Orica Limited · ASX:ORI
Orica — Investor Presentation (July 2010)
39 slides from Orica's investor presentation, Jul 22, 2010
Slide 1: 2010 Orica North America Minova Site Visit
For personal use only 2010 Orica North America Minova Site Visit Marion, Illinois July 21, 2010 A member of the Orica Group
Slide 2: Presentation Outline
Presentation Outline For personal use only Business Overview Our Past Our Change Program Our Growth Plan Our Future: Innovation
Slide 3: Business Overview
For personal use only Business Overview Minova North America Jim Earl – President & CEO
Slide 4: Minova North America
Business Overview Minova North America For personal use only
Slide 5: Products in Process
Business Overview Products in Process For personal use only Drilling Hole Fixing Anchors Injection Drill bits/rods Mech Shells Bolts/plates/ Chemicals or Resin Truss systems & Mining Resin Powders capsules along Organic injection with steel bolts chemicals are are used as used to reinforce Applicati
Slide 6: Strategically Located
Business Overview Strategically Located For personal use only
Slide 7: Our Team
Business Overview Our Team For personal use only
Slide 8: Industry Drivers
Business Overview Industry Drivers For personal use only Underground coal production Currently approx 1/3 of North American production is underground Accessing deeper coal seams Long-term gradual trend to underground mining Products key to safe and economic mining Hard Rock mining Dema
Slide 9: Industry Changes
Business Overview Industry Changes For personal use only The US mining industry is experiencing increasing mine safety regulations and scrutiny of safe mining practices Coal companies heightened focus on efficiency gains Our customers need solutions that support safe and efficient operations,
Slide 10: Minova: Your Safety Partner
Business Overview Minova: Your Safety Partner For personal use only All of our products are safety-related and/or contribute to the efficiency of our customer’s operations. We are well positioned to support our customer’s needs.
Slide 11: Our Past
For personal use only Our Past Jim Earl – President & CEO
Slide 12: Minova North America Company Timeline
Our Past Minova North America Company Timeline For personal use only Years refer to calendar years
Slide 13: Market conditions
Our Past Market conditions For personal use only Improved margins from better management of steel lag in 2010 Negative impact on translated earnings of a stronger Australian Dollar Global financial crisis • 2009 total coal consumption ↓10.7% • Coal stocks ↑16.4% Recovery of US Coal volumes i
Slide 14: Our Response
Our Past Our Response For personal use only 9 Achieve synergy targets 9 Develop a regional strategic plan 9 Reach out to Minova International & Orica 9 Support the establishment of Minova Latin America 9 Establish a base in Canada
Slide 15: Our Change Program
For personal use only Our Change Program Daniel Moore – VP Operations & SH&E Paul Moretti – CFO Donna Thibault – VP Human Resources
Slide 16: Elements
Our Change Program Elements For personal use only
Slide 17: Clarity
Our Change Program Clarity For personal use only Strategic Planning Cycle Goal setting – individual contributions measured Structure – Management Team and beyond Teamwork – Regional and International
Slide 18: Talent
Our Change Program Talent For personal use only Graduate Program Resourcing for growth Recruitment of new talent Succession planning – maximizing potential, closing gaps Skill development
Slide 19: Synergy
Our Change Program Synergy For personal use only Leverage resources of Orica Centralize activities: customer service, logistics, demand planning, purchasing Global R&D centers combined with other business intelligence to develop creative customer solutions Standardization of business systems
Slide 20: Process
Our Change Program Process For personal use only Improvement in customer driven processes, e.g. Customer Service Operations efficiency and utilization e.g. TWC reduction Project Planning & Management Business Process Improvement (Lean & Six Sigma)
Slide 21: Culture
Our Change Program Culture For personal use only Safety, Health & Environment (SH&E) “No harm to people or the environment” “Deliver The Promise” - values based decision-making A culture of improvement – Lean & Six Sigma integrated into every aspect of the business
Slide 22: As we stand today
Our Change Program As we stand today For personal use only Minova North America A change ready organization Continuously improving Equipped to achieve our strategic objectives Looking to the future
Slide 23: Our Growth Plan
For personal use only Our Growth Plan Scott Shapkoff – VP Marketing David Saab – GM Minova Canada
Slide 24: Elements
Our Growth Plan Elements For personal use only
Slide 25: Grow the Core
Our Growth Plan Grow the Core For personal use only Maintain and improve our level of quality control. Continue to improve our processes. Provide a full range of products – complete solution. Leverage our association with Orica (globally recognized mining service company).
Slide 26: Leverage our Expertise
Our Growth Plan Leverage our Expertise For personal use only Our field technical account managers have an average of 20 years in Mining, typically working with mine operators. Strengthen our services offer to be the premier technical provider. Ensure customer service is our first priority.
Slide 27: Coal in Future US Energy Mix
Our Growth Plan Coal in Future US Energy Mix For personal use only 1 billion + tons of coal produced pa. Most affordable power fuel, averaging <1/4 $ petroleum & natural gas. 50% electricity coal generated. 2010 production anticipated ↓ 1% (11 million tons). US Coal Consumption by Sector U
Slide 28: New Products
Our Growth Plan New Products For personal use only New product development Focus on higher technology products to solve customer needs Marketing Product pipeline
Slide 29: Tek Products Platform
Our Growth Plan Tek Products Platform For personal use only Ventilation Products Tekseal® withstands blasts up to 120 psi Thin Spray Liner Tekflex® PM Resin Injection Systems Geoflex U-S Injection in Coal Mines
Slide 30: New Products
Our Growth Plan New Products For personal use only Fiber Reinforced Polymer (FiReP®) Bolts, Plates & Mesh High corrosion resistance Excellent cuttability Continuous threaded profile High tensile strength Flexibility Low weight
Slide 31: Canada
Our Growth Plan Canada For personal use only Acquisition of Tomco May 1, 2010 brings a Canadian manufacturing base Established in 1985 to supply the Canadian hardrock metals mining industry with steel plates Leverage strengths from Minova North America, Minova International and Orica Mining Se
Slide 32: Canadian Opportunity
Our Growth Plan Canadian Opportunity For personal use only North American hard rock market ~50% size of Australian hard rock markets. Greatest concentration in Canada, although a number of mines in western US. Canada accounts for 23% of the world’s Uranium production, 16% of Nickel, and 13% of
Slide 33: Our Future: Innovation
For personal use only Our Future: Innovation Jim Earl – President & CEO
Slide 34: Elements
Our Future: Innovation Elements For personal use only
Slide 35: Minova Global Innovation Program
Our Future: Innovation Minova Global Innovation Program For personal use only Innovation distinguishes between a leader and a follower
Slide 36: Global Steel R&D Center
Our Future: Innovation Global Steel R&D Center For personal use only Center of Innovation in Steel Products Located in Bowerston, Ohio Capability & Resources Expected Completion 4th Quarter 2010 November 10, 2009 The Lexington Herald Leader Georgetown-based Minova Americas has announced plan
Slide 37: 2009 Minova Investor Relations Day
Our Future: Innovation 2009 Minova Investor Relations Day For personal use only 9 Invest in the development of new technologies 9 License new technologies from third parties 9 Acquire companies that have novel technology
Slide 38: Questions
For personal use only Questions
Slide 39: Disclaimer
Disclaimer For personal use only 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 intended to be used as the