ORICA LIMITED — Annual Report 2007

Nov 11, 2007

==> picture [178 x 54] intentionally omitted <==

Full Year Results Announcement 12 November 2007

==> picture [128 x 128] intentionally omitted <==

==> picture [128 x 129] intentionally omitted <==

==> picture [129 x 128] intentionally omitted <==

==> picture [129 x 129] intentionally omitted <==

Presentation outline

==> picture [162 x 100] intentionally omitted <==

• Group performance Graeme Liebelt

• • Divisional performance Noel Meehan

• • Capital management Noel Meehan

• • 2008 priorities Graeme Liebelt

• • Outlook Graeme Liebelt

2

Orica Full Year Results 2007

Group performance

Year ended 30 September (A$M)	2007	2006	%�
Sales	5,527.2	5,359.2	3.1�
Gross margin	2,474.0	2,125.2	16.4�
EBITDA	995.9	814.6	22.3�
EBIT	812.7	657.7	23.6�
Net profit after tax pre significant items	497.8	380.3	30.9�
Net profit after tax after significant items	487.7	539.1	9.5�
Operating Cashflow	524.3	413.9	26.7�
Productivity (%)3	69.8	72.8	4.1�
Earnings per share (cents)1	152.6	126.4	20.7�
Dividends per share (cents)	89.0	74.0
Return on shareholders funds (%)1	19.2	19.3	0.5�
Gearing (%)2	33.2	10.2

1 Pre significant items

2 Net debt/net debt + book equity

3 Productivity measured as total fixed costs as a percentage of gross margin

3

Orica Full Year Results 2007

Divisional EBIT

Year ended 30 September (A$M)	2007	2006	%�
Mining Services	575.1	412.0	39.6�
Minova 1	61.6	-	-
Consumer Products2	101.6	97.3	4.4�
Chemical Services	68.7	67.1	2.4�
Chemnet	58.7	57.7	1.7�
Fertilisers	-	74.3	100.0�
Total Businesses	865.7	708.4	22.2�
Corporate Centre	(39.3)	(36.3)	8.3�
Other Support Costs	(13.7)	(14.4)	4.9�
Total EBIT	812.7	657.7	23.6�

1 For nine months from 1 January 2007 and inclusive of $7M AIFRS acquisition accounting entries in 2007

2 Inclusive of $10M Yates restructuring provision and $4M environmental provision in 2007

4

Orica Full Year Results 2007

EBIT growth

==> picture [494 x 318] intentionally omitted <==

----- Start of picture text -----

A$M
900 62
850
78
813
800 (80)
95
750
700
658
650
600
FY06 EBIT Ex-Dyno Underlying Minova Divested FY07 EBIT
Business Businesses
Growth
----- End of picture text -----

5

Orica Full Year Results 2007

Significant items

Year ended 30 September 2007	(A$M)
Restructuring & rationalisation – Marplex 1	(16.4)
Dyno Nobel expenditure – integration costs	(33.4)
Adhesives & Resins profit on sale	23.7
Tax indemnity – Crop Care	16.0
Total significant items after tax and minority interests	(10.1)

1 Includes restructuring costs and goodwill impairment charge

6

Orica Full Year Results 2007

Divisional return on net assets (RONA)

Year ended	RONA (%)	RONA (%)	Average Net Assets ($)	Average Net Assets ($)
30 September	2007	2006	2007	2006
Mining Services	25.6	25.1	2,245.6	1,644.2
Minova 1	10.1	-	905.6	-
Consumer Products2	43.7	44.4	232.6	219.2
Chemical Services3	17.4	17.7	394.2	379.7
Chemnet 4	16.9	15.4	346.4	375.6

1 Inclusive of $7M AIFRS acquisition accounting entries in 2007. RONA calculation is based on annualising 2007 EBIT, after adjusting for the one-off acquisition accounting adjustment. Net assets are as at 30 September 2007

