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ANNUA REPOR 2016
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SIMS ANNUAL REPORT 2016
OPTIMISING PROFITABILITY
Sims Metal Management Limited is the world's leading metals and electronics recycler with over 200 facilities and 4,756 employees globally. Our mission is to be the best in class recycler in all markets we operate. Our industry leadership will be driven by the strengths of our partnership with our suppliers, the excellence of our products and services to our customers, and the attractiveness of our returns to shareholders.
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Fixed cost reductions
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CONTENTS
FINANCIAL HIGHLIGHTS 2
CHAIRMAN'S REVIEW 4
CEO'S REVIEW 6
OPERATIONAL & FINANCIAL REVIEW 8
FIVE-YEAR STRATEGIC PLAN 8
Optimise core drivers of profitability
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GLOBAL OPERATIONS 10
NORTH AMERICA 12 AUSTR ALIA AND NE W ZE AL AND 14 EUROPE 16
GLOBAL E-RECYCLING 18 SPOTLIGHT - MUNICIPAL RECYCLING 20
SPOTLIGHT - LMS 21
SUSTAINABILIT Y 22 BOARD OF DIRECTORS 26
FINANCIAL REVIEW 28
CORPORATE GOVERNANCE STATEMENT 30
DIRECTORS' REPORT 32
REMUNERATION REPORT 35
FINANCIAL REPORT 63
DIRECTORS' DECLARATION 107
INDEPENDENT AUDITOR'S REPORT 108
AUDITOR'S INDEPENDENCE DECLARATION 109
OTHER INFORMATION 110
SHAREHOLDER INFORMATION 110
FIVE-YEAR TREND SUMMARY 111
CORPORATE DIRECTORY 112
Retain market share Adaptive market positioning Engage in market adjacencies New lines of business
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SIMS ANNUAL REPORT 2016
FINANCIAL HIGHLIGHTS
$184m
1H $61m | 2H $123m
Underlying1 EBITDA
$242m
As at 30 June 2016
Net Cash
$58m
1H $(5)m | 2H $63m
Underlying1 EBIT
2.6%
1H (0.4)% | 2H 5.5%
Underlying1 Return on Capital
$38m
1H $(18)m | 2H $56m
Underlying1 NPAT
22.0¢
1H 10.0¢* | 2H 12.0¢^
Full Year Dividends
* unfranked | ^ 100% franked
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YEAR ENDED 30 JUNE (A$ MILLION)
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2016
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2015
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CHANGE
(%)
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Sales Revenue
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4,651.7
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6,310.9
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(26.3)
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Statutory EBITDA
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83.0
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265.6
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(68.8)
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Underlying1 EBITDA
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184.4
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262.5
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(29.8)
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Goodwill & Intangible Asset Impairment
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53.0
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0.0
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NMF
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Depreciation
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113.4
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106.1
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6.9
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Amortisation
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13.0
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14.7
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(11.6)
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Statutory EBIT
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(215.5)
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144.8
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NMF
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Underlying1 EBIT
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58.0
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141.7
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(59.1)
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Net Interest Expense
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(9.7)
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(7.8)
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24.4
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Underlying1 Income Tax Expense
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(10.3)
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(32.4)
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(68.2)
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Statutory NPAT
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(216.5)
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109.9
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NMF
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Underlying1 NPAT
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38.0
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101.5
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(62.6)
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Statutory EPS (cents per share) - Diluted
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(106.8)
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53.3
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NMF
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Underlying1 EPS (cents per share) - Diluted
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18.6
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49.2
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(62.2)
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Full Fiscal Year Dividend (cents per share)
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22.0
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29.0
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(24.1)
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Total Assets
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2,570.9
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2,881.8
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(10.8)
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Total Liabilities
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738.4
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769.0
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(4.0)
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Net Assets
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1,832.5
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2,112.8
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(13.3)
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Net Cash
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242.1
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313.9
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(22.9)
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Total Capital
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1,590.4
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1,798.9
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(11.6)
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Underlying1 Return on Capital
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2.6%
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5.5%
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(52.7)
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Net Tangible Assets
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1,662.7
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1,883.6
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(11.7)
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Net Tangible Assets per share (A$ per share)
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8.41
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9.19
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(8.5)
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Net Cash Inflow From Operating Activities
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131.3
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298.1
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(56.0)
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Capital Expenditures
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108.9
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95.3
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14.3
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Free Cash Flow After Capital Expenditures
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22.4
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202.8
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(89.0)
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Employees
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4,756
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5,429
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(12.4)
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Sales Tonnes ('000)
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8,551
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10,481
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(18.4)
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1. Underlying earnings excludes significant non-recurring items.
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