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US PP Conference Orica Presentation

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US PP Conference Orica Presentation

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    2. 2 Group performance

    3. 3 Divisional EBIT

    4. 4 EBIT growth

    5. 5 Orica’s approach – value drivers

    6. 6 Gross margin growth

    7. 7 Productivity

    8. 8 Net profit after tax

    9. Divisional performance

    10. 10 Orica Mining Services

    11. 11 Orica Mining Services Sales $3,111M; EBIT $575M; Average Net Assets $2,246M; RONA 26%

    12. 12 Orica Mining Services by geography

    13. 13 Acquired ex Dyno business performance The 26.1M for Dyno does not match profit report number of 26.5M Fix formattingThe 26.1M for Dyno does not match profit report number of 26.5M Fix formatting

    14. 14 Acquired ex Dyno business - integration costs Brand write off $8.9M included in asset write offs Other is stranded costs of $3M Brand write off $8.9M included in asset write offs Other is stranded costs of $3M

    15. 15 Minova

    16. 16 Minova Sales $332M; EBIT $62M; Net Assets $906M; Pro forma RONA 10.1%

    17. 17 Chemical Services

    18. 18 Chemical Services Sales $425M; EBIT $69M; Average Net Assets $394M; RONA 17%

    19. 19 Chemnet

    20. 20 Chemnet Sales $928M; EBIT $59M; Average Net Assets $346M; RONA 17%

    21. 21 Orica Consumer Products

    22. 22 Orica Consumer Products Sales $826M; EBIT $102M; Average Net Assets $233M; RONA 44%

    23. 23 Corporate centre and other support services

    24. 24 Capital management - highlights

    25. 25 Cashflow

    26. 26 Net debt and gearing Pro forma Minova gearing Change color of yellow barsPro forma Minova gearing Change color of yellow bars

    27. 27 Cash Conversion1

    28. 28 Rolling TWC to Sales %

    29. 29 Capital expenditure

    30. 30 Capital management - 2008 2008 Focus – cash generation Restoring gearing to our target range Credit Rating – committed to BBB+ Underwritten DRP

    31. 31 Capital Management - Portfolio Have been active over a number of years in reshaping portfolio We view the shape and composition of Orica as a continual “work in progress”

    33. 33 EBIT contribution by business platform1

    34. 34 Gross sales by geography

    35. 35 Net interest expense

    36. 36 Impact of Excel – gearing (A$M)

    37. 37 Step-Up Preference Securities (SPS) SPS treated as 100% equity for financial reporting purposes SPS distributions are treated as dividends and NOT interest EPS calculation adjusted for SPS distributions on an after tax basis Rating agencies treat SPS as 50% equity / 50% debt Income tax benefit on distributions is now credited directly to shareholders equity (previously it was credited to income tax expense). This policy applies to the 2007 financial year and subsequent years.

    38. 38 Impact of SPS – gearing (A$M)

    39. 39 Impact of SPS – interest cover (A$M)

    40. 40 Debt maturity – long term debt

    41. 41 Foreign currency - snapshot

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