Orica Limited · ASX:ORI
Orica — Investor Day (July 2022)
104 slides from Orica's investor day presentation, Jul 27, 2022
Slide 1: Orica Investor Day 2022 Webcast
ASX RELEASE 27 JULY 2022 ORICA INVESTOR DAY 2022 WEBCAST Attached is a presentation to be given at the Orica 2022 Investor Day in Sydney which will commence at 9:00am AEST. The briefing will be webcast and is accessible on the Orica website at www.orica.com/Investor- centre/results-presentations. AN
Slide 2: Investor Day
INVESTOR DAY 27 JULY 2022 Public
Slide 3: Disclaimer and important notices
Disclaimer and important notices This investor presentation (Presentation) is dated 27 July 2022 and has been prepared by Orica Limited (ABN 24 004 145 868) (Orica). This Presentation is for information purposes only and is a summary only. It should be read in conjunction with Orica’s most recent fi
Slide 4: Delphine Cassidy
DELPHINE CASSIDY Chief Communications Officer Delphine was appointed Chief Communications Officer in February 2020, with responsibility for External and Internal Communications and Brand Strategy, in addition to Investor Relations which she has led since joining Orica in 2016. Prior to this Delphine
Slide 5: Agenda
Agenda 0830 – 0900 Registration 0900 – 0905 Welcome Delphine Cassidy Chief Communications Officer 0905 – 0915 CEO: Overview / Strategy Sanjeev Gandhi Managing Director & Chief Executive Officer 5 0915 – 1015 Vertical 1: Mining Germán Morales Group Executive & President – AUSPAC 14 Adam Hall Group Ex
Slide 6: Overview & Strategy
OVERVIEW & STRATEGY SANJEEV GANDHI, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER 2022 INVESTOR DAY 5 Public
Slide 7: Sanjeev Gandhi
SANJEEV GANDHI Managing Director and Chief Executive Officer Sanjeev was appointed Managing Director and Chief Executive Officer in April 2021, after previously holding the role of Group Executive and President, Australia Pacific & Asia. Sanjeev is a former Executive Director of publicly listed Germ
Slide 8: Safety remains the top priority at Orica
OUR VALUES Safety remains the top priority at Orica Our values Safety and our people • Keeping our people safe remains our primary goal • Continued focus on improving our safety performance • Good progress on Major Hazards Management program • Engagement and inclusion survey demonstrated engaged, en
Slide 9: Recap
OUR STRATEGY Recap | In November last year we set out a pathway towards profitable growth and value creation for our stakeholders. 2022 INVESTOR DAY 8 Public
Slide 10: Outlook across key commodities: 2021-2026
COMMODITY OUTLOOK Outlook across key commodities: 2021-20261 Material moved CAGR% 2021-26 -2.0 0 +2.0 Global Australia Asia North Latin EMEA (exChina/Russia) Pacific (ex-China) America America (ex-Russia) Commodity +1.7% +1.4% +2.2% +1.2% +2.9% +1.2% Gold +1.6% +1.0% +0.7% +4.1% +4.0% -0.8% Producti
Slide 11: Diversified global business
OUR PORTFOLIO Diversified global business Revenue by region 1 Revenue by commodity 1 Revenue by product/service type 1 2% 3% 14% 6% 6% 8% 23% 6% 39% 35% 12% 14% 22% 14% 21% 16% 23% 16% 20% Australia Pacific & Asia North America Copper Gold Bulk Emulsion AN/ANFO Thermal Coal Q&C Initiating Systems On
Slide 12: Orica's global reach creates a significant competitive advantage
GLOBAL REACH Orica’s global reach creates a significant competitive advantage 13,000+ employees 148 years of expertise Customers in more than 100 countries 6 continuous plants, 20 Head Office discrete plants, Regional Head Office and 2 emulsifier Customer Presence plants Monitoring Centre Discrete M
Slide 13: Delivering value to our shareholders
OUR INVESTMENT PROPOSITION Delivering value to our shareholders Our Focus Our Promise • Safety is, and will remain our number Operating responsibly one priority together with our people, • We are the global leader in mining partners, customers and civil construction markets • We have reshaped our st
Slide 14: Mining: Australia, Pacific, Asia
MINING: AUSTRALIA, PACIFIC, ASIA (APA) GERMÁN MORALES, GROUP EXECUTIVE & PRESIDENT – AUSPAC ADAM HALL, GROUP EXECUTIVE & PRESIDENT – ASIA & CHEMICALS 2022 INVESTOR DAY 13 Public
Slide 15: Germán Morales
MINING: AUSTRALIA PACIFIC GERMÁN MORALES Group Executive & President – AUSPAC Germán was appointed Group Executive and President, Australia Pacific in April 2021. Previously he held the role of Group Executive and President Latin America. Prior to joining Orica, spent 18 years at commercial explosiv
Slide 16: Diverse business with a strong EBIT contribution
MINING: AUSTRALIA PACIFIC ASIA AT A GLANCE… Diverse Revenue EBIT business (as a % of total ORI revenue)1 (as a % of total ORI EBIT)1 with a strong EBIT 39% 67% contribution Revenue by product/service Revenue by commodity1 Revenue by country1 offering1 Other Other Philippines Copper India Other Indon
Slide 17: Unlock value with tailored solutions to segment needs
MINING: AUSPAC STRATEGIC ENVIRONMENT Unlock value with tailored solutions to segment needs Iron Ore Metals Coal (Thermal & Met) Key • Price • Growth in renewable and clean energy markets • Price market • Supply • Growth in infrastructure (construction, electrical) • Availability of alternate energy:
Slide 18: Security of supply across diversified portfolio
MINING: AUSPAC ORICA ADVANTAGE Security of supply across diversified portfolio Our competitive advantage Pilbara Burrup AN manufacturing facility strategically located to supply Pilbara customers IS/EBS Assembly ANE facility at Pippingarra IS/EBS assembly at Helidon site to supply Australia • Securi
Slide 19: Driving value through ESG and technology
MINING: AUSPAC ORICA ADVANTAGE Driving value through ESG and technology Technology Customer Penetration Number of customer sites (ytd 2022) Digital: Strong customer demand and momentum Papua New Guinea in OrePro3DTM, design for outcome and 3 fragmentation systems. 4DTM: Successful ongoing customer t
Slide 20: Focus on commercial discipline, sustainability, manufacturing and supply chain, and people
MINING: AUSPAC HOW WE WILL MEASURE SUCCESS Focus on commercial discipline, sustainability, manufacturing and supply chain, and people Sustainable Diversify and grow metals portfolios and support coal customers’ needs. solutions Progress initiatives to deliver on Net Zero commitments. Optimised Build
Slide 21: Adam Hall
MINING: ASIA ADAM HALL Group Executive & President – Asia & Chemicals In March 2022, Adam was appointed Group Executive & President – Asia & Chemicals. Previously he served as Orica’s Chief Development Officer from 2019 to 2022, with responsibility for corporate strategy, mergers & acquisitions and
Slide 22: Orica Asia's regions are complex and dynamic
MINING: ASIA COMPETITIVE LANDSCAPE Orica Asia's regions are complex and dynamic with generally strong competitive intensity Indonesia Rest of Asia India China • Miners seeking productivity • Dynamic and complex • Industry strong interest in • Market increasingly enhancing techniques regulations outp
Slide 23: Our manufacturing and supply footprint ensures reliability
MINING: ASIA ORICA ADVANTAGE Our manufacturing and supply footprint ensures reliability and drives superior customer outcomes Orica Asia manufactures AN, Explosives & MMUs; and supplies these, cyanide & digital across the region Gomia is one of two global detonator manufacturing hubs for Orica, send
Slide 24: Orica's growth in the Asia region will be led by innovative solutions
MINING: ASIA ORICA ADVANTAGE Orica’s growth in the Asia region will be led by innovative solutions, and empowered local leaders Technology Customer Penetration Number of customer sites (ytd 2022) Scale WebGenTM implementation underway: Mongolia • WebGenTM recently implemented in a large underground
Slide 25: Asia's priorities are focussed on technology, advanced solutions and security of supply
MINING: ASIA HOW WE WILL MEASURE SUCCESS Asia’s priorities are focussed on technology, advanced solutions and security of supply Smarter Advanced services and solutions that improve customer outcomes Solutions Optimised Maintaining reliable scale supply across a complex region Operations Team: Conti
Slide 26: Mining: Latin America
MINING: LATIN AMERICA (LATAM) BRIAN GILLESPIE, GROUP EXECUTIVE & PRESIDENT – LATAM 2022 INVESTOR DAY 25 Public
Slide 27: Brian Gillespie
BRIAN GILLESPIE Group Executive & President – LATAM Brian was appointed Group Executive and President, Latin America in April 2021. Prior to this, he held the role of Chief Executive Officer of GroundProbe. Before joining Orica, Brian was the Chief Commercial Officer at DP World Australia and previo
