Sims Ltd. · ASX:SGM
Sims — Investor Day (April 2019)
23 slides from Sims's investor day presentation, Apr 9, 2019
Slide 1: Sims Investor Strategy Day Presentation
Technology Product Sales Diversity A webcast of Sims Investor Strategy Day Presentation can be viewed live at https://edge.media-server.com/m6/go/sims-investor-strategy-day-0419/ or on demand following the event at http://streamit.webcastcloud.com.au/Mediasite/Catalog/catalogs/2019simsinvestorday Fo
Slide 2: Non-Ferrous Market Update
Technology Product Sales Diversity Policy Sims Investor Strategy Day Non-Ferrous Market Update 9 April 2019 Fortify
Slide 3: Global demand for recycled copper
Global demand for recycled copper Forecast to grow driven by development of power grids and electric vehicles In 2018 1.3 million tonnes of 2.8 million Global recycled copper demand tonnes global secondary copper 16,000 smelter capacity is located in China1 14,000 Primary copper smelters are 12,
Slide 4: Global supply of copper ore
Global supply of copper ore More than 12 million tonnes of additional supply required by 20351 Under-investment in new copper ore Global copper production and primary demand capacity mean more than 12 million 35,000 tonnes of additional supply is required by 20351 30,000 It can take ~10 years fo
Slide 5: Global demand for recycled aluminium
Global demand for recycled aluminium Forecast to grow next 5-10 years driven by auto, packaging and construction Three main sectors consume large Commercial and Passenger Vehicle Production volumes of recycled aluminium Auto 120,000 Packaging 100,000 Construction 80,000 60,000 Aluminium is
Slide 6: China Policy
China Policy Thinking ahead, delivering and creating optionality Sims thinking ahead Market options if China reduces Category 6 imports Sims technology creating high quality Recycled metals potentially processed in furnace ready product alternate markets before shipping to China Developed netw
Slide 7: Sales diversification
Sales diversification Utilise strengths to grow non-ferrous sales in new geographies Sims Advantages Diversity of customer type and geographic location Global trading function and expertise across all Non Ferrous Export Sales Non Ferrous Export Sales regions Volume 1H18 Volume 1H19 Engineering a
Slide 8: Product diversification
Product diversification Insulated copper wire converted to furnace ready product Insulated copper wire product Copper chop product China classification of Category 7 China classification of Category 6 8
Slide 9: Furnace ready copper chop
Furnace ready copper chop Removes manual processing in China and ICW plastic waste not imported Simple flow of Copper materials Simple flow of Copper materials Sims sells Insulated Copper Wire Sims sells Copper Chop Insulated copper wire shipped to China Copper chop shipped to China Manually dismant
Slide 10: Environmental drivers
Environmental drivers Furnace ready recycled metal assists China to achieve it’s goal China policy Sims & recycled metals contribute National Sword1 positively - Announced in July 2017 to the World Sims Reputation Trade Organisation - Strong record of importing quality - Aimed to stop the illega
Slide 11: Australia & New Zealand (ANZ) Metals
Purpose Grow Preserve Invest Sims Investor Strategy Day Australia & New Zealand (ANZ) Metals 9 April 2019
Slide 12: Business Overview
Business Overview Market leader with stable earnings growth and strong returns Largest metals recycler in Southern Hemisphere Underlying EBIT (A$m) 50 facilities across Australia, New Zealand, and Papua New Guinea 47 Track record of stable earnings growth and 43 strong investment returns 28 50
Slide 13: Business Overview
Business Overview 50 recycling facilities across Australia, New Zealand, and Papua New Guinea 3 Papua New Guinea Australia 38 Brisbane Perth Sydney Adelaide New Zealand Auckland 50 Facilities Melbourne 7 Shredders 9 1 Zorba Separation Plant Christchurch 13
Slide 14: ANZ Market
ANZ Market Leading market share, with further capacity to grow Market size (million tonnes) Estimated Australian market share by 7.0 volume 6.0 30% 5.0 4.0 3.0 2.0 1.0 0.0 Sims Metal Liberty OneSteel Australia New Zealand Oceania Tier 1 Competitors Tier 2 & 3 Competitors Source: National Waste Repor
Slide 15: Conclusion
Conclusion Strong returns with further opportunity to grow Market leader with a history of stable earnings growth and strong returns Competitive advantages in both technology and customer reach: – In-house engineering team and first to market in technology implementation – Facilities nation-wide
Slide 16: ANZ Metals: Zorba Separation Plant
Purpose Grow Preserve Invest ANZ Metals Zorba Separation Plant 9 April 2019
Slide 17: Zorba Separation Plant
Zorba Separation Plant Solution to upgrade all Australian Zurik & Zorba to furnace-ready products Project Summary National facility to upgrade all Sims Australia’s Zorba and Zurik into smelter ready products First of its kind in the Southern Hemisphere Operational in April 2019 Key Benefits
Slide 18: Zorba Separation Plant
Zorba Separation Plant Central location to service all five Australian shredders Project ProjectLocation: Adelaide,SASA Location: Adelaide, Brisbane Perth Adelaide Sydney Shredding Facility (Gillman) Zorba Separation Plant Melbourne Sims Metal Management Shredding Facility 18
Slide 19: Zorba Separation Plant
Zorba Separation Plant Solution maximises current capabilities and future technology adaptations July 2018: Acquisition of recently installed 3,000HP shredder in Adelaide, SA – Shredder re-purposed to re-shred zorba and zurik for fine granulation / separation – Acquisition significantly reduced th
Slide 20: Zorba Separation Plant
Zorba Separation Plant Direct to smelter sales for all products with capacity to process new materials Old Process New Process SimsMM Regional MRP’s SimsMM Regional MRP’s External Material Mixed Zurik Zorba Twitch1 Zurik E-Waste 3rd Party Metals2 Sold for further processing (e.g. China) Zorba Separa
Slide 21: Zorba Separation Plant
Zorba Separation Plant Enables product, customer and geographic diversity Ability to upgrade all Australian Zurik & Zorba to furnace-ready products – Solution to uncertainty of future demand for semi-processed mixed metals – Potential for increased non-ferrous sales to domestic customers Expande
Slide 22: ANZ Metals Site Tour
Purpose Grow Preserve Invest ANZ Metals Site Tour 9 April 2019
Slide 23: Material Recovery Process
Material Recovery Process Enables the creation of furnace ready product In-feed Shredder & Output Zorba Separation Output Material Recovery Plant Aluminium Twitch Plant (MRP) Zorba Zurik Al Copper heavies Red Cu Mixed heavies Zorba Grey Zurik Ferrous shred Stainless Sabot steel S Shredding facility