Slide 1: Half Year Result Announcement
me a oo ae i Half Year Result Announcement 30 April 2007 ee G a
Slide 2: HY 2007 presentation outline
HY 2007 presentation outline 4)
Slide 3: Highlights
Half year ended 31 March 2007 ® Highlights onica Financial highlights + Sales Revenue — reported +4%, Underlying sales growth +17% EBIT +25% NPAT +39% EPS +21% Interim dividend up 10 cents to 36 cents per share ee we Operational highlights * Record result in Mining Services Integration of Dyno proce
Slide 4: Financial summary
Half year ended 31 March 2007 Financial summary 2 ORICA 2007 2006 % Change Results including significant items: NPAT including significant items A$M 210 123 71 Significant items after tax ASM 7 (23) Underlying Results: Sales Revenue ASM 2,702 2,599 4 EBIT (excluding significant items) ASM 346 276 25
Slide 5: Significant items
Half year ended 31 March 2007 Significant items (ASM) 2007 Legacy Issues Cockle Creek (NSW) Divestments Adhesives & Resins profit on sale Dyno Nobel Expenditure Integration costs Net financing expense TOTAL (after tax) 19 (12) (23) Note: Amounts subject to rounding
Slide 6: Shareholder scorecard
Half year ended 31 March 2007 Shareholder scorecard 2007 2006 % Change Results (before significant items) Earnings per share cents 60.1 49.5 21 Return on shareholders’ funds % 15.6 15.5 Results (after significant items) Earnings per share cents 62.4 41.7 50 Return on shareholders’ funds % 16.1 13.1
Slide 7: Orica's approach — value drivers
Orica’s approach — value drivers ORICA ay ie aN CREA a i fe. so yy Vegi STRATEGY
Slide 8: Orica — our culture
Orica — our culture e e SH&E Commercial Ownership - Working Capital - Supply chain improvement - Manufacturing efficiency - Active capital management Creative Customer Solutions - Customer driven - Technology Working Together ORICA
Slide 9: Orica's strategy
Orica’s strategy Sn Three key principles: * Market leadership * Earning the “right to grow” ¢ Growing “close to the core”
Slide 10: Growth and productivity
Half year ended 31 March 2007 Growth and productivity ORICA 2007 2006 Change A$M ASM A$M % Sales revenue 2,702 2,599 103 4.0 Variable costs 1,509 1,589 (80) (5.0) Gross margin 1,192 1,009 183 18.1 Gross marginisales % 44.1 38.8 Fixed costs (incl D&A) 876 766 #110 14.4 Fixed costs/gross margin % 73.5
Slide 11: Growth themes
Growth themes ¢ Mining Services — market volume growth, organic, geographic, acquisition, lateral * Chemical Services — Mining Chemicals, water treatment, Miex™, enzymes * Consumer Products — organic, Asia ¢ Chemnet — geographic expansion ORICA 11
Slide 12: Business performance, Cash flow, Balance sheet, Environmental update
Slide 13: Financial results
Half year ended 31 March 2007 Financial results ROSHF % ORICA + Pre significant items + Pre 2005 not AIFRS adjusted 13
Slide 14: Sales growth
Half year ended 31 March 2007 2 ORICA Sales growth (A$M) 2007 2006 $Change % Change Mining Services 1,506.5 1,134.2 372.3 33 Consumer Products 424.4 401.8 22.6 6 Chemical Services 229.7 231.3 (1.6) (1) Chemnet 469.5 504.9 (35.4) (7) Intersegment eliminations (43.9) (69.1) 25.2 (36) Underlying Sales
Slide 15: Sales bridge
Half year ended 31 March 2007 ® CHICA Sales ASM 3,200 5 3,100 4 116 3,000 5 312 2,900 4 2,800 5 2,702 2,700 5 (422) 4 = 2,600 4 2,500 + , HY06 Dyno Minova Mining Consumer Chem Divested Chemnet Blims | HY07 Sales Services Products Services Business Sales 15
Slide 16: EBIT growth
Half year ended 31 March 2007 ® EBIT growth (A$M) “ 2007 2006 $Change % Change Mining Services 245.2 150.9 94.3 62 Consumer Products 43.2 47.7 (4.5) (9) Chemical Services 32.0 31.5 0.5 2 Chemnet 32.3 28.7 3.6 13 Corporate Centre/Other Support Costs (24.5) (24.5) - - Underlying EBIT Growth 328.2 234.
