SIMS LIMITED — Investor Presentation 2015

Sep 8, 2015

Investor Strategy Day

New York, 8 September 2015

Agenda

• Strategy Update
• Streamline
  • -Planning & Initiatives
• Optimise
  • -Supplier Relationships
  • -Logistics
  • -Operational Excellence
  • -Product Quality & Services
• Grow
  • -Setting the Stage for Growth
  • -Global Electronics Recycling
• Summary

**Strategic Update and Next Steps:**Galdino Claro, Group CEO

New York, 8 September 2015

Clear 5 Year Strategic Plan

Project Management Office (PMO)

PMO:

• Central point for management, oversight, and tracking of group internal initiatives
• Dedicated teams across: Supplier Relationships, Logistics, Operational Excellence, and Product Quality (Ferrous & Non Ferrous)
• Executive level sponsorship for each functional team
• PMO reports to the Executive Leadership Team under direct supervision of the CFO

Oversight and management of internal initiatives at the highest levels

Results so far on track

FY18 targets reviewed, realistic, and reconfirmed

• Results so far have been encouraging with five year FY18 targets on track
• Only two years into five year plan, with much more to be accomplished
• Further earnings growth expected across:
  • -Additional fixed & operational cost reductions
  • -Complete global roll-out of supplier analysis platform
  • -Optimisation of logistics and freight expense reduction
  • -Continued best practice sharing across global footprint
  • -Growth through market share, market position, and market adjacencies

Less than half-way into five year plan with more gains to be realised

Core business stabilised and ready for the growth stage

Portfolio options for growth

• Ferrous and non-ferrous metal sales and profitability constrained by competitive markets
• Continued optimisation in metals recycling may create a stronger platform for acquisition of underperforming metals assets in new markets
• Municipal recycling has developed a successful model in New York City market that we could look to replicate in other markets
• E-recycling streamlining has positioned it better for growth
• Currently exploring other adjacencies in high margin recycling markets that would be accretive to our business

Opportunities for growth across the portfolio

9

Low High HighLowMarket ShareMarket Growth Grow Protect OptimiseFerrous MetalsNon-Ferrous MetalsMunicipal RecyclingElectronics RecyclingOtherStreamlineRelative ROC

Agenda

Strategy Update

Streamline

-Planning & Initiatives

Optimise

• -Supplier Relationships
• -Logistics
• -Operational Excellence
• -Product Quality & Services

Grow

• -Setting the Stage for Growth
• -Global Electronics Recycling
• Summary

Streamline: Planning & InitiativesFred Knechtel, Group CFO

New York, 8 September 2015

Return on capital focus

0%1%2%3%4%5%6%7%05001,0001,5002,0002,5003,0003,500Return on Capital A$ million Total Capital NOPAT ROCStart of 5 year plan

Return on Capital

Optimise – Gross Margin

• Supplier Relationships
• Logistics
• Operational Excellence
• Product Quality & Services

Streamline – Operating Costs

• Optimise operating asset base
• Variablisation of fixed cost
• Improve working capital turnover
• Disciplined capital investment

Optimisation will improve return on capital at lower volumes

Strengthening the business model

• Shifting fixed and variable expenses lower on the cost curve
• Variablising the fixed cost base to be more flexible in lower volume conditions
  • -Equipment rationalisation
  • -Outsourcing non-essential functions
  • -Flexible workforce solutions

Sales Volume (tonnes)

Lowering the cost curve to increase profitability at lower volumes

* 2015 YTD annualised

Budgeting & Planning

• Enhanced analytical framework developed to improve budgeting and planning cycle
• Using statistical analysis to better forecast and plan for market activity levels
• Addressing areas of market compression or expansion, and budgeting accordingly
• Proactively adjusting fixed and operational cost base to reflect market conditions

Applying robust analytics to budgeting & planning decisions

Forecast period

North America - Central Region streamline initiative

• Central Region challenged by high competition with low levels of supply
• Actions Taken (July 2015):
  • Idled Memphis, TN shredder
  • Closed 2 additional facilities
  • Consolidated office support functions
• Further Considerations:
  • Partner with local domestic steel mills for mutual beneficial solutions
  • Asset redeployment
• Viable resolution expected during FY16

