Orica Limited · ASX:ORI
Orica — Q2 2025 Earnings Presentation
33 slides from Orica's earnings presentation, May 9, 2025
Slide 1: 2025 Half Year Results
2025 HALF YEAR RESULTS Presenters SANJEEV GANDHI Managing Director and CEO JAMES CROUGH Chief Financial Officer 8 May 2025
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: 2025 Half Year in Review
2025 HALF YEAR IN REVIEW Sanjeev Gandhi Managing Director & CEO 2025 HALF YEAR RESULTS 3
Slide 4: Safeguarding Our People, Environment and Partners
2025 HALF YEAR IN REVIEW SAFEGUARDING OUR PEOPLE, ENVIRONMENT AND PARTNERS FOCUS AREAS AND HIGHLIGHTS • Achieved industry leading safety performance with lowest serious injury case rate to date • Turnarounds completed with no major safety or environmental incidents • Continued focus on fatality prev
Slide 5: Continued Underlying Profit Growth
2025 HALF YEAR IN REVIEW CONTINUED UNDERLYING PROFIT GROWTH STRONGEST HALF YEAR EBIT RESULT IN MORE THAN A DECADE • EBIT growth driven by: EBIT1 NPAT PRE-SI2 OPERATING CASH $m $m $m ‒ Strong customer demand in core blasting services 472 251 245 ‒ Increased contribution from Digital Solutions and Spe
Slide 6: Strong Earnings Growth Across All Segments and All Regions
2025 HALF YEAR IN REVIEW STRONG EARNINGS GROWTH ACROSS ALL SEGMENTS AND ALL REGIONS AUSTRALIA NORTH LATIN EUROPE, MIDDLE PACIFIC & ASIA AMERICA AMERICA EAST & AFRICA EBIT $331m 40% EBIT $96m 29% EBIT $47m 7% EBIT $49m 18% • Continued growth from improved • Strong underlying demand for • Lower volume
Slide 7: Demand for Technology Driving Profitable Growth
2025 HALF YEAR IN REVIEW DEMAND FOR TECHNOLOGY DRIVING PROFITABLE GROWTH EBIT ($m) +29% Core business remained strong with continued robust demand for Orica’s products and services and increasing adoption of blasting technology offerings • Improved mix and margin across all regions through value add
Slide 8: Continued Strong Adoption and Growth
2025 HALF YEAR IN REVIEW CONTINUED STRONG ADOPTION AND GROWTH EBIT ($m) +31% Continued strong performance from all product categories Orebody Intelligence: • Exploration activity showing signs of improvement • Launch of new products supporting production focus Blast Design and Execution: 41 • Increa
Slide 9: Privileged Global Network Delivers Increased Earnings
2025 HALF YEAR IN REVIEW PRIVILEGED GLOBAL NETWORK DELIVERS INCREASED EARNINGS EBIT ($m) +72% Earnings uplift supported by Cyanco acquisition, with unrivalled manufacture and supply chain network in sodium cyanide • Sales volumes were higher in the first half supported by new contract wins and earni
Slide 10: Half Year Financial Performance
2025 HALF YEAR FINANCIAL PERFORMANCE James Crough Chief Financial Officer 2025 HALF YEAR RESULTS 10
Slide 11: Improving Financial Performance Reflecting Strong Underlying Business
FINANCIAL PERFORMANCE IMPROVING FINANCIAL PERFORMANCE REFLECTING STRONG UNDERLYING BUSINESS Half year ended 31 March ($m) 2025 2024 Change Sales revenue 3,941 3,657 8% EBITDA1 716 557 29% EBIT 472 354 34% NPAT pre significant items 251 179 40% Individually significant items after tax (340) 158 nm St
Slide 12: Increased Demand for Premium Products Driving EBIT Uplift
FINANCIAL PERFORMANCE INCREASED DEMAND FOR PREMIUM PRODUCTS DRIVING EBIT UPLIFT 1H2024 TO 1H2025 EBIT ($m) 32 VOLUME, MIX & MARGIN 472 (8) 15 11 73 354 (5) 1H2024 EBIT Foreign Exchange Blasting Solutions Digital Solutions Specialty Mining Manufacturing Global 1H2025 EBIT on translation Chemicals Sup
Slide 13: Trade Working Capital Remains a Strong Focus
FINANCIAL PERFORMANCE TRADE WORKING CAPITAL REMAINS A STRONG FOCUS TRADE WORKING CAPITAL ($m) TOTAL CYCLE DAYS1 DAYS INVENTORY HELD1 63 60 17 683 58 64 63 63 667 (1) 1H2024 2024 1H2025 1H2024 2024 1H2025 DAYS SALES OUTSTANDING1 DAYS PAYABLES OUTSTANDING1 49 46 46 50 49 51 31 March Foreign Underlying
Slide 14: Capital Management Framework
FINANCIAL PERFORMANCE CAPITAL MANAGEMENT FRAMEWORK Resilient through-cycle operating performance Operating Efficiency & Capital Productivity - Strong Cash Generation - Asset Efficiency - Working Capital Efficiency Net Operating Cash Flow Prioritised capital allocation for Sustainability capital to s
Slide 15: Capital Expenditure Supporting Plant Turnarounds and Growth
FINANCIAL PERFORMANCE CAPITAL EXPENDITURE SUPPORTING PLANT TURNAROUNDS AND GROWTH CAPITAL EXPENDITURE SUSTENANCE CAPITAL EXPENDITURE ($m) • Successful completion of turnaround events at Carseland (NAP1/2 and AN), Kooragang Island (NAP2, NAP3 and AN2) and Winnemucca (P1), with reduced first half spen
Slide 16: Prudent Financial Profile Post Acquisitions
FINANCIAL PERFORMANCE PRUDENT FINANCIAL PROFILE POST ACQUISITIONS COMMITTED DEBT FACILITY MATURITY PROFILE ($m) AVAILABLE LIQUIDITY ($m) 2,698 Average tenor at March 2025 – 4.0 years (drawn debt: 4.1 years) Undrawn committed 1,973 1,920 facilities 1,000 1,613 Cash and Cash 1,392 1,200 equivalents 80
Slide 17: Aligning Shareholder Returns with Earnings Growth
FINANCIAL PERFORMANCE ALIGNING SHAREHOLDER RETURNS WITH EARNINGS GROWTH • 32% increase in interim dividend declared DIVIDEND PER ORDINARY SHARE (cps) & PAYOUT RATIO1 (%) • Orica’s dividend payout ratio policy is 40-70% 47.0c • Total dividend paid each year to be weighted 56% 43.0c towards the final
Slide 18: Our Strategy in Action
OUR STRATEGY IN ACTION Sanjeev Gandhi Managing Director & CEO 2025 HALF YEAR RESULTS 18
Slide 19: Successfully Executing Our Strategy
OUR STRATEGY IN ACTION SUCCESSFULLY EXECUTING OUR STRATEGY 2025 HALF YEAR RESULTS 19
Slide 20: Key Growth Drivers and Priorities
OUR STRATEGY IN ACTION KEY GROWTH DRIVERS AND PRIORITIES CONTINUE TO GROW CORE CONTINUE TO DRIVE UPTAKE, DEPLOY NEW TECHNOLOGY AND BLASTING BUSINESS ENHANCING ADOPTION AND EXPAND SPECIALIST OFFERINGS CROSS-SELLING Unique blasting products and technologies Leverage the core Fully unlock advantaged as
Slide 21: Continued Progress on Strategic Targets
OUR STRATEGY IN ACTION CONTINUED PROGRESS ON STRATEGIC TARGETS STRATEGIC 1H2025 FINANCIAL 1H2025 scorecard FY2025+ TARGETS progress TARGETS and progress scorecard 3-year average RONA 13%-15% Pursue organic growth from the core Dividend payout ratio 40%-70% Annual capital expenditure $450-460m Accele
Slide 22: Outlook
OUTLOOK Sanjeev Gandhi Managing Director & CEO 2025 HALF YEAR RESULTS 22
Slide 23: Positive Momentum Expected to Continue into 2H2025 and Beyond