2 Inclusive of $10M Yates restructuring and environmental provision in 2007

3 Inclusive of MIEX costs

4 Marplex goodwill impairment charge has been added back to operating net assets

7

Orica Full Year Results 2007

Return on shareholders’ funds

==> picture [652 x 326] intentionally omitted <==

----- Start of picture text -----

30%
25.5%
23.9%
25%
19.6% 19.3% 19.2%
20% 18.0%
15%
10%
4.5%
5%
0%
2001 2002 2003 2004 2005 2006 2007
----- End of picture text -----

8

Orica Full Year Results 2007

Orica’s approach – value drivers

==> picture [158 x 19] intentionally omitted <==

==> picture [314 x 31] intentionally omitted <==

==> picture [361 x 10] intentionally omitted <==

==> picture [313 x 31] intentionally omitted <==

==> picture [157 x 19] intentionally omitted <==

9

Orica Full Year Results 2007

SH&E - Safety

Year ended 30 September	2007	2006
AWRCR1	0.60	0.57
Distribution Incidents	28	18
Fatalities2	29	4

• 1 All Worker Recordable Case Rate is calculated as the number of injuries and illnesses per 200,000 hours worked

2 There were two fatal incidents during the year – Chile (1) and Mexico (28)

10

Orica Full Year Results 2007

Gross margin growth

==> picture [623 x 326] intentionally omitted <==

----- Start of picture text -----

A$M
2,600
16.4%
2,400
7.6%
2,200
4.3%
2,000
13.9%
1,800
8.2% 0.1%
6.1%
1,600
1,400
1,200
1,000
2001 2002 2003 2004 2005 2006 2007
----- End of picture text -----

Cumulative average growth rate since 2001 is 8.3%

11

Orica Full Year Results 2007

Productivity

==> picture [586 x 335] intentionally omitted <==

----- Start of picture text -----

100%
95%
91.8%
90%
85%
78.9%
80%
75.1%
74.0% 73.2% 72.8%
75%
69.8%
70%
65%
60%
55%
50%
2001 2002 2003 2004 2005 2006 2007
----- End of picture text -----

Productivity is measured as fixed costs (incl. depreciation and amortisation) as a percentage of gross margin.

12

Orica Full Year Results 2007

Net profit after tax

==> picture [691 x 374] intentionally omitted <==

----- Start of picture text -----

A$M
+30.9%
500
+11.9%
400
+4.4%
+20.5%
+13.0%
300
+283.8%
200
100
0
2001 2002 2003 2004 2005 2006 2007
----- End of picture text -----

Cumulative average growth rate since 2001 is 41.4%

13

Orica Full Year Results 2007

==> picture [162 x 91] intentionally omitted <==

Divisional performance

Orica Mining Services

	Year ended 30 September (A$M)	2007	2006	%�
	Sales	3,111.2	2,620.9	18.7�
	EBITDA	697.9	506.0	37.9�
	~~EBITDA margin (%)~~	~~22.4~~	~~19.3~~	~~16.1�~~
	EBIT	575.1	412.0	39.6�
	~~EBIT margin (%)~~	~~18.5~~	~~15.7~~	~~17.8�~~
	Return on net assets (%)	25.6	25.1
	Average operating net assets	2,245.6	1,644.2

Record result for Mining Services – 40% EBIT growth

15

Orica Full Year Results 2007

Orica Mining Services

Sales $3,111M; EBIT $575M; Average Net Assets $2,246M; RONA 26%

==> picture [644 x 213] intentionally omitted <==

----- Start of picture text -----

A$M
700 20%
700
18%
600
16% 650 35
500 14% 49
12% 600 (29)
400 (18) 575
10% 53 (17) (5)
300 550
8%
200 6% 95
500
4%
100
2% 450
0 0% 412
2004 2005 2006 2007 400
1st Half EBIT 2nd Half EBIT EBIT MARGIN 350 FY06 EBIT Dyno Net Variable Price / Fixed Depn FX Other FY07
Volume Costs Mix Costs EBIT
EBIT A$M
EBIT MARGIN
----- End of picture text -----

