SIMS LIMITED — Investor Presentation 2017

Jun 4, 2017

Sims Metal Management 2017 North America Investor Site Tour

5-6 June 2017

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Nearing final year of initial strategic plan

Five-year strategic target: Next five-year strategic target: lift return on capital from transformative business 2.3 % in FY13 to ≥10% by FY18 growth

Significant accomplishments have been achieved

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Safety
TRIFR down by 58%
since FY13
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Volume Break-Even Improved by 41% since FY13

Sustainability CO 2 emissions 26% lower since FY13

Return on Capital 3x higher since FY13

Controllable Costs Reduced by $212 million since FY13 Net Cash Increased by $464 million since FY13

Creating a best in class culture of safety

Recordable Injury Frequency Rate

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3.5
58% reduction in TRIFR
3.0
421 injuries prevented
2.5
2.0
3.3
1.5
2.8
2.2
1.0
1.5 1.4 1.3 1.2
0.5 1.0
0.0
Actual TRIFR Target TRIFR
Total Recordable Injury Frequency Rate (TRIFR)
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Ongoing internal initiatives driving the Company to reach five year strategic goal in FY18

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Supplier Operational Product Quality
Logistics
Relationships Excellence & Service
Internal initiatives expected to deliver additional $70 to $95 million in EBIT [1]
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Next five-year plan will focus on business growth

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New Lines of
Business
Market
Adjacencies
Market
Positioning
Market
Share Gain
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Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Central oversight and regional execution

• Responsible for oversight and reporting of key internal initiatives

• � Facilitate replication of initiatives � Reporting directly into Group CFO

• Responsible for project generation and delivery

• Provide expert knowledge and skills for implementation of key projects

• Project management support

• Drive R&D and innovation processes

Standardising and replicating the highest value initiatives across the Company

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B
A
Continuous improvement as an ongoing process for standardisation,
replication, and institutionalisation of the highest value internal initiatives
C
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Implementation delivery on track

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FY17 FY18 FY19
� New non-ferrous Metals Recovery
Plant (MRP) at Kwinana, Australia
� Dredging channel for Claremont
� Rail connection in Chicago
Non-ferrous MRP upgrade at Claremont (NA Metals)
Non-ferrous MRP upgrade at Chicago (NA Metals)
Zorba separation & upgrading (NA Metals)
Copper granularisation (NA Metals)
NYC Municipal Recycling expansion (NA Metals)
IT systems upgrade (NA Metals)
Copper wire recovery initiatives (ANZ Metals)
Copper fines recovery initiatives (ANZ Metals)
Shredder & yard upgrade at Avonmouth (Europe Metals)
Ocean container consolidation (Group)
Complete
In progress
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Total initiatives in progress to deliver additional $70 to $95 million in EBIT[2]

Significant gains from initiatives since FY13

Improved Return on Capital

• Delivery of major capital projects including:

• Greenfield shredder and full-service metals recycling facility in Kwinana, Australia

• Greenfield shredder, non-ferrous yard, and port facility in Providence, Rhode Island

• Greenfield WEEE electronics recycling facility in Norway

• Sale or idling of 44 underperforming facilities, with limited impact on total processing capacity

• Controllable costs reduced by $212 million

• Underlying return on capital nearly tripled since start of five-year plan in FY13

• EBIT break-even volumes point lowered by 41%

• Improved cost structure to deliver an additional $40-$50 million of EBIT for every 500kt of additional sales volumes

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8%
6.8%
7%
6%
5%
4%
3% 2.3%
2%
1%
0%
Lower volume break-even point
14
11.9
12
10
8 7.0
6
4
2
0
Volume Break-Even Point Sales Volume
Return on Capital
(million tonnes)
EBIT break-even volumes
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Capital allocation towards highest returning initiatives

Capital Expenditure

• Strong net cash balance of $311 million as of 31 Dec 2016 to support strong pipeline of internal initiatives

