Slide 1: 2024 Full Year Results
2024 FULL YEAR RESULTS 14 November 2024 Presenters SANJEEV GANDHI Managing Director and CEO JAMES CROUGH Chief Financial Officer
Slide 2: Disclaimer
DISCLAIMER This presentation is in summary form and is not necessarily complete. It should be read together with Orica’s Annual Report and other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This report contains information that is based on proj
Slide 3: Full Year 2024 in Review
FULL YEAR 2024 IN REVIEW Sanjeev Gandhi Managing Director and Chief Executive Officer Deer Park, Australia 3 2024 FULL YEAR RESULTS
Slide 4: Keeping our people and environment safe remains our number one priority
SAFETY, PEOPLE AND COMMUNITY KEEPING OUR PEOPLE AND ENVIRONMENT SAFE REMAINS OUR NUMBER ONE PRIORITY SAFE AND RESPONSIBLE BUSINESS 1 0.117 17 Fatality SICR1 Loss of containment events2 FY2023: 0 FY2023: 0.131 FY2023: 17 PEOPLE AND COMMUNITY 34% 89% $14m Women in senior Employee Community investment
Slide 5: Continued quality of earnings underpin financial result
CONTINUED QUALITY OF EARNINGS UNDERPIN FINANCIAL RESULT PROFITABLE EARNINGS GROWTH DRIVEN BY STRONG TECHNOLOGY UPTAKE AND IMPROVED PERFORMANCE ACROSS ALL SEGMENTS • Quality earnings1 achieved through continued strong performance growth across all segments driven by: ‒ Increased uptake of premium pro
Slide 6: Strong performance supports ongoing delivery of shareholder value
EARNINGS GROWTH SUPPORTS INCREASING RETURNS TO SHAREHOLDERS STRONG PERFORMANCE SUPPORTS ONGOING DELIVERY OF SHAREHOLDER VALUE IMPROVED BUSINESS PERFORMANCE DELIVERING VALUE TO SHAREHOLDERS EBIT1 Return on Net Assets1 Earnings per Share, excl SI Dividends per Share (Ordinary) ($m) (%) (cents) (cents)
Slide 7: We are on track to meet our climate change targets
CLIMATE CHANGE COMMITMENTS AND PROGRESS WE ARE ON TRACK TO MEET OUR CLIMATE CHANGE TARGETS Scope 1 and 2 Scope 2 Scope 3 Net Scope 1 and 2 Renewable Scope 3 emissions targets electricity ambition Our targets and ambition 30% 45% 60% 100% 25% reduction reduction by 20302 by 20402 reduction AMBITION T
Slide 8: Sustainably mobilising the earth's resources
SUSTAINABILITY ACHIEVEMENTS ALIGNED TO STRATEGY SUSTAINABLY MOBILISING THE EARTH’S RESOURCES CAPTURING ONGOING DELIVERING RETURNS FROM …BECOMING A EMISSIONS REDUCTION SUSTAINABILTY INVESTMENTS SUSTAINABILITY LEADER Net GHG emissions reduction1 Cumulative sustainability capital expenditure (Scope 1 a
Slide 9: Earnings growth achieved across all segments and regions
FY2024 EARNINGS EARNINGS GROWTH ACHIEVED ACROSS ALL SEGMENTS AND REGIONS AUSTRALIA NORTH LATIN EUROPE, MIDDLE PACIFIC & ASIA AMERICA AMERICA EAST & AFRICA EBIT $537M 13% EBIT $184M 18% EBIT $87M 19% EBIT $85M 23% • Improved earnings through value • Continued strong demand for • Significant earnings
Slide 10: Blasting Solutions: earnings growth driven by improvement in mix and margin
BLASTING SOLUTIONS SEGMENT EARNINGS GROWTH DRIVEN BY CONTINUED IMPROVEMENT IN MIX AND MARGIN INCREASED UPTAKE OF PREMIUM PRODUCTS & BLASTING TECHNOLOGY EBIT ($m) Premium solutions1 Volume growth CAGR (tonnes) Continued earnings growth of core blasting business driven by increased +13% customer adopt
Slide 11: Specialty Mining Chemicals: growth supported by Cyanco integration
SPECIALTY MINING CHEMICALS SEGMENT SEGMENT GROWTH SUPPORTED BY INTEGRATION OF CYANCO ACQUISITION CYANCO INTEGRATION EBIT ($m) SUCCESSES Successful ongoing integration of Cyanco supporting overall segment +36% earnings Enhanced safety and • New reporting segment which includes Orica’s existing sodium
