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Sims (SGM) investor relations material

Sims Investor Day 2025 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Investor Day 2025 summary23 Sep, 2025

Governance and Leadership

  • Operates as a 50/50 joint venture with an eight-member board split evenly between partners, supported by an experienced management team and balanced governance structure.

  • Strong management succession, family involvement, and sector expertise among CEO, CFO, and VP of Business Development.

Strategic Direction and Business Model

  • Focuses on decarbonisation, circularity, and a complementary US footprint across southern, western, eastern, and central states.

  • Strategic alignment and close collaboration in sales, operations, safety, and R&D.

  • Operates a hub-and-spoke model with shredders and nonferrous plants as hubs and feeder yards as spokes, enabling direct scrap sourcing and scalable growth.

  • Largest feeder yard network in the US, providing a competitive edge in sourcing scrap directly from the public and small dealers.

  • Dividend payouts are structured to cover tax obligations and distribute 50–60% of EBIT to partners, with additional 20% of SAR EBIT distributed.

Growth Strategy and Acquisitions

  • Aggressive acquisition strategy, averaging one new facility per month, with 66 deals in 18 years, focusing on bolt-on and feeder yard acquisitions to strengthen regional hubs.

  • Largest acquisition was PSC Metals, adding three new regions and significant integration efforts.

  • Market remains highly fragmented, offering substantial room for further consolidation and growth.

  • Acquisitions are typically asset purchases, often with non-compete clauses, and sellers frequently stay on to assist.

  • Programmatic and opportunistic M&A strategy to capture fragmented market opportunities.

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Frequently asked questions

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals. The company is involved in the procurement of recycled metal from consumers, reclamation of waste auto parts, and remelting of steel scrap. It sources metals from a range of secondary sources, including automobile dismantlers; bulk material collected at material recovery facilities; bulk material collected at landfills; and bulk material collected by municipal authorities. The company primarily sells its recycled metal products to rural/urban collectors and licensed dealers; steel service centers; steel construction companies; aircraft manufacturing companies; agricultural machinery manufacturers; oil refineries; or other metal manufacturers.

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