SIMS LIMITED — Interim / Quarterly Report 2013

Feb 21, 2013

Interim results – Supplemental Materials Half year ended 31 December 2012

Daniel W. Dienst , Group Chief Executive Officer Rob Larry , Group Chief Financial Officer 22 February 2013

Disclaimer

Cautionary Statements Regarding Forward-Looking Information

This presentation may contain forward-looking statements, including statements about Sims Metal Management’s financial condition, results of operations, earnings outlook and prospects. Forward-looking 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 12 October 2012.

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.

All references to currencies, unless otherwise stated, reflect measures in Australian dollars.

Appendices

A. Financial Results Details

B. Progress Towards Strategic Goals

C. Macroeconomic Analytics

D. Summary of Restated Financial Statements

Appendix A) Financial Results Details

Financial Overview

	HY 2013	Restated HY 2012	Change (%)
Sales Revenue ($m) EBITDA ($m) Underlying EBITDA ($m) Goodwill & Intangible Asset Impairment ($m) Depreciation ($m) Amortisation ($m) EBIT ($m) Underlying EBIT ($m) NPAT ($m) Underlying NPAT ($m) *EPS (cents) – diluted Underlying EPS (cents) – diluted Net cash inflow from operating activities ($m) Capital Expenditures ($m) Net Debt ($m) Net Debt/(Net Debt + Equity) (%) Sales Tonnes (‘000) (exc. associates) Interim Dividend (0% franked for HY 2012) (cents per share)*	3,428.5	4,583.9	(25.2)
	32.6	99.5	(67.2)
	93.8	140.0	(33.0)
	291.3	672.3	(56.7)
	50.3	51.4	(2.1)
	11.9	12.9	(7.8)
	(320.9)	(637.1)	49.6
	31.6	75.7	(58.2)
	(295.5)	(633.2)	53.3
	10.0	41.6	(76.0)
	(144.5)	(307.2)	53.0
	4.8	20.0	(75.8)
	76.4	17.0	349.4
	82.2	68.6	19.8
	292.8	324.1	(9.7)
	13.1	12.3	-
	5,927.5	7,150.8	(17.1)
	0.0	10.0	(100.0)

*Underlying EBITDA, EBIT, NPAT and EPS are adjusted to exclude significant items as listed on slide 9.

Sales Revenue by Region

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HY 2013
16.7%
23.7% Australasia
North America
Europe
59.6%
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HY 2012
13.9%
19.7%
66.4%
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$m	HY 2013	HY 2012	Change (%)
Australasia North America Europe	573.6	639.2	(10.3)
	2,043.3	3,044.1	(32.9)
	811.6	900.6	(9.9)
Total	$ 3,428.5	$ 4,583.9	(25.2)

• HY2013 sales revenue was mostly impacted by a 1.2 million tonne (17%) reduction in shipments compared to PCP which was mostly related to North America. Realised selling prices were also lower in HY2013 when compared to PCP.

Sales Revenue by Product

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HY 2013 HY 2012
0.8% Ferrous Trading 1.4%
15.3% 10.8%
Non Ferrous Shred
Recovery
47.0% 47.9%
Ferrous Brokerage
18.3%
19.2% Non Ferrous
Trading/Brokerage
Recycling Solutions
17.4%
13.3% 4.4% Manufacturing/JVs
4.2%
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$m	HY 2013	HY 2012	Change (%)
Ferrous Trading Non Ferrous Shred Recovery Ferrous Brokerage Non Ferrous Trading/Brokerage Recycling Solutions Manufacturing/Other	$ 1,611.9	$ 2,194.8	(26.6)
	150.5	191.7	(21.5)
	456.5	797.0	(42.7)
	659.2	840.9	(21.6)
	522.2	496.9	5.1
	28.2	62.6	(54.8)
Total	$ 3,428.5	$ 4,583.9	(25.2)

• Ferrous brokerage sales associated with SAR JV were $253.9 million and $505.0 million, in HY 2013 and HY 2012, respectively.

• Decline in Manufacturing/Other is primarily related to the divestiture of a significant part of a lead smelter.

EBITA (pre-goodwill & intangible asset impairment) by Region

-$30 -$20 -$10 $0 $10 $20 $30 $40 $50 ($’s in millions)	-$30 -$20 -$10 $0 $10 $20 $30 $40 $50 ($’s in millions)	-$30 -$20 -$10 $0 $10 $20 $30 $40 $50 ($’s in millions)	-$30 -$20 -$10 $0 $10 $20 $30 $40 $50 ($’s in millions)	-$30 -$20 -$10 $0 $10 $20 $30 $40 $50 ($’s in millions)
$m		HY 2013	Restated HY 2012	Change (%)
Australasia (2) North America (2) Europe (2)		15.7	41.2	(61.9)
		(25.7)	(1.9)	(1,252.6)
		(5.0)	9.1	(154.9)
EBITA by Region (1) Unallocated Group Corporate Costs Amortisation of intangibles		$ (15.0)	$ 48.4	(131.0)
		(2.7)	(0.3)	(800.0)
		(11.9)	(12.9)	7.8
EBIT (pre-goodwill & intangible asset impairment)		$ (29.6)	$ 35.2	(184.1)
Goodwill & intangible asset impairment		(291.3)	(672.3)	56.7
EBIT (post-goodwill & intangible asset impairment)		$ (320.9)	$ (637.1)	49.6

Significant Items by Region

	Australasia	North America	Europe	Group Corporate	Pre-Tax Total	After-Tax Total
$m	HY 2013
Goodwill & Intangible Asset Impairment Inventory Adjustments to Net Realisable Value Redundancy Provisions Loss on Sale of Businesses Loss on Revaluation of CTG Derivatives Superstorm Sandy costs Fixed Asset Impairment Bad Debt and Similar Provisions Provisions Related to Settlement of Disputes Commercial Settlements	$ -	$ 283.7	$ -	$ 7.6	$ 291.3	$ 259.0
	-	2.7	18.0	-	20.7	15.3
	0.4	1.7	-	-	2.1	1.3
	1.3	10.5	-	-	11.8	11.1
	2.9	-	-	-	2.9	2.9
	-	5.4	-	-	5.4	3.4
	-	14.8	-	-	14.8	9.2
	-	-	2.0	-	2.0	1.4
	-	3.3	-	-	3.3	3.3
	-	-	(1.8)	-	(1.8)	(1.4)
Total Significant Items for HY2013	$ 4.6	$ 322.1	$ 18.2	$ 7.6	$ 352.5	$ 305.5
Goodwill Impairment Inventory Adjustments to Net Realisable Value Credit Loss Due to Bankruptcy of a Customer Final Settlement of a Business Arrangement Prior Period Impairment Reversal	Restated HY 2012
	$ 3.6	$ 568.3	$ 100.4	$ -	$ 672.3	$ 647.9
	1.7	6.0	25.4	-	33.1	23.5
	-	4.4	-	-	4.4	2.7
	-	6.0	-	-	6.0	3.7
	-	-	(3.0)	-	(3.0)	(3.0)
Total Significant Items for HY2012	$ 5.3	$ 584.7	$ 122.8	$ -	$ 712.8	$ 674.8

EBITA (pre-goodwill & intangible asset impairment) by Product

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$60
47.7
$50
$40
31.0
29.5
$30 HY 2013
18.3
$20 12.9 14.5 HY 2012
8.8
$10 5.8 5.2
$0
-$10 -6.0
($’s in millions)
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$m	HY 2013	Restated HY 2012	Change (%)
Ferrous Trading (incl. NFSR) Ferrous Brokerage Non Ferrous Trading/Brokerage Recycling Solutions Manufacturing/JVs/Other	12.9	47.7	(73.0)
	8.8	5.8	51.7
	18.3	29.5	(38.0)
	14.5	31.0	(53.2)
	5.2	(6.0)	186.7
EBITA by Product Group & Regional Corporate Costs Amortisation of intangibles	$ 59.7	$ 108.0	(44.7)
	(77.4)	(59.9)	(29.2)
	(11.9)	(12.9)	7.8
EBIT (pre-goodwill & intangible asset impairment)	$ (29.6)	$ 35.2	(184.1)

• EBITA by product is presented pre-corporate costs (both group and regional head office costs) and amortisation of intangibles.

