Slide 1: Financial Results Half-Year Ended 31 December 2024
Financial Results Half-Year Ended 31 December 2024 25 February 2025
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, 25 February 2025. 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: Delivering On Strategy
Delivering On Strategy Create a World without Waste to Preserve our Planet Key Strategic Priorities Repurpose and Recycle Customers Suppliers Operational Innovative & Invest Operating Efficiency - Getting the Business Efficiency Agile Responsibly Model Right • 'Simplify Sims' Key raw material Part o
Slide 6: Price Trends: Metal & Freight
Price Trends: Metal & Freight 2 1. Ferrous¹ - HY25 Lower; 2H25 Early Recovery 2.HMS Asian Export Price - HY25 Sluggish; 2H25 Recovery 500 500 USD/mt USD/mt HY24 Average HY24 Average 400 400 HY25 Average HY25 Average 300 300 Jul-23 Jan-24 Jul-24 Jan-25 Feb-25 Jul-23 Jan-24 Jul-24 Jan-25 Feb-25 3 3 3.
Slide 7: Strong Safety Performance
Strong Safety Performance Leading Indicators Lagging Indicators Lost Time Incident Frequency¹ 98% 95% 96% 56% Improvement Critical EHS Critical EHS Training 0.60 in LTIFR Control Control Modules HY25 vs HY24 Verification Verification 0.38 to Target Quality 0.40 0.29 0.27 Review 0.23 0.23 0.19 0.20 0
Slide 8: HY25 Financial Results Overview
HY25 Financial Results Overview A$m HY25 Change • Sales volumes were flat in HY25 due to challenging Sales Revenue (A$m) 3,646 4 % conditions in ANZ and greater buying at source in NAM Trading Margin – Sims Metal ex GT (A$m) 677 22 % Total Underlying Operating Cost • Sales Revenue of $3,646 million
Slide 9: Operational Highlights
Operational Highlights Unprocessed Scrap Trading Margin % Shredder Capacity Leadership Proportion Utilisation Adjustments Group COO and CCO Sims Metal + 8.6 ppts + 3.5 ppts + 1.3 ppts appointed ANZ MD and NAM President, respectively. 1,2 ex GT 70.9% in HY25 22.4% in HY25 59.1% in HY25 3 Repurposed U
Slide 10: Driving Progress in NAM Metal
Driving Progress in NAM Metal Strategy Export vs. Domestic Optionality Increased Zorba Volumes - Expanded Unprocessed Intake 1 1 Volumes Export FOB USD$20/t Domestic FOB USD$56/t Premium Premium Unprocessed Ferrous Scrap 67% 70% 35% 64% Domestic 45% 55% % of Total Volume 65% Export 56% 60% July 2024
Slide 11: Strong US Steel Fundamentals
Metal Strong US Steel Fundamentals Strategy US Steel Scrap Generation Forecast¹ US Crude Steel Production¹ 100 120 75 90 Million tons Million tons 50 60 25 30 0 0 2023 2027 2031 2035 2039 2023 2024 2025 2026 2027 2028 2029 2030 Obsolete² Prime² Home² Consumption BOF EAF 1 Global Steel Scrap Supply-D
Slide 12: Well-Positioned for Policy Shifts
Metal Well-Positioned for Policy Shifts Strategy NAM and SAR Sites Ready to Supply EAFs NA Metals SAR Map includes NAM and SAR sites suited to support EAF current and upcoming EAF Capacity 12
Slide 13: ANZ Upside Opportunities
Metal ANZ Upside Opportunities Strategy Five proposed EAFs in ANZ • Leveraging existing relationships in ongoing supply negotiations • Strategically positioned - geographically and logistically Significant non-ferrous opportunity... 1 108,700 Tonnes Sales Volumes 1 $408.5 Million Revenue … Fines pla
Slide 14: Strong Data-Centre Growth
SLS Strong Data-Centre Growth Strategy Data Centre Growth Drivers Leveraging Repurposed Units To Meet Demand • Global AI-Ready Data Centre Capacity +33% YoY • Cost Efficient - Fraction of Price 1 (2023 -2030) • Improve Parts Availability • Data Centre Onshoring • Enable Frequent Upgrades for Energy
Slide 15: SLS Strategy Driving Earnings Momentum
SLS SLS Strategy Driving Earnings Momentum Strategy 10.0 Targeting ~ $30m EBIT in FY25 9m 7.5 Growth Strategy Repurposed Units (million) 2H25 Forecast • Global delivery at scale to meet 40% CAGR hyperscalers exponential growth 5.0 • Strengthen collaboration with industry partners to drive innovation
Slide 16: Financial Results
