Orica Limited · ASX:ORI
Orica — Investor Presentation (July 2010)
51 slides from Orica's investor presentation, Jul 15, 2010
Slide 1: Minova International – 2010 Orica Investor Event
Minova International For personal use only 2010 Orica Investor Event Michael Reich – CEO 15 July, 2010 A Agenda d • Company Overview Michael Reich • Minova Tunnelling Marek Grocholewski • Minova Asia Pacific Africa Karen Stoffels • New Product Innovations Rob Hawker Quickbolt, Self Drilling Rock Bol
Slide 2: Today's Presenters
T d ’ Presenters Today’s P t For personal use only Marek Grocholewski Karen Stoffels Robert Hawker GM T Tunnelling lli GM Asia Pacific f Africa f Technology T h l M Manager Polish native, experienced Long term career in Extensive product civil engineer with in depth ICI/Orica group since 1986. exper
Slide 3: Minova Management Team and International Structure
Mi Minova Management M t Team T For personal use only Michael Reich Stuart Hutton David McKinnon Jim Earl CEO CFO GM HR & SH&E President & CEO Minova Nth America Marek Grocholewski Zining Mo Jan Petzold Karen Stoffels GM Tunnelling GM Ruichy Minova President & CEO GM Asia Pacific Africa China Minova
Slide 4: Minova Products
Products and Services For personal use only Business Model Growth drivers Mi Minova Products P d t Drilling Machine Hole Fixing Bolts Injection Chemicals Drill bits/rods Mech Shells or Resin Anchor system / plates & Mining Powders Minova’s products are essential i l ffor the h safe f MINOVA PRODUCT
Slide 5: Minova business model – key strengths
Minova business model – key strengths • Global leader in underground mining strata control – Large and comprehensive product range For personal use only – Most diversified by geography and end market – Well positioned in emerging markets – China, CIS – Ongoing investment into new plants in strategic
Slide 6: Mining and Tunnelling Growth Drivers
Mi i Mining Growth G th D Drivers i • Strata control products are not optional for underground mines and tunnels to operate For personal use only – need for p production efficiency y – compliance with mine safety requirements – intensity of product use • Usage g is linked to mine pproduction volumes
Slide 7: Strategy Framework
St t Strategy Framework F k To be the global leader in ground stabilisation systems to the underground mining and Strategy infrastructure markets through the provision of distinctly superior products and services For personal use only Key Elements • North America (grow core and expand into Canada) •
Slide 8: Minova's Business Evolution and Sites 2007
Minova’s Business Evolution Major acquisitions, investments and Greenfield start ups have significantly grown Minova’s global presences For personal use only Minova Acquisition 25% FiReP Excel Strata Control (AUS) MMS, Chile Canada entry 2007 2008 2008 2009 2009 2010 2010 Project Plus BWZ (Germany)
Slide 9: Minova Sites 2010
Minova Sites 2010 Geographic Expansion For personal use only Europe Carspach, France Carspach Africa USA Australia Birmensdorf, Switzerland Zilina, Slovak Republic Alrode, South Africa Kentucky Nowra Radvanice, Czech Republic Kemerovo, Russia Isando, South Africa Grand Junction Mackay Petrvald, Czec
Slide 10: Ruichy Minova - China
R i h Minova Ruichy Mi - China Chi • Largest and fastest growing coal market in the world 2.8 billion tonnes with ~90% of mines underground For personal use only • China’s mining g industry y is rapidly y consolidating, g increasing safety standards and seeking new technology to improve production e
Slide 11: Minova Technology
For personal use only Technology Minova Technology Centres of excellence • PhD Inorganic Chemistry • PhD Mining Engineering • Graduated at Academy of • Graduated at Silesian • Expert in PUR, silicate and • Recognised expert in mine Mining and Metallurgy in University of Technology in phenolic resin
Slide 12: Product development strategy
P d td Product development l t strategy t t Requires q the R Requires i th the generation of Nth America, Europe establishment ideas, develop- & APA of local ment of Develop new and Technical For personal use only concepts and ew novel technologies g & Product Support the global Ne applications (TPS
