Dyno Nobel Limited · ASX:DNL
Dyno Nobel — Incitec Pivot — JP Morgan Agriculture Corporate Access Day 2008
14 slides from Dyno Nobel's conference presentation, June 2008
Slide 1: A Day at the Farm
“A Day at the Farm” JP Morgan’s Agriculture Corporate Access Day June 2008
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Incitec Pivot Limited for professional and sophisticated investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products
Slide 3: 2008 Domestic Seasonal Conditions - Update
2008 Domestic Seasonal Conditions - Update
Slide 4: Current Seasonal Conditions
Current Seasonal Conditions Broadacre Winter Crop Poor domestic conditions 4
Slide 5: 2008 Update East Coast Fertiliser Consumption by Segment
2008 Update East Coast Fertiliser Consumption by Segment (1) Average Season & Outlook Extensive Good Season & Outlook Summer Crops (2) • Good sales into pasture • 2007/8 season average Pasture with 60% planted (Jul-Oct) • Improved demand but • Cotton outlook 9% (Spring / prices still weak average (~
Slide 6: Global Market Update
Global Market Update 12 June 2008 Spot 12 June 2008 Spot $US FOB/t $US FOB/t DAP Urea 1,300 $US1,173/t fob 750 $US705/t fob DAP US$ FOB per tonne Urea US$ FOB per tonne 1,200 700 650 1,100 600 1,000 IPL 2008 Full Year IPL 2008 Full Year 550 Forecast Ave DAP Forecast Ave Urea 900 $US910/t fob 500 $US
Slide 7: Global Fundamentals
Global Fundamentals
Slide 8: Demand is Growing
Demand is Growing 9 Food Net world population grows at 200,000 per day 9 Feed Wealthier people consume more land intensive complex proteins – beef, chicken, pork 9 Fuel Fossil-fuels to biofuels across the globe 9 Fibre Cotton, wool, wood A change in Economic and Demographic Fundamentals driving chan
Slide 9: Feed
Feed % of animal protein of total protein 80 70 2°. Argentina o Spain 5 Australia e- Sweden Malaysia _—_— @_—_ Switzerland 60 Venezuela Canada Russian Fed Brazil Pojand ° > e Colombi? Philippines > ; ™ Thailand ean Mexico “~~ Korea Rep 0 4 China ———"To@ Sudan << Pakistan ~~ south Africa 30 on Tunisi
Slide 10: Feed
Feed 3500 600 total Production of Grain (106t) total Production of meat (105t) 3000 total Production of milk (104t) 500 total Production of egg (104t) 2500 400 2000 300 1500 200 1000 100 500 0 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Compared to 1980, grain production incre
Slide 11: Feed: Demand for grains used for animal production may not be met
Feed Demand for grains used for animal production may not be met in the future – different scenarios 12 10.6 U.S. Scenarios 10 Develop 9.2 as current speed 8 Limitation by (108 LU) 7.6 resources 6 6.6 Chinese 4.1 nutrition 4 standard 1LU=1000kg live 2003 yr 2 animal weight 0 1950 1960 1970 1980 1990
Slide 12: Feed: Cereal stocks are at record lows
Feed Cereal stocks are at record lows, equivalent to just 25.0 10 weeks’ production 20.0 15.0 13 weeks 10 weeks 10.0 5.0 Surplus Squeeze 0.0 1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 Source: FAO, British Sulphur Consultants 12
Slide 13: Summary
Incitec Pivot ae
Slide 14: Summary
Summary 1. Average Australian east coast market conditions, approx market size ~ 3.2MT 2. There is adequate arable land to feed a world population that will peak at 9 billion in 2050. 3. Farming practices will continue to evolve to improve efficiencies 4. Simply moving to low input agriculture will
Incitec Pivot — JP Morgan Agriculture Corporate Access Day 2008 on 6ix