Orica Limited · ASX:ORI
Orica — Investor Day (March 2025)
63 slides from Orica's investor day presentation, Mar 12, 2025
Slide 1: 2025 Investor Day
2025 INVESTOR DAY 12 MARCH 2025
Slide 2: Disclaimer
DISCLAIMER This investor presentation (Presentation) is dated 12 March 2025 and has been prepared by Orica Limited (ABN 24 004 145 868) (Orica). This Presentation is for information purposes only and is in summary form. It should be read in conjunction with Orica’s most recent financial report and O
Slide 3: Agenda
AGENDA 0900 – 0930 Registration 0930 – 0935 Welcome Delphine Cassidy Chief Communications Officer 0935 – 0955 Strategy & business update Sanjeev Gandhi Managing Director & Chief Executive Officer 0955 – 1015 Capital management James Crough Chief Financial Officer 1015 – 1035 Specialty mining chemica
Slide 4: Presenters
PRESENTERS SANJEEV GANDHI JAMES CROUGH DELPHINE CASSIDY Managing Director and Chief Financial Officer Chief Communications Officer Chief Executive Officer ANGUS MELBOURNE GERMÁN MORALES RACHAEL SANDEL ANDREW STEWART President – Orica Digital Solutions President – Australia Pacific & Chief Informatio
Slide 5: Business Update
BUSINESS UPDATE Sanjeev Gandhi Managing Director and Chief Executive Officer 2025 INVESTOR DAY 5
Slide 6: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT FOCUS AREAS AND HIGHLIGHTS • Turnarounds completed with no major safety or environmental incidents • Continued relentless focus on fatality prevention through application of Major Hazard Management Program • Targeted focus on reduction of collision related events • P
Slide 7: Business Update: Stronger First Half EBIT Expected
BUSINESS UPDATE STRONGER FIRST HALF EBIT EXPECTED STRONG NAVIGATING PERFORMANCE FINANCIAL TURN AROUND ACQUISITIONS GEOPOLITICAL MOMENTUM UPDATES DELIVERY LANDSCAPE CONTINUES • First half EBIT expected to • Individually significant items • Planned Winnemucca Plant • Integration of Cyanco and • Active
Slide 8: Strategy Overview
STRATEGY OVERVIEW Sanjeev Gandhi Managing Director and Chief Executive Officer 2025 INVESTOR DAY 8
Slide 9: Our Strategy
OUR STRATEGY 2025 INVESTOR DAY 9
Slide 10: Successfully Executing on Strategic Targets
STRATEGIC TARGETS SUCCESSFULLY EXECUTING ON STRATEGIC TARGETS 2025 STRATEGIC TARGETS progress Pursue organic growth from the core Accelerate adoption of innovative blasting technologies and digital solutions, both upstream and downstream Ongoing Optimise manufacturing and supply chains Grow presence
Slide 11: Towards Our Aspiration of 50% of Earnings from 'Beyond Blasting'
TOWARDS OUR ASPIRATION OF 50% OF EARNINGS FROM ‘BEYOND BLASTING’ ORICA’S ‘BEYOND BLASTING’ SEGMENTS ARE WELL …WITH A CLEAR STRATEGIC FOCUS ON POSITIONED FOR STRONG GROWTH IN 2025 AND BEYOND… ACHIEVING THE ASPIRATION Illustrative EBIT to meet aspiration (%) ‘Beyond blasting’ mid term target annual av
Slide 12: Capital Management
Change image CAPITAL MANAGEMENT James Crough Chief Financial Officer 2025 INVESTOR DAY 12
Slide 13: Capital Management Strategy