Challenges identified with a range of potential viable solutions

ANZ Metals - New systems to reduce overhead cost

• ANZ Metals implemented new back-office technology platform for leaner work
  • Uses Microsoft AX as a financial hub linked with SAI operating system
  • Enabled optical character recognition technology (OCR) to minimise paper
  • Enhanced workflow for process efficiency and improved controls
• Reduced back-office finance headcount by more than 50%
• Other overhead costs lowered & improved balance sheet by optimising payables

Ability to leverage tools globally to realise additional savings

Agenda

• Strategy Update
• Streamline
  • -Planning & Initiatives

Optimise

• -Supplier Relationships
• -Logistics
• -Operational Excellence
• -Product Quality & Services
• Grow
  • -Setting the Stage for Growth
  • -Global Electronics Recycling
• Summary

Source: AMM, HMS East Coast Export US (fob)1) Total Raw Material & Freight Expenses less gains from commodity derivatives / Sales tonnes vs Total Sales Revenue / Sales tonnes

Optimise initiatives drives gross margin expansion

Optimise: Gross margin improvement

• Optimise initiatives have driven gross margin improvement of $47/t since the start of the strategic plan
• Margins expanded through:
  • Raw material source control
  • Metal yield & quality improvements
  • Leveraging Global Trade network
• Margins defended through:
  • 'Pull forward' sales system to minimise open inventory risks
  • Rapid adjustments to raw material intake prices

Gross Margin Trend1

Optimise: Core drivers of profitability

Optimise: Supplier Relationships & LogisticsJoe Payesko, President North America Metals – East Region

New York, 8 September 2015

• Supplier profitability analysis continues to drive margin improvement
• Reports analyse every tonne purchased by profitability, and deliver critical feedback to buyers
• The corresponding feedback loop reduces unprofitable tonnes, and expands relationships with profitable suppliers
• More than two years after the system was first introduced in a 'test' region, margins continue to expand

Top 25 Suppliers(North America Metals 'test' region)

Supplier analysis tools delivering higher margins without sacrificing volumes

Supplier Relationships: Leveraging Global Trade

'Pull system' linking the sales and buyer networks to protect margins

Source: Bureau of Transportation Statistics

Logistics: Maximising low cost freight capacity

• Extensive transportation optionality across the North America Metals footprint
• Increasing utilisation of low cost transport options across rail and barge
• Reducing internal and external trucking costs through:
  • -Dispatch optimisation
  • -Freight tracking software
  • -Freight audits
  • -Competitive sourcing tenders

East Region Transport Capabilities

• Internal fleet of over 110 trucks
• 9 facilities with rail access
• 7 facilities with barge access
• 7 deep water export docks

Leverage extensive transport network for further freight cost reductions

Logistics: Maximising low cost freight capacity

Maximising water based access as a key competitive advantage

* Additional deep water facility located in Albany, NY

Optimise: Operational ExcellenceDerek Michalowski, Director – Non-Ferrous Shred Recovery

New York, 8 September 2015

• Sharing best practice operating principles has driven a meaningful increase in metal shredding zorba recoveries 1
• Since the start of the 5 year plan, zorbarecovery rates across North America have sustainably improved by more than 10%
• Higher recovery rates have led to improved metallic yields, gross margins, and lower waste disposal costs

North America Metals'Zorba' Recovery Rate

Improving non-ferrous recoveries through sharing best practices

1 Zorba is shredded mixed non-ferrous metals consisting primarily of aluminium generated by eddy-current or other segregation techniques

Operational Excellence: Metal loss monitors

• Following successful trials, metal loss monitors have been installed on all downstream plants
• This new technology can provide data to plant operators to reduce metal loss to the waste stream with minimal investment
• This technology helps plant management improve non-ferrous recovery rates, while reducing waste disposal
• Information provided by the sensor(s) identify metal loss events that might otherwise go undetected

Raising recovery rates across all downstream facilities

Metal Loss Events

• 1. Q (15:30): "Is something different about the material?"
• 1. A1 (Supervisor - 16:00): "Nothing – running 40GT/hr with very dry material. We did bypass a DSRP prior to this last alarm – issues with wiper on edge of belt."
• 1. A2 (Manager - 17:00): "Monitor run rate when there is any bypassed equipment – less bed width must be compensated for with slower feed rate."

Metal Loss Rate Data

Increasing manufacturing control and product quality through new technology

Operational Excellence: Metal loss monitors

38% reduction in metal loss over 2 months

• Recently installed a new technology sensor machine at a downstream non-ferrous recovery plant to improve insulated copper wire (ICW) recoveries and quality
• In a post-audit analysis, the machine was shown to improve both recoveries and quality, yielding a 44% improvement in copper (Cu) units and 51% improvement in revenue
• Initial investment over annual revenue improvement yielded a cash flow payback of less than one year

	fBeore	fAter	Itmproemenv
ICWRi(%fDNF)ecovereso	069%	064%
CQ(%CC)IWlitttaonenuyu	%31	%48
CUiR(%fDNF)tunecoveryo	021%	031%	44%

Numerous small improvements compounding into large gains

Optimise: Product Quality & ServicesBill Schmiedel, President Global Trade

New York, 8 September 2015

Product Quality & Service: Global Trade

Simplifying the global trading structure

• Sharing of best practices between Ferrous and Non-Ferrous global trading groups is expected to deliver a number of benefits including:
  • -Leveraging of global network across all geographies and products
  • -Optimised information flow and timely dissemination of trade information
  • -Less reliance on 3rd party services

Sharing best practices across all products and geographies

Product Quality & Service: Global Trade

Leveraging overlapping ferrous and non-ferrous trade networks

Agenda

• Strategy Update
• Streamline
  • -Planning & Initiatives
• Optimise
  • -Supplier Relationships
  • -Logistics
  • -Operational Excellence
  • -Product Quality & Services
• Grow
  • -Setting the Stage for Growth
  • -Global Electronics Recycling
• Summary

Grow: Setting the stage for GrowthGaldino Claro, Group CEO

New York, 8 September 2015

Core business stabilised and ready for growth stage

Grow: Market share

• Supplier Relationships: Identify the most natural suppliers within our operational footprint and winning their business
• Logistics: Maximise barge, rail, and trucking capacity to profitably reach material from greater distances
• Operational Excellence: Use low cost operational footprint to secure additional material profitably
• Product Quality & Service: Ensure preferred supplier status from steel mills, smelters, and across e-recycling services

Using competitive advantages to grow market share

Grow: Market position

• Future material supply likely to be significantly different that present
• Increasing composition of electronics and alloys in consumer goods & vehicles will present new challenges and opportunities for the metals recycling industry
• Sims Metal Management is uniquely positioned to leverage technology from electronics recycling to capitalise on these opportunities, lead on industry innovation, and grow in new markets

Anticipating and capitalising on future shifts in the market

Grow: Market adjacencies

• Engage neighbouring markets where competitive strengths can be leveraged
• These may include:
  • • Attractive geographies boarding current markets or where growth opportunities exist
  • • Recycling of new materials not currently monetised
  • • New services or partnerships where value can be created

Investigate neighbouring markets where strengths can be leveraged

Grow: Global Electronics RecyclingSteve Skurnac, President Global SRS

New York, 8 September 2015

Global footprint over 20 countries

Broadest industry footprint with 33 global facilities

Best-in-class solutions in core markets

Commodity Recycling (WEEE)

• Large volume recycling of material from municipalities, compliance schemes, and equipment producers

Asset Management Services

• Manage the data destruction, reuse, resale and recycling of retired corporate IT assets

Engineering & Consulting Services

• Corporate focused with global footprint and best in class custom engineering and compliance solutions

Leveraging best-in-class skill sets across e-waste service landscape

Independently recognised market leader

Gartner Magic Quadrant for IT Asset Disposition

Industry recognised leader

A remarkable turnaround from 2 previous Statutory EBITyears of unsustainable losses:

• • Write offs and impairments in excess of $200 million combined in FY13 & FY14
• • Significant restructuring since 1 July 2014 based on the need to exit non-performing businesses and streamline other regions
• • Exits proceeded as planned, with better than expected performance in Continental Europe enhancing overall results

Global E-Recycling

A remarkable turnaround with stronger more sustainable earnings

A gradual shift to increase service revenues

• • Full-service, consultative Asset Management partner
• • Information source for strategic customer decisions
• • Advisor & partner through entire technical environment:Mobile, Cloud, Emerging
• Target Customers: Fortune 500
• Services provided only B2B

Unmatched service, standards, and global footprint

Committed to retain market leadership

Increasing investment In:

• Organisational Capital
  • • Leverage global footprint & best practices
• Intellectual Capital
  • • Upskill employees across disciplines
  • -Redefine roles
  • -Identify high potential employees
• Information Capital
  • -Metrics management
  • -Communication strategies

Maximising the businesses operational, intellectual, and information capital

A clear plan for delivery

Clear steps to deliver on strategic goals

Agenda

• Strategy Update
• Streamline
  • -Planning & Initiatives
• Optimise
  • -Supplier Relationships
  • -Logistics
  • -Operational Excellence
  • -Product Quality & Services
• Grow
  • -Setting the Stage for Growth
  • -Global Electronics Recycling
• Summary

• Results to date of the strategic plan are encouraging, with five year FY18 targets on track
• Core objective remains to deliver better than cost of capital returns, even at bottom of the cycle conditions
• Every business is aligned, collaborating, and contributing to the positive and substantial transformation taking place across the group
• Significant further earnings improvement available through new Streamline actions and continued implementation of our Optimise initiatives
• The stage is now being set for the growth phase of the five year strategy, with opportunities for market share gain, pro-active market positioning, and engagement in attractive market adjacencies
• Our internal initiatives, are expected to drive further underlying EBIT improvement in FY16

Sims Municipal RecyclingTom Outerbridge, General Manager Sims Municipal Recyclin

New York, 8 September 2015

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• Recycles Residential & Institutional Material:
  • -Source-separated as dual or single-stream
  • -Potential development of mixed waste processing
• Local government contracts (short or long term)
• Drivers of volume: policy, mandates, goals, landfill diversion, economics
• Fee for service, factoring in material values, processing costs, risk allocation
• Each contract unique in duration, tonnage, composition, economics and market risk

An attractive complement to the Sims Metal Management portfolio

Began in 2002 when NYC cancelled the curbside recycling because processing fees were higher than waste export costs. Sims (the Hugo Neu) won short term contracts to restore the curbside program.

• Subsequently, Sims won a 20-year City contract (10 yr optional extensions)
  • -100% of Metal/Glass/Plastic (MGP) = +21,000 tons/month
  • -Approx. 40% of Paper = ~12,000 tons/month
• Currently 195 Employees; 5 Facilities
  • -Brooklyn Material Recovery Facility (MRF)
  • -Bronx and Queens transloading facilities (truck to barge)
  • -Claremont MRF and Glass Plant
• NJ Curbside MGP
  • -Short term municipal and private contracts
  • -Approx 2,500 tons/month; est. pop. served 800,000
• Chicago
  • -Contract to collect/process/market; Expires 07/18
  • -86,885 Households; 760 tons/month
  • -Sims administers & manages the subcontracts

195 employees across 5 facilities

SfStttitiaeascsy
Mteasuremen	FY12	FY13	FY14	FY15
Hdteaconu	125	138	189	185
#LTI	0	1	1	0
LTIFR	0	060	047	0
#RI	4	4	5	2
RIFR	225	298	287	097
HdID&NM#aaroszu	329	513	481	713

Aiming for world class performance

• Long-term lease co-terminus with long-term recycling contract
• 11-Acre City-owned pier with truck, barge, and rail access
• Shared New York City / Sims Metal Management development costs
• Approx. 20,000 tpm MGP processing capacity

World class facility with long-term contact and lease terms

Sustainability at Sunset Park

Renewable Energy

• -600 kW Solar Array
• -100 kW Wind Turbine
• -~20% of Electricity Demand
• -Planned 650 kW Solar Expansion

Marine Habitat/Ecology

• -Reef & Fuzzy Rope Installation
• -On-site stormwater management

Sea Level & Storm Surge

• -Increased Building Elevations by 4'
• -4,500 tons glass; 17,500 tons mole rock

Education Center

• • Regulatory and NGO tours: USEPA, NYSDEC, NYCELI, NJDEP, ANJR, ISRI, NYCDOE, NYCDCP
• -+7,000 Visitors to date
• -160 school classes, 120 college and adult groups

Resource for sustainable packaging

-Unilever, J&J, Colgate, Pepsi, CLF

A model business for planet, people, and profit

NYC Municipal Recycling Infrastructure

Highly efficient water-based barge transport

Transloading Facilities

SMR Queens

• Receiving Facility on Newtown Creek
• 6,000 tpm MGP
• 2,500 tpm Paper; increase to 6-7k 10/15

SMR Bronx

• Receiving Facility on Bronx River
• 6,500 tpm MGP
• 3,500 tpm Paper

Served by multiple locations across the city

Municipal Recycling at Claremont Terminal, NJ

Municipal Recycling at Claremont

• Municipal Recycling for NYC and NJ curbside material
• Glass plant for all Sims Municipal Recycling glass processing

Leveraging Metals Recycling Capacity

• Sims Municipal Recycling bulky metal processed at Claremont mega shredder
• Sims Municipal Recycling tin cans baled and sold by North America Metals

Leveraging shared capacity across metals and municipal recycling

Glass Recycling at Claremont

• 8,000-10,000 tons per month
• Clear glass separation with optical sorters
• Removal of heat-resistant and leaded glass
• ~1,200 tpm of clear glass sold
• Mixed colour glass crushed for aggregates

-3/8" Recycled Glass Aggregate (RGA)

Clear Glass for Bottle Manufacturing

Optical Sorting, Screens, Magnets, Eddy Current, Crushers

Optimising for a high volume, low value commodity

FY15 Sales Breakdown

• Commodity sales represent ~65% of revenues
• Additional revenue from tip fees
• FY15 commodity sales (177k tons)

Sales to both export and domestic markets

FY15 Plastic Sales Breakdown

• Changing product and packaging stream (design, manufacturing, curbside rules)
• Relatively young processing industry -- new resins, new players
• Sims is a market leader based on volume, capacity and industry engagement

A dynamic marketplace

Outlook

NYC Paper

• -Expanding from ~7,500 to +12,000 TPM 10/15
• -10 year contract with Pratt for 55% of Paper

Glass Plant

• -Plastics (PP/PE) recovery
• -Aggregate markets and alternatives

NJ 3rd Party Material

-Project approx. 2,500 tpm in FY16; short term contracts (1-6 months)

Chicago

• -87k households until 2018
• -Potential additional districts up for bid

Potential NYC Single Stream

• -Exploring potential major modification/increase to NYC tonnage
• -Additional 175,000 tons/year Paper
• -25% participation increase = additional 138,000 tons/year

Potential Mixed Solid Waste (MSW) Processing

-Pensacola, FL (+200k tons/yr MSW and 40k tons/year recyclables); In negotiations as plant operator

Attractive growth outlook in both core and adjacent markets

Thank You for Visiting

North America Metals – New York City Metro Joe Payesko, President North America Metals – East Region

New York, 8 September 2015

North America Metals – New York City Metro

Market leader in New York City metro region

Long Island City, Queens

• 1)Truck scale

• 2)Material handlers

• 3)Light iron

• 4)HMS

• 5)Barge (light iron & crushed cars)

• 6)Municipal recycling material

• 7)Barge (municipal recycling material)

• 1)Main office

• 2)Peddler yard

• 3)Truck scale

• 4)Stationary shear

• 5)Shredder

• 6)Non-ferrous recovery plant

• 7)Rail line

• 8)Barges

• 9)Deep water dock

• 10)Municipal recycling material

• 11)Municipal recycling plant

• 12)Municipal recycling glass plant

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 September 2015. 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 our control, 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.