• EBITA by product is before add back of significant items and does not reflect any allocation of the write-off of goodwill and intangible asset impairments to the product categories.

• Recycling Solutions includes adverse impact from inventory adjustments of $13 million in HY2013 and $19 million in HY2012.

• Significant items included in the Group & Regional Corporate Costs totalled $25.8 million in HY2013 (related to loss on the sale of businesses and fixed asset impairments) and $6.0 million in HY2012.

Intake Volumes by Region

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HY 2013
14.3%
13.8%
Australiasia
North America
Europe
71.9%
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HY 2012

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12.5%
11.9%
75.6%
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Total Tonnes (‘000’s)	HY 2013	Restated HY 2012	Change (%)
Australasia North America Europe	859	907	(5.3)
	4,314	5,500	(21.6)
	827	865	(4.4)
Total	6,000	7,272	(17.5)

Intake Volumes by Product

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HY 2013 HY 2012
Ferrous Shredded
4.7% 0.3% (incl. NFSR) 3.8% 0.3%
Other Processed
Ferrous
21.1%
25.5%
36.9% Ferrous Brokerage 36.7%
Non Ferrous
Trading/Brokerage
Other
37.0% 33.7%
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Total Tonnes (‘000’s)	HY 2013	Restated HY 2012	Change (%)
Ferrous Shred (inc. NFSR) Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading/Brokerage Other	2,218	2,670	(16.9)
	2,219	2,454	(9.6)
	1,264	1,851	(31.7)
	282	276	2.2
	17	21	(19.0)
Total	6,000	7,272	(17.5)

• Ferrous brokerage tonnes associated with SAR JV were 0.7 million and 1.1 million tonnes for HY 2013 and HY 2012, respectively.

Sales Volumes by Region

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HY 2013
13.4% 15.2%
Australiasia
North America
Europe
71.4%
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HY 2012
11.3% 12.0%
76.7%
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Total Tonnes (‘000’s)	HY 2013	HY 2012	Change (%)
Australasia North America Europe	899	855	5.1
	4,233	5,488	(22.9)
	795	808	(1.6)
Total	5,927	7,151	(17.1)

Sales Volumes by Product

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HY 2013 HY 2012
Ferrous Shredded
4.5% 0.3% (inc. NFSR) 4.0% 0.4%
Other Processed
Ferrous
21.3% 37.6% Ferrous Brokerage 37.3%
25.1%
Non Ferrous
Trading/Brokerage
Other
36.3% 33.2%
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Total Tonnes (‘000’s)	HY 2013	HY 2012	Change (%)
Ferrous Shred (inc. NFSR) Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading/Brokerage Other	2,227	2,668	(16.5)
	2,150	2,376	(9.5)
	1,263	1,790	(29.4)
	266	288	(7.6)
	21	29	(27.6)
Total	5,927	7,151	(17.1)

• Ferrous brokerage tonnes associated with SAR JV were 0.7 million and 1.1 million tonnes for HY 2013 and HY 2012, respectively.

Group Income Statement

$m	HY 2013	Restated HY 2012	Change ($)	Change (%)
Sales Revenue EBITDA Underlying EBITDA EBIT Underlying EBIT Net Interest Expense Tax Benefit Net (Loss) Profit After Tax Underlying Net Profit After Tax	$ 3,428.5	$ 4,583.9	(1,155.4)	(25.2)
	32.6	99.5	(66.9)	(67.2)
	93.8	140.0	(46.2)	(33.0)
	(320.9)	(637.1)	316.2	49.6
	31.6	75.7	(44.1)	(58.3)
	(9.1)	(10.4)	1.3	12.5
	34.5	14.3	20.2	141.3
	$ (295.5)	$ (633.2)	337.7	53.3
	$ 10.0	$ 41.6	(31.6)	(76.0)