Slide 12: Continued strong adoption and growth of Digital Solutions
DIGITAL SOLUTIONS SEGMENT CONTINUED STRONG ADOPTION AND GROWTH OF DIGITAL SOLUTIONS CONTINUING EXCELLENT SEGMENT PERFORMANCE EBIT ($m) Continued strong performance from all product categories Churn rate1, (%) Orebody Intelligence: 6.0 • Overall category growth driven by higher product sales +29% 4.6
Slide 13: Financial Performance
FINANCIAL PERFORMANCE James Crough Chief Financial Officer Image description World’s first lead-free detonator Exel Neo range launched in Europe Papua, Indonesia in September 2023 13 2024 FULL YEAR RESULTS
Slide 14: Improvements across key financial indicators
FINANCIAL RESULTS IMPROVEMENTS ACROSS KEY FINANCIAL INDICATORS Full year ended 30 September ($m) 2024 2023 Change Sales revenue 7,663 7,945 (4%) EBITDA1 1,238 1,091 14% EBIT 806 698 15% NPAT (Pre SI) 409 369 11% Individually significant items after tax 115 (73) nm Statutory net profit / (loss) after
Slide 15: Strategy execution continues to drive quality earnings growth
ORICA GROUP EBIT FY2023 TO FY2024 ($m) STRATEGY EXECUTION CONTINUES TO DRIVE QUALITY EARNINGS GROWTH 17 23 806 101 (12) (6) 698 (6) (9) FY2023 EBIT Foreign Manufacturing Volume, Mix Manufacturing Volume, Mix Volume, Mix Global FY2024 EBIT Exchange on & Margin & Margin & Margin Support translation 20
Slide 16: Improved trade working capital remains a strong focus
TRADE WORKING CAPITAL IMPROVED TRADE WORKING CAPITAL REMAINS A STRONG FOCUS Trade working capital ($m) Total Cycle Days1 Days inventory held1 684 -$98 61 64 60 63 64 63 (15%) 643 59 604 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 (50) 545 (48) Days sales Days payables outstanding1 outstanding1 53 52 5
Slide 17: Successful delivery of major turnarounds and strategic growth investments
CAPITAL EXPENDITURE SUCCESSFUL DELIVERY OF MAJOR TURNAROUNDS AND STRATEGIC GROWTH INVESTMENTS CAPITAL EXPENDITURE Capital Expenditure ($m) Sustenance • Successful execution of major turnarounds with shutdowns completed at KI Sustenance capital Growth capital Sustainability capital Acquisitions (Ammo
Slide 18: Strong financial profile supporting shareholder returns
BALANCE SHEET AND LIQUIDITY STRONG FINANCIAL PROFILE SUPPORTING SHAREHOLDER RETURNS Committed debt facility maturity profile ($m) Available liquidity ($m) 2,678 2,619 Average tenor at September 2024 – 3.9 years (drawn debt: 4.7 years) 1,973 1,423 Undrawn committed 1,000 1,467 facilities 900 1,392 80
Slide 19: Improved earnings supports continued increase in dividends
DIVIDENDS IMPROVED EARNINGS SUPPORTS CONTINUED INCREASE IN DIVIDENDS Dividend per Ordinary Share (cents) & Payout Ratio1 (%) 28.0 CPS 47.0c FINAL DIVIDEND 56% 43.0c 59% payout ratio 53% Final 35.0c Total FY2024 dividend 47.0 cps, Interim payout ratio 56% 48% 28.0c 25.0c 22.0c 55% 59% 53% • 9% increa
Slide 20: Our Strategy in Action
OUR STRATEGY IN ACTION Sanjeev Gandhi Managing Director and Chief Executive Officer 20 2024 FULL YEAR RESULTS
Slide 21: Successfully executing our strategy
STRATEGY SUCCESSFULLY EXECUTING OUR STRATEGY 21 2024 FULL YEAR RESULTS
Slide 22: Diversification across segments and commodities
STRATEGIC PLAN DIVERSIFICATION ACROSS SEGMENTS AND COMMODITIES STRENGTHENING THE CORE AND GROWING BEYOND BLASTING DIVERSIFYING ACROSS COMMODITIES Indicative EBIT per segment1 Orica solution Growth drivers Revenue by commodity2 FY21– FY24 (%) (%) Blasting Solutions (Mining and Q&C) Exposure to high g