CAPITAL MANAGEMENT STRATEGY STRUCTURED APPROACH TO EFFECTIVELY MANAGE CAPITAL RESOURCES CORE PILLARS REVIEW OBJECTIVES CAPITAL SOURCING Ensure capital management approach aligns Securing the necessary financial resources to fund operations, with best practice investments and growth initiatives. Enab
Slide 14: Orica's Capital Management Framework
ORICA’S CAPITAL MANAGEMENT FRAMEWORK Resilient through-cycle operating performance Operating Efficiency & Capital Productivity 1 - Strong Cash Generation - Asset Efficiency - Working Capital Efficiency Net Operating Cash Flow Prioritised capital allocation for Sustainability capital to support Organ
Slide 15: Resilient Operating Performance with Disciplined Investment
RESILIENT OPERATING PERFORMANCE 1 WITH DISCIPLINED INVESTMENT CONTINUED IMPROVED QUALITY OF EARNINGS … WITH DISCIPLINED MANAGEMENT OF TWC DRIVING CASH GENERATION… TOTAL CYCLE DAYS1 DAYS INVENTORY HELD1 EBITDA (A$M) OPERATING CASH FLOW (A$M) 61 64 60 63 64 63 CAGR 13% 2022 2023 2024 2022 2023 2024 12
Slide 16: Prioritised Capital Allocation Against Risk Adjusted Hurdle Rates
PRIORITISED CAPITAL ALLOCATION 1 AGAINST RISK ADJUSTED HURDLE RATES TARGETED AND CONTROLLED INVESTMENT… ….UNDERPINNING PRODUCTION EXCELLENCE AND ENABLING KEY OPERATIONAL INVESTMENTS CAPITAL EXPENDITURE (A$M)1 6 23 37 2025 spend (incl. 163 Acquisitions) 36 142 expected to be 124 broadly in line with
Slide 17: Strong Balance Sheet Aligning to Best Practice Metrics
STRONG BALANCE SHEET 2 ALIGNING TO BEST PRACTICE METRICS LEVERAGE1 TARGET RANGE OF 1.25X TO 2.00X DIVIDEND PAYOUT RATIO OF 40% TO 70% OF UNDERLYING EARNINGS TO BE MAINTAINED 11 DIVIDEND PER ORDINARY SHARE (CPS) & PAYOUT RATIO (%) 10.5 Leverage 56% 10 1.25x - 2.00x 53% 47.0c 43.0c WACC (%) 48% 9.5 3
Slide 18: Efficient Capital & Portfolio Management
EFFICIENT CAPITAL & PORTFOLIO MANAGEMENT 3 THROUGH BALANCING GROWTH INVESTMENT AND CAPITAL MANAGEMENT INITIATIVES Strategic investments, acquisitions & disposals Share buy backs (on market) subject to risk adjusted hurdle rates above pre-tax Special Dividends (franked subject to availability) WACC O
Slide 19: Capital Management Providing Clarity and Transparency
CAPITAL MANAGEMENT PROVIDING CLARITY AND TRANSPARENCY UPDATED CAPITAL MANAGEMENT FRAMEWORK WITH KEY INITIATIVES TO DRIVE INVESTOR VALUE DIVIDEND POLICY MAINTAINED ADOPTION OF LEVERAGE TARGET RANGE ON-MARKET SHARE BUY-BACK ANNOUNCED 2025 INVESTOR DAY 19
Slide 20: Specialty Mining Chemicals
SPECIALTY MINING CHEMICALS Andrew Stewart President – Specialty Mining Chemicals 2025 INVESTOR DAY 20
Slide 21: Leading Global and Integrated Sodium Cyanide Provider
LEADING GLOBAL AND INTEGRATED SODIUM CYANIDE PROVIDER Extensive manufacturing and distribution network • Largest global sodium cyanide producer dedicated to mining • Strategic manufacturing locations to best serve onshore and seaborne gold markets • Transfer station network in key gold mining regio
Slide 22: Cyanco Integration Update
CYANCO INTEGRATION UPDATE SYNERGY DELIVERY AHEAD OF PLAN SAFETY MANAGEMENT MANUFACTURING OPERATING MODEL IT AND CYBER SECURITY SYSTEM EXCELLENCE Orica’s safety system implemented Maintenance and safety upgrade on Fully integrated across business Orica’s IT and Cyber Security Plant 1 at Winnemucca co
Slide 23: Strong Fundamentals for Gold Industry
STRONG FUNDAMENTALS FOR GOLD INDUSTRY RESILIENT TO ECONOMIC STRONG DEMAND EXPECTED TO MINE DEPLETION CONSTRAINING DOWNTURNS CONTINUE FUTURE SUPPLY Gold prices remains a stable counter-cyclical Gold has become the world’s second largest reserve Significant mine development required to maintain commod
Slide 24: Our Differentiated Offering Gives Us a Platform to Grow
OUR DIFFERENTIATED OFFERING GIVES US A PLATFORM TO GROW TECHNOLOGY & SERVICES IN LEACHING TO INCREASE CUSTOMER SAFETY, PRODUCTIVITY AND GOLD RECOVERY Analysers Detox and Optimisation Real-time monitoring Process design FULL PRODUCT OFFERING LEADS TO Sodium cyanide optimisation Sodium cyanide forecas
Slide 25: Key Growth Drivers and Priorities
KEY GROWTH DRIVERS AND PRIORITIES FULLY UNLOCK ADVANTAGED ASSET LOCATIONS • Successful completion of Winnemucca plant upgrade • Fully leverage Yarwun, providing sourcing flexibility • Potential future opportunities for debottlenecking capacity at all three assets OPTIMISE THE PORTFOLIO • Capture val
Slide 26: Blasting Solutions
BLASTING SOLUTIONS Germán Morales President – Australia Pacific & Sustainability 2025 INVESTOR DAY 26
Slide 27: Unique Global Footprint
UNIQUE GLOBAL FOOTPRINT UNMATCHTED CAPABILITY AND EXPERTISE 150 years of expertise Customers in more than 100 countries EBS Head Office production in Regional Head Office all regions Customer Presence Monitoring Centre Commitment Discrete Manufacturing for Initiating Systems to safety and Packaged E
Slide 28: Market Trends: Outlook Across Key Commodities
MARKET TRENDS OUTLOOK ACROSS KEY COMMODITIES MATERIAL MOVED ORICA REVENUE BY COMMODITY DEMAND REMAINS POSITIVE (CAGR% 2025-30) • Strong outlook for key commodities Global1 • Business diversified by region and commodity with increased Commodity (exChina/Russia) Reduced exposure to high growth commodi
Slide 29: Solving Increasing Customer Challenges with New Technology
SOLVING INCREASING CUSTOMER CHALLENGES WITH NEW AND INNOVATIVE TECHNOLOGY Increasing labour costs Push for productivity and efficiency improvement is being magnified as customers face increases Supply chain costs increasing to Total Cost of Ownership Fuel shortages and rising energy prices Reducing
Slide 30: Unmatched Technology Offering Delivering Value to Customers
UNMATCHED TECHNOLOGY OFFERING DELIVERING VALUE TO CUSTOMERS CORE BLASTING TECHNOLOGIES SUPPORTED BY DIGITAL SOLUTIONS UP AND DOWN THE VALUE CHAIN OREBODY INTELLIGENCE BLAST DESIGN AND EXECUTION BLASTING SOLUTIONS GEOSOLUTIONS AXIS MINING DESIGN FOR 4D BULK FORTIS RHINO WIREBMR TECHNOLOGY FRAGTRACK B
Slide 31: Unmatched Technology Offering Delivering Value to Customers
UNMATCHED TECHOLOGY OFFERING DELIVERING VALUE TO CUSTOMERS 4DTM BULK SYSTEMS …PROVEN RESULTS AT CUSTOMER SITES 4D for underground mining operations expands the range of energy available to blast designers. • Average stope recovery increased up to 95% in stopes that were fully 4D uses a modified deli
Slide 32: Unmatched Technology Offering: Value to Orica
UNMATCHED TECHNOLOGY OFFERING VALUE TO ORICA DELIVERING VALUE TO CUSTOMERS… …INCREASES DEMAND FOR ORICA PREMIUM PRODUCTS AND SERVICES “4D system reduced the average bulk WebGenTM volume (units) 4DTM volume (tonnes) strength of explosives by 20% and reduced the overall powder factor by 12% compared t
Slide 33: Key Growth Drivers and Priorities
KEY GROWTH DRIVERS AND PRIORITIES UNIQUE BLASTING PRODUCTS & TECHNOLOGIES • Higher energy and enhanced control for deeper and harder rock operations • Helping customers achieve safer, more efficient and sustainable operations with best-in-class technical support MANUFACTURING AND SUPPLY NETWORK • Co
Slide 34: Digital Solutions
DIGITAL SOLUTIONS Angus Melbourne President – Orica Digital Solutions & Chief Technology Officer 2025 INVESTOR DAY 34
Slide 35: Digital Solutions Delivering Value in Growth Markets
DIGITAL SOLUTIONS DELIVERING VALUE IN GROWTH MARKETS OREBODY INTELLIGENCE BLAST DESIGN AND EXECUTION GEOSOLUTIONS Real-time in-situ characterisation of orebodies, Digitising On-Bench operations, optimising blasting Real-time geotechnical data and insights to deliver step enabling connected workflows
Slide 36: Growing Digital Solutions Business with Global Reach
GROWING DIGITAL SOLUTIONS BUSINESS WITH GLOBAL REACH 400+ sites and growing Integrating workflows from orebody definition to mining operations, processing and monitoring Technology Centre Digital Solutions presence 1,000+ employees Monitoring Centre globally Manufacturing Centre Customer presence 20
Slide 37: Comprehensive Suite of Industry Leading Digital Technologies
COMPREHENSIVE SUITE OF INDUSTRY LEADING DIGITAL TECHNOLOGIES THAT SPAN THE VALUE CHAIN OREBODY INTELLIGENCE BLAST DESIGN AND EXECUTION BLASTING SOLUTIONS GEOSOLUTIONS AXIS MINING DESIGN FOR 4D BULK FORTIS RHINO WIREBMR TECHNOLOGY FRAGTRACK BLASTIQ OUTCOME SYSTEMS PROTECT BULKMASTER GROUNDPROBE 3VG M
Slide 38: Terra Insights Integration Update
TERRA INSIGHTS INTEGRATION UPDATE WELL PROGRESSED, OPTIMISATION COMMENCED COMMERCIAL SHES CYBER SECURITY FINANCE & ACCOUNTS OPTIMISATION Commercial excellence initiatives Risk assessment and remediation Cyber security risk remediation Systems integrated. Focus now on commenced with cross selling pla
Slide 39: Unrivalled Position in Digital Solutions
UNRIVALLED POSITION IN DIGITAL SOLUTIONS ENABLING GO TO MARKET STRATEGY BLAST DESIGN OREBODY INTELLIGENCE BLASTING SOLUTIONS GEOSOLUTIONS AND EXECUTION ORICA DIGITAL OPEN, SECURE AND CONNECTED SOLUTIONS SPANS THE Equipment OEMS ENTIRE VALUE Resource definition and mining technologies CHAIN Explorati
Slide 40: Digital Technologies Reinforcing the Core
DEMONSTRATED EXAMPLE OF DIGITAL TECHNOLOGIES REINFORCING THE CORE Integrating orebody intelligence to blasting workflows… …significantly improves downstream outcomes “We have been able to interpret the compressive strength of the rock while drilling each hole and adjust loading designs” “We managed
Slide 41: Integrated Monitoring: Informed Decision-Making and Risk Management
INTEGRATED MONITORING: INFORMED DECISION-MAKING AND RISK MANAGEMENT 3VGEOMATICS / GROUNDPROBE WITH PROVEN RESULTS AT CUSTOMER SITES Comprehensive monitoring of a gold mining company’s global portfolio of tailings dams across EMEA, LATAM, and AUSPAC • Enhanced Safety: early detection of potential ris
Slide 42: Key Growth Drivers and Priorities: Digital Solutions
KEY GROWTH DRIVERS AND PRIORITIES DIGITAL SOLUTIONS LEVERAGE THE CORE • Increasing uptake across existing channels and geographies GROW RECURRING REVENUE • Continue to drive development and uptake of software and subscription-based services CONTINUE TO DRIVE NEXT GENERATION SOLUTIONS • Continued dev
Slide 43: Leveraging AI Across Orica
LEVERAGING AI ACROSS ORICA Rachel Sandel Chief Information Officer 2025 INVESTOR DAY 43
Slide 44: Orica Is Uniquely Positioned to Benefit from AI
ORICA IS UNIQUELY POSTIONED TO BENEFIT FROM AI 01 Information Technology (IT) foundations Modernised SAP to unlock AI capabilities. People, culture and governance 02 Global Business Services enables centralised support at scale. Rapidly established AI team leveraging pre-existing expertise. 03 The r
Slide 45: Pillar 1: Information Technology Foundations
PILLAR 1: INFORMATION TECHNOLOGY FOUNDATIONS MODERNISED IT FOUNDATIONS, SECURE BY DESIGN Orica's modernisation efforts across enterprise technology has enabled higher levels of efficiency, agility and business productivity: Asset Commercial Management • Single SAP platform: standardised and centrali
Slide 46: Pillar 1: Information Technology Foundations
PILLAR 1: INFORMATION TECHNOLOGY FOUNDATIONS MODERN TECHNOLOGY ENABLING AI USE CASE: AI IN DEMAND PLANNING Demand Planning • Orica’s investment in SAP S4/HANA has brought together data from across the supply chain. Supply • This single view of where inventory is, what customers have and what Plannin
Slide 47: Pillar 2: People, Culture and Governance
PILLAR 2: PEOPLE, CULTURE AND GOVERNANCE ORICA HAS RICH CULTURE OF TECHNOLOGY AND . . . AND HAS BROUGHT KEY CAPABILITIES INNOVATION . . . TOGETHER IT Talent and SAP Centre of Excellence (CoE): Accessing IT skills in global resource pools with established SAP CoE in India. Orica’s Global Business Ser
Slide 48: Pillar 3: The Right Partnerships
PILLAR 3: THE RIGHT PARTNERSHIPS USE CASE: GENERATIVE AI AMPLIFYING OUR CAPABILITIES ~3 hours per month saved per user in pilot roll out Technology partnerships enhance our abilities and speed. B u Established large network of partners enhancing in-house y capabilities, including: 97% tickets resolv
Slide 49: Pillar 4: Leveraging Unique Data and Technology
PILLAR 4: LEVERAGING UNIQUE DATA AND TECHNOLOGY USE CASE: MACHINE VISION AI SAFETY SYSTEMS BRINGING IT TOGETHER TO CREATE VALUE Case study: Orica’s Machine Vision AI Safety System has been trained using data from global on-bench operations to address a major global hazard. The system: • Leverages th
Slide 50: Orica Is Uniquely Placed to Realise Meaningful Value
ORICA IS UNIQUELY PLACED TO REALISE MEANINGFUL VALUE FROM OUR UNIQUE DATA, TECHNOLOGY, PEOPLE AND PARTNERSHIPS EDIT FOOTER TO ADD PRESENTATION TITLE TO ALL PAGES 50
Slide 51: Closing Comments
CLOSING COMMENTS Sanjeev Gandhi Managing Director and Chief Executive Officer 2025 INVESTOR DAY 51
Slide 52: Our Investment Proposition
OUR INVESTMENT PROPOSITION DELIVERING VALUE TO OUR SHAREHOLDERS OUR PROMISE Operating responsibly together with our people, partners, customers Safety is, and will We are the global We are delivering remain our number leader in mining and civil success through one priority construction markets execu
Slide 53: Supplementary Information
SUPPLEMENTARY INFORMATION 2025 INVESTOR DAY 53
Slide 54: Product Suite
Doric PRODUCT SUITE ae 12 MARCH 2025
Slide 55: Orebody Intelligence
OREBODY INTELLIGENCE ENABLES CUSTOMERS TO GAIN ACCURATE INSIGHTS INTO THEIR OREBODIES FROM THE OUTSET, INFORMING DECISION-MAKING THROUGHOUT THE VALUE CHAIN Specialised geospatial tools and instruments for Downhole geophysics tool that measures the water Autonomous drillstring-mounted geophysical sen
Slide 56: Blast Design & Execution
BLAST DESIGN & EXECUTION PROVIDE END-TO-END BENCHMARKS AND INSIGHTS AT EVERY STAGE OF THE BLASTING PROCESS. WHETHER DEPLOYED TOGETHER OR INDIVIDUALLY, OUR ADVANCED SOLUTIONS ENSURE GREATER PRECISION AND PREDICTABILITY FOR SURFACE AND UNDERGROUND MINING, QUARRYING AND CONSTRUCTION Cloud-based digital
Slide 57: Blast Design & Execution
BLAST DESIGN & EXECUTION PROVIDE END-TO-END BENCHMARKS AND INSIGHTS AT EVERY STAGE OF THE BLASTING PROCESS. WHETHER DEPLOYED TOGETHER OR INDIVIDUALLY, OUR ADVANCED SOLUTIONS ENSURE GREATER PRECISION AND PREDICTABILITY FOR SURFACE AND UNDERGROUND MINING, QUARRYING AND CONSTRUCTION Industry first, fra
Slide 58: Blasting Solutions
BLASTING SOLUTIONS GLOBAL LEADER IN BLASTING SERVICES, PROVIDING TRUSTED AND PROVEN EXPERTISE IN SURFACE AND UNDERGROUND MINING AND CIVIL INFRASTRUCTURE. 4D Bulk Systems seamlessly match explosive energy WebGen is a world leading, truly wireless initiating Electronic Blasting Systems (EBS), like the
Slide 59: Blasting Solutions
BLASTING SOLUTIONS GLOBAL LEADER IN BLASTING SERVICES, PROVIDING TRUSTED AND PROVEN EXPERTISE IN SURFACE AND UNDERGROUND MINING AND CIVIL INFRASTRUCTURE. Cyclo is an automated processing system that recycles Bulkmaster has long been at the leading edge of Avatel is the first fully mechanised, semi-a
Slide 60: Geosolutions
GEOSOLUTIONS DOWNSTREAM MULTIDIMENSIONAL GEOTECHNICAL AND GEOSPATIAL AND STRUCTURAL MONITORING FOR MINING AND CIVIL INFRASTRUCTURE OPERATIONS, ALLOWING FOR SUPERIOR CONFIDENCE IN RISK ASSESSMENT AND DECISION MAKING BY PROVIDING CRITICAL DATA AND INSIGHTS. Specialises in real-time solutions for measu
Slide 61: Geosolutions
GEOSOLUTIONS GEOTECHNICAL, GEOSPATIAL AND STRUCTURAL MONITORING FOR MINING AND CIVIL INFRASTRUCTURE OPERATIONS. PROVIDING CRITICAL INTELLIGENCE AND ACTIONABLE INSIGHTS SO CUSTOMERS CAN MAKE BETTER, RISK-INFORMED DECISIONS TO MANAGE THEIR ASSETS SAFELY AND EFFECTIVELY AND MAXIMISE PRODUCTIVITY. Monit
Slide 62: Definitions
DEFINITIONS Term Definition CAGR Compound annual growth rate, reported as a percentage across specified time period Capital expenditure Comprises spend on property, plant and equipment and intangible assets on an accruals basis for 2020 onwards and on a cash basis in prior years Dividend per share
Slide 63: Contact: Delphine Cassidy, Chief Communications Officer
Contact: Delphine Cassidy Chief Communications Officer M: +61 419 163 467 E: delphine.cassidy@orica.com 2025 INVESTOR DAY 63