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Slide 2: Presentation Outline
PRESENTATION OUTLINE Questions and answers
Slide 3: Financial Summary
Year Ended 30 September FINANCIAL SUMMARY Underlying Results: NPAT (excluding significant items) asm 270 239 31 Cost efficiencies after tax ASM 51 80 (29) EBIT (excluding significant items) asm §=6442— 410 32 EBIT (underlying EBIT) asm §=6428 = 3385 43 Results including significant items: Significan
Slide 4: Significant Items
Year Ended 30 September SIGNIFICANT ITEMS*as., 2003 2002 Qenos Qenos Botany Losses (16) - Qenos Write-off (123) (19) (140) (19) Legacy issues Botany groundwater (28) - Sale of Property, Plant & Equipment 32 28 Writedown of assets - (19) Carrying value of Cropcare - (8) Other - (1) 4 - Restructuring
Slide 5: Shareholder Scorecard
Year Ended 30 September SHAREHOLDER SCORECARD Underlying Results: Earnings per share cents 97.2 86.0 11.2 Return on shareholder funds % 19.6 18.0 1.6 Returns to shareholders Dividends per share cents 52 44 8 - Interim cents 18 15 3 - Final cents 34 29 5 Share buyback asm = 4Q_si- 49 Previously suspe
Slide 6: Orica's Approach
ORICA’S APPROACH « Efficiency ¢« Culture
Slide 7: Business Efficiency and Growth
BUSINESS EFFICIENCY AND GROWTH 2001 2002 2003 Latin America Chemnet Latin America Chemnet Australian Mining Consumer Products Fertilizers: Europe Mining Latin America Chemnet Australian Mining Consumer Products Fertilizers Europe Mining Chemicals Manufacturing GROW
Slide 8: EBIT of Current Businesses
10 YEAR EBIT OF CURRENT BUSINESSES ASM 500 - 450 | 400 | 360 | 300 | 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Slide 9: Strategy Principles
STRATEGY PRINCIPLES: 1. Market leadership - “profitable niches” 2. Growing only value adding businesses - “earn the right to grow” 3. Related growth - “building on our best businesses”
Slide 10: Simple Strategy - Superior Results
SIMPLE STRATEGY - SUPERIOR RESULTS Bolt on acquisitions and geographic expansion Plant expansions that meet IRR 15% & 18% RONA minimum Organic growth and productivity gains will generate significant free cash Growth in earnings + increased dividends 10
Slide 11: Growth Scorecard 2003
Strategy GROWTH SCORECARD 2003 A$M Mergers & Acquisitions 491 Brownfield Expansion 57 . $597M Capital management 49 11
Slide 12: Orica's Approach
ORICA’S APPROACH ¢ Strategy ¢« Culture
Slide 13: Cost Efficiencies
Execution COST EFFICIENCIES Fixed cost reduction: * $24M* cost savings in 2003 Whole of cost bar reduction: - $27M* delivered in 2003: - Transportation and logistics - $11M $51M* - Raw materials - $4M - Telecommunications and IT- $3M - Travel - $3M - Energy - $2M - Other consumables - $4M year on ye
Slide 14: Capital Efficiency
Execution CAPITAL EFFICIENCY Disciplined capital management: #s sustenance spending # working capital Productivity: zs Yarwun 4#; Kooragang Island # ChlorAlkali plants 44
Slide 15: Orica's Approach
ORICA’S APPROACH ¢ Strategy « Efficiency
Slide 16: Culture
CULTURE SH&E Commercial Ownership Creative Customer Solutions - Working Together
Slide 17: Business Performance, Cash Flow, Balance Sheet
Slide 18: Orica Summary - Full Year
Orica Summary - Full Year 2003: Sales $4.0B, NPAT* $270M 300 5 260 | 220 + 180 | 140 | 100 | 60 | 20 NPAT $M 147 62 239 270 00 01 02 03 (—— NPAT FULL YR m= ROSHF * pre significant items/abnormals 20 12 ROSHF % 18
Slide 19: Orica NPAT analysis
Orica NPAT* analysis 320 300 -- 280 $M 260 + 240 -- 220 — 200 NPAT FY02 Mining OcP. Chemicals es Underlying EBIT growth of 11% zs Record results for Mining Services, Chemicals and Consumer Products * NPAT before significant items Fertilisers Divestments Qenos Other * NPAT FY03 4s Drought impacting F
Slide 20: Mining Services
Mining Services Sales $1,663, EBIT $247M, Assets $1,049M, RONA 24% 300 16% 250 14% 12% c 200 = zs 10% 2 150 8% S oO W400 oh 4% 50 2% 0 T T T 0% 2000 2001 2002 2003 Mamfirsthaifebit [oo second half ebit —_EBIT MARGIN ©» 8 8 | | | | I 206 180. 166. 140 ae Ze 2 2 388 & &8 or BE 2 2 Sf G HE = > < 4s Rec
Slide 21: Fertilisers
Fertilisers * Sales $760M, EBIT $43M, Assets $686M, RONA 9% 70 10% 80 60 9% = 8% 70 | 50 y 40 v% & 60 | 6% D 5 » a B 50 = 30 5% a | 29 4% 40 = oy, WE 10 a 30 2% ; ; : 1% 20 = 6 ek 2001 2002 2003. | go es 8 $ 88 @ 8, 8 §&8 “10 ira a7 a 55 3 © 2 6 uw z 3 Magfirst haifebit [second half ebit —_EBIT MARG
Slide 22: Consumer Products
Consumer Products Sales $658M, EBIT $89M, Assets $184M, RONA 44% ‘BI T 100 16% 90 14% 100 70 1% 90 nl — = 60 10%e = 50 a% & = 20 a iw 40 6% ui 30 4% 0 20 10 2% - + 0% 60 ra gE 2B o Eo 2000 2004 2002 2003 as 83 Bx & as - - , u BE 3 a Magfirst haifebit [second half ebit —_EBIT MARGIN é > 45 Cost savin
Slide 23: Chemicals
Chemicals Sales $923M, EBIT $107M, Assets $568M, RONA 21% 120 14% 100 [ 12% 110 a | | 20 ey O%e 105 5 8% & 100 ha a 6% B 95 a uw a 40 an 20 | 20 2% 85 9 80 - ; 1 1 0% eo x o 5 BS x ko 2000 2001 2002 2003 a 4 2 5 é 8 3 2 as Mafirst half ebit + cjsecond half ebit —.EBIT MARGIN = 8 aa Sixth consecutive
Slide 24: Other Operations, Corporate Centre and Other Support Services
Other Operations, Corporate Centre and other Support Services (a$m) Other Operations Qenos AVC Vinyls Crop Care Corporate Centre Other Support Costs #s Low polyethylene prices and high input costs «s Sale of AVC and Crop Care (So7M syngenta commissions in 2002) 2003 2002 Change (11) (1) (10) - 4 (4)
Slide 25: Disciplined Capital Management - Cash Flow
Disciplined Capital Management CASH FLOW asm 2003 2002 Change Net operating cash flows 500 8343 157 Net investing cash flows (385) 12 (397) Net financing cash flows (166) (330) 164 25
Slide 26: Balance Sheet
BALANCE SHEET«asm Sept March Sept 2003 2003 2002 Trade working capital 671 571 608 Net property, plant & equipment 1,437 1,326 1,414 Net other assets 350 391 152 Net debt (877) (979) (680) Net Assets 1,581 1,309 1,494 Orica shareholders’ equity 1,385 1,281 1,373 Outside equity interests 196 28 121 E
Slide 27: Net Debt, Gearing and Interest Cover
Net Debt, Gearing and Interest Cover NET DEBT $M GEARING % 99 00 01 02 03 « Gearing 35.7%, target gearing range of 30 - 40% « Interest cover 7.3x. Target > 5x 27
Slide 28: Conclusion
CONCLUSION Underlying profit and cashflow improvement * Healthy balance sheet plus strong coverage ratios ¢ Active financial risk management
Slide 29: 2003 Summary and Outlook for 2004
Slide 30: 2003 Summary
2003 SUMMARY Net profit after tax (pre significant items up 13%) ¢« Results demonstrates strength of Orica businesses ¢ Grown some of our existing businesses ¢ Improved returns for shareholders together with re-activation of on-market buy-back 30
Slide 31: What We Are Doing
WHAT WE ARE DOING * Managing through strict financial criteria ¢ Relentless focus on cost and capital efficiency ¢ Bolt on acquisitions * Top line growth 31
Slide 32: Outlook for 2004
OUTLOOK FOR 2004 Continued earnings momentum driven by: ¢ Expected underlying growth in our existing businesses; ¢ the impact of 2003 acquisitions (plus Yates and Indian Explosives); and * expected partial recovery from 2003 drought conditions 32
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