Annual Report
2024
We acknowledge the Traditional Owners
of the lands upon which we operate and
recognise their continuing connection
to land, waters, and culture. We pay our
respects to their Elders past and present.
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Incitec Pivot Limited Annual Report 2024
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Incitec Pivot Limited Annual Report 2024
CONTENTS
CONTENTS
ABOUT US
4
Key Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Who We Are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
IPL Strategy Snapshot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
PERFORMANCE AND OUTLOOK
12
FY24 Year in Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Chair Report .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Chief Executive Officer & Managing Director Report . . . . . . . . 17
Operating and Financial Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
BEING A SUSTAINABLE BUSINESS
34
Keeping People and the Environment Safe . . . . . . . . . . . . . . . . . . . . . . . . 36
Our People and Culture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Commitment to our Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
GOVERNANCE
46
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Executive Leadership Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
FINANCIAL AND STATUTORY REPORTS
54
Directors’ Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Remuneration Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Financial Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Independent Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
ADDITIONAL INFORMATION
130
Shareholder Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Five Year Financial Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Corporate Directory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
ABOUT US
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Incitec Pivot Limited Annual Report 2024
ABOUT US
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Incitec Pivot Limited Annual Report 2024
About
Us
Our iconic brands and
advanced technology
solutions cater to
customers in agriculture,
mining, quarrying and
construction across
six continents.
ABOUT US
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Incitec Pivot Limited Annual Report 2024
ABOUT US
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Incitec Pivot Limited Annual Report 2024
Ormstown
Augusta
(Maine Drilling and Blasting)
Simsbury
New Galilee
(Wampum Hardware)
Grundy
(Vedco)
Coquimbo
Santiago
Copiapó
Rainy River
Cheyenne
Calgary
St Helens
Salt Lake City
(WESCO)
Littleton
(Buckley Powder)
Lincoln
Mojave
Carthage
Dinamita
Gomez Palacio
Guadalajara
(Grupo Nitro)
Louisiana
Cayenne
(Guyanexplo)
Biwabik
Wolf Lake
Evansville
(Warex)
Graham
CHILE
MEXICO
CANADA
US
Dyno Nobel
Corporate/Sales Office
Ammonium Nitrate
Emulsions
Initiation Systems
Explosive Services
Agricultural Products
Industrial Chemicals
Manufacturing/Distribution
Joint Ventures/Investments
Incitec Pivot Limited
Company Headquarters
Decarbonisation Project
Incitec Pivot Fertilisers
Corporate/Sales Office
Feedstock
Fertiliser Services
Agricultural Products
Industrial Chemicals
Manufacturing/Distribution
Joint Ventures/Investments
Mt Isa
Phosphate Hill
Moranbah
Curragh
Moura
(Queensland Nitrates QNP)
Noumea
(Katiramona Explosif SAS)
(Nord Sud Dynamitage Sofiter)
Werribee
Geelong
Southbank
Amailloux
Toka Tindung
Vonges
Pontailler
Jakarta
Martabe
Singapore
Port Hedland
Pilbara
Perth
Kalgoorlie
Handil
Tujuh Bukit
Berau
Melak
Ulaanbaatar
(Titanobel Mongolia)
AUSTRALIA
SINGAPORE
INDONESIA
PAPUA NEW
GUINEA
NEW
CALEDONIA
MONGOLIA
Gibson Island
Helidon
Hunter Valley
Soma
Kayseri
Ankara
TURKEY
Dakar
Douala
Cotonou
SENEGAL
CAMEROON
BENIN
SOUTH
AFRICA
FRANCE
Lihir
Pretoria
(SASOL Dyno Nobel)
(Enviro Blasting Services)
Johannesburg
(Det Net)
Key Operations
1.4
million tonnes
ammonium nitrate
produced
0
significant
environmental
incidents
2.7
million tonnes
fertiliser sold
over
5,600
employees worldwide
operations across
6
continents
3.1%
Australian First Nations
employees in our
Australian workforce
ABOUT US
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Incitec Pivot Limited Annual Report 2024
ABOUT US
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Incitec Pivot Limited Annual Report 2024
Who We Are
Incitec Pivot Limited (IPL) is a leading global manufacturer and supplier to the resources and
agricultural sectors. Our iconic brands and advanced technology solutions serve customers
in the essential industries of agriculture, mining, quarrying and construction. With over 5,600
employees worldwide, we maintain a steadfast commitment to safety, guided by our core value
of "Zero Harm for Everyone, Everywhere."
As an ASX100 company, IPL operates two industry-leading businesses: Dyno Nobel, a global leader in explosives, and Incitec Pivot
Fertilisers (IPF), a major provider of fertilisers along Australia’s east coast. Together, we maintain a robust presence across six continents,
serving customers in Australia, North America, Europe, Asia, South America, and Africa.
Sustainability and innovation are at the core of our operations. Our ambition is to achieve Net Zero operational emissions by 2050, or
sooner if practicable. Our comprehensive Net Zero Pathway outlines the technologies and enablers necessary to reduce our greenhouse
gas (GHG) emissions. Additionally, our scope 3 Pathway details strategies to lower emissions throughout our supply chain, ensuring a
holistic approach to climate responsibility.
This commitment to sustainability is intertwined with our efforts to support communities, safeguard the environment, and drive long-term
success for our business partners.
