Sims : Annual Report 2025

About this update from Sims Ltd.

Driving Change. Delivering Value. Executing on strategy to deliver sustainable returns 2025 ANNU A L REPOR T CONTENT S How We Create Shared Value 4 Strategy 6 Capital Management Framework 7 Sims Businesses 8 Geographically Diverse Footprint 10 2025 Snapshot 12 Chairman's Review 14 CEO's Review 16 Sustainability Strategy 18 Environment, Health and Safety Performance 20 Board of Directors 22 Executive Leadership Team 24 Directors' Report 27 Financial Report 89 Overview 90 Financial Performance 92 Assets and Liabilities 100 Capital Structure and Risk Management 121 Group Structure 130 Other disclosures 140 Independent Auditor's Report 154 Shareholder Information 158 Company Directory 160 Sims Limited is a purpose-led organisation and a global leader in metal recycling and the provision of repurposing solutions for technology and cloud infrastructure. Our purpose is to create a world without waste to preserve our planet for future generations. Sims Limited Annual Report 2025 1 Our impact ... We play a key role in enabling sovereign metal manufacturing and the creation of a world without waste, recognising that many of the resources needed to build tomorrow's cities, infrastructure and data centres are finite. Scale in key markets provides us with opportunities to capitalise on further growth and structural industry changes as the demand outlook for high-quality recycled inputs remains strong. Sims inherently contributes to a more sustainable, energy-efficient and reliable future by lowering supply chain emissions, enabling circularity, and providing security of supply to our customers. We achieve this by supplying recycled and repurposed raw materials and components to suit the needs of our customers, strengthening their supply chains with competitive, high quality input units and alternatives while enabling them to reduce the energy and emissions intensity of their products and services. 2 Sims Limited Annual Report 2025 ... is what sets us apart After more than 100 years in business, our operational capabilities, significant regional and global network, strong public governance and prudent financial management combine to position us as a reliable, responsible and innovative partner for our customers, suppliers, investors, governments and the communities where we operate. Many consider us as a partner of choice. Safety will always be the cornerstone of how we operate, complemented by a culture of inclusivity and respect, and our ability to inspire with purpose. Our strength is built on maintaining an extensive and localised network in large efficient markets in which we aim to be a major contributor. We adapt to regional differences while maintaining the agility needed to leverage our global network, providing ease of access to suppliers and the option of domestic or export sales optionality based on the best returns. Our customer- and supplier-centric focus provides the catalyst for ongoing investment in large shredding capacity, process innovation and operational automation to provide quality products, supply chain reliability and a differentiated value proposition. Sims Limited Annual Report 2025 3 S TAK EHOLDERS How We Create Shared Value ‌Customers Suppliers Investors We are committed to leading the industry through the quality of our products and our high level of service, providing a responsive and reliable approach to supply chains. We partner with customers to tailor our offerings to their needs. Our extensive network delivers a strategic advantage in ensuring products and services are delivered in a reliable manner regardless of customer location. Working with our customers, we provide supply chain confidence and innovative and differentiated solutions to meet their emissions-reduction and energy-efficiency needs, delivered in a transparent and reputable manner. We treat our suppliers equally as customers. We actively collaborate with suppliers to identify opportunities for mutual growth, offering geographically diverse, safe and easily accessible recycling services. We strive for a positive experience when suppliers visit our sites, and provide competitive compensation, recognising they have a choice in a highly competitive industry. For those suppliers with corporate reporting requirements, our public listing, sustainability performance and governance makes us a reliable, transparent and attractive partner. We are uniquely positioned to leverage increasing regionalisation and customer supply chain reliability needs as the world focuses on the growing demand for recycled metals and repurposed technology infrastructure. Focusing on margin and cash generation to maintain a strong balance sheet enables us to navigate market shifts effectively, and to consistently reward investors while capitalising on further growth opportunities. 