Slide 28: Strong recovery in mining activity in the region
MINING: LATAM AT A GLANCE… Strong recovery in mining activity in the region Revenue by country1 Revenue EBIT (as a % of total ORI revenue)1 (as a % of total ORI EBIT)1 Argentina Other Brazil 11% 22% Chile Peru Revenue by product/service offering1 Revenue by commodity1 Services Other Chemicals Therma
Slide 29: Quality of earnings is Orica's focus in all markets
MINING: LATAM STRATEGIC ENVIRONMENT Quality of earnings is Orica’s focus in all markets Chile + Argentina Peru Brazil Colombia & Caribbean Key • Copper growth from current • Copper and gold growth from • Economic growth drive increase • Boost in Q&C/Underground market operations and new current oper
Slide 30: Differentiating through security of supply and new technology
MINING: LATAM ORICA ADVANTAGE Differentiating through security of supply and new technology Technology Customer Penetration Number of customer sites YTD 2022 Security of Supply • Global footprint and purchasing scale positions Orica well to maintain security of supply to customers Brazil Peru 10 Tec
Slide 31: Quality of earnings and sustainable technology adoption
MINING: LATAM HOW WE WILL MEASURE SUCCESS Quality of earnings and sustainable technology adoption Quality Continue to improve margins across low performing contracts and product of Earnings categories People and Increase gender diversity significantly across LATAM Safety Zero serious injuries Growth
Slide 32: Mining: Europe, Middle East & Africa
MINING: EUROPE, MIDDLE EAST & AFRICA (EMEA) JAMES BONNOR, GROUP EXECUTIVE & PRESIDENT - EMEA 2022 INVESTOR DAY 31 Public
Slide 33: James Bonnor
JAMES BONNOR Group Executive & President – EMEA James was appointed Group Executive and President, Europe, Middle East and Africa in 2021. Prior to this, he held the role of Group Executive and President, North America. He has 28 years of commercial and operational experience with Orica, including Z
Slide 34: Diverse region with a broad commodity exposure
MINING: EMEA AT A GLANCE… Diverse region with a broad commodity exposure Revenue by region1 Revenue EBIT (as a % of total ORI revenue)1 (as a % of total ORI EBIT)1 Africa 5% 14% E&ME CIS Revenue by product/service offering1 Revenue by commodity1 Services Other Other Thermal Coal Met. Coal AN Chemica
Slide 35: Selective growth and technology differentiation to enhance profitability
MINING: EMEA STRATEGIC LANDSCAPE Selective growth and technology differentiation to enhance profitability EME Africa CIS (excl Russia) Key • Government funding, hyperinflation and • Investment in exploration and greenfield projects • Governments enabling investment in exploration market ESG requirem
Slide 36: Accelerated technology execution to underpin growth
MINING: EMEA ORICA ADVANTAGE Accelerated technology execution to underpin growth Technology Customer Penetration Number of customer sites (ytd 2022) Digital: • Investing in specialists to drive adoptions and support customers • Solutions helping customers to achieve their ESG goals WebGenTM: Europe
Slide 37: Rebalancing portfolio leveraging growth in Africa driven by technology differentiation
MINING: EMEA Rebalancing portfolio leveraging growth in Africa driven by technology differentiation Optimised Business restructure to focus on Mining and Quarry & Construction verticals underlying Ensuring security of supply in a volatile geopolitical environment business Accelerated Invest in strat
Slide 38: Mining: North America
Malartic, Canada MINING: NORTH AMERICA (NA) JAMES CROUGH, GROUP EXECUTIVE & PRESIDENT - NA 2022 INVESTOR DAY 37 Public
Slide 39: James Crough
JAMES CROUGH Group Executive & President – NA James was appointed Group Executive and President, North America in October 2021. Prior to this, he held the role of Vice President Finance, Australia Pacific and Asia including nine months as Interim Group Executive and President. Before joining Orica,
Slide 40: Mining activity strengthening in a resilient market
MINING: NA AT A GLANCE… Mining activity Revenue (as a % of total ORI revenue)1 EBIT (as a % of total ORI EBIT)1 strengthening in a resilient market 23% 24% Revenue by product/service offering1 Revenue by commodity1 Revenue by country1 Other Other Chemicals Other Services Copper Mexico Thermal Initia
Slide 41: Market structure and differentiation will enhance profitability in a mature market
MINING: NA STRATEGIC LANDSCAPE Market structure and differentiation will enhance profitability in a mature market confronting change United States Canada Mexico Key • Energy mix • Greenfield projects • Socio and political change market • Record metals prices • Record metals prices • Record metals (i
Slide 42: Orica is geographically well positioned to pursue growth opportunities
MINING: NA ORICA ADVANTAGE Orica is geographically well positioned to pursue growth opportunities in the region Greenfield and brownfield prospects by commodity Growth opportunities Greenfield and brownfield prospects by commodity: • Gold growth opportunity in Western Gold Canada. New Greenfield/Bro
Slide 43: Future profitable growth will be supported by Bulk, Wireless and Digital platforms
MINING: NA ORICA ADVANTAGE Future profitable growth will be supported by Bulk, Wireless and Digital platforms Technology Customer Penetration Explosives: Proven record of successful customer adoptions, Number of customer sites (ytd 2022) while delivering year-on-year value with existing customers. 4
Slide 44: Region is well positioned for profitable growth
MINING: NA HOW WE WILL MEASURE SUCCESS Region is well positioned for profitable growth Commercial discipline in a highly inflationary environment Earnings Increased scale and commercialisation of Orica technology offering Growth Profitable growth in the Q&C sector to offset anticipated coal decline
Slide 45: Quarry & Construction
QUARRY & CONSTRUCTION (Q&C) JAMES BONNOR, GROUP EXECUTIVE & PRESIDENT - EMEA 2022 INVESTOR DAY 44 Public
Slide 46: James Bonnor
JAMES BONNOR Group Executive & President – EMEA James was appointed Group Executive and President, Europe, Middle East and Africa in 2021. Prior to this, he held the role of Group Executive and President, North America. He has 28 years of commercial and operational experience with Orica, including Z
Slide 47: Strong Q&C growth expected in key Orica markets
QUARRY AND CONSTRUCTION Strong Q&C growth expected in key Orica markets supported by increased construction spend Global commodity material Construction Gross Output CAGR Underground tunnelling in key moved1 Mt in key Orica markets2. US$, billion Orica markets3. Km and US$, billion 2021 2026 US$, 20
Slide 48: Orica already has an established global presence in the Q&C market
QUARRY AND CONSTRUCTION Orica already has an established global presence in the Q&C market with opportunities in growth regions KEY Q&C MARKET CHARACTERISTICS • Q&C market is highly fragmented and regionally driven market – competitive landscape varies significantly • Direct and indirect marketing c
Slide 49: Growing market as major world cities become future ready
TUNNELLING Growing market as major world cities become future ready KEY TUNNELLING MARKET CHARACTERISTICS • The global underground tunnelling market totalled US$140 billion in 20191, with 5,200 km constructed • Drill and blast still is a preferred methodology vs tunnel boring machines for shorter tu
Slide 50: Strong presence in mature markets with opportunities in key growth regions
QUARRY AND CONSTRUCTION Strong presence in mature markets with opportunities in key growth regions Established markets Some key growth regions • Estimated US$550 billion infrastructure • ESG focussed AND highly competitive • Substantial increase in construction • Highly fragmented market spend until
Slide 51: Orica's industry-focused technology delivers better customer outcomes
QUARRY AND CONSTRUCTION Orica’s industry-focused technology delivers better customer outcomes Our customers’ challenge Orica’s solutions Speed of completion Fit for purpose technology Civil tunnelling success is underpinned by safety, Strong technology leverage offering industry leading speed and qu
Slide 52: Orica's Quarry and Construction value proposition
QUARRY AND CONSTRUCTION Orica’s Quarry and Construction value proposition Our people Our product range and operating model • Industry leading technical services teams • Largest range of products that address industry support our dedicated blasting teams specific needs • Operational expertise in Q&C
Slide 53: Questions
QUESTIONS GERMAN MORALES, GROUP EXECUTIVE & PRESIDENT – AUSPAC ADAM HALL, GROUP EXECUTIVE & PRESIDENT – ASIA & CHEMICALS BRIAN GILLESPIE, GROUP EXECUTIVE & PRESIDENT – LATAM JAMES BONNOR, GROUP EXECUTIVE & PRESIDENT – EMEA JAMES CROUGH, GROUP EXECUTIVE & PRESIDENT – NA 2022 INVESTOR DAY 52 Public
Slide 54: Digital Solutions
DIGITAL SOLUTIONS ANGUS MELBOURNE, CHIEF TECHNOLOGY OFFICER 2022 INVESTOR DAY 53 Public
Slide 55: Angus Melbourne
Angus was appointed as Chief Technology Officer in May 2021 ANGUS MELBOURNE responsible for strategic marketing, research and development (R&D), Chief Technology Officer technology commercialisation, information technology (IT), and Orica Digital Services. Angus joined Orica in January 2016 as Presi
Slide 56: The mining industry has evolved over time enabled by digital technology
DIGITAL SOLUTIONS The mining industry has evolved over time enabled by digital technology Technological improvements have helped remove people from harm’s way while providing ever-increasing resolution of information at ever-faster speeds. The next technology horizon will turn automated data flows i
Slide 57: Digital transformation in the mining industry
DIGITAL SOLUTIONS Digital transformation in the mining industry – from silos to integrated workflows Automated Integrated workflows Increased throughput E2E Geoscience Workflows Better grade control Automated Discrete Systems Sustainable mine to mill Safer operations Automated Information Discrete A
Slide 58: Orica is industry's first end to end solutions provider
DIGITAL SOLUTIONS Orica is industry’s first end to end solutions provider connecting the physical and digital world Our customers are seeking integrated, end to end sustainable solutions to improve productivity across the value chain Standardised blasting Fragmentation Ore/Waste Reconciliation Level
Slide 59: Proven track record of Build & Buy – Orica Digital Solutions
DIGITAL SOLUTIONS Proven track record of Build & Buy – Orica Digital Solutions 2018 2019 2020 2021 Metals Coal Insights Build Buy 2022 INVESTOR DAY 58 Public
Slide 60: Advanced geophysics and geospatial measurements
DIGITAL SOLUTIONS: OREBODY INTELLIGENCE Advanced geophysics and geospatial measurements enabling accurate real-time ore evaluation Geophysics measurements • Exploration – greenfield and brownfield: rapid geoscience results enable ‘live’ decision making during Right energy in the right hole every tim
Slide 61: Enabling precision mining; through digitised, connected tools & platforms
DIGITAL SOLUTIONS: BLAST DESIGN AND EXECUTION Enabling precision mining; through digitised, connected tools & platforms Blast Design & Control Ore Dilution Grade Control Design for Fragmentation Digitisation – connecting mining Control - with digital data and workflow Designing for output – by model
Slide 62: GroundProbe has the broadest range of technologies and services
DIGITAL SOLUTIONS: DOWNSTREAM MEASUREMENT & OPTIMISATION GroundProbe has the broadest range of technologies and services for safety-critical monitoring, open pit slope and underground walls • Safety and Risk Management – early detection of potential risks and constant monitoring of critical areas wh
Slide 63: The Digital growth strategy is based on three pillars
DIGITAL SOLUTIONS The Digital growth strategy is based on three pillars Maximise the Explore New Inorganic Sites implemented Core Technology Growth expansion Potential to grow • Discrete Product Sales: • New Digital offering in • Pursue synergistic Build on the success of underground mining and acqu
Slide 64: Delivering high-growth, high-margin end to end workflows across mining and beyond
DIGITAL SOLUTIONS Delivering high-growth, high-margin end to end workflows across mining and beyond RESOURCE DEFINITION, DESIGN AND MODEL BLASTING MEASURE AND MONITOR ORE PROCESSING PLANNING, SCHEDULING & DRILLING OREBODY INTELLIGENCE BLAST DESIGN AND EXECUTION DOWNSTREAM MEASUREMENT AND OPTIMISATIO
Slide 65: Mining Chemicals
MINING CHEMICALS ADAM HALL, GROUP EXECUTIVE & PRESIDENT – ASIA & CHEMICALS 2022 INVESTOR DAY 64 Public
Slide 66: Adam Hall
ADAM HALL Group Executive & President – Asia & Chemicals In March 2022, Adam was appointed Group Executive & President – Asia & Chemicals. Previously he served as Orica’s Chief Development Officer from 2019 to 2022, with responsibility for corporate strategy, mergers & acquisitions and chemicals. He
Slide 67: Mining chemicals enhances Orica's value proposition across the mining chain
MINING CHEMICALS Mining chemicals enhances Orica’s value proposition across the mining chain Strengthens Orica’s presence across the mining value chain Strong alignment with Orica’s global footprint and deep understanding of customer needs Complimentary component of Orica’s new solutions offerings 2
Slide 68: Mining chemicals is a AUD $23 billion market
MINING CHEMICALS Mining chemicals is a AUD $23 billion market Global mining Orica’s current exposure Growth opportunities chemicals market (%) Cyanide Emulsifiers AUD$23Bn Leaching Emulsifiers & other Collectors Frothers Flocculants Solvent extractants Specialty mining agents chemicals Example Gold
Slide 69: Cyanide demand expected to outpace supply
MINING CHEMICALS Cyanide demand expected to outpace supply, resulting in increasing plant utilisation Primary gold production growth forecast to Higher cyanide intensity in processing Comparatively slow supply-side response suggests be modest, while ore grades are expected expected due to increasing
Slide 70: From our integrated manufacturing plant, Orica serves customers globally
MINING CHEMICALS From our integrated manufacturing plant, Orica serves customers globally Orica’s cyanide footprint, servicing over 80 customers in more than 20 countries Global distribution network • Network of cyanide transfer stations in key gold mining regions • Ability to provide our industry l
Slide 71: Opportunities to grow
MINING CHEMICALS Opportunities to grow Strategic opportunities Plant expansion: Potential to debottleneck capacity for existing manufacturing plant Convert customers to sparge through existing, and expanded, transfer station network and partnerships Sparge & network growth: - Successfully launched t
Slide 72: Orica supplies market-leading premium emulsifiers to the explosives industry
MINING CHEMICALS – EMULSIFIERS Orica supplies market-leading premium emulsifiers to the explosives industry MARKET CUSTOMER COMPETITION • Emulsifiers are critical • All customers are • Market is comprised of 2 components of explosives explosives service providers types of players: • Key performance
Slide 73: A global business servicing Orica and external customer operations
MINING CHEMICALS – EMULSIFIERS A global business servicing Orica and external customer operations across ~ 50 countries Orica Emulsifiers footprint NELSON BROTHERS EMULSIFIER PLANT (50%) Alabama, USA ORICA DEER PARK EMULSIFIER PLANT Melbourne, Australia Orica’s emulsifiers country presence 2022 INVE
Slide 74: Our focus is to pursue growth opportunities in our mining chemicals portfolio
MINING CHEMICALS Our focus is to pursue growth opportunities in our mining chemicals portfolio Chemical Adjacencies Partnerships Inorganic growth • Diversify into new adjacent • Partner with companies to • Add extraction chemistry markets introduce and scale new capabilities chemical solutions into
Slide 75: Questions
QUESTIONS ANGUS MELBOURNE, CHIEF TECHNOLOGY OFFICER ADAM HALL, GROUP EXECUTIVE & PRESIDENT – ASIA & CHEMICALS 2022 INVESTOR DAY 74 Public
Slide 76: Manufacturing and Supply
Kurri Kurri, Australia MANUFACTURING AND SUPPLY LEAH BARLOW, PRESIDENT – SHES, DISCRETE MANUFACTURING AND SUPPLY 2022 INVESTOR DAY 75 Public
Slide 77: Leah Barlow
LEAH BARLOW President – SHES, Discrete Manufacturing and Supply Leah was appointed President – SHES, Discrete Manufacturing and Supply in 2022. Leah has more than 17 years of operational experience with Orica, most recently as Vice President for Initiating Systems and Packaged Emulsion Global Manufa
Slide 78: Orica is well positioned in a period of intense global disruption
MANUFACTURING AND SUPPLY: OPERATING ENVIRONMENT Orica is well positioned in a period of intense global disruption Operating Environment Our Position Period of intense, global disruption Orica has been well positioned to respond, ensuring security of supply to customers • Raw material, product, manuf
Slide 79: Significant integrated asset base – an unmatched advantage
MANUFACTURING AND SUPPLY: ORICA ADVANTAGE Significant integrated asset base – an unmatched advantage Gyttorp, Carseland, Sweden Canada Orica’s major global Brownsburg, Ust’ manufacturing plants and Canada Panaguirishte, Kamenogorsk, Kazakhstan storage facilities Alabama, USA Bulgaria Aljustrel, Wei
Slide 80: Create flexibility and future proof our continuous assets
MANUFACTURING AND SUPPLY: CONTINUOUS PLANTS Create flexibility and future proof our continuous assets Focus areas • Effective plant operations and high utilisation • Managing plant turnarounds to plan • Exploring low-cost debottlenecking solutions to increase capacity: • AN production and bagging •
Slide 81: Unlocking value in the manufacturing network
MANUFACTURING AND SUPPLY: IS AND PE PLANTS Unlocking value in the manufacturing network Discrete Network Optimisation will deliver a global Key projects: competitive advantage through: Lower material transport risk • Upgrades to Lurin and Gomia caps plants Optimised supply with shorter lead-time
Slide 82: Leveraging our purchasing scale and commercial agility
MANUFACTURING AND SUPPLY: SUPPLY CHAIN MANAGEMENT Leveraging our purchasing scale and commercial agility AN Supply • Orica is providing security of supply to our customers globally by leveraging: Manufacturing footprint Purchasing scale Commercial agility Freight and logistics capabilities •
Slide 83: How we will measure success
MANUFACTURING AND SUPPLY How we will measure success Supply Maintain AN and Discrete security of supply for our customers Security Safety and Zero serious injuries, increased transparency and reduction of Scope 1, 2 and 3 Sustainability emissions Optimise Higher utilisation, product standardisation,
Slide 84: Sustainability
Gladstone, Australia SUSTAINABILITY CHRISTOPHER DAVIS, CHIEF FINANCIAL OFFICER 2022 INVESTOR DAY 83 Public
Slide 85: Christopher Davis
CHRISTOPHER DAVIS Chief Financial Officer Christopher was appointed Chief Financial Officer in October 2018 and has responsibility for the group wide finance function, taxation, treasury, sustainability, property, government relations, secretariat, legal and group risk and assurance. Before joining
Slide 86: We will help achieve Orica's purpose, enhance competitive advantages, and create value
SUSTAINABILITY: STRATEGY We will help achieve Orica’s purpose, enhance competitive advantages, and create and share value for all stakeholders OUR PURPOSE Our sustainability goals Our focus areas Sustainably mobilise the earth’s resources To help our customers INNOVATING SUSTAINABLE SOLUTIONS meet t
Slide 87: Driving the highest standards of safety and sustainability
SUSTAINABILITY: LEADERSHIP Driving the highest standards of safety and sustainability Strong governance and transparency Our progress recognised externally • Sustainability is at the heart of our purpose • Our progress is being recognised with third-party ESG ratings • Embedded across governance, ma
Slide 88: Our strategy for climate action
SUSTAINABLY MOBILISING THE EARTH’S RESOURCES Our strategy for climate action STRATEGIC PILLARS FOR CLIMATE CHANGE FUTURE FACING COMMODITIES ACCELERATE EMBED CLIMATE IN OUR CATALYSE FOR A LOW-CARBON ECONOMY DECARBONISATION STRATEGIC DECISION-MAKING CLIMATE ACTION Rebalancing portfolio for a low Reduc
Slide 89: Ambition to achieve net zero emissions by 2050
SUSTAINABLY MOBILISING THE EARTH’S RESOURCES Ambition to achieve net zero emissions by 20501, building on our 2030 commitment Commitment: To reduce Scope 1 and 2 emissions by at least 40% by 2030 Process emissions Scope 1&2 Renewable Energy Low carbon Net zero ambition: energy efficiency To achieve
Slide 90: Accelerating our decarbonisation through low emissions technology
SUSTAINABILITY: WHAT WE ARE DOING NOW Accelerating our decarbonisation through low emissions technology Process emissions Tertiary Catalyst Abatement Technology Carseland tertiary catalyst Proven GHG technology that will reduce Orica’s total Scope 1 & 2 emissions • Technology installed by >30% Novem
Slide 91: Positioning Orica as a catalyst for low-carbon industrial precincts
SUSTAINABILITY: WHAT WE ARE DOING NOW Positioning Orica as a catalyst for low-carbon industrial precincts Low carbon feedstocks & CCUS2 GLADSTONE, QLD, AUSTRALIA HUNTER VALLEY, NSW, AUSTRALIA Leveraging our strengths 21.2 MtCO2e Total abatement • Safe, reliable manufacturing assets potential 9 MtCO
Slide 92: Supporting operations that meet the needs of people today
SUSTAINABILITY: SUPPORTING OUR CUSTOMERS Supporting operations that meet the needs of people today while enabling the transition to a low carbon future Now to 2025 Minimise operating Decarbonised explosives Mining efficiency Chemical circularity footprint • Accelerating decarbonisation • Energy effi
Slide 93: Finance Priorities
FINANCE PRIORITIES CHRISTOPHER DAVIS, CHIEF FINANCIAL OFFICER 2022 INVESTOR DAY 92 Public
Slide 94: Christopher Davis
CHRISTOPHER DAVIS Chief Financial Officer Christopher was appointed Chief Financial Officer in October 2018 and has responsibility for the group wide finance function, taxation, treasury, sustainability, property, government relations, secretariat, legal and group risk and assurance. Before joining
Slide 95: Orica's strategy is underpinned by a disciplined approach toward capital management
FINANCE PRIORITIES: CAPITAL MANAGEMENT FRAMEWORK Orica’s strategy is underpinned by a disciplined approach toward capital management Strong cash generation Working capital efficiency Asset efficiency Maintaining an investment grade credit rating Preserving the flexibility for investment alternatives
Slide 96: Capital expenditure will continue to be managed responsibly
FINANCE PRIORITIES: CAPITAL EXPENDITURE Capital expenditure will continue to be managed responsibly, with an allocation for sustainability initiatives Capital expenditure (AUD$M)1 Focus on cash preservation, taking a disciplined approach FY22 to capital spend 339 expectation: 323 11 $340m - 15 78 15
Slide 97: Higher trade working capital driven by increased input costs
FINANCE PRIORITIES: CASH CONVERSION Higher trade working capital driven by increased input costs and ensuring security of supply Far East CFR ammonia index 1 EBITDA and Cash performance (USD$/t) + 67% 1,200 941 946 150% 1,000 885 796 800 600 127% 400 100% 200 101% 95% 74% 0 424 4… 18… 1… 15… 29… 13…
Slide 98: Prudent debt management
FINANCE PRIORITIES: DEBT MANAGEMENT Prudent debt management Committed debt facility maturity profile (AUD$M)1 Average tenor at March 2022 – 3.8 years (drawn debt: 4.7 years) Conservative debt maturity profile 1,000 900 800 700 600 Standard & Poor’s investment grade credit rating 500 (BBB, negative o
Slide 99: Questions
QUESTIONS CHRISTOPHER DAVIS, CHIEF FINANCIAL OFFICER LEAH BARLOW, PRESIDENT – SHES, DISCRETE MANUFACTURING & SUPPLY 2022 INVESTOR DAY 98 Public
Slide 100: Closing Comments
CLOSING COMMENTS SANJEEV GANDHI, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER 2022 INVESTOR DAY 99 Public
Slide 101: A clear pathway towards profitable growth and value creation
STRATEGY UPDATE A clear pathway towards profitable growth and value creation for our stakeholders Progress on targets for the reporting period ended 31 March 2022 0-3 years Status Pursue organic growth from the core Accelerate adoption of innovative blasting technologies and digital solutions, both
Slide 102: Delivering value to our shareholders
OUR INVESTMENT PROPOSITION Delivering value to our shareholders Our Focus Our Promise • Safety is, and will remain our number Operating responsibly one priority together with our people, • We are the global leader in mining partners, customers and civil construction markets • We have reshaped our st
Slide 103: Contact: Delphine Cassidy
Contact: Delphine Cassidy Chief Communications Officer M: +61 419 163 467 E: delphine.cassidy@orica.com Public
Slide 104: Definitions
Definitions Term Definition Ammonia Nitrate (AN) Includes Ammonium Nitrate prill and solution as well as Emulsion products including bulk emulsion and packaged emulsion. ANeq (AN equivalent) represents AN content on the products we sell Capital expenditure Comprises total payments for property, plan