Orica Limited · ASX:ORI
Orica — Merrill Lynch Australian Investor Conference 2005
17 slides from Orica's conference presentation, Jan 27, 2005
Slide 1: Merrill Lynch Australian Investor Conference 27 January 2005
Merrill Lynch Australian Investor Conference 27 January 2005
Slide 2: Orica – snapshot
Orica – snapshot • Australian owned publicly listed company trading on the Australian Stock Exchange (ORI) • Market capitalisation of A$5.3bn • Ranked in top 50 Australian companies based on market capitalisation • Operates in about 40 countries - 10,000+ employees • Comprises four business platform
Slide 3: Orica – what we do
Orica – what we do Mining Services Market • Commercial explosives plus blast Leadership management Leading Chemicals Businesses Brands • Niche chemical distribution, value add united by and niche manufacturing Privileged chemical sciences Assets Consumer Products • Paint, paint preparation, handyman
Slide 4: Orica – business dimensions in 2004
Orica – business dimensions in 2004 ORICA Sales Revenue $4.6 Bn $553M EBIT Operating Net $2.8 Bn Assets Employees 10,000+ 0% 20% 40% 60% 80% 100% Mining Fertilisers OCP Chemicals
Slide 5: Orica – business characteristics
Orica – business characteristics Mining Services Chemicals • Global business • Largest Chemical business in • Largest commercial explosives Australia and New Zealand company in the world • Strong asset positions • Superior assets & technology • Leading technology • Complete product offering • Cost a
Slide 6: Orica – business drivers
Orica – business drivers Mining Services Chemicals • Economic activity • GDP • Country development • Weather • Power generation • International chemical prices • Mining volumes Consumer Products Fertilisers • Discretionary income • Weather • GDP • Agricultural commodity prices • Housing renovation a
Slide 7: What are we aiming to do going forward
Orica - what are we aiming to do going forward • Orica is positioning to be the best performing science- based solutions company in the world through: – Market leadership - ‘profitable niches’: a business is far more likely to succeed from a leadership position. All Orica’s business enjoy market lea
Slide 8: Simple strategy, superior results
Orica – simple strategy, superior results Free cash applied to fund growth M&A Bolt on acquisitions and geographic expansion Capital Plant expansions that meet IRR 15% & Expenditure 18% RONA minimum Growth in Productivity = earnings Improvements Organic growth and productivity gains will generate In
Slide 9: Recent growth scorecard
Orica - recent growth scorecard A$M 2003 2004 2005 Total Geographic expansion 23 23 Plant expansion 57 124 181 Category expansion 45 45 Mergers and acquisitions 446 158 47 651 548 305 47 900 $900M funds committed to growth since 2003
Slide 10: EBIT performance of existing businesses
Orica – EBIT* performance of existing businesses Past Performance Orica Today A$M 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 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 BUSINESS IS NO LONGER DEEPLY CYCLICAL * excluding corporate costs
Slide 11: Recent acquisitions
Orica – recent acquisitions • Woods & Woods • Majority shareholding in Latin American chemicals business • Keith Harris Flavours and Fragrances Momentum Continues
Slide 12: Supplementary Information
Supplementary Information
Slide 13: Chemicals - overview
Chemicals - overview • Engages in the manufacture, trading and distribution of a wide range of chemicals, related products and value- adding services • Sales revenue in excess of A$1bn • Largest Chemicals business in Australasia • Strong asset position with manufacturing plants and supply chain infr
Slide 14: 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 15: Incitec Pivot - overview
Incitec Pivot - overview • Incitec Pivot is Australia’s largest manufacturer and distributor of fertiliser • Annual sales greater than 3 million TPA which translates into annual revenue greater than $1 billion • Strong asset positions with manufacturing plants that include Australia’s sole urea manu
Slide 16: 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 ~$9.5bn • Orica is the Market Leader in the global explosives market. Dyno Nobel is
Slide 17: Mining Services - growth in new regions
Mining Services - growth in new regions Orica Share 1bn A$ Explosive Market
Orica — Merrill Lynch Australian Investor Conference 2005 on 6ix