Orica Limited · ASX:ORI
Orica — CLSA Investors Forum, Hong Kong 2012
22 slides from Orica's conference presentation, Sep 10, 2012
Slide 1: CLSA Investors Forum, Hong Kong
CLSA Investors Forum, Hong Kong Ian Smith, Orica Managing Director and Chief Executive Officer 10th September, 2012
Slide 2: Disclaimer
Disclaimer 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 intended to be used a
Slide 3: A Global Leader in Mining Services
A Global Leader in Mining Services 1. World’s largest provider of commercial explosives to mining and infrastructure markets with 28% global market share 2. Global leader in the provision of ground support in mining and tunneling 3. Leading global supplier of cyanide for use in gold extraction 4. Au
Slide 4: Vision and Values
Vision and Values Clever Resourceful Solutions Clever adjective skilful; talented; adroit; ingenious; quick to understand & learn Resourceful adjective full of resource; ingenious; skilful in overcoming difficulties No Accidents Today Succeed Through Collaboration Find Valuable Solutions It’s Our Bu
Slide 5: Social Responsibility
Social Responsibility • Compliance to Environmental Standards and Best Practice • Proactively working with regulatory authorities PRIORITIES • Improving engagement with communities in which we operate • Programs that will further reduce greenhouse gas emissions • Corporate Affairs and Social Respons
Slide 6: Safety Performance
Safety Performance Safety Performance 1 0.9 0.8 0.7 Frequency Rate 0.6 0.5 0.4 0.3 0.2 0.1 0 2008 2009 2010 2011 AWRCR LTIFR Australian Mining LTIFR 1. AWRCR: All Worker Recordable Case Rate, total number of recordable cases per 200,000 hours worked 2. LTIFR: Lost Time Injury Frequency Rate, total n
Slide 7: Earnings
Earnings Earnings Before Interest and Tax1 1200 1000 800 EBIT ($m) 600 400 200 0 2007 2008 2009 2010 2011 1. Excluding Individually Material Items. Excluding DuluxGroup
Slide 8: Australian Base - Global Footprint
Australian Base - Global Footprint 2011 Group EBIT • 90% of Group EBIT is generated from mining related industries including quarrying and construction • Broad mining exposure – from coal & iron ore to base & precious metals and diamonds • Wide geographic spread • Commodity and geographic diversity
Slide 9: Australian Base - Global Footprint
Australian Base - Global Footprint ~15,000 Employees Operations in 50 countries Customers in over 100 countries
Slide 10: Attractive Industry Fundamentals
Attractive Industry Fundamentals Orica supplies 4 million tonnes of bulk explosives in 500,000 blasts around the world annually. This is 10,000 tonnes in 1,500 blasts every day !
Slide 11: Attractive Industry Fundamentals
Attractive Industry Fundamentals • Growth in commodity volumes, driven by industrialisation and urbanisation • Declining ore grades and increasing strip ratios and ore-body complexity • Efficiency and productivity focus drives demand for game-changing technology, products and services
Slide 12: Attractive Industry Fundamentals: Growth in Australia (1982 – 2011)
Attractive Industry Fundamentals Growth in Australia (1982 – 2011) 1,400 1,200 Ammonium Nitrate Demand 1,000 CAGR 9.0% Index (1982 = 100) 800 600 Iron Ore & Minerals Prod. CAGR 5.8% 400 Coal Production 200 CAGR 4.4% 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Sources
Slide 13: Attractive Industry Fundamentals: Gold Production and Cyanide Demand
Attractive Industry Fundamentals Gold Production and Ore Grades Cyanide Demand 120 1.8 180 Gold Production (Index: 2006=100) 160 100 1.7 140 80 1.6 120 100 60 1.5 80 40 1.4 60 40 20 1.3 20 0 1.2 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Global Gold Production Gold Ore Grade (g/t)
Slide 14: Manufacturing Growth Pipeline
Manufacturing Growth Pipeline Concept & PFS Feasibility Execution Operation Bontang AN Plant Kurri Kurri Emulsion Plant Pt Hedland Emulsion Plant HONCE Initiation Plant Burrup AN Plant Kooragang Island AN Plant South American AN Plant Yarwun AN Plant Future Cyanide Capacity Three projects, Three stu
Slide 15: Burrup JV
Burrup JV Announced Iron Ore Production Increases North West Regions (mtpa) Storage Sites 900 15% CAGR Emulsion Plant 800 700 600 500 400 300 200 100 0 2010 2015
Slide 16: Kooragang Island Expansion
Kooragang Island Expansion • Expansion of production capacity by 300 - 350 ktpa to 720 - 770 ktpa of AN • Well positioned to meet growing demand from South Eastern Australia • All regulatory approvals have been received • Project subject to Board sanction
Slide 17: Greenhouse Gas Emission Reduction
Greenhouse Gas Emission Reduction Orica currently has projects underway to: 1. Install abatement technology at manufacturing plants that will reduce greenhouse gas emissions equivalent to removing 150,000 cars from the road. 2. Develop new carbon capture technology (Mineral Carbonation*).
Slide 18: Greenhouse Gas Emission Reduction
Greenhouse Gas Emission Reduction * Mineral Carbonation : A carbon capture technology that permanently stores CO2 by reacting it with mineral silicates. Mineral Carbonation has advantages over underground injection options: • Strong scientific fundamentals • Product is a stable and safe solid – no l
Slide 19: Greenhouse Gas Emission Reduction
Greenhouse Gas Emission Reduction Mineral Carbonation International (MCi) is a joint venture between Orica, Newcastle University & GreenMag to deliver a pilot plant and undertake Research & Development • Orica will contribute over 4-5 years • NSW & Commonwealth Governments are contributing for pilot
Slide 20: Orica GreenEDGE Cycling
Orica GreenEDGE Cycling Orica GreenEDGE Cycling will compete in more than 300 events with over 200 days of racing per year. This exposure provides excellent branding while providing opportunities for interaction with our communities, customers and suppliers.
Slide 21: Executive Structure
Executive Structure Ian Smith Chief Executive Officer Noel Meehan Andrew Larke Chief Financial Officer Global Head Strategy & Planning Trisha McEwan Ron Douglas Global Head Human Global Head Projects Resources Gavin Jackman Jez Smith Global Head Corp. Affairs Global Head Research & & Social Responsi
Slide 22: Unique Profile with Unique Opportunities
Unique Profile with Unique Opportunities • Global market leadership • Strong manufacturing position • Attractive industry fundamentals • Multiple growth opportunities • Ground breaking technology