Dyno Nobel
Dyno Nobel traces its origins to the pioneering work of Alfred Nobel,
the inventor of dynamite and a key figure in the development of the
modern explosives industry. His groundbreaking innovations laid the
foundation for what would eventually become Dyno Nobel, a global
leader in explosives and technical blasting services. Today, we carry
forward Nobel's legacy of innovation, safety and reliability, providing
essential solutions to industries that drive global infrastructure,
energy and resource development.
As one of the largest industrial explosives distributors, Dyno
Nobel plays a vital role in helping customers achieve their safety,
efficiency, and sustainability goals. With major manufacturing
hubs across Australia and the US – including Cheyenne, Wyoming,
Louisiana, Missouri, and Moranbah, Queensland – we produce a
wide range of high-quality explosives and offer extensive blasting
services. Operating in markets such as Australia, Canada, the US,
Indonesia, Mexico, Chile, Papua New Guinea, Turkey and France,
we support our valued customers in mining, quarrying, and
construction.
With a deep understanding of the evolving needs of our customers,
we are committed to providing the cutting-edge solutions
necessary for their success today and in the future.
Innovation and technology
Innovation is at the core of our mission. Our advanced
technology solutions, including DIFFERENTIAL ENERGY® and
sophisticated electronic detonators like DigiShot® Plus.4G,
empower customers to tackle complex challenges. As the demand
for decarbonisation grows, Dyno Nobel is meeting the increasing
need for battery minerals and metals essential to the energy
transition. By developing new automated blasting methods and
advanced remote-loading technologies, we ensure safer, more
efficient mineral extraction for the future.
Practical and reliable solutions
Our commitment to customer satisfaction and operational
value is evident in the introduction of DYNOBULK® FLEX Mobile
Processing Units (MPUs) for our Bowen Basin customers. These
advanced MPUs are designed to optimise the transportation
and delivery of raw materials to the bench, enhancing on-bench
productivity while ensuring the explosives are tailored to suit the
specific geology and hole conditions.
Our research and development efforts focus on creating practical
innovations that address our customers’ unique needs. With
multiple centres around the world, Dyno Nobel ensures that their
advanced technologies and solutions are accessible to customers
in various regions. These centres focus on developing practical
innovations tailored to the unique challenges faced by customers.
This includes advancements in blasting methods, safety protocols,
and environmental sustainability.
From electric MPUs to solar-powered charging stations, Dyno
Nobel is dedicated to offering cutting-edge solutions that meet
both operational and environmental goals.
Global experts and collaborative partners
The development and introduction of NOBELFIRE®, a suite of
blast design and analysis software, enables our customers to
optimise blasting outcomes through physics-based fragmentation
modelling and the industry’s most accurate vibration prediction.
These innovations, combined with our global team of industry-
recognised blasting experts DYNOCONSULT™, are integrated
into DRILL TO MILL™. This tailored program delivers savings and
optimised outcomes across the entire mining value chain through
rapid operations diagnostics, opportunity identification, and
implementation that reduce costs and maximise profits.
Dyno Nobel’s future efforts will focus on further optimising energy
distribution and leveraging advanced technologies to enhance
overall efficiency, safety and profitability.
Incitec Pivot Fertilisers
As Australia’s leading fertiliser manufacturer and distributor, IPF
has proudly supported Australian agriculture for over a century.
Trusted by farmers across the country, we deliver more than 2m
tonnes of fertiliser annually, both domestically and to a diverse
international customer base, ensuring consistent supply of high-
quality nutrients backed by expert knowledge. According to the
2023 Roy Morgan Survey, IPF was voted Australia’s most trusted
brand in fertilisers and chemicals, and remained a top finalist
in 2024.
Agriculture is critical to the Australian economy, contributing
$82bn in 2023-24 and set to reach $100bn by 2030. With 239,000
people employed in this vital industry, IPF plays a significant role
in ensuring that Australian farmers remain productive and
competitive. Our efforts go beyond delivering products – we
supply essential expertise that enables sustainable and efficient
agricultural practices.
IPF’s 18 strategically placed distribution centres, including 11
in deep-water ports, ensure seamless access to our products
for farmers across the country.
We are leading the way in promoting sustainability through
our Enhanced Efficiency Fertiliser range, which helps growers
maintain yields while lowering greenhouse gas emissions linked to
nitrogen fertilisation. Liquid fertilisers are becoming an increasingly
popular choice among farmers due to their ease of storage, precise
application, and broader usage windows, and we are proud to be
at the forefront of this trend.
IPF’s key brands, such as Granulock®, SuPerfect® and our
patented nitrification inhibitor eNpower®, continue to deliver
reliable and innovative crop nutrition solutions. Our NATA-
accredited Nutrient Advantage® Laboratory and expansive
network of suppliers and agents across the east coast of Australia
ensure farmers receive expert guidance and products tailored
to improving yield and soil health. Internationally, through
IPF – Singapore, we also trade in key markets such as Asia Pacific,
the US and Latin America.
Innovation and digital transformation
IPF is committed to driving digital innovation to boost productivity
for both our business and our customers. Our Project Pulse digital
platform simplifies transactions and provides a more agile and
user-friendly tech solution for our customers. This foundation
will support future innovations, ushering in an era of increased
simplicity and self-serve capabilities, empowering our customers
with better tools and data to enhance their farming operations.