Slide 17: NPAT analysis
Half year ended 31 March 2007 ® NPAT analysis ORICA ASM EBIT contribution 3004 ok, 2804 / NPAT increased 2604 , 39% 2404 220+ 2 1 203 200+ (10) 180-4 160-4 146 14044 / 1204 100- HYG6 Mining Dyno Minova OCP Chemnet Chem Divested Tax Yates Minority Interest HY07 NPAT Services. Sves Business Interest N
Slide 18: Mining Services
Mining Services 4) Sales $1,507M; EBIT $245M; Average Net Assets $2,213M ASM 450 18 300 8 400 16 | Co p40 zy i z [ssc] = 300] li2 # 250 a2), a ae lea {6) @ 250 40 < 5 200 4 8 bal aI 450 4 le @ 200. TF) 100 4 50 4 f 2 154 04 Ly 156: 2004 2005, 2006 2007 | | Mmmm ist Half EBIT Co 2nd Half EBT =< EBIT
Slide 19: Mining Services by geography
Mining Services by geography Australia/Asia 250 34 200 20 = 13 = 16 @ @ 150 4a & = 2065 @ 100 0 ob i 8 a 50 H 2 0 0 2004 2005 2006 2007 North America 90 40 80 x 70 5 2 = 60 roy 2 50 6 z = 5 40 a 20 > 10 0 0 2004 2005 2006 2007 Mmmm ist Half EBIT Ci 2nd Half EBIT ‘4st Half EBIT Margin Mmm istHalf EBI
Slide 20: Dyno performance
Dyno performance © EBIT (ASM) * Defined comprehensive list of projects to deliver synergies target. * Synergies at the end of March $29m. * Of the 700+ headcount reductions identified, over 500 had left the company by March 2007. * Non electronic manufacture has shifted from Troisdorf to Gyttorp, th
Slide 21: Dyno integration costs
Dyno integration costs 4) 2006 Actual 2007 Half Year Cumulative (ASM) Actual (A$M) | Actual (ASM) 45 - 45 Integration cost category FY2008 FY2009 * Project office costs relate to the integration team + Movement between 2006 actual costs and 2007 YTD costs are recognised in the financial statements a
Slide 22: Dyno — next steps
Dyno — next steps 2007 and beyond... Successful implementation of project plans to deliver AS9OM in synergies. Utilise IS manufacturing capacity at Gyttorp, Sweden following the decision to close Troisdorf, Germany. The business is on track to exit the Dyno Norwegian military business by 31 May 2007
Slide 23: Consumer Products
Consumer Products ORICA Sales $424M; EBIT $43M; Average Net Assets $218M ASM 4120 805 100 x v0 = 00 a e ia < < 604 5 60 = a Ee ty oO 4 40 @ 507 48 43 20 401 of 2004 2005 2006 2007 30+ MN st aif EBIT EEE Yates Restructure Impact 20-4 onda Ebi ea iar eer Morain Tnvee. — Picaic Volume Waring & Ew, Yato
Slide 24: Yates restructuring provision - $9.5M
Yates restructuring provision - $9.5M BENEFITS « Lower cost source of product « Qutsourcing manufacture of commodity products « Manufacturing and supply chain rationalisation * Sustainable benefit of cost savings « No change in product offering to customer base COSTS (A$M) Equipment leases 4.2 Plant
Slide 25: Chemical Services
Chemical Services & Sales $230M; EBIT $32M; Average Net Assets $382M ASM 80 16 404 70 44 3 60 t 12 z a4 & 50 40 g bE 40 Lg 3 32 32 & 30 pé oF 304 20 ba ow 10 2 25-4 0 it) 2004 2005 2006 2007 20- —— = [mmm {st Half EBIT 2nd Half EBT —— EBIT MARGIN Ear ochemeais MI Mpterare Wace, AAR Growth Impact Cos
Slide 26: Chemnet
Chemnet 2 ORICA Sales $470M; EBIT $32M; Average Net Assets $357M 90 12 80 0 40 = 60 + 8 50 & ré 40 i 30 +4 20 10 2 0 ) 2004 2005 2006 2007 mmm ist Half EBT 2nd Half EBIT—— EBIT MARGI EBIT MARGIN % ASM 454 i a 4 EZ 40 10 [ezezezs) 354 8) Pec) 22 a) 30] 29 254 20+ HYO6 Restructure Latin Profit Volume
Slide 27: Corporate centre and other support services
Corporate centre and other ry support services (A$M) EBIT 2007 2006 $ Change Corporate Centre (18.5) (17.7) (0.8) Other Support Costs (6.0) (6.8) 0.8 (24.5) (24.5) - Corporate Centre ¥ In line with last year Other Support Services ¥ Qenos doubtful debt provision reversal ($8M) xX Trade working capit
