.7% Sales Revenue 2,109.4 1,849.0 14.1% Trading Margin 706.9 625.2 13.1% Tra
Slide 21: Australia & New Zealand Metal
Australia & New Zealand Metal Trading margin improved. Costs well managed in inflationary environment A$m HY24 HY23 Change • Trading Margin up 2.4% reflecting sales volumes increase offset by lower trading margin percentage Proprietary Sales Volumes (‘000 tonnes) 878 800 9.8% from intense market com
Slide 22: UK Metal
UK Metal EBIT loss driven by challenging market conditions and tight scrap supply A$m HY24 HY23 Change • Against a backdrop of tight metal scrap supply, Proprietary Sales Volumes were down 24.3% Proprietary Sales Volumes 563 744 (24.3)% • Trading margin up 2.2% or down 6.8% at constant (‘000 tonnes)
Slide 23: Sims Lifecycle Services
Sims Lifecycle Services Repurposed unit growth and market share gains despite supply chain constraints A$m HY24 HY23 Change • Repurposed units up 38.9%, due to increased existing customer activity and new customers Repurposed units (million) 2.5 1.8 38.9% • Easing headwinds with hyperscaler activity
Slide 24: Global Trading Operations, Corporate & Other
Global Trading Operations, Corporate & Other Global Trading Operations HY24 HY23 Change Global Trading Operations (A$m) • External and SA Recycling brokerage less the costs Underlying EBIT 1 (14.0) (11.8) 18.6% of running the global trading operations • Underlying EBIT loss up 18.6% due to foreign C
Slide 25: Operating Costs Including D&A
Operating Costs Including D&A Million $AUD 4.0 6.3 4.0 793.8 22.6 (11.8) 28.8 7.8 760.9 18.8 750.7 (18.6) 731.9 1H FY23 Translational Rebased H1 Volume Processing Adjusted Depreciation People Waste Project FX (gains)/ Other 1H FY24 FX FY23 growth levy Cost Base costs charges costs losses 25
Slide 26: Net Cash Movement
Net Cash Movement Funding facilities renewed through to 2026 Million $AUD 259.1 101.8 (340.0) (135.5) (55.0) (93.1) 13.9 (44.1) (40.6) (333.5) Net Cash 1 Jul Net Operating LMS Baltimore Scrap Alumisource Capex¹ Leases Dividend Other Net Cash 31 Dec 23 Cashflow (payment of 23 contingent consideration
Slide 27: Capital Expenditure
Capital Expenditure Focused deployment of capital; growth investments of $336 million Capital Expenditure • Sustaining Capex of $80.2 million, including investments in improving product quality 300.0 • $12.9 million of Growth Capex for Alumisource 250.0 200.0 • Sustaining and environmental capex for
Slide 28: Outlook
Outlook Stephen Mikkelsen, Group CEO & Managing Director 28
Slide 29: Outlook
Outlook • Underlying EBIT improvement in 2H FY24 • Cost reduction initiatives expected to deliver $25 million in savings • Increased domestic sales channels in the USA and uplifted unprocessed material • USA demand for scrap to remain robust, supporting prices • ANZ Metal and SA Recycling to continu
Slide 30: Questions & Answers
30 O) .) 72) c 2 _— ”N VO) =) ©} Answers
Slide 31: Appendix
Appendix 31
Slide 32: Product Segment Volumes
Product Segment Volumes Intake Volumes (‘000 tonnes) HY24 HY23 Change Intake Volumes (‘000 tonnes) HY24 HY23 Change North America Metal 2,474 2,323 6.5 % Ferrous 3,678 3,561 3.3 % ANZ Metal 863 776 11.2 % Non-Ferrous Retail 256 215 19.1 % UK Metal 597 677 (11.8) % Brokerage 564 607 (7.1) % Total Pro
Slide 33: Product Segment Volumes
Product Segment Volumes Average Sims Metal Sales Price HY24 HY23 Change Ferrous 593.57 575.55 3.1 % Non-Ferrous Shredder Recovery 2,613.45 2,214.17 18.0 % Non-Ferrous Retail 4,784.48 4,107.58 16.5 % Total Average Sims Metal Sales Price 909.78 814.27 11.7 % Sims Metal Sales Revenue ($m)¹ HY24 HY23 Ch
Slide 34: Group Profit & Loss
Group Profit & Loss A$m HY24 HY23 Chg % FY23 FY22 FY21 FY20 FY19 Sales Revenue 4,114.4 3,831.2 7.4 % 8,061.1 9,264.4 5,916.3 4,908.5 6,640.0 Statutory EBITDA 284.7 270.2 5.4 % 515.7 976.4 (507.3) 35.7 358.1 Underlying EBITDA 134.3 200.1 (32.9)% 474.9 958.9 579.9 144.9 363.4 Statutory EBIT 163.8 163.
Slide 35: North America Metal
North America Metal A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue 2,109.4 1,849.0 14.1% 3,924.6 4,453.4 2,669.9 2,061.7 2,725.6 Trading Margin ($) 361.1 385.4 (6.3)% 748.9 919.9 591.7 481.2 609.0 Trading Margin (%) 17.1% 20.8% (3.7)ppts 19.1% 20.7% 22.2% 23.3% 22.3% Statutory EBITDA 36
Slide 36: Investment in SA Recycling
Investment in SA Recycling A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 1 Statutory EBIT 59.6 65.9 (9.6)% 180.2 302.5 157.8 12.1 41.0 1 Underlying EBIT 59.6 49.1 21.4 % 163.5 298.5 157.8 12.1 35.9 Investment in joint venture 578.6 506.2 14.3 % 584.8 512.4 345.8 277.5 211.1 Intake Volumes (000's) ²
Slide 37: Australia & New Zealand Metal
Australia & New Zealand Metal A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue 834.3 732.4 13.9% 1,563.7 1,694.4 1,098.9 924.8 1,203.7 Trading Margin ($) 194.2 189.6 2.4% 420.2 455.2 337.5 286.3 344.8 Trading Margin (%) 23.3% 25.9% (2.6)ppts 26.9% 26.9% 30.7% 31.0% 28.6% Statutory EBITDA
Slide 38: UK Metal
UK Metal A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue 608.8 700.6 (13.1)% 1,423.4 1,594.9 993.3 869.8 1,186.9 Trading Margin ($) 98.1 96.0 2.2% 209.8 250.4 195.6 128.5 196.8 Trading Margin (%) 16.1% 13.7% 2.4ppts 14.7% 15.7% 19.7% 14.8% 16.6% Statutory EBITDA (13.0) (1.4) 828.6% 15.4
Slide 39: Global Trading Operations
Global Trading Operations A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue 402.1 381.8 5.3 % 824.0 1,128.5 745.8 550.8 690.9 Statutory EBITDA 3.2 (8.7) (136.8)% 12.1 55.8 21.9 8.2 23.3 Underlying EBITDA (13.5) (11.2) 20.5 % (23.1) (19.2) (16.4) (13.9) (14.9) Depreciation 0.5 0.6 (16.7)% 1
Slide 40: Sims Lifecycle Services
Sims Lifecycle Services A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue 159.8 167.4 (4.5)% 325.4 327.0 318.9 408.0 746.5 Statutory EBITDA 12.1 1.1 1000.0 % 0.1 15.3 21.2 9.9 26.4 Underlying EBITDA 14.4 12.2 18.0 % 18.8 25.9 31.1 28.2 34.5 Depreciation 5.0 4.8 4.2 % 9.7 9.6 9.3 11.3 8.5 A
Slide 41: Corporate & Other
Corporate & Other A$m HY24 HY23 Change FY23 FY22 FY21 FY20 FY19 Sales Revenue - - -% - 66.2 89.5 93.4 86.4 Statutory EBITDA 124.9 30.7 306.8 % (14.3) (35.6) (89.6) (11.2) (2.7) Underlying EBITDA (65.1) (37.0) 75.9 % (97.0) (77.6) (46.9) (35.9) (32.1) Depreciation 1.6 1.6 -% 3.1 10.9 15.0 15.6 10.9 A
Slide 42: Constant Currency Summary
Constant Currency Summary A$m HY24 HY24 HY23 Change Actual Constant Currency Actual NAM Sales revenue 2,109.4 2,053.7 1,849.0 11.1% Trading Margin 361.1 351.5 385.4 (8.8)% Net Operating Costs (296.7) (286.7) (287.6) (0.3)% Underlying EBIT (8.8) (6.5) 37.8 (117.2)% UK Sales revenue 608.8 555.7 700.6
Slide 43: Financial Summary – Group
Financial Summary – Group A$m HY24 HY23 FY23 FY22 FY21 FY20 FY19 Group Results Sales Revenue 4,114.4 3,831.2 8,061.1 9,264.4 5,916.3 4,908.5 6,640.0 Underlying EBITDA 134.3 200.1 474.9 958.9 579.9 144.9 363.4 Underlying EBIT 13.4 93.3 252.2 756.1 386.6 (57.9) 230.3 Dividend (cents per share) Nil 14.
Slide 44: Financial Summary – Segment
Financial Summary – Segment A$m HY24 HY23 FY23 FY22 FY21 FY20 FY19 Sales Revenue North America Metal 2,109.4 1,849.0 3,924.6 4,453.4 2,669.9 2,061.7 2,725.6 ANZ Metal 834.3 732.4 1,563.7 1,694.4 1,098.9 924.8 1,203.7 UK Metal 608.8 700.6 1,423.4 1,594.9 993.3 869.8 1,186.9 Sims Lifecycle Services 15
Slide 45: Financial Summary – Segment (cont.)
Financial Summary – Segment (cont.) A$m HY24 HY23 FY23 FY22 FY21 FY20 FY19 1 Proprietary sales tonnes (‘000) North America Metal 2,470 2,451 5,063 5,081 4,318 4,042 4,887 ANZ Metal 878 800 1,510 1,532 1,537 1,428 1,763 UK Metal 563 744 1,399 1,493 1,370 1,221 1,602 Total 3,911 3,995 7,972 8,106 7,22
Slide 46: Financial Summary – Product
Financial Summary – Product A$m HY24 HY23 FY23 FY22 FY21 FY20 FY19 Sales tonnes (‘000)¹ Ferrous Trading 3,553 3,657 7,322 7,445 6,692 6,141 7,622 Non-Ferrous Shredder Recovery 119 127 229 219 178 160 195 Non-Ferrous 239 211 454 442 355 390 435 Brokerage 559 578 1,427 1,601 1,368 1,463 1,551 Total 4,
Slide 47: Significant Items
Significant Items A$m HY24 HY23 ERP software implementation costs - 5.5 Gain on sale of investment - (49.2) Gain on sale of assets classified as held for sale (178.9) - Gain on asset dispositions - (36.5) Restructuring and redundancies 4.6 6.8 SA Recycling amortisation reversal - (16.8) Acquisition
Slide 48: Net Cash Position
Net Cash Position A$m HY24 HY23 Opening Net Cash (135.5) (102.7) Underlying net profit (16.2) 53.0 Depreciation & amortisation 120.9 106.8 Joint venture non-cash income, net of dividends (4.8) 2.5 Change in working capital 51.3 101.2 Movement in tax balance (46.6) (31.7) ERP current year spend - (5.