Slide 23: Developing a leading global specialty mining chemicals business
SPECIALTY MINING CHEMICALS DEVELOPING A LEADING GLOBAL SPECIALTY MINING CHEMICALS BUSINESS CYANCO ACQUISITION HAS CREATED A GLOBAL WELL POSITIONED FOR FURTHER MANUFACTURING AND DISTRIBUTION NETWORK GROWTH Ongoing integration of Cyanco into Orica, safely and effectively Continue to increase product p
Slide 24: A growing global Digital Solutions business
DIGITAL SOLUTIONS A GROWING GLOBAL DIGITAL SOLUTIONS BUSINESS CONTINUED GROWTH ACROSS NUMBERS OF SITES …DELIVERING A DOUBLE-DIGIT AND PRODUCTS PER SITE EARNINGS GROWTH BUSINESS Indicative number of customer sites per location (# sites) Point solutions covering breadth of the mining value chain from
Slide 25: Integrating orebody intelligence to blasting workflows: use case 1
INTEGRATING OREBODY INTELLIGENCE TO BLASTING WORKFLOWS IMPROVES DOWNSTREAM OUTCOMES ORICA DIGITAL SOLUTIONS USE CASE 1: INTEGRATING TECHNOLOGY WORKFLOWS ACROSS THE PORTFOLIO “We have been able to interpret the compressive strength of the rock while drilling each hole and adjust loading designs” “We
Slide 26: Integrating orebody intelligence to blasting workflows: use case 2
ORICA DIGITAL SOLUTIONS USE CASE 2: CROSS-SELLING WITHIN GEOSOLUTIONS GroundProbe radars and 3vG InSAR deployed at a mine in Brazil to monitor tailings dam risks Technologies are complementary: 3vG InSAR provided early identification of ground movement, GroundProbe radars then deployed on identified
Slide 27: New product to market: Next Gen SHOTPlus
ORICA DIGITAL SOLUTIONS NEW PRODUCT TO MARKET NEXT GEN SHOTPLUS Connecting workflows leveraging Orica’s domain expertise in an open, secure, and integrated platform Intelligent Blast Design: Leveraging 35+ years of Design software (SHOTPlus ), and expanding to new horizons of Design, Simulate and Op
Slide 28: Continued progress on strategic targets
STRATEGIC PLAN CONTINUED PROGRESS ON STRATEGIC TARGETS STRATEGIC FY2024 FINANCIAL FY2024 scorecard FY2025+ TARGETS progress TARGETS and progress scorecard Pursue organic growth 3-year average RONA 12%-14% 13%-15% Updated from the core Dividend payout ratio 40%-70% 40%-70% Accelerate adoption of inno
Slide 29: Quality earnings growth expected to continue
OUTLOOK QUALITY EARNINGS GROWTH EXPECTED TO CONTINUE FY2025 OUTLOOK LOOKING FORWARD FY2025 EBIT is expected to increase on the prior corresponding period attributable to: Capital expenditure (including acquisitions) expected be broadly in line with FY24 - Blasting Solutions: Demand expected to conti
Slide 30: Delivering value to our shareholders
OUR INVESTMENT PROPOSITION DELIVERING VALUE TO OUR SHAREHOLDERS OUR PROMISE Operating responsibly together with our people, partners, customers Safety is, and will We are the global We are delivering remain our number leader in mining and civil success through one priority construction markets execu
Slide 31: Orica company history timeline
1874 1926 1928 Imperial Chemical Acquired by Nobel Jones, Scott and Co. Industries of (Australasia), which founded as a Australia and New subsequently supplier of Zealand (ICIANZ) merged to form explosives to the was formed to Imperial Chemical Victorian gold fields coordinate the Industries PLC in
Slide 32: Supplementary Information
SUPPLEMENTARY INFORMATION 32 2024 FULL YEAR RESULTS
Slide 33: Australia Pacific & Asia
SUPPLEMENTARY INFORMATION AUSTRALIA PACIFIC & ASIA Blasting Solutions In the Australia Pacific and Asia region, earnings growth was realised through improved value-added product mix driven by increased technology uptake across a range of products, including 4D , WebGen and EBS. Improved quality of e