4 Sims Limited Annual Report 2025 Employees Government Communities Our employees are key contributors to our success. We offer safe, inclusive and respectful workplaces where everyone is empowered to drive positive change. Through diverse career pathways and exciting opportunities across many professional disciplines, we help build fulfilling and rewarding careers that contribute to a greener, more sustainable future. We are a transparent operator, upholding high standards within the industry. Through our recycling and repurposing activities we provide a public good in a safe and environmentally responsible manner, while contributing to local employment and local economies. We are a critical contributor to the supply chain security of domestic sovereign industries like metal manufacturing and the repurposing of technology infrastructure. We extend the life of goods disposed of by society by recycling and repurposing them instead of sending them to landfill. We strive to be a good neighbour who operates safely and in an environmentally responsible manner and contributes to the communities where we operate. Sims Limited Annual Report 2025 5 ‌SIMS S TRAT E GIES Strategy Create a world without waste to preserve our planet Repurpose and recycle Innovative and agile Rapid response to shifts in the market Use of data to drive performance Simplified structures Operational efficiency Safe operations Aligned end-to-end supply chain Scalable and replicable capacity Suppliers Part of our customer base Efficient access to supplier hubs in large markets Unprocessed material at value Customers Key raw material supplier Differentiated products Developed domestic channels/global network Invest responsibly Focus on cash generation and value accretion Strong capital management Efficient working capital Culture 6 Sims Limited Annual Report 2025 ‌Capital Management Framework Strategy ROIC 1 /EPS 2 Objective S t r a t e g y S t r a t e g y Success measures Organic growth (EPS accretion) Capital allocation Acquisition or buyback Dividends (25-35% payout) Pre-growth FCF ³ Value creation C NPV 4 /TSR 5 w o fl h s a a C Balance sheet Target gearing/ debt Operating assets Maintenance capital (~depreciation) w o fl h s Trading margin/ EBITDA 6 / ROACE 7 Market risk (total gearing 8 <15%) Working capital (operating leverage 9 <0.5x) Optimisation (recycling capital) ROIC = Return on invested capital EPS = Earnings Per Share Pre-growth free cash fiow (FCF) = underlying EBITDA adjusted for changes in working capital, sustaining capex, lease payments, interest and taxes NPV = Net present value TSR = Total Shareholder Return EBITDA = earnings before interest, taxes, depreciation and amortisation ROACE = Return on capital employed Total gearing = total debt, including leases Operating leverage excludes finance leases (underlying EBITDA multiple) Sims Limited Annual Report 2025 7 ‌SIMS BUSINESSES Adapting to an Evolving Market Sims Limited plays a key role in the global metal industry through our Sims Metal segment, operating fully owned recycling facilities across North America, Australia, Papua New Guinea and New Zealand. These operations form a strategically located network that sources, processes and supplies ferrous and non-ferrous scrap to domestic and international customers. Sims also holds a 50% stake in SA Recycling, one of the largest metal recyclers in the United States (US). This significantly extends the scale of our business, giving us access to key US markets. It also positions Sims to benefit from structural tailwinds, including growing demand for low-emissions materials, increased focus on domestic supply chain resilience, and long-term decarbonisation trends across the metals value chain. 8 Sims Limited Annual Report 2025 Sims Lifecycle Services (SLS), a division of Sims Limited, provides enterprise clients with global solutions for forward logistics and extending the lifecycle of their used electronics. Through secure collection, reuse and redeployment, SLS enables clients to maximise value recovery and achieve a positive environmental impact while meeting sustainability and compliance goals. Services include secure data destruction, asset and component redeployment, and environmentally responsible solutions. SLS reduces risk, supports circular economy practices, and ensures regulatory compliance. SLS's global network and expertise makes it a trusted partner for managing large-scale IT hardware transitions and sensitive data. SLS focuses on transparency, security and sustainability in helping organisations retire IT assets efficiently and responsibly. The business is well positioned to benefit from structural trends, including the rapid growth of AI, cloud computing and edge technologies, which is increasing the volume of assets being retired. With a growing presence in the US and a strong global footprint, SLS leverages its industry and technology expertise to deliver scalable solutions. These capabilities position the business to capture long-term value in the expanding circular technology economy. Sims Limited Annual Report 2025 9 ‌GLOB A L OPERAT IONS Geographically Diverse Footprint Metal facilities 275 Lifecycle services 20 Shredders 44 Global footprint (countries) 13 North America 76 9 1 15 SA Recycling 148 22 Sales revenue to external customers United States 33.2% Turkey 12.7% China 10.3% India 6.0% Australia 6.0% Thailand 5.4% Other 26.3% 10 Sims Limited Annual Report 2025 United Kingdom Europe India Singapore Australia and New Zealand 5 2 2 2 1 51 3 1 7 Including Brazil and Mexico Including Ireland Including Papua New Guinea Sims Limited Annual Report 2025 11 HIGHLIGHT S 2025 Snapshot ‌Shareholder Highlights Dividend $38.6m Dividends paid in FY25 Financial Highlights Sales revenue $7,494.0m Total dividend 23¢ Underlying 1 EBITDA $430.0m Operating cash fiow $297.1m Underlying 1 EBIT 2 $174.9m Underlying 1 NPAT 3 $83.1m Net debt $332.3m Excludes significant items, the impact of non-qualifying hedges, and internal recharges. EBIT = Earnings before interest and taxes NPAT = Net Profit After Tax Net operating profit after tax / average invested capital (assumed 25% effective tax rate) Operational Highlights Sims Metal proprietary intake volumes 6,107,000 tonnes Sustainability Reduction in Total Recordable Injury Frequency Rate since