Dyno Nobel (DNL) Investor Showcase 2024 summary

Strategic direction and transformation

• Ambition to double Dyno Nobel EBIT (from FY23 base of -A$300m) within 3–4 years and achieve ROIC above WACC of 8.5%, driven by a transformation program and capital discipline, through a three-phase plan: separation, transformation, and consolidation.

• Transformation initiatives target 40–50% of full expected earnings uplift by end of FY25, with ~15–20% of value already delivered in FY24.

• The separation of the fertilizer business remains a top priority, with a full review of assets underway and an update expected at the full year results in November, aiming to unlock value and reduce earnings volatility.

• Consolidation phase will focus on growth aligned with strict ROIC criteria, leveraging technology and customer relationships to expand in core and new markets.

• Rebranding to Dyno Nobel is planned to reflect the strategic focus on explosives and global leadership ambitions.

Market positioning and growth

• Dyno Nobel is a leading global explosives provider, with #1 market share in North America and #2 in Australia, expanding in LATAM and EMEA through capital-light, modular plant models.

• Market shift toward metals and away from thermal coal is driving growth in differentiated, higher-margin products.

• Recent major account wins, such as a global supply agreement with AngloGold Ashanti, support expansion in Africa, LATAM, and North America.

• Customer base is global and diverse, with strong relationships in mining, construction, and quarrying sectors.

• Joint ventures and distributor networks in the US provide market intimacy, risk mitigation, and real-time feedback, supporting agility and tailored service delivery.

Technology, operations, and sustainability

• Proprietary technologies (e.g., Differential Energy, DigiShot, NobelFire) and digital platforms drive safety, efficiency, and customer value, with strong growth in premium emulsions and electronic detonators.

• Customer-centric innovation drives value, with tailored solutions for mining, quarry, and construction sectors, and a focus on expanding high-value, differentiated offerings.

• Operational excellence initiatives have reduced unplanned losses, improved reliability, and reduced costs at key plants, supporting EBIT growth.

• Sustainability leadership recognized by S&P Global, FTSE4Good, and Sustainalytics, with significant progress on emissions abatement projects at Moranbah and LOMO, targeting a 41% reduction in Scope 1 and 2 emissions by 2030 and up to 30% GHG reduction by 2025.

• Safety remains the core value, with industry-leading standards, continuous learning from past incidents, and a proactive approach to risk management.