• Record result

• EBIT growth 40%

• Dyno integration continues successfully

• Robust volumes across most regions

• Improved variable cost recovery

• Continued growth and contribution from value adding technologies

• EBS expansion project progressing well

• Completed small bolt on acquisitions

• Fixed cost increase to support business growth

• Increased depreciation/amortisation charge on higher asset base

• Negative foreign exchange impact on earnings

16

Orica Full Year Results 2007

Orica Mining Services by geography

==> picture [582 x 398] intentionally omitted <==

----- Start of picture text -----

Australia/Asia North America
350 24% 90 12%
22% 80
300 20% 10%
70
18%
250
16% 60 8%
200 14% 50
12% 6%
150 10% 40
8% 30 4%
100
6% 20
50 4% 10 2%
2%
0 0% 0 0%
2004 2005 2006 2007 2004 2005 2006 2007
1st Half EBIT 2nd Half EBIT EBIT Margin 1st Half EBIT 2nd Half EBIT EBIT Margin
Latin America EMEA
90 18% 100 18%
80 16% 16%
70 14% 80 14%
60 12% 12%
60
50 10% 10%
40 8% 8%
40
30 6% 6%
20 4% 20 4%
10 2% 2%
0 0% 0 0%
2004 2005 2006 2007 2004 2005 2006 2007
1st Half EBIT 2nd Half EBIT EBIT Margin 1st Half EBIT 2nd Half EBIT EBIT Margin
EBIT A$M EBIT A$M
EBIT MARGIN EBIT MARGIN
EBIT A$M EBIT A$M
EBIT MARGIN EBIT MARGIN
----- End of picture text -----

17

Orica Full Year Results 2007

Acquired ex Dyno business performance

	EBIT (A$M)	2007
	~~Underlying trading performance of Ex Dyno Businesses~~	~~59.7~~
	~~Synergies delivered~~	~~70.4~~
	~~Amortisation of intangibles~~	~~(8.9)~~
	~~2007 EBIT~~	~~121.2~~

	Synergy Benefit (A$M)	2007	2008	2009
	~~Current View~~	~~70~~	90	~~90~~
	~~March 2007~~	~~50-60~~	80-90	~~90~~

18

Orica Full Year Results 2007

Acquired ex Dyno business - integration costs

	Integration cost category (A$M)	2006 Actual	2007 Actual	Cumulative Actual
	~~Asset write-offs – non cash~~	~~45~~	~~7~~	~~52~~
	~~Redundancies~~	~~41~~	~~5~~	~~46~~
	~~Transitional salaries/other~~	~~7~~	~~6~~	~~13~~
	~~Synergy implementation costs~~	~~4~~	~~10~~	~~14~~
	~~Total Integration costs~~	~~97~~	~~28~~	~~125~~
	~~Project office costs (acquisition costs)1~~	~~18~~	~~16~~	~~34~~
	~~Total significant items (pre tax)2~~	~~115~~	~~44~~	~~159~~

1 Project office costs relate to the integration team

2 Movement between 2006 actual costs and 2007 YTD costs are recognised in the financial statements as a significant item

Integration costs on track with budget Project office costs complete Final manufacturing rationalisation costs to come

19

Orica Full Year Results 2007

Minova

	Nine months ended 30 September (A$M)	2007
	Sales	332.1
	EBITDA	75.1
	~~EBITDA margin (%)~~	~~22.6~~
	EBIT	61.6
	~~EBIT margin (%)~~	~~18.5~~
	Underlying EBIT1	68.2
	Return on net assets (%)2	10.1
	Average operating net assets	905.6

