Orica Limited · ASX:ORI
Orica — Investor Presentation (July 2018)
13 slides from Orica's investor presentation, July 2018
Slide 1: Technology Investment
JULY 2018 TECHNOLOGY INVESTMENT ANGUS MELBOURNE – CHIEF COMMERCIAL OFFICER
Slide 2: Mining productivity has suffered greatly in recent years
Mining productivity has suffered greatly in recent years Since 2014, mining productivity has begun to reverse course with a gradual increase by limiting spending and improving labour productivity Significant room for improvement in the mining industry 2
Slide 3: Technology led productivity improvement
Technology led productivity improvement AT Kearney, Using Digital Technologies to Uncover Value in Mining, 2018 Wood Mackenzie, Thought Leadership – Digitalisation in the Energy and Natural Resource Sectors World Economic Forum, White Paper: Digital Transformation Initiative – Mining and Metals Indu
Slide 4: We have a strong track record of technology and innovation
We have a strong track record of technology and innovation 12 13 14 15 16 17 18 (Product improvement) ProTECT-e Blaster 3000 Minimaster™ (Next Generation) 4
Slide 5: Returns on technology investment
Returns on technology investment NT5: Revenue from new technology2 Sales >20% - Introduced NT5 KPI; revenue generated from 12% new technologies as a percentage of our total revenue - NT5 growth was 12% between FY16 and FY17 - NT5 has grown at >20% across all regions from FY17 to HY18 FY16 FY17 FY18
Slide 6: We are focused on three differentiated theses aligned with market demand
We are focused on three differentiated theses aligned with market demand Digitally enabled better blasting Blast Automation Product portfolio optimisation Unlocking customers Step-change in safety, Improved quality and agility productivity productivity and efficiency ENABLING TECHNOLOGIES SKU ration
Slide 7: Investment in technology
Investment in technology New technology investment threshold (IRR) > 30% 1. Understand the resource 2. Design for output 3. Drill and blast operations 4. Measured outcomes Hard Area (Advanced products) $2X+/Hole Soft Area (Conventional products) $1X/Hole 7
Slide 8: Digitally enabled better blasting
Digital solutions Digitally enabled better blasting BlastIQTM - Digital, cloud based platform - Reduce cost of drill and blast operations - Improve productivity - Facilitate regulatory compliance Investment thesis - Low initial revenue assumed, increasing as product matures - Go To Market strategy f
Slide 9: Digitally enabled better blasting
Bulkmaster 7 TM Digitally enabled better blasting Next generation MMUTM – Productivity minimises the assets and labour required for delivery service – Latest sensor and actuator technology automates the delivery process and formulation management – Seamless integration and operational hub of BlastIQ
Slide 10: Digitally enabled better blasting
Bulkmaster 7 TM Digitally enabled better blasting Commercialisation case study Operators Delivery Rate -15% +46% Assets Capacity -20% +51% Customer benefit– Integrated platform supported by BlastIQTM for better blasts Item Value Orica services Costs reduced by ~10% Customer operations Increased prod
Slide 11: Blast automation
WebGen TM World first wireless initiation system – Elimination of exposure to high risk activities Blast automation – Reduced rework and preparation – Faster charging cycles – Flexible blasting with greater reliability Investment thesis – Investment case considers direct revenue only but indirect re
Slide 12: Blast automation
Underground automation Unmanned loading vehicle Blast automation - Removing explosives personnel from the most dangerous underground locations - De-risking tunnel development operation doubling the rate of advance - Reducing delays and improving access to ore reserves Investment thesis - Customer tr
Slide 13: Questions?
QUESTIONS?