Dyno Nobel Limited · ASX:DNL
Dyno Nobel — Investor Presentation (May 2020)
30 slides from Dyno Nobel's investor presentation, May 11, 2020
Slide 1: Equity Raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 11 May 2020 ABN 42 004 080 264 Equity Raising 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and authorised by Incitec Pivot Limited (ASX:IPL) (ABN 42 004 080 264) (“IPL” or “Incitec Pivot”) in connection with a proposed capital raising by IPL by way of an institutional placement (“Placement”) of new fully paid ordinary shares in IPL (“Placemen
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Investment risk An investment in IPL is subject to known and unknown risks, some of which are beyond the control of IPL and its directors. IPL does not guarantee any particular rate of return or the performance of IPL nor does it guarantee any particular tax treatment. You should
Slide 4: Disclaimer (cont'd)
Disclaimer (cont’d) Future performance and forward-looking statements (cont’d) Investors are strongly cautioned not to place undue reliance on forward-looking statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the CO
Slide 5: Disclaimer (cont'd)
Disclaimer (cont’d) Disclaimer (cont’d) To the maximum extent permitted by law, IPL and the Underwriters and their respective related bodies corporate and affiliates, and their respective directors, officers, partners, employees, agents and advisers: (i) disclaim all liability and responsibility (in
Slide 6: Positioning Incitec Pivot for the future
Positioning Incitec Pivot for the future Taking pre-emptive action to strengthen the Balance Sheet to increase resilience in the current environment and provide financial flexibility to pursue disciplined organic growth opportunities Pre-emptive – Fully underwritten A$600 million Institutional Place
Slide 7: Strategy unchanged and investment thesis intact
Strategy unchanged and investment thesis intact Improve shareholder value through profitable growth, underpinned by premium technology solutions for our customers and Manufacturing Excellence Prominent market Long term market Premium technology Resilient and diversified positions & strategically NOT
Slide 8: Strengthened Balance Sheet with enhanced liquidity
Strengthened Balance Sheet with enhanced liquidity Repay drawn balances of syndicated Pro forma capitalisation as at 31 March 2020 facilities, with any remaining amount held as cash on deposit Impact of Equity Pro forma1 net leverage (Net Debt2 / NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 9: Good progress on our strategy to drive long term shareholder value
Good progress on our strategy to drive long term shareholder value Zero harm, with a relentless focus on improving safety performance NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Sustain and grow market position in US Quarry & Construction sector, and further participate in Base & Precious M
Slide 10: Key offer details
Key offer details Fully underwritten Placement to raise A$600 million1 Placement – It is intended that eligible institutional shareholders who bid for up to their ‘pro rata’ share of new fully paid ordinary size and shares (New Shares) under the Placement will be allocated their full bid, on a best
Slide 11: Placement and SPP timetable
Placement and SPP timetable Event Date1 Record date for SPP 7:00pm (AEST), Friday 8 May 2020 Trading halt and announcement of Placement and SPP Monday 11 May 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Placement bookbuild Monday 11 May 2020 Announcement of outcome of Placement Tuesday
Slide 12: Appendices
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Appendices A. Risk Factors (including Underwriting Agreement Summary) B. International Offer Restrictions 12
Slide 13: Risk factors introduction
Appendix A: Risk factors This section discusses some of the key risks associated with an investment in IPL, which may affect IPL’s business, its operating and financial performance, and the value of IPL shares (including New Shares issued in connection with the Placement or SPP). Before investing in
Slide 14: Impact of COVID-19 and general economic conditions
Appendix A: Risk factors Impact of COVID-19 and general economic conditions In light of recent global macroeconomic events, including the impact of COVID-19, it is likely that some of the countries in which IPL operates will experience an economic recession or downturn of uncertain severity and dura
Slide 15: Commodity price risks
Appendix A: Risk factors Commodity price risks Pricing for fertilisers, ammonia, ammonium nitrate and certain other industrial chemicals is linked to internationally traded commodities (for example, ammonia, ammonium phosphates and urea); price fluctuations in these products could adversely affect I
Slide 16: Industry structure and competition risk
Appendix A: Risk factors Industry structure and competition risk IPL operates in highly competitive markets with varying competitor dynamics and industry structures. The actions of established or potential competitors could have a negative impact on sales and market share and hence the Group’s finan
Slide 17: Production, transportation, storage and supply risks
Appendix A: Risk factors Production, transportation, storage and supply risks Portions of IPL’s operations are inherently dangerous. IPL operates fifteen key manufacturing and assembly sites and is exposed to operational risks associated with the manufacture, transportation and storage of fertiliser
Slide 18: Labour
Appendix A: Risk factors Labour A shortage of (or inability to attract) skilled labour or loss of key personnel, Board members or senior management executives (including as a result of COVID-19 impacts, as described below) could disrupt IPL’s business operations or adversely affect IPL’s business an
Slide 19: Compliance and change in law risk
Appendix A: Risk factors Compliance and change in law risk Changes in federal or state government legislation, regulations or policies in any of the countries in which IPL operates or in which it has dealings may adversely impact its business, financial condition and operations, or the business, fin
Slide 20: Acquisition and divestment risk
Appendix A: Risk factors Acquisition and divestment risk IPL may pursue acquisitions of new assets or businesses as opportunities arise that meet its investment criteria and strategy from time to time, and if funding is available on acceptable terms. If such acquisitions are pursued, IPL would be su
Slide 21: Counterparty/credit risk
Appendix A: Risk factors Counterparty/credit risk Counterparty risks may arise in circumstances where parties with which IPL has dealings experience financial difficulties or reputational issues with consequential adverse effects, which may impact on IPL’s financial performance. In light of the COVI
Slide 22: Risks associated with the Placement and SPP
Appendix A: Risk factors RISKS ASSOCIATED WITH THE PLACEMENT AND SPP General risks associated with an investment in shares There are general risks associated with investments in equity securities. No assurances can be given that the New Shares will trade at or above the price at which they are issue
Slide 23: Liquidity risk
Appendix A: Risk factors It is also possible that new risks might emerge as a result of Australian or global markets experiencing extreme stress or existing risks may manifest themselves in ways that are not currently foreseeable. There have been in recent months, and may be in the future, significa
Slide 24: Underwriting agreement termination events
Appendix A: Risk factors An Underwriter may terminate its obligations under the Underwriting Agreement on the occurrence of certain events before 5.00pm on the settlement date (expected to be Thursday, 14 May 2020). Those events include (but are not limited to) where: • IPL ceases to be admitted to
Slide 25: Underwriting agreement termination events (cont'd)
Appendix A: Risk factors • hostilities commence (or escalate) involving any one or more of Australia, the United States of America, any member state of the European Union, Hong Kong, Singapore, Japan, Israel, North Korea, South Korea or the People’s Republic of China, or a state of emergency is decl
Slide 26: There may be changes in accounting standards
Appendix A: Risk factors There may be changes in accounting standards Accounting standards may change. This may affect the reported earnings of IPL and its financial position from time to time. IPL has previously and will continue to assess and disclose, when known, the impact of adopting new accoun
Slide 27: B: International Offer Restrictions
Appendix B: International Offer Restrictions This document does not constitute an offer of New Shares of IPL in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in the Placement, in any co
Slide 28: B: International Offer Restrictions
Appendix B: International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission
Slide 29: B: International Offer Restrictions
Appendix B: International Offer Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or mat
Slide 30: B: International Offer Restrictions
Appendix B: International Offer Restrictions United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Ma