1 Underlying EBIT excludes the $6.6M one-off acquisition accounting adjustment.

2 RONA calculation is based on annualising 2007 EBIT, excluding the one-off acquisition accounting adjustment of $6.6M.

Underlying EBIT growth 12%

20

Orica Full Year Results 2007

Minova

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

==> picture [387 x 243] intentionally omitted <==

----- Start of picture text -----

A$M
80
75 3
10
70
(7)
65
62
61 (4)
(1)
60
55
50
FY06 Business Cost AIFRS Acq FX Amortisation FY07 EBIT
Pro-rata Growth Synergies Accounting
EBIT Adj
----- End of picture text -----

• Underlying EBIT growth of 12%

• Robust mining volumes in most markets

• Civil tunnelling project activity in Europe and South East Asia

• Cost synergies being delivered

• All senior management retained

• Result includes AIFRS one off acquisition accounting adjustment of $7M

• Negative impact of foreign exchange on translation of $4M

• Results include $13M of depreciation and amortisation charges (higher than initial estimates)

21

Orica Full Year Results 2007

Chemical Services

	Year ended 30 September (A$M)	2007	2006	%�
	Sales	425.1	477.0	10.9�
	EBITDA	87.8	85.0	3.3�
	~~EBITDA margin (%)~~	~~20.7~~	~~17.8~~	~~15.9�~~
	EBIT	68.7	67.1	2.4�
	~~EBIT margin (%)~~	~~16.2~~	~~14.1~~	~~14.9�~~
	Underlying EBIT1	65.8	59.1	11.3�
	Return on net assets (%)	17.4	17.7
	Average operating net assets	394.2	379.7

1 Underlying EBIT excludes earnings from the Adhesives and Resins businesses.

Underlying EBIT up 11%

22

Orica Full Year Results 2007

Chemical Services

Sales $425M; EBIT $69M; Average Net Assets $394M; RONA 17%

==> picture [643 x 207] intentionally omitted <==

----- Start of picture text -----

A$M
80 18% 80 2
70 16% 4
60 14% 75 6
(5)
12%
50 70 69
10% (4)
40 67 (1)
8%
30 65
6%
20 4% 60
10 2%
0 0% 55
2004 2005 2006 2007
50
FY06 EBIT Mining Miex Watercare A&R Watercare Watercare FY07 EBIT
1st Half EBIT 2nd Half EBIT EBIT MARGIN Chemicals Acquisitions - Drought - Variable
Growth Impact Cost Increase
EBIT A$M
EBIT MARGIN
----- End of picture text -----

• Strong growth in Mining Chemicals

• Acceptance of MIEX® technology continues to increase

• Investment in Yarwun sodium cyanide uprate completed on time

• Increased capability in water treatment by acquisition

• Loss of A&R earnings following divestment (profit on sale of $24M recognised as significant item)

• Watercare impacted by ongoing drought enforced water restrictions

• Increases in variable costs in the first half in the Watercare business - these costs are now being recovered

23

Orica Full Year Results 2007

Chemnet

	Year ended 30 September (A$M)	2007	2006	%�
	Sales	927.7	987.4	6.0�
	EBITDA	66.4	66.0	0.6�
	~~EBITDA margin (%)~~	~~7.2~~	~~6.7~~	~~7.1�~~
	EBIT	58.7	57.7	1.7�
	~~EBIT margin (%)~~	~~6.3~~	~~5.8~~	~~8.3�~~
	Return on net assets (%)	16.9	15.4
	Average operating net assets	346.4	375.6

Underlying EBIT in line with pcp

24

Orica Full Year Results 2007

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

==> picture [638 x 211] intentionally omitted <==

----- Start of picture text -----

A$M
90 12% 75
80 1
1
70 10% 70 11
60 8% 65
50
6%
40 60 58 59
(12)
30 4%
55
20
2%
10 50
0 0%
45
2004 2005 2006 2007
40
1st Half EBIT 2nd Half EBIT EBIT MARGIN FY06 EBIT Fixed Latin Profit on Net Volume FY07 EBIT
Cost America Asset Sale Reduction
Reduction
EBIT A$M
EBIT MARGIN
----- End of picture text -----

• Restructure has delivered cost benefits

• Investment in sales and supply chain initiatives

• Latin America progressing well – increased to 100% ownership

• Established bulk acid tank in Northern Territory

• Lower volumes due to downturn in manufacturing markets and customers going direct

• Increased competitive pressures

• Performance of Marplex disappointing – restructuring costs and goodwill impairment charges of $16.4M included in significant items

• Divested small non-core businesses

25

Orica Full Year Results 2007

Orica Consumer Products

	Year ended 30 September (A$M)	2007	2006	%�
	Sales	826.3	785.0	5.3�
	EBITDA	116.3	111.5	4.3�
	~~EBITDA margin (%)~~	~~14.1~~	~~14.2~~	~~0.9�~~
	EBIT	101.6	97.3	4.4�
	~~EBIT margin (%)~~	~~12.3~~	~~12.4~~	~~0.8�~~
	Underlying EBIT1	111.1	97.3	14.2�
	Return on net assets (%)	43.7	44.4
	Average operating net assets	232.6	219.2

1 Excludes the one-off Yates restructuring provision.

Record result Underlying EBIT up 14%

26

Orica Full Year Results 2007

Orica Consumer Products

Sales $826M; EBIT $102M; Average Net Assets $233M; RONA 44%

==> picture [658 x 231] intentionally omitted <==

----- Start of picture text -----

A$M
120 14%
125
11
12%
100 120
80 10% 115 (4) (1)
13
8% 110
60
6% 105 (10) 102
40 4% 100 (4)
97
20 2% 95
90
0 0%
2004 2005 2006 2007 85
1st Half EBIT
Yates Restructure Impact 80
2nd Half EBIT EBIT Margin FY06 Volume Price Marketing & Other Yates Env. FY07 EBIT
Reported EBIT Margin EBIT /Mix Development Restructure Provision
Projects
EBIT A$M
EBIT MARGIN
----- End of picture text -----

• Record result, driven by growth in most Australian markets and market share gains in all business units

• Led by performance of the Australian paints business and a record result from Selleys

• Increased spend on marketing, innovation and growth projects

• Provision to restructure the Yates business

• Environmental provision for remediation of Padstow, NSW

• Continued investment in brands is delivering EBIT

• Yates restructure progressing well

• Increasing presence in Asia

27

Orica Full Year Results 2007

Corporate centre and other support services

	Year ended 30 September (A$M)	2007	2006	$�
	Corporate centre costs	39.3	36.3	3.0�
	Other support costs	13.7	14.4	0.7�
	~~TOTAL COSTS~~	~~53.0~~	50.7	~~2.3�~~

• Qenos doubtful debt provision reversal ($8M) – non-recurring

• Improved net insurance result ($9M)

• Takeover defence and unsuccessful M&A bid costs ($13M)

• Increased remuneration due to the new Key Executive Retention Plan ($3M)

• Operating costs of Botany Groundwater Treatment plant ($7M)

28

Orica Full Year Results 2007

Capital management - highlights

Year ended 30 September	2007	2006
Net Debt1(A$M)	1,305.7	302.1
Net Interest expense (A$M)	122.6	92.2
Interest Cover (times)	6.6	7.1
Cash Conversion2 (%)	63.8	52.5
Rolling TWC to Sales (%)	14.8	16.6
Gearing (%)	33.2	10.2
Gearing adjusted (%)3	39.6	18.4
Share Buyback (A$M)	114.8	84.7

1 2006 year end net debt position reflected benefit of proceeds on disposal of IPL and was prior to the acquisition of Minova. 2 Cash conversion is calculated as EBITDA add/less movement in working capital less sustenance capital spend. 3 Gearing recalculated with Hybrid shares notionally reclassified as 50% equity and 50% debt

29

Orica Full Year Results 2007

Cashflow

	Year ended 30 September (A$M)	2007	2006	$�
	EBITDA	995.9	814.6	181.3�
	Net interest paid	(108.3)	(90.3)	18.0�
	Net tax paid	(141.4)	(101.6)	39.8�
	Trade working capital movement	(49.2)	(212.6)	163.4�
	Non trade working capital movement	(172.7)	3.8	176.5�
	Net operating cash flows	524.3	413.9	110.4�
	Sustenance capital	(138.8)	(178.5)	39.7�
	Growth capital	(198.2)	(208.5)	10.3�
	Acquisitions	(958.3)	(889.0)	69.3�
	Divestments	123.5	899.9	776.4�
	Net investing cash flows	(1,171.8)	(376.1)	795.7�
	Equity movements	(127.7)	949.3	1,077.0�
	Debt	459.0	-	459.0�
	Dividends/distributions	(306.5)	(192.1)	114.4�
	Net financing cash flows	24.8	757.2	732.4�
	~~TOTAL~~	~~(622.7)~~	~~795.0~~	~~1,417.7�~~

30

Orica Full Year Results 2007

Net debt and gearing

==> picture [636 x 276] intentionally omitted <==

----- Start of picture text -----

Target gearing range shaded
1,600 50
1,400
40
1,200
30
1,000
800
20
600
10
400
200 0
HY01 FY01 HY02 FY02 HY03 FY03 HY04 FY04 HY05 FY05 HY06 FY06 HY07 FY07
%
Adjusted Gearing
Net Debt (A$M)
and
Gearing
----- End of picture text -----

Accounting gearing 33.2% Adjusted gearing 39.6% (SPS securities notionally 50% debt and 50% equity)

31

Orica Full Year Results 2007

Cash Conversion[1]

==> picture [559 x 352] intentionally omitted <==

----- Start of picture text -----

100%
87.8%
90%
80%
75.2%
70.2%
68.1%
70%
62.2% 63.8%
60%
52.5%
50%
40%
2001 2002 2003 2004 2005 2006 2007
----- End of picture text -----

1 Cash conversion is calculated as EBITDA add/less movement in working capital less sustenance capital spend.

32

Orica Full Year Results 2007

Rolling TWC to Sales %

==> picture [584 x 371] intentionally omitted <==

----- Start of picture text -----

25.0%
TWC Project started May 2006
20.0%
15.0%
10.0%
5.0%
Continuous improvement
Reduced from 17.5% in May 2006 to 14.8% in 2007
Sept'01 Sept'02 Sept'03 Sept'04 Sept'05 Sept'06 Sept'07
----- End of picture text -----

33

Orica Full Year Results 2007

Capital expenditure

==> picture [649 x 356] intentionally omitted <==

----- Start of picture text -----

160 120%
140 100%
120 80%
100 60%
80 40%
60 20%
40 0%
2001 2002 2003 2004 2005 2006 2007
Sustenance % of Depreciation
as a % of depreciation
Sustenance Spend A$M
----- End of picture text -----

Sustenance capital $139M and Depreciation $153M in 2007

34

Orica Full Year Results 2007

Capital management - 2008

• 2008 Focus – cash generation

• Restoring gearing to our target range

• Credit Rating – committed to BBB+

35

Orica Full Year Results 2007

Results summary - 2007

• Record result

• Quality of underlying earnings

• Growth and productivity

• Margin improvement

• Cash conversion

36

Orica Full Year Results 2007

==> picture [162 x 91] intentionally omitted <==

2008 priorities

Growth priorities

Business	Strategic growth opportunity	Strategic growth opportunity
Mining Services	-	Organic and geographic growth – resource cycle
	-	Lowest cost AN sourcing
	-	Electronic blasting systems (EBS)
	-	Enhanced product offerings
	-	Small bolt-on M&A
Minova	-	Integration of Excel – deliver the synergies
	-	Organic/M&A opportunities
Consumer Products	-	Continued investment in marketing and R&D
	-	Organic growth in Asia
Chemical Services	-	Capitalise on expanded sodium cyanide capacity
	-	Increasing water treatment capability
	-	Advanced Water Technologies (MIEX)
Chemnet	-	Organic sales and margin growth
	-	Supply chain optimisation/strategic sourcing

