Dyno Nobel Limited · ASX:DNL
Dyno Nobel — Investor Day (September 2024)
177 slides from Dyno Nobel's investor day presentation, Sep 16, 2024
Slide 1: 2024 Investor Showcase Presentation
ASX RELEASE 2024 Investor Showcase Presentation 16 September 2024 Incitec Pivot Limited (ASX:IPL) will hold an Investor Showcase in Salt Lake City, United States on Monday, 16 September 2024 from 9.00am to 3.30pm Mountain Standard Time (MST). Enclosed are the presentation materials for the Investor
Slide 2: Incitec Pivot Limited
Incitec Pivot Limited ABN 42 004 080 264 ASX Code: IPL OTC: INCZY 1 1
Slide 3: Disclaimer
Disclaimer Summary information mmary form and is based on the businesses currently conducted by IPL, which may be subject to change, and is provided for information purposes only. The information does not purport to be complete, comprehensive, or to comprise all of the information that a shareholder
Slide 4: Disclaimer
Disclaimer Forward looking statements, opinions and estimates are provided as a general guide only. They are not, and should not be relied upon as, an indication or guarantee of future performance. This presentation contains such statements that are subject to risk factors associated with the market
Slide 5: Presenting today
Presenting today Greg Robinson Mauro Neves Paul Victor Robert Rounsley Braden Lusk Greg Hayne Tatiana Rudometova Chairman CEO & MD Chief Financial Officer Chief Growth Officer Chief Technology & President DNA Chief Legal & Incitec Pivot Limited Incitec Pivot Limited Incitec Pivot Limited Dyno Nobel
Slide 6: Agenda for the day
Agenda for the day 9:00 Welcome and introduction (5 mins) Geoff McMurray 2:15 Mauro Neves & Guests (30 mins) 9:05 Land Acknowledgement and Zero Harm (15 mins) Russell Lamont 2:45 Operations excellence (15 mins) Stephenie De Nichilo 9:20 Greg Robinson 3:00 Sustainability / decarbonisation (10 mins) S
Slide 7: Land Acknowledgement
Land Acknowledgement The Salt Lake Valley, which includes Salt Lake City, has always been a gathering place for Indigenous peoples. We acknowledge that this land is the traditional and ancestral homelands of the Shoshone, Paiute, Goshute, and Ute Tribes and is a crossroad for Indigenous peoples. the
Slide 8: Dyno Nobel
DYNO NOBEL
Slide 9: Safety is core to our strategy
Safety is core to our strategy: Strategic lever for operational excellence, sustainability & commercial outcomes Customers Growth / new market entry People High performance Think customer. everyone. Care for the community & Value people Deliver on our promises every day. our environment (or challeng
Slide 10: Porgera video
DYNO |NVE Tiel NOBEL SHOWCASE Porgera video
Slide 11: Greg Robinson
Greg Robinson Non-executive Chairman 10
Slide 12: Mauro Neves
Mauro Neves Chief Executive Officer & Managing Director 11
Slide 13: What you will hear today
What you will hear today 1 Who we are and our strategic intent 2 What we do and where we play in the value chain 3 Why our markets have attractive fundamentals 4 How we control our own destiny to deliver market leading shareholder returns 12
Slide 14: What you will hear today
What you will hear today 1 Who we are and our strategic intent 4 How we control our own destiny to deliver market leading shareholder returns 13
Slide 15: How we control our own destiny
4 How we control our own destiny to deliver market leading shareholder returns Ambition Become the leading global explosives player doubling earnings1 and delivering ROIC2 above WACC Competitive We will deliver this ambition by leveraging our competitive advantage, including: advantage Proprietary S
Slide 16: Customers
1 Who we are and our strategic intent Customers Our customer base is global and diverse 2 Metals Mining Coal Mining Quarries Construction 15
Slide 17: Customers
1 Who we are and our strategic intent Customers of LATAM and EMEA More on growth to follow later in the presentation Not exhaustive customer list Existing relationship 16
Slide 18: Safety, sustainability, and community
1 Who we are and our strategic intent Safety, sustainability, and community Significant momentum across all three priority areas aligned to our core values Safety Sustainability Community ▪ Our safer technologies, ▪ We have been recognised for ▪ We actively invest in the including wireless detonator
Slide 19: Strategic intent
1 Who we are and our strategic intent Strategic intent | Our plan to become the leading global explosives business 2024 2025 2026 and beyond PHASE 1 SEPARATION ▪ Functional separation well advanced ▪ Business performance improvement initiatives in train ▪ Asset portfolio evaluation informing future
Slide 20: Option value from fertilisers separation
1 Who we are and our strategic intent Option value from fertilisers separation Unlock additional option value by separating explosives and fertilisers businesses Why ▪ Allows Dyno Nobel to focus and deliver its full ambition ▪ Enables greater synergies for fertilisers business under different owners
Slide 21: Actively improving the business
1 Who we are and our strategic intent Actively improving the business Immediate focus Desired outcome ▪ Identify assets that are not contributing and can ▪ Deliver best value from these assets. be separated from the immediate portfolio Actively market and sell these assets Real Estate 0 to 6 months
Slide 22: Strategic intent
1 Who we are and our strategic intent Strategic intent | Our plan to become the leading global explosives business 2024 2025 2026 and beyond PHASE 1 SEPARATION ▪ Management oversight separated ▪ Business performance improvement initiatives in train ▪ Asset portfolio evaluation informing future dives
Slide 23: What you will hear today
What you will hear today 2 What we do and where we play in the value chain 4 How we control our own destiny to deliver market leading shareholder returns 22
Slide 24: What we do | Value Chain
2 What we do and where we play What we do | Value Chain Dyno Nobel provides value adding products and services across the drill and blast value chain MANUFACTURING DRILL & BLAST COMMINUTION & LIBERATION TYPICAL MANUFACTURING, 9 BLAST & PROCESSING 1 2 6 8 3 4 11 7 10 5 ∆𝑒 2 4-6 Differentiated NOBEL…
Slide 25: Manufacturing
2 What we do and where we play Manufacturing Driven by scale and quality of prices and relationships – we are advantaged MANUFACTURING DRILL & BLAST COMMINUTION & LIBERATION TYPICAL MANUFACTURING, 9 BLAST & PROCESSING 1 2 6 8 3 4 11 7 10 5 Market Characteristics Our advantage • AN market in the shor
Slide 26: Drill and Blast
2 What we do and where we play Drill and Blast High margin opportunity directly impacting mine efficiency and safety top customer priorities MANUFACTURING DRILL & BLAST COMMINUTION & LIBERATION TYPICAL MANUFACTURING, 9 BLAST & PROCESSING 1 2 6 8 3 4 11 7 10 5 Market Characteristics Our advantage • N
Slide 27: Comminution and liberation
2 What we do and where we play Comminution and liberation Limited players, but untapped potential MANUFACTURING DRILL & BLAST COMMINUTION & LIBERATION TYPICAL MANUFACTURING, 9 BLAST & PROCESSING 1 2 6 8 3 4 11 7 10 5 Market Characteristics Our advantage • Post-blasting services to measure fragmentat
Slide 28: Drill to mill video
DYNO |NVE Tiel NOBEL SHOWCASE Drill to mill video
Slide 29: What you will hear today
What you will hear today 3 Why our markets have attractive fundamentals 4 How we control our own destiny to deliver market leading shareholder returns 28
Slide 30: Revenue and EBIT by product category
3 Why our markets have attractive fundamentals Revenue and EBIT by product category While AN and Emulsion account for the majority of revenue, differentiated products contribute more to EBIT Takeaways FY 23 Gross revenue & EBIT by product Commodity products contribute ~40- Differentiated products 50
Slide 31: AN demand / supply balance
3 Why our markets have attractive fundamentals AN demand / supply balance Globally, supply demand is balanced through swing capacity, with geographic market variation Global ammonium nitrate supply and demand, including swing capacity (2023, kt) 2023 ▪ Australia's current balance makes it a Russia/C
Slide 32: Market growth
3 Why our markets have attractive fundamentals Market growth We understand the market, with a strong view on pockets of material growth for future facing rare minerals Mining deep dive: 2023-2028 forecast for Global AN (kt) usage North Latin Middle Asia excl. Other Russia & America Australia Europe
Slide 33: Market growth
3 Why our markets have attractive fundamentals Market growth We see growth in metals driving overall market growth, despite a shift away from thermal coal Takeaways Mining deep dive: 2023-2035 forecast for Global AN CAGR (kt) usage Market volumes shift towards metals away from thermal coal • Higher
Slide 34: Our Shift
3 Why our markets have attractive fundamentals Our Shift We are well placed in the growing metals segment Takeaways Dyno Nobel Explosives Revenue by Product (Global) CAGR We have already seen significant 40-50% growth in our metals business, meaning we are well placed for the 7-10% predicted market
Slide 35: What you will hear today
What you will hear today 4 How we control our own destiny to deliver market leading shareholder returns 34
Slide 36: How we control our own destiny
4 How we control our own destiny to deliver market leading shareholder returns Ambition Become the leading global explosives player doubling earnings1 and delivering ROIC2 above WACC Competitive We will deliver this ambition by leveraging our competitive advantage, including: advantage Proprietary S
Slide 37: Our Competitive Advantage
OUR COMPETITIVE ADVANTAGE 36
Slide 38: Competitive advantage
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Competitive advantage We have a sustainable competitive advantage Our proven competitive advantage We have proprietary technology that inc
Slide 39: Technology
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Technology Our existing proprietary technology gives us a key edge in the market Category Our products Our key advantage Takeaways Our pro
Slide 40: Customer satisfaction
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Customer satisfaction We deliver strong results across major customer satisfaction metrics Survey results, N=29 Company KPC scores by cust