Group Balance Sheet

$m	As of 31 December 2012	Restated As of 30 June 2012	Change ($)	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] (%)	$ 1,356.0	$ 1,429.1	(73.1)	(5.1)
	1,721.2	2,079.9	(358.7)	(17.2)
	3,077.2	3,509.0	(431.8)	(12.3)
	645.2	734.2	(89.0)	(12.1)
	363.9	329.9	34.0	10.3
	120.3	161.2	(40.9)	(25.4)
	1,129.4	1,225.3	(95.9)	(7.8)
	$ 1,947.8	$ 2,283.7	(335.9)	(14.7)
	13.1	11.3	-	-

Strategic Capital Allocations & Distribution to Shareholders

$m	HY 2013	HY 2012	Change ($)
Net Cash Inflow from Operating Activities CAPEX, net Acquisitions, net of cash acquired Share Repurchases Dividends Proceeds from sale of businesses including JV’s	$ 76.4	$ 17.0	$ 59.4
	77.7	65.0	12.7
	20.0	64.3	(44.3)
	8.6	25.2	(16.6)
	20.4	48.7	(28.3)
	52.2	-	52.2

North America Regional Results

	HY 2013	HY 2012	Change (%)
Sales Revenue ($m) EBITDA ($m) (1) Underlying EBITDA ($m) (2) Depreciation ($m) EBITA ($m) (1) Underlying EBITA ($m) (2) Goodwill & Intangible Asset Impairment ($m) Amortisation of intangibles ($m) EBIT ($m) (1) Underlying EBIT ($m) (2) Assets ($m) Employees Sales Margin (%)	$ 2,043.3	$ 3,044.1	(32.9)
	$ (0.5)	$ 24.5	(102.0)
	$ 37.9	$ 40.9	(7.3)
	(25.2)	(26.4)	4.5
	$ (25.7)	$ (1.9)	(1,252.6)
	$ 12.7	$ 14.5	(12.4)
	(283.7)	(568.3)	50.1
	(10.6)	(11.5)	7.8
	$ (320.0)	$ (581.7)	45.0
	$ 2.1	$ 3.0	(30.0)
	$ 1,669.7	$ 2,157.3	(22.6)
	3,744	3,804	(1.6)
	15.4%	11.4%	-

(1) Excludes Group Corporate costs.

(2) Underlying EBITDA, EBITA and EBIT are adjusted for significant items. See schedule of significant items on page 9.

Australasia Regional Results

	HY 2013	HY 2012	Change (%)
Sales Revenue ($m) EBITDA ($m) (1) Underlying EBITDA ($m) (2) Depreciation ($m) EBITA ($m) (1) Underlying EBITA ($m) (2) Goodwill Impairment Amortisation of intangibles ($m) EBIT ($m) (1) Underlying EBIT ($m) (2) Assets ($m) Employees Sales Margin (%)	$ 573.6	$ 639.2	(10.3)
	$ 27.9	$ 53.7	(48.0)
	$ 32.5	$ 55.4	(41.3)
	(12.2)	(11.9)	(2.5)
	$ 15.7	$ 41.8	(62.4)
	$ 20.3	$ 43.5	(53.3)
	-	(3.6)	100.0
	(0.4)	(0.4)	-
	$ 15.3	$ 37.8	(59.5)
	$ 19.9	$ 43.1	(53.8)
	$ 708.8	$ 650.4	9.0
	968	960	0.8
	20.6%	20.2%	-

(1) Excludes Group Corporate costs.

(2) Underlying EBITDA, EBITA and EBIT are adjusted for significant items. See schedule of significant items on page 9.

Europe Regional Results

	HY 2013	Restated HY 2012	Change (%)
Sales Revenue ($m) EBITDA ($m) Underlying EBITDA ($m) (1) Depreciation ($m) EBITA ($m) Underlying EBITA ($m) (1) Goodwill Impairment ($m) Amortisation of intangibles ($m) EBIT ($m) Underlying EBIT ($m) (1) Assets ($m) Employees Sales Margin (%)	$ 811.6	$ 900.6	(9.9)
	$ 7.7	$ 22.0	(65.0)
	$ 25.9	$ 44.4	(41.7)
	(12.7)	(12.9)	1.6
	$ (5.0)	$ 9.1	(154.9)
	$ 13.2	$ 31.5	(58.1)
	-	(100.4)	100.0
	(0.9)	(1.0)	10.0
	$ (5.9)	$ (92.3)	(93.6)
	$ 12.3	$ 30.5	(59.7)
	$ 698.7	$ 726.0	(3.8)
	1,845	1,846	(0.1)
	18.4%	18.3%	-

(1) Underlying EBITDA, EBITA and EBIT are adjusted for significant items. See schedule of significant items on page 9.

