SIMS LIMITED — Annual Report 2011

Aug 25, 2011

Financial results for the full year ended 30 June 2011 Sims Metal Management Limited ASX Code: SGM NYSE Code: SMS

Supplemental Information

26 August 2011

Disclaimer

This presentation may contain forward-looking statements, including statements about Sims Metal Management’s financial condition, results of operations, earnings outlook and prospects. Forwardlooking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.

These forward-looking statements involve certain risks and uncertainties. Our ability to predict results or the actual effects of our plans and strategies is subject to inherent uncertainty. Factors that may cause actual results or earnings to differ materially from these forward-looking statements include those discussed and identified in filings we make with the Australian Securities Exchange and the United States Securities and Exchange Commission (“SEC”), including the risk factors described in the Company’s Annual Report on Form 20-F, which we filed with the SEC on 6 December 2010.

Because these forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release.

All subsequent written and oral forward-looking statements concerning the matters addressed in this release and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release.

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

Financial Overview

	FY 2011	FY 2010	Change (%)
Sales Revenue ($m) EBITDA ($m) Depreciation ($m) Amortisation ($m) EBIT ($m) NPAT ($m) EPS (cents) Net cash inflow/(outflow) from operating activities ($m) Capital Expenditures ($m) Net Debt (Cash) ($m) Net Debt (Cash)/[Net Debt (Cash) + Equity] (%) Sales Tonnes (‘000) Full Fiscal Year Dividend (cents per share)*	8,846.8 431.7 102.2 28.4 301.1 192.1 93.3 158.6 142.8 126.2 4.1 14,204.3 47	7,452.6 352.9 109.1 34.8 208.1 126.7 64.5 (47.5) 120.9 (15.1) (0.5) 12,896.6 33	18.7 22.3 (6.3) (18.4) 44.7 51.6 44.7 433.9 18.1 935.8 - 10.1 42.4

*FY2010 presented EBITDA is before impairment of other intangibles of $0.9 million.

Sales Revenue by Region

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FY 2011
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FY 2010
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16.8% 15.5%
67.7%
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16.0% 16.4%
Australasia
North America
Europe
67.6%
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$m	FY 2011	FY 2010	Change (%)
Australasia North America Europe	1,369.2	1,221.3	12.1
	5,993.0	5,040.0	18.9
	1,484.6	1,191.3	24.6
Total	$ 8,846.8	$ 7,452.6	18.7

Sales Revenue by Product

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FY 2011
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FY 2010
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2.2%
8.9%
0.7%
18.8%
48.2%
17.4%
3.8%
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8.9% 2.7% 8.8%
0.7% Ferrous Trading 1.0%
Non Ferrous Shred Recovery
18.8% Ferrous Brokerage 19.6% 46.2%
48.2%
Non Ferrous Trading
Non Ferrous Brokerage
Manufacturing/Other
17.4% 17.2%
3.8% Recycling Solutions 4.5%
Change * Ferrous brokerage sales associated with SAR JV
$m FY 2011 FY 2010 (%)
were A$1.0 billion and A$0.7 billion, in FY2011
Ferrous Trading $ 4,261.7 $ 3,441.9 23.8
and FY2010, respectively.
Non Ferrous Shred
339.5 338.8 0.2
Recovery
Ferrous Brokerage 1,542.4 1,279.0 20.6
Non Ferrous Trading 1,665.2 1,461.5 13.9
Non Ferrous Brokerage 58.8 75.5 (22.1)
Manufacturing/Other 192.8 198.5 (2.9)
Recycling Solutions 786.4 657.4 19.6
Total $ 8,846.8 $ 7,452.6 18.7
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EBIT by Region

-$60 -$40 -$20 $0 $20 $40 $60 $80 $100 $120 $140 $160 ($'s in millions)

$m FY 2011 FY 2010 Change (%) Australasia 87.3 81.2 7.5 North America 141.1 113.3 24.5 Europe 102.3 69.0 48.3 EBIT by Region $ 330.7 $ 263.5 25.5 Unallocated Group Corporate Costs (1.2) (20.6) 94.2 *Amortisation of intangibles (28.4) (34.8) 18.4 EBIT $ 301.1 $ 208.1 44.7 87.3 141.1 102.3 (1.2) (28.4) 81.2 113.3 69.0 (20.6) (34.8) Australiasia North America Europe Corporate Amortisation of intangibles FY 2011 FY 2010

*EBIT by Region excludes amortisation of intangibles.

**Unallocated Group Corporate Costs in FY11 are offset by a $11 million gain on sale of other financial assets.

EBIT by Product

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$200 181.7
$180
$160
$140 133.2 95.5 114.4
$120 92.9 89.4
$100
$80 31.4 FY2011
$60 23.4 29.3
$40 21.4 3.2 FY2010
$20 1.6
$0
($’s in millions)
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$m	FY 2011	FY 2010	Change (%)
Ferrous Trading (incl. NFSR) Ferrous Brokerage Non Ferrous Trading Non Ferrous Brokerage Manufacturing/JVs/Other Recycling Solutions	181.7 23.4 92.9 1.6 31.4 114.4	133.2 21.4 95.5 3.2 29.3 89.4	36.4 9.3 (2.7) (50.0) 7.2 28.0
EBIT by Product Group & Regional Corporate Costs *Amortisation of intangibles	$ 445.4 (115.9) (28.4)	$ 372.0 (129.1) (34.8)	19.7 10.2 18.4
EBIT	$ 301.1	$ 208.1	44.7

• EBIT by product is presented pre-corporate costs (including group head office costs) and amortisation of intangibles.

• ** Group & Regional Corporate Costs in FY11 are offset by a $11 million gain on sale of other financial assets.

EBIT Change by Region

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300 7
19
280
260 28 301
240
33
220
6
200 208
FY10 EBIT Australasia Europe (inc. UK) North America Corporate Intangibles FY11 EBIT
Costs
$ million
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Australasia $ 6m Europe (incl. UK) $ 33m North America $ 28m Group Corporate Costs $ 19m Amortisation of intangibles $ 7m

EBIT Change by Product

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300 7
13
280 2
25
260 301
(4)
240
50
220
200 208
FY10 EBIT Ferrous Non Ferrous Recycling Manufacturing/ Corporate Intangibles FY11 EBIT
(incl. NFSR) Solutions JVs/Other Costs
$ million
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Ferrous Trading & Brokerage (incl. NFSR) $ 50m Non Ferrous Trading & Brokerage ($ 4m) Recycling Solutions $ 25m Manufacturing/JVs/Other $ 2m Group and Regional Corporate Costs $ 13m Amortisation of Intangibles $ 7m

Intake Volume by Region

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FY 2011
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FY 2010
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10.4% 12.2%
77.4%
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10.9% 12.9%
Australasia
North America
Europe
76.2%
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Total Tonnes (‘000’s)	FY 2011	FY 2010	Change (%)
Australasia North America Europe	1,745	1,718	1.6
	11,044	10,156	8.7
	1,482	1,449	2.3
Total	14,271	13,323	7.1

Intake Volume by Product

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FY 2011
FY 2010
4.0% 0.3% Ferrous Shredded (incl. 4.6% 0.3%
NFSR)
24.1%
Other Processed
24.6%
Ferrous
38.5%
Ferrous Brokerage 40.1%
Non Ferrous
Trading/Brokerage
Other
33.1%
30.4%
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Total Tonnes (‘000’s)	FY 2011	FY 2010	Change (%)
Ferrous Shredded (inc. NFSR) Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading/Brokerage Other*	5,489 4,732 3,433 573 44	5,346 4,057 3,271 608 41	2.7 16.6 5.0 (5.8) 7.3
Total	14,271	13,323	7.1

• Ferrous brokerage tonnes associated with SAR JV were 2.2 million and 1.9 million tonnes for FY2011 and FY2010, respectively.

Sales Volume by Region

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FY 2011
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FY 2010
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10.3% 12.5%
77.2%
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10.8% 12.4%
Australasia
North America
Europe
76.8%
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Total Tonnes (‘000’s)	FY 2011	FY 2010	Change (%)
Australasia North America Europe	1,774	1,597	11.1
	10,964	9,906	10.7
	1,466	1,394	5.2
Total	14,204	12,897	10.1

Sales Volume by Product

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FY 2011
4.0% 0.3%
24.8%
38.1%
32.8%
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FY 2010
0.3%
Ferrous Shredded (inc. 4.4%
NFSR)
Other Processed 25.3%
Ferrous
40.0%
Ferrous Brokerage
Non Ferrous
Trading/Brokerage
Other
30.0%
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Total Tonnes (‘000’s)	FY 2011	FY 2010	Change (%)
Ferrous Shredded (inc. NFSR) Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading/Brokerage Other*	5,416 4,663 3,518 571 36	5,164 3,866 3,264 565 38	4.9 20.6 7.8 1.1 (5.3)
Total	14,204	12,897	10.1

• Ferrous brokerage tonnes associated with SAR JV were 2.2 million and 1.9 million tonnes for FY2011 and FY2010, respectively.

Sales by Destination

FY 2011

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23%
31%
14%
2%
1%
3%
10%
16%
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Europe

FY 2010

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16%
37%
14%
3%
1% 18%
1% 10%
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• Domestic sales refer to sales in country of sourcing

NE Asia

China & HK

SE Asia & Oceania

Middle East USA/Canada

South/Central America

Domestic Sales

Group Income Statement

$m	FY 2011	FY 2010	Change ($)	Change (%)
Sales Revenue EBITDA EBIT Net Interest Expense Tax Expense Net Profit After Tax*	$ 8,846.8 431.7 301.1 (23.9) (85.1) $ 192.1	$ 7,452.6 352.9 208.1 (13.6) (67.8) $ 126.7	$ 1,394.2 78.8 93.0 (10.3) (17.3) $ 65.4	18.7 22.3 44.7 (75.7) (25.5) 51.6

*FY2010 presented EBITDA is before impairment of other intangibles of $0.9 million.

Group Balance Sheet

$m	FY 2011	FY 2010	**Change ($) **	Change (%)
Current Assets Non-current Assets Total Assets Current Liabilities Non-current Borrowings Other Non-current Liabilities Total Liabilities Net Assets/Equity Net Debt (Cash)/[Net Debt (Cash) +Equity] (%)	1,766.5 2,413.3 4,179.8 823.3 291.2 144.8 1,259.3 2,920.5 4.1%	1,494.1 2,745.6 4,239.7 674.1 116.6 170.2 960.9 3,278.8 (0.5)%	272.4 (332.3) (59.9) 149.2 174.6 (25.4) 298.4 (358.3) -	18.2 (12.1) (1.4) 22.1 149.7 (14.9) 31.1 (10.9) -

Group Cash Flow

$m	FY 2011	FY 2010	Change ($)
Profit / (Loss) for the year Adjustments for non-cash items Depreciation and amortisation Share-based payment Equity accounted profits net of dividends received Other Change in operating assets and liabilities Net cash inflow / (outflow) from operating activities Payments for PP&E Payments on acquisitions of subsidiaries, net of cash acquired Payments for other financial assets Loan to a third party Proceeds from sale of PP&E Proceeds from sale of other financial assets Proceeds from repayment on a third party loan Return of capital from jointly controlled entities Net cash outflow from investing activities Net cash (outflows) / inflows from operating & investing activities	192.1 130.6 15.7 (13.7) (11.7) (154.4) $ 158.6 (142.8) (105.8) (28.3) (10.2) 3.9 54.8 3.3 - $ (225.1) $ (66.5)	126.7 143.9 16.9 5.2 1.1 (341.3) $ (47.5) (120.9) (113.4) (22.8) - 8.1 - - 0.4 $ (248.6) $ (296.1)	65.4 (13.3) (1.2) (18.9) (12.8) 186.9 $ 206.1 (21.9) 7.6 (5.5) (10.2) (4.2) 54.8 3.3 (0.4) $ 23.5 $ 229.6

North America Regional Results

	FY 2011	FY 2010	Change (%)
Sales Revenue ($m) EBITDA ($m) Depreciation EBITA ($m) Amortisation of intangibles EBIT ($m) *Assets ($m) Employees Sales Margin (%)	$ 5,993.0 $ 197.4 (56.3) $ 141.1 (26.0) $ 115.1 $ 2,656.0 3,503 12.8%	$ 5,040.0 $ 178.6 (64.4) $ 114.2 (32.3) $ 81.9 $ 3,032.3 3,338 15.7%	18.9 10.5 12.6 23.6 19.5 40.5 (12.4) 4.9 -

*Pre-impairment of other intangibles (FY10).

Australasia Regional Results

	FY 2011	FY 2010	Change (%)
Sales Revenue ($m) EBITDA ($m) Depreciation ($m) EBITA ($m) Amortisation of intangibles ($m) EBIT ($m) Assets ($m) Employees Sales Margin (%)**	$ 1,369.2 $ 108.7 (21.4) $ 87.3 (0.3) $ 87.0 $ 633.0 942 22.1	$ 1,221.3 $ 102.2 (21.0) $ 81.2 (0.1) $ 81.1 $ 562.8 841 22.1%	12.1 6.4 (1.9) 7.5 (200.0) 7.3 12.5 12.0 -

Europe Regional Results

	FY 2011	FY 2010	Change (%)
Sales Revenue ($m) EBITDA ($m) Depreciation ($m) EBITA ($m) Amortisation of intangibles ($m) EBIT ($m) Assets ($m) Employees Sales Margin (%)	$ 1,484.6 $ 126.4 (24.1) $ 102.3 (2.1) $ 100.2 $ 890.8 1,727 24.7	$ 1,191.3 $ 91.9 (22.9) $ 69.0 (2.4) $ 66.6 $ 644.6 1,307 27.6%	24.6 37.5 (5.2) 48.3 12.5 50.5 38.2 32.1 -

Right. Now.

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