Slide 28: Cashflow
Half year ended 31 March 2007 Cashflow ASM 2007 2006 $ Change EBITDA 433 350 83 Net interest paid (47) (49) 2 Net tax paid (56) (51) (5) Trade working capital movement (76) (265) 189 Non trade working capital movement 2 (2) 4 Net operating cash flows 256 (17) 273 Net investing cash flows (984) (1,15
Slide 29: Operating cash conversion
Half year ended 31 March 2007 Operating cash conversion EBITDA Net working capital Sustenance capital Cash conversion Cash conversion percentage 2007 2006 433 350 (74) (267) (58) (103) 301 (20) 70% (5%) 29
Slide 30: Trade working capital
Trade working capital yD) ORICA ASM 14,1007 100 1,000- 9007 g75 8007 13 6 789 (276) —_ ag = (26) 700- March 06 Dyno Minova IPL/A&R Creditors Debtors inventory FX March 07 Two Divestment Movt Movt Movt Impact Two 30
Slide 31: Underlying trade working capital
Underlying trade working capital Rolling 12 Months TWC/Sales % 20.0 17.5 15.0 12.5 10.0 Sept Mar Sept Mar 05 ‘06 ‘06 ‘07 Underlying trade working capital/sales ratio 14.2% (pep 18.4%) 2 ORICA 31
Slide 32: Sustenance capital spend
Sustenance capital spend ry 160 120 2 140 100 § «120 = = 80 3 @ 100 © BG a a 80 60 8 g 60 40 & § 40 ' ‘S 2 20- ; 20 ¢ 2001 2002 2003 2004 2005 2006 2007 MB Sustenance =" % of Depreciation 32
Slide 33: Balance sheet
Half year ended 31 March 2007 Balance sheet (A$M) ome March Sept March 2007 2006 2006 Trade working capital 789 630 875 Net property, plant & equipment 1,664 1,603 1,774 Intangible assets 2,026 1,141 640 Other (liabilities)/assets (584) (405) 752 Net debt (1,233) (302) (1,423) Net Assets 2,662 2,668
Slide 34: Net debt and gearing
Net debt and gearing Net Debt (A$M) ~© ORICA 4,800- Target gearing range shaded 0 2 1,400 = o a o 1,2004 % wo J 1,000 3 = 8004 a = 6004 & 4007 2004 FY03 HY04 Fy04 HY05 FY05 HY06 FY06 HY07 Book Gearing 31.7% Adjusted Gearing 38.1% (hybrids notionally 50/50 debt & equity split) 34
Slide 35: Environmental provisions update
Environmental provisions update (A$M) ry . Carrying amount 30 September 2006 297 . Provisions made 1H07 5 - Padstow $4M - Whitesides Avenue $1M . Cash Payments made 1H07 (26) - Botany Groundwater $7M - HCB$12M - Seneca $4M - Other $3M * Additions through acquisition of Minova' 6 . Discounting / FX M
Slide 36: Environmental provisions
Environmental provisions ry 118 Total Environmental Provision * Botany Groundwater and HCB waste processing comprise the majority of Orica’s environmental provisions Minova and Dyno provisions part of acquisition accounting 36 Other includes $5M of provision discounting and foreign exchange impact
Slide 37: Summary
Summary ry Strong result despite softness in some business platforms Record Mining Services result + — Improved underlying result for Consumer Products Dyno integration on track Positive start by Minova Financial discipline and improved cashflow performance Strong balance sheet capable of funding fu
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Slide 39: Orica — the past months
Orica — the past 18 months roa * The business portfolio and strategic direction have been significantly re-shaped — active capital management ¢ The remaining business platforms will drive the next growth phase for Orica. 39
Slide 40: Acquisition of Minova
Acquisition of Minova 4) Rationale: - expand into a high growth niche market segment - adds further growth to Orica’s portfolio - Minova is a highly cash generative business * The acquisition meets Orica’s strategic criteria: - market leadership - grow “close to the core” - earning the “right to gro
Slide 41: EBIT contribution by business platform
