Slide 1: Full Year Results Announcement
Billie ae Full Year Results | Announcement | 13 November 2006 a ae i
Slide 2: FY 2006 presentation outline
FY 2006 presentation outline ry
Slide 3: Highlights
Year ended 30 September 2006 ® Highlights onica Financial highlights + Sales Revenue +5% * EBIT +9% * NPAT +12% * EPS +1% Operational highlights * Record result in Mining Services & Chemical Services * Improving cashflow performance + Integration of Dyno proceeding well + SH&E performance improved w
Slide 4: Financial summary
Year ended 30 September 2006 ® Financial summary —_ 2006 —-2005' ~=% Change Results including significant items: NPAT including significant items ASM 539 208 159 Significant items after tax ASM 159 (132) Underlying Results: Sales Revenue A$M 5,359 = 5,127 5 EBIT (excluding significant items) ASM 658
Slide 5: Significant items
Full year ended 30 September 2006 Significant items (ASM) Legacy issues Botany HCB Waste (NSW) Villawood (NSW) Cockle Creek (NSW) Botany Groundwater (NSW) Restructuring & Rationalisation Chemnet IPL Corporate Chemical Services Seneca (North America) Dyno Nobel income (expenditure) Integration costs
Slide 6: Shareholder scorecard
Year ended 30 September 2006 Shareholder scorecard 2006 2005 % Change Results (before significant items) Earnings per share cents 125.5 124.6 1 Return on shareholders' funds % 19.3 25.5 Results (after significant items) Earnings per share cents 177.8 76.3 133 Return on shareholders’ funds % 27.3 15.
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 & ° SH&E ¢ Commercial Ownership - Working Capital - Supply chain improvement - Manufacturing efficiency ¢ Creative Customer Solutions - Customer driven - Technology ¢« Working Together
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: Orica
ORICA 10
Slide 11: Financial results
Year ended 30 September 2006 Financial results ROSHF % ORICA + Pre significant items + Pre 2005 not AIFRS adjusted 11
Slide 12: EBIT performance
EBIT* performance tA Past Performance Orica Today EBIT SAM 1987 1988 4989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2064 2005 2006 12 * Excluding corporate costs
Slide 13: NPAT analysis
Year ended 30 September 2006 NPAT analysis ASM 420 400 380 360 340 320 300 340 ORICA 2005 Mining Chem Acq. Corp. Interest Chemnet OCP (PL Growth = Other 2006 NPAT NPAT Services* Services Business Initiatives (incl. Dyno} ¥ NPAT up 12% v Record result in Mining Services & Chemical Services ¥ Dyno int
Slide 14: Mining Services
Mining Services ORICA, Sales $2,621M; EBIT $412M; Average Net Assets $1,644M; RONA 25% 450 16 asm 400 | 600 260 | 7 8 = 300 | Fa 880 250 | * < 500 & 200 a 18 a 450 4 a 450 100 + 44 Ge 412 50 4 400 15} 0 : : 13 so | 340 2003 2004 2008 2006 300 Wm first half ebit_ —— second half edit —-EBIT MARGIN mse
Slide 15: Dyno performance
Dyno performance* yD) ORICA EBIT Category 2006 Actual (ASM) 1. Synergies banked in 2006 - A$12M - closure of Oslo head office - decision to relocate European |S manufacturing 2. Orica disposed of the Sasol (South Africa) and Tenagia Kemia (Malaysia) business. Both sold for multiples higher than the
Slide 16: Dyno integration costs
Dyno integration costs 4) Integration cost category 2006 Actual (ASM) + Largest asset write-off relates to closure of Troisdorf facility * Approximately 700 headcount reductions identified, principally functional and manufacturing roles. 180 employees had left the company by September 2006 * Project
Slide 17: Dyno integration — next steps
Dyno integration — next steps 4 2007 and beyond... * Successful implementation of project plans to deliver AS$90M in synergies + Integrate the management and financial systems of the two businesses in all countries * Expand IS manufacturing capacity at Gyttorp, Sweden following the decision to close
Slide 18: Consumer Products
Consumer Products ORICA Sales $785M; EBIT $97M; Average Net Assets $219M; RONA 44% 120 14 100 RS 2 = 20 136 g Fa & 60 = a E a a 40 12 wl 20 0 r r r "1 2003 2004 2005 2006 M@@mfirst half ebit Co second half edit =EBIT MARGIN 410 100. 90 80 304 2005 Net Pics Volume Efficiency Maiketingy OConror Other
Slide 19: Chemical Services
Chemical Services va) Sales $477M; EBIT $67M; Average Net Assets $380M; RONA 20%” 80 48 ASM 70 80 60 a 15 B50 eg < 40 < 70 = = SF 30 wi 86 20 " et 40 66 0 : 12 55 2003 2004 2005 2006 mmmfirst half ebit_ C™ second haif edit —-_EBIT MARGIN ° ar Net Price Volume Aluminates Forex Enzymes Other a v¥ Reco
Slide 20: Chemnet
Chemnet Sales $987M; EBIT $58M; Average Net Assets $376M; RONA 15% ORICA 90 10 80 70 8 =z 60 6 < 50 a 40 4 30 20 2 10 o : : : 0 2003 2004 2005 2006 mmm first half ebit C— second half ebit —=-EBIT MARGIN EBIT MARGIN % 50 @ Forex PortKembia Other Fixed 2006 cost reduction BIT 2005 Volume Asset EeIT Sa
Slide 21: Corporate centre and other support services
Corporate centre and other ry support services (A$M) 2006 2005 $ Change Corporate Centre (36.3) (35.9) (0.4) Other Support Costs Corporate initiatives (8.4) (26.5)* 18.1 Growth projects (6.0) (0) (6.0) (14.4) (26.5) 12.1 TOTAL (50.7) (62.4) 11.7 Corporate Centre Other Support Services ¥ Corporate co
Slide 22: Cashflow
Year ended 30 September 2006 Cashflow A$M EBITDA Net interest paid Net tax paid Disputed tax assessment Trade working capital Non-trade working capital Net operating cash flows Net investing cash flows Net financing cash flows TOTAL 2006 2005 %Change 815 741 10 (90) (82) (10) (102) (104) 2 - (105) (
Slide 23: Underlying trade working capital
Underlying trade working capital yD) ORICA ASM 800 4 750 700 5 82 _ 6504 . (45) 634 504 (32) 53 800 4 550 500 4 450 400 2005 TWEAAFRS Dyno fPL Underlying “Underlying Underlying 2096 TW (As Reparted) adj Debtors Inventory Creditors (As Reported} . Underlying working capital improvement of $24M . Unde
Slide 24: Sustenance capex
Sustenance capex Sustenance Spend A$M 160+ 140 4 120 4 100 + 2002 2003 2004 2005 2006 ME Sustenance meee % Of depn as % of depreciation 24
Slide 25: Balance sheet
Year ended 30 September 2006 Balance sheet (A$M) Trade working capital Net property, plant & equipment Net other assets Net debt Net Assets Orica shareholders’ equity Outside equity interests Equity Sept March Sept 2006 2006 2005 630 875 604 1,603 1,774 1,606 737 1,392 422 (302) (1,423) (1,112) 2,66
Slide 26: Net debt and gearing
Net debt and gearing Net Debt (A$M) Target gearing range 1,600 shaded FY03 HY04 FY04 HY05 FY05 HY06 « Book Gearing 10.2% 750 FY06 « Adjusted Gearing 18.4% (hybrids notionally 50/50 debt & equity split) « Pro forma book gearing post Minova acquisition 31% ORICA x D < = S o o 26
Slide 27: Environmental provisions update
Environmental provisions update ry . Carrying amount 30 September 2005 $186M * Provisions made 2006 $169M - HCB $70M - Seneca $31M - Villawood $33M - Cockle Creek $28M - Port Kembla $2M - Other $5M * Cash Payments made 2006 ($49M) - Botany Groundwater $30M - HCB $9M - Other $10M ° Reductions through
Slide 28: Summary
Summary 4 ORICA Strong result despite weakness in some business platforms + Record Mining Services and Chemical Services result Dyno integration on track . Financial discipline and improved cashflow performance Strong balance sheet capable of funding future growth
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Slide 30: Orica — the past twelve months
Orica — the past twelve months ry « The business portfolio and strategic direction have been significantly re-shaped ¢ The remaining business platforms will drive the next growth phase for Orica. 30
Slide 31: 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 g
Slide 32: EBIT contribution by business platform
EBIT‘ contribution by business platform 4) 2005 (A) 2006 (A)2* Orica Mining Services 51% Orica Mining Services Orica Incitec Pivot Orica Consumer Consumer Ltd 13% Products Products 13% 15% Chemical Services ch Minova Chemical Services 12% 9% emnet 11% 9% ° 8% 1. Excludes corporate costs 2. Assumes F
Slide 33: Gross sales by geography
Gross sales by geography 4) Other 5% A 7% 2. 2005 (A) Australia 60% sia _/ New Zealand Americas 9 10% 18% Assumes FY06 annualised revenue contribution from Dyno Includes Minova CY2006F Sales 2006 (A)*2 Australia 48% 12% % Americas Asia 26% 71% New Zealand 7% 33
Slide 34: 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 34
Slide 35: Outlook
Outlook va) Subject to global economic conditions, group net profit before significant items in 2007, is expected to be higher than that reported in 2006, as we look forward to a full year contribution from the acquired Dyno businesses and recently commissioned ammonium nitrate expansion at Yarwun,
Slide 36: Full Year Results Announcement
Billie ae Full Year Results | Announcement | 13 November 2006 a ae i
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Slide 38: Foreign currency - sensitivity
Foreign currency - sensitivity 4) Orica has a net exposure to an appreciating AUD. As a guide: Every one cent movement in the USD/AUD exchange rate will impact EBIT by approximately A$1.6M" * Does not included Minova 38
Slide 39: A-IFRS FY 2005 (pcp) reconciliation
A-IFRS FY 2005 (pcp) reconciliation 4 Year Ended 30 September 2005 AGAAP Adjustments AIFRS $M $M $M Sales Revenue 5,127 5,127 Share Based Payments (11.6) Goodwill amortisation 35.5 Other expenses (1.0) Share of associates’ net profit/(loss) 0.8 equity accounted EBIT 577.2 23.7 600.9 Interest Expense
Slide 40: Efficiency - cost productivity
Year ended 30 September 2006 Efficiency - cost productivity Sales revenue Variable costs Gross margin Gross marginisales % Fixed costs (incl D&A) Fixed costs/gross margin % Whole of cost bar WOCBisales % 2006 $M 5,359 3,234 2,125 39.7 1,547 72.8 4,781 89.2 2005 $M 5,127 3,151 1,976 98.5 1,445 73.1 4
Slide 41: Efficiency — capital productivity
Year Ended 30 September 2006 Efficiency — capital productivity 2006 2005 Disciplined Capital Management TWC / Sales % 11.8 11.8 Inventory Turns (times) 5.6 3.8 Sales/Operating Net Assets 1.7 1.8 Sustenance as % of Depreciation 101.7 108.0 Expansion Capex ($M) 215 214 M&A Activity ($M) Acquisitions 9
Slide 42: Mining Services by geography
Mining Services by geography” 2 ORICA Australia/Asia North America 250 22 90 2 80 200 aM z 70 z = 6 EB 60 9S Z 150 2 & = 50 Z 5 2 E40 = ao E iad E © 100 19 5 Ww 30 a 50 18 10 i) 7 Ot a a pI 2003 «2004 «= 2005 2006 2003 2004 «2005-2006 Mmm istHafEBIT = (12nd Half EBIT = —— EBIT Margin MMMM istHalfEBI
Slide 43: Environmental provisions
Environmental provisions * Botany groundwater and HCB waste processing comprise the majority of Orica’s environmental provisions 4. Dyno provisions part of acquisition accounting 43