Orica Limited · ASX:ORI
Orica — Non-Deal Roadshow (March 2006)
25 slides from Orica's roadshow presentation, Mar 29, 2006
Slide 1: New Zealand Roadshow
. New Zealand Roadshow 29 March 2006 Graeme Liebelt Managing Director & CEO Frank Micallef Investor Relations Manager
Slide 2: Orica – Snapshot
Orica – Snapshot • Australian owned publicly listed company trading on the Australian Stock Exchange (ORI) • Market capitalisation of A$6.95bn* • Ranked in top 50 Australian companies based on market capitalisation • Operates in about 40 countries - 11,000 employees • Comprises five business platfor
Slide 3: Orica – What We Do
Orica – What We Do Mining Services Market Leadership • Commercial explosives plus blast management Leading Brands Chemical Services • Water treatment, mining and industrial chemicals and technology Privileged Businesses Assets united by Chemnet chemical • Niche chemical trading solutions Capable sci
Slide 4: Orica – Business Characteristics
Orica – Business Characteristics Mining Services Chemical Services • Global business • Largest Chemical business in • Largest commercial explosives Australia and New Zealand company in the world • Strong asset positions • Superior assets & technology • Leading technology • Complete product offering
Slide 5: Orica – Business Drivers
Orica – Business Drivers Mining Services Chemical Services • Economic activity • GDP • Country development • Weather • Power generation • International chemical prices • Mining volumes Consumer Products Chemnet • Discretionary income • Building activity • GDP • International chemical prices • Housin
Slide 6: Orica – Business Dimensions
Twelve Months Ended 30 September, 2005 Orica – Business Dimensions Sales Revenue EBIT Operating Net Assets Employees 0% 20% 40% 60% 80% 100% Mining Fertilisers OCP Chemnet Chemical Services 6
Slide 7: Orica – Sales by Region
Twelve Months Ended 30 September, 2005 Orica – Sales by Region 4% 7% 5% 13% 61% 10% Australia NZ North America Latin America Asia Europe 7
Slide 8: Orica’s Approach – Value Drivers
Orica’s Approach – Value Drivers 8
Slide 9: Orica’s Strategy
Orica’s Strategy Principles - Market leadership - Earning the “Right to Grow” - Growing “Close to the Core” ABOVE AVERAGE RETURNS TO SHAREHOLDERS 9
Slide 10: EBIT Performance of Existing Businesses
EBIT* Performance of Existing Businesses Past Performance Orica Today A$M 700 600 500 400 300 200 100 0 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 LESS CYCLICAL, HIGHER BASE & IMPROVING EARNINGS 10 * excluding corporate costs
Slide 11: Financial Summary
Year Ended 30 September FINANCIAL SUMMARY 2005 2004 2003 2002 2001 Results (before significant items) Earnings per share cents 122.7 119.0 97.2 86.0 22.5 Return on shareholders' funds % 23.2 23.1 19.6 18.0 4.5 Results (after significant items) Earnings per share cents 86.6 119.8 36.2 76.8 (70.0) Ret
Slide 12: Orica – Our Culture
Orica – Our Culture • SH&E • Commercial Ownership – Group Procurement – Supply Chain Improvement – Manufacturing Efficiency • Creative Customer Solutions – Customer Driven – Technology • Working Together DELIVER THE PROMISE 12
Slide 13: Supplementary Information
Supplementary Information 13
Slide 14: Relative performance - Materials
Share Price $A 2 6 10 14 18 22 26 26-Nov-01 18-Jan-02 12-Mar-02 6-May-02 26-Jun-02 15-Aug-02 4-Oct-02 25-Nov-02 17-Jan-03 11-Mar-03 5-May-03 25-Jun-03 14-Aug-03 3-Oct-03 24-Nov-03 Shareprice 16-Jan-04 9-Mar-04 30-Apr-04 22-Jun-04 11-Aug-04 Relative perf 30-Sep-04 19-Nov-04 13-Jan-05 7-Mar-05 FIX UP,
Slide 15: Transaction Structure
Transaction Structure Creative structure used to secure key growth assets 1. Macquarie consortium acquires 100% of Dyno Nobel in the first instance 1. 2. Macquarie consortium on-sells MACQUARIE European, Middle Eastern, African, CONSORTIUM Asian and Latin American ♦ North America businesses to Orica
Slide 16: Strategic & Financial Rationale
Strategic & Financial Rationale A clear and unique strategic fit for Orica Mining Services and a financially compelling case • Increased exposure to the resources & infrastructure sectors • Expansion of global footprint • OMS transforming acquisition with manageable risk • Earnings diversification f
Slide 17: Significant Cost Savings
Significant Cost Savings To be achieved from… EBIT cost savings by type EBIT cost savings by geography 17% 18% 24% 27% 8% 15% 43% 48% (27%) Rationalisation of administration (24%) Latin America (48%) Rationalisation / optimisation of plants (15%) Asia (43%) EMEA (8%) Improved logistics / purchasing
Slide 18: Orica Sites in New Zealand
Orica Sites in New Zealand AUCKLAND CHRISTCHURCH A&R A&R Chemnet * Chemnet Decorative Mining Services * NZ AUCKLAND Decorative MT Powders * TIMARU Selleys * Sites MAUNGANUI Chemnet Yates * MT MAUNGANUI A&R * * = Head Office LOWER HUTT Chemnet CHRISTCHURCH LOWER HUTT Decorative * TIMARU Chemnet 18
Slide 19: Orica NZ – Business Dimensions 2005
Orica NZ – Business Dimensions 2005 Business A$M Revenue 501 Profit before tax 61 Operational Businesses 7 Sites (inclusive of 15 trade stores) 36 Employees 660 19
Slide 20: Mining Services - overview
Mining Services - overview • Offers commercial explosives, initiating systems and advanced mining solutions to the mining quarrying and construction industries • The global Explosives market is currently estimated at ~$9.5bn • The market displays a mix of global and regional characteristics but dire
Slide 21: Consumer Products - overview
Consumer Products - overview • World class technology • 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 • Category development through innovation • Dist
Slide 22: Chemical Services - overview
Chemical Services - overview • Divided into three business units: • Watercare • Industrial Chemicals • Mining Chemicals • Strong asset position including state-of-the-art operating plants and a flexible manufacturing capability • Leading technology including MIEX® water treatment • Strong focus on S
Slide 23: Chemnet - overview
Chemnet - overview • 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 chai
Slide 24: Incitec Pivot - overview
Incitec Pivot - overview • Incitec Pivot is Australia’s largest manufacturer and distributor of fertiliser • Annual sales approximately 3 million TPA which translates into annual revenue greater than $1 billion • Strong asset positions with manufacturing plants that include Australia’s sole urea man
Slide 25: 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