FY19 37% Sims Metal proprietary sales volumes 6,341,000 tonnes Reduction in Total Lost Time Injury Frequency Rate (LTIFR) 68% Return on Invested Capital 4 4.9% MSCI ESG Rating AAA Global 100 Most Sustainable Companies #2 Corporate Knights 2025 Using renewable electricity and renewable certificates across operated sites in the US, Canada, the UK, Germany, India, Netherlands, Ireland, Poland, New Zealand, Singapore and Australia. Not all sites in these countries INTR ODUC TION Chairman's Review ‌Sims performed well during FY25 despite a challenging environment with continued geopolitical tension and increasing trade uncertainty. Sims executed on the strategic initiatives we announced during the prior year for the Metals business, including enhancing domestic sales optionality, focusing on higher-margin unprocessed material, and exercising disciplined cost controls. The operations and service offerings of the Sims Lifecycle Services (SLS) business continued to grow to support increasing demand from hyperscale data centres for repurposed material. Operational gains and strong underlying earnings in FY25 demonstrate the strength of our strategy and business model. Looking forward, I am confident that our Company is well positioned to capitalise on the growing demand for sustainable materials and our customers' need for supply chain reliability. Safety and Sustainability Our priority has been and will continue to be the safety of our employees. I am pleased to report that Sims had another exceptional safety performance in FY25, achieving the lowest Lost Time Injury Frequency Rate (LTIFR) in our Company's history, a rate of 0.11, while maintaining a Total Case Injury Frequency Rate of 1.0. With a focus on leading indicators, enhanced control training and employee awareness, we continue to lead the industry with a best-in-class safety culture. I also am pleased to report that Sims met its FY25 renewable power targets and exceeded its FY25 Scope 1 and 2 targets. Capital Management and Shareholder Returns Our capital management framework is focused on sustaining a strong balance sheet, funding strategic growth and returning value to shareholders. In line with this framework, the Company declared a final dividend of 13 cents per share, fully franked, resulting in a total full-year dividend of 23 cents. The final dividend will be paid on 15 October 2025 to shareholders on the Company's register at the record date of 1 October 2025. We will continue to recycle capital from non-core assets to support strategic growth opportunities across our footprint. "Our Metals business is well positioned ... to capitalise on the anticipated growth in electric arc furnaces and the increasing need for secondary aluminium and copper." "Sustainability is at the core of our business, and we continue to believe that our purpose - to create a world without waste to preserve our planet - endures." Board Renewal During FY25, we continued to refresh the Board's membership to ensure deep industry knowledge and strong strategic leadership. To that end, we were pleased to welcome Shinichiro Omachi and Russell Rinn as non-executive directors. The Board will continue to focus on succession planning to ensure that it has the right mix of skills and experience to lead the Company. Three colleagues retired from the Board during the year: Hiroyuki Kato, Deborah O'Toole and Thomas Gorman. and I would like to thank each of them for their valuable contributions and dedicated service to Sims. Looking Ahead Sustainability is at the core of our business, and we continue to believe that our purpose - to create a world without waste to preserve our planet - endures. The use of recycled materials is key to supporting our customers' efforts in carbon reduction, circularity and supply chain resilience. Specifically, our Metals business is well positioned in Australia and New Zealand and North America to capitalise on the anticipated growth in electric arc furnaces and the increasing need for secondary aluminium and copper. Similarly, our SLS business is strategically placed to profit from the growth in artificial intelligence and the rapidly expanding data centre market in North America and throughout its footprint. Sims will continue to be the preferred supplier to our customers, providing the sustainable materials they needed to support their growth. Thank You On behalf of the Board, I would like to thank all Sims employees, whose commitment to maintaining safe work practices, supporting each other and serving our customers, suppliers and communities is commendable. I would also like to thank you for your continued support as shareholders in the Company and invite you to attend our annual general meeting virtually or in person at the Pullman Hotel, Mascot, NSW on Friday, 21 November 2025. Philip Bainbridge Chairman and independent non-executive director INTR ODUC TION CEO's Review ‌Strategic Progress Fiscal year 2025 was a year of delivery against our turnaround plan. We simplified the portfolio with the divestment of UK Metal and maintained strict discipline on costs. These actions, combined with a focus on metal margins, growth in Sims Lifecycle Services, and a strong contribution from SA Recycling, increased underlying EBIT nearly 200 percent to $174.9 million. In North America, a focus on unprocessed scrap intake, disciplined buying, and enhanced domestic sales channels drove a $93 million EBIT improvement. In Australia and New Zealand, resilience in non-ferrous helped offset ferrous headwinds from record Chinese steel exports. SA Recycling lifted its EBIT