Investment in more sustainable fertilisers
At the cutting edge of agricultural research, IPF is the lead industry
partner in the $12m Australian Research Council-funded Hub
for Smart Fertilisers, aimed at developing next-generation ‘smart
fertilisers.’ This research focuses on increasing the efficiency of
nitrogen use by up to 20%, helping farmers apply less fertiliser
while reducing environmental impacts. In partnership with leading
institutions like the University of Melbourne, La Trobe University,
and Elders Rural Services, the Hub is developing revolutionary
solutions to nitrogen management, making a positive impact
on both farm productivity and environmental stewardship.
Securing Australia's agricultural future with Perdaman
Chemicals and Fertilisers for long-term urea supply
Our long-term partnership with Perdaman represents a significant
step forward for Australia’s fertiliser industry. Under a 20-year
offtake agreement, IPF will source up to 2.3m tonnes of granular
urea fertiliser annually from the $6.4bn Perdaman plant in Karratha,
Western Australia. Set to commence production by 2027, this
partnership provides a reliable local fertiliser supply, reducing
dependence on imports and strengthening Australia’s domestic
food security.
At IPF, we remain dedicated to innovation, sustainability, and
supporting Australian farmers with the solutions they need to
thrive in a changing agricultural landscape.
ABOUT US
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Incitec Pivot Limited Annual Report 2024
ABOUT US
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Incitec Pivot Limited Annual Report 2024
Strategic drivers
Our Vision
Zero Harm
Zero Harm is good business. It’s
achieved through industry leading
performance in occupational health,
personal safety, process safety and
the environment.
Talented & Engaged People
The right people with the right skills, in
the right roles working collaboratively.
This enables us to gather and capture
diverse ideas across our organisation.
Customer Focus
Deepening our customer relationships
and strategic partnerships across our
businesses ensures we can innovate
and share technologies and solutions
that improve our customers’ businesses.
Leading Technology Solutions
Improve safety, reduce environmental
impacts and create a positive social
impact, whilst increasing productivity
and efficiency in our customers’
operations.
Manufacturing Excellence
Be a world class manufacturing
organisation, delivering personal and
business growth. Achieved through
Zero Harm, reliable operations and
being cost competitive.
Profitable Growth
Focused on growth opportunities that
are distinctive to our differentiated
technology, core markets, core
capabilities and advantaged market
segments.
Our vision is to become the leading provider of explosives technology and solutions
worldwide, united under one global brand – Dyno Nobel. We will achieve this with our
cutting-edge technology, enhanced operational efficiencies for our customers and expansion
into new markets while maintaining our commitment to safety and sustainability.
» Boost profitability and operational efficiency through our Transformation Program, with initiatives
that can help to generate positive impacts on EBIT through FY25.
» Expand in Latin America and Africa through capital-light investments, targeting supply gaps
in low-risk growth markets.
» Leverage technology-driven solutions such as DigiShot® and DIFFERENTIAL ENERGY®, to deliver
high-margin offerings and long-term customer value.
Our vision is to inspire productivity for farmers, our staff and the communities we serve.
We will be the leading supplier of nutrients and know-how for Australian agriculture.
» Support Australasian food security.
» Leverage distribution footprint and laboratory to provide best in class products and services
to agricultural markets, including specialty blends, enhanced efficiency fertilisers, liquid
fertilisers and other value add services.
» Deliver data and digital solutions for our customers.
» Secure our Brisbane Primary Distribution Centre customer footprint.
Purpose
Unlocking the potential in the
Earth to help people grow.
Ambition
IPL will be a safe, efficient
and industry leading company.
IPL is a leading manufacturer and supplier to the resources
and agricultural sectors.
Our Values
IPL Strategy Snapshot
IPL’s strategy charts a dynamic course for the future of our two leading
businesses – Dyno Nobel and IPF. Driven by our core values and strategic
priorities, we are focused on strengthening and expanding our core operations
while actively pursuing new growth avenues. Our strategy, informed by global
market dynamics and competitive insights, clearly defines our objectives and
the actions required to achieve them.
PERFORMANCE AND OUTLOOK
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PERFORMANCE AND OUTLOOK
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Incitec Pivot Limited Annual Report 2024
Incitec Pivot Limited Annual Report 2024
We are leveraging our
unique competitive
advantage to drive
growth in existing
and new markets.
Performance
and Outlook
PERFORMANCE AND OUTLOOK
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PERFORMANCE AND OUTLOOK
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Incitec Pivot Limited Annual Report 2024
Incitec Pivot Limited Annual Report 2024
FY24 key business announcements and highlights
FY24 Year in Review
Dyno Nobel unveils state-of-
the-art automated electronic
detonator plant in Helidon
Opened a cutting-edge automated
electronic detonator manufacturing
plant in Helidon, enhancing our
technological edge and production
capabilities.
Major Contract win for Dyno
Nobel with Peabody
Secured two long term contract
renewals with leading miner
Peabody in Australia, and across
its US operations. This contract win
reinforces Dyno Nobel’s leadership in
supply chain security and explosives
technology across these two key
markets.
Dyno Nobel invests $20m
in Moranbah to lower GHG
emissions
Committed $20m to enhance the
Moranbah Ammonium Nitrate plant's
efficiency, significantly reducing
greenhouse gas emissions and
reinforcing our sustainability goals.
IPL's Sustainability recognised
by S&P Global
Admitted again to the S&P Global CSA
Index for the 14th year.
IPF a Finalist for Most Trusted
Brand by Roy Morgan
IPF was recognised as a top finalist for
Most Trusted Brand in the Chemical
and Fertiliser category by Roy Morgan
in 2024. In 2023, IPF was the winner of
the same category.