EBIT‘ contribution by business platform March 2006 () Orica Mining Services 58% Orica Consumer Products 19% Chemnet Chemical Services 11% 12% 1 Excludes corporate costs 2 March 2006 EBIT excludes earnings from IPL 3. Minova earnings adjusted to reflect six months contribution 4 OCP excludes one-off
Slide 42: Gross sales by geography
Gross sales by geography 4) March 2006 () Australia 50% ape New Zealand 11% Asia 8% Latin America 8% North America 18% 1. March 2006 sales excludes IPL March 2007 Australia 44% New Zealand 8% Europe 13% North America Asia 15% 8% Latin America 12% 42
Slide 43: Summary
Summary 2 ORICA Market leadership in chosen businesses Strong financial discipline, strong returns on capital, ongoing earnings growth and less cyclicality Strong balance sheet capable of funding strategic growth opportunities and capital management 43
Slide 44: Outlook
Outlook va) Subject to global economic conditions, we expect group net profit (before significant items) in 2007, to be significantly higher than that reported in 2006, resulting from a full year contribution from the acquired Dyno businesses, benefits from the recently commissioned ammonium nitrate
Slide 45: Half Year Results Announcement
Billie ae Half Year Results | Announcement / 30 April 2007 a ae i
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Slide 47: Net interest expense
Net interest expense Net interest expense Comprising: Interest on net debt Less: capitalised interest Add : unwinding of discount on provisions Net interest expense ORICA 2007 2006 ASM ASM 54.6 55.6 48.9 60.4 - (7.9) 5.7 3.1 54.6 99.6 47
Slide 48: Interest on net debt
Interest on net debt va) ASM Net interest expense excluding funding associated with Minova ($896m! x 7.4%? for 6 months) 33.1 Interest on funding associated with Minova ($870m x 7.0% for 3 months) 15.8 Interest on net debt 48.9 1. This is approximately $550m higher than the average of the 30 Sep 200
Slide 49: Impact of Step-up Preference Security (SPS)
Impact of Step-up Preference Security x (SPS) Key Points SPS treated as 100% equity for financial reporting purposes SPS distributions are treated as dividends and NOT interest EPS calculation adjusted for SPS distributions on an after tax basis Rating agencies treat SPS as 50% equity / 50% debt
Slide 50: Impact of SPS — earnings per share
2 Impact of SPS — earnings per share oo, ASM Reported net profit from continuing operations 221.4 Less: Net profit attributable to minorities (11.0) After tax distributions to SPS holders () (16.7) Adjusted net profit 193.7 Weighted average ordinary shares on issue 310.4 Earnings per share cps 62.4
Slide 51: Impact of SPS — gearing
Impact of SPS — gearing (ASM) 4) Reported per Rating Accounts Agency Current borrowings 273.7 273.7 Non-current borrowings 1,212.9 1,212.9 SPS adjustment © - 250.0 Less: Cash (253.6) (253.6) Net Debt 1,233.0 1,483.0 Parent entity equity 2,601.4 2,601.4 Minority interests 61.0 61.0 SPS adjustment - (
Slide 52: Impact of SPS — interest cover
2 Impact of SPS — interest cover (A$M) — >= Reported per Rating Accounts Agency Financial expense 74.5 74.5 Financial income (19.9) (19.9) SPS distribution adjustment (7 - 9.4 Net borrowing costs 54.6 64.0 EBIT 345.6 345.6 Less Share of profits of associates (14.1) (14.1) Adjusted EBIT 331.5 331.5 I
Slide 53: Foreign currency - snapshot
Foreign currency - snapshot ry Material exposures include: 1. Offshore EBIT « North America * Europe * New Zealand « Latin America 2. Transactional Exposures * AUD/USD * USD/Latin American Region * USD/CAD * NZD/USD Net impact of a 1% move in exchange rates on a diversified basket of currencies is a