Slide 13: Project Plus Integration
For personal use only Project j Plus l g Integration • Project Plus remains a key component to Minova’s Minova s strategy • A dedicated Steering Committee continues to advise Mi Minova anddOOrica i managementt • Accountability for Project Plus sits regionally. Synergies are on track • Majority of co
Slide 14: Deliver the Promise
D li Deliver the th Promise P i For personal use only SH&E – Ensuring our future Working Together Commercial Ownership Creative Customer Solutions 27 Vision
Slide 15: Minova's Vision
Mi Minova’s ’ 10 Year Y Vision Vi i • Leading industry in SH&E performance – no fatalities • An employer attracting the “best people” For personal use only • R Recognisedi d as global l b l lleader d iin ground d supportt – mining and civils • Genuine global reach • Technology innovator and solution
Slide 16: Financial performance
Minova Sales $395m; EBIT $66m; Average Operating Net Assets $1,841m For personal use only EBIT 13% 9 Non-recurrence of prior period under- È Unfavourable impact from foreign recovery of steel input prices exchange 9 Continued penetration of the Chinese È Lower volumes due to subdued market market co
Slide 17: Minova Tunnelling
Minova Tunnelling For personal use only Marek Grocholewski G General l Manager M T Tunnelling lli Tunnelling Why a good fit to Minova • One step away from core mining business • Complementary to Minova’s mining products and services • Combination of chemicals, bolts and application services – superi
Slide 18: Tunnelling structure and market size
Mi Minova Tunnelling T lli Structure St t Minova International For personal use only Michael Reich GM Tunnelling Marek Grocholewski Europe Operational Application Asia Marketing 35 Market size and definition Global tunnel market in 2008: close to 6,800km MARKET SIZE: 6,797 km TYPE OF CONSTRUCTION Cu
Slide 19: Tunnelling investment and European opportunity
Tunnelling investment Total market trend to 2015 • The annual global tunnel market is forecast to continue to increase each For personal use only year providing Minova with excellent opportunities • Drivers for this trend are: – population growth particular in India, China and Asia – need for effici
Slide 20: Asian Tunnelling opportunity
A i Asian T Tunnelling lli opportunity t it • Asian tunnelling activity estimated at approximately 1,100 km per year For personal use only • Key K markets k t are China, Chi IIndia di and d JJapan followed by Hong Kong, Taiwan and Singapore • Minova has emerging and increasing presence in these mark
Slide 21: Tunnelling process
T Tunnelling lli process Time Frame Tunnelling project Local communities, governments. 5 years initiation For personal use only Consultant companies define tunnelling method, Tunnel ground consolidation requirements and emergency 2-3 years design procedures (important step for Minova to ensure that
Slide 22: Methods in Tunnelling
Methods in Tunnelling Close TBM Major water-stopping or consolidation Umbrella systems products in emergency cases (mostly Cement mortar silicate foams) For personal use only Anti-abrasion foams MINOVA PRODUCTS Tunnel foams Water-stopping Tunnels polymers injection chemicals (crack repairs) Products
Slide 23: Tunnelling Growth Strategy
Tunnelling Growth Strategy Europe • Mature European tunnelling regions keep focus on market share growth and market position For personal use only • Alps region strategy • Increase presence in south east Europe and the Middle East • Product extension, enter Geotechnic segment • Continue investment i
Slide 24: FiReP Solar Frame
FiReP Solar Frame A step out growth opportunity For personal use only • light weight • corrosion resistant • eas to install easy • special foundation y system 47 Solar Frame …moving ahead • Partners: Minova, FiReP and Helios (Czech) • Opportunity to leverage Minova’s fibre glass and grouting technol
Slide 25: Focus on Asia Tunnelling
F Focus on A Asia i TTunnelling lli • Japan with 350 km of tunnels in construction per year is the For personal use only biggest mature tunnelling market in the world • China with more than 500 km tunnels pper yyear in next ten years is the fastest growing emerging market worldwide • New Minova Chin