Slide 34: North America
SUPPLEMENTARY INFORMATION NORTH AMERICA Blasting Solutions Underlying demand for premium products and technology remained strong, with continued high adoption of WebGen and strong demand for nitrate reducing products including Fortis Protect and Centra Gold HV. Reduced demand for thermal coal, lower
Slide 35: Latin America
SUPPLEMENTARY INFORMATION LATIN AMERICA Blasting Solutions Significant earnings improvement driven by growth in premium products, technology adoption and continued commercial discipline. Increased technology adoption across the region, supported by a substantial increase in WebGen revenue and adopti
Slide 36: Europe, Middle East & Africa
SUPPLEMENTARY INFORMATION EUROPE, MIDDLE EAST & AFRICA Blasting Solutions Continued strong earnings improvement due to increased uptake of premium products, notably Fortis Extra-I. Ongoing investment in discrete manufacturing to improve productivity and efficiency delivered a 15 per cent efficiency
Slide 37: Debt Position
SUPPLEMENTARY INFORMATION DEBT POSITION Movement in net debt ($m) Debt covenants2 Significant headroom to gearing and interest cover debt covenants 1,713 Gearing (%) 1,664 1,618 (164) (46) 57.5% 26.2% 923 30 Sep 2024 Interest cover (times) 5.1x (808) 2.0x Net debt 30 Net operating Net investing Net
Slide 38: Major Trading Currencies
SUPPLEMENTARY INFORMATION MAJOR TRADING CURRENCIES Orica trades in 38 different currencies which are translated to Australian Dollar (AUD) earnings Key currency movements FY2024 FY2023 30 Sep 2024 30 Sep 2023 Currency Average rates Spot rates USD – US Dollar 0.6596 0.6659 0.6915 0.6429 MXN – Mexican
Slide 39: Individually Significant Items
SUPPLEMENTARY INFORMATION INDIVIDUALLY SIGNIFICANT ITEMS Gross Net Full year ended 30 September 2024 ($m) (after tax) (before tax) Profit on sale of Deer Park stage 1 surplus land 181.5 173.1 Profit on sale of Yarraville land 40.9 33.9 Axis Group acquisition earnout reversal 26.6 26.6 Restructuring
Slide 40: Non-IFRS Reconciliations
SUPPLEMENTARY INFORMATION NON-IFRS RECONCILIATIONS Full year ended 30 September 2024 ($m) 2024 2023 Change 1 Statutory net profit / (loss) after tax 524.6 295.7 228.9 Individually significant items after tax1 (115.2) 73.3 (188.5) Profit after tax1 409.4 369.0 40.4 Adjust for the following: Net finan
Slide 41: Scheduled continuous manufacturing plant maintenance
OUTLOOK SCHEDULED CONTINUOUS MANUFACTURING PLANT MAINTENANCE AN assets Cyanide assets FY2025, FY2026 scheduled maintenance and turnaround schedule1 1H2025 2H2025 1H2026 2H2026 Kooragang Island (NSW) Yarwun (QLD) Burrup (WA) Bontang (Indonesia) Carseland2 (Canada) Winnemucca (USA) Alvin (USA) Yarwun
Slide 42: Sales volume per region
SALES VOLUMES SALES VOLUME PER REGION 1H 2H AUSTRALIA NORTH AMERICA LATIN AMERICA EUROPE, MIDDLE PACIFIC & ASIA EAST & AFRICA SALES – AN Tonnes (‘000) SALES – AN Tonnes (‘000) SALES – AN Tonnes (‘000) SALES – AN Tonnes (‘000) 1,841 1,889 1,131 924 902 337 343 1,036 955 977 557 472 163 178 509 484 88
Slide 43: Definitions
DEFINITIONS Term Definition AN Includes ammonium nitrate prill and solution, and emulsion products including bulk emulsion and packaged emulsion Annual Recurring Revenue (ARR) Recurring contracts including product leasing, software as a service, monitoring services and care plans CAGR Compound annua
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