Ambition to be the leading
global explosives business
Through leveraging our competitive
advantage and delivery of our
Transformation program.
EBIT(1)
$580m
79%
of IPL sites had zero
recordable injuries
90%
participation in
Global SafeTEAMS program
0
significant
environmental incidents
~$500m
returned to Shareholders
in February 2024 in addition
to the on-market share
buyback that commenced
in July 2024
NPAT(1)
$401m
IPL awarded the
Health, Safety
& Environment
Award
at the 2024 Chemistry
Australia Industry Awards
IPF recognised as a
Leader of
Agriculture &
Environment
in the Australian Financial Review's
Sustainability Leaders list for 2024
(1) Excludes IMIs.
Completion of the sale
of Waggaman Ammonia
Production Plant
Successfully finalised the sale of the
Waggaman Ammonia Production
Plant in Louisiana to CF Industries
Holdings, Inc., further streamlining
our operations.
IPF launches ‘Dig Deep’
for the agricultural sector
New magazine featuring in-depth
industry insights, including global
fertiliser market overviews, trading
updates and agronomic research
developments.
IPF's Portland facility’s
$20m transformation to
drive grower productivity
Completed a $20m transformation
of the Portland facility, aimed at
enhancing grower productivity and
meeting the evolving needs of the
agricultural sector.
PERFORMANCE AND OUTLOOK
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Chair Report
During the year we had three main strategic objectives – improve our
explosives and fertilisers business performance, ensure the two businesses
were separated and sell the fertiliser business. Pleasingly with the focus
on commercial and operational improvement, business performance has
improved, particularly in the second half of the financial year. We have
also completed the material tasks to separate our two businesses.
(1) Reflects interim dividend of $83.6m and assumed final dividend of $119.2m (based on shares on issue at 30 September 2024). Does not include the special dividend of $197.5m paid during FY24.
Selling the fertilisers business has proved more difficult, particularly
with the differences in performance of the manufacturing and
distribution parts of the business. In 2025, we will run a process
to exit the fertilisers business and maximise value; ensuring
during the process that buyers can assess and bid on the main
components separately.
During the year we completed the sale of our ammonia plant in
Louisiana in December 2023 for $2.3bn and we have pledged
a $1.4bn return to shareholders. We completed the first part of
this program in February 2024 with a $500m capital return to
shareholders, and we commenced our $900m on-market share
buyback program in July 2024. To date, we've bought back around
$149m worth of shares and we will continue to buy back shares
during permissible trading windows in 2025.
Financial performance
Operational financial performance has been strong for explosives
and the fertilisers distribution business. The fertiliser manufacturing
business was disappointing with downtime at Phosphate Hill. After
remedial action, the second half performance of all our businesses
was strong. We reported Earnings Before Interest and Tax (EBIT)
of $580m, excluding individually material items (IMIs), down from
$880m in the prior corresponding period, primarily due to the sale
of the Waggaman facility.
Net Profit After Tax (NPAT) excluding IMIs was $401m and our
$290m operating cash flow and Net Loss After Tax and IMIs was
$311m (FY23:$560m profit). The write downs of the fertilisers
assets are in line with the assessed business values of particular
assets going forward. The most significant factor in this analysis
has been the long-term trend of dramatically increasing gas
prices in the Eastern Seaboard of Australia and the inability to
source competitive long term gas contracts for our fertilisers
manufacturing plants. Higher gas prices and uncertainty of
gas supply have culminated in the closure of the Gibson Island
ammonia and urea plant, and the write down in value of the
Phosphate Hill operation.
The Board was pleased to announce a final dividend of 6.3 cents
per share, taking our total ordinary dividend for the financial
year to 10.6 cents per share for a total return of ~$202.8m(1). In
addition to these dividends, IPL returned capital to shareholders
and bought back shares at a combined value of $649m. We remain
committed to completing the $900m buyback program, with
$751m remaining. Net debt to EBITDA decreased from 1.2x to
0.8x, highlighting the strength of the balance sheet. Net debt also
decreased by $763m to $652m.
In FY25, the Board will continue to focus on strong financial results
and returns to shareholders, as we exit fertilisers and build on our
competitive advantage in the global explosives market.
Sustainability
I want to emphasise that the Board and Management are committed
and focused on sustainability including Zero Harm. The safety for our
employees, our communities and anyone linked to the IPL business
remains paramount.
To identify sustainability-related risks and opportunities which
could have a material impact on our businesses, our stakeholders
or the environment, we conducted a comprehensive review in 2024.
The risks and opportunities identified shaped our sustainability
and decarbonisation strategies. Please read our 2024 Sustainability
Report and 2024 Climate Change Report for more details.
We are pleased with the progress of the nitric acid plant N2O
abatement projects, at Moranbah, Queensland and Louisiana,
Missouri (LOMO), this year which will remove more than 95% of
nitrous oxide emissions from the ammonium nitrate manufacturing
process. Moranbah is now complete and LOMO will be completed
in 2025. These projects are supporting our decarbonisation efforts
and, importantly, lowering the scope 3 GHG emissions of customers
who buy ammonium nitrate from these plants. Future project
assessments of green ammonia, carbon sequestration and carbon
offset programs are being actively investigated.
Leadership
In January of this year the Board welcomed Mauro Neves as
CEO & MD. Mauro has focused the Executive Leadership Team
on our strategic goals and overseen a strong operating financial
performance with a significantly improved second half of the
financial year.
