Slide 1: TOO
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Slide 2: Appendices
ILU is) ‘Appendices a
Slide 3: TOOT
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Slide 4: USA turnaround on track
> USA turnaround 0 on n track > Overall result t significant be ert results
Slide 5: Negative factors influencing 2003 results
Negative factors influencing 2003 results @ roduction and sales | > USA - . delayed fi fi nal commissioning of old Hickory L ! start up and impact of | Hurricane Isabell See > CRL production diffi culties, including 2 a 3 month shutdown of the Yarram dredge oo / b lower SR sales 2002 sales. s underp
Slide 6: Progress Against Strategic Objectives
ILU is) r Progress ss Against 5 strategic Objectives. ‘Appendices
Slide 7: 2003 versus 2002 Net Profit after Tax & OEI
2003 versus 2002 Net Profit after Tax & OEI r 158
Slide 8: Financials
Financials - _ Sales Revenue cont Profitability = EBITDA(A$m) _ EBITDA/cont-sales. _EBIT (A$m) _ _ NPAT (A$m) —
Slide 9: Financials cont'd
Financials cont’d LYE LSTA UU RED yoy Ly i De OTE ee ee ee hee yy ye Pipes We Ye i LCT ye PE. jand int ey ae a gg oS msolid j ee ee nso storie FS SSSA iit ye TU . Ey ae i Le Wa ere: VU: ey Ve Ve ae }and interest cover We est cove er | ie Lf: Te ey Tih ey Maeoe i, aed a) divide Ey, Te ee nd (cents ts
Slide 10: Hedge position/Balance sheet exposure
Hedge position/Balance sheet exposure >9 ILU / / Hedge position as ati /1/2004 0.5508 0.5734
Slide 11: Corporate tax position
Corporate tax position ES ILU Tax position going forward is based on the following _ > expect t commence ying g taxi in 2005 oo 2003 3 full year tax rate was lower than expected |. 23 ein on 1uss200 mill ion notes. not taxable -
Slide 12: Dividend - franking outlook
Dividend - franking outlook Payment —Cents/__ timing __sshare:~C --10cents — 2003 Final April 2004 “Interim* ey 2004 -~- April 2005 Final* |, ERL Special __ Anticipated _ | ses tranche _
Slide 13: Appendices
| Appendices ae
Slide 14: Murray Basin overview
Murray Basin overview is ILU | DFS for Douglas and MSP nearing completion _ >» on track for Q2 fi final investment decision : , technical and commercial i issues progressing as planne » key regulatory approvals completed — Co 2. Construction startup and commissioning schedule unchanged > mine and MS
Slide 15: Murray Basin — progress update
Murray B Basin — progress update 9 ILU _ » Mining unit, wet concentrator plant wer) and MSP | preliminary design work/formal | reviews completed _ iled ign work nearing completion / , Contracts awarded/ter ders issued . pipeline and pumping station contacts sawarded , road and earthworks tenders iss
Slide 16: Murray Basin — new development option
Murray Basin — new development option AS ILU 7 : Fucton region is s developing as a viable ¢ alternative to KWR 2 as ae next mining operation , grades/assemblage capable of delivering similar/ better - REZ production rates Oo Lo » lower capital costs, reduced tech ical ri via dry mining , - opportun
Slide 17: WA Operations review
WA Operations review 1,200,000 » MnM projects 50% A complete by year end , Increased zircon producuan. y sourcing/mining higher _ grades (MW) + improved recoveries _ (SW/MW) | : ‘Increased SR productio , improvements to ki operating practice: __which offset major | maintenance outages oF - Timenite
Slide 18: Western Australia — One Site Focus
Western Australia — “One Site Focus” © , \ a GERALDION | a NARNOMLY 8 2 BR Amide eniasinetane ¥ i HB dopentter Fa ovachaning inte ¢ More remote mine sites ¢ Greater blending of ores : os 100m ¢ Shared production options a ¢ Transport a key issue ) * Managed as one group \ CATABY GINGIN WESTERN AUSTR
Slide 19: WA Operations — outlook and key challenges
© ILUKA S WA Operations — outlook and key challenges , Production ) expected deterioration i in grades and assemblages will ___Fesultin lower rutile and zircon production » SR production — slightly higher - includes 4 week _ _ maintenance shutdown of SR2 in early Qi 2004 plus | _week shutdown of SR3
Slide 20: CRL Operations review
CRL Operations review EO OnG ¢ ne DG b ENG eG £0 4 ed 0 ¢ 5 e ® @ ale Ge 8 b
Slide 21: CRL Operations — outlook and key challenges
SS " CRL Operations — outlook and key challenges @ ILUKA » 2004 Raz production impacted ti by . Ly planned 6 week Ibis dredge shutdown i in eua2- > lower grades during 12 month transition to Enterprise, _ commencing: me -Q2 2004 oo y _ Heavily reliant on supplementary: dy mining to offset lower / |
Slide 22: USA Operations review
USA Operations review 300,000) | “Tmenite | ao Virginia MnM projects substantially _ complete by yea end Final commissioning of Old Hickory completed i in Qi > MCI relocated i in Qi and 7 upgrade commenced | in Ly _ well advanced at year oe USA EBIT positive in H2 7 Profit turnaround completed by ye
Slide 23: USA combined production to be 15%-20% higher
_ >» USA combined productic a to be 15% - - 20% fe higher | ompared with oe _ . > delvery ? benefits from contin us s improvement focus _ through out USA operations — __ > scale — more profitable mineral sands crowth opportunities being sought
Slide 24: Operational Performance and Outlook
| FinancialPerformance sid Performance a | Operational Performance and Outloo! ‘Appendices a
Slide 25: TiO2 market outlook
TiO, market outlook BS ILU | Feedstock minteet remains competitive with supel y _ outstripping demand >» Tio, pigment prices under pressure as ip producers fight for market share. Pigment producer's profitability under pressure Additional slag and sulphate il ilmenite placing pressure on . feedstock
Slide 26: TiO2 feedstock supply/demand
TiO, feedstock supply/demand @ Synthetic Rutile _ ) pricesi increasing in US$ to D pene REV with a » Rutile” prices i increasing in US to _ maintain REV with aoa , > Chloride ilmenite price movements under long-term contracts ) > ‘Sulphate ilmenite ___» slight decrease i in US$ due mm Chi limente ——
Slide 27: 2004 TiO2 sales outlook
2004 TO: sales outlook © ILUKA / Sales lower dueto . straints yy ey 5 Sulphate dente y, Sales under pressure due to orerenty USA production ee De
Slide 28: Zircon market overview
Zircon market overview is ILU 2006 2007. +2008 «= 2009-s«2010—Stt”
Slide 29: Zircon sales outlook
Zircon sales outlook aren Price ex merelia / “(aes 1970 - 7 1998, IM 1998 - - 2003) ij , Expect a slight. reducti _ due to . Zircon Price | g/tonmeReal-2003 _ 2003 ducto temporary supply = Uss/teat2003 —_As/tReal2003 Forecast, “constraints of some 2 oe » _ However, demand > large i increase in s of
Slide 30: Market outlook summary
Market outlook summary - - Two distinct markets i in terms of supply/demand | iene ‘ minerals competitor: aggressive in uss pri > REV of high Ti0, feedstocks has been realigned — ; > could sell more rutile and SR if product i is available — 2 Challenges _ . |. 2 stocks of most products are low _ __»
Slide 31: Appendices
|_ Appendices ae
Slide 32: Progress against strategic objectives
Progress against strategic objectives as ILU | MnM program aplemented - tockto meet target of ag40 million | in pe eotainge by oe 2004
Slide 33: MnM program — 2003 results
MnM program — 2003 results Nis ILU : “Ag24 million i in pre-tax benefits achieved d through cost savings _ > key areas — —_WA mining (49%), CRL processing/mining (25%) and USA ee) - MnM operational efficiencies - mining _ additional 211,000 tonnes oft HMC produced : _ > ‘key area Virginia (95%)
Slide 34: MnM program — 2004 targets
MnM program — 2004 targets lis ILU A$a5+ million: in n pre-tax benefits. . key a areas — —WA mining/ processing and d corporate/adimin | —. addition | 100,000 t tonnes of finished product > key areas ~ —WA A (61%), |
Slide 35: Appendices
ILU ‘is Market Outlook Outlook |. . ress 5 Agalt st strategic = Objectives _ Appendices
Slide 36: 2004 financial outlook
2004 financial outlook Bis ILU The 2004 NPAT result will be influenced. by FX-a flat result ____ compared with 2003 would ae a seed outcome based on current FX rates | . ___» Despite FX issue, 2004 will s see an. » improvement in the : _ of earnings - _ _ » Theta : holiday has gone and Tluka is tran
Slide 37: Progress Against Strategic Objectives
ILU is Progress Against Strategi bjectives ncluding Comments
Slide 38: Group production & sales 2003 v 2002
Group production & sales 2003 v 2002 @ _ Product — ~ ktonnes _ Rutile prod Rutile sales ‘SR production — SRsales Ilmenite production Imenite sales _ _ Zircon —— Zircon sa sales _ Other pre pro: uction _Other sales _ Coal production Coal sales
Slide 39: Impact of exchange rate on EBIT
Impact of exchange rate on EBIT _ AS EBIT impact pre y hedging i ] As Hedsing benefit ol $27m_ ee pet s Sheet impact on. J EBIT@ 0.75 © ILUKA As / uss BIT Sensitivity vs 2003 ° 0. 67 a _ $8.0m $13.0m | $17.6m $22.1m $26.3m
Slide 40: Debt repayment profile
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