A webcast of Sims Investor Strategy Day Presentation can be viewed on demand http://streamit.webcastcloud.com.au/Mediasite/Catalog/catalogs/2019simsinvestorday

8 April 2019

Sims Investor Strategy DayCreate a world without waste to preserve our planet.

8 April 2019

Grow PreservePurpose Invest

Disclaimer

3

The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 8 April 2019. 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.

RS1001948

1956

YEA1988

2005 2007

2008

2017

1917Albert G Sims starts a scrap metal collection business

Albert G Sims Ltd listed on

AustralianStock

Exchange

First export sales ofsteel scrap metal to Japan

Enteredthe USmetals recycling

market with acquisition of

LMCin California Formed a

jointventure withAdams

Steelcreating SA Recycling

Celebrated 100years

Merged with Hugo Neu, one of the largestexportersof scrap metal in the US

Acquired Metal Management, one of the largestrecyclers in the US

We Have Been Here for Over 100 Yearsand will be here for another 100 years

4

Fe

Processes~500k tonnes

of municipalcurbside material

Recycles430k tonnes

of e-recycling

Recycles430k tonnes

of non-ferrous

Recycles9.4 milliontonnes of ferrous

In revenue

5,000+EMPLOYEES

>$6.4 BAUD

Generates395k MWh

of renewable energy

5

Where We Are TodayA great base to continue to grow

Sims: Largest listed dedicated metals recycling company

globally

Largest dedicated metals recycler in the US

Largest dedicated metals recycler in Australia and New Zealand

Second largest dedicated metals recycler in the UK

Largest electronics recycler

Operates municipal recycling for the largest US city(>8 million people) since 2003

Owns the largest landfill energy operator in Australia in partnership from 2001

Member of the World Business Council on SustainableDevelopment

250+FACILITIES

Total recordable injury frequency

rate1

1.3TRIFR

Operating in 18 Across 18 countries countries

1. Defined as total recordable injuries x 200,000 divided by number of hoursworked.

Sims Strategy

OutcomesCompetitive AdvantagesStatement

Sims’ strategy is to broaden its participation in the environmental sector through a portfolio of businesses aligned to its Purpose

Be the global leader in metals recycling by: Expanding our ferrous and

non-ferrous volumes in favourable geographies

Continuously improving through technology application

Lead the conversion of waste to energy by: Entering the waste to energy

space Taking the LMS Energy business

model overseasGrow recycling the cloud1 by: Providing innovative solutions in

this vast emerging market

6

Global Structure Engineering and

technical expertise Excellent market

position with strong balance sheet ~20 years experience in

energy from non-traditional sources Strong relationships with

B2B clients

1. Recycling the cloud refers to the re-purpose and recycling of the server rooms that provide cloud computing and services.

RoadmapStrategyFact Base

Strategic ProcessStrong board and employee engagement

Purpose

7

Sims PurposeCreate a world without waste to preserve our planet

When we embrace our purpose, we will: Become a leading innovator in the

circular economy Be recognised around the world as a

responsible community partner Become an employer of choice in the

environmental sector Be the #1 or #2 player in the sectors in

which we compete

We will build enterprises that: Create long-term value by providing

secure and sustainable management of resources within the circular economy

Our strategy combined with our Purpose will: Provide safer working sites Reduce earnings volatility Reduce operational risk Counter threats to our core business

8

30 year megatrendsAn example of the analysis undertaken

9

Area

Economic/ Business

Social

Political

Environmental

01110110011001111 Technological

Category Megatrends Impact to Sims

ClimateChange

Waste

Water

Energy

ResourceSustainability

Natural disasters amore frequent and violent driven by rising CO2 emissions

Global waste will increase

Advanced materials will change thenature and composition of goods

Nuclear reactor decommissioning will generate radioactive waste tobe handled

Trade in waste will decline with emphasis placed on management, recycling and reuse

There will be less plastic pollution with theadvent of bio plastics

Increased demand and decliningavailability of freshwater in megacities

Renewables will make up to 50% of the energy capacity growth by 2040

Energy storage & peer-to-peer (P2P)energy trading will revolutionise traditionalutilities

Declining availability of low cost & highgrade mines across all commodities andminerals

Landfills mined for resources& energy

Increased push towards recycled materials to reduce carbonemissions

Higher landfill costs and need forsolutions

Increasing value of materials in waste streams and higher importance on separation

Need for development of economicsolutions

Material separation will occur in thedomestic market of materialorigin

Declining volume of plastic materials forprocessing (Municipal)

Need for development of economicsolutions

Increased supply of renewables risk cuts to government support from carbon permitsales

Potential for easier sale of and purchase of energy at lower prices

Higher prices across all commodities and improved economics for material recovery