The Dyno Nobel improvement and growth strategy being executed
by the Management team is based on the competitive advantages
of the business. These include the safe manufacture and supply
of products and services across the full drill to mill value chain,
combined with proprietary detonators and advanced delivery
systems. Together these factors are translating into long- term
contracts with customers and better returns for shareholders.
Together with the Board, I would like to acknowledge and thank
Paul Victor for his energy, commitment and professionalism as CFO
and interim CEO over his tenure and wish him well for the future.
The Board is looking forward to welcoming new Dyno Nobel Asia
Pacific President, Tanya Rybarczyk to the Executive Leadership
Team in February and want to acknowledge Greg Hayne who
relocated to Salt Lake City to lead our Dyno Nobel Americas
business.
Regarding Board changes, we welcomed Fiona Hick, following her
appointment as a non-executive director in September 2024. Fiona
brings valuable executive leadership and operational experience
to the Board. She has assumed the role of Chair of the Health,
Safety, Environment and Community Committee, formerly held
by Xiaoling Liu. We thank Xiaoling, who stepped down as a non-
executive director in May 2024, for her significant leadership as
Committee Chair during her tenure.
In conclusion, with the Board and Management, we look forward
to completing the next phase of our strategy, simplifying our
business focus on Dyno Nobel and putting all our efforts into
the development of the leading global explosives business.
Greg Robinson
Board Chair
Chief Executive Officer &
Managing Director Report
Since joining the company in January this year, I have had the pleasure of
visiting a large proportion of IPL’s sites globally, speaking with hundreds
of our skilled and passionate people, and our valued customers from across
the resources and agriculture sectors. I’ve been consistently impressed with
the dedication and professionalism on display. It really is a privilege to be
working alongside people with a genuine sense of pride and care for each
other and our business.
Safety
Safety remains our #1 priority, core to our strategy and a strategic
lever for operational excellence, sustainability, and commercial
outcomes. The tragic loss of a colleague as the result of a car
accident on a public road in Australia during FY24, has reinforced
our focus on risk management across all our sites globally and
focused our attention on the importance of hazard identification
and sharing lessons learned from incidents.
There is more work to do in this space given our Total Recordable
Injury Rate (TRIFR) has increased this year with a Group TRIFR of
1.08 in FY24, above the target of 0.8. Overall, 79% of all IPL sites had
zero recordable injuries in FY24. The entire organisation is actively
involved in steps to address this, with leadership interventions
and a new integrated approach to process safety, operations risk
management and fatality prevention under a single program.
In more pleasing news, IPL was awarded the Health, Safety &
Environment Award at the Chemistry Australia Industry Awards
for the Gibson Island “Finish with Pride” Program. This recognition
is a testament to our shared commitment to prioritise the well-
being of our Gibson Island manufacturing workforce, even during
challenging times such as closure and transition. We have also
been able to sustain our excellent environmental performance
across the company with zero Significant Environmental Incidents.
Business performance
During FY24, IPL delivered underlying EBIT growth of 18%
compared to FY23, after adjusting for items related to the closure
of manufacturing at Gibson Island and the sale of Waggaman.
» Dyno Nobel Americas: EBIT of US$172m (FY23: US$390m)
with the reduction in earnings largely due to the sale of
the Waggaman facility. US Explosives earnings of US$132m
increased 13%.
» Dyno Nobel Asia Pacific: Record EBIT of $257m (FY23: $188m)
with earnings and margins up strongly. Customer recontracting
has helped the trajectory towards improved returns above
cost of capital. The continued uptake of Dyno Nobel’s premium
technology suite, particularly electronic detonators and
DIFFERENTIAL ENERGY® emulsions has also supported these
results.
» Fertilisers Asia Pacific: EBIT of $120m (FY23: $153m) impacted
by the closure of Gibson Island manufacturing and reduced
productivity at Phosphate Hill. The Distribution business
delivered an excellent year reflecting strong demand and
effective management of fertiliser supply chains.
Strategic progress
We will deliver on our growth ambition by leveraging our
strategic advantage centred around technology, customer
relationships and innovative products. The Executive Leadership
Team has been realigned to deliver our ambition and we have
created a new role of Chief Growth Officer to drive our growth
agenda. We have simplified our organisational structure and
reduced layers of management to streamline decision making
and we are empowering our people to collaborate and deliver
safely and sustainably.
We've made significant progress in better managing our asset
maintenance strategies over the past few years, which is helping
to optimise spend. We have seen demonstrable improvements
in operating performance and the solid set of FY24 results are
evidence our strategy is working.
Significant contract renewals with BHP Mitsubishi Alliance and
Peabody and new agreements with Fortescue and Anglo Gold
Ashanti, are tangible examples of our competitive advantage
in action.
During 2024, our fully automated electronic detonator plant at
Helidon in Queensland, Australia went live. Investing in automation
enhances operational efficiency and competitiveness while
upholding the highest standards of safety and quality.
Looking forward
The separation of the Fertilisers business and the continued
delivery of our ambitious transformation agenda are our main
priorities for FY25. The delivery of these strategic goals is critical
to achieving our ambition to be the global leader in the growing
explosives market.
As part of our global branding for Dyno Nobel, we will continue
to align to Alfred Nobel’s heritage and groundbreaking innovation
as we take our cutting-edge technology in partnership with our
customers, into the future.
Closing out FY24, our company is in a very strong position. We
are confident in our roadmap to creating significant value for our
shareholders and customers and opportunities for our people.
