Orica Limited · ASX:ORI
Orica — Shareholder Meeting (January 2015)
19 slides from Orica's shareholder meeting presentation, Jan 29, 2015
Slide 1: 2014 Annual General Meeting
For personal use only 2014 ANNUAL GENERAL MEETING 29 January 2015 Ian Smith Managing Director and Chief Executive Officer
Slide 2: Disclaimer
DISCLAIMER For personal use only Forward looking statements This presentation has been prepared by Orica Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not
Slide 3: Overview and Sustainability, Financial Performance, Projects and Strategy
For personal use only Overview and Sustainability 4-7 Financial Performance 9 - 11 Projects and Strategy 13 - 19 3 © Orica Limited Group 3
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS For personal use only FY14 Guidance met in • NPAT of $602.5M up 2% challenging markets • 48% increase in net operating and investing cashflows • Efficiency improvements largely offset underlying market conditions Delivery of strategy • Increased take up of advanced blasting se
Slide 5: Executive Structure
EXECUTIVE STRUCTURE For personal use only Ian Smith Chief Executive Officer Craig Elkington Eileen Burnett-Kant Chief Financial Officer Global Head Human Resources Nick Bowen Richard Hoggard Global Head Mining Services Global Head Manufacturing Gavin Jackman Tony Edmondstone Global Head Corporate Af
Slide 6: Safety Performance
SAFETY PERFORMANCE For personal use only 1.0 5 0.9 4.5 0.8 4 Injury Frequency Rate 0.7 3.5 Severity Index 0.63 0.6 0.54 3 0.5 0.47 0.47 2.5 0.40 0.4 2 0.3 0.27 0.26 1.5 0.18 0.16 0.2 0.15 1 0.1 0.5 0.0 0 2010 2011 2012 2013 2014 LWCR AWRCR Severity Index 1. AWRCR: All Worker Recordable Case Rate, to
Slide 7: N2O Abatement Has Significantly Reduced Orica's Carbon Footprint
N2O ABATEMENT HAS SIGNIFICANTLY REDUCED ORICA’S CARBON FOOTPRINT For personal use only 3.5 Emissions reduced by over 900,000 tonnes CO2-e compared to 2010. Equivalent to Emissions (MT CO2-e) 3.0 taking more than 300,000 cars off the road. 2.5 2.0 Emissions Emissionsrelating relatingto 1.5 Approximat
Slide 8: Overview and Sustainability, Financial Performance, Projects and Strategy
For personal use only Overview and Sustainability 4-7 Financial Performance 9 - 11 Projects and Strategy 13 - 19 8 © Orica Limited Group 8
Slide 9: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only Restated 1 Full year ended 30 September (A$M) 2014 2013 NPAT1 602.5 592.5 Earnings Per Share (cents) 163.7 162.9 Dividends Per Share (cents) 96.0 94.0 Net Operating and Investing Cashflow 461 311 Net Debt 2,237 2,334 Trade Working Capital 646 698 Gea
Slide 10: Strong Cash Flow & Balance Sheet
STRONG CASH FLOW & BALANCE SHEET For personal use only Net Operating and Gearing Investing Cashflows (A$M) Gearing Net Operating and Investing Cashflows 41.4% 36.8% 460.5 33.7% 26.6% 105.9 311.3 22.4% (129.8) (7.8) 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 10 © Orica Limited Group
Slide 11: Benefits of Global Footprint
BENEFITS OF GLOBAL FOOTPRINT For personal use only Continued Resilience of Explosives Margins 1. Volume represents ammonium nitrate and emulsion products (bulk and packaged). Refer Supplementary Information to this presentation for detailed volume data by region. 2. Asia is included in “Mining Servi
Slide 12: Overview, Financial Performance, Projects and Strategy
For personal use only Overview 4-7 Financial Performance 9 - 11 Projects and Strategy 13 - 19 12 © Orica Limited Group 12
Slide 13: Wireless Breakthrough
WIRELESS BREAKTHROUGH For personal use only Wireless Initiation • Simpler - no wires or connections • Regulatory approval • Started field trials • Commercially available mid 2015 • Delivers greater flexibility in firing patterns Low frequency transmission of digital data Complex life at the face Wir
Slide 14: Burrup Ammonium Nitrate Project
BURRUP AMMONIUM NITRATE PROJECT For personal use only • 330ktpa capacity AN plant on the Burrup Peninsula, Western Australia, in joint venture with Yara and Apache (Orica share: 45%). • Unique project and capital structure − $110M entry fee − 45% of project capital − 100% marketing rights for all AN
Slide 15: Customer: Contract Profile
CUSTOMER: CONTRACT PROFILE For personal use only Resilience of the Explosives Contract Profile Retained > 90% of existing contracts at re-tender (on a revenue basis), For every $1 of contract revenue lost at re-tender, we won in excess of $2 in new contract revenue from greenfield projects or compet
Slide 16: Customer: Services
CUSTOMER: SERVICES For personal use only Mining Services Sales Revenue 2014 Ground Support Mining 10% AN / ANFO Chemicals 18% 4% Other 4% Services 12% Emulsion Packaged Products Explosives 29% 8% Initiating Systems 15% 16 © Orica Limited Group
Slide 17: Transformation: Indicative Costs & Benefits
TRANSFORMATION INDICATIVE COSTS & BENEFITS For personal use only FY15* FY16* Cash Costs 60 – 70 20 – 40 Potential Non-Cash Costs 40 – 50 - Indicative Annual Costs 100 – 120 20 – 40 Benefits (before costs) 140 - 170 200 - 250 Net benefits provide flexibility in how the company positions itself across
Slide 18: Sale of Chemicals
SALE OF CHEMICALS For personal use only • A strategic review determined that separation of the Chemicals business is superior to retention in the Orica portfolio • Separation completes a decade long transition into a pure play mining services business with market leading positions around the globe •
Slide 19: Orica's Year Horizon
ORICA’S 5 YEAR HORIZON For personal use only Leverage • Structure enables growth with lower New overheads Operating • Centralised profiles for future product demand Model • Asset life cycle management is the way we We have work achieved a lot Leverage • Finalise the removal of functional Disciplined