Increased opportunities for materialrecovery

Increased pollution of globaloceans Need for development of economicsolutions

Implications over next five to ten yearsSims is well positioned to benefit from global trends

Size and ability to trade is needed to compete in the market

Global push for high quality metals

Expand metal volumes in favourable geographies

Growing demand for copper and aluminum scrap

Grow non-ferrous business

Increased environmental concerns

Higher landfill costs driving an increased focus on waste management

Enter waste to energyGrow municipal recycling

An increasingly connected world

Use of ‘cloud’ service continuing to expand Recycle the cloud

Increasing concerns around global warming

Drive for base load renewable energy

Take the LMS Energy business model overseasCO2

Under-investment in new copper ore capacity and aluminum production

10

Sims Energy

Expand proven business model and technology

globally

Develop recycling solutionsfor major cities

Secure additional large citycontracts by FY25

Sims e-Recycling

Grow product stewardship and services for recycling

the cloud

Recycle 10% of the cloudby FY25

Be the OEM supplier of choice for recycledplastic

Sims Waste to Energy

Utilise waste to createnew revenue stream and

reduce costs

Zero waste disposal & energy costs over the long

termInstall and operate seven

plants within 10 years

Sims Integrated StrategyGrow core business and leverage synergies to expand into adjacent markets

Sims Group

Sims Metals Sims Municipal Recycling

Fortify and growsustainable profits

Globally grow ferrous andnon-ferrous business.

Including:Doubling the US non-ferrous

business by FY25Growing the US ferrous business ~40% by FY25

Acquire or build 50 MW byFY25

11

Sims MetalsFortify and grow sustainable profits

OutcomesCompetitive AdvantageThemes

USA metals recycling industry consolidation

Continuing to play to our strengths in the export market with heightened flexibility

Customers demanding higher quality materials

Engineering and technology expertise to create better quality

Diversity of customers

Global trading function and expertise across all regions

Strong balance sheet and market position

Grow ferrous in favourable geographies

Grow non-ferrous business

Increased automation and continuous improvement

Ongoing review of the global business footprint

12

Sims Waste to EnergyUtilise shredding waste to create new revenue stream and reduce costs

OutcomesCompetitive AdvantageThemes

Worldwide increasing costs of waste disposal are a risk to metals business

Rising energy prices

Demand for controllable renewable sources of energy

Production and ownership of1.3 million tonnes per year of shredding waste

Shredding waste has high energy content (~16 mega joules / kg)

Ability to time shift plant operation

Synergies with LMS Energy

Generate a new revenue stream

Reduction in waste disposaland energy costs

IP and operations knowledge

13

Sims E-RecyclingDrive profitable growth through product stewardship and service for large corporate clients

OutcomesCompetitive AdvantageThemes

Significant cloud computing growth

More stringent data privacylaws

Increased demand for recycled content in manufacturing

Well established online resale channels

Global footprint aligns withcloud server centers

Data security leadership and strong corporate governance

Technology and partner leadership to recover plastic for re-use

Become the leading globalprovider of “cloud recyclingsolutions”

Become the supply chain partner of choice for the OEM plastic needs

14

Sims EnergyExpand proven business model and technology globally

OutcomesCompetitive AdvantageThemes

Expand the landfill energy business model to the US and UK

Energy demand is increasing

Drive to reduce greenhousegas emissions

Demand for baseload renewable energy

15

Energy and engineering expertise since 2001

A successful and proven landfill energy business model with nearly 60 MW and >20 sites in Australia

Combination of landfill gas and solar energy on one site

Sims global footprint

Sims Municipal RecyclingDevelop waste management solutions for mega cities

OutcomesCompetitive AdvantageThemes

Waste is increasingly recycled, reused or destroyed

Municipals moving to combine recycling material

Municipals requiring increased recycling rates from waste

Serviced largest US city since 2003 – population 8.6 million

Operations across – NYC,New Jersey and Chicago

Operations across all wastetypes – metal, glass, plasticand paper

First mover technology

Strong Sims synergies – e.g. separation technology, recovered metals

Expand existing recycling contracts to add other waste types

Grow municipal contracts

Grow private contracts

16

Target MeasuresTargeting minimum 15% return on growth projects requiring capital

17

4,700Expand metal volumes in favourable geographies 6,500

Grow non-ferrous business

Enter waste to energy

Recycle the cloud

Take the LMS Energy business model overseas

CO2

NAM Non-F

140errous Retail Volume

200s (‘000 tonnes)

300

NAM F errous Volumes (‘000 t

5,800onnes)

0Waste to E nergy Capacity (ASR ‘

160000 tonnes)

290

Market Sha

0%re by volume of Clou

5%d Recycling

10%

0 15

FY18 FY22 FY25

Landfill energy outside Australia 1 (MegaWatts)

50

1. Nearly 60 MW in operation inAustralia.

Sims Investor Strategy DayWaste to Energy (WtE)

8 April 2019

Lower cost EnergyWaste Preserve

Waste to Energy Opportunity1 million tonne of Automotive Shred Residue (ASR) can be converted to energy / year

19

Extra Large Plant >130k tonnes ASR Excellent returns for large WtE plant 1 plant Total waste 190k tonnes

Large Plants >80k & <130k tonnes ASR Excellent returns for medium WtE plant 2 plants Total waste 225k tonnes

Medium Plants >50k & <80k tonnes ASR Viable returns for small WtE plant 10 plants Total waste 625k tonnes

Small Plants <50k tonnes ASR Insufficient waste to justify WtE

investment 8 plants and total waste 260k tonnes

Waste is a resource Sims generate 1.3 million tonnes of ASR /yr 1.0 million tonnes comes from plants that

produce enough ASR to be viable WtE facilities converts this to 1,100 GWh / yr Sims incurs $103 million in waste costs per annum

and targeted WtE facilities would remove 75% ofcosts when fully implemented

Sims Targeted WtE Facilities

US, $49

UK, $24

ANZ,$30

Sims regional waste cost / year ($million)

Process and TechnologySolutions based on gasification technologies – this is not traditional incineration

20

Inputs Process Outputs

Gasification

Syngas

Vitrified Waste(Road base –18% of input)

Metal (3% or more)

Steam Turbine

Liquid Production

ElectricalEnergy (56K MWh –228K MWh)

Waste (2% of input)

Biofuel (52K –

176K bbls)

Sims Waste ASR75%

(60K - 200KTonne per site)

3rd PartyWaste25%

(10 – 40K Tonneper site)

Output Option

100%

80%

60%

40%

20%

0%GasificationTypical Plant Incineration

Waste

Waste By Products Metals

Plant Waste by Technology

* Note: Tonnes, MWh (MegaWatt hours) and bbls (barrels)are annualisedfigures.

Sims is well placedWith unique advantages to succeed and minimise waste and environment impact

21

High energy content in ASRWhy Sims 75% of feedstock is guaranteed from

internally produced ASR 3rd party feedstock improves the returns

and allows blending and normalisationof feedstock – Calorific value

Higher value returns – “Behind the meter” energy

Mitigates risks of increased tip fee costs for the future

Management team with extensive large industrial project experience

Existing skills in energy generation andthe energy market

Material ApproximateCalorific Value (MJ/kg)

MSW 7

Paper 13

ASR 16

Plastic 20

Medical 20

Tyres 30

990,90%

110,10%

Feed In Behind the Meter

Feed-in revenue between$65-$73 / MWh

Energy Production 1,100 GWhBehind the Meter cost

savings $100-$275 / MWh

Sound investment todayWith significant potential upside if feed-in tariff (FIT) and tipping fee increases

22

-10

-5

0

5

10

15

20

Gate Fee

Fixed Cost

Energy

Var Cost

ByProducts

EBITDA

Single ANZ WtE Plant Financials Feed-in increase to $125 / MWh in 2030

* Assumes 2% escalation from base year 2019.

Potential if Environmental levy

rebate removed

2030 @ $89* FIT 2030 @ $125 FIT

Electricity feed-in tariffs Australian electricity feed-in tariffs are

dynamic with current peak >$125 / MWh Average feed-in could reach this by2030 An average feed-in of $125 by 2030

increases feed-in revenue 31% and for an ANZ WtE facility $2.5 million / yr

Waste disposal Gate fees represent ~50% of revenue and

any shift in gate fees or reclassification of waste will have a more significant upside

If the NSW environmental levy rebate were to be abolished in 2030 gate fees would shift from $138* in 2029 to $227* in 2030 -increased revenue $4.8 million / yr

Waste to Energy (gasification) - Phase 1

Best initial WtE implementations are in ANZ and NAM due to economic, environmental, logistics and business integration factors

First site is anticipated in Australia and co-located with a processing facility

Detailed feasibility including preliminary engineering, technology selection, environmental, regulatory and community consultation and analysis will be conducted in 2019

Expect first site to be operational 2022 with a second and larger capacity site by 2023

Larger US sites explored after ANZ implementations to build on capability and expertise

Each implementation will scale up the previous and provide replicable working solutions

Forecast capex of ~$158 million over five years

Year 3 4 5

ANZ

US

0 1 2

Feasibility Plan &Execute

onal

23

Feasibility Plan & Execute

Feasibility

Feasibility Plan & Execute 75% Ops 100% Ops

Plant 1 – 80K T waste - $53M Capex Operational 3rd PartyWaste

Plant 2 – 80K T waste - $53M Capex Operati

Plant 3 – 130K T waste - $68MCapex

Plant 4 – 200K T waste - $112MCapex

Over 5 years two sites will be implemented and two more in planning/execution

Approach, location and timing 5 Year Deployment Plan

Waste to Energy (gasification) - Phase 2Roll out to sites that meet sustainable criteria based on a proven scalable model

Investment A WtE facility is a 30 year investment and

the suitability of each location is dependent on a broader asset strategy

Every target location is assessed on a caseby case basis

Expect 7 sites implemented over 10 yearsReturns IRR range of over 25% assuming inclusionof

3rd party waste and current energy and waste disposal costs

Significant upside potential in offset and risk mitigation of escalating future waste costs and energy feed-in tariffs

WtE – Cumulative Revenue to Investment2,500

2,000

1,500

1,000

500

0

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

Cummulative EBITDA Cummulative Investment

WtE Target Facility Implementation

24M

illion

s

Sims Investor Strategy DaySims E-Recycling

8 April 2019

Growth B2BCloud Circular

Current Sims E-Recycling business modelDominated by traditional “shredding” operations

Enhanced B2B Services

Global B2B Clients

Compliance Schemes & Trading >75%

make

26

Future Sims E-Recycling business modelPath to Achieve Meaningful Growth

B2B ExpansionLargest target – Recycle the cloud

Circular EconomyAdd closed loop OEMs

Compliance Schemes & Trading

make

27

Circular economy

Customer purchasesHP product

Customer recyclesEOL product

Product recycled

HPmanufactures product

Closed-loopPCR resin fornew product

Recyclingoutput material

Circular Economy in

action

Sims E-Recycling already has an established business model

Business Process HP closed-loop hardware recycling program

28

Global cloud service marketStrong business relationships with key players in cloud service and hardware

29

There are three groups of customers: Cloud service providers

Data center hardware providers

Large corporate clients

~6 million tonnes of rack and servermaterial currently in use

~2 million tonnes per year of high qualityreusable and recyclable material will bereleased

Established relationships with most of the Fortune 100 - expanding into the new service offerings

Synergies with other Sims businesses

2018 Cloud Revenue1 (US$bn)estimated28 26

20

126 6 5

302520151050

Data Centre Equipment Market2 (US$bn)

38 42 47 5361

7180

60

40

20

02015 2016 2017 2018F 2019F 2020F

10.3% p.a. compounding growth

1. Forbes2. Statistica.com

Top 10 data centre locationsCurrent SRS Footprint aligns with large global data centre locations

2,208

30

107419

262102 131

228

# Subcontractor location

198406

242

# of Data Centers

# Sims E-Recycling location

Data centres and mobile cloud storageHigh volume and high quality

31

Conclusion

32

12%10%

8%6%4%

2%0%

Current FY22 FY25

Targeting 10% market share by 2025 The cloud is growing exponentially

Infrastructure as a Service (IaaS) is the fastest-growing segment of themarket

Sims E-Recycling has strong global relationships with the dominant IaaSproviders

Sims E-Recycling considers itself as a “first mover” in this global space

IaaS providers require metal recycling, component resale, global compliance, and strong security governance. All comprehensively and uniquely provided by the SimsGroup

The global install base of ~6 million tonnes has just begun to be perpetually refreshedwith new material creating a large and ongoing stream of material

Market Share by Volume of Cloud Recycling

Sims Investor Strategy DaySims Energy

8 April 2019

Analyse InvestBusiness model Global

Sims EnergyExpand proven business model and technology globally

OutcomesCompetitive AdvantageThemes

Energy demand is increasing

Drive to reduce greenhousegas emissions

Demand for base load renewable energy

Energy and engineering expertise since 2001

A successful and proven landfill energy business model with nearly 60 MW and >20 sites in Australia

Combination of landfill gas and solar energy on one site

Sims global footprint

Expand the landfill energy business model to the US and UK

34

-

5,000

10,000

15,000

20,000

25,000

Previous Operator Operator - LMS Energy

LMS Energy operation

Landfill energy expertiseIntellectual property (IP) is transferable from LMS Energy

35

LMS has been successful because of the intellectual property it has developed:

Landfill Gas Extraction

Gas Conditioning

Electricity Generation

Market Understanding

LMS intellectual property is transferable and can be replicated around the world

Similar capital and operating environment overseas to apply LMS IP

Therefore, it’s important to understand the potential revenue in target markets

REC creation from landfill energy site

Source: Australian Renewable Energy Certificate Registry

Previous operator outputSite closed 2014

Determining the best opportunityStaged and disciplined approach

36

• Political stability• Legal system• Grid reliability• Sims presence

Region

• Gov. incentives• Energy prices• Waste policy• Other regulations

Country

• Opportunity size• Location & grouping• Technology• Ownership

Company

• Gas resource• Plant availability• Potential returns• Environmental issues

Projects

Stage One Stage Two

Potential targets identified

37

Stage one identified USA and UK as the best regions USA and UK offer the best opportunities

These are mature markets so acquisition of underutilised assets is the best entry mechanism

Apply LMS Energy intellectual property to maximise asset return

Many landfill energy in the USA

Source: U.S. Environmental Protection Agency

Determining the best opportunityStaged and disciplined approach

• Political stability• Legal system• Grid reliability• Sims presence

Region

• Gov. incentives• Energy prices• Waste policy• Other regulations

Country

• Opportunity size• Location & grouping• Technology• Ownership

Company

• Gas resource• Plant availability• Potential returns• Environmental issues

Projects

Stage One Stage Two

38

Potential targets identifiedWithin the best regions Target opportunities are around the 15

to 20 MW size range

A number of operational landfill energy sites appear underutilised

Some underperforming assets have been identified

Renewable natural gas provides potential upside in USA with supportive government policies

USA LFG projects 630 Companies that meet criteria 12 Initial targets 4

UK LFG projects 250 Companies that meet criteria 5 Initial targets 2

39

Why Sims Energy

40

Proven business model, technology and expertise for the best opportunities

Familiar with the proven business model

Ready access and knowledge of the required technology and expertise

Potential long term offtake agreements

Relatively stable earnings

Leverage Sims global presence

A minimum of 50 MW by 2025

Sims Investor Strategy DayNorth America Metals (NAM)

8 April 2019

Non-ferrous Consolidate GrowFerrous

# SAR Sites

# SMM Sites

# RSR JV Sites

4 RSR JV

10

West

51

827

78

4

18

Southwest Southeast

MidwestMetro/East

New England

Strong Market LeadershipWell positioned in key North American markets

42

Sims MetalsFortify and grow sustainable profits

OutcomesCompetitive AdvantageThemes

USA metals recycling industry consolidation

Continuing to play to our strengths in the export market with heightened flexibility

Customers demanding higher quality materials

Engineering and technology expertise to create better quality

Diversity of customers

Global trading function and expertise across all regions

Strong balance sheet and market position

Grow ferrous in favourable geographies

Grow non-ferrous business

Increased automation and continuous improvement

Ongoing review of the global business footprint

43

USA MarketLeading market share with more opportunity to grow

44

60

8.5

0

10

20

30

40

50

60

70

USA Market Size (million tonnes)

Ferrous

Domestic

Non-Ferrous

Export

Source: USGS, Company Estimates Source: USGS, ISR, Recycling Today, CompanyEstimates

9%

9%

6%

6%

6%

6%5%5% 5%

5%

39%

Estimated USA Market Share by Volume

Sims

Gerdau

Omni

TripleMDJJ

Alter

SMS

SA

Schnitzer FPT

Other

Grow non-ferrous retail businessSignificant organic initiatives and strategic bolt-on acquisitions

200

140

300

0

50

100

150

200

250

300

350

Current State Volumes Growth Target 2022 Growth Target 2025

NAM Non-Ferrous Retail – Target VolumeGrowth

Non

-Fer

rous

Ret

ail

(‘00

0ton

nes)

Purchase Strategy Increased buying from source

Sales Strategy Geographic and product

optionality

Engineering & Technology Product diversification and

upgrade

Inorganic opportunities Acquisition opportunities

45

Grow ferrous businessSignificant organics initiatives and strategic bolt-on acquisitions

4,700

5,800

6,500

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Current FY22 FY25

NAM Ferrous - Target Volume GrowthFeeder yard expansion Procure more at source

Engineering & Technology Enhance metal yields and

quality

Bolt on acquisitions Regional consolidation

opportunities

Logistics Cost effective solutions

ensuring material flow

46

Conclusion

47

Significant opportunities to fortify and grow sustainable profits NAM is the largest ferrous participant in a fragmentedmarket.

Abundant opportunities to profitably expand NAM’s footprint:

– Organic

– Acquisition

Significant opportunity to grow non-ferrous retail off a low marketshare

World class technology team will deliver superior returns through higher metal yields andquality products for top end customers

Operational capability to support our strategy

Sims Investor Strategy DayCapital Management8 April 2019

Returns CapitalGrowth Discipline

Capital structure principles

49

Structuring the balance sheet for growth is the priority

Target $100 million average net cash

Fund growth assets within the $100 million target but temporarily allow gearing(1) to increase to 10%(2). Return to $100 million net cash target within three years

Fund working capital movements with standby facilities

Continue to buy back shares to offset any dilution from employee share programs

Pay 100% franked dividends

The allocation of any surplus cash after meeting the above principles will be determined at that time, including additional share buybacks

(1) Defined as debt / (debt + equity).(2) Currently equivalent to approximately $300 million.

One possible scenario into the futureAssume a single point forecast in a stable world(1)

50

+

(1) This scenario is not intended to represent management’s view of future financial outcomes. It is a simplified hypothetical scenario based on broad market parameters and used for illustrative purposes only. Actual future financial outcomes are likely to vary substantially.

Growth capex and returns as set out in today’s presentations, noting that growth capex for ANZ Metals and Europe Metals

will be in addition and there is sufficient capacity forthis

Stable prices at around current pricing

Stable market conditions

Stable EBIT margins

Growth capexSignificant potential growth capex through to FY24

51

Scenario Forecast Growth Capex FY20-FY24

158

165

North America Metals Sims Waste to Energy Sims Energy

~A$670 million350

FY20 FY29FY21 FY22 FY23

Maintenance Capex

FY24 FY25

Growth Capex

FY26 FY27 FY28

Dividends/buybacks Net Cash

Scenario outcomeOverlay of capital structure principles results in internally funded growth

Net Cash Position

52

$00

0

1,400

1,200

1,000

800

600

400

200Target net cash

-

(200)

(400)

(600)

Cash flow1

(1) Cash flow excluding capital expenditure, dividends and buy backs.

A possible downside scenario(1)

53

Test the business for resilience

Pricing reduced by 30% in FY21 and FY22 before recovering to stable in FY23

Price reduction is a significant enough fall to impact margin andvolume

(1) This downside scenario is only one possibility and is intended for illustrative purposes. It does not encapsulate all the possible risks that could impact future financial outcomes.

400

200

-

(200)

(400)

(600)

600

1,000

800

FY21 FY28

Downside Case Scenario

FY20

Cash flow

FY22 FY23

Maintenance Capex

FY24 FY25

Growth Capex

FY26 FY27

Dividends/buybacks

FY29

Net Cash

Downside scenario outcomeWhile challenging, the business is resilient

$00

0

Net cash troughs the year following the downside

54

Working capital movementThere is a partial “natural hedge” relating to cash flow movements

$000

(200)

150

100

50

-

(50)

(100)

(150)

200

FY20 FY21 FY22 FY23

Working Capital Movement Under Downside Example

Lower inventory value and receivables

55

Higher inventory value and receivables

FY24 FY25

Summary and ConclusionStructuring the balance sheet for growth is the priority

56

Target $100 million average net cash

Sims has the potential to internally fund its significant growthcapex

Targeting minimum 15% IRR on a post tax nominal basis on growth projects

Paying 100% franked dividends will likely see dividend payout ratio fall

The allocation of any surplus cash after meeting the above principles will be determined at that time, including additional share buybacks

Conclusion“Road map for the next five years”

Purpose Grow Preserve Invest

Summary of strategic initiatives

2 3 5 Years

Metals

NEW BUSINESSES

e-Recycling

Waste-to-Energy

Energy

5 new Feeder Yards (ferrous andnon-ferrous)

Leverage digital technology

New USA contract

15 MW outside Australia

Cloud Recycling

Optimise extraction of land value

Grow business in existing footprint

Selectively enter developing markets

Value chain integration

Optimisation

Sims has a solid pipeline of capital and non-capital growth opportunitiesLegend

EXISTING BUSINESSES

Opt

imis

e Pr

ofita

bilit

y of

Met

als…

…G

row

New

Portf

olio

1

2nd WTE operation

Municipal Recycling

OEM Recycled Plastic

2nd New USAcontract

WTEoperation

50 MW outsideAustralia

20 additional new Feeder Yards (ferrous and non-ferrous)

WTEfeasibility

WTEconstruction

3rd WTE plan

Embedcontinuous improvement

58

A webcast of Sims Investor Strategy Day Presentation can be viewed on demandhttps://edge.media-server.com/m6/go/sims-investor-strategy-day-0419/

9 April 2019

Sims Investor Strategy DayNon-Ferrous Market Update

9 April 2019

Product Sales DiversityTechnology Policy

Global demand for recycled copperForecast to grow driven by development of power grids and electric vehicles

3

12,000

10,000

8,000

6,000

4,000

2,000

0

16,000

14,000

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

F20

22F

2024

F20

26F

2028

F20

30F

2032

F20

34F

Direct Use Smelter Refinery

Source: Wood Mackenzie

In 2018 1.3 million tonnes of 2.8 million tonnes global secondary copper smelter capacity is located inChina1

Primary copper smelters are considering more recycled copper in their processes

Dismantling capacity outside Chinais increasing both at source and in Asia

Remelt capacity outside China is increasing with many companies building contingency plans to establish plants in Asia if Category6 quotas are reduced

1. Wood Mackenzie

Global recycled copper demand

‘000

tonn

es

Global supply of copper oreMore than 12 million tonnes of additional supply required by 20351

4

Under-investment in new copper ore capacity mean more than 12 million tonnes of additional supply is required by 20351

It can take ~10 years for a copperore mine to produce

It is estimated that the copper required for an2: Electric vehicle is ~80kg Electric bus is ~300kg

Source: Wood Mackenzie

Global copper production and primary demand

‘000

tonn

es1. Wood Mackenzie2. Copper Development Association Inc.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

200

0 200

2 200

4 200

6 200

8 201

0 201

2 201

4 201

6 201

8 202

0 202

Possible projects

Base Case Production Capability

Probable Projects

Primary Demand

Global demand for recycled aluminiumForecast to grow next 5-10 years driven by auto, packaging and construction

5Source: Bloomberg and Statistica

Three main sectors consume largevolumes of recycled aluminium Auto Packaging Construction

Aluminium is the second most usedmaterial in the auto industry and itsuse is increasing

0

20,000

40,000

60,000

80,000

100,000

120,000

China

Japan

Germany India South Korea

United States Rest of World Global

Commercial and Passenger Vehicle Production

China PolicyThinking ahead, delivering and creating optionality

6

Sims technology creating high quality furnace ready product

Developed network of customers and partners who have/are setting up “re-melt facilities”

Long history of supplying smelters/refiners Strong record of importing quality materials

into different geographies Diversified sales to customer type and

geographic regions Continuing R&D where there is customer

demand

Demand outlook Forecast demand for recycled copper and

aluminum expected to grow

Sims thinking ahead Market options if China reduces Category 6 imports Recycled metals potentially processed in

alternate markets before shipping to China Re-melt facilities are cheap and easy to build

and they are already being built Ye Chiu (Chinese company) doubling

capacity in Malaysia Daiki (Japanese company) building a facility

in India Many copper semis producers have identified

where they would re-melt recycled metal

Sales diversificationUtilise strengths to grow non-ferrous sales in new geographies

7

Sims Advantages Global trading function

and expertise across allregions

Engineering and Technology expertise to create better quality and diversified product

Strong record of importing quality materials into different geographies

Diversity of customer type and geographic location

China Korea

India Pakistan

Malaysia Other

China India Korea Pakistan Other

Non Ferrous Export Sales Volume 1H19

Non Ferrous Export Sales Volume 1H18

Product diversificationInsulated copper wire converted to furnace ready product

8

Copper chop productChina classification of Category 6

Insulated copper wire productChina classification of Category 7

Furnace ready copper chopRemoves manual processing in China and ICW plastic waste not imported

9

Simple flow of Copper materialsSims sells Copper Chop

Simple flow of Copper materialsSims sells Insulated Copper Wire

Manually dismantled and sorted in China

Semi finished product producer

Smelting/ Refining Re-melting

Insulated copper wire shipped to China

Semi finished product producer

Smelting/ Refining Re-melting

Copper chop shipped to China

Note- Liquid markets for copper chops exist in other Asian, Europe, and North American countries.

Environmental driversFurnace ready recycled metal assists China to achieve it’s goal

10

China policy National Sword1

- Announced in July 2017 to the World Trade Organisation

- Aimed to stop the illegal smuggling of foreign waste into China, targeting dirty or hazardous waste mixed in the solid waste that can be used as raw material

Blue Sky2

- Announced in March 2018- Broad environment policy aimed to

improve air, water and soil quality

Sims & recycled metals contribute positively Sims Reputation

- Strong record of importing qualitymaterials without waste into China

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

Aluminium3

- Energy saved using recycled aluminiumvs. virgin materials is up to 95%

Copper4

- Energy saved using recycled copper vs. virgin materials is up to 85%

1) World Trade Organisation2) Chinese Government3) ISRI (Institute of Scrap Recycling Industries Inc)4) BIR (Bureau of International Recycling) Report on the environmental benefits of recycling

Sims Investor Strategy DayAustralia & New Zealand (ANZ) Metals

9 April 2019

Grow PreservePurpose Invest

Business OverviewMarket leader with stable earnings growth and strong returns Largest metals recycler in Southern Hemisphere 50 facilities across Australia, New Zealand, and

Papua New Guinea Track record of stable earnings growth and

strong investment returns $1.1 billion in revenue (FY18) $126 million in EBITDA (FY18)

12

21 3150 52

2843

47

FY16 FY17 FY19

Underlying EBIT (A$m)

FY181H 2H

A$m (ex-recharges) FY16 FY17 FY18

Revenue 743.6 981.4 1,071.0

Underlying EBITDA1 75.6 102.4 126.2

Underlying EBIT1 48.7 73.8 96.9

Sales volume 1,418 1,656 1,696

EBIT margin2 (A$/t) 35 48 61

ROC3 9.2% 12.3% 15.7%

12%

9%

17%

FY18 1H FY19Annualised

Return on Capital3 (%)16%

FY16 FY171) Underlying earnings excludes significant non-recurring items, the impact of non-qualifying hedges and internalrecharges.2) Calculated with proprietary salesvolumes.3) Return on Capital = (Underlying EBIT – Tax at tax rate of 30%) / (Net Assets).

38

9

Australia

3

Papua New Guinea

50 Facilities7 Shredders

1 Zorba Separation Plant

New Zealand

Sydney

Melbourne

Brisbane

Adelaide

Perth

Auckland

Christchurch

Business Overview50 recycling facilities across Australia, New Zealand, and Papua New Guinea

13

ANZ MarketLeading market share, with further capacity to grow

14

30%

Estimated Australian market share by volume

Sims Metal Liberty OneSteel

Tier 1 Competitors Tier 2 & 3 Competitors

Source: National Waste Report (FY17), Company Estimates Note: Oceania, excluding Australia, New Zealand, and Hawaii

0.0

5.0

4.0

3.0

2.0

1.0

6.0

7.0

Market size (million tonnes)

Australia New Zealand Oceania

ConclusionStrong returns with further opportunity to grow Market leader with a history of stable earnings growth and strongreturns

Competitive advantages in both technology and customerreach:– In-house engineering team and first to market in technology implementation– Facilities nation-wide to service both large-scale suppliers & customers

Leading market share, but potential to further grow volumes:– Greenfield & brownfield expansion in under-represented markets– Targeted bolt-on acquisitions

Management depth and experience to drive growth strategy as well as continuousimprovement programs on existing operations

15

ANZ MetalsZorba Separation Plant

9 April 2019

Grow Preserve InvestPurpose

Zorba Separation Plant

17

Solution to upgrade all Australian Zurik & Zorba to furnace-ready productsProject Summary National facility to upgrade all Sims Australia’s

Zorba and Zurik into smelter ready products First of its kind in the Southern Hemisphere Operational in April 2019

Key Benefits Solution to future demand uncertainty for semi-

processed mixed metals Potential for increased non-ferrous sales to

domestic customers previously not possible Ability to extract greater margins per tonne of

non-ferrous shred recovery material Opportunity to process e-waste Capacity to process future 3rd party volumes

Zorba Separation PlantCentral location to service all five Australian shredders

18

Sydney

Melbourne

Brisbane

AdelaidePerth

Sims Metal ManagementShredding Facility

Shredding Facility (Gillman)

Zorba Separation Plant

Project Location: Adelaide, SAProject Location: Adelaide, SA

Zorba Separation PlantSolution maximises current capabilities and future technology adaptations

19

Existing 3,000HP shredder, acquired and repurposed for Zorba Separation Plant

July 2018: Acquisition of recently installed3,000HP shredder in Adelaide, SA

– Shredder re-purposed to re-shred zorba and zurik for fine granulation / separation

– Acquisition significantly reduced the timerequired implement solution

August 2018 to April 2019: Design and construction of down-stream sorting equipment

– Newest technology utilising four separation sorting technologies; inductive sensors, laser modules, colour cameras, and x-ray

April 2019 to December 2019: Modification of Australia’s five MRPs to create twitch locally

Zorba Separation Plant

20

Direct to smelter sales for all products with capacity to process new materialsOld Process New Process

1) Smelter-ready aluminium product generated by local sortingenhancements.2) Residual aluminium-based material, not directly upgraded into twitch.

Sold for further processing (e.g. China)

Indirect Sales to Smelter

Zurik Zorba

SimsMM Regional MRP’s External MaterialSimsMM Regional MRP’s

Twitch1 MixedMetals2 Zurik E-Waste 3rd Party

Zorba Separation Plant

Twitch Sabot Copper Brass Greys heavies

Direct Sales to Smelter

Zorba Separation PlantEnables product, customer and geographic diversity Ability to upgrade all Australian Zurik & Zorba to furnace-ready products

– Solution to uncertainty of future demand for semi-processed mixed metals– Potential for increased non-ferrous sales to domesticcustomers

Expanded capacity to process new materials– Capacity to process future 3rd party Zorba and Zurik– Non-traditional materials including e-waste and co-mingled metals

Ability to extract greater margins per tonne– Direct to smelter sales removes weakening margins for semi-processedmaterials– Greater value-in-use to assist in placing products to targeted consumers

Single-centralised location provides future optionality to implement new technologies quicker and at lower cost

21

ANZ MetalsSite Tour

9 April 2019

Grow Preserve InvestPurpose

Material Recovery ProcessEnables the creation of furnace ready product

23

In-feed Shredder & Material Recovery

Plant (MRP)

Output Zorba Separation Plant

Output

Sabo

tTw

itch

Red

heav

ies

Zorba Separation PlantShredding facility - Gillman

Copper

Cu

Aluminium

Al

Gre

yhe

avie

s Mixed

Stainlesssteel

S

Zorba

Zurik

Ferrous shred

ZurikZorba