Orica Limited · ASX:ORI
Orica — Investor Presentation (September 2015)
23 slides from Orica's investor presentation, Sep 15, 2015
Slide 1: Investor Briefing: Brownsburg Manufacturing Plant Site Visit
For personal use only INVESTOR BRIEFING BROWNSBURG MANUFACTURING PLANT SITE VISIT NORTH AMERICA 15 September 2015 James Bonnor Group Executive and President, North America
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Orica Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the
Slide 3: North America Overview
NORTH AMERICA For personal use only OVERVIEW
Slide 4: At a Glance
NORTH AMERICA - AT A GLANCE For personal use only AN volume Revenue Employees (as a % of total ORI volume) 1 (as a % of total ORI revenue) 1 2340+ 1336 direct customer facing 642 upstream manufacturing 33% 28% Balance in R&D, functional support Manufacturing sites Mobile Manufacturing Units Mobile C
Slide 5: Geography and Commodity Exposure
NORTH AMERICA GEOGRAPHY AND COMMODITY EXPOSURE For personal use only By geography By commodity % of revenue1 % of revenue1 Other 6 Mexico – Direct 13 Other Zinc 12 Thermal US – Direct 14 Nickel 1 coal 2 Iron ore 3 30 Coking coal 4 US - Ground Support 17 Copper 9 Canada - Direct 22 18 21 Gold Quarryi
Slide 6: Strong Market Position in the Region
NORTH AMERICA STRONG MARKET POSITION IN THE REGION For personal use only 100% Main competitors: Main competitors: Main competitors: Main competitors: Dyno Nobel Dyno Nobel Dyno Nobel Dyno Nobel Austin Powder Austin Powder Austin Powder Austin Powder Maxam Maxam Enaex Yara 0% North America United Sta
Slide 7: Market Share by Major Markets
NORTH AMERICA MARKET SHARE – BY MAJOR MARKETS For personal use only WCA Coal ECA Labrador WCA Copper US Iron Range Trough Iron Powder River Basin WUS Gold Northern Appalachia Illinois Basin Unita Basin Southwest Copper Central Appalachia Southern Appalachia Mexico Gold Orica has significant position
Slide 8: Downstream Operations
NORTH AMERICA DOWNSTREAM OPERATIONS For personal use only 1,550k AN capacity* 21 Emulsion plants 4 Initiating systems plants 2 Packaged plants 104 Downstream sites/depots Unrivalled operational footprint provides the scale and complexity to support the diverse customer base 8 © Orica Limited Group *
Slide 9: Direct Business Services Mix
NORTH AMERICA DIRECT BUSINESS SERVICES MIX For personal use only Direct business revenue by service level % of revenue1 Other Customer operated 1 Product systems 11 only 23 29 Hole Loading Service 36 Blast Loading Service While services are associated with 65% of our sales through our direct channel
Slide 10: Cost Effective, Long Term AN Supply
NORTH AMERICA COST EFFECTIVE, LONG TERM AN SUPPLY For personal use only • 10 year agreement with CF Industries Inc to supply up to 800k standard tonnes for North American operations ex Yazoo City • Commences in January 2017; option for Orica to extend for further 5 years until end 2031 • Gas-backed
Slide 11: Strong Joint Venture Partnerships
NORTH AMERICA STRONG JOINT VENTURE PARTNERSHIPS For personal use only Nelson Brothers Mining Services 100% PRB Coal Southwest Energy LLC 50% Copper, 50% Gold Nelson Brothers LLC 50% ILB Coal, 50% APP Coal Established Joint Ventures provide the channel to the major mining markets in the US 11 © Orica
Slide 12: Key Opportunities
NORTH AMERICA KEY OPPORTUNITIES For personal use only • Whilst market outlook is subdued Orica is strongly positioned with its breadth and depth of business to capitalise on the growth opportunities • With the recent long term sourcing arrangements with CFI, Orica has a reliable and low cost ammoniu
Slide 13: Our Competitive Advantage
NORTH AMERICA OUR COMPETITIVE ADVANTAGE For personal use only Low capital requirements with an attractive rate of return Low cost supplier supported by long term gas-backed AN sourcing options Irreplicable scale Sophisticated distribution network Strong customer and channel relationships 1
Slide 14: Latin America Overview
LATIN AMERICA For personal use only OVERVIEW
Slide 15: At a Glance
LATIN AMERICA - AT A GLANCE For personal use only AN volume Revenue Employees (as a % of total ORI volume) 1 (as a % of total ORI revenue) 1 2700+ 1700 Mining services 744 Manufacturing 19% 18% Remaining Support functions Manufacturing sites Mobile Manufacturing Units Mobile Charging Units (MMUs) (M
Slide 16: Geography and Commodity Exposure
LATIN AMERICA GEOGRAPHY AND COMMODITY EXPOSURE For personal use only By geography By commodity % of revenue1 % of revenue1 Other 3 Venezuela 3 Argentina 8 Other 9 Colombia 13 Iron ore 8 Brazil 14 Quarrying 8 & Construction 47 Copper Peru 20 Coal 11 17 Chile 39 Gold Orica is the only explosives compa
Slide 17: Business Services Mix
LATIN AMERICA BUSINESS SERVICES MIX For personal use only Revenue by service level % of revenue1 Other Blast Management 3% Services 9% Blast Loading Service 51% Product 37% only Increase in advanced blasting products and services in the last five years 1 Based on 1H15 results against total Orica gro
Slide 18: Potential to Grow Share in the Region
LATIN AMERICA POTENTIAL TO GROW SHARE IN THE REGION For personal use only 100% Main competitors: Yara Enaex Main competitors: Main competitors: Main competitors: Enaex Exsa Enaex Farmesa Maxam 0% Latin America Peru Colombia Chile Orica Other Orica has leading market share positions across Latin Amer
Slide 19: Downstream Operations
LATIN AMERICA DOWNSTREAM OPERATIONS For personal use only 550kt AN consumption 14 Emulsion plants 5 Detonator plants 4 Packaged plants Integrated downstream contract position 19 © Orica Limited Group
Slide 20: Multiple AN Sourcing Options
LATIN AMERICA MUTLIPLE AN SOURCING OPTIONS For personal use only • Low cost supplier supported by YARA lowest gas prices from FSU • Balanced by local arrangements FSU with domestic producers • Competitive on a CIF basis Nuevitas • Options to flex sourcing options Abocol where necessary Cachimayo Val
Slide 21: Key Opportunities
LATIN AMERICA KEY OPPORTUNITIES For personal use only • Long term metals outlook: Leverage Copper and Gold future market growth outlook and strengthen Orica market leader position • Drive growth: Aggressively capturing market opportunities in Oil & Gas and Infrastructure development (Q&C) • Technolo
Slide 22: Our Competitive Advantage
LATIN AMERICA OUR COMPETITIVE ADVANTAGE For personal use only Low capital requirements with an attractive rate of return Tier 1 supply options from a number of sources Competitive on a CIF basis Integrated downstream contract position Sophisticated distribution network Strong customer an
Slide 23: Contact details
For personal use only Contact details: Investor Relations Delphine Cassidy T: +61 3 9665 7774 E: delphine.cassidy@orica.com 23 © Orica Limited Group