Orica Limited · ASX:ORI
Orica — Investor Presentation (July 2006)
22 slides from Orica's investor presentation, Jul 6, 2006
Slide 1: ARPA Over 50's Investment Discussion Group
. ARPA Over 50’s Investment Discussion Group 6 July, 2006 Greg Slade Investor Relations Manager
Slide 2: Orica – snapshot
Orica – snapshot • Australian owned publicly listed company trading on the Australian Stock Exchange (ORI) • Market capitalisation of approximately A$7.5bn* • Ranked in top 50 Australian companies based on market capitalisation • Operates in approximately 40 countries - 11,000 employees • Comprises
Slide 3: Orica – countries in which we operate
Orica – countries in which we operate Europe FSU Troisdorf Brownsburg Denver North America Gomia Asia Pacific Kurri Kurri Latin Melbourne America Capetown Key Countries of operation Research and Development Centres 3
Slide 4: Gross sales by geography 2005
Gross sales by geography 2005 Other 14.3% Americas 22.4% New Zealand Australia 51.5% 11.8% Continuing the “internationalisation” of Orica 4
Slide 5: Who are our investors?
Who are our investors? As at 10 May 2006 Retail Investors 25% Asian Institutions 3% Australian Institutions 52% North American Institutions 6% European Institutions (ex UK) 5% UK Institutions 9% Majority Australian owned with significant offshore investment 5
Slide 6: How have Orica shares performed?
0 50 100 150 200 250 300 350 400 3/07/2000 3/10/2000 3/01/2001 3/04/2001 3/07/2001 3/10/2001 3/01/2002 3/04/2002 3/07/2002 3/10/2002 3/01/2003 3/04/2003 3/07/2003 3/10/2003 3/01/2004 3/04/2004 3/07/2004 3/10/2004 3/01/2005 3/04/2005 3/07/2005 3/10/2005 Continued growth in shareholder value 3/01/2006
Slide 7: Orica's strategy
Orica’s strategy Three Key Principles: • Market leadership • Earning the “Right to Grow” • Growing “Close to the Core” No change to existing strategy 7
Slide 8: Orica – business platforms
Orica – business platforms Mining Services Global leader in commercial blasting solutions offering commercial explosives, initiating systems and advanced mining solutions to the mining, quarrying and construction industries. Consumer Products Orica’s Consumer Products business is Australia’s and New
Slide 9: EBIT by business platform 2005
EBIT by business platform 2005 Chemnet Chemicals 13.5% Services 10.5% Consumer Products 17.4% Mining Services 58.6% Mining Services approaches 60% of EBIT 9
Slide 10: Orica Mining Services
Orica Mining Services • Offers commercial explosives, initiating systems and advanced mining solutions to the mining quarrying and construction industries in Australia, Asia, Europe, North America, Africa and Latin America • The global Explosives market is currently estimated at ~$9.5bn • The market
Slide 11: Orica Consumer Products
Orica Consumer Products • Leading marketer of branded and private label paints and stains, dry powder coatings, paint preparation and associated hardware products, sealants and adhesives, car care and garden care products • The business operates in Australia, New Zealand, Papua New Guinea, Hong Kong
Slide 12: Orica Chemnet
Orica Chemnet • Orica’s chemical trading solutions business, supplying the market from all sources including: ‐ own manufacture ‐ external manufacture ‐ as a distributor or agent • Largest chemical trading business in Australasia • Strong asset position with manufacturing plants and supply chain inf
Slide 13: Orica Chemical Services
Orica Chemical Services • Divided into three business units: ‐ Watercare – products used by municipal customers for creating safe drinking water and treating sewage ‐ Industrial Chemicals – Adhesives & Resins, specialty chemicals ‐ Mining Chemicals – Sodium cyanide used in gold production • Strong a
Slide 14: Financial highlights
Half year ended 31 March 2006 Financial highlights • Sales revenue +9% • EBIT +13% • NPAT +14% • EPS +6% • Interim dividend 26cps (pcp 25cps) • Record result in Mining Services & Chemical Services • Improving cashflow performance • Successful capital raisings to fund Dyno acquisition A solid result
Slide 15: Financial results: NPAT and ROSHF
Half year ended 31 March 2006 Financial results 160 25% 140 146 20% 120 122 128 NPAT (A$M) 100 ROSHF 15% 97 80 80 60 10% 40 5% 20 30 0 0% 01 02 03 04 05 06 Expanded capital base impacted ROSHF • pre significant items 15 • pre 2005 not AIFRS adjusted
Slide 16: NPAT analysis
Half year ended 31 March 2006 NPAT analysis 4 160 3 7 -6 150 -4 18 146 A$M -4 -1 140 130 128 120 1H05 Existing SLB Acquisitions QGC Interest Insurance Elders case Other 1H06 NPATBSI Businesses NPATBSI 9 EBIT up 13% 9 Sale and Leaseback 9 Record result for Mining Services and 9 Contribution from acqu
Slide 17: IPL divestment
IPL divestment • Rationale - less earnings volatility going forward - allows each entity to pursue an independent strategy • Orica capital management - capital projects relating to existing businesses - M&A across remaining businesses • Gross proceeds from sale $857M • After tax gain $399M (to be bo
Slide 18: Dyno acquisition - update
Dyno acquisition - update Integration progress to date: – 10 person integration team based in London – Appointed MD’s of EMEA & Latin America – No loss of customers from Dyno businesses – Safety performance maintained We remain confident of achieving synergy targets 18
Slide 19: Environmental issues – Botany Park
Environmental issues – Botany Park Site Information Foreshore Road • 100 hectare site, 10 km south of Sydney Southlands CBD • 3rd largest complex of its type in Australia • Site built in 1942 • Orica owns considerable surplus land at Botany including Southlands Blocks 1&2 (over 20 hectares) Boundary
Slide 20: Summary
Summary • Strong half year result despite weakness in some business platforms • Record Mining Services and Chemical Services result • Resilience to cost increases • Financial discipline and improved cashflow performance • Strong balance sheet capable of funding future growth A disciplined and consis
Slide 21: Soria
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Slide 22: Important notice
Important notice This presentation has been prepared by Orica Limited. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue or arrange to issue, securities or other financial products. The information contained in this presentati