SIMS LIMITED — Investor Presentation 2016

May 10, 2016

2016 Investor Presentation Bank of America Merrill Lynch - Global Metals & Mining Conference 11 May 2016

ASX: SGM USOTC: SMSMY www.simsmm.com

Business Highlights

Company

• Global leader in metals and electronics recycling with over $6 billion in annual sales revenue

• Operations in 20 countries with balanced sales mix across ferrous and non-ferrous metals

• Best in class people, technology, trading, and logistics

Strategy & Strengths

• Strong business processes with internal initiatives to deliver double-digit return on capital by FY18

• Ability to maintain healthy metal margins through the cycle and improve cost flexibility

• Net cash position, providing balance sheet strength and capital management

Strong core metals recycling business and diversification through electronics recycling

Metals Recycling

• 10.5m tonnes of secondary metals sales in FY15

Sales Revenue By Business (FY15)

• 200+ facilities with operations in 6 countries

• Export capabilities across North America, UK and Australasia, with 13 deep water ports globally

• Global market leader

Electronics Recycling

• 600,000 tonnes of electronics recycled annually

• 30+ facilities across 16 countries

• Emerging opportunities in IT asset management and engineering solutions

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13%
87%
Metals Recycling
Electronics Recycling
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• Development of innovative recycling technology useful to both electronics and metals recycling businesses

Balanced sales mix

~ 40% of sales generated by non-ferrous & other products

Ferrous Metals	Ferrous Metals
Heavy Melt Steel	Bundles & Bales
Shredded Steel	Plate & Structural
Non-Ferrous Shred Recovery
Zorba (aluminium based)	Zurik (stainless steel based)
Non-Ferrous Metals
Aluminium	Copper
Lead	Nickel
Zinc	Used Beverage Cans
Electronics Recycling
Precious Metals	Copper
Shredded Circuit Boards	IT Asset Management
Municipal Recycling
Plastics	Paper
Metals	Glass

Sales Revenue By Product (FY15)

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2%
13%
21%
59%
5%
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Ferrous metals recycling

Non-ferrous shred recovery Non-ferrous metals recycling Electronics recycling

Secondary processing and other services

Diverse supply base

Post Industrial	%
Stampings & clippings	12-14%
Borings & turnings	3-5%
Other	1-3%
Total	~20%
Obsolete Material	%
Construction & demolition	20-30%
Passenger vehicles	15-25%
Major appliances	5-10%
Other light iron	5-10%
Stainless steel	3-5%
Other	15-20%
Total	~80%

Key Supplier Groups

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6%
6%
10%
45%
12%
21%
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Dealers (material aggregators) Industrial manufacturing Auto wreckers Peddlers C&D contractors Other

Best in class assets and operations

• 27 high-powered metal shredders across 5 countries

• Best-in-class non-ferrous metals separation technology

• Dedicated engineering teams

• Industry leading metal-yield and waste reduction methods

Largest global trade network with export and domestic customers in 60 countries

Sales to external customers United States 23% China 13% Turkey 12% Australia 6% United Kingdom 5% Taiwan 4% Export Domestic South Korea 4%

Operations Global Trading Offices Export destinations

Capturing export or domestic premiums through industry’s deepest trading network

Export vs Domestic Price Premium

Export Advantages

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80
60
40
20
0
-20
-40
-60
-80
Export Premium
US$ / metric tonne
US Domestic Premium
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• Exporting from the US, UK & Australasia, with 13 deep water ports globally

• 15 global trading offices across 5 continents, trading to 60 countries

• � ~10% market share of global trade

Domestic Advantages

• Market leader across the largest cities in the US: New York, LA, and Chicago

• Low cost domestic freight channels through rail and barge assets

5 year strategic target to deliver double-digit return on capital by FY18

Grow

• Market share growth through organic investment and patient selective acquisitions

• Strengthen supplier relationships

• Exploit local & global logistics

� Leverage emerging technologies in e-recycling across metals recycling operations

• Operational excellence through

• �� Exit non-strategic businesses shared best practices

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� Reduce non-essential costs � Lead on product quality &
service
Target
Return on Capital
>10% by FY18
Return on Capital
6% in FY15
Return on Capital
2% in FY13
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Internal initiatives to Optimise key profit drivers for stronger earnings through the cycle

Key Profit Drivers

Raw Material Availability

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Supplier
Relationships
Logistics
Operational
Excellence
Product
Quality &
Service
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• Leading market position in large urban centers to retain and grow volumes

Supplier Relationships

• Strengthening supplier networks to grow volumes and market share

Logistics

• Improving inbound & outbound transport capabilities to lower freight expense

Operational Excellence

• Drive continuous improvement to lower operational expenses

• Improve processing yields on nonferrous and grow metal spreads

Product Quality & Service

• Lead on product quality to grow metal spreads and market share

Volume break-even lowered with upside leverage retained when volumes recover

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14
Majority of processing capacity
retained for volume recovery
12
10
8
Significant reduction in volume
break-even point
6
4
2
0
FY13 FY14 FY15 FY16
Target
Sales volumes (million tonnes)
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• Internal initiatives will have reduced the volume break-even point for EBIT by over 40% by the end of FY16

• Despite cost reductions, majority of processing capacity has been retained

• Retained capacity could process additional volumes of approximately 45%, with limited impact on fixed costs

Break-even EBIT volume point

Volume capacity (relative to FY13 market conditions)

Capital management strategy: Maintaining a strong balance sheet is the first priority

Net Cash of $373 million[1]

• Preservation of cash for future working capital requirements

• Strong and consistent free cash flow

Reinvesting back into the business

• Ongoing maintenance, safety and Environmental

• Technology and equipment

• FY16 capex expected to be between $100 to $120 million

• Balance sheet well positioned for expansionary opportunities

• Capital spending to support optimising initiatives

• Invest in organic & acquisitive growth

Share buy-back and dividends

• On-market share buy-back to repurchase up to 10% of issued capital

Capital Management

• Share buy-back

• Dividends

• Dividend payout policy 45-55% of NPAT

Market Update: Improved market fundamentals has driven higher ferrous demand and prices

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Turkey: Import Ferrous Scrap vs
Export Rebar Spread
350
300
250
200
150
100
50
0
US$ / metric tonne
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• Market has dramatically changed during the first quarter of 2016, with China once again driving the market

• Steel mills in China tightened domestic supply and started to increase prices after their New Year holiday

• Turkey’s billet imports from China dropped to half the levels in 2H 2015

• A mix of lower billet imports, short scrap supply, and wider spreads on export billet have been key factors in the increased scrap prices in Turkey

Turkey export rebar vs HMS scrap spread Turkey import HMS (cfr)

• More recent steel prices in China are down, however even a correction equal to half the recent gain would still be a manageable level for the industry

Market Update: Strong 2H FY16 earnings recovery

A$m	FY13	FY14	FY15	FY16 Forecast
Underlying EBIT	67	119	142	Exit Run Rate $140 million
Return on Capital	2.3%	4.6%	5.5%	Exit Run Rate 6%

2H ~~FY16 Market Update~~

• Significant earnings recovery expected during 2H FY16, driven by incremental strategic initiatives to reduce operational costs, improve metal margins, and lower break-even point

• Ferrous metal prices have increased substantially since the start of 2H FY16, however intake volumes remain tight

• FY16 exit run-rate for underlying EBIT and return on capital is expected to be $140 million and 6% respectively

• FY17 return on capital is expected to improve further, based on internal initiatives, even at current market conditions

• The Company is well positioned to benefit from volume improvement due to the significantly reduced cost base, lower volume break-even point, and available global processing capacity

Summary

• Global leader in metals and electronics recycling

• Lifting through the cycle earnings by lower costs and higher metal margins

• On track to deliver double-digit return on capital by FY18

• Significant net cash position , providing balance sheet strength and capital management flexibility

• FY16 exit run-rate for underlying EBIT and return on capital, expected to be $140 million and 6% respectively, is confirmed

• FY17 return on capital is expected to improve further, based on internal initiatives, even at current market conditions

• The Company is well positioned to benefit from volume improvement due to the significantly reduced cost base, lower volume break-even point, and available global processing capacity

Appendix

ASX: SGM USOTC: SMSMY www.simsmm.com

Diverse ferrous and non-ferrous product portfolio

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Ferrous
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Non Ferrous

Electronics Recycling

Heavy Melt Steel (HMS)

Copper

Circuit Boards

Shredded Steel

Zorba (Shredded Aluminum)

End of life IT assets

The Metals Recycling Process

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Post Industrial Weighing, Inspection, Non Ferrous
� Factory stampings, clippings, & Sorting Copper, Aluminum,
turnings, and borings Zinc, Lead, Nickel
Obsolete Goods
� Vehicles, appliances,
construction & demolition,
Processing
railroads, steel cans
Sort, Shear, or Bale
Ferrous
Sales to Steel Mills Processing
Steel
Export & Domestic Shear, Bale, or Shred
Sales to Smelters
Shearing Export & Domestic
Baling
Shredding
Ferrous Non Ferrous
Recovery Recovery
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The Electronics Recycling Process

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Metals Recycling Global Footprint
Europe Metals
North America Metals
Australia & New Zealand Metals
Australia
New Zealand
Metal Shredder / Key Metals Recycling facility
Metal Shredder (50% JV owned)
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Electronics Recycling Global Footprint
Europe, Africa, and Middle East
UAE
Europe
North America
South Africa
United States
Asia Pacific
India
Singapore
Australia
New Zealand
Electronics Recycling facility
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Financial Summary – Group

A$m	FY10	FY11	FY12	FY13	FY14	FY151		1H FY151	1H FY16
Group Results
Sales Revenue	7,453	8,847	9,036	7,193	7,129	6,311		3,363	2,412
Underlying EBITDA	379	414	253	190	242	263		153	61
Underlying EBIT	235	283	123	67	119	142		95	-5
Underlying NPAT	127	182	74	17	69	102		69	-18
Underlying EPS (cents)	65	88	36	8	34	49		34	-9
Dividend (cents)	33	47	20	0	10	29		16	10
Balance Sheet
Total Assets	4,233	4,167	3,509	2,917	2,649	2,882		2,786	2,568
Total Liabilities	959	1,256	1,225	988	816	769		750	672
Total Equity	3,274	2,912	2,284	1,929	1,834	2,113		2,036	1,895
Net Cash (Net Debt)	15	-126	-292	-154	42	314		49	373
Cash Flows
Operating Cash Flow	-48	159	290	297	210	298		53	139
Capital Expenditure	-121	-143	-161	-149	-64	-95		-40	-44
Free Cash Flow	-168	16	129	148	146	203		13	95
NOPAT	165	198	86	47	83	99		67	-3
Total Capital	3,259	3,038	2,576	2,083	1,792	1,799		1,988	1,523
ROC2 (%)	5.0%	6.5%	3.3%	2.3%	4.6%	5.5%		3.4%	-0.2%

Financial Summary – Segment

A$m	FY10	FY11	FY12	FY13	FY14	FY151		1H FY151	1H FY16
Sales Revenue
North America Metals	4,834	5,782	5,773	4,256	3,996	3,417		1,913	1,236
ANZ Metals	1,126	1,300	1,190	1,047	1,188	1,053		554	377
Europe Metals	783	954	1,056	935	1,063	1,037		513	372
Global E-Recycling	622	750	982	937	868	795		378	427
Unallocated	88	61	35	18	14	9		5	0
Total	7,453	8,847	9,036	7,193	7,129	6,311		3,363	2,412
Underlying EBITDA
North America Metals	182	175	51	94	75	81		65	16
ANZ Metals	83	107	80	72	107	87		44	28
Europe Metals	25	28	15	-2	29	37		21	9
Global E-Recycling	87	112	92	24	20	55		22	6
Unallocated	2	-8	15	2	11	3		1	2
Total	379	414	253	190	242	263		153	61
EBITDA Margin (%)
North America Metals	3.8%	3.0%	0.9%	2.2%	1.9%	2.4%		3.4%	1.3%
ANZ Metals	7.4%	8.2%	6.7%	6.9%	9.0%	8.3%		7.9%	7.4%
Europe Metals	3.2%	2.9%	1.4%	-0.2%	2.7%	3.6%		4.1%	2.4%
Global E-Recycling	14.0%	14.9%	9.4%	2.6%	2.3%	6.9%		5.8%	1.4%
Total	5.1%	4.7%	2.8%	2.7%	3.4%	4.2%		4.5%	2.5%

Financial Summary – Segment (cont.)

A$m	FY10	FY11	FY12	FY13	FY14	FY15		1H FY15	1H FY16
Sales tonnes (‘000)
North America Metals	9,906	10,964	11,080	9,377	8,152	7,018		3,818	2,990
ANZ Metals	1,578	1,764	1,765	1,764	2,054	1,874		944	700
Europe Metals	1,394	1,466	1,651	1,645	1,609	1,589		738	609
Total	12,878	14,194	14,496	12,786	11,815	10,481		5,500	4,299
Underlying EBIT
North America Metals	92.7	99.6	-18.7	32.8	11.7	11.8		33.0	-23.1
ANZ Metals	62.4	86.1	56.3	46.9	79.2	59.2		29.9	14.0
Europe Metals	15.8	18.8	4.1	-14.0	16.5	24.6		14.9	2.1
Total	170.9	204.5	41.7	65.7	107.4	95.6		77.8	-7.0
EBIT / tonne (A$/t)
North America Metals	9.36	9.08	-1.69	3.50	1.44	1.68		8.64	-7.73
ANZ Metals	39.54	48.81	31.90	26.59	38.56	31.59		31.67	20.00
Europe Metals	11.33	12.82	2.48	-8.51	10.25	15.48		20.19	3.45
Total	13.27	14.41	2.88	5.14	9.09	9.12		14.15	-1.63

Financial Summary – Segment (cont.)

A$m	FY10	FY11	FY12	FY13	FY14	FY151		1H FY151	1H FY16
Sales tonnes (‘000)
Ferrous Trading	9,068	10,115	10,320	9,396	9,331	8,325		4,426	3,361
Ferrous Brokerage	3,264	3,518	3,597	2,840	1,918	1,617		801	688
Non Ferrous	565	571	586	550	566	539		273	250
Total	12,897	14,204	14,503	12,786	11,815	10,481		5,500	4,299
Sales Revenue
Ferrous Metals	5,071	6,144	6,259	4,817	4,801	4,068		2,250	1,354
Non Ferrous Metals	1,526	1,724	1,657	1,353	1,361	1,342		683	577
Global E-Recycling	622	750	982	937	868	795		378	427
Other	234	229	138	86	99	106		52	54
Total	7,453	8,847	9,036	7,193	7,129	6,311		3,363	2,412

Disclaimer

The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation. 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.