SIMS LIMITED — Investor Presentation 2021

Dec 2, 2021

==> picture [720 x 192] intentionally omitted <==

2 December 2021 Credit Suisse Roadshow

==> picture [144 x 58] intentionally omitted <==

Disclaimer

The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 2 December 2021. 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 the control of the Group, 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.

Authorised for Release by : the Company Secretary, Gretchen Johanns ABN 69 114 838 630

Head Office : level 9, 189 O’Riordan Street, Mascot, NSW, Australia 2020

==> picture [45 x 44] intentionally omitted <==

2

Speakers

==> picture [631 x 299] intentionally omitted <==

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

Alistair Field Elise Gautier Stephen Mikkelsen
Group CEO Group Chief Risk & Group CFO
Compliance Officer
----- End of picture text -----

==> picture [45 x 44] intentionally omitted <==

3

TODAY’S AGENDA

Overview of Sims Limited

Structural Market Tailwinds

Alistair Field

Strategy

Sustainability

Finance

Elise Gautier

Stephen Mikkelsen

Alistair Field

Q&A

Elise Gautier

Stephen Mikkelsen

==> picture [45 x 44] intentionally omitted <==

4

==> picture [360 x 405] intentionally omitted <==

Overview of Sims Limited

==> picture [45 x 44] intentionally omitted <==

5

Sims Limited

The group at glance

• Publicly listed Australian Company (ASX: SGM; OTC: SMSMY)

• Market capitalisation approximately A$2.8B 2 Dec 2021

• World’s largest public recycler of metals by volume

• Total sales volumes of 8,593 million tonnes

• FY21 revenue A$5,916.3 million

• FY21 underlying EBIT A$386.6 million

• FY21 underlying NPAT A$284.1 million

• FY21 full year dividend 42.0 cents

==> picture [299 x 275] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

6

Integrated business model We provide solutions that solve multi-decade challenges related to decarbonisation and circular economy

Metal Recycling

Sims Lifecycle Services

Municipal Recycling

Resource Renewal

Renewable Energy

Buys, processes and sells ferrous and non-ferrous recycled metals

==> picture [40 x 41] intentionally omitted <==

Provides solutions to extend the life of data centre and corporate IT equipment by recognising value in end-of-life electronic assets, components and materials in a data-secure and environmentally sustainable way

Leads urban recycling in New York City and manages a portion of the curbside recycling program for Chicago – two of the largest urban areas in the United States

==> picture [41 x 40] intentionally omitted <==

Plans in place to transform the residue material following metals recycling – auto shredder residue (ASR), which currently is landfilled – into useful products for society

==> picture [39 x 34] intentionally omitted <==

Sims owns 50% of LMS Energy, Australia’s market leader in landfill biogas-to-energy and solar renewable energy

==> picture [43 x 33] intentionally omitted <==

8.6 million tonnes of scrap metal recycled globally in FY21

2.1 million Cloud Units repurposed in FY21

660,000 tonnes of municipal material recycled in FY21

Potential to convert 1.0 million tonnes[1] of ASR into quality products

More than 45 million tonnes of carbon emissions reductions in the last 25 years

==> picture [45 x 44] intentionally omitted <==

1 each year by 2030

7

Global coverage

==> picture [698 x 373] intentionally omitted <==

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

UK Metal
28
Joint Venture
facilities – North
America & Australia 4
124
Australia & New
Zealand Metal
48
8
North America Metal
50
10
SA Recycling
15 [1]
Facilities
Sims Lifecycle
Shredders Services
18
1 It doesn’t include PSC’s shredders
----- End of picture text -----

8

FY21 Segment overview

	FY21 % of Group EBIT1 North America Metal 35 ANZ Metal 27 UK Metal 12 Sims Lifecycle Services 6 SA Recycling 41 Global Trading (5) Corporate & Other (16) Total 100%

==> picture [45 x 44] intentionally omitted <==

1 Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges, and internal recharges

9

Metal recycling process

FERROUS

==> picture [173 x 57] intentionally omitted <==

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

NON-FERROUS
----- End of picture text -----

==> picture [46 x 34] intentionally omitted <==

We buy ferrous metal (obsolete and new production off cuts) from metal dealers; industrial, mining, waste management, demolition and auto wrecker companies; peddlers; and government

==> picture [28 x 50] intentionally omitted <==

We buy non-ferrous metal from peddlers, metal dealers manufacturers (production offcuts), generators of electricity, telecommunication service providers and others that generate obsolete metal

==> picture [33 x 34] intentionally omitted <==

We sort, shred, shear, torch, bale or break ferrous metal

Non-ferrous shredder We sort, shred, granulate, residue(NFSR) or byshear and bale non-ferrous product from ferrous metal shredding We sell recycled metal to end users – electric arc furnaces, integrated steel mills, foundries and smelters

==> picture [39 x 32] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

10

Metal – FY21 Volumes

==> picture [640 x 331] intentionally omitted <==

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

SALES VOLUMES INTAKE VOLUMES
By Segment By Segment
North America Metal North America Metal
16%
16%
ANZ Metal ANZ Metal
16%
16% UK Metal
50% UK Metal 51%
18% Global Trading & Other 17% Global Trading & Other
Brokerage
Brokerage
Non-Ferrous vs Ferrous Domestic vs Export
4% 16% Ferrous Trading
Non-Ferrous Trading
Brokerage
80%
UK ANZ NAM UK ANZ NAM
Ferrous Non-ferrous Domestic Export
----- End of picture text -----

11

==> picture [360 x 405] intentionally omitted <==

Structural Market Tailwinds

==> picture [45 x 44] intentionally omitted <==

12

Structural market tailwinds

Driven by decarbonisation commitments across countries and companies

COMPANIES[1]

GOVERNMENT – NET ZERO TARGET STATUS[2]

Percentage of total global GHG emissions across all nations

“At least one fifth (21%) of the world’s 2,000 largest public companies, representing sales of nearly $14 trillion, now have net zero commitments.”

==> picture [282 x 172] intentionally omitted <==

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

43%
20%
14%
12%
10%
0.40%
In law In policy Declaration Proposed No target Achieved
document / pledge / in discussion (self-declared)
----- End of picture text -----

1Taking Stock: A global assessment of net zero targets. March 2021 Energy & Climate Intelligence Unit

==> picture [79 x 49] intentionally omitted <==

2 Post-COP26 Snapshot. 25 November 2021 https://zerotracker.net/analysis/post-cop26-snapshot/

==> picture [64 x 23] intentionally omitted <==

==> picture [72 x 31] intentionally omitted <==

==> picture [72 x 43] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

13

Structural market tailwinds

A circular economy is key to achieve net-zero targets

Moving to renewables can address 55 percent of global GHG emissions to meet the UN climate goals, it will be essential to address the remaining 45 percent that comes from manufacturing everyday products Ellen Macarthur Foundation

==> picture [298 x 288] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

14

Structural market tailwinds

Significant opportunity in Ferrous

==> picture [636 x 259] intentionally omitted <==

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

7% of global Producing new steel from ferrous scrap An electric arc furnace can be charged
requires 60% less energy and with 100% Steel scrap. A basic
greenhouse emissions are
reduces CO2 emissions by 58% oxygen furnace can be charged with as
produced by the global
compared with producing steel from much as 30% scrap [3]
steel industry [1]
virgin materials [2]
CHINA 2020 2030 CAGR
(million tonnes) (million tonnes)
Scrap Demand 248 343 +3.3%
EAF Production 80 162 +7.3%
Lifted ban on high quality recycled
ferrous on 1 January 2021
Internal estimates
----- End of picture text -----

Source:

• 1 World Steel Association

• 2 Institute of Scrap Recycling Industries (ISRI)

• 3 World Steel Association

==> picture [45 x 44] intentionally omitted <==

15

Structural market tailwinds

Emerging industries are expected to drive demand for non-ferrous metal

Electric Vehicles[1]

Renewable Energy[1]

Annual copper consumption in EVs and ICE vehicles

==> picture [258 x 135] intentionally omitted <==

• EVs can use up to 3.5 x as much copper when compared to an internal combustion engine (ICE) passenger car. The amount goes up as the size of the electric vehicle increases

Aluminium demand in the solar energy sector under base case, AET-2 and AET-1.5 scenarios

==> picture [253 x 130] intentionally omitted <==

• Annual aluminium demand from solar could rise by 3.5 x

• Average aluminium content of a photovoltaic (PV) system at 21kg per kW. In concentrating solar power (CSP) systems the intensity of aluminium use is more than double that, approximately 47kg per kW

==> picture [45 x 44] intentionally omitted <==

16

Source:[1 ] Wood Mackenzie

Structural market tailwinds

There is rising demand for repurposing units due to significant carbon reduction benefits and growth of the cloud industry

• In FY21 there were estimated to be 85 million units suitable for repurposing in the cloud[[1 ]]

==> picture [614 x 257] intentionally omitted <==

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

suitable for repurposing in the cloud [[1 ]]
Enterprise data storage is expected to grow 250%
over the next 5 years [[1]]
Kg CO2 Reuse/Redeploy Recycling –
– Embodied Avoided
Carbon [2,3] Carbon [2,4]
Server 2,333 51
Laptop 211 3
Mobile 58 0.4
phone
----- End of picture text -----

• Enterprise data storage is expected to grow 250% over the next 5 years[[1]]

• 1 Source: International Data Corporation (IDC), Sims estimates. Calculation is based on SLS regions and excludes recycled units

==> picture [45 x 44] intentionally omitted <==

• 2 Source of estimates: Reuse uses the average of product carbon footprint data, publicly available for several companies. Recycling is based on a combination of internal estimates and data sourced from LCA database.

• 3 Embodied carbon refers to the carbon emissions that are avoided from the manufacture of a new product

• 4 Avoided carbon refers to the carbon emissions that are avoided from the extraction of new raw materials

17

Markets

Large price increases in FY21 vs FY20 and unprecedented size of global stimulus package

Ferrous[1] – Improved pricing since April 2020 lows

Government fiscal spending COVID-19 vs GFC[2] (in % of GDP)3

==> picture [40 x 107] intentionally omitted <==

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

600
500
400
300
200
100
(US$ / tonne)
Turkey HMS 80:20 Price
----- End of picture text -----

==> picture [287 x 120] intentionally omitted <==

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

30.0%
25.4%
25.0%
20.0% 16.3% 16.2% 16.5%
15.0% 2009
10.0% 6.5% 2020/2021
4.7% 4.7%
5.0%
1.1%
0.0%
US UK Australia China
----- End of picture text -----

==> picture [219 x 64] intentionally omitted <==

Non-ferrous[1] – Improved pricing since April 2020 lows

==> picture [117 x 107] intentionally omitted <==

==> picture [123 x 107] intentionally omitted <==

==> picture [56 x 103] intentionally omitted <==

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

2000
1500
1000
500
(US$ / tonne)
Zorba and Twitch Price
----- End of picture text -----

==> picture [45 x 44] intentionally omitted <==

==> picture [84 x 8] intentionally omitted <==

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

Zorba Twitch
----- End of picture text -----

1 Source: Platts (top and bottom chart)

2 GFC – Global Financial Crisis

3 Sources: Atlantic Council based on IMF,EC & ILLS, World Bank. Fiscal measures include stimulus packages announced or implemented through Mar 10, 2021

18

==> picture [360 x 405] intentionally omitted <==

Sims is poised to capitalise on market tailwinds

==> picture [45 x 44] intentionally omitted <==

19

Well-positioned towards macro trends Sims is a unique investment in global decarbonisation

==> picture [669 x 299] intentionally omitted <==

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

Engineering and
years of technical Global operations with
technology to create
104 expertise and domestic and export
better quality of
relationships in recycling transportation & logistics
products and solve
some of the biggest
global problems
Integrated business Strategic growth Balance sheet
strategy – multi-year plan plans fully align conservatively
to drive growth in the environmental & structured.
core metal business and financial goals No net debt
deliver accelerated
growth through
environmental
Access to capital
adjacencies
markets drives
Strong ESG
investment and
credentials
innovation at a
large scale
----- End of picture text -----

20

Clear pathway to deliver on FY25 targets

==> picture [622 x 252] intentionally omitted <==

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

Guided by our purpose Rooted in our Strategy FY25 Business Targets
Create a world without Metal Recycling
waste to preserve our planet Expand metal volumes in Ferrous – 9.6 million tonnes
favourable geographies
Grow U.S. non-ferrous business Non-ferrous – 300,000 tonnes
Sims Lifecycle Services
8.5 million of repurposed units
Grow Recycling of Cloud
Infrastructure
Resource Renewal
Capacity 120k - ASR tonne/year
Enter Resource Renewal
LMS Energy
Expand proven landfill energy 50 megawatts
business overseas
----- End of picture text -----

We support our customers’ sustainability agendas and help them transition to a global circular and low-carbon economy

==> picture [45 x 44] intentionally omitted <==

21

Sims has technology to deliver enhanced metal yields and quality

• The benefits of supplying high-quality products are:

• Price premium

  • Sims produces 99% metallic zorba, furnace ready high-grade copper and furnace ready twitch, red/grey heavy

• Reduce further our customers’ carbon footprint

• Acquired Alumisource in February 2021

• Delivers a clean product that skips an intermediary melting process and is direct charged into the furnace at semi-producers melt shops, saving significant energy

==> picture [330 x 220] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

22

==> picture [360 x 405] intentionally omitted <==

Sustainability Elise Gautier

==> picture [45 x 44] intentionally omitted <==

23

Our ESG journey

==> picture [86 x 37] intentionally omitted <==

First disclosure to the CDP

==> picture [212 x 10] intentionally omitted <==

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

2005 2008 2013
----- End of picture text -----

First standalone Sustainability Report

Named Corporate Knights Global Top 100 Most Sustainable Corporations for the first time

==> picture [91 x 90] intentionally omitted <==

==> picture [41 x 41] intentionally omitted <==

Published first Reconciliation Awarded Terra Action Plan Carta Seal

Sims Purpose articulated

2018

==> picture [28 x 10] intentionally omitted <==

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

2020
----- End of picture text -----

2021

Named executive with responsibility for sustainability

First standalone TCFD report

==> picture [71 x 100] intentionally omitted <==

==> picture [74 x 49] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

24

Our achievements

2021 - named Top 100 Global Most Sustainable Received maximum Terra Carta Seal for Corporations for the creation of AAA rating seventh time sustainable markets

Selected in world-first ACSI assessed Sims investment fund that Limited as a ‘Leader’ applies Māori values in ESG reporting and principles in selection

Who we work with

==> picture [45 x 44] intentionally omitted <==

25

Sustainability Framework

==> picture [557 x 298] intentionally omitted <==

==> picture [45 x 44] intentionally omitted <==

26

Sustainability Framework

Sustainability goals drive economic, environmental and social value

OPERATE RESPONSIBLY

CLOSE THE LOOP

• 1 Foster a safe work environment

• 1.1 Total Recordable Injury Frequency Rate (TRIFR) ≤ 1

• 1.2 Lost Time Injury Frequency Rate (LTIR) ≤ 0.10

• 1.3 Achieve and maintain a safety culture index in the survey top quartile

• 1.4 Eliminate critical safety risks, Critical Risk Incident Frequency Rate (CRIFR) ≤ 0.50 2 Close gender gap

• 2.1 25% women in manager positions and above[1]

• 2.2 Reach 0% gender pay gap across Sims Limited 2.3 Achieve representation of women on the board ≥ 40% 3 Develop a skilled and engage workforce

• 5 Become carbon neutral by 2042 and achieve net zero by 2050

• 5.1 Reduce Scope 1 and 2 emissions by 23% by FY25

• 6 Achieve no waste to landfill

• 6.1[Build resource renewal capacity to transform 120k tonnes of ASR per year into new ] products

• 7 Close materials loops further by expanding capacity and services

• 7.1 Close loops by expanding secondary metal volumes 7.2 Repurpose 8.5 million units 7.3 Expand municipal recycling coverage by 50% 7.4 Capture methane from landfills outside Australia and New Zealand(50 Megawatt)

• 3.1 Maintain an engaged and satisfied workforce as demonstrated by employee engagement survey results in the top quartile

• 3.2 Invest in education by increasing the number of available career development training programmes by 50% and promoting them

• 3.3 Improve annual employee performance review process to align with Sims Limited’s purpose; incorporate role competencies and skills development plan

• 3.4 Ensure management incentive plan is consistent with sustainability goals 4 Ensure transparency on how our business is conducted in an ethical manner

• 4.1 Train all employees and agents on our Code of Conduct, anti-corruption and antibribery policies

• 4.2 Provide all employees with training on human rights, modern slavery and labour rights to raise awareness and help fight human rights violations Develop a supplier Code of Conduct and implement supply chain due

• 4.3 diligence to identify and address high risk of human rights violations and unethical practices

PARTNER FOR CHANGE

• 8 Build trusted relationships with our communities

• 8.1[Establish at key sites a community index survey; track progress for continuous ] improvement

• 8.2[Annually, invest 0.5% of three-year rolling pre-tax profits in programmes that ] support environmental stewardship and economic empowerment

• 8.3 Dedicate paid employee time for community engagement/volunteerism activities 9 Create new business models that further the circular economy

• 9.1[Generate 10% of our EBIT from new business models and opportunities] that enable the circular economy

==> picture [45 x 44] intentionally omitted <==

27

1. Managers that sit at CEO-1 and CEO-2 in reporting structure

Sustainability highlights

2.1m 1.2 TRIFR[renewable ] 19[%] electricity used cloud storage units Lowest total recordable across our facilities[1] repurposed injury frequency rate (TRIFR) to date of the executive out of 9 Board >650k members are leadership team 4 tonnes of municipal 30[%] are women[2] women[3] curbside recycling processed Planning development 350+ courses granted for pilot plasma 8.6m gasification plant in now available on Sims tonnes of secondary Rocklea, Australia University online learning metals recycled platform 31% Acquisition of leading aluminium processor, 500k MWh increase in repurposed cloud forecast to grow North Of base-load renewable storage units[4] entering American recycled nonenergy generated via LMS secondary electronics markets ferrous retail volume by 24%[5]

1 Includes on-site generated renewable energy without renewable certification claimed by Sims

2 Three out of 10 members of the executive leadership team (ELT) self-identify as female

4 A repurposed unit is any unit that re-enters the market by being resold or redeployed. It excludes units that are shredded.

==> picture [45 x 44] intentionally omitted <==

3 Includes changes in FY22

5 Based on FY20 baseline

28

==> picture [360 x 405] intentionally omitted <==

Finance Stephen Mikkelsen, Group CFO

==> picture [45 x 44] intentionally omitted <==

29

Summary of FY21 Financial outcomes All profitability metrics showed major improvement

Sales Revenue $5,916.3 million

Sales Volumes 8.593 million tonnes 1H 4.30 million | 2H 4.25 millionFY20 5.4% 8.154 million tonnes

==> picture [206 x 184] intentionally omitted <==

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

FY20 20.5%
$4,908.5 million
Underlying [1] EBITDA
$579.9 million
1H $61 million | 2H $123 millionFY20
300.2%
$144.9 million
Underlying [1] EBIT
$386.6 million
1H ($5) million | 2H $63 millionFY20 767.7%
$(57.9) million
----- End of picture text -----

Net Cash Balance $8.3 million As at 30 Jne 201630 June 2020 -92.5% $110.4 million

Return on Productive Assets[2] 20.4% 1H (0.4)%FY20 | 2H 5.5% 780.0% -3.0%

Underlying[1] NPAT $284.1 million FY20 1H ($18) million | 2H $56 million 589.0% $(58.1) million

Final Dividend 30 cps (50% franked) FY20No final dividend 30 cps

1 Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges, and internal recharges

2 Underlying EBIT / average of opening non-current assets and ending non-current assets excluding assets relating to adoption of AASB 16 Leases

==> picture [45 x 44] intentionally omitted <==

30

Operating costs Achieved $75 million of predominantly fixed cost savings in FY21 compared to FY19

FY21 Predominantly Fixed Costs[1,2]

▪ Delivered $75 million in predominantly fixed cost savings in FY21 vs FY19

▪

Note: $20 million of these further cost reductions require implementation of the ERP system in order for them to be maintained

==> picture [45 x 44] intentionally omitted <==

1 Approximately 70% of these costs do not vary materially within reasonable volume changes 2 Excludes Sims Lifecycle Services, Sims Municipal Recycling, Sims Resource Renewal and Sims Energy

31

Finance overview

==> picture [575 x 306] intentionally omitted <==

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

250 CAPITAL EXPENDITURE FY21
200
150 Sims Resource • Acquisition of Alumisource
Renewal
Alumisource
100 acquisition • Announced share buyback of
Growth Capex
up to $150 million [1]
50
Sustaining Capex
0
FY17 FY18 FY19 FY20 FY21 FY22F
RETURN ON PRODUCTIVE ASSETS DIVIDENDS DECLARED
25.0% 120.0
20.0% 100.0
15.0% 80.0
10.0% 60.0
5.0% 40.0
0.0% 20.0
(5.0%) -
F15 F16 F17 F18 F19 F20 F21 F15 F16 F17 F18 F19 F20 F21
A$ million
A$ million
----- End of picture text -----

==> picture [45 x 44] intentionally omitted <==

1 Share buy back announced on 23 August 2021

1H 22 Trading update

Earnings momentum continued into 1H FY22 driven by strong trading margins across all major segments

Group

• Forecasted underlying EBIT of $310 to $350 million in 1H FY22 driven by North America businesses, representing approximately a sixfold increase from the prior comparable period

• Strong trading margins in ferrous and non-ferrous products due to:

• sustained good market prices and

• sound margin management across all businesses

• Partially offsetting the strong margins has been freight price volatility and the emergence of inflationary pressures on general business costs

• The most likely risks to the 1H FY22 forecasted result are (i) timing of shipments towards the end of December and whether they are accounted, from a revenue recognition perspective, as December or January sales, (ii) volatility in market prices, and (iii) volatility in freight prices

• Proprietary intake volumes for the September Quarter 2022 were up over 10% on the prior comparable period. However, they were slightly below the FY19 average proprietary intake volumes, largely due to Covid-19 related lockdowns

• Operating cash flow for the September Quarter 2022 was solid, with a positive contribution from working capital movements. Operating cash flow for 1H FY22 and FY22 could be significantly positively or negatively impacted by the level of working capital in the business at that time, largely stemming from sales mix, commodity prices, and inventory levels

==> picture [45 x 44] intentionally omitted <==

33

Trading update

North America Metal

• Delivered a very strong trading margin for 1Q FY22 driven by a strong trading margin per tonne and good sales volumes

• Intake volumes were up on both the prior comparable period and the FY19 average

Australia & New Zealand Metal

• Delivered a strong trading margin in 1Q FY22 driven by a strong trading margin per tonne, partially offset by weaker sales volumes

• Intake volumes were up on the prior comparable period but down on the FY19 average due to the impact of lockdowns

UK Metal

• Delivered a strong trading margin for 1Q FY22 driven by a strong trading margin per tonne, despite pressures in ferrous products due to lower premium from the deep-sea market

• Both sales and intake volumes were down on the prior comparable period due to a combination of yard closures and Covid-19 impacts

SA Recycling

• Delivered a very strong EBIT contribution for 1Q FY22, driven by a strong trading margin per tonne and good sales volumes

• The business progressed on its growth strategy with four acquisitions, including the recently announced acquisition of PSC

SLS

• Increased repurposed units and achieved double-digit growth in underlying EBIT in Q1 FY22 compared to prior comparable period

34

Macro trends

Positive trends present a multi-year structural-growth opportunity for Sims

• Ongoing or announced stimulus spending will increase demand for steel intensive infrastructure spending and drive retail consumption. Post consumption scrap will also increase. Positive for metal recycling (both ferrous and non-ferrous)

• Global decarbonisation of steel making, and electricity generation industries will drive demand for recycled metal

• Cloud repurposing continues to grow at a rapid pace

• There are risks to the materialisation of these positive drivers, particularly as it relates to global uncertainty from geopolitical risks, macro-economic factors, and the unpredictability of how COVID-19 may evolve

==> picture [45 x 44] intentionally omitted <==

35

==> picture [360 x 405] intentionally omitted <==

Q&A

==> picture [45 x 44] intentionally omitted <==

36

==> picture [360 x 405] intentionally omitted <==

Appendix

==> picture [45 x 44] intentionally omitted <==

37

Employee Health & Safety

Lowest ever recorded number of injuries, despite adverse changing conditions in FY21

• Proactive lead indicator programs drove significant safety improvement, including

Actual incidents significantly reduced year over year

==> picture [290 x 124] intentionally omitted <==

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

140
120
100
80
60
40
20
0
Critical Risk Recordable Injuries Lost Time Injuries
Incidents
FY19 FY20 FY21
----- End of picture text -----

• Lowest number of critical risk incidents

• Lowest number of recordable injuries

• Lowest number of lost time cases

• 11,977 corrective actions were identified and closed. This represents 96% of total identified actions

• Equal lowest TRIFR driven by lowest ever recorded number of injuries despite a 20% loss of hours year over year, driven by COVID-19 related reductions in staff, temporary site shut-down, and the sale of SLS sites in Europe

Total Recordable Injury Frequency Rate (TRIFR)[1]

==> picture [261 x 129] intentionally omitted <==

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

3.5
2.9
3.0
2.5
1.8
2.0 1.6
1.5
1.3 1.3
1.5 1.2
1.0
0.5
0.0
FY15 FY16 FY17 FY18 FY19 FY20 FY21
----- End of picture text -----

==> picture [260 x 74] intentionally omitted <==

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

-24% -20%
Recordable Injuries Work Hours
in FY21 vs FY20 in FY21 vs FY20
----- End of picture text -----

==> picture [45 x 44] intentionally omitted <==

1 Defined as total recordable injuries x 200,000 divided by number of hours worked for employees and contractors.

38

Sustainability

We are pleased with our progress across each of the pillars, despite COVID-19 disruption

==> picture [51 x 301] intentionally omitted <==

Sims’ Sustainability Pillars

Operate Responsibly: Foundation of a sustainable company

We commit to operating as a best-in-class business continuously improving our safety performance, employee engagement, operating performance and upholding responsible and ethical business practices

Close the Loop: Raising the bar on sustainability

We commit to investing in innovative technologies to extract more value from materials, re-think waste and enable the circular economy to not only close our own materials loop but support others do the same

Partner for Change: Amplifying our impact

We commit to working with our partners to create new business models that ensure a safe, healthy and productive value chain to create shared value and keep resources in use at their highest value as long as possible

FY21 Update

• Executed the Safety Risk Incident Programme

• Implemented control measures to prevent or minimise exposure of employees to COVID-19 risks during rendering of essential services

• Developed the FY25 and beyond sustainability targets

• Increased usage of renewable energy across the Sims operations

• Developed pipeline of projects for carbon mitigation, reduction and elimination

• Increased the number of partnerships to enable circularity and maintain resources in use as long as possible

• Worked with the World Business Counsel of Sustainability Development to create circularity metrics, solutions and partnerships for circular electronics and plastics and packaging

39

Group Financial Performance

A$m	FY20	FY21	% Chg
Sales revenue	4,908.5	5,916.3	20.5%
Statutory EBITDA	35.7	507.3	1,321.0%
Underlying EBITDA1	144.9	579.9	300.2%
Statutory EBIT	(239.1)	314.0	231.3%
Underlying EBIT1	(57.9)	386.6	767.7%
Statutory NPAT	(265.3)	229.4	186.5%
Significant items 207.2 54.7 -73.6%
Underlying NPAT1	(58.1)	284.1	589.0%
Statutory EPS - diluted (cents) (131.2) 112.8 186.0%
Underlying EPS – diluted (cents)1	(28.7)	139.6	586.4%
Dividend per share (cents)	6.0	42.0	600.0%
Average non-current assets2	1,917.7	1,891.6	-1.4%
Return on productive assets2	-3.0%	20.4%	780.0%

• Strong earnings growth due to:

• Higher sales revenue and volumes

• Lower operating costs with cost savings of $75 million in FY21 compared to FY19; and

• Margin improvement driven by active margin management and higher pricing

1 Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges, and internal recharges

2 Annualised underlying EBIT / average of opening non-current assets and ending non-current assets excluding assets relating to adoption of AASB 16 Leases

==> picture [45 x 44] intentionally omitted <==

40

On track to deliver on FY25 targets

==> picture [659 x 278] intentionally omitted <==

41