Slide 41: Select customer experiences
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Select customer experiences We have partnered with a range of customers to deliver exceptional results ▪ Partnered to establish "drill ▪ P
Slide 42: PTAR Martabe (Pak Rahmat) video
PTAR Martabe (Pak Rahmat) video 41
Slide 43: Leveraging our advantage
LEVERAGING OUR ADVANTAGE DYNO |NV NOBEL SHO
Slide 44: Leveraging our strong position to grow
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging our strong Leveraging advantage Transformation Program Capital Prudence position to grow We are executing a winning strategy that will deliver significant growth and shareholder value Grow
Slide 45: Growing our core business
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Growing our core business We are market leading in our core markets across the globe; currently focused on Australia and North America lev
Slide 46: Growing across geographies
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Growing across geographies We are well positioned to target growth in LATAM and EMEA EMEA market is heavily fragmented, opportunity to gro
Slide 47: Indonesia case study
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Indonesia case study We can replicate the success from our Indonesian growth story Our strategy ▪ Entered using a capital-light approach,
Slide 48: BUMA video
DYNO |NVE Tiel NOBEL SHOWCASE BUMA video
Slide 49: Expanding across value chain
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Expanding across value chain There is a significant growth opportunity in high-margin segments through technology-enabled blasting and fra
Slide 50: Transformation Program Ambition
TRANSFORMATION PROGRAM AMBITION 49
Slide 51: Our ambition
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Our ambition Unleashing untapped potential in Dyno Nobel AMBITION ▪ ~80% of benefits from improving the performance of our current busines
Slide 52: Transformation Program The Detail
TRANSFORMATION PROGRAM THE DETAIL Paul Victor Chief Financial Officer 51
Slide 53: Transformation program
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Transformation program A clear plan to deliver our ambition via targeted levers Operational levers Commercial levers Growth levers ~45% to
Slide 54: Transformation program: on track to deliver
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Transformation program We are on track to deliver Ambition to double EBIT1 Timing Estimated EBIT delivery2 FY24 ~A$50m3 forecast FY25 ~40-
Slide 55: Case Studies
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence CASE STUDIES We have already made meaningful progress towards our ambition, with many more initiatives underway or in the pipeline 54
Slide 56: A fit-for-purpose global operating model
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #1 Operational A fit-for-purpose global operating model ▪ Designed a fit-for-purpose organisation with a lean and agile operati
Slide 57: Automation of assembly at Helidon
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #2 Operational Automation of assembly at Helidon ▪ Installed automated machinery at our Helidon site in Queensland ▪ New techno
Slide 58: Reduce overall supply chain costs
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #3 Operational Reduce overall supply chain costs ▪ Renegotiated major freight contract for the delivery of ammonium nitrate pro
Slide 59: N2O Abatement Project
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #4 Operational N2O Abatement1 Project ▪ In April 2024, Dyno Nobel officially opened a $20m nitrous oxide abatement project at t
Slide 60: Building our toolkit and pricing discipline
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #5 Commercial Building our toolkit and pricing discipline Optimising pricing with data-driven tools We have enhanced our pricin
Slide 61: Drill to Mill
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #6 Commercial Drill to Mill Premium technology bundle The Dyno Nobel Approach ▪ Differential Energy® (Delta E®) For a major cop
Slide 62: New customer in West Africa
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Case study #7 Growth New customer in West Africa ▪ Dyno Nobel is establishing a new long term global supply agreement with AngloGold Ashan
Slide 63: Capital Prudence
CAPITAL PRUDENCE DYNO |NV NOBEL SHO
Slide 64: Deliver sustainable value and returns to shareholders
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Overview Leveraging advantage Transformation Program Capital Prudence Deliver sustainable value and returns to shareholders Capital Working Capital investment capital management & & allocation return
Slide 65: Capital allocation framework
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Capital allocation framework Deliver value-based returns A$180-220m p.a. and deliver asset reliability 1 Sustenance capital Ensure safe, r
Slide 66: Balance sheet upside
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Balance sheet upside Leveraging advantage Transformation Program Capital Prudence Our ROIC and balance sheet is expected to continue to improve through proactive improvement measures and improved inv
Slide 67: Investing for growth & quality earnings
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Investing for growth & quality earnings Commitment to ongoing effective sustenance investment, strict investment criteria for growth proje
Slide 68: Working capital
Working capital Further reduction in underlying levels a focus Dyno Nobel Working Capital Base business: Aim to reduce working capital as a percentage of revenue by ~2 percentage points1 22% Actions already in progress: ▪ Optimisation of minimum and maximum Working capital as a % of sales levels of
Slide 69: Capital management
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Leveraging advantage Transformation Program Capital Prudence Capital management Significant ~$1.4bn capital return program Nov 2022 Dec 2023 Feb 2024 Jul 2024 ~$400m Completion of WALA $500m capital
Slide 70: Paul Victor
Paul Victor Chief Financial Officer 69
Slide 71: Outlook
Outlook Positive FY24 outlook remains unchanged Heading Dyno Nobel Fertilisers Corporate Positive outlook unchanged Stronger second half Full year update ▪ DNA Explosives EBIT growth of ▪ Accretive market share gains in the ▪ Corporate costs: Expected to be mid to high single digits1, including Dist
Slide 72: Mauro Neves
Mauro Neves Chief Executive Officer & Managing Director 71
Slide 73: Consolidation
4 How we control our own destiny to deliver market leading shareholder returns COMPETITIVE ADVANTAGE Consolidation Leveraging advantage Transformation Program Capital Prudence We see consolidation potential in the market; however, will maintain capital controls WHY HOW Grow market leading position F
Slide 74: Key messages
Key messages Our markets and customers are resilient and enduring; and the shift to materials and minerals is advantageous for our total volume, mix and profitability We are leveraging our unique competitive advantage to drive growth in existing and new markets We are working to drive productivity t
Slide 75: Questions & Answers
QUESTIONS & ANSWERS 74
Slide 76: Morning Break
DYNO |NVE Aree NOBEL SHOWCASE MORNING BREAK 20 minutes
Slide 77: Robert Rounsley
Robert Rounsley Chief Growth Officer 76
Slide 78: Technology in the Explosives Context
Technology in the Explosives Context Digital Technologies Integrated Software & Hardware Unique integration of our products, services and improved customer outcomes Data driven design Open system interface with customers Focused on Drill and Blast Core Applications Technologies Applications and meth
Slide 79: Innovation
innovation 1831 1865 1867 1936 1956 1973 William Bickford Alfred Nobel Alfred Nobel Primacord, Melvin Cook Site mixed (SMS) Non-electric Dyno Nobel develops safety invents the first invents dynamite textile jacketed invents water- pump trucks for NONEL commercialises fuse blasting cap detonating cor
Slide 80: Recent innovation timeline
Differential Energy bulk End-of-Hose device Dyno Nobel wireless emulsion, a proprietary Blastweb 2 Centralised blasting DYNOMINER underground patented, allowing all Introduction of electronic technology, CyberDet I method for controlling the 4th Generation EDS system, Geological Element Motion air-p
Slide 81: Why technology is important to commercial success
Why technology is important How do buyers gain confidence in a supplier's ability to reduce the Drill to Mill cost? to commercial success 3% ▪ Customer buying behavior ▪ Driving down the cost of extracting Historical track ▪ Clever technology facilitates an minerals, enhancing mining 40% record is s
Slide 82: Meeting customer needs bulk products
Meeting customer needs bulk products Differential Energy + AN Emulsion Technology What is Differential Energy? 81
Slide 83: Delta E video
DYNO |NVE Tiel NOBEL SHOWCASE Delta E video
Slide 84: Meeting customer needs initiation systems
Meeting customer needs initiation systems Automated manufacturing and local in-country assembly 83
Slide 85: Technology heritage and disciplined investment
Dyno Nobel has a strong technology heritage, and we continue the investment with discipline Maintain leadership & ensure the value is realised STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 7 Idea capture Resource estimation Scoping/framing study Design/develop Test work Customer UAT & trials
Slide 86: Our results
Translating this competitive advantage to earnings growth Strategy remains unchanged 10 Year EDS1 Volume Growth Solve customer needs with leading user-friendly solutions +16.0% CAGR ▪ Collaboration, practical solutions and speed to market derives significant value ▪ Our technology secures relationsh
Slide 87: Electronic detonator commercialisation track record
Electronic detonator commercialisation track record <2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 2019 2020 2021 2022 2023 2024 DGPS 86
Slide 88: Solutions: Surface mining
SOLUTIONS: Surface mining How the unique Dyno Nobel product and service offer meets the industry needs today Best in class Proprietary high fidelity Unique high discharge Break down operational silos, highlight bottlenecks and Unique variable detonators with unique fragmentation loading with EOH ene
Slide 89: Solutions: Quarry sustainability
SOLUTIONS: Quarry sustainability How the unique Dyno Nobel product and service offer meets the industry needs today Unique loading Integrated software Quarry specific EDS Blast design know how Quarries often close to communities and our solutions methods to minimise with state specific control syste
Slide 90: Solutions: Underground mining
SOLUTIONS: Underground mining How the unique Dyno Nobel product and service offer meets the industry needs today Specialised products Wireless through the Unique and powerful Specialised delivery Increasingly complex and new methods are required to for difficult conditions ground centralised blastin
Slide 91: Tying it all together
Tying it all together CONNECTED BENCH: SAFETY PRODUCTIVITY SUSTAINABILITY 90
Slide 92: CyberDet
CASE STUDY CyberDet ▪ Gold customer with complex orebody geometry in flagship mine ▪ Multiple mine sites in their portfolio ▪ Caving operation with previously failed areas creating high-cost methods to manage safety while accessing the orebody ▪ Cyberdet technology combined with method know how allo
Slide 93: Robert Rounsley
Robert Rounsley Chief Growth Officer 92
Slide 94: Growth business
Growth business Forecast growth in selected commodities by geography 350 Rationale 300 250 2023 - 2028 Growth (kt) CUSTOMER MOVES | Customers are migrating towards high growth markets (in line with demand for metals) opportunity to leverage existing 200 relationships to increase presence in these ma
Slide 95: EMEA
EMEA Tier 1 & 2 mine operator points of presence, 20231 Dyno Nobel Relationships 2 Other Tier 1 & 2 operators EMEA Strategy Europe and West Africa Europe (focus) • Mostly Q&C CRH, LaFarge Continue to deliver on existing EMEA plan; Leverage success of Titanobel acquisition, West Africa (Francophone f
Slide 96: LATAM
LATAM Strategy LATAM Peru, Chile and other LATAM markets (e.g. Brazil) LATAM Tier 1 & 2 mine operator points of presence, 20231 Dyno Nobel Relationships 2 Other Tier 1 & 2 operators Establish base infrastructure and equipment to facilitate growth Focus primarily on countries that operate on Mexico •
Slide 97: Facilitating growth
Facilitating growth Well placed to enter new markets Focused regional support ▪ Strong brand recognition in market ▪ Leverage business expertise ▪ Unique bulk product technologies ▪ Regional account management structure ▪ Supply from decentralised manufacturing sites ▪ Dyno Consult technical • IS ma
Slide 98: Modular emulsion plant video
Modular emulsion plant video & PTAR Martabe (Aris Tambunan) 97
Slide 99: Recent success: major account win in Africa
Recent success Major account win in Africa Leveraging strong global relationships unlocks new growth markets Dyno and AGA are establishing a long-term partnership, global operations The global framework partnership enables expansion of the existing relationship across AGA’s global footprint includin
Slide 100: AngloGold Ashanti video
DYNO INVESTOR NOBEL SHOWCASE AngloGold Ashanti video
Slide 101: Summary
Summary 100
Slide 102: Braden Lusk
Braden Lusk Dyno Nobel Americas President 101
Slide 103: Dyno Nobel Americas: Leading the way in technology and performance
Dyno Nobel Americas: Leading the way in technology and performance Positioned for strategic growth and Innovation About Dyno Nobel Americas Quarry and Metals Segments Leading Provider Quarry and Dyno Nobel Americas is the Construction (Q&C) top provider of explosives and Dominant position in the bla
Slide 104: DNA positioned to capture Q&C and Metals growth
DNA is ideally placed to capture Q&C and Metals growth utilizing its distribution and asset footprint. % of Dyno revenue % of Dyno revenue Market growth Commodity (2013, %) (2023, %) (CAGR '23-'28) Metals 36% 37% 3.5% Consistent growth in quarrying and Quarrying & construction will support 32% 43% 2
Slide 105: Our ambition
Our ambition Growth through strategic expansion and cutting-edge innovation. ▪ Customer-Centric Approach: Deliver tailored solutions and exceptional service, fostering long-term partnerships and ensuring customer satisfaction. How we win ▪ Innovative Research and Development: Continuously invest in
Slide 106: Our customer value proposition
Our customer value proposition Empowering mining and construction with leading explosives expertise, innovative systems, and reliable support to enhance outcomes and maximise returns. Continued customer wins RIGHT RIGHT RIGHT REAL across precious metals and Q&C ENERGY TIMING TECHNOLOGY RESULTS Footp
Slide 107: Dyno Nobel
DANK NOBEL
Slide 108: Rio Tinto and Dyno Nobel Partnership
Rio Tinto and Dyno Nobel Partnership Brendan Murphy, General Manager – Minerals, Rio Tinto Kennecott Utah Copper
Slide 109: About Rio Tinto & Kennecott
About Rio Tinto & Kennecott • Rio Tinto: • Specialize in producing essential minerals, including iron ore, copper, aluminum, and diamonds, contributing to global infrastructure and development. • Rio Tinto employs over 47,000 people worldwide, with its headquarters located in London, United Kingdom.
Slide 110: Key successes of the partnership
- Safety performance improvements Key successes of the - Increased productivity and innovation partnership - Enhanced operational efficiency and unit cost reduction - Trust and mutual respect in collaboration
Slide 111: Safety performance improvements
Safety performance improvements Final Wall Compliance Optimization Fly rock modeling • More predictable and precise understanding • RTK and Dyno collaboration on valuations and optimizations for of blasting radius trim and combo blasts, aimed at improving final wall compliance and wall stability • R
Slide 112: Productivity & innovation
Productivity & innovation Drill to Mill • Optimization of fragmentation in hard ore for increased mill throughput • Use of Smart Drill data for pattern loading and processing improvements • Productivity and value-add over the last 3.5 years • Partnership and collaboration ongoing as we look to optim
Slide 113: Operational efficiency and unit cost reduction
Operational efficiency and unit cost reduction Delta E Squared • Targeted use of emulsion based on rock hardness for shovel productivity in hard material and bulk savings in softer material • Improved efficiency in blasting utilizing drill sensor data • Savings on bulk over 2020-2024 around $500k •
Slide 114: Trust and mutual respect
Trust and mutual respect Daily on-site Dyno technical support: • On patterns in the pit, upskilling and supporting the blast crews • Product performance and troubleshooting • Daily blast file creation (timing and loading profiles) Weekly meetings with onsite Dyno technical reps and RTK D&B engineers
Slide 115: Supplier Relationships and Innovations in Blasting
Supplier Relationships and Innovations in Blasting Experiences from Cleveland Cliffs Michael Indihar Senior Mine Engineer, Retired 2024 114
Slide 116: About Cleveland Cliffs
About Cleveland Cliffs Leading Steel Producer ‣ Established in 1847, Cleveland Cliffs is the largest flat-rolled steel producer in North America. ‣ Operates a fully integrated steelmaking process from mining iron ore to manufacturing steel products. ‣ Committed to sustainable practices, reducing car
Slide 117: Partnership with Dyno Nobel
Partnership with Dyno Nobel Collaborative Development of Blasting Techniques ‣ Initial Development of New Blasting Approaches to meet unique needs of Cleveland Cliffs ‣ Elimination of NOx Gases with Titan XL1000D ‣ Advanced Emulsion Technology and Software Integration PAGE | 116
Slide 118: Innovations in Blasting Control
Innovations in Blasting Control Electronic Detonators and Vibration Management Implementation of DigiShot Plus Detonators Signature Hole Analysis for Vibration Control Predictive Software Tools for Vibration Management © 2024 PAGE | 117
Slide 119: Sustainable and Efficient Blasting
Sustainable and Efficient Blasting Tailoring Emulsion Density to Rock Hardness Collaboration on Drilling Effort Measurement GPS-Identified Emulsion Loading Reduction of Environmental Impact and Complaints PAGE | 118
Slide 120: Conclusion and Future Outlook
Conclusion and Future Outlook Long-Term Benefits of Partnership ‣ Enhanced Sustainability and Community Relations ‣ Expanded Mining Reserves and Stability ‣ Continuous Improvement and Industry Leadership PAGE | 119
Slide 121: White Rock Quarries
White Rock Quarries Nick Rudanovich Operations Manager 9/15/2024 120
Slide 122: About White Rock Quarries
• Overview: Established in 1986, White Rock Quarries is one of the largest producers of crushed limestone aggregate in the United States, utilizing state-of-the-art mining equipment and techniques. • Location: Headquartered in Miami, Florida. About White • Material: Specializes in the production of
Slide 123: A challenging environment
A challenging environment • White Rock Quarries operates in a region surrounded by residential, commercial, and retail neighbors, adhering to some of the strictest environmental regulations in the country. • The operation is bordered on three sides by commercial, residential, and retail properties,
Slide 124: Operational Considerations
Operational Considerations Urban Proximity: With residential and commercial structures within 1,500 feet of the quarry, blasting operations must be carefully timed and managed to minimize noise, dust, and vibrations, ensuring the quarry remains a responsible neighbor. Regulatory Compliance: The quar
Slide 125: Technological Advancements and Environmental Stewardship
Technological Advancements and Environmental Stewardship Technological Demands: To meet these regulatory requirements while maintaining operational efficiency, White Rock Quarries has transitioned from Nonel initiation systems to advanced electronic blasting systems, necessitating continuous upgrade
Slide 126: Strategic Partnership Benefits
Strategic Partnership Benefits • Proven Reliability: Delivers effective blasting solutions, including Titan emulsion technology for consistent results in challenging conditions. • Advanced Technology: Utilizes electronic detonators to meet strict regulatory standards and optimize precision. • DynoCo
Slide 127: Thank You
ee 4 ae r= F A AN We BR Thank You
Slide 128: DNA Channel Capabilities Joint Ventures & Distribution
DNA Channel Capabilities Joint Ventures & Distribution Delivering competitive advantage how we go to market with our channels MD&B WAMPUM VEDCO Buckley Non-Exclusive WESCO 127
Slide 129: Maine Drilling and Blasting
Maine Drilling and Blasting Benefits of a JV / Dyno Nobel Partnership Dan Werner President & CEO 2024 © 2024 128
Slide 130: MD&B Organizational Overview
MD&B Organizational Overview ‣ 58 years in business ‣ 15 Operating Divisions / 12 Internal Departments / 650 Employees ‣ 9 Regional Offices / 9 Distribution Facilities ‣ More Than 170 Drills – 20 Excavators – 165 Drill Operators – 95 Blasters ‣ 75 Distribution Units, 82M Pounds and 1.8M Detonators A
Slide 131: Profile & Segments
Profile & Segments ‣ JV with Dyno Nobel Since 2012 ‣ ESOP Established in 2004 ‣ Segments: • Commercial • Transportation • Energy • Residential • Mine and Quarry ‣ Regional Presence: • Northeast, Mid Atlantic, Southeast ‣ Services: • Construction, Quarry, Retail (IEX), Foundation Services (FSG) © 202
Slide 132: Products, Services & Customers
Products, Services & Customers 2023 Revenue by Segment ‣ Full-Service Provider: Drilling and blasting, subcontractor, and general contractor Retail Foundation 9% Services ‣ Quality and Capabilities: 4% • On-site engineering teams • In-house equipment services • Extensive driller/blaster training • R
Slide 133: Financial Performance
Financial Performance ‣ Revenue Growth: • $119.8 million (2019) to $221.8 million (2023) ‣ CAGR: 16.6% ‣ Profitability Ratios (3-Year Average): • Return on Equity: 24.0% • Return on Invested Capital: 21.6% • Return on Assets: 15.8% © 2024 PAGE | 132
Slide 134: Dyno Nobel Relationship & JV Benefits
Dyno Nobel Relationship & JV Benefits JV Benefits: Risk Management: End user level Market Diversity: 4000+ customers, 85% repeat business Advanced Technology: Leverage high-quality products Market Intelligence: Real-world application testing Earnings: Beyond product sales through service models © 20
Slide 135: Toyota Megasite Project
Toyota Megasite Project Overview and Challenges Client: TOYOTA ‣ Location: Greensboro, NC ‣ Duration: 19 months (April 2022 - October 2023) ‣ Scope: 1,800 acres for a lithium battery plant Challenges ‣ Strict scheduling requirements ‣ Overabundance of groundwater ‣ Extreme weather conditions ‣ Diffi
Slide 136: Toyota Megasite Project
Toyota Megasite Project Solutions and Support Enabling Our Success Resources Deployed: Work Schedule: Joint Approach Enabled Success: ‣ 8 drills, 8 drill operators, ‣ Up to 7 days a ‣ Dyno Nobel ramped up distribution assets and staffing within 2 weeks 3 blasters, several week, 12-14 hours ‣ MD&B se
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Slide 138: Greg Hayne
Greg Hayne Dyno Nobel Asia Pacific President 137
Slide 139: Leading business positioned for further growth
DIVISIONAL HIGHLIGHTS Leading business positioned Expansive footprint across Asia Pacific allows DNAP to compete in all major regional markets for further growth Papua New Guinea » Number #1 and #2 player in our key markets across Asia Pacific1 Indonesia (8) Moranbah QNP (JV) Business underpinned by
Slide 140: Attractive customer base positioned in resilient end markets
NATIONAL RECONTRACTING Attractive customer base positioned in resilient The Australian AN market has tightened to a balanced state and is expected to continue to tighten through to 2030. end markets Australia AN market S&D (ANEq kt) 1 Demand expected to Ammonium Nitrate market has tightened to a exc
Slide 141: Coronado video
DYNO |NVE Tiel NOBEL SHOWCASE Coronado video
Slide 142: Moranbah: strategically located, world-class facility
MORANBAH Strategically located, world-class facility positioned for growth Strategically located asset in the heart of the Most successful campaign to date North Bowen Basin • Record ANSOL production volume of 372kt achieved in 2023 prior coal mining region » to loss of GI supply • Ammonia productio
Slide 143: Delivering growth through technology and customer value proposition
METALS Servicing West Coast Iron Ore and Precious Metals market Delivering growth through through Port Hedland and Kalgoorlie Emulsion Plants technology and customer value proposition Port Hedland Emulsion Plant » Value seeking customer base with an increasing appetite for technology solutions Pilba
Slide 144: Fortescue video
DYNO |NVE Tiel NOBEL SHOWCASE Fortescue video
Slide 145: Delivering growth through technology and customer value proposition
METALS Servicing West Coast Iron Ore and Precious Metals market Delivering growth through through Port Hedland and Kalgoorlie Emulsion Plants technology and customer value proposition Port Hedland Emulsion Plant » Value seeking customer base with an increasing appetite for technology solutions Pilba
Slide 146: Bymecut video
DYNO |NVE Tiel NOBEL SHOWCASE Bymecut video
Slide 147: Greg Hayne
Greg Hayne Dyno Nobel Asia Pacific President 146
Slide 148: Questions & Answers
DYNO |NVE ep NOBEL SHOWCASE QUESTIONS & ANSWERS
Slide 149: Lunch
LUNCH 45.minutes DYNO | NOBEL S
Slide 150: ROY (Jérôme Lasalle) video
ROY (Jérôme Lasalle) video 149
Slide 151: Panel Discussion: Technology Value in Use
PANEL DISCUSSION TECHNOLOGY VALUE IN USE 150
Slide 152: PIEGON (Roland Ledroff) video
PIEGON (Roland Ledroff) video 151
Slide 153: Stephenie De Nichilo
Stephenie De Nichilo Chief HSE & Operations Excellence Officer 152
Slide 154: Operating model focused on excellence
Operating model focused on excellence > 70% of our global workforce works directly in our operations 153
Slide 155: Moving from reactive to proactive culture
Moving from reactive to proactive culture Taskforce approach applied to stabilise asset performance TASKFORCE APPROACH SYSTEMIC APPROACH Stabilise Systemic Mature Stabilise performance Sustain and improve performance ▪ Turnaround campaigns executed ▪ External reliability review ▪ Key vulnerabilities
Slide 156: Results achieved
Results achieved Cheyenne Ammonia Plant Unplanned Losses Phosphate Hill Ammonia Plant Average Continuous Days Online Equivalent to $6M in 100 improved unplanned 90 comparison to externally Opportunity 80 purchased equivalent of $30M ammonia 70 of AP Production 2020 2021 2022 2023 2024 YTD (August*)
Slide 157: Helidon automation video
Helidon automation video 156
Slide 158: Our journey towards operational excellence
Our journey towards operational excellence PURPOSE Groundbreaking performance Purpose VALUES Continuous Ways Operating improvement of discipline working CULTURE Safe, inclusive and high performing MANAGEMENT OPERATIONS SYSTEM People 157
Slide 159: Operations excellence summary
Operations excellence summary Loss reduction improvements translating to bottom line EBIT improvement Continuous improvement initiatives contributing to transformation ambition New operating model ensuring expertise applied to support the business units achieve safe, reliable and cost-efficient oper
Slide 160: Sunil Salhotra
Sunil Salhotra Chief Development and Sustainability Officer 159
Slide 161: Our sustainability ratings
Our sustainability ratings Benchmarking the sustainability of IPL ▪ Included in the most recent S&P Global Sustainability Yearbook ▪ ▪ ▪ Included in the FTSE4Good with an increased score in H124 ▪ 160
Slide 162: Key progress on our transition pathway
Key progress on our transition pathway ▪ 7% - Installation of Moranbah Tertiary N2O Abatement2 opened 8 March 2024 ▪ 19% LOMO Tertiary N2O Abatement2 approved for installation in 2025 ▪ 17% Gibson Island Green Ammonia FID resting with our partner, FFI 2024 PROMISES ▪ SBTi Chemicals Sector Methodolog
Slide 163: Moranbah tertiary N2O abatement project
Moranbah tertiary N2O abatement1 project ▪ Abating approximately 200,000 tonnes of carbon dioxide equivalent p.a. which is comparable to taking almost 50,000 cars off the road or planting more than three million trees a year ▪ global operational GHG2 emissions ▪ GHG2 emissions ▪ Operating well expec
Slide 164: LOMO tertiary N2O Abatement Project
LOMO tertiary N2O Abatement1 Project ▪ Approved for installation in FY25 ▪ Will abate approximately 500,000 tonnes of carbon dioxide equivalent (or taking 125,000 cars of the road) ▪ operational GHG2 emissions ▪ 2 emissions ▪ Expected to contribute to 2025 target of 25% by 2030 and pathway to a Pari
Slide 165: Green ammonia projects
Green ammonia projects Green ammonia basis for substituting for gas as hydrogen feedstock during 2030-50 Pursuing two projects at Gibson Island (Fertilisers) and Gladstone (Explosives) Both projects utilise ammonia expertise in support while consistent with capital allocation framework Gibson Island
Slide 166: Looking ahead
Looking ahead Four key next steps: Options to support Moranbah Green Ammonia continue to progress well Continuing to build Scope 3 management into BU procurement and supply chain processes to be able to engage with suppliers and track and manage Scope 3 by FY25. Onboarding of new global GHG1 managem
Slide 167: Tatiana Rudometova
Tatiana Rudometova Chief Legal & Corporate Affairs Officer 166
Slide 168: Dyno Nobel legacy video
DYNO |NVE Tiel NOBEL SHOWCASE Dyno Nobel legacy video
Slide 169: Harnessing the power of Dyno Nobel: the value of brand
HARNESSING THE POWER OF DYNO NOBEL THE VALUE OF BRAND IN BUSINESS TRANSFORMATION 168
Slide 170: Dyno Nobel
DY NO NOBEL
Slide 171: Global consistent use of our brand
Global CONSISTENT use of our brand REGIONS COMPANIES PRODUCTS FRANCE INDONESIA 170
Slide 172: Including proposed alignment to our Company name
Including proposed ALIGNMENT to our Company name 171
Slide 173: Mauro Neves
Mauro Neves Chief Executive Officer & Managing Director 172
Slide 174: Key messages
Key messages Our markets and customers are resilient and enduring; and the shift to materials and minerals is advantageous for our total volume, mix and profitability We are leveraging our unique competitive advantage to drive growth in existing and new markets We are working to drive productivity t
Slide 175: Questions & Answers
QUESTIONS & ANSWERS 174
Slide 176: Announcements regarding dinner and Day 2
ANNOUNCEMENTS REGARDING DINNER AND DAY 2 175
Slide 177: End of Day 1
END OF DAY 1 176