38

Orica Full Year Results 2007

Excel acquisition

• Strategy behind the acquisition:

• Complementary to Minova

• Resource sector growth

• Underground mining growth

• Safety focus

• Established 2 teams to deliver the synergies - commercial and operational

• Tax and finance structuring synergies already delivering

• Business will continue to report separately to CEO

39

Orica Full Year Results 2007

Productivity priorities

• Each business is responsible and accountable for improving productivity

• Ongoing integration of ex Dyno businesses

• Increasing utilisation of Six Sigma

• Complete Yates restructure

40

Orica Full Year Results 2007

Culture priorities

• Roll out Deliver the Promise to Minova and Excel

• Investment in our people:

– INSEAD program

• Ongoing roll out of development plans

– Graduate program – expanding internationally

41

Orica Full Year Results 2007

SH&E - Environmental

• Botany

• Groundwater Treatment Plant - operating well

– Plume is contained

– Recycled water being utilised

• Hexachlorobenzene

• Appeal process

• No other significant matters identified in current year

42

Orica Full Year Results 2007

SH&E - Sustainability

• Challenge 2010 targets well established

• Carbon Trading manager appointed

• Working on solutions globally as markets continue to evolve

• Initiatives being developed to reduce emissions from major manufacturing facilities

43

Orica Full Year Results 2007

Outlook

Subject to global economic conditions, we expect Group net profit (before significant items) in 2008 to be higher than that reported in 2007. This is a result of an additional three months contribution from Minova, 11 months contribution from Excel Mining Systems and improved earnings across the other businesses.

44

Orica Full Year Results 2007

==> picture [162 x 91] intentionally omitted <==

Supplementary information

EBIT contribution by business platform[1]

==> picture [284 x 225] intentionally omitted <==

----- Start of picture text -----

September 2006 [2]
Chemnet
9%
Chemical
Services
11%
Consumer
Products
Mining
15%
Services
65%
----- End of picture text -----

==> picture [284 x 226] intentionally omitted <==

----- Start of picture text -----

September 2007 [3,4]
Chemnet
Chemical
Services 7%
8%
Minova
9%
Mining
Consumer
Services
Products
64%
12%
----- End of picture text -----

1 Excludes corporate costs

2 September 2006 EBIT excludes earnings from IPL

3 Minova earnings adjusted to reflect 12 months contribution

4 OCP excludes one-off Yates restructuring provision

46

Orica Full Year Results 2007

Gross sales by geography

==> picture [608 x 231] intentionally omitted <==

----- Start of picture text -----

September 2006 [1] September 2007
Europe
Europe
7%
Asia 13%
8%
Asia
8%
Latin America
10% Australia Australia
49% Latin America 45%
12%
North America
17%
North America
New Zealand 15% New Zealand
9% 7%
----- End of picture text -----

1 September 2006 sales exclude IPL

47

Orica Full Year Results 2007

Net interest expense

	Year ended 30 September (A$M)	2007	2006	$�
	Net interest expense	123	92	31�
	Comprising:
	~~Interest on net debt~~	~~113~~	~~101~~	~~12�~~
	~~Less: Capitalised interest~~	~~(1)~~	~~(14)~~	~~13�~~
	~~Add: Unwinding of discount on provisions~~	~~11~~	~~5~~	~~6�~~
	Net interest expense	123	92	31�
	Interest on net debt calculated as:
	Average net debt (throughout year)1	1,561	1,520
	Average interest rate (throughout year)2	7.2%	6.6%
	~~Interest on Net Debt~~	~~113~~	~~101~~

1 This is significantly higher than the average of the period ending net debt balances, due to normal intra-month and seasonal cash flow patterns.

• 2 The average interest rate was impacted in 2006 by large cash balances while maintaining normal long term debt levels.

48

Orica Full Year Results 2007

Impact of Excel – gearing (A$M)

		Rating	Pro-forma
		Agency	Post Excel
	Current borrowings	582.7	582.7
	Non-current borrowings	1,093.7	1,868.7
	SPS adjustment2	250.0	250.0
	Less: Cash	(370.7)	(370.7)
	~~Net Debt~~	~~1,555.7~~	~~2,330.7~~
	Parent entity equity1	2,566.8	2,566.8
	Minority interests	60.8	60.8
	SPS adjustment2	(250.0)	(250.0)
	~~Net Equity~~	~~2,377.6~~	~~2,377.6~~
	Gearing	39.6%	49.5%3

1 Includes face value of SPS of $500M as equity

2 Adjustment is for 50% of the face value of SPS

3 Pro forma gearing is calculated as at 30 September 2007

49

Orica Full Year Results 2007

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.

50

Orica Full Year Results 2007

Impact of SPS – earnings per share

			Reported
			per Accounts
			A$M
		Reported net profit from continuing operations	513.4
		Less:
		Net profit attributable to minorities	(25.7)
		After tax distributions to SPS holders1	(30.5)
		~~Adjusted net profit~~	~~457.2~~
		Weighted average ordinary shares on issue	306.3
		~~Earnings per share – cents per share~~	~~149.3~~
1		Distributions paid during the year totalled $44.4M. The initial
		distribution was for the period 15 March 2006 to 30 November 2006.
		The tax adjustment is based on interest expense for the 12 months
		ended 30 September 2007.

51

Orica Full Year Results 2007

Impact of SPS – gearing (A$M)

		Reported per	Rating
		Accounts	Agency
	Current borrowings	582.7	582.7
	Non-current borrowings	1,093.7	1,093.7
	SPS adjustment2	-	250.0
	Less: Cash	(370.7)	(370.7)
	~~Net Debt~~	~~1,305.7~~	~~1,555.7~~
	Parent entity equity1	2,566.7	2,566.7
	Minority interests	60.9	60.9
	SPS adjustment2	-	(250.0)
	~~Net Equity~~	~~2,627.6~~	~~2,377.6~~
	Gearing	33.2%	39.6%

1 Includes face value of SPS of $500M as equity

• 2 Adjustment is for 50% of the face value of SPS

52

Orica Full Year Results 2007

Impact of SPS – interest cover (A$M)

		Reported per	Rating
		Accounts	Agency
	Financial expense	157.4	157.4
	Financial income	(34.8)	(34.8)
	SPS distribution adjustment1	-	19.5
	~~Net borrowing costs~~	~~122.6~~	~~142.1~~
	EBIT	812.7	812.7
	Less net profit attributable to minorities	-	(25.7)
	~~Adjusted EBIT~~	~~812.7~~	~~787.0~~
	Interest Cover (times)	6.6	5.5

• 1 Represents 50% of the SPS distribution for the period 1 October 2006 to 30 September 2007 calculated as follows: face value of SPS x (BBSW +1.35%) x number of days

53

Orica Full Year Results 2007

Debt maturity – long term debt

==> picture [553 x 310] intentionally omitted <==

----- Start of picture text -----

A$M
300
275
250
225
200 USD
175 NZD
150 EUR
125 CAD
100 AUD
75
50
25
0
2008 2009 2011 2013 2015 2016 2017 2019
----- End of picture text -----

Average term of debt is approximately 7 years

• NB: The time scale on the table above is not linear, as some years have no debt repayment so have been excluded from the analysis. This maturity profile excludes debt facilities associated with acquisition of Excel and SPS securities.

54

Orica Full Year Results 2007

Foreign currency - snapshot

Material exposures include:

Offshore EBIT (Translation) Transactional Exposures

• •

• North America AUD/USD

• • • Europe USD/LATAM region

• • • New Zealand USD/CAD

• • • LATAM NZD/USD

• • • Nordics NOK/SEK

Net impact of a 1% move in exchange rates on a diversified basket of currencies is approximately A$3.0M

Acquisition of Minova and Excel have increased Orica’s currency exposure

55

Orica Full Year Results 2007