Orica Limited · ASX:ORI
Orica — Merger or Acquisition (April 2004)
8 slides from Orica's merger presentation, Apr 27, 2004
Slide 1: Acquisition of Bronson & Jacobs Pty Limited ("B&J")
Acquisition of Bronson & Jacobs Pty Limited (“B&J”)
Slide 2: Transaction Summary
Transaction Summary Orica to acquire 100% of shares of Bronson and Jacobs Pty Limited Acquisition price : A$110M (increased to $120M if specific sustainable earnings targets are achieved by 30 June 2004) Completion Date : 31 May 2004
Slide 3: Bronson and Jacobs Pty Limited
Bronson and Jacobs Pty Limited yr) HISTORY B&J is a speciality food and fine chemicals distributor High brand awareness in the industry Founded in 1945, specialising in the marketing and distribution of speciality raw materials in Australia, New Zealand and Southeast Asia Main market segments includ
Slide 4: B&J Operations
B&J Operations BUSINESS LOCATIONS + Head office - Sydney cl : + Operations in all Australian ao eh, states and New Zealand ig . Strong presence in Asia (40% of revenue) + Operations in China - Hong Kong - Shanghai - Beijing - Guangzhou - Tinjian + Operations in South East Asia - Indonesia - Singapor
Slide 5: Chemnet
Why the Acquisition Makes Sense for Chemnet Logical fit into Chemnet - complements Chemnet’s portfolio Provides a strong platform from which to specifically grow the Chemnet food & fine chemicals business Places Chemnet in a strong position to take advantage of opportunities in Asia - B&J has signif
Slide 6: Chemnet
Why the Acquisition Makes Sense for Chemnet Acquisition aligns with Chemnet “bolt on” strategy - builds on the four acquisitions in 2002/03 Chemnet will be the number one food chemicals distributor to the Australian and New Zealand market Further cements Chemnet as market leader in chemical trading
Slide 7: Orica
Why the Acquisition Makes Sense for Orica e Acquisition satisfies our strategic principles: —~ Market leadership — growing only value adding business who have “earned the right to grow” — related growth - building on our best businesses e Chemnet: —~ exceeds Orica performance measures — track record
Slide 8: Orica
Why the Acquisition Makes Sense for Orica Financial e EPS positive on a full year basis. Earnings impact in 2004 likely to be immaterial after goodwill amortisation e Transaction meets IRR and RONA targets — improved trade working capital in Aust/NZ — continued revenue growth in China and Asia e Low