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200
180
160
140
120
100
80
60
40
20
0
Sustaining Capex Growth Capex Forecast Range
A$ million
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• Majority of initiatives are lower-risk projects with well established returns and implementation frameworks

• Forecast capex of $120 to $150 million in FY17 , and $160 to $190 million in FY18

• Growth capex focused on internal PMO projects

• Growth capex expected to be between 30% to 50% of total capex in FY17 and FY18

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Logistics is a significant cost driver

• Freight expenses are a meaningful component of overall costs totaling $379 million in FY16

			Key expenses	Key expenses	Key expenses	Key expenses	by type	by type	by type	by type							�
			8%	2%				Raw			materials						�
		12%						Employee						benefits			�
								Other				expenses
		12%						Freight									�
						66%		Repairs & maintenance
	Expense								A$ million (FY16)
	Raw materials used			and	changes in	inventories						3,014
	Freight expense											379
	Employee benefits expense											567
	Repairs and maintenance expense											563
	Other expenses											53

• In total, freight expenses were 8% of Group costs and 24% of costs excluding raw materials

• Logistics costs include inbound and outbound trucking, barge transport, rail shipments, domestic and export containers, bulk ship exports, as well as waste removal

• Logistics is a critical success factor in metals, electronics, and municipal recycling due to weight of raw materials, complexity of sourcing, and geographic customer distribution

Meaningful reduction in freight expenses

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Freight Expenses
800 60
700
50
600
40
500
400 30
300
20
200
10
100
0 0
Freight expense Freight in A$/tonne (RHS)
A$ per sales tonne
A$ million (constant exchange rates)
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• Freight expenses per tonne have declined by 20%, roughly $10 per tonne, since FY13[1]

• Decline in freight expenses driven by numerous factors including:

• Lowering trucking fleet downtime

• More efficient trucking routing and increased backhaul route optimisation

• Freight tracking software

• Lower fuel costs

• Increased use of water and rail based transport

• Improved third party freight tendering

Attractive access to rail and barge transport

Freight costs by mode

• Rail and barge transport can be 10% to 20% of the cost of trucking per ton-mile

• Majority of North America Metals facilities have either rail connections or barge loading docks[1]

• 20 with rail connections

• 15 with barge loading docks

• 7 with deep water export docks

• Attractive low-cost transport capabilities provide significant competitive advantages

• Lower intake and inter-facilities freight costs

• Provides flexibility to supply to both domestic and export customers

Logistics Initiative 1) Dredging of Claremont Channel

Port Newark Dock Claremont Terminal Newark, New Jersey Jersey City, New Jersey

Dredging of Claremont channel, allowing more tonnes to be loading into bulk ships docked at Claremont terminal

• Prior to the dredging, draft constraints required bulk ships loaded at Claremont, to be topped-up at nearby Port Newark

• In addition, this required material processed at Claremont to be barged to Port Newark, for bulk loading under deeper draft conditions

• Sequent to the dredging, bulk ships loaded at Claremont can be filled with more material , leading to quicker loading times, less material handling and fewer barge transfers

Shredder & key facility Deep water export dock Shipping channel

Logistics Initiative 2) Chicago rail connection

• The Paulina St facility in Chicago is a major producer of HMS, shredded, and prompt scrap in the Midwest region

• However, transport to domestic steel mills can incur significant transport costs, while some mills only accept material by rail

• The recently completed rail line connection will complement existing barge loading capacity and allow the business to supply a wider range of domestic customers

• Additional benefits include:

• Significant freight cost reduction

• Elimination of double handling

• Ability to move increased volumes

• Diversification of customer base

• Lower waste removal costs

Paulina St facility Rail line Barge loading

Further logistics initiatives underway

Global Ocean Containers	� More than50,000 ocean containers used annuallyshipping non-ferrous, ferrous, zorba, recycled e-waste, and other commodities � Initiative toconsolidate global ocean container contracts � Maximise ability to leverage global spend with international carriers
IT Systems	� Globalalignment of IT logistics tools � Creating greater data transparency for analytics and planning � Ensure accurate pricing and charge back recoveries
Standardise Processes	� Standardise global logistics practices creating greater process efficiency � Formalisation of freight rate sourcing across all transport modes � Consolidate and improve RFP processesand contract negotiations