OUTLOOK POSITIVE MOMENTUM EXPECTED TO CONTINUE INTO 2H2025 AND BEYOND 2025 OUTLOOK 2026 EXPECTED GROWTH DRIVERS 2025 EBIT is expected to increase on the prior corresponding period, with improved earnings across all Blasting Solutions: regions and all segments - Continued demand for premium products
Slide 24: Our Investment Proposition
OUTLOOK OUR INVESTMENT PROPOSITION DELIVERING VALUE TO OUR SHAREHOLDERS OUR PROMISE Operating responsibly together with our people, partners, customers Safety is, and will We are the global We are delivering remain, our number leader in mining and civil success through one priority construction mark
Slide 25: Supplementary Information
SUPPLEMENTARY INFORMATION 2025 HALF YEAR RESULTS 25
Slide 26: Scheduled Continuous Manufacturing Plant Maintenance
SUPPLEMENTARY INFORMATION SCHEDULED CONTINUOUS MANUFACTURING PLANT MAINTENANCE FY2025, FY2026 scheduled maintenance and turnaround schedule1 AN assets Cyanide assets 1H2025 2H2025 1H2026 2H2026 Kooragang Island (NSW) Yarwun (QLD) Burrup (WA) Bontang (Indonesia) Carseland2 (Canada) Winnemucca (USA) A
Slide 27: Business Overview
SUPPLEMENTARY INFORMATION BUSINESS OVERVIEW SALES VOLUMES BY REGION - AN TONNES (‘000) ORICA REVENUE BY COMMODITY AUSTRALIA PACIFIC & ASIA NORTH AMERICA Reduced 1,889 1,036 14% reliance on 26% thermal coal 977 509 12% 13% 9% 912 892 528 492 7% 6% 8% 12% Increased 2024 2025 2024 2025 exposure to grow
Slide 28: Debt
SUPPLEMENTARY INFORMATION DEBT MOVEMENT IN NET DEBT1 ($m) 141 1,865 195 1,724 1,618 156 (245) Net debt Net Net Net Sub-total Foreign Net debt 30 Sep 2024 operating investing financing exchange 31 Mar 2025 (exc. leases) cashflows cashflows cashflows translation (exc. leases) 1. Excludes the impact of
Slide 29: Major Trading Currencies
SUPPLEMENTARY INFORMATION MAJOR TRADING CURRENCIES ORICA TRADES IN 36 DIFFERENT CURRENCIES WHICH ARE TRANSLATED TO AUSTRALIAN DOLLAR (AUD) EARNINGS Key currency movements 1H2025 1H2024 31 Mar 2025 31 Mar 2024 30 Sep 2024 Currency Average rates Spot rates USD – US Dollar 0.6399 0.6546 0.6279 0.6516 0
Slide 30: Significant Items
SUPPLEMENTARY INFORMATION SIGNIFICANT ITEMS Gross Net Half year ended 31 March ($m) (before tax) (after tax) Latin America impairment and restructuring costs (308.3) (329.4) EMEA restructuring costs (6.4) (10.4) Individually significant items attributable to shareholders of Orica (314.7) (339.8) Not
Slide 31: Non-IFRS Reconciliations
SUPPLEMENTARY INFORMATION NON-IFRS RECONCILIATIONS Half year ended 31 March ($m) 2025 2024 Change 1 Statutory net profit / (loss) after tax (89.0) 337.5 (426.5) Less Individually significant items after tax1 (339.8) 158.4 (498.2) Underlying net profit after tax1 250.8 179.1 71.7 Adjust for the follo
Slide 32: Definitions
DEFINITIONS Term Definition AN Includes ammonium nitrate prill and solution as well as emulsion products including bulk emulsion and packaged emulsion Capital expenditure Comprises spend on property, plant and equipment and intangible assets, on an accruals basis for FY2020 onwards and on a cash bas
Slide 33: Contact: Delphine Cassidy, Chief Communications Officer
Contact: Delphine Cassidy Chief Communications Officer M: +61 419 163 467 E: delphine.cassidy@orica.com 2025 HALF YEAR RESULTS 33