Slide 26: Product Development Technology Tunnelling
For personal use only Product Development Technology Tunnelling I Innovative ti sprayable bl membrane b 52
Slide 27: TSL – Thin sprayed liner (Tekflex)
TSL – The Th “Monolith” “M lith” • Waterproofed • Thermal and fire resistant For personal use only isolation 53 TSL – Thin sprayed liner (Tekflex) Product development for tunnelling • As structural element and as waterproofing structure • New dry spray version (formulation (f Dec 2009)) • Trials Hög
Slide 28: Case Studies – Velingonda Tunnel
For personal use only Case Studies Tunnelling I di – Velingonda India V li d Tunnel T l • Velingonda is an important water dam project in India • Problem: TBM shield blocked by loose rock and mud • Solution: Rock consolidation by injecting Geofoam Minova expert team supervised product application •
Slide 29: International and European tunnelling projects
I t International ti l tunnelling t lli projects j t DSD West Drainage Project – Hong Kong Bajos de Mina - Panama Problem: Bolting Problem: Loose volcanic rock Solution: Bolting with bolts and mesh Solution: Rock consolidation by injecting For personal use only Geofoam/Geoflex Jurong Rock cavern - S
Slide 30: European tunnelling projects – Ettendorfer Tunnel
European tunnelling projects Ettendorfer Tunnel – North Tube Heading Operation Due to the difficult ground conditions and low distance to the surface, special actions were required. In cooperation with Atlas Copco, Minova For personal use only offered new technical solution. N New umbrella b ll syst
Slide 31: Minova Asia Pacific Africa
Minova Asia Pacific Africa For personal use only Karen Stoffels G General l Manager M APA P Presentation t ti Outline O tli • APA Region • Recent Investments • South Africa • Africa • India • South East Asia 62
Slide 32: Minova APA Region and Purpose
Mi Minova APA Region R i • APA is close to 20% of Minova group’s turnover For personal use only • Region includes long established businesses such as Australia and South Africa and growth areas such as India and SE Asia Mining • Headquartered in Melbourne, Australia with manufacturing facilities in
Slide 33: APA Region – Coal and Hard Rock
APA Region R i - Coal C l South Australia India Africa For personal use only U’G Coal Prod (Approx) 100 140 50 (Annuall Milli (A Million Tonnes) T ) Mechanisation Fully Fully Emerging j Mining Major g Method Longwall g Room & Pillar Room & Pillar Minova Rock Bolts Yes No No Minova Resin Capsules Yes
Slide 34: Experienced APA management team
Experienced i d APA management team Greg Warren, GM Australia Rajiv Pandey, GM Minova India – Chemical Engineer – Science & Chemical background For personal use only – 23 years Orica experience – Previously Dow Corning – Extensive GM and – Extensive sales/ business consumer marketing development exp
Slide 35: Australian Coal Bolt Market Entry and South Africa
A Australian li Coal C l Bolt B l Market M k Entry E • Minova is the largest coal bolt manufacturer in the world For personal use only • the state of the art automated manufacturing technology now in Australia is the reference point for future expansions around the globe • Australia's broad inhouse
Slide 36: Minova Africa and India
Mi Minova Africa Af i • South Africa well established For personal use only business • Currently relatively WEST AFRICA low market • Underground g mining g is mainly yggold penetration in rest p • Mature mine region with increasing number of underground mines of Africa • Underground mines are hard r
Slide 37: Coal Mines India and Growth Opportunities
C l Mines Coal Mi India I di • Underground Coal Mines mainly located in central For personal use only and eastern India Minova’s • 80% of Coal Mines owned Resin by Coal India Capsule Plant • Continued increase in mechanised mining • Future Minova F Mi investments being considered in central eastern
Slide 38: SEA Mining and Business Imperatives
SEA Mining Mi i • Underground Hard Rock in SEA is approximately 15% of hard For personal use only rock p production which is mainly y Indonesia and Philippines • Minova resins well established, opportunity for other products such as rock bolts, water stopping and ventilation • Some opportunities in