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Operational Excellence: Non-ferrous Metals Recovery Plant - Overview

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Shredded
Zorba
Steel
Non- Metals
Metallic Metal Ferrous Recovery
Zurik
Feedstock Shredder Shredder Plant
Residue (MRP)
An MRP is a downstream process that
separates non-ferrous shredder residue
Waste ICW
(NFSR) into saleable commodities
including zorba (primarily aluminium),
zurik (primarily stainless steel), and
insulated copper wire (ICW)
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Operational Excellence: Non-ferrous Metals Recovery Plant - Technology

MRP four key technology areas:

1. Screening: Downstream separation equipment, optimised through consistent inbound particle size screening

2. Air Classification: Downstream separation equipment process inbound material

3. Eddy Current Separators (ECS): This is the primary point of extraction for zorba, which is predominantly aluminium. The ECS account for the vast majority of non ferrous recoveries by weight

4. Sensor/Sorters: This technology comprises the largest jump between older MRP and the update MRP scheduled for installation. Advances in sensor technology have increased resolution and particle identification to better separate insulated copper wire (ICW) from stainless steel, down to very small size fractions

Operational Excellence: New ‘state of the art’ MRP at Claremont, NJ

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�
New MRP & Zorba
Processing Building
�
DNF & ASR storage
Metal Shredder
�
�
Current MRP location
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Claremont has one of the highest performing shredders in the metal recycling industry

• However the current MRP can no longer efficiently manage the downstream non-ferrous recovery process due to aging technology

• The new MRP will provide a step-change in throughput, cost efficiency, and recovery rates

• Additional benefits include:

• Enhanced safety

• Enclosed building for dryer material

• More efficient material flow

• Higher recovery rates

• 50% higher throughput capacity

Operational Excellence: New ‘state of the art’ MRP at Chicago, IL

The Paulina street facility is one of only two major shredding operations in the Chicago area

• The MRP that currently exists resides 15 miles away from Paulina street due to a legacy operational footprint

Metal Shredder

Existing MRP is in various stages of degradation due to aging equipment, infrastructure, and technology (some components over 20yrs old)

• New MRP location

Installation of the new MRP to the same location as the shredder will dramatically reduce material handling and freight costs .

• Additional benefits include:

• Enhanced safety

• More efficient material flow

• Higher recovery rates

• 40% higher throughput capacity

• Reduced material handling & freight costs

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Product Quality: Zorba market overview

Aluminium vs Zorba Prices

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$0.90
$0.85
$0.80
$0.75
$0.70
$0.65
$0.60
$0.55
Aluminium Zorba
US$ / lb
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• Zorba is a primarily aluminium mixed metal and the main non-ferrous product recovered from non-ferrous shredder residue (NFSR)

• Zorba is typically sold at purities of 85-96% metal (65-80% Al, and 10-25% mix of Cu, Zn, Pb)

• Zorba is primarily sold to processors in China, at a 15-25% discount to the aluminium LME price, which then hand sort component metals

• Discount to aluminium LME price has been widening over time due to higher labour costs in China and other factors

• In addition, initiatives in China such as the ‘Green Fence’ and regulation over importing of mixed metal waste pose increased challenges

• The US domestic market has few customers for Zorba which instead require a higher grade 9899% aluminum product called Twitch , used as feedstock for secondary smelting

Product Quality: Zorba de-commoditsation initiative

Project Overview	� Installation of azorba separation plant at Claremont Terminalmetals recycling facility in Jersey City, NJ � Facility will process Claremont’s zorba into twitch (98-99% aluminium) and ‘heavy metals’ (copper, brass, lead, zinc) � Expectedcompletion in 1H FY18
Benefits	� Diversification of product portfolio by further separation and de-commodisation � Capture more of the marginin the downstream value chain � Expand customer basein both domestic and export markets
Future Potential	� Potential to roll-out processto other key operating regions � Future opportunities to further process twitch and heavy metals into further distinct products (ie cast & sheet aluminium, brass, copper, lead, and zinc) � Opportunity to provide the service to 3rd parties as an attractive alternative to traditional zorba sales channels

Product Quality: Claremont Zorba Separation integrated with new MRP

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New Claremont MRP
& Zorba Plant
MRP
Mixed Copper
MRP Zorba
Bearing Shred
Density
Heavy Metals Heavy Metals
Twitch Separation & Separation Shred Zorba Separation Plant
Upgrading
Zorba Separation
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Wider potential in domestic & export non-ferrous markets

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Key Markets
Twitch Consumers
Secondary Copper Smelters
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Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Summary & outlook

Significant internal initiatives to support reaching FY18 ROC target of ≥ 10%

• Extensive portfolio of internal initiatives driven by a strong central PMO structure

• Initiatives expected to deliver additional $70 to $95 million in EBIT per annum once complete[1 ]

• Business remains well positioned with at least 12 million tonnes of sales volume capacity

Next five year plan will focus on transformative business growth

• Growth strategy centered on four pillars 1) market share gain, 2) market positioning, 3) market adjacencies, and 4) new lines of business

• Further details on the next five-year plan to be presented during 1H FY18

Current market conditions continue to be steady and supportive

• Steel exports from China continue to decline, leading to stronger ferrous demand outside China

• Stable or improving pricing and demand for ferrous and non-ferrous secondary metal

• 2H FY17 underlying EBIT expected to be higher than 1H FY17 and a meaningful step towards reaching the target ROC of ≥ 10% for FY18

Sims Metal Management North America Metals

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

North America Metals overview

1988: Entered the US metals recycling market with the acquisition of LMC in California

Jun-07: Formed 50% JV with Adams Steel creating SA Recycling

Dec-12: Divested minor non-core assets in CO, UT, and Nashville, TN

Aug-16: Completed sale and closure of non-core assets in Central Region

1988 1996 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

1996: Acquired 50% stake in Richmond Steel Recycling in British Columbia, Canada

Oct-05: Merged US operations with Hugo Neu, creating a significant presence in NJ, NY, and CA

Mar-08: Acquired Metal Management, one of the largest metal recyclers in the US

Mar-14: Completed construction of new shredder, port, and non-ferrous facilities in Providence, RI

Feb-16: Acquired, via SA Recycling, a 50% stake in Newell Recycling based in Atlanta, GA

North America Metals business structure

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North America Metals
100% 50%
Sims Richmond
NAM West NAM Central NAM East Municipal Steel SA Recycling
Recycling Recycling
8 facilities 10 facilities 28 facilities New York City JV with Nucor US South-West
1 shredder 1 shredder 6 shredders curbside Steel 44 facilities
2 deep water 5 deep water recycling 4 facilities 7 shredders
docks docks 1 shredder 2 deep water
docks
Newell
�
110 metals recycling facilities across US states [1] Recycling
� 20 high power metal shredders [1] Georgia & US
South-East
� 9 deep water export docks [1] 16 facilities
4 shredders
� 1,683 employees
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• 1,683 employees

Strong presence on the East and West coasts

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BC
ME
WA
VT
MT
ND
MN NH
NY
OR
MA
WI
ID SD
MI RI
WY CT
PA
CA IA NJ
NV NB OH
IN
IL MD DE
UT WV VA
CO MO
KS KY
NC
TN
OK SC
AZ NM AR
GA
AL
MS
LA
TX
NAM shredders FL
NAM facilities
Joint venture shredders
Joint venture facilities
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Leading market share in exports and total volumes

US Total Market Share

US Export Market Share

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Sims Metal
Management
11%
OmniSource
Sims Metal
8%
Management
26%
Other
40%
Schnitzer
7%
SMS
6%
DJJ
6% Other
EMR
74%
2% FPT
5%
SA CMC Gerdau
Alter Trading
Recycling 4% 4% 4%
3%
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Improving business performance with significantly more earnings potential

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North America Metals North America Metals
Underlying EBIT 120 Underlying EBIT
100
40 80
60
30 40
20
20 0
-20
10 -40
FY10 FY11 FY12 FY13 FY14 FY15 FY16 HY17
0
North America Metals
-10
Sales Volumes
12,000
-20 10,000
8,000
-30
6,000
2H15 1H16 2H16 1H17
4,000
2,000
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 HY17
A$ million
A$ million
million tonnes
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Material collection rates below long-term levels

US ferrous scrap metal collection

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300
280
260 Long-term average
collection rate is 30%
240
above current levels
220
200
180
160
140
120
100
US ferrous scrap collection per capita
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Metal recycling industry capacity has declined

Active US Shredders

Active US shredders down 13% since 2012

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300
275
250
225
200
175
150
# active US shredders
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Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

North America Metals – East Region Operations

• Operations spanning major urban areas including New York/Newark, Philadelphia/Trenton, Boston/Providence and Chesapeake/Norfolk, VA

• Total catchment area of over 30 million people, with a GDP of over US$2.2 trillion

• The East Region represents the largest operating division in North America Metals:

• 28 collection & recycling facilities

• 6 facilities with metal shredders

• Extensive transport capabilities across water, rail, and trucking:

• 10 facilities with rail access

• 10 facilities with barge loading docks

• 5 deep water docks

Shredder Collection & processing facility

Flexibility to supply both export and domestic customers

Barge	� 10 facilities with barge loading capabilities utilising rivers and intracoastal waterways for low-cost water based transport	Bulk Ship	� 5 exclusive use deep water export docks capable of loading 50 thousand tonne handymax vessels
Rail	� 10 facilities with rail access providing low-cost transport over long distances to domestic steel mills	Container Ship	� Flexible use of container shipping for non-ferrous and ferrous export
Truck	� Efficient use of both internal and 3rd party trucking fleets

North America Metals – New York City Metro

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Shredder & key facility
Processing facility
Barge dock capacity
Deep water export dock
Port Newark Claremont Terminal
Newark, New Jersey Jersey City, New Jersey
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Claremont Terminal & Port Newark

Claremont Terminal, New Jersey

• Largest full service metals recycling facility in North America Metals portfolio

• Large scale shredder

• Downstream MRP

• Baler, shears, torch cutters

• Wet car detox station

• Municipal recycling

• Strategically positioned near main transport arteries, with rail connection, barge loading,

and deep water export dock facilities onsite

Port Newark, New Jersey

• Deep water export dock and stevedoring operation

• Bulk ship loading & receiving

• Barge loading & receiving

• Rail connection

• Mobile shears

• Large scale dock equipped to receive third party and internal material

• Additional capacity leveraged to manage

stevedoring for salt and coal

• Catchment area of over 20 million people across New York-Newark-Jersey City, with

total market opportunity of circa 3-5Mtpa

Claremont Terminal - Jersey City, New Jersey

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1
2
6
10
11
4
3
7
8
9
1) Main Office 7) MRP Plant (Current)
2) Peddler Yard 8) MRP Plant (Future) 5
3) Truck Scale 9) Deep water dock
4) Stationary Shear 10) Barges
5) Metal Shredder 11) Municipal Recycling Plant
6) Rail line
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Claremont Terminal - Jersey City, New Jersey

Port Newark - Newark, New Jersey

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

8
6
4
2 7
1 5
3
1) Main Office 6) Loading Cranes 9
2) Truck Scale 7) Deep water dock
3) Rail line 8) Barge dock
4) HMS Inventory 9) Salt Stevedoring
5) Shredded Inventory
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Port Newark - Newark, New Jersey

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

North America Metals – Central Region Operations

• Operations spanning major urban areas including Chicago, Houston, and Tulsa, OK

• Total catchment area of over 17 million people, with a GDP of over US$1.2 trillion

• The Central Region is comprised of two parts, the Midwest and Southwest, which combined host:

• 10 collection & recycling facilities

• Chicago based metal shredder

• Houston based large-scale operations

• Majority of operations have either or rail or barge transport capabilities supporting lower cost transport over longer distances:

• 6 facilities with rail access

• 4 facilities with barge loading docks

Shredder Collection & processing facility

Well positioned to supply domestic steel mills

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Chicago
Radius
Houston
Radius
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Paulina Street - Chicago, Illinios

• 1) Main Office 4) Metal Shredder 2) Non-Ferrous Building 5) Rail line 3) Mobile Shear 6) Barge dock

• 6 1 2

• 3 5

• 4

Agenda

• Group Strategy Update

• Internal Initiatives Update

• Logistics

• Operational Excellence

• Product Quality

• Summary & Outlook

• North America Metals

• Business & Market Review

• East Region

• Central Region

• Appendix

Diverse US 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%

North America Metals Supplier Groups

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

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

Balanced commodities sales mix

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[1]

2% 17% 52% 23% 6% Ferrous metals recycling Non-ferrous shred recovery Non-ferrous metals recycling Electronics recycling Secondary processing and other services

US ferrous market prices and mix

US Ferrous Scrap Market by Price

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

$450
$400
$350
$300
$250
$200
$150
$100
HMS 1/2 - East Coast Export HMS 1 - Midwest
#1 Busheling - Midwest Shredded Scrap - Midwest
US$ / tonne
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US Ferrous Scrap Market by Volume

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

13%
6%
33%
8%
14%
26%
Shredded HMS 1&2
Bundles & Busheling Cut Structural & Plate
Turnings, Boring, Punch Other
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Financial summary - group

A$m	FY10	FY11	FY12	FY13	FY14	FY15	FY16		1H FY16	1H FY17
Group Results
Sales Revenue	7,453	8,847	9,036	7,193	7,129	6,311	4,652		2,412	2,385
Underlying EBITDA	379	414	253	190	242	263	184		61	133
Underlying EBIT	235	283	123	67	119	142	58		-5	77
Underlying NPAT	127	182	74	17	69	102	38		-18	60
Underlying EPS (cents)	65	88	36	8	34	49	19		-9	30
Dividend (cents)	33	47	20	0	10	29	22		10	20
Balance Sheet
Total Assets	4,233	4,167	3,509	2,917	2,649	2,882	2,571		2,567	2,656
Total Liabilities	959	1,256	1,225	988	816	769	738		672	762
Total Equity	3,274	2,912	2,284	1,929	1,834	2,113	1,833		1,895	1,894
Net Cash (Net Debt)	15	-126	-292	-154	42	314	242		373	311
Cash Flows
Operating Cash Flow	-48	159	290	297	210	298	131		139	114
Capital Expenditure	-121	-143	-161	-149	-64	-95	-109		-44	-68
Free Cash Flow1	-168	16	129	148	146	203	22		95	46
NOPAT	165	198	86	47	83	99	41		-3	54
Total Capital	3,259	3,038	2,576	2,083	1,792	1,799	1,590		1,523	1,583
ROC2 (%)	5.0%	6.5%	3.3%	2.3%	4.6%	5.5%	2.6%		-0.4%	6.8%

Financial summary – business segment

A$m	FY10	FY11	FY12	FY13	FY14	FY15	FY16		1H FY16	1H FY17
Sales Revenue
North America Metals	4,834	5,782	5,773	4,256	3,996	3,417	2,353		1,236	1,111
ANZ Metals	1,126	1,300	1,190	1,047	1,188	1,053	744		377	492
Europe Metals	783	954	1,056	935	1,063	1,037	759		372	415
Global E-Recycling	622	750	982	937	868	795	793		427	354
Unallocated	88	61	35	18	14	9	3		0	13
Total	7,453	8,847	9,036	7,193	7,129	6,311	4,652		2,412	2,385
Underlying EBITDA
North America Metals	182	175	51	94	75	81	76		16	62
ANZ Metals	83	107	80	72	107	87	67		28	40
Europe Metals	25	28	15	-2	29	37	32		9	22
Global E-Recycling	87	112	92	24	20	55	19		6	15
Unallocated	2	-8	15	2	11	3	-10		2	-6
Total	379	414	253	190	242	263	184		61	133
Underlying EBITDA Margin (%)
North America Metals	3.8%	3.0%	0.9%	2.2%	1.9%	2.4%	3.2%		1.3%	5.6%
ANZ Metals	7.4%	8.2%	6.7%	6.9%	9.0%	8.3%	9.0%		7.4%	8.1%
Europe Metals	3.2%	2.9%	1.4%	-0.2%	2.7%	3.6%	4.3%		2.4%	5.3%
Global E-Recycling	14.0%	14.9%	9.4%	2.6%	2.3%	6.9%	2.4%		1.4%	4.2%
Total	5.1%	4.7%	2.8%	2.7%	3.4%	4.2%	4.2%		2.5%	5.6%

Financial summary – business segment

A$m	FY10	FY11	FY12	FY13	FY14	FY15	FY16		1H FY16	1H FY17
Sales tonnes (‘000)
North America Metals	9,906	10,964	11,080	9,377	8,152	7,018	5,772		2,990	2,735
ANZ Metals	1,578	1,764	1,765	1,764	2,054	1,874	1,418		700	862
Europe Metals	1,394	1,466	1,651	1,645	1,609	1,589	1,361		609	763
Total	12,878	14,194	14,496	12,786	11,815	10,481	8,551		4,299	4,360
Underlying EBIT
North America Metals	92.7	99.6	-18.7	32.8	11.7	11.8	2.3		-23.1	30.7
ANZ Metals	62.4	86.1	56.3	46.9	79.2	59.2	39.7		14.0	25.9
Europe Metals	15.8	18.8	4.1	-14.0	16.5	24.6	18.6		2.1	15.8
Global E-Recycling	62.9	87.7	67.8	-1.0	17.1	44.0	7.7		-0.3	11.1
Unallocated	1.2	-8.8	13.3	2.2	11.1	2.1	-10.2		2.6	-6.5
Total	235.0	283.4	122.8	66.9	118.5	141.7	58.0		-4.8	77
Underlying EBIT / tonne
North America Metals	9.36	9.08	-1.69	3.50	1.44	1.68	0.40		-7.73	11.22
ANZ Metals	39.54	48.81	31.90	26.59	38.56	31.59	27.93		20.00	30.05
Europe Metals	11.33	12.82	2.48	-8.51	10.25	15.48	13.74		3.45	20.71

Financial summary – product segment

A$m	FY10	FY11	FY12	FY13	FY14	FY15	FY16		1H FY16	1H FY17
Sales tonnes (‘000)
Ferrous Trading	9,068	10,115	10,320	9,396	9,331	8,325	6,768		3,361	3,505
Ferrous Brokerage	3,264	3,518	3,597	2,840	1,918	1,617	1,307		688	628
Non Ferrous	565	571	586	550	566	539	476		250	227
Total	12,897	14,204	14,503	12,786	11,815	10,481	8,551		4,299	4,360
Sales Revenue
Ferrous Metals	5,071	6,144	6,259	4,817	4,801	4,068	2,703		1,354	1,462
Non Ferrous Metals	1,526	1,724	1,657	1,353	1,361	1,342	1,055		577	525
Global E-Recycling	622	750	982	937	868	795	793		427	354
Secondary processing & other	234	229	138	86	99	106	101		54	44
Total	7,453	8,847	9,036	7,193	7,129	6,311	4,652		2,412	2,385

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Metals Recycling global footprint
Europe Metals
North America Metals UK
United States & Canada
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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Disclaimer

The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 5 June 2017. 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.