SIMS LIMITED — Annual Report 2007

Aug 30, 2007

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FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2007

building the world’s leading recycling company . . .

Sims Group Limited ASX Code: SGM

Jeremy Sutcliffe, CEO Ross Cunningham, CFO

31 August 2007

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Disclaimer

This presentation for Sims Group Limited is designed to provide a high level overview of aspects of the operations of Sims Group Limited. The material set out in the presentation is current as at 31 August 2007.

The presentation may contain forward looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources. Given the nature of the industry, business risks, and other factors, the assumptions, estimates and outcomes are uncertain. They may be affected by internal and external factors which may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of Sims Group Limited or the likelihood that the assumptions, estimates or outcomes will be achieved.

While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. Sims Group Limited, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation.

You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company’s shares or in making a decision to hold or sell your shares.

Please note that all references to $ or dollars herein are references to Australian dollars, unless otherwise indicated.

2

Agenda

1. CEO Overview – Jeremy Sutcliffe 2. Financial Results – Ross Cunningham 3. Strategy & Outlook – Jeremy Sutcliffe 4. Questions

3

building the world’s leading recycling company . . .

CEO Overview Jeremy Sutcliffe

Highlights

• Sales revenue of $5.5 billion up 48% on FY06

• EBITDA of $459.4 million up 34% on FY06

• Net profit after tax of $254.4 million up 29% on FY06

• Earnings per share of 203.6 cents up 17% on FY06

• Dividends per share of 120 cents up 14% on FY06

• Mitsui becomes a substantial cornerstone investor

• North American region the largest contributor to revenue and profits

• Completion of operational and management integration of former Hugo Neu business

• Continued focus on consolidation of the North American metals recycling market

• Adams joint venture in Southern California (completion scheduled for 1 September 2007)

• Strong and growing contribution from Sims Recycling Solutions

• URI & Noranda (US) and Metall + Recycling (Germany) acquisitions

• EBIT of $66.9 million (pre-corporate costs) up 82% on FY06, representing 14.1% of Group EBIT (net of corporate costs)

• EBIT in 4Q07 represented 16.1% of Group EBIT (net of corporate costs)

5

Financial Overview

	FY07	FY06	Change (%)
Sales Revenue ($m)	5,548.5	3,752.4	48%
EBITDA ($m)	459.4	343.4	34%
EBIT ($m)	407.8	301.9	35%
NPAT ($m)	254.4	196.6	29%
EPS (cents)	203.6	174.2	17%
DPS (cents)	120	105	14%
ROCCE (%)	24.4	26.2	(7%)
ROE (%)	19.2	16.4	17%
Operating Cash Flow ($m)	313.5	208.6	50%
Capital Expenditure (exc. Acquisitions) ($m)	90.5	76.5	18%
Net Debt ($m)	302.8	285.7	6%
Net Debt / (Net Debt + Equity) (%)	18.6	19.3	4%
Sales Tonnes (m)	9.589	7.706	24%
Final Dividend (51% franked) (cents)	60.0	60.0	0%

6

Sales Revenue by Product

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2007 2006
8%
7%
Ferrous Trading
5% 7%
Non Ferrous Shred Recovery
7% 4%
Ferrous Brokerage
42%
Non Ferrous Trading 47%
17%
16% Non Ferrous Brokerage (incl.
stainless)
Manufacturing / JVs / SimsSteel
Recycling Solutions
13%
5%
18% 4%
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$m	FY07	FY06	Change (%)
Ferrous Trading	2,348.4	1,791.2	31%
Non Ferrous Shred Recovery	235.0	178.6	32%
Ferrous Brokerage	976.3	472.8	106%
Non Ferrous Trading	884.1	645.1	37%
Non Ferrous Brokerage (incl. stainless)	375.6	154.2	144%
Manufacturing / JVs / SimsSteel	278.9	259.4	8%
Recycling Solutions	450.2	250.9	79%
Total	5,548.5	3,752.4	48%