Financial Results Warrick Ranson, Group CFO 16
Slide 17: Capital Management Framework
Capital Management Framework OBJECTIVE Success Measures Context: Strategy • Must remain dynamically ROIC/EPS responsive to the cycle ST Y G • Inherent market volatility: RA TE TE RA G • Conservative and ST Y Dividends flexible (25-35% Payout) Capital Operating • Balance sheet strength Allocation Val
Slide 18: Revised Dividend Policy
Revised Dividend Policy • Dividend should be considered in the context of market volatility and circumstances • Franking benefits eventually constrained by growing proportion of US earnings • Diverse shareholder base. Minimum ordinary distribution provides investors with a choice • Supplementary act
Slide 19: Delivering Balance Sheet Strength
Delivering Balance Sheet Strength A$m HY25 FY24 Working capital 580.9 575.2 Property, plant & equipment 1,447.0 1,399.5 Intangible assets 307.1 301.3 Investments 654.0 584.9 Principally SAR Net borrowing (100.9) (411.9) Asset sales and operating cash flow Net lease liabilities (50.4) (49.3) Other ne
Slide 20: Group Performance by Segment
Group Performance by Segment Underlying EBIT¹ (A$m) HY25 HY24 Change Sales Volumes (million tonnes) HY25 HY24 Change Total Metal ex GT² 132.0 98.1 34.6% Total Metal ex GT² 4.4 4.6 (2.5)% Global Trading Operations (7.8) (14.0) (44.3)% Global Trading Operations & 0.7 0.5 25.6% Other Brokerage Sims Lif
Slide 21: Total Metal
Total Metal NAM ANZ SAR GT A$m HY25 HY24 HY25 HY24 HY25 HY24 HY25 HY24 Sales Revenue 2,257.4 2,109.4 770.6 834.3 2,440.1 2,287.0 424.8 402.1 Trading Margin 479.6 361.1 197.4 194.2 725.9 706.9 Net Operating Costs (346.4) (296.7) (128.9) (120.9) (525.3) (495.0) 1 Underlying EBITDA 133.2 64.4 68.5 73.3
Slide 22: Sims Lifecycle Services
Sims Lifecycle Services A$m HY25 HY24 Change • Strong EBIT growth outpaced revenue Sales Revenue 192.7 159.8 20.6 % demonstrating efficient scalability and disciplined 1 Underlying EBITDA 20.9 14.4 45.1 % cost control 1 Underlying EBIT 14.1 8.3 69.9 % • Margin expansion driven by repurposed unit EBI
Slide 23: Central Costs
Central Costs A$m HY25 HY24 Change • Reduced by 3.9% in HY25 due to restructuring in Operational Functions (20.7) (24.0) (13.8) % 2H24, partially offset by new IT systems expenditure Project Costs (9.3) (10.0) (7.0) % • Corporate overheads include annual Group wide Corporate Overheads (29.3) (27.7)
Slide 24: Cost Reduction Program
Cost Reduction Program Annualised Cost Savings (A$m) Further Portfolio Rationalisation (Work in Progress) $10-15 Targeted for FY26 & beyond • Organisational simplification • Operational and central costs ~$20-25 Planned for delivery in 2H25 • Asset rationalisation • Cost reduction opportunities begi
Slide 25: Operating Costs Including D&A
1 Operating Costs Including D&A AUD Million 1.9 2.1 2.1 4.4 774.3 14.9 (8.7) Site 6.1 759.0 Remediation Timing of Costs 752.9 (1.3) Wage Maintenance Inflation, Activities and Essential Market Driven Hires and Fuel Prices Incentives Rebased Growth Revised Cost Savings Total People Depreciation Yard S
Slide 26: Sale of UK Metal
Sale of UK Metal AUD Million 13.9 398.9 385.0 118.8 Receivable A$m 177.6 Proceeds Net Assets (130.0) From Sale Disposed 221.3 Transaction Costs (10.0) 280.1 Cash Received Working Capital FCTR Restatement (39.7) Conversion (179.7) Indicative Cash Adjustments on Total Proceeds Generation as Completion
Slide 27: Net Cash Movement
Net Cash Movement AUD Million 49.4 (4.6) Growth 64.6 (78.9) Sustaining 347.8 (83.5) (46.0) (19.3) (2.0) (100.9) 132.3 215.5 UK Working Capital Conversion (411.9) Net Cash 1 Jul 24 Net Operating Sale of UK Metal Closed Loop Sale Capex Leases Dividend Other Net Cash 31 Dec 24 Cashflow 27
Slide 28: Outlook
Outlook Stephen Mikkelsen, Group CEO & Managing Director 28
Slide 29: Key Takeaways