contribution to Sims by 17 percent, while also adding strategically important bolt on acquisitions. Sims Lifecycle Services delivered another standout year with EBIT up 84 percent, capitalising on the exponential growth of hyperscaler data centres and AI demand. Financial Strength and Capital Management Sales revenue grew 4 percent to $7.5 billion, underpinned by higher non-ferrous prices. Underlying free cashfiow of $107 million represented a significant improvement. The Board declared a fully franked final dividend of 13 cents per share, resulting in total dividends for FY25 of 23 cents per share, up 130 percent from last year, supported by both stronger earnings and the proceeds from the UK Metal sale. We continued to invest in our operating network, completing shredder and downstream upgrades, expanding our railcar and barge logistics, and advancing the redevelopment of Pinkenba into a strategic hub for future domestic demand. These initiatives strengthen our ability to capture margin and provide operational fiexibility. "In North America, a focus on unprocessed scrap intake, disciplined buying, and enhanced domestic sales channels drove a $93 million EBIT improvement." Safety and Culture Safety remains central to our culture. In FY25, we recorded a Lost Time Injury Frequency Rate of 0.11, a record low and refiective of our focus on lead indicators and proactive risk management. Our employee engagement score of 82 percent, maintained at record levels since FY21, highlights the resilience of our culture through significant transformation and reinforces the commitment of our people to Sims' purpose and values. Looking Ahead "In FY25, we recorded a Lost Time Injury Frequency Rate of 0.11, a record low and refiective of our focus on lead indicators and proactive risk management." While ferrous markets remain challenged by high Chinese exports and global oversupply, structural tailwinds continue to build. Expanding electric arc furnace capacity is driving scrap demand, tariffs are supporting United States domestic margins, and accelerating AI adoption is fuelling sustained non-ferrous and repurposed unit growth. Our strategic focus is clear: margin discipline, capital efficiency, and portfolio simplification. These principles, together with our purpose to create a world without waste to preserve our planet, position us to capture opportunities in decarbonisation and the circular economy. Thank You To our people, thank you for your commitment and resilience through a year of significant progress. To our shareholders, thank you for your continued support. I look forward to advancing our strategy and delivering long term value in the years ahead. Stephen Mikkelsen Global Chief Executive Officer and Managing Director ‌SUS TAINA BILITY SUMMAR Y Sustainability Strategy FY25 marks a milestone year for Sims. It marks the completion of an important performance cycle and a pivotal opportunity to assess our ESG progress and sharpen our forward strategy. This reaffirms our core belief that long-term value must be measured not only by financial outcomes but also by our impact on the environment, our people and the communities we serve. Sustainability is foundational to how we grow, operate and lead. It's what enables us to stay true to our purpose: to create a world without waste to preserve our planet. We structure our efforts across 3 core pillars: Operate Responsibly, Action on Climate, and Communities. They work together as a unified framework that guides how we lead with purpose now and how we evolve to meet the challenges of tomorrow. Framework We are committed to sustainability through 3 fundamental pillars. Operate Responsibly We prioritise a safety-first culture, workforce development and stringent ethical and transparency standards. Through collaborative leadership, we are committed to fostering an inclusive culture and driving employee engagement, ensuring all employees feel valued, empowered and able to contribute fully. Beyond our own operations, we advocate for higher industry-wide standards. Action on Climate We are committed to reducing our carbon footprint and minimising environmental impacts, including waste. Leveraging technology and our team of experts, we develop innovative solutions that drive decarbonisation and foster circular economies for our customers. We focus on building climate resilience, embedding transition planning, and capturing emerging opportunities as part of our commitment to continuous improvement and long-term value creation. Communities We build strong, trusted relationships within our communities through active engagement and social licence programs. By investing in local initiatives and giving back, we strive to enhance the wellbeing and quality of life for all community members. 110+ sites use 100% renewable electricity B 2024 CPD Climate Disclosure Operate Responsibly Safety culture Inclusive leadership and culture Skilled and engaged workforce Stringent ethical and transparency standards Advocacy to raise operating standards in the metal industry Action on Climate Reduce our impact on the environment Innovation to accelerate customers' decarbonisation and promote circular economies Reduce waste to landfill Communities Build trusted relationships within our communities through engagement and contributions Sims Limited enables Circular Economies Refurbish Parts harvesting Recycle Recover and manage User Distribution Assembly and product manufacturing Parts manufacturing Resources SUS TAINA BILITY SUMMAR Y Environment, Health and Safety (EHS) Performance ‌Driving Positive Change The EHS Management System at Sims was designed as a true change management system. When one component of the system changes, all components are updated accordingly. At the core of the system are our Company EHS Standards, which detail mandatory global control measures, visually demonstrating what 'good looks like'. Another key component is our EHS training content, which directly addresses employee interaction with the required control measures. This is followed by our Critical Control Verifications, which are designed to challenge the effectiveness of the applied control measures. When these measures are enhanced through this process, so are the Standard requirements, as well as the associated training. This fiuid cycle of continuous improvement has driven Sims to an effective standardisation and continuous improvement process, which has maintained our safety performance success since 2020. Safety professionals are the first to say that 'safety is a journey'. However, here at Sims, we recognise that the journey does not have a predetermined finish line, but involves a commitment to continually improving the work environment at our facilities. Sims personnel and also regular site visitors see and feel the substantial changes that are occurring on our sites today. The advancement of control measures is tangible here, with constant reinvention of site traffic fiows, pedestrian segregation measures, moving parts guarding, and access restrictions. A clear example of how well the EHS Management System is applied is with our newly acquired sites. Installation of enhanced control measures begins on the day of handover. A newly acquired site in Pennsylvania, in the US, fitted with new moving part guarding, fall protection, hazardous access restrictions, isolation procedures, and pedestrian/mobile equipment segregation. George Henderson Jr., EHS Partner, is seen thanking material inspectors for adopting new control measures, behind pedestrian safety barriers. "Controlling our critical risks takes precedence here," states Brian Maeck, Head of Global EHS. "We understand our industry risk profile, and we know what effective control measures need to be applied, because nothing we do in EHS is guesswork; it's all based on our proactive data." Brian is referring to the thousands of assessments of current controls that have been completed over the years, providing the data that lays the groundwork for standardising control measures. "What I love about working at Sims is that despite difficult market conditions, we do not deviate from the strategic advancement of our safety program. We're able to maintain our improvement focus, and our safety performance remains consistent. I'm proud to say that the severity of incidents has never been lower in the company's history, and that does not happen by accident; it takes a lot of hard work by our EHS and Ops teams, with the support of our executives." Brian Maeck Head of Global EHS Although Sims no longer sets lagging (reactive) indicator improvement targets since FY23, we are proud to present an all-time Company low Lost Time Injury Rate of 0.11. Demonstrating that our leading (proactive) indicator focus is driving desired outcomes. Lost Time Injury Rate (%) 0.38 73% improvement 0.29 0.27 0.23 0.23 0.19 0.11 0.4 0.3 0.2 0.1 0.0 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Brian Maeck, gives personal safety shares to personnel at newly acquired sites. Brian spoke about his time working in high-risk work environments and the need for control measures. He recognised site manager Luis Gois for the quick application of safety control measures, through the Sims EHS Excellence Recognition program. ‌GO VERNANCE Board of Directors Philip Bainbridge Chairman Appointed March 2024 Independent non-executive director Appointed September 2022 Stephen Mikkelsen Group Chief Executive Officer and Managing Director Appointed October 2023 Mr Bainbridge was appointed as a Director on 1 September 2022 and appointed Chairman of the Company on 25 March 2024. He is also Chair of the Nomination/Governance Committee. Mr Bainbridge has extensive senior executive experience, primarily in the oil and gas sector across exploration, development and production. He has worked in a variety of jurisdictions, including North America, Europe, Asia and Australia. His most recent executive role was as Executive General Manager LNG for Oil Search Limited. Prior to that, he served in senior executive roles at Pacific National and BP Group. Mr Bainbridge is also Chairman of the Global Carbon Capture and Storage Institute, and Sino Gas and Energy. He was previously Chair of the Papua New Guinea Sustainable Development Program. Degrees and Qualifications Mr Bainbridge holds a Bachelor of Science in Mechanical Engineering. Other Listed Company Boards Mr Bainbridge is Chairman of the Global Carbon Capture and Storage Institute, and Sino Gas and Energy. Mr Mikkelsen was appointed Chief Executive Officer and Managing Director in October 2023, after originally joining Sims Limited in 2018 as the Global Chief Financial Officer. He brings more than 30 years of finance and executive management experience to the company. Prior to joining Sims Limited, Mr Mikkelsen held senior leadership positions at AGL Energy, including serving as Chief Financial Officer from 2006 to 2012, followed by Group General Manager Retail Energy and Executive General Manager Energy Markets. Before his tenure at AGL, Mr Mikkelsen was the Chief Financial Officer of Snowy Hydro from 2001 to 2006. Degrees and Qualifications Mr Mikkelsen holds a Bachelor in Business Studies as well as being a Chartered Accountant and a member of Chartered Accountants Australia & New Zealand. Victoria Binns Independent non-executive director Appointed October 2021 Ms Binns has more than 35 years of experience in the global resources and financial services sectors, including 10 years in executive leadership roles at BHP in Asia and 15 years in financial services with Merrill Lynch Australia and Macquarie Equities. Ms Binns held a number of board and senior management roles at BP, including Vice President Minerals Marketing, leadership positions in the metals and coal marketing business and Vice President Market Analysis and Economics; and at Merrill Lynch Australia, including Managing Director and Head of Australian Research, Head of Global Mining, Metals and Steel, and Head of Australian Mining Research. Degrees and Qualifications B.E. (Hons I) (Mining) (UNSW), Grad Dip SIA, FAusIMM, GAICD Other Listed Company Boards Ms Binns is a non-executive director of ASX-listed Evolution Mining. She is a non-executive director for the not-for-profit Carbo Market Institute (CMI), a member of the Advisory Council for J.P. Morgan, Australia & New Zealand, and on the Advisory Board of Merlon Capital Partners. Grant Dempsey Independent non-executive director Appointed April 2024 Mr Dempsey has more than 35 years' experience, having served in numerous roles as a senior executive, strategic advisor and investment banker. Most recently, Mr Dempsey served as the Chief Financial Officer of TPG Telecom, one of Australia's largest telecommunication companies. He previously served as Chief Financial Officer at Alumina Limited, Senior Adviser, Finance at ANZ Banking Group, and Head of Investment Banking (Australia and New Zealand) at J.P. Morgan. Degrees and Qualifications Mr Dempsey holds a Bachelor of Commerce from the University of Melbourne. Other Listed Company Boards Mr Dempsey currently serves as a Non-Executive Director of Industry Funds Management (IFM) Investors and chairs its board investment committee. Mr Dempsey is also a non-executive director of Megaport, an ASX-listed company, and chair of its audit and risk committee. He was appointed as a non-executive director of The a2 Milk Company, an ASX and NZX-listed company, with effect from 1 September 2025. Committees within Sims Committee Chair Audit Nomination / Governance People & Culture Risk Safety, Health, Environment, Community & Sustainability Russell Rinn Independent non-executive director Appointed December 2024 Kathy Hirschfeld, AM Independent non-executive director Appointed September 2023 Mr Rinn has more than 40 years of experience in the steel, fabrication and metal recycling industries. Most recently, Mr Rinn served as an executive Vice President of Steel Dynamics Inc. and the President and Chief Operating Officer of OmniSource, its metal recycling subsidiary. He previously served as an Executive Vice President of Commercial Metals Company (CMC), a Texas-based metal recycler and producer of rebar and related products. Degrees and Qualifications Mr Rinn holds a Bachelor of Finance, Marketing and Business Administration from Texas Lutheran University and is a graduate of the Executive Program of the Stanford University Graduate School of Business, and the Management Development Program at the University of Michigan's Ross School of Business. Shinichiro Omachi Non-independent non-executive director Appointed November 2024 Ms Hirschfeld is a chemical engineer with 20 years' experience with BP in oil refining, logistics and exploration in Australia, the United Kingdom and Turkey. She also served as a logistics officer in the Australian Army Reserve. Ms Hirschfeld has extensive experience on ASX, NYSE, private company and government boards. Ms Hirschfeld previously served as a board member and president of UN Women National Committee Australia and non-executive director of Energy Queensland, ToxFree Solutions, InterOil Corporation, Broadspectrum, Snowy Hydro, Queensland Urban Utilities and Spark Infrastructure RE Limited. Additionally, she was a member of the Senate of the University of Queensland for 10 years. Degrees and Qualifications Ms Hirschfeld is a Member of the Order of Australia (AM), holds a Bachelor of Engineering, and is an Honorary Doctor of Engineering, an Honorary Engineering Associate Fellow, a Fellow of the Institution of Chemical Engineers, a Fellow of the Australian Academy of Technological Sciences and Engineering, and a Member of the Australian Institute of Company Directors. Other Listed Company Boards Ms Hirschfeld is the Chair of Powerlink Queensland, an independent non-executive director of Central Petroleum, and a board member of Spark Infrastructure RE Limited. Mr Omachi started his business career in the Mineral & Metal Resources division of Mitsui. He held various senior strategy positions at Mitsui during his tenure, including as Executive Vice President, Chief Strategy Officer. In June 2022, Mr Omachi took the position of Counseller to Mitsui. ‌GO VERNANCE Executive Leadership Team Stephen Mikkelsen Global Chief Executive Officer and Managing Director Warrick Ranson Global Chief Financial Officer Stephen Mikkelsen was appointed Chief Executive Officer and Managing Director in October 2023, after originally joining Sims Limited in 2018 as the Global Chief Financial Officer. He brings more than 30 years of finance and executive management experience to the company. Prior to joining Sims Limited, Stephen held senior leadership positions at AGL Energy, including serving as Chief Financial Officer from 2006 to 2012, followed by Group General Manager Retail Energy and Executive General Manager Energy Markets. Before his tenure at AGL, Stephen was the Chief Financial Officer of Snowy Hydro from 2001 to 2006. Stephen is a member of Chartered Accountants Australia & New Zealand. Warrick Ranson was appointed to the position of Group Chief Financial Officer in December 2023. He brings more than 2 decades of extensive executive-level experience from senior positions within blue-chip corporations, operating across global markets in the mining and resources industries. Prior to joining Sims Limited, Warrick served as Chief Financial Officer at OZ Minerals Limited for nearly 6 years, where he was instrumental in guiding that company through a period of substantial growth and value creation. Previously, Warrick spent approximately 18 years with Rio Tinto in various roles. Warrick is a Fellow of the Institute of Chartered Accountants in Australia, a graduate of the Australian Institute of Company Directors, and holds an MBA from the University of Oxford. Gretchen Johanns Global General Counsel and Company Secretary Brad Baker Global Chief Human Resources Officer Gretchen Johanns joined Sims Limited in 2018 as the Global General Counsel and Company Secretary, bringing more than 20 years of experience as a senior legal advisor for publicly listed US companies in the information technology, service and media industries to this role. Prior to joining the company, Gretchen served as the Deputy General Counsel and Corporate Secretary at Xerox Corporation. Previously, she held several legal roles of increasing responsibility at Time Warner Cable Inc. Gretchen received her Juris Doctor degree from Cornell University and her Bachelor of Arts degree from Grinnell College. In 2018, Sims Limited welcomed Brad Baker as the Global Chief Human Resources Officer. Brad has extensive international operations and board-level experience with publicly listed companies in the US and Australia. Brad brings almost 30 years of human capital strategy experience spanning several industries, including plastics, metal processing and mining services, to Sims Limited. Throughout his career, Brad has had overall responsibility for leading talent acquisition, selection assessments, employee and labor relations, organisational behaviour, succession planning, employee engagement, compensation and benefits, and workforce development. Prior to joining the Company, he was the Senior Vice President of Human Resources and a corporate officer for Boart Longyear. Ingrid Sinclair Global President, Sims Lifecycle Services John Glyde Managing Director of ANZ, Sims Metal Ingrid Sinclair was appointed Global President for Sims Lifecycle Services, a division of Sims Limited, in 2019. She has overall responsibility for growing and developing the division's global information technology asset and electronic equipment retirement services for businesses and data centres. Ingrid joined the business in 2007 as the Vice President of Recycling for the US, bringing more than 20 years of electronics recycling experience and 10 years spearheading innovation in electronics recycling operations to the role. Ingrid began her career as a Chemical Process Engineer at Glencore Canada (formerly Noranda) where she spent 10 years in various international commercial and operational roles. In addition to being trained as a Six Sigma Black Belt, Ingrid holds a Bachelor of Chemical Engineering from the University of Ottawa and a Master of Business Administration from Concordia University. John Glyde was appointed Managing Director for Sims Metal ANZ, a division of Sims Limited, in October 2024. He has responsibility for metal processing, transportation and logistics (excluding chartering) and engineering services within Australia and New Zealand. John's career with Sims Limited spans over 30 years, marked by progressively senior leadership roles in the metal business across Australia and the US. Most recently, he served as Global Chief Operating Officer for Sims Metal, beginning in 2020. Prior to this global role, he led the Australia and New Zealand region, first as Chief Operating Officer (2015-17) and then as Managing Director for 3 years. His earlier experience includes serving as General Manager for Queensland. Rob Thompson President of North American, Sims Metal Rob Thompson joined Sims Limited in 2022 as the Global Chief Commercial Officer for Sims Metal, where he held global responsibility for both ferrous and non-ferrous buying and sales. In October 2024, he was named President of North American Metals. Prior to joining the company, Rob was the Vice President of Sales and Marketing for Gerdau North America. He has more than 30 years of global metal recycling and steel industry experience. Previously, Rob served as the Vice President of Raw Materials, as well as leading other areas, such as Logistics, Sales and Operations Planning (SOP), and Rebar Fabrication. Earlier in his career, Rob was the Global Process Owner of Metallics for Gerdau Corporation in Sao Paulo, Brazil, and the Director of Ferrous Trading for Triple M Metals, Canada. He graduated from the University of Toronto with a degree in economics. CONTENT S Directors' Report 27 Operating and Financial Review 27 Remuneration Report 52 Auditor's Independence Declaration 83 Consolidated Financial Statements 84 Consolidated Income Statement 84 Consolidated Statement of Comprehensive Income 85 Consolidated Statement of Financial Position 86 Consolidated Statement of Changes in Equity 87 Consolidated Statement of Cash Flows 88 Notes to the Consolidated Financial Statements 89 Directors' Declaration 153 Independent Auditor's Report 154 26 Sims Limited Annual Report 2025 ‌DIRECTORS' REPORT The Directors present their report on the consolidated entity (referred to hereafter as the "Group") consisting of Sims Limited (the "Company") and the entities it controlled at the end of, or during, the year ended 30 June 2025 ("FY25"). PRINCIPAL ACTIVITIES The principal activities of the Group during FY25 comprised of (a) buying, processing, and selling of ferrous and non-ferrous recycled metals and (b) repurposing and recycling of IT assets and electronic equipment for commercial customers. The Group's principal activities remained unchanged from the previous financial year. OPERATING AND FINANCIAL REVIEW Disclosing Non - IFRS Financial Information (unaudited) (A$M UNLESS OTHERWISE DEFINED) FY25 FY24 CHANGE Financial Performance metrics from continuing operations Sales revenue 7,494.0 7,195.4 4.1% Statutory earnings before interest, tax, depreciation and amortisation ("EBITDA") 323.7 361.7 (10.5%) Significant items, and the impact of non-qualifying hedges (106.3) 71.4 (248.9%) Underlying EBITDA¹ 430.0 290.3 48.1% Depreciation expense (238.2) (218.8) 8.9% Amortisation expense (16.9) (12.8) 32.0% Statutory earnings before interest and tax ("EBIT") 68.6 130.1 (47.3%) Underlying EBIT¹ 174.9 58.7 198.0% Net interest expense (33.7) (52.3) (35.6%) Statutory income tax expense (32.5) (76.0) (57.2%) Underlying income tax expense (58.1) (29.8) 95.0% Statutory net profit after tax ("NPAT") 2.4 1.8 33.3% Underlying NPAT¹ 83.1 (23.4) (455.1%) Statutory diluted earnings per share ("EPS") (cents) 1.2 0.9 33.3% Underlying diluted EPS (cents) 42.5 (11.9) (457.1%) Full year dividends per share (cents) 23.0 10.0 130.0% Financial Position metrics Net assets 2,586.8 2,562.7 0.9% Net debt 332.3 411.9 19.3% Lease liabilities 274.3 279.4 1.8% Total capital² 3,193.4 3,254.0 (1.9%) Average non-current assets excluding lease-related assets and deferred tax assets 2,384.5 2,297.5 3.8% Return on productive assets (%)³ 7.3% 2.6% 4.7ppts Return on invested capital (%)⁴ 4.9% 1.8% 3.1ppts Net tangible assets 2,320.2 2,261.4 2.6% Net tangible assets per share (cents) 12.0 11.7 2.6% Other Key metrics Net cash inflow/ (outflow) from operating activities 297.1 202.5 46.7% Free cashflow 5 106.8 (41.7) (356.1%) Employees 3,916 3,917 -% Proprietary sales tonnes ('000) 6,341 6,593 (3.8%) Underlying EBITDA, underlying EBIT and underlying NPAT excludes significant non-recurring items, the impact of non-qualifying hedges and internal recharges. Total capital = net assets plus net debt plus lease liabilities. Return on productive assets = underlying EBIT/average of opening non-current assets and ending non-current assets excluding right of use assets arising from AASB16 Leases , deferred tax assets and long term lease receivables. Return on invested capital ("ROIC") = net operating profit after tax / average invested capital. Assumed 25% effective tax rate. Free cash flow = underlying EBITDA adjusted for changes in working capital, sustaining and growth capex, lease payments, interest and underlying taxes. DIRECTORS' REPORT (CONTINUED) OPERATING AND FINANCIAL REVIEW (continued) Sensitivity to movements in foreign exchange rates The principal currencies in which the Group's continuing operations conducted business during the year were United States ("US$") dollars and Australian dollars ("A$"). Although the Group's reporting currency is the Australian dollar, a significant portion of the Group's sales and purchases are in currencies other than the Australian dollar. In addition, significant portions of the Group's net assets are denominated in currencies other than the Australian dollar. The Group's consolidated financial position, results of operations, and cash flows may be materially affected by movements in the exchange rate between the Australian dollar and the respective local currencies to which its subsidiaries are exposed. Some of the results discussed below are presented on a "constant currency" basis, which means that the current period results are translated into Australian dollars using applicable exchange rates from the prior corresponding period. This allows for a relative performance comparison between the two periods before the translation impact of currency fluctuations. Foreign exchange rates compared with the prior corresponding periods for the major currency that affect the Group's results are as follows: AVERAGE RATE-YEAR ENDED 30 JUNE CLOSING RATE-AS AT 30 JUNE 2025 2024 CHANGE 2025 2024 CHANGE US dollar 0.6477 0.6556 (1.2%) 0.6580 0.6667 (1.3%) As at 30 June 2025, the cumulative effect of the retranslation of net assets of foreign controlled entities, recognised through the foreign currency translation reserve, was A$207.3 million compared to A$128.5 million as at 30 June 2024. At reporting date, if the foreign currency exchange rates had weakened or strengthened against the functional currency by 10% with all other variables held constant, the Group's after tax profit would have increased or decreased by A$5.9 million (2024: A$3.6 million) respectively. There would have been no impact to other comprehensive income. The sensitivity analysis includes only outstanding foreign currency denominated monetary items at the reporting date and adjusts their translation for a 10% change in the foreign currency rate. All balances are stated in Australian dollars unless otherwise indicated. 28 Sims Limited Annual Report 2025

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