SIMS LIMITED — AGM Information 2022

Nov 7, 2022

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2022 Annual General Meeting

9:00am (AEDT), Tuesday 8 November Geoff Brunsdon , Chairman Alistair Field , Group CEO and Managing Director

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Disclaimer

The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 8 November 2021. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Group’s periodic reporting and other announcements lodged with the Australian Securities Exchange (ASX).

To the extent that this document may contain forward-looking statements, such statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, and which may cause actual results to differ materially from those expressed in the statements contained in this release.

This document is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

Authorised for Release by: the Company Secretary ABN 69 114 838 630

Head Office: level 9, 189 O’Riordan Street, Mascot, NSW, Australia 2020

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Welcome to the 2022 AGM Geoff Brunsdon, Chairman

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Acknowledgement of Country

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Welcome to the 2022 AGM Geoff Brunsdon, Chairman

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Chairman’s Address Geoff Brunsdon, Chairman

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CEO’s Address Alistair Field, Group CEO

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Sustainability Strengthened sustainability credentials

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Ranked 11[th] in the Global 100 list of most sustainable companies, ranked for the 8[th] time

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Received maximum AAA rating

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Ranked #6 in Sustainability Magazine Top 100 companies in sustainability[1]

Terra Carta Seal for creation of sustainable markets 1

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Included in Financial Times/Nikkei Asia inaugural APAC Climate Leaders List

Included in Newsweek’s list of America’s Most Responsible Companies for the second year in a row

Who we work with

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1Announced in 2H FY22

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Summary of Financial Outcomes High-quality result - materially increased sales volume, revenue, and profit. Significantly higher cash flow distribution while maintaining a strong balance sheet.

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Sales Volumes
8,106 million tonnes
FY21 12.2%
7,225 million tonnes
Operating Cash Flow
$547.8 million
FY21 323.3%
$129.4 million
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Sales Revenue
$ 9,264.4 million
FY21 56.6%
$5,916.3 million
Underlying [1] EBITDA
$958.9 million
FY21 65.4%
$579.9 million
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Underlying [1] EBIT
$756.1 million
FY21 95.6%
$386.6 million
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Return on Productive Assets[3] 39.0% FY21 +16.0 ppts 23.0% Cash Flow Distribution[4] $244.7 million FY21 74.5% $140.3 million

Underlying[1] NPAT $578.9 million FY21 103.8% $284.1 million

1 Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges, and internal recharges

3 Underlying EBIT / average of opening non-current assets and ending non-current assets excluding assets relating to adoption of AASB 16 Leases and deferred tax assets 4 Comprising FY22 interim and final dividends and shares repurchased from 15 February 2022 to18 July 2022.

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Employee Health & Safety

Strong safety performance with the lowest ever Total Recordable Injury Frequency Rate

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160 48%
140 reduction in
120 Recordable Injuries
100 FY19 vs FY22
80 FY19
60
FY20
40
FY21
20
FY22
0
Critical Risk Recordable Lost Time Injuries
Incidents Injuries
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• Implementation of the Critical Risk Management strategy delivered sequential improvements since FY19

• Proactive lead indicator programmes focused on control measure improvements resulted in:

  • Lowest number of critical risk incidents ever reported

  • Lowest number of lost time injuries ever reported

  • Lowest Total Recordable Injury Frequency Rate ever reported

• 12,000+ Improvement actions generated – targeted risk focus on traffic management and ergonomics

Total Recordable Injury Frequency Rate (TRIFR)[1]

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4
2.9
3
1.8
2 1.5 1.6
1.3 1.3 1.2 1.1
1
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
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1 Defined as total recordable injuries x 200,000 divided by number of hours worked for employees and contractors

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Trading Update

Soft market conditions have persisted throughout 1Q FY23 and, consistent with industry reports, this has been driven by lower volumes, tighter trading margins, and resiliently high inflation.

Current trading conditions

• Lower scrap volumes resulting from significantly reduced economic activity, coupled with increased competition for available infeed has tightened trading margins in both percentage and dollar per tonne terms.

• Inflation remains at elevated levels in all our markets, with the US and UK at 40-year highs.

Short term outlook

• Forecast Underlying EBIT of $65 million to $75 million for 1H FY23.

• It is worth noting that there are shipments scheduled to occur close to the half-year end and, in accordance with revenue recognition policies, this has the potential to impact whether EBIT is attributed to 1H FY23 or 2H FY23.

• Costs to remain elevated in 1H FY23 as cost mitigation initiatives have only partially offset inflationary pressures. Further cost reduction measures targeted for 2H FY23.

• FY23 sustaining capex – targeting a reduction from $220 million down to $170 million.

Medium term outlook

• Sims is well positioned for when the market recovers having delivered (i)strong earnings in the previous three financial halves,(ii)the successful transition from a regional to a functional organisation, (iii) recent and innovative acquisitions,(iv) significant growth in SA Recycling’s footprint.

• Sims remains very confident in the metal recycling fundamentals. Decarbonisation of steel making, growth of EAFs and the energy transition will drive demand for recycled metal.

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Welcome to the 2022 AGM Geoff Brunsdon, Chairman

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Voting Procedure - In person during the meeting

Please mark your voting card

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Voting Procedure – Online during the meeting

Matter Procedure

• Voting  All voting will be determined by a poll

• To be able to vote you must register for a voting card by selecting the “Get a voting card” from the bottom of the site

• Enter your shareholder number and postcode OR proxy number to receive the voting card

• Cast your vote “FOR”, “AGAINST” or “ABSTAIN” each resolution and submit vote by selecting “Submit Vote” or “Submit Partial Vote”

• You can edit your voting card at any point while voting is open by selecting “Edit Card”, but you must submit your voting card

• Voting will end five minutes after the close of the Meeting

• Only shareholders, proxy holders or company representatives may vote

• For joint shareholdings, only the first shareholder to register for a voting card will be able to vote, the other shareholder will not be able to vote during the meeting

• Question  You can ask questions once you have registered to vote by selecting the “Ask a protocol Question” box

• You can ask a general question or a question specific to a resolution

• If you are asking multiple questions, please submit all questions separately

• If your question is answered during the meeting, you can reply by asking an additional Question

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Please ask your questions now.

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“To receive and consider the financial statements of the Company and its controlled entities for the year ended 30 June 2022 and the related Directors’ Report, Directors’ Declaration and Auditor’s Report”.

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RESOLUTION 1

To re-elect Ms Deborah O’Toole as a Director of the Company

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Please ask your questions now.

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Resolution 1	For	Discretionary	Against	Abstain
Votes	150,439,688	464,055	2,921,181	37,658
	97.80%

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RESOLUTION 2 To re-elect Mr Hiroyuki Kato as a Director of the Company

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Please ask your questions now.

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Resolution 2	For	Discretionary	Against	Abstain
Votes	151,401,190	286,232	2,134,302	40,858
	98.43%

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RESOLUTION 3 To re-elect Mr Philip Bainbridge as a Director of the Company

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Please ask your questions now.

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Resolution 3	For	Discretionary	Against	Abstain
Votes	152,838,281	286,437	676,906	59,458
	99.37%

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RESOLUTION 4 To approve the renewal of proportional takeover provisions for 3 years

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Please ask your questions now.

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Resolution 4	For	Discretionary	Against	Abstain
Votes	151,648,605	297,157	1,851,094	65,726
	98.60%

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RESOLUTION 5 To adopt the Remuneration Report for the year ended 30 June 2022

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Please ask your questions now.

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Resolution 5	For	Discretionary	Against	Abstain
Votes	147,904,098	275,517	5,556,143	126,735
	96.21%

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RESOLUTION 6 To approve the participation in the Sims Limited Long Term Incentive Plan by Mr Alistair Field

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Please ask your questions now.

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Resolution 6	For	Discretionary	Against	Abstain
Votes	151,964,473	286,960	1,556,116	56,933
	98.80%

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RESOLUTION 7 To approve the transition plan set out in the Climate Report

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Please ask your questions now.

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Resolution 7	For	Discretionary	Against	Abstain
Votes	136,958,375	288,510	15,848,718	765,479
	89.46%

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Welcome to the 2022 AGM Geoff Brunsdon, Chairman

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Thank you

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