Key Takeaways 1. Earnings turnaround delivered in NAM – unprocessed volume growth, more at source material, sales optionality 2. ANZ resilient despite significant headwinds – positioned for upside in the medium term 3. SLS continuing to grow – healthy second half outlook, further medium-term gains a
Slide 30: Outlook
Outlook • Scrap markets: • Ferrous prices and intake volumes remain dynamic to regional market influences. • Global steel overcapacity and China’s elevated exports are expected to continue. • Non-ferrous demand has a robust foundation, and this is likely to be reflected in continued solid volumes an
Slide 31: Questions & Answers
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Slide 32: Appendix
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Slide 33: Product Segment Volumes
Product Segment Volumes Intake Volumes (‘000 tonnes) HY25 HY24 Change Intake Volumes (‘000 tonnes) HY25 HY24 Change North America Metal 2,442 2,474 (1.3) % Ferrous 2,961 3,123 (5.2) % ANZ Metal 728 863 (15.6) % Non-Ferrous Retail 209 214 (2.3) % Total Proprietary Volumes 3,170 3,337 (5.0) % Brokerag
Slide 34: Product Segment Volumes
Product Segment Volumes Average Sims Metal Sales Price HY25 HY24 Change Ferrous 567.7 579.2 (2.0) % Non-Ferrous Shredder Recovery 2,928.6 2,732.0 7.2 % Non-Ferrous Retail 4,133.6 4,335.0 (4.6) % Total Average Sims Metal Sales Price 920.1 862.6 6.7 % Sims Metal Sales Revenue ($m)¹ HY25 HY24 Change Fe
Slide 35: HY25 Metal Volumes
HY25 Metal Volumes 1 2 1 Source Destination Composition HY24 HY25 HY24 HY25 HY24 HY25 NAM SAR ANZ Other Sources Domestic Unprepared Dealer Export Prepared 1 Ferrous Intake Volumes 2 Ferrous Sales Volumes 35
Slide 36: Group Profit & Loss
Group Profit & Loss¹ A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue 3,645.5 3,505.6 4.0 % 7,195.4 8,061.1 9,264.4 5,916.3 4,908.5 Statutory EBITDA 194.9 297.8 (34.6)% 361.7 515.7 976.4 507.3 35.7 Underlying EBITDA 201.5 133.1 51.4 % 290.2 474.9 958.9 579.9 144.9 Statutory EBIT 66.4 190.
Slide 37: North America Metal
North America Metal A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue 2,257.4 2,109.4 7.0% 4,479.8 3,924.6 4,453.4 2,669.9 2,061.7 Trading Margin ($) 479.6 361.1 32.8% 784.3 748.9 919.9 591.7 481.2 Trading Margin (%) 21.2% 17.1% 4.1 ppts 17.5% 19.1% 20.7% 22.2% 23.3% Statutory EBITDA 100.7
Slide 38: Investment in SA Recycling
Investment in SA Recycling A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Statutory EBITDA 200.6 211.9 (5.3)% 397.1 487.1 733.0 402.6 110.5 Underlying EBITDA 200.6 211.9 (5.3)% 397.1 487.1 733.0 402.6 110.5 Statutory EBIT 105.5 124.8 (15.5)% 218.1 332.7 620.2 328.0 36.4 Underlying EBIT 105.5 124.8 (1
Slide 39: Australia & New Zealand Metal
Australia & New Zealand Metal A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue 770.6 834.3 (7.6)% 1,595.1 1,563.7 1,694.4 1,098.9 924.8 Trading Margin ($) 197.4 194.2 1.6% 410.3 420.2 455.2 337.5 286.3 Trading Margin (%) 25.6% 23.3% 2.3 ppts 25.7% 26.9% 26.9% 30.7% 31.0% Statutory EBITDA
Slide 40: Sims Lifecycle Services
Sims Lifecycle Services A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue 192.7 159.8 20.6 % 349.7 325.4 327.0 318.9 408.0 Statutory EBITDA 17.3 12.1 43.0 % 29.8 0.1 15.3 21.2 9.9 Underlying EBITDA 20.9 14.4 45.1 % 30.5 18.8 25.9 31.1 28.2 Depreciation 5.5 5.0 10.0 % 10.5 9.7 9.6 9.3 11.3
Slide 41: Global Trading Operations
Global Trading Operations A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue 424.8 402.1 5.6 % 770.8 824.0 1,128.5 745.8 550.8 Statutory EBITDA 19.4 3.2 506.3 % 36.1 12.1 55.8 21.9 8.2 Underlying EBITDA (7.3) (13.5) (45.9)% (19.0) (23.1) (19.2) (16.4) (13.9) Depreciation 0.5 0.5 0.0 % 1.2 1
Slide 42: Corporate & Central Costs
Corporate & Central Costs¹ A$m HY25 HY24 Change FY24 FY23 FY22 FY21 FY20 Sales Revenue - - -% - - 66.2 89.5 93.4 Statutory EBITDA (43.3) 124.8 (134.7)% 55.0 (14.3) (35.6) (89.6) (11.2) Underlying EBITDA (61.3) (65.1) (5.8)% (120.7) (97.0) (77.6) (46.9) (35.9) Depreciation 1.6 1.6 -% 3.2 3.1 10.9 15.
Slide 43: Constant Currency Summary
Constant Currency Summary A$m HY25 HY25 HY24 Change Constant Actual Actual Currency NAM Sales Revenue 2,257.4 2,285.4 2,109.4 8.3 % Trading Margin 479.6 485.6 361.1 34.5 % Net Operating Costs (346.4) (350.7) (296.7) 18.2 % Underlying EBIT 46.7 47.3 (8.8) (637.5)% SA Recycling Sales Revenue 2,440.1 2
Slide 44: Financial Summary – Group
1 Financial Summary – Group A$m HY25 HY24 FY24 FY23 FY22 FY21 FY20 Group Results Sales Revenue 3,645.5 3,505.6 7,195.6 8,061.1 9,264.2 5,916.3 4,908.5 Underlying EBITDA 201.5 133.1 290.3 475.0 958.7 580.0 145.0 Underlying EBIT 73.0 25.7 58.6 252.2 756.1 386.6 (57.9) Dividend (cents per share) 10.0 —
Slide 45: Financial Summary – Segment
Financial Summary – Segment¹ A$m HY25 HY24 FY24 FY23 FY22 FY21 FY20 Sales Revenue North America Metal 2,257.4 2,109.4 4,479.8 3,924.6 4,453.4 2,669.9 2,061.7 ANZ Metal 770.6 834.3 1,595.1 1,563.7 1,694.4 1,098.9 924.8 UK Metal — — — 1,423.4 1,594.9 993.3 869.8 Sims Lifecycle Services 192.7 159.8 349
Slide 46: Financial Summary – Segment (cont.)
Financial Summary – Segment¹ (cont.) A$m HY25 HY24 FY24 FY23 FY22 FY21 FY20 2 Proprietary sales tonnes (‘000) North America Metal 2,464 2,470 5,000 5,063 5,081 4,318 4,042 ANZ Metal 728 878 1,593 1,510 1,532 1,537 1,428 UK Metal — — — 1,399 1,493 1,370 1,221 Total 3,192 3,348 6,593 7,972 8,106 7,225
Slide 47: Financial Summary – Product
Financial Summary – Product¹ A$m HY25 HY24 FY24 FY23 FY22 FY21 FY20 Sales tonnes (‘000)² Ferrous Trading 2,834 3,054 6,073 7,323 7,444 6,692 6,140 Non-Ferrous Shredder Recovery 126 97 193 229 219 178 160 Non-Ferrous 232 197 406 454 442 355 390 Brokerage 686 546 1,244 1,426 1,602 1,368 1,462 Total 3,
Slide 48: Significant Items
Significant Items HY25 HY24 A$m HY25 HY24 After-Tax Total After-Tax Total Loss/(gain) on sale of assets classified as held for sale (net of (1.7) (2.6) (177.1) (102.4) transaction costs and impact of discontinued operations) Restructuring and redundancies 5.6 4.2 4.3 3.3 Non-qualifying hedges 2.7 2.
Slide 49: Net Cash Position
Net Cash Position A$m HY25 HY24 Opening Net Cash (411.9) (135.5) Underlying Net Profit 35.1 7.0 Depreciation & Amortisation 128.5 107.4 Joint Venture Non-Cash Income, Net of (22.7) (4.8) Dividends Change in Working Capital 258.0 51.3 Movement in Tax Balance (77.5) (22.0) Other 26.4 (37.1) Operating