Mauro Neves
CEO & Managing Director
OPERATING AND FINANCIAL REVIEW
OPERATING AND FINANCIAL REVIEW
18
Incitec Pivot Limited Annual Report 2024
19
Incitec Pivot Limited Annual Report 2024
Operating and Financial Review
Group Overview
IPL is a leading supplier in the resources and agricultural sectors
with an unrelenting focus on Zero Harm. With a team of over 5,600
dedicated employees, the Company adds value to its customers
through leading technology solutions, innovation, world class
services focused on the needs of its customers and manufacturing
reliability. Sustainability is interlinked with IPL’s strategy which is
aimed at delivering sustainable growth and shareholder returns,
while proactively managing those issues most material to the
long-term sustainability of our business, the broader environment,
and the communities in which we operate. IPL has an ambition
of achieving Net Zero operational emissions by 2050, or sooner if
practical.
IPL operates through three business units, details of which are set
out in this review:
» Dyno Nobel Americas;
» Dyno Nobel Asia Pacific; and
» Fertilisers Asia Pacific.
Through Dyno Nobel, the Company plays a critical role in releasing
the world’s natural resources, to help build infrastructure and
generate the energy we need to live in a modern world.
Through Incitec Pivot Fertilisers’ 100-year heritage in Australian
agriculture, IPL plays an important role in enabling sustainable
food production to meet the rapidly rising demand for food around
the world.
The Company has operations in Australia, North America, Europe,
Asia, Latin America and Africa.
Dyno Nobel Americas
Following the sale of the ammonia manufacturing facility at
Waggaman, Louisiana on 1 December 2023, the Dyno Nobel
Americas business now comprises two businesses:
» Explosives; and
» Agriculture & Industrial Chemicals.
Explosives
Dyno Nobel provides ammonium nitrate, initiating systems and
services to the Quarry & Construction sector across the US; the Base
& Precious Metals sector in the US mid-West, US West, Canada and
Chile; and to the Coal sector in the Powder River Basin, Illinois Basin
and Appalachia.
In North America, Dyno Nobel manufactures ammonium nitrate
at its Cheyenne, Wyoming and Louisiana, Missouri plants. The
Cheyenne, Wyoming plant is adjacent to the Powder River Basin,
North America’s most competitive thermal coal mining region and
is well positioned to service Base & Precious Metals in Western US.
The Louisiana, Missouri plant has a competitive logistic footprint
from which to support mining in both the Illinois Basin and
Appalachia, as well as Quarry & Construction in the US mid-West,
where it is the market leader.
Initiating systems are manufactured at Dyno Nobel’s facilities in
Connecticut, Kentucky, Illinois, Missouri, Chile and Mexico, and are
also sourced from DetNet South Africa (Pty) Ltd (DetNet), an IPL
electronics joint venture.
Agriculture & Industrial Chemicals
The Dyno Nobel Americas business manufactures and distributes
nitrogen-based fertilisers in the United States from its St Helens,
Oregon and Cheyenne, Wyoming plants.
Dyno Nobel Asia Pacific
Through Dyno Nobel Asia Pacific, IPL provides ammonium nitrate
based industrial explosives, initiating systems and services to the
Metallurgical Coal and Base & Precious Metals sectors in Australia,
and internationally to a number of countries including Indonesia,
France, Papua New Guinea and Turkey through its subsidiaries and
joint ventures. Ammonium nitrate is often sold in conjunction with
proprietary initiating systems and services.
Dyno Nobel is the second largest industrial explosives distributor
in Australia by volume, which in turn is the world’s third largest
industrial explosives market. In Australia, Dyno Nobel primarily
supplies its products to metallurgical coal mines in the east and to
iron ore mines in the west.
In Australia, Dyno Nobel manufactures ammonium nitrate at its
Moranbah ammonium nitrate plant, which is located in the Bowen
Basin, the world’s premier metallurgical coal region.
It also sources third party ammonium nitrate including in Western
Australia to service the Iron ore and Underground sectors.
Initiating systems are manufactured in Australia at Dyno Nobel’s
Helidon, Queensland facility and are also sourced from IPL facilities
in the Americas and from DetNet (South African joint venture).
The Titanobel business, which was acquired in FY22, is highly
complementary to Dyno Nobel’s existing operations and provides
access to new markets where Dyno Nobel can leverage its premium
technology offering. Titanobel is a leading industrial explosives
manufacturer and drilling, blasting and technical services provider
based in France.
Fertilisers Asia Pacific
IPL’s Fertilisers business in Australia is the largest domestic
manufacturer and supplier of fertilisers by volume.
Internationally, the Fertilisers business sells to major offshore
agricultural markets in Asia Pacific, the Indian subcontinent, Brazil
and the United States. It also procures fertilisers from overseas
manufacturers to meet domestic seasonal peaks. Much of this
activity is conducted through Southern Cross Fertilisers Pte. Ltd.,
a Singapore based subsidiary.
The Fertilisers business manufactures Di/mono ammonium
phosphate fertilisers (DAP/MAP) at its Phosphate Hill
manufacturing facility in Queensland, Australia.
(1) Return in invested capital, calculated as 12 month rolling Net Operating Profit After Tax, excluding individually material items/13 month rolling average operating fixed assets, intangible assets,
operating net working capital, and assets classified as held-for-sale.
(2) Net debt comprises the net of interest-bearing liabilities, cash and cash equivalents, and the fair value of derivative instruments economically hedging the Group’s interest-bearing liabilities.
(3) Net debt (adjusted for average exchange rate for the year)/EBITDA ratio is calculated using 12 month rolling EBITDA ex IMIs, minus lease depreciation.
(4) Net debt incl TWC facilities (adjusted for average exchange rate for the year)/EBITDA ratio is calculated using 12 month rolling EBITDA ex IMIs, minus lease depreciation. Net debt for this ratio
has been adjusted to include the usage of trade working capital facilities.
(5) Interest Cover = 12 month rolling EBITDA ex IMIs/net interest expense before accounting adjustments.
(6) TRIFR is calculated as the number of recordable incidents per 200,000 hours worked and includes contractors. TRIFR results are subject to finalisation of the classification of any pending incidents.
(7) FY23 TRIFR has been restated due to the reclassification of two injuries.
(8) Tier 1 and Tier 2 Process Safety Incidents as defined by the Center for Chemical Process Safety.
(9) Significant Environmental Incidents as assessed against IPL’s internal risk matrix with actual consequences of 5 or higher on a 6-level scale.
Group Summary
Year ended 30 September
IPL Group
FY24
A$m
FY23
A$m
Change
A$m
Reported Revenue and Earnings
Revenue
5,364.9
6,008.1
(643.2)
EBITDA ex IMIs
924.8
1,215.4
(290.6)
EBIT ex IMIs
579.8
879.8
(300.0)
NPAT ex IMIs
400.8
582.1
(181.3)
IMIs after tax
(711.7)
(22.1)
(689.6)
Group NPAT
(310.9)
560.0
(870.9)
Return On Invested Capital(1)
Including goodwill
6.3%
6.1%
Excluding goodwill
8.7%
8.8%
Shareholder Returns
Cents Per Share
Earnings per share ex IMIs
20.7
30.0
Total ordinary dividends
10.6
15.0
Credit Metrics
30-Sep-24
30-Sep-23
Net debt(2)
(651.6)
(1,415.0)
Net debt / EBITDA (ex IMIs)(3)
0.8x
1.2x
Net debt incl TWC facilities / EBITDA(4)
0.8x
1.4x
Interest cover(5)
12.5x
9.9x
Net Profit After Tax (NPAT) excluding Individually
Material Items (ex IMIs)
IPL reported NPAT (ex IMIs) of $401m, a decrease of 31% compared
to $582m in the pcp. The decrease is primarily due to the reduced
earnings in FY24 from sold and discontinued operations (WALA
and Gibson Island). The financial performance in this document is
analysed on the underlying basis after re-basing for discontinued
operations. Further information on the financial performance
for the year is included in IPL’s Profit Report which accompanies
IPL’s FY24 Financial Results materials released on the ASX on 11
November 2024.
Individually Material Items (IMIs)
NPAT for FY24 includes after tax IMIs totalling a loss of $712m (FY23
$22m) primarily relating to:
» a non-cash $791m (after tax) impairment of the global
Fertilisers business based on a value-in-use approach;
» costs totalling $6m (after tax) incurred to optimally position
Incitec Pivot Fertilisers (IPF) for standalone operations;
» a gain of $124m (after tax) on the sale of WALA;
» business transformation costs of $22m (after tax) to identify
opportunities for innovation, collaboration and more efficient
ways of working across the Dyno Nobel business; and
» site closure costs of $17m (after tax) relating to closure of
manufacturing at the emulsion plant located in Warkworth,
New South Wales.
Capital Management
Earnings per share (EPS) ex IMIs of 20.7 cents decreased by 9.3
cents compared to the FY23 EPS of 30.0 cents largely due to the
sale of WALA and closure of Gibson Island.
A final dividend of 6.3 cents per share (unfranked) has been
announced. This represents a 50% payout ratio of NPAT (ex IMIs).
Following the sale of WALA, IPL returned approximately $500m to
shareholders via a pro-rata capital return including a share capital
reduction of $302m and an unfranked special dividend of $198m.
Additionally, IPL bought back shares valued at $149m as part of
a planned $900m on-market share buyback program. IPL remain
committed to executing the remainder of the program and has
sufficient cash reserves and committed bank facilities to complete
the buyback.
The share buyback will be conducted in the ordinary course of
trading and the exact amount and timing of share purchases will
be dependent on regulatory requirements and market conditions.
These capital returns are in line with IPL’s Capital Allocation
Framework which aims to enhance shareholder value through
optimising its weighted average cost of capital while retaining
an appropriately strong credit profile in support of its investment
grade credit ratings.
Net Debt
Net debt decreased by $763m to $652m at 30 September 2024
(pcp: $1,415m) and net debt/EBITDA ex IMIs decreased to 0.8x (pcp:
1.2x).
Net debt decreased during the year following receipt of $1.6bn of
net cash proceeds from the sale of WALA, partly offset by $829m of
total shareholder returns including a share capital return of $302m,
dividends of $378m and a share buyback program of $149m.
The Group’s investment grade credit ratings were maintained:
» S&P: BBB (stable outlook)
» Moody’s: Baa2 (stable outlook)
Zero Harm
IPL’s Total Recordable Injury Frequency Rate (TRIFR)(6) for the rolling
twelve-month period ended 30 September 2024 was 1.08, up
slightly from 0.92(7) at 30 September 2023. There were 18 Process
Safety Incidents(8) recorded in FY24 (pcp: 14). The Company
maintained its strong environmental safety record with no
Significant Environmental Incidents during the year(9).
OPERATING AND FINANCIAL REVIEW
OPERATING AND FINANCIAL REVIEW
20
Incitec Pivot Limited Annual Report 2024
21
Incitec Pivot Limited Annual Report 2024
Financial Performance
Year ended 30 September
Income Statement
FY24
A$m
FY23
A$m
Change
%
Revenue
Business Revenue
DNA
1,847.1
2,380.8
(22)
DNAP
1,478.4
1,500.6
(1)
Fertilisers APAC
2,098.0
2,203.4
(5)
Eliminations
(58.6)
(76.7)
24
Group Revenue
5,364.9
6,008.1
(11)
EBIT
Business EBIT ex IMIs
DNA
262.0
587.8
(55)
DNAP
256.7
188.3
36
Fertilisers APAC
119.8
153.2
(22)
Eliminations
(0.6)
0.6
(200)
Corporate
(58.1)
(50.1)
(16)
Group EBIT ex IMIs
579.8
879.8
(34)
EBIT margin
10.8 %
14.6 %
NPAT
Underlying interest expense(1)
(97.5)
(143.0)
32
Non-cash unwinding liabilities
(6.9)
(5.7)
(21)
Net borrowing costs
(104.4)
(148.7)
30
Tax expense ex IMIs
(75.5)
(149.2)
49
Minority interest
0.9
0.2
nm*
NPAT excluding IMIs
400.8
582.1
(31)
IMIs after tax
(711.7)
(22.1)
nm*
Group NPAT
(310.9)
560.0
(156)
* nm = not meaningful
FY24 Business Review
The Group reported FY24 EBIT (ex IMIs) of $580m, a decrease
of $300m compared to the pcp. When adjusted for re-basing
items including the Gibson Island facility, the sale of WALA and
commodities movements, IPL delivered strong underlying earnings
across all customer-facing businesses. Major movements for the
year were as follows:
Re-basing items:
Gibson Island Closure: As previously disclosed, the Gibson Island
plant ceased manufacturing activities in January 2023 and no
further manufacturing activity is expected from this asset in its
current state. As a result, production was lower compared to the
pcp, decreasing earnings by $30m.
WALA sale: As previously announced, IPL sold its ammonia
manufacturing facility, WALA, effective 1 December 2023. As a
result, only two months of earnings from the plant were included
in the FY24 result, which has decreased earnings by $338m when
compared to the pcp.
Commodities & Foreign Exchange: FY24 earnings decreased by
$22m driven by lower commodity prices related to the Ag & IC
business, mainly due to Urea prices which decreased by 18%
compared to the pcp.
Operational Performance:
Asia Pacific Explosives: DNAP delivered its highest EBIT result on
record with margins and earnings increasing strongly compared
to the pcp. Further progress in customer recontracting delivered
excellent returns ($45m), and EBIT was further increased by
additional growth in Metals customers and improved performance
in Western Australia. The business continued to see a steady uptake
of its premium technology suite, particularly electronic detonators
and Differential Energy emulsions, delivering improved earnings
of $11m in FY24. Titanobel continued to deliver against the
acquisition business case with an additional $3m contribution from
this business compared to the pcp. The result reflected ongoing
cost management discipline across DNAP’s diverse end markets
in Australia, Indonesia and EMEA. With a high quality customer
base and strategically located manufacturing assets, DNAP is well
positioned to continue earnings momentum and deliver further
growth.
Americas Explosives: Earnings improved by $11m ($13m
including Ag & IC) during the year mainly driven by customer
and technology growth in the higher margin Metals market with
continued uptake in Dyno Nobel’s technology products. Ongoing
pricing discipline and a keen focus on cost management across
the business also increased earnings in FY24 with customer pricing
increases and cost management initiatives more than offsetting
additional costs relating to inflation. As a result, EBIT margins
improved to 13.3% (FY23 11.7%) with the business well positioned
for strategic growth.
Fertilisers Distribution: The Fertilisers Distribution business
delivered its strongest result on record with above average rainfall
on the east coast of Australia increasing fertiliser demand which,
when combined with a well-managed supply chain, resulted in
earnings growth of $14m.
Phosphate Hill Gas: Phosphate Hill’s contracted gas supply
continued to be disrupted throughout the year due to the
underperformance of a third-party provider. As a result, gas was
purchased through optimisation across short term contract
arrangements and spot purchases. The incremental cost of these
purchases was $30m lower than the pcp, with the reduction
resulting from a combination of lower gas usage and lower average
cost.
Manufacturing Reliability: Manufacturing reliability improved
significantly in the second half. The negative impact on earnings
for the full year of $50m was a reduction from the first half impact
of $79m. The improvement was primarily driven by excellent
production rates at Phosphate Hill which produced 479kmt in the
second half, up from 261kmt in the first half which was impacted
by cyclone Kirrily and by planned and unplanned plant downtime.
The improved reliability at Phosphate Hill follows a series of
successful interventions at the site including the implementation
of a reliability taskforce together with a refreshed site leadership
team. Reliability at IPL’s other major ammonia manufacturing
facilities was strong with the Moranbah plant continuing its solid
run despite nearing the end of its four year maintenance cycle and
the Cheyenne facility attaining reliability levels above 90% post its
FY23 turnaround.
Turnarounds: There were no major turnarounds conducted in
FY24. The favourable movement of $12m related to turnarounds
at LOