Orica Limited · ASX:ORI
Orica — Debt Investor Presentation (February 2006)
20 slides from Orica's debt investor presentation, February 2006
Slide 1: Preference Securities Investor Presentation
Preference Securities Investor Presentation citigroug oO
Slide 2: Disclaimer
Disclaimer Orica Limited (ABN 24 004 145 868 ) and Orica New Zealand Securities Limited (ARBN 117 168 297) are the Issuers of Orica SPS. This presentation has been prepared by Orica Limited and Orica New Zealand Securities Limited (collectively “Orica”) based on information available to it. No repre
Slide 3: Overview
Overview Offer Summary Orica Financials Dyno Nobel Acquisition Proforma Financials Orica SPS Offer Term Sheet Selected Financial Ratios Timetable Contacts
Slide 4: Offer Summary
Offer Summary Issuer Orica Limited (“Orica”) is issuing the SPS Preference Share and Orica New Zealand Securities Limited, a wholly owned subsidiary of Orica, is issuing the NZ Security The two fully paid securities cannot be traded separately prior to an Assignment Event Security Orica Step-u
Slide 5: Overview of Orica
Overview of Orica EBIT by business platform in 2005 Chemical Mining Services – Post Dyno Services Consumer acquisition, the world’s leading supplier 9.6% Products of commercial explosives, initiating 15.4% systems and advanced mining solutions Chemnet 10.8% Fertilisers – Incitec Pivot (70% share
Slide 6: Orica's Historical Sales and EBIT
Orica’s Historical Sales and EBIT Historical sales and EBIT performance Sales (A$m) EBIT (A$m) $6,000 $600 $5,127 $5,000 $500 $4,611 $4,042 $4,085 $3,959 $4,000 $400 $3,000 $300 $2,000 $200 $1,000 $100 $0 $0 2001 2002 2003 2004 2005 Sales EBIT
Slide 7: Orica FY 2005 Financial Summary
Orica FY 2005 Financial Summary 2005* 2004* % Change Underlying Results: Sales Revenue A$M 5,127 4,610 11 NPAT (excluding significant items) A$M 335 326 3 EBIT (excluding significant items) A$M 577 553 4 Results including significant items: Significant items after tax A$M (99) 2 NPAT including signi
Slide 8: Net Debt and Gearing
Net Debt and Gearing 1600 50.0% Target gearing range shaded 45.0% 1400 40.0% 1200 35.0% 1000 Net Debt (A$m) 30.0% Gearing 800 25.0% 20.0% 600 15.0% 400 10.0% 200 5.0% 0 0.0% HY02 FY02 HY03 FY03 HY04 FY04 HY05 FY05
Slide 9: Dyno Nobel Acquisition Highlights
Dyno Nobel Acquisition Highlights Acquisition Businesses’ and Dyno Nobel and Orica are the world’s Consortium Businesses’ sales* leading mining services companies Dyno Nobel develops, produces and sells Acquisition bulk and packaged explosives, ammonium Businesses Sales nitrate, initiation syste
Slide 10: Dyno Nobel Acquisition Highlights
Dyno Nobel Acquisition Highlights Acquisition Businesses’ EBITDA by geography* Orica will acquire substantially all of the European, Middle Eastern, African, Asian and Latin American businesses for US$685 Latin America million (A$902 million) 25% Businesses are being transferred progressively to
Slide 11: Funding the Dyno Nobel Acquisition
Funding the Dyno Nobel Acquisition Application of Funds A$m Acquisition funded by mix of equity, the Acquisition Price 902 issue of a hybrid security and existing debt facilities Due Diligence Transaction Costs 32 Funding Transaction Costs 23 Designed to support BBB+ credit rating Future Growth
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet A$ m Orica AIFRS Acquisition Acquisition Orica SPS and Pro Forma Audited to Businesses IFRS Adjustments Rights Issue Combined September Unaudited 30 Adjustments 05 June 2005 Total Assets 4,463.4 386.8 721.3 62.0 5,633.5 Total Liabilities 2,931.8 131.7 954.0 (831.0) 3,186.5 Ne
Slide 13: Term Sheet
Term Sheet Comparable Security Security Orica Step-Up Preference Securities (Orica SPS) Offer $400 million with an ability to accept oversubscriptions for up to $100 million Ranking Ahead of Orica ordinary shares, behind existing Orica preference shares and creditors Face Value $100 Term Perpetual R
Slide 14: Term Sheet
Term Sheet Comparable Security Distribution Priority Distributions are payable in priority to distributions on Orica ordinary shares, but behind existing Santos FUELS Orica preference shares. Where an Orica SPS Distribution is not paid, Orica may not declare or pay any dividends, pay any interest, o
Slide 15: Term Sheet
Term Sheet Comparable Security Options for Orica at a On the first Remarketing Date Orica may: Australand ASSETS Remarketing Date J Change certain terms and set a new Margin through a Remarketing Process; J Repurchase or Convert the SPS; or J Increase the Distribution Rate to the Step-up Margin (2.2
Slide 16: Term Sheet
Term Sheet Comparable Security Issuer Repurchase Orica may repurchase or Convert (at its option) some or all of the Orica SPS upon: Australand ASSETS and Conversion J Any Remarketing Date; Rights J Any Distribution Payment Date occurring after an unsuccessful Remarketing Process; J The occurrence of
Slide 17: Term Sheet
Term Sheet Comparable Security Repurchase Considerations It is Orica’s intention to retain the Orica SPS as a permanent component of Orica’s capital None structure unless: a) Orica believes a Repurchase of the Orica SPS would not result in Orica's senior unsecured credit rating falling from the rati
Slide 18: Selected Financial Ratios
Selected Financial Ratios Pro forma combined historical EBITDA for 2005 $636 million Distribution on Orica SPS (1) $28 million Interest expense (2) $117 million Interest Coverage (EBITDA / Interest Expense) 5.4x Distribution Coverage (EBITDA / Interest Expense + Distribution on Orica SPS) (3) 4.4x (
Slide 19: Offer Timetable
Offer Timetable Orica SPS prospectus lodged 7 February Institutional and Broker-Firm Roadshow 7 – 9 February Institutional and Broker-Firm Bookbuild (to determine Margin) 15 – 16 February Margin announced and Replacement Prospectus lodged 17 February Opening date of General, Shareholder Priority and
Slide 20: Contacts
Contacts Orica Limited • Noel Meehan Executive Director Finance (03) 9665 7180 • Frank Micallef General Manager - Treasury and Investor Relations (03) 9665 7479 Citigroup • Jason Murray Citigroup Global Markets Australia (02) 8225 6030 • David Bailey Citigroup Global Markets Australia (02) 8225