Orica Limited · ASX:ORI
Orica — Investor Presentation (February 2006)
20 slides from Orica's investor presentation, Feb 7, 2006
Slide 1: Preference Securities Investor Presentation
Preference Securities Investor Presentation citigroupt MACQUARIE,
Slide 2: Disclaimer
Disclaimer Orica Limited (ABN 24 004 145 868 ) and Orica New Zealand Securities Limited (ARBN 117 168 297) are the issuers of Orica SPS. This prosontation has been propared by Orica Limited and Orica New Zealand Socurties Limited (collectively “Orica") based on information available to it. No repres
Slide 3: Overview
Overview = Offer Summary » Orica » Financials = Dyno Nobel Acquisition » Proforma Financials = Orica SPS Offer = Term Sheet » Selected Financial Ratios » Timetable = Contacts citigrougt” © ‘#) CORA,
Slide 4: Offer Summary
Offer Summary issuer Orica Limited (“Orica”) is issuing the SPS Preference Share and Orica New Zealand Securities Limited, a wholly owned subsidiary of Orica, is issuing the NZ Security The two fully paid securities cannot be traded separately prior to an Assignment Event Security Orica Step-up Pref
Slide 5: Overview of Orica
Overview of Orica EBIT by business platform in 2005 Chemical Services Consumer 9.6% Products 15.4% Chemnet 10.8% Z Fertilisers 11.4% Mining Services 52.8% Mining Services — Post Dyno acquisition, the world’s leading supplier of commercial explosives, initiating systems and advanced mining solutions
Slide 6: Orica's Historical Sales and EBIT
Orica’s Historical Sales and EBIT Historical sales and EBIT performance Sales (A$m) EBIT (ASm) $6,000 $600 $5,000 $500 $4,000 $400 $300 $2,000 $200 $1,000 $100 $0 A A A $0 2001 2002 2003 2004 2005 Sih Sales “PEBIT citigroupt ‘#) COREA
Slide 7: 2005 and 2004 Underlying Results
2005* —2004*_ ~=% Change Underlying Results: Sales Revenue asm —s55, 127 4,610 11 NPAT (excluding significant items) ASM 335 326 3 EBIT (excluding significant items) ASM 577 553 4 Results including significant items: Significant items after tax ASM (99) 2 NPAT including significant items ASM —_—«236
Slide 8: Net Debt and Gearing
Net Debt and Gearing 1600 Net Debt (A$m) Target gearing range shaded i yy WH SG yy Tee a Gearing HYO2 FYo2 HYO3. FYO3 HYO4 FYO4 FYOS, citigroupt acti ‘#) CORA,
Slide 9: Dyno Nobel Acquisition Highlights
Dyno Nobel Acquisition Highlights Acquisition Businesses’ and Consortium Businesses’ sales* Acquisition Businesses Sales 29% Consortium Businesses Sales 71% *Sales for 12 months ended 31 December 2004 Dyno Nobel and Orica are the world’s leading mining services companies Dyno Nobel develops, produce
Slide 10: Acquisition Businesses
Acquisition Businesses’ EBITDA by geography* Latin America 25% “EBITDA for 12 months ended 30 June 2005 Orica will acquire substantially all of the European, Middle Eastern, African, Asian and Latin American businesses for US$685 million (A$902 million) Businesses are being transferred progressively
Slide 11: Application and Sources of Funds
Application 0) Acquisition Price 902 Due Diligence Transaction Costs 32 Funding Transaction Costs 23 Future Growth Opportunities 62 Total 1,019 Debt 103 Hybrid 400 New Equity (Rights Issue) 516 Total 1,019 Acquisition funded by mix of equity, the issue of a hybrid security and existing debt faciliti
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet Total Assets 4,463.4 386.8 721.3 62.0 5,633.5 Total Liabilities 2,931.8 131.7 954.0 (831.0) 3,186.5 Net Assets 1,531.6 256.4 (232.7) 893.0 2447.0 Total Shareholder’s Equity 1,531.6 255.4 (232.7) 893.0 2,447.0 Assumes a $400 million Orica SPS offer size citigrougt” © ‘#) CORA,
Slide 13: Term Sheet
Term Sheet Seourity Orica Step-Up Preference Securities (Orica SPS) Cter $400 million with an ability to accept oversubscriptions for up te $100 million Flarrklingy Ahead of Orica ordinary shares, behind existing Orica preference shares and creditors Face Value $100 Terns Perpetual Romarketing date
Slide 14: Term Sheet
Term Sheet Distribution Prievity Distributions are payable in priority to distrioutions on Orica ordinary shares, but behind existing Santos FUELS Orica preference shares. Where an Orica SPS Distribution is not paid, Orica may not declare or pay any dividends, pay any interest, or distribute any inc
Slide 15: Term Sheet
Term Sheet Options for Orica at a Remarketing Date On the first Remarketing Date Orica may: Change certain terms and set a new Margin through a Remarketing Process; Repurchase or Convert the SPS; or Increase the Distribution Rate to the Step-up Margin (2.25% above the Margin before the Remarketing D
Slide 16: Term Sheet
Term Sheet Gospaiabie Seoul Orica may repurchase or Convert {at its option} some or all of the Orica SPS upon: Australand ASSETS lesuer Repurch: and Gorversian Any Remarketing Date: Rights Any Distribution Payment Date occurring after an unsuccessful Remarketing Process; The occurrence of an Account
Slide 17: Term Sheet
Term Sheet Repurchase Considerations It is Orica's intention to retain the Orica SPS as a permanent component of Orica’s capital None structure unless: a} Orica believes a Repurchase of the Orica SPS wouid not result in Orica’s senior unsecured credit rating falling from the rating that applied one
Slide 18: Selected Financial Ratios
Selected Financial Ratios Pro forma combined historical EBITDA for 2005 $636 million Distribution on Orica SPS © $28 million Interest expense 2 $117 million Interest Coverage (EBITDA / Interest Expense) 5.4x Distribution Coverage (EBITDA / Interest Expense + Distribution on Orica SPS} © 44x {1} Annu
Slide 19: Offer Timetable
Offer Timetable Orica SPS prospectus lodged 7 February Institutional and Broker-Firm Roadshow 7 —9 February Institutional and Broker-Firm Bookbuild (fo determine Margin} 15 — 16 February Margin announced and Replacement Prospectus lodged 17 February Opening date of General, Shareholder Priority and
Slide 20: Contacts
Contacts + Orica Limited . Noel Meehan Executive Director Finance (03) 9665 7180 . Frank Micallef General Manager - Treasury and Investor Relations (03) 9665 7844 * Chtigroury . Jason Murray Citigroup Global Markets Australia (02) 8225 6030 . David Bailey Citigroup Global Markets Australia (02) 225