Sims Ltd. · ASX:SGM
Sims — Sims Metal Management — 2010 Global Steel & Mining Conference
27 slides from Sims's conference presentation, Sep 22, 2010
Slide 1: 2010 Global Steel & Mining Conference
For personal use only 2010 Global Steel & Mining Conference September 22, 2010 Sims Metal Management Limited ASX: SGM NYSE: SMS Dan Dienst, Group CEO Rob Larry, Group CFO
Slide 2: Disclaimer
Disclaimer For personal use only This presentation for Sims Metal Management Limited (“Sims” or the “Company”) is designed to provide a high level overview of aspects of the operations of Sims. The material set out in the presentation is current as of September 22, 2010 except where references are m
Slide 3: Presentation Agenda
Presentation Agenda For personal use only • Company overview • Market conditions update as of August 26, 2010 • FY2010 full year results • Strategy & outlook • Summary 3
Slide 4: Company Overview
For personal use only Company Overview Ship Loading – Newport, UK
Slide 5: Company Overview
Company Overview For personal use only • An industry leader and world’s largest listed recycler of both metals and electronics, handling and trading more than 13 million tons of recyclable material in FY2010 Ferrous Metals Non-Ferrous Metals Industrial and Obsolete Grades Specialty Alloys
Slide 6: Global Footprint
Global Footprint For personal use only • Approximately 230 facilities on five continents and 20+ countries • Trade offices or agents in every major scrap importing or exporting country • Market leading positions in North America, Australia, New Zealand, and the United Kingdom • World’s largest elect
Slide 7: Metal Recycling Business
Metal Recycling Business For personal use only • Metal recycling operations on four • Deep water export facilities in continents with more than 30 strategic markets, including: shredders worldwide New York/New Jersey/ Pennsylvania/ Recent investments in advanced non- Connecticut/Los Angeles/San
Slide 8: Sims Recycling Solutions (SRS)
Sims Recycling Solutions (SRS) For personal use only SRS is the world’s largest and only global electronics recycler $657 million in sales in FY2010 Well positioned in European and North American Markets, developing APAC e-recycling business Volumes growing organically through legislation and
Slide 9: Commitment to Sustainability
Commitment to Sustainability For personal use only • One of the greenest companies in the world, committed to reducing energy consumption by diverting raw materials from the waste system • Sims Metal Management was named in the Global 100 Most Sustainable Corporations in the World at the 2010 World
Slide 10: Commitment to a Culture of Safety
Commitment to a Culture of Safety For personal use only • 5,600 of the best employees in the industry striving towards accomplishing our safety goals: to be shoulder to shoulder with the safest manufacturing companies in the world • A moral and business imperative • Dedicated regional and global Saf
Slide 11: Market Conditions Update as of August 26, 2010
For personal use only Market Conditions Update as of August 26, 2010 Claremont Terminal Mega-shedder – Jersey City, New Jersey, USA
Slide 12: Market Conditions Update as of August 26, 2010
Market Conditions Update as of August 26, 2010 For personal use only • Ferrous scrap flows remain weak in NA and EU from a historical context, in part due to uncertain economic conditions and weather, while demand for ferrous remains streaky as steel mills match raw material inventories closely with
Slide 13: Fiscal 2010 Full Year Results
For personal use only Fiscal 2010 Full Year Results Rendering of Sunset Park Material Recycling Facility – Brooklyn, New York, USA
Slide 14: Highlights of Full Year FY2010
Highlights of Full Year FY2010 – June 30, 2010 (Unaudited and in A$) For personal use only • Sales revenue of $7.5 billion down 14% on FY2009 • EBITDA of $353 million up 36% on FY2009 • NPAT of $127 million in FY2010 • Earnings per share of 64 cents in FY2010 (diluted) • Dividends per share of 33 ce
Slide 15: Full Year Financial Overview
Full Year Financial Overview Provided August 27, 2010 for Period Ended June 30, 2010 & 2009 For personal use only FY 2010 FY 2009 Change (%) Sales Revenue ($m) 7,452.6 8,636.2 (13.7) EBITDA ($m)* 352.9 259.0 36.3 Depreciation ($m) 109.1 120.7 (9.6) Amortisation ($m) 34.8 50.1 (30.5) EBIT ($m)* 208.1
Slide 16: North America Regional Results
North America Regional Results For personal use only FY 2010 FY 2009 Change (%) Sales Revenue ($m) $ 5,040.0 $ 6,368.5 (20.9) EBITDA ($m)* $ 178.6 $ 228.1 (21.7) Depreciation (64.4) (74.3) 13.3 EBITA ($m)* $ 114.2 $ 153.8 (25.8) Amortisation of intangibles (32.3) (47.1) 31.4 EBIT ($m)* $ 81.9 $ 106.
Slide 17: Australasia Regional Results
Australasia Regional Results For personal use only FY 2010 FY 2009 Change (%) Sales Revenue ($m) $ 1,221.3 $ 1,158.6 5.4 EBITDA ($m)* $ 102.2 $ 67.5 51.4 Depreciation ($m) (21.0) (20.6) (1.9) EBITA ($m)* $ 81.2 $ 46.9 73.1 Amortisation of intangibles ($m) (0.1) (0.1) - EBIT ($m)* $ 81.1 $ 46.8 73.3
Slide 18: Europe Regional Results
Europe Regional Results For personal use only FY 2010 FY 2009 Change (%) Sales Revenue ($m) $ 1,191.3 $ 1,109.1 7.4 EBITDA ($m) $ 91.9 $ (6.3) 1,558.7 Depreciation ($m) (22.9) (23.8) 3.8 EBITA ($m) $ 69.0 $ (30.1) 329.2 Amortisation of intangibles ($m) (2.4) (2.9) 17.2 EBIT ($m) $ 66.6 $ (33.0) 301.
Slide 19: Strategy & Outlook
For personal use only Strategy & Outlook Sims Recycling Solutions
Slide 20: Strategy & Outlook
Strategy & Outlook For personal use only • Maintain our focus on safety • Develop and implement technology • Pursue industry consolidation in North America • Continue to invest and expand SRS • Perpetuate non-speculative trading practices while at same time utilising information to make “judgement c
Slide 21: Maintaining Our Focus on Safety
Maintaining Our Focus on Safety For personal use only • FY2010 was the safest year in 30 Year on Year Safety Stats Company history FY2010 25 FY2009 • Already one of the safest in the 20 industry – but that’s not good 15 enough 10 5 • Safety has a direct correlation 0 LTI Frequency MTI Frequency LTI+
Slide 22: Develop and Implement Technology
Develop and Implement Technology For personal use only • Solid balance sheet with a net cash position at June 30, 2010 ensuring financial flexibility for technology investments and acquisitions • Sims Metal Management used the GFC period to right size and invest in high ROI projects to maximise effi
Slide 23: Pursue Industry Consolidation in North America
Pursue Industry Consolidation in North America For personal use only • Sims Metal Management and its joint ventures have an unrivaled geographic footprint in North America Major deep-water ports on both the East and West Coast Access to Mississippi River from Midwest and Southern facilities, to
Slide 24: Continue to Invest and Expand Sims Recycling Solutions
Continue to Invest and Expand Sims Recycling Solutions For personal use only • Sims Recycling Solutions is a strong contributor to EBIT Acquired asset management and technology platforms in UK and EU in FY2010 FY2011 acquisition of Wincanton e- recycling assets Great public interest and awaren
Slide 25: Perpetuate Non-Speculative Trading Practices
Perpetuate Non-Speculative Trading Practices and Leveraging Advantage from Core Competencies For personal use only • Sims Metal Management has a core competency that relates to its global geographic diversity - intelligence from our worldwide presence and implementing the best practices globally bac
Slide 26: Summary
Summary For personal use only • Global leader in metal and electronics recycling industry, with the best and the brightest employees in our industry • Committed to safe and sustainable operations • Strong capitalisation and an entrepreneurial discipline in the deployment of capital • Well positioned
Slide 27: Right. Now.
For personal use only Right. Now.
Sims Metal Management — 2010 Global Steel & Mining Conference on 6ix