Appendix B) Progress Towards Strategic Goals

Progress towards strategic goals

1) Targeted cost reduction

2) Portfolio optimization

• Underlying controllable costs reduced by $28m in North America Metals, $10m in Australia Metals, and $5m in UK Metals, exceeding management targets

• Further cost savings targeted for 2H FY13; including Global SRS

• Solidify leadership positions in core markets

• Divestment of non-core or low ROI businesses (i.e., Colorado, Nashville, and Arizona)

• Expanding New England, and Gulf Regions in the US and growing Australia Metals in WA and SA

• Optimizing UK Metals platform around key yards

3) E-Recycling platform

4) Advance in emerging economies

• Enhancing recovery rates via new technologies, in a maturing market

• Creating platform in China via investment in ChihoTiande Group, while reviewing other opportunities

• Capitalizing on unrivaled global footprint

• Acquisitions of Genesis Recycling in Canada, and E-Structors in Baltimore MD during 1H FY13

• Long-term strategy of building scalable entry points into emerging markets, via leveraging our ecosystem of e-recycling, municipal recycling, nonferrous, and ferrous capabilities

• Maturation of internal control environment

1) Targeted cost reductions achieved�

North America Metals

• Controllable costs reduced by $4.7m per month exceeding $4m per month target

U.K. Metals

• Controllable costs reduced by $0.8m per month, inline with management expectations, with the business continuing to track toward a $1.5m per month run rate during 2H FY13

Australia Metals

• Controllable costs reduced by $10m year-on-year, exceeding management expectations

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Controllable Cost Bridge HY12 to HY13
A$m 600
550 8
42
28 7
10
500 578 570 5 15 591
549
450
400
Items North America Metals UK Metals Global SRS and Other Items
HY12 Significant Australia Metals HY13 Significant
Costs (Statutory) Costs (Statutory)
HY12 Controllable HY12 Controllable Costs (Underlying) Group Unallocated HY13 Controllable Costs (Underlying) HY13 Controllable
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• Controllable costs includes; Employee benefits, Repairs & maintenance, and Other expenses

1) �with further cost reductions identified

North America Metals

• Management is targeting a further $2 million per month in cost reductions bring the aggregate cost savings to $6 million per month by the end of FY13

Australia Metals

• Management projects cost reductions to stabise in the second half at an annualised run rate of circa

• $20 million per annum by the end of FY13

Total controllable cost reduction run rate of over circa $100 million per annum by end of FY13

UK Metals and Global SRS

• Rigorously examining further cost savings opportunities in UK Metals and Global SRS

• Update to be provided with full year results

2) Asset portfolio optimization

North America Metals

• Directing capital to the highest returning assets, with emphasis towards “brown water ” (river) and “blue water” (export) facilities in scrap rich regions where we can achieve a leadership position, source control, and solid ROI’s through the cycle

• Growing footprint in the Gulf, New England, and Texas & Oklahoma

• Acquisition of shredder and feeder yards in the Gulf Region

• Development of New England metals recycling footprint with a greenfield facility in Rhode Island to be completed in September 2013

• Freeing up capital by monetizing less strategic, lower returning assets

• Divestment of Colorado and Arizona metals recycling assets, and Nashville JV interest

• Reduced controllable costs and shuttered negative returning businesses

Australia and New Zealand Metals

• Expanding operations in Western Australia and recently acquired a metals recycling in South Australia

UK Metals

• Re-alignment of processing and commercial activities underway

2) North American Metals asset portfolio

• Richmond Steel 50% JV in British Columbia, Canada not shown

3) E-Recycling platform

• Leveraging unrivalled global footprint to capture new customer relationships

• Creating synergies through sharing our best-inclass technology and business practices across global operations

• Applying low capital entry into emerging markets

• Nov 2012 opening of new SRS facility in Dubai, U.A.E.

• Backlog of growth opportunities to be judiciously evaluated

• Simplification of SRS & UK Metals operations post UK inventory issue, with new discipline to

• UK & SRS material recovery “laboratory” and enhanced inventory controls

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US$bn Global E-Recycling Market
Revenue Forecasts
25
20 17% CAGR
15
10
5
0
2011 2012 2013F 2014F 2015F 2016F
Source: Markets and Markets
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Global SRS Operations

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51 facilities
across 7 countries and 5 continents
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4) Advance in emerging economies

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Implied Chinese ferrous scrap consumption
160
140 Mt annualized
120 Domestic
100 Imports
80
60
40
20
0
2002 2004 2006 2008 2010 2012
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Source: Macquarie Research

China

• Over 50% of global secondary copper smelting capacity

• Implied ferrous scrap consumption more than tripled over the past 10 years

• Metals recycling industry still in its infancy, SimMM setting position for the longer-term transition to a consumer/wasteful economy

EAF Crude Steel Production

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China
80
Mt 70,900
70
60
India
50
43,100
40
30
20
Turkey
10
25,275
2000 2002 2004 2006 2008 2010
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Chiho-Tiande Group (CTG)

• SimsMM investment in CTG, one of the largest mix metal recyclers in China, provides a critical foothold in the rapidly growing market

Additional opportunities being explored

• Continued exploration of JV opportunities for both metals recycling and SRS businesses

Source: World Steel Association

4) Advance in emerging economies

New Market Entry Platform Established Market Platform Municipal Metals Metals Full Service E-recycling Recycling Trading Recycling Offering

• Leveraging our suite of competencies from e-recycling to metals recycling to create scalable, low capital risk entry platforms into emerging markets

• Capitalizing on our expertise, personnel and technology to grow our franchise in emerging markets as they transform into significant generators of post-consumer scrap

Appendix C) Macroeconomic Analytics

US scrap generation set to accelerate

US scrap generation is tied to GDP growth

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14,000
US GDP (constant terms)
12,000 US$bn
10,000
R² = 0.814
8,000
6,000
4,000
Scrap Generation
2,000
thousand tonnes
0
0 20,000 40,000 60,000 80,000
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Source: USGS, BEA

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US scrap generation accelerates in post recession periods Post recession scrap growth scenarios
Scrap generation Mt Post 1982 scenario
Mt
100 US GDP growth (RHS) 8% Post recession 100 Post 1991 scenario
scrap growth
6% Post 2001 scenario
80 80
4% 1982: 6.7% CAGR
60 60
2% over 8 years
40 0% 40
1991 : 1.7% CAGR
-2%
over 10 years 20
20
-4%
2001: 4.0% CAGR 0
0 -6%
Over 6 years
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Source: USGS, BEA

US consumer scrap lifting off all-time lows

Post consumer shreddable material tracking near 30 year lows

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80
Kg per capita LT Avg
70
60
50
40
30
20
10
0
Source: Conference Board, NADA, EPA, AHAM, US Census
Ferrous scrap from vehicles, major appliances, steel packaging & containers
Appliance scrap set to get kick from
improving new home sales
60 1.4
million million
1.2
50
1.0
40
0.8
30
0.6
20
0.4
US Major appliance sales
10 0.2
US new home sales (RHS)
0 0.0
----- End of picture text -----*

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Improving vehicle sales leading the recovery,
though scrapping rates typically follow at a lag
20
million
18
16
14
12
10
8
6
Vehicle sales
4
2 Vehicle Scappage
0
----- End of picture text -----

Source: Wards Auto, Polk, DOT

Source: AHAM, US Census

US consumer activity key to scrap recovery

• Positive signals in the US as consumer confidence has steadily increased, yet remains materially lower than pre-GFC highs

• Improved consumer confidence will likely translate into increased generation of consumer scrap from vehicles and major appliances

• US consumer scrap generation remains low at 53kg per capita vs. long-term avg of 62kg per capita*. Normalization back to the long-term avg would add over 3 million tonnes of shreddable per annum�

� enough to push shredder utilization rates back to pre-GFC levels

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US consumer scrap per capita (RHS)
160 75
US consumer confidence kg
140 70
120
65
100
60
80
55
60
50
40
20 45
0 40
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
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Source: Conference Board, NADA, EPA, AHAM, US Census

• Ferrous scrap from vehicles, major appliances, steel packaging & containers

US shredding capacity moderating

• Since 2006 the average horsepower (HP) of shredder installations has dropped materially, causing the national average HP of all installed shredders to drop 6% over past 6 years

• Since 1998 total US shredder capacity by HP has grown at a moderate 2% CAGR

• US market shredding capacity remains in excess of current market supply, however future supply may meet and eclipse current capacity

• While overcapacity continues to be a near-term issue, this should return to balance when consumer scrap generation flows normalize

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Average Shredder Horsepower in decline
4900 350
Avg Horsepower Auto Shredders (RHS)
4800 Average Horsepower 300
250
4700
200
4600
150
4500
100
4400
50
4300 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Source: Recycling Today, Company data

Increasing global demand for scrap

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

EAF Steel Production (ex-China)
400 % of total 50%
EAF Production
40%
300
30%
200
20%
100
10%
0%
2000 2002 2004 2006 2008 2010
70%
EAF as % of total steel production
60%
50%
40%
30%
20%
10%
0%
1975 1980 1985 1990 1995 2000 2005 2010 2011
United States France Germany China
----- End of picture text -----

• Growth in Electric Arc Furnace (EAF) steel production driving higher ferrous scrap demand

• Global EAF crude steel production has grown at a CAGR of 4.1% over 2000-2011

• EAF output ex-China has lifted to 44% of total steel production as both advanced and developing economies shift production methods

• Scrap demand in China anticipated to increase over time as steel production shifts towards EAF inline with other more mature economies

• Turkey is planning to increase its EAF capacity by 8.8Mt by 2015.

• Russia is planning to increase EAF capacity by 6Mt

• Vietnam announced plans to add 5Mt of EAF capacity by 2015 and up to more 20Mt by 2022

Source: World Steel Association

Appendix D) Summary of Restated Financial Statements

Financial Overview - Restated

	FY 2012	FY 2011	FY 2010
Sales Revenue ($m) EBITDA ($m) Underlying EBITDA ($m) Goodwill & Intangible Asset Impairment ($m) Depreciation ($m) Amortisation ($m) EBIT ($m) *Underlying EBIT ($m) NPAT ($m) Underlying NPAT ($m) EPS (cents) – diluted Underlying EPS (cents) – diluted Net cash inflow / (outflow) from operating activities ($m) Capital Expenditures ($m) Net Debt / (Net Cash) ($m) Net Debt/(Net Debt + Equity) (%) *Sales Tonnes (‘000) (exc. associates) Full Fiscal Year Dividend (cents per share)	9,035.7	8,846.8	7,452.6
	182.2	423.7	343.1
	253.2	414.0	350.5
	675.6	-	0.9
	103.1	102.2	109.1
	26.8	28.4	34.8
	(623.3)	293.1	198.3
	123.3	283.4	206.6
	(622.5)	187.3	121.4
	68.3	182.0	127.3
	(302.4)	90.9	61.8
	32.9	88.4	64.8
	289.6	158.6	(47.5)
	161.1	142.8	120.9
	292.2	126.2	(15.1)
	11.3	4.2	(0.5)
	14,503.3	14,204.3	12,896.6
	20.0	47.0	33.0

*FY 2012, FY 2011 and FY 2010 restated, except for Goodwill & Intangible Asset Impairment which was restated for FY 2012 only.

EBITA (pre-goodwill & intangible asset impairment) by Region - Restated

$m	FY 2012	FY 2011	FY 2010
Australasia North America (1) Europe (2)	106.3	87.3	81.2
	(25.7)	140.6	113.1
	4.1	95.7	61.6
EBITA by Region Unallocated Group Corporate Costs Amortisation of intangibles	$ 84.7	$ 323.6	$ 255.9
	(5.6)	(2.1)	(21.9)
	(26.8)	(28.4)	(34.8)
EBIT (pre-goodwill & intangible asset impairment)	$ 52.3	$ 293.1	$ 199.2
Non-cash goodwill & intangible asset impairment	(675.6)	-	(0.9)
EBIT (post-goodwill & intangible asset impairment)	$ (623.3)	$ 293.1	$ 198.3

(1) FY 2010 adjusted for Other Intangible Asset Impairment not previously considered in prior supplemental slides. (2) FY 2012, FY 2011 and FY 2010 restated.

EBITA (pre-goodwill & intangible asset impairment) by Product - Restated

$m	FY 2012	FY 2011	FY 2010
Ferrous Trading (incl. NFSR) (1) Ferrous Brokerage Non Ferrous Trading (2) Non Ferrous Brokerage Recycling Solutions (3) Manufacturing/JVs/Other	52.2	181.7	133.2
	14.6	23.4	21.4
	71.4	92.9	95.7
	1.1	1.6	3.2
	57.8	107.8	82.0
	19.1	30.0	26.9
EBITA by Product Group & Regional Corporate Costs (2) Amortisation of intangibles	$ 216.2	$ 437.4	$ 362.4
	(137.1)	(115.9)	(128.4)
	(26.8)	(28.4)	(34.8)
EBIT (pre-goodwill & intangible asset impairment)	$ 52.3	$ 293.1	$ 199.2

(1) FY 2012 Ferrous Trading restated.

(2) FY 2010 adjusted for Other Intangible Asset Impairment not previously considered in prior supplemental slides. (3) FY 2012, FY 2011 and FY 2010 restated.

Intake Volumes by Region & Product – Restated

Total Tonnes (‘000’s)	FY 2012
Australasia North America Europe*	1,791
	10,908
	1,687
Total	14,386
Total Tonnes (‘000’s)	FY 2012
Ferrous Shred (inc. NFSR) Other Processed Ferrous Ferrous Brokerage Non Ferrous Trading/Brokerage Other**	5,021
	5,146
	3,613
	559
	47
Total	14,386

*FY 2012 restated.

Group Income Statement - Restated

$m	FY 2012	FY 2011	FY 2010
Sales Revenue EBITDA Underlying EBITDA EBIT Underlying EBIT Net Interest Expense Tax Benefit (Expense) *Net (Loss) Profit After Tax Underlying Net Profit After Tax*	$ 9,035.7	$ 8,846.8	$ 7,452.6
	182.2	423.7	343.1
	253.2	414.0	350.5
	(623.3)	293.1	198.3
	123.3	283.4	206.6
	(21.2)	(23.9)	(13.6)
	22.0	(81.9)	(63.3)
	$ (622.5)	$ 187.3	$ 121.4
	$ 68.3	$ 182.0	$ 127.3

*FY 2012, FY 2011 and FY 2010 restated.

Group Balance Sheet - Restated

$m	FY 2012	FY 2011	FY 2010
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] (%)	$ 1,429.1	$ 1,754.1	$ 1,486.9
	2,079.9	2,413.3	2,745.6
	3,509.0	4,167.4	4,232.5
	734.2	819.9	672.1
	329.9	291.2	116.6
	161.2	144.8	170.2
	1,225.3	1,255.9	958.9
	$ 2,283.7	$ 2,911.5	$ 3,273.6
	11.3	4.2	(0.5)

Europe Regional Results - Restated

	FY 2012	FY 2011	FY 2010
Sales Revenue ($m) EBITDA ($m) Underlying EBITDA ($m) Depreciation ($m) EBITA ($m) *Underlying EBITA ($m) Goodwill Impairment ($m) Amortisation of intangibles ($m) EBIT ($m) *Underlying EBIT ($m) Assets ($m) Employees Sales Margin (%)***	$ 1,780.6	$ 1,484.6	$ 1,191.3
	30.1	119.8	84.5
	84.5	116.1	91.9
	26.0	24.1	22.9
	4.1	95.7	61.6
	58.4	92.0	69.0
	102.9	-	-
	1.9	2.1	2.4
	(100.7)	93.6	59.2
	56.5	89.8	66.6
	709.6	878.5	637.3
	1,900	1,727	1,307
	17.9	24.3	26.9

*FY 2012, FY 2011 and FY 2010 restated, except for Goodwill Impairment which was restated for FY 2012 only.

Prepared for Today Positioned for Tomorrow