Slide 39: New Product Innovation
Thank you For personal use only New Product Innovation “Translating ideas to Sales” Robert Hawker Mi Minova Australia A t li Technology T h l M Manager
Slide 40: New Product Innovation Examples
New Product Innovation Examples • Quickbolt For personal use only • Peter Gray (GSS) – Self Drilling Rock Bolt (SDRB) • Blasthole Lining – Blasthole Lining g Preservation 79 New Product Innovation “Quickbolt”
Slide 41: The evolution of roof bolting
Th evolution The l ti off rooff bolting b lti Minova Quickbolt 340 kN For personal use only Percussive g Drilling Innovattion GEWI bar GW 25 320 kN SDA Cable Bolt 360 kN 300 kN SN rebar HiltiOneste Minova 300 kN p 360 kN Onestep SN rebar Rotary 360 kN 160 kN drilling Percussive drilling 81 Mi Minova
Slide 42: Quickbolt concept
Q i kb lt conceptt Quickbolt • Integrates key Minova technology of bolts with resin capsules to enable single pass installation post hole For personal use only drilling • Developed for productivity improvements for drill/blast mining methods in bolted arched roadway support where rotary percussions
Slide 43: Trials and commercialisation
T i l and Trials d commercialisation i li ti • Initial 100 bolt trial in Germany’s deepest coal mine completed Jan 2010 For personal use only • Further trial completed with 100m off roadway supported using 1,900 Quickbolts • Further 2 2,000m 000m of development and 30 30,000 000 bolts used by end 20
Slide 44: GSS self drilling rock bolt system and concept
GSS self lf d drilling illi rock kbbolt l system • Hollow steel bolt with in built static mixer and resin valving system For personal use only • Reactive urea silicate dual component resin system • Off set drill chuck and resin injection head 87 GSS self lf d drilling illi rock kbbolt l concept • In
Slide 45: Cycle Times to Install SDRBs
C l Times Cycle Ti to t Install I t ll SDRBs SDRB For personal use only Film 10 24 27 3 Clip Set Bolt in Chuck F t t Fastest 10 22 10 2 Drilling Grouting Average 10 36 16 5 Nut Tensioning Slowest 10 77 39 8 0 50 100 150 Seconds Note: Time for conventional system is at least double in Coal 89 GSS – S
Slide 46: Self drilling rock bolt project stakeholders
Self drilling rock bolt Project stakeholders For personal use only ACARP Australian Coal Association Research Program 91 T i l and Trials d commercialisation i li ti • 60 bolts installed with surface trial applications to date • 60 bolt surface f trial for f ACARP C scheduled • 800 bolt underground
Slide 47: Blasthole Lining System
New Product Innovation For personal use only “Blasthole Lining System” Workingg Together g Bl th l lining Blasthole li i system t • Reactive urea silicate dual component resin system for blasthole support • Application nozzle and plural component high pressure pump • Underground mobile equipment and
Slide 48: Blasthole lining project concept
Bl th l lining Blasthole li i project j t conceptt • To line vertical blast holes of diameter 80-120mm with fast setting resin to eliminate blasthole blockage For personal use only prior to loading with explosive material • Production blastholes may remain open and unblasted for up to 12 months allo
Slide 49: Blasthole lining stakeholders and markets
Blasthole lining Project stakeholders For personal use only 97 A t li Australian and d global l b l markets k t • 7 million blasthole metres drilled ann annually all in A Australia stralia • Considering Sub level Cave and Block Cave operations market estimated at 2 million metres per year y • Global
Slide 50: Trials and commercialisation
T i l and Trials d commercialisation i li ti • Initial surface trials commenced 2008 to develop application techniques For personal use only • Three underground trials completed at Australia sublevel caving mine with 60 blastholes lined in total to date • Three month evaluation period following rece
Slide 51: Disclaimer
Di l i Disclaimer This presentation has been prepared by Orica Limited. Limited The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis