ASX & MEDIA RELEASE (ASX: SGM, USOTC: SMSMY) 24 August 2018 SIMS METAL MANAGEMENT ANNOUNCES FISCAL 2018 FULL YEAR RESULTS

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ASX & MEDIA RELEASE (ASX: SGM, USOTC: SMSMY) 24 August 208 Results at a glance SIMS METAL MANAGEMENT ANNOUNCES FISCAL 208 FULL YEAR RESULTS STATUTORY (A$m) FY8 FY7 Change (%) Sales revenue 6,448.0 5,079.4 26.9 EBITDA 395.8 33.5 26.3 EBIT 278.6 20.2 38.5 NPAT 203.5 203.6-0.0 EPS (cents) diluted 98.7 0.6-2.9 UNDERLYING (A$m) FY8 FY7 Change (%) Sales revenue 6,448.0 5,079.4 26.9 EBITDA 396.4 294.7 34.5 EBIT 279.2 82.4 53. NPAT 92. 20. 60.0 EPS (cents) diluted 93.2 59.9 55.6 DPS (cents) 53.0 50.0 6.0 Key Points Sales revenue of $6,448 million, an increase of $,369 million Statutory EBIT of $279 million, up from $20 million in the prior year Underlying EBIT of $279 million, up from $82 million in the prior year Underlying Return on Capital of 0.3%, 5-year strategic objective delivered Final dividend of 30.0 cents per share, fully franked Net cash position of $298 million as at 30 June 208 Commentary Group CEO & Managing Director, Alistair Field, on the FY8 results said, We are very pleased with the strong improvement in profitability on the back of the performance of our North America and Australia & New Zealand operations. Our investment in sophisticated Includes 0.0 cents Special Dividend

material processing facilities coincides with customers requiring higher specification products, and we are well-placed to capture an increasing share of this demand. Group Results Sims Metal Management Limited today announced underlying NPAT of $92 million, representing an underlying diluted EPS of 93.2 cents for FY8. Statutory NPAT of $204 million represented a diluted EPS of 98.7 cents. Sales revenue of $6,448 million in FY8 was 27% higher compared to FY7 due to increased volumes and higher average sales price. In constant currency terms, sales revenue was 28% higher than the prior year, while sales volumes increased 3% to 9.9 million tonnes. Underlying EBIT of $279 million in FY8 was more than 50% higher than underlying EBIT of $82 million in FY7. Internal initiatives, stronger metal margins and increased sales volumes drove the improved result. By business, underlying EBIT improved in North America Metals, Australia & New Zealand Metals and Global E-Recycling and higher income from the Company s investments in SA Recycling and LMS. This was partially offset by lower underlying EBIT from the Europe Metals segment. Underlying return on capital of 0.3% exceeded the Company s five-year target of 0%. Regional Performance North America Metals underlying EBIT of $80 million in FY8 was a 74% improvement over underlying EBIT of $46 million in FY7. The Eastern region delivered a very strong performance. The Company s share of results from SA Recycling was $69 million, a strong increase over EBIT of $26 million in FY7. ANZ Metals underlying EBIT of $83 million in FY8, increased 33% over underlying EBIT of $63 million in FY7. The stronger result over the prior year related to improved metal margins, assisted by improved operating yields and higher average selling prices, on steady sales volumes over the prior year. Europe Metals underlying EBIT of $20 million in FY8 declined from $35 million in FY7. Despite higher sales volumes, in part due to the acquisition of Morley Waste Traders, competitive pressure for intake volume was a key factor leading to the profit decline. Global E-Recycling underlying EBIT of $25 million in FY8, improved from $20 million in FY7. The majority of the improvement was due to stronger margins in the US operations. Final Dividend Given the strong earnings and net cash position, the Company has declared a final dividend for FY8 of 30.0 cents per share, 00% franked. The final dividend is to be paid on 9 October 208 to shareholders on the Company s register at the record date of 5 October 208. 2

Capital Allocation and Strategic Review The Company, and its stakeholders, have benefited from the five-year strategic objective of lifting the underlying Return on Capital to 0%, with a significant lift in profitability, a stronger balance sheet with approximately $300 million in net cash, and a far more sustainable business platform. We are continuing to reinvest in the business with a further $200 million budgeted in capital expenditure in FY9, with approximately 40% allocated to growth initiatives. Over the next six months, the Company will complete a strategic review of its existing businesses and potential opportunities for the next five years. As part of this review, in addition to strengthening the Company s existing platform, consideration will be given to external growth opportunities that fit into the Company s strategy, complement its core competencies, and enhance returns without elevating the Group s operating risk profile. The Company s capital allocation strategy will continue to balance the ongoing requirement for dividends to shareholders with the need for business reinvestment to support the Company s strategy. Market Conditions and Outlook The possibility of further escalations in global trade wars occurring, that could impact commodity prices and volumes, cannot be ignored. This uncertainty is clearly a caveat that needs to be considered in the outlook for FY9. The recent doubling of tariffs by the US on Turkey s steel and aluminium exports to the US is a manageable short-term issue. Global trade flows for scrap will adjust to the new environment and the expected medium-term impact from this doubling of tariffs is presently not considered material. Our strategic push to produce better quality and more disaggregated product is expected to result in continued profitable business into China. The Company is almost two months through the first quarter of FY9 and, so far, the EBIT outcomes are consistent with those of the fourth quarter for FY8. Based upon our current expectations for demand and pricing, we remain positive about the remainder of FY9 but there are many variables that could have an impact over this period. Sims has been around for over 00 years and, in the medium-term, is well positioned with a highly capable work force, leadership in technology and diversity in global operations to meet these challenges. 3

Appendix - Reconciliation of Statutory Results to Underlying Results A$m EBITDA EBIT NPAT Year ended 30 June 208 207 208 207 208 207 Reported earnings 395.8 33.5 278.6 20.2 203.5 203.6 Significant items: Gain on acquisition of interest of a joint arrangement (0.) - (0.) - (9.8) - Gain on sale of property - (24.3) - (24.3) - (24.3) Fixed asset impairment/(reversal of impairment) expense of fixed assets 4. (.0) 4. (.0) 2.8 (0.3) Net benefit related to lease settlements and onerous leases provisions (9.) (2.8) (9.) (2.8) (7.4) (2.8) Redundancy expense 9.2 7.2 9.2 7.2 6.6 7.0 Yard closure costs, environmental and dilapidations provision expense 5.6. 5.6. 3.9.5 Other 0.9.0 0.9.0 0.8.0 Impact of US Tax Reform - - - - (9.8) - Impact of tax on return of capital - - - - 5.6 - Recognition of net deferred tax asset 2 - - - - (4.) (65.6) Underlying results 3 396.4 294.7 279.2 82.4 92. 20. EBITDA is a measurement of non-conforming financial information. 2 207 and 208 amounts reflect the recognition of previously unrecognised deferred tax assets. 3 Underlying result is a non-ifrs measure that is presented to provide an understanding of the underlying performance of the Group. The measure excludes the impacts of impairments and disposals, as well as items that are subject to significant variability from one period to the next. The reconciling items above (before tax) have been extracted from the audited financial statements. 4

Sims Metal Management Contacts: Investors Media John Hobson Réal Hamilton-Romeo Investor Relations Director, Corporate Communications john.hobson@simsmm.com real.hamiltonromeo@simmsmm.com +6 488 002 460 + 22 500 7435 About Sims Metal Management Sims Metal Management is one of the world s largest metal recyclers with over 200 facilities, operations in 20 countries, and 5,000 employees globally. Sims core businesses are metal recycling and electronics recycling, with circa 55% of its revenue from operations in North America. The Company s ordinary shares are listed on the Australian Securities Exchange (ASX: SGM) and its American Depositary Shares are quoted on the Over-the-Counter market in the United States (USOTC: SMSMY). Please visit our website (www.simsmm.com) for more information on the Company and recent developments. 5