Orica Limited · ASX:ORI
Orica — Merrill Lynch Australasia Investment Conference 2004
22 slides from Orica's conference presentation, Oct 1, 2004
Slide 1: Merrill Lynch Australasia Investment Conference
Merrill Lynch Australasia Investment Conference Z a igen alc | alia tember 2004... a ee ae
Slide 2: Orica - presentation outline
Orica - presentation outline « Some fundamentals ¢ Progress in the past year ¢ Strategy & Future direction
Slide 3: Fundamentals
Slide 4: Orica snapshot
Orica — snapshot * Australian owned publicly listed company trading on the Australian Stock Exchange (ORI) Market capitalisation of A$4.7bn (US$3.3bn)* Ranked in top 50 Australian companies based on market capitalisation Operates in about 40 countries - 9000* employees Comprises four business platfo
Slide 5: Orica - what we do
Orica — what we do Mining Services «* Commercial explosives plus blast management Chemicals and niche manufacturing Consumer Products « Paint, paint preparation, handyman and premium consumer garden care products Incitec Pivot « Fertilisers @) Dg) @ + Niche chemical distribution, value add| Business
Slide 6: Orica - EBIT performance of existing businesses
Orica — EBIT* performance of existing businesses * excluding corporate costs
Slide 7: Approach to how we do things
Orica - approach to how we do things —~ irategy
Slide 8: Progress in the past year
Slide 9: What we promised to do (a year ago)
Orica - what we promised to do (a year ago) 1. Managing through strict financial criteria 2. Top line growth 3. Relentless focus on cost and capital efficiency 4. Bolt on acquisitions ...how have we performed against what we promised?
Slide 10: What we've delivered so far
Orica - what we’ve delivered so far Managing through strict financial criteria Only one of our strategic businesses units has yet to achieve our 18% RONA target — North America Mining Services is being restructured and we are confident it will exit this year with 18% RONA in sight All acquisitions a
Slide 11: What we've delivered so far
Orica - what we’ve delivered so far 2. Topline growth * Sales revenue growth of 11.5% in the first six months to 31 March 2004 driven by — New businesses — Underlying volume improvement following: > partial drought recovery > strong consumer confidence > improved mining volumes in Australia and Lati
Slide 12: What we've delivered so far
Orica - what we’ve delivered so far 3. Relentless focus on cost and capital efficiency Total cost as a percentage of sales reduced by 500 basis points in the six months to 31 March 2004 Completed 5% share buyback -13.9M shares bought back for $177M Maintained strong focus on working capital Added lo
Slide 13: What we've delivered so far
Orica - what we’ve delivered so far 4. Bolt on acquisitions Completed acquisition of Indian Explosives and Initiating Explosives Systems India (Oct 2003) Completed the acquisition of Australian & NZ Yates Consumer Lawn and Garden Care business (Nov 2003) Acquired Bronson and Jacobs food and speciali
Slide 14: Strategy & Future Direction
Slide 15: Orica - strategy and execution
Orica — strategy and execution “Build on Strength” Growth phase EP/FE Zero EP. (= 18% RONA*). um Efficiency phase “Earn the right to Grow” Growth * RONA = EBIT/(Working capital and fixed assets) _EFFICIENCY IMPROVEMENT AND GROWTH 15
Slide 16: Orica - simple strategy, superior results
Orica — simple strategy, superior results Bolt on acquisitions and geographic expansion Plant expansions that meet IRR 15% & 18% RONA minimum Organic growth and productivity gains will generate significant free cash Growth in earnings 16
Slide 17: Orica - Where do growth opportunities lie?
Mining Services . Consumer Products . Orica - Where do growth opportunities lie? Chemicals New geographies : Leverage off existing acquisitions Plant expansions * Organic and acquisitive Organic growth growth * Commercialisation of new technologies + Sustainability - energy, water & greenhouse Furth
Slide 18: Recent growth scorecard
Orica - recent growth scorecard A$M 2003 2004 =Total Geographic expansion 21 21 Plant expansion 57 114 171 Category expansion 45 45 Mergers and acquisitions 446 154 600 18
Slide 19: What are we aiming to do going forward
Orica - what are we aiming to do going forward Orica is positioning to be the number one global “niche” chemical company through: — market leadership in niche markets and/or selected geographies — significant plant expansion opportunities — the delivery of consistent economic profits — the developme
Slide 20: Creating value for shareholders
Orica - creating value for shareholders Orica share price performance compared to Australian All Ordinaries 20 All Ordinaries Orica
Slide 21: Summary
Orica - summary Continued focus on EFFICIENCY and CULTURE Continued focus on low risk growth STRATEGY Above average market returns Performance based culture ELIVERING PROMISI 21
Slide 22: Disclaimer
Disclaimer In addition to historical information, this report contains forward-looking statements. Such statements include those concerning Orica Limited's (‘the Company”) expected financial performance and its strategic and operational plans, as well as all assumptions, expectations, predictions, i
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