7

Sales Revenue by Region

2007 53% 21%	48% 3,752.4 5,548.5 Total 44% 792.5 1,144.9 Europe 69% 1,735.2 2,938.2 North America 20% 1,224.7 1,465.4 Australia & NZ Change (%) FY06 FY07 $m 26% Australia & New Zealand North America UK & Europe 2006 33% 46% 21%	48% 3,752.4 5,548.5 Total 44% 792.5 1,144.9 Europe 69% 1,735.2 2,938.2 North America 20% 1,224.7 1,465.4 Australia & NZ Change (%) FY06 FY07 $m 26% Australia & New Zealand North America UK & Europe 2006 33% 46% 21%	48% 3,752.4 5,548.5 Total 44% 792.5 1,144.9 Europe 69% 1,735.2 2,938.2 North America 20% 1,224.7 1,465.4 Australia & NZ Change (%) FY06 FY07 $m 26% Australia & New Zealand North America UK & Europe 2006 33% 46% 21%	48% 3,752.4 5,548.5 Total 44% 792.5 1,144.9 Europe 69% 1,735.2 2,938.2 North America 20% 1,224.7 1,465.4 Australia & NZ Change (%) FY06 FY07 $m 26% Australia & New Zealand North America UK & Europe 2006 33% 46% 21%
	$m	FY07	FY06	Change (%)
	Australia & NZ	1,465.4	1,224.7	20%
	North America	2,938.2	1,735.2	69%
	Europe	1,144.9	792.5	44%
	Total	5,548.5	3,752.4	48%

8

Sales by Destination

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2006
2007
12%
19%
29%
33%
12%
13%
5%
21%
4%
4%
2%
13%
16%
17%
EUROPE
NE ASIA
CHINA & HK
SE ASIA & OCEANIA
MIDDLE EAST
USA/CANADA
DOMESTIC SALES []
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* Domestic refers to sales in country of sourcing

9

EBIT By Product

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2007
14% Ferrous Trading incl. NFSR 2006
11%
Ferrous Brokerage
5% 8%
1%
4% Non Ferrous Trading
52% Non Ferrous Brokerage
(incl.stainless)
56%
Manufacturing / JVs / 21%
21% SimsSteel
Recycling Solutions
4% 3%
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$m	FY07	FY06	Change (%)
Ferrous Trading incl. NFSR	245.6	193.7	27%
Ferrous Brokerage	20.5	12.0	71%
Non Ferrous Trading	99.5	74.6	33%
Non Ferrous Brokerage (incl. stainless)	17.3	4.1	321%
Manufacturing / JVs / SimsSteel	26.1	26.8	(2.6%)
Recycling Solutions	66.9	36.8	82%
Corporate Costs	(68.1)	(46.1)	48%
Total	407.8	301.9	35%

10

EBIT by Region

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2007 2006
17% 18%
38%
41%
Australia & New Zealand
North America
UK & Europe
41%
45%
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$m	FY07	FY06	Change (%)
Australia & NZ	153.6	124.8	23%
North America	184.1	123.4	49%
Europe	70.1	53.7	31%
Total	407.8	301.9	35%

11

EBIT Growth by Region

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450
400
+61
350
+16
+29
408
300
250 302
200
2006 EBIT Australia & NZ UK & Europe North America 2007 EBIT
� Australia & NZ
+$29m (+24%)
� Europe
+$16m (+31%)
� North America
+$60m (+48%)
$ million
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12

EBIT Growth by Product

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450
1
-22
+30
400
+38
350
+60
300
408
250 302
200
2006 EBIT Ferrous (incl. Non Ferrous Recycling Manuf./JVs/Sim s Corporate Costs 2007 EBIT
NSFR) Solutions Steel
� Ferrous (incl. NFSR) � Manufacturing/JVs/SimsSteel
+$60m (+29%) -$1m (-3%)
� Non Ferrous
� Group and Regional Corporate Costs
+$38m (+48%)
-$22m (-48%)
� Recycling Solutions
+$30m (+82%)
$ million
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13

Intake Volumes

28%	FY07 39% 28% 4% 1% FY06 48% 27% 19% 1% 5% 7,574 54 345 1,471 2,070 3,634 FY06 25% 7% 14% 77% 28% 3% Change (%) 9,448 Total 58 Other 394 Non Ferrous Trading / Brokerage 2,607 Ferrous Brokerage 2,657 Other Processed Ferrous 3,732 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 39% 28% 4% 1% FY06 48% 27% 19% 1% 5% 7,574 54 345 1,471 2,070 3,634 FY06 25% 7% 14% 77% 28% 3% Change (%) 9,448 Total 58 Other 394 Non Ferrous Trading / Brokerage 2,607 Ferrous Brokerage 2,657 Other Processed Ferrous 3,732 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 39% 28% 4% 1% FY06 48% 27% 19% 1% 5% 7,574 54 345 1,471 2,070 3,634 FY06 25% 7% 14% 77% 28% 3% Change (%) 9,448 Total 58 Other 394 Non Ferrous Trading / Brokerage 2,607 Ferrous Brokerage 2,657 Other Processed Ferrous 3,732 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 39% 28% 4% 1% FY06 48% 27% 19% 1% 5% 7,574 54 345 1,471 2,070 3,634 FY06 25% 7% 14% 77% 28% 3% Change (%) 9,448 Total 58 Other 394 Non Ferrous Trading / Brokerage 2,607 Ferrous Brokerage 2,657 Other Processed Ferrous 3,732 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other
	Total Tonnes (‘000)	FY07	FY06	Change (%)
	Ferrous Shredded incl. NFSR	3,732	3,634	3%
	Other Processed Ferrous	2,657	2,070	28%
	Ferrous Brokerage*	2,607	1,471	77%
	Non Ferrous Trading / Brokerage	394	345	14%
	Other	58	54	7%
	Total	9,448	7,574	25%

* Adams tonnage recategorised as Brokerage in FY08

14

Sales Volumes

	FY07 38% 29% 2% 4% FY06 46% 29% 19% 4% 2% 7,706 160 344 1,440 2,202 3,560 FY06 24% (4%) 14% 82% 26% 2% Change (%) 9,589 Total 154 Other 392 Non Ferrous Trading / Brokerage 2,619 Ferrous Brokerage 2,778 Other Processed Ferrous 3,646 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 38% 29% 2% 4% FY06 46% 29% 19% 4% 2% 7,706 160 344 1,440 2,202 3,560 FY06 24% (4%) 14% 82% 26% 2% Change (%) 9,589 Total 154 Other 392 Non Ferrous Trading / Brokerage 2,619 Ferrous Brokerage 2,778 Other Processed Ferrous 3,646 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 38% 29% 2% 4% FY06 46% 29% 19% 4% 2% 7,706 160 344 1,440 2,202 3,560 FY06 24% (4%) 14% 82% 26% 2% Change (%) 9,589 Total 154 Other 392 Non Ferrous Trading / Brokerage 2,619 Ferrous Brokerage 2,778 Other Processed Ferrous 3,646 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other	FY07 38% 29% 2% 4% FY06 46% 29% 19% 4% 2% 7,706 160 344 1,440 2,202 3,560 FY06 24% (4%) 14% 82% 26% 2% Change (%) 9,589 Total 154 Other 392 Non Ferrous Trading / Brokerage 2,619 Ferrous Brokerage 2,778 Other Processed Ferrous 3,646 Ferrous Shredded incl. NFSR FY07 Total Tonnes (‘*000) Ferrous Shredded incl. NFSR Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading / Brokerage Other
27%
	Total Tonnes (‘000)	FY07	FY06	Change (%)
	Ferrous Shredded incl. NFSR	3,646	3,560	2%
	Other Processed Ferrous	2,778	2,202	26%
	Ferrous Brokerage*	2,619	1,440	82%
	Non Ferrous Trading / Brokerage	392	344	14%
	Other	154	160	(4%)
	Total	9,589	7,706	24%

* Adams tonnage recategorised as Brokerage in FY08

15

Shredded Volumes

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Total Shredded (Production) Tonnes '000
0 1,000 2,000 3,000 4,000
FY07 3,732 +3%
FY06 3,634
Total NFSR (Sales) Tonnes '000
0 50 100 150 200
FY07 150.9 +16%
FY06 130.1
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* Adams tonnage recategorised as Brokerage in FY08

16

Sims Recycling Solutions

• Strong and growing contribution to Group revenue and profits

• EBIT of $66.9 million up 82% on FY06 – EBIT in 4Q07 represented 16.1% of Group EBIT (net of corporate costs)

• Sales revenue of $450.2 million up 79% on FY06

• The world’s largest electronics recycler with No. 1 market positions in the United Kingdom, Continental Europe, North America and Australia

• Completed URI and Noranda (US) and Metall + Recycling (Germany) acquisitions in FY07

• Legislative reform driving expansion opportunities

• Continue to pursue opportunities globally via both acquisition and greenfield development

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EBIT Sims Recycling Solutions
$
80,000
60,000
66,911
40,000
20,000 36,765
23,155
7,662
-
2004 2005 2006 2007
Year
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17

Sustainability – Energy

� Inputs

• Sims’ ferrous scrap used by steel manufacturers (as opposed to virgin materials), in F07 alone, generated

• embedded energy savings of 105 petajoules - enough to power almost 40% of Australian homes for one year

• reduced CO2 emissions in the order of 10.3 million tonnes

Sims – Regional Energy Consumption

• The use of Sims’ recycled non ferrous metals and plastics (as opposed to virgin materials) resulted in very significant embedded energy savings and CO2 emission reductions

  • electronic equipment recycled by Sims Recycling Solutions contributed a further 625,000 tonnes of CO2 emission reductions

• Outputs

• Sims consumed almost 2 petajoules of energy globally in FY07

• Sims is committed to reducing the energy used in its day-to-day operations - a Group Energy Policy has been formulated to communicate overall energy objectives

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800,000
600,000
400,000
200,000
-
USA- Australia- Europe
Canada NZ
Electricity Gas Fuel Petrol Fuel Diesel Fuel LPG
GigaJoule (GJ)
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• Sims has registered under the EEO Act and is initially targeting energy improvement programs for sites that constitute 80% of its total energy consumption, not just in Australia as required, but globally

18

Sustainability - Carbon Footprint

� Sims’ total CO2 footprint for F07 was 219,744 tonnes of CO2 equivalent, which is slightly less than that reported for FY06

• Emission calculations include direct GHG emissions (Scope 1) as well as indirect GHG emissions arising as a result of externally purchased power (Scope 2). They do not include emissions from sources under external operational control, such as service providers to Sims (Scope 3)

• Conversion factors recommended by The Greenhouse Gas Protocol Revised Edition (World Business Council Sustainable Development and World Resources Institute) have been used to calculate carbon footprint

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Sims - Regional CO2 Emissions Equivalent (Scope1+2)
Europe,
32,995 tonnes,
(15%)
Australia-NZ, Europe
106,277 tonnes,
USA-Canada
(48%)
Australia-NZ
USA-Canada,
80,472 tonnes,
(37%)
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19

Sustainability Reporting

• Sims remains strongly committed to Corporate Sustainability Reporting and considers the management of non-financial risk of equal importance to the traditional areas of governance and fiscal management

• Sims participated in the Carbon Disclosure Project (CDP5). The Project provides a secretariat for the world’s largest institutional investors to collaborate on the business implications of climate change by monitoring the performance of companies in this area

• Sims also participated in the FTSE4Good sustainability index for the first time. The index provides important and comprehensive data for investors interested in a company’s performance as it relates to corporate sustainability

• Sims is currently reviewing its existing participation in the Dow Jones Sustainability Index. As a recycling company, Sims is incorrectly classified as a “mining” or “smelting” related company in many of the sustainability indices, an issue which needs to be addressed

20

Health and Safety

• Lost time injury frequency was slightly up to 6.5 (from 6 in FY06)

• Medically treated injury frequency rate was also up to 31.5 (from 31 in FY06)

• Tragically, one fatality was recorded in the UK

• Continuing focus on health and safety performance in FY08

Lost Time Injury Frequency Rate

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25
20
21
15
14
10
11
8
5 6 6.5
5
0
2001 2002 2003 2004 2005 2006 2007
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21

building the world’s leading recycling company . . .

Financial Results Ross Cunningham

Group Income Statement

$m	FY07	FY06	Change	Change (%)
Sales Revenue	5,548.5	3,752.4	1,796.1	48%
EBITDA	459.4	343.4	116.0	34%
EBIT	407.8	301.9	105.9	35%
Net Interest Expense	(28.0)	(16.3)	(11.7)	72%
Tax Expense	(125.4)	(89.0)	(36.4)	41%
Net Profit After Tax	254.4	196.7	57.7	29%

23

Group Balance Sheet

$m	FY07	FY06	Change	Change (%)
Current Assets	792.8	711.6	81.2	11%
Non-current Assets	1,393.6	1,226.2	167.4	14%
Total Assets	2,186.4	1,937.8	248.6	13%
Current Liabilities	439.6	386.2	53.3	14%
Non-current Borrowings	341.3	301.5	39.9	13%
Other Non-current Liabilities	80.9	53.4	27.5	52%
Total Liabilities	861.8	741.1	120.7	16%
Net Assets/Equity	1,324.7	1,196.8	127.9	11%
Net Debt/(Net Debt +Equity)	19%	19%	0	0%

24

Group Cash Flow

$m	FY07	FY06	Change	Change (%)
Earnings Before Interest & Tax	407.8	301.9	105.9	35%
Non Cash Items
Depreciation & amortisation	51.6	41.5	10.1	24%
Provisions	(16.4)	(10.6)	(5.8)	55%
Net Business (Purchases) / Sales	(158.9)	(28.5)	(130.4)	458%
Net Capital Expenditure (exc. Acquisitions)	(82.3)	(74.5)	(7.8)	10%
Net Working Capital Change	29.9	(14.0)	43.9	(314%)
Income Tax Paid	(135.6)	(95.1)	(40.5)	43%
Net Interest Expense	(28.0)	(16.3)	(11.7)	72%
Other	4.2	1.2	3.0	250%
Cash Inflows (Outflows) from Operations & Investing Activities	72.3	105.6	(33.3)	(32%)

25

Australia & NZ Regional Results

	FY07	FY06	Change (%)
Sales Revenue ($m)	1,465.4	1,224.7	20%
EBITDA ($m)	167.7	138.7	21%
EBIT ($m)	153.6	124.8	23%
Assets ($m)	514.8	402.5	28%
Employees	1,216	1,197	2%
ROCCE (%)	47.8%	42.5%	13%

26

European Regional Results

	FY07	FY06	Change (%)
Sales Revenue ($m)	1,144.9	792.5	44%
EBITDA ($m)	87.3	66.9	30%
EBIT ($m)	70.1	53.7	31%
Assets ($m)	515.2	408.5	26%
Employees	1,024	950	8%
ROCCE (%)	21.2%	23.0%	(8%)

27

North American Regional Results

	FY07	FY06	Change (%)
Sales Revenue ($m)	2,938.2	1,735.2	69%
EBITDA ($m)	204.3	138.2	48%
EBIT ($m)	184.1	123.4	49%
Assets ($m)	1,156.4	1,126.9	3%
Employees	1,470	1,282	15%
ROCCE (%)	18.0%	19.6%	(8%)

28

Financial Performance Trends

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EPS
250
200
216.3
203.6
150
174.2
100
122.6
50 82.2
46.6 54.0
0
FY01 FY02 FY03 FY04 FY05 FY06 FY07
A cents
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DPS

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----- Start of picture text -----

180
160
140
120 160.0¢
100
120.0¢
80
105.0¢
60 86.0¢
40
54.0¢
20 32.0¢ 36.0¢
0
FY01 FY02 FY03 FY04 FY05 FY06 FY07
A cents
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ROCCE

ROE

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----- Start of picture text -----

60%
50%
40%
47.9%
30% 41.1%
20% 28.3% 26.2% 24.4%
10% 14.4% 18.1%
0%
FY01 FY02 FY03 FY04 FY05 FY06 FY07
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45%
40%
35%
30% 38.1%
25%
20% 25.1%
15%
18.9% 19.2%
10% 13.3% 14.3% 16.4%
5%
0%
FY01 FY02 FY03 FY04 FY05 FY06 FY07
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29

building the world’s leading recycling company . . .

Strategy & Outlook Jeremy Sutcliffe

Current Global Footprint

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----- Start of picture text -----

Illinois
Ontario
2 operations
1 operation EU
40 operations
British
New York/
Columbia
New Jersey/
5 operations Connecticut Asia
7 operations
5 Representative
Offices
California
16 operations
Virginia
7 operations
Arizona Arkansas /
NZ
1 operation Tennessee
10 operations
2 operations
Australia
52 operations
----- End of picture text -----

• Sims Group has 148 physical operations globally (up from 122 at end FY06)

• World’s leading metals recycler with No. 1 or No. 2 market positions in Australia, New Zealand, United Kingdom, US West Coast and US East Coast

• World’s largest electronics recycler with No. 1 market positions in the United Kingdom, Continental Europe, North America and Australia

31

Strategic Opportunities

� Metals Recycling

• Consolidation offers greatest opportunity to create shareholder value

• Focus on North America (to consolidate existing positions and further extend footprint) and Europe

• Acquisition criteria

• Target holds #1 or #2 market position

• Target possess domestic and export marketing flexibility

• Target provides sound platform for future growth

• Target has strong management

• Acquisition enhances shareholder value

� Sims Recycling Solutions

• Continue to pursue of opportunities globally

• Growth via both acquisitions and greenfields development

32

Outlook

� Demand

• Global steel production up year on year heading to 1.3 billion tonnes (7 months annualised)

• China continues to drive commodity prices

• Other Asian economies also offsetting weakness in US economy

• Ferrous Scrap Prices

• Global steel production remains robust

• Iron ore price outlook underpins ferrous scrap price

• Turkish demand and tight regional supply a positive

• Non-Ferrous Scrap Prices

• Supply / demand imbalance a positive for non ferrous scrap

• Copper and copper-based scrap demand particularly strong

• Despite nickel price decline, outlook is for firm pricing

33

Outlook (cont.)

� Competition

• As intense as ever with surplus shredding capacity in key markets

• Container “threat” ongoing, but strategies in place

� Technology

• Further shredder upgrades, with quick payback, designed to recover non ferrous metals planned in FY08

• Plastic and ICW recovery from shredder waste another opportunity

• Exchange rates

• A weak US dollar adversely affecting Australia and New Zealand earnings and offshore earnings on translation

34

Share Price 2002 - 2007

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30.00
25.00
20.00
15.00
10.00
5.00
2002 2003 2004 2005 2006 2007
Sims S&P/ASX 200 All Ordinaries S&P/ASX 200 Industrials
A$ (rebased to Sim s price)
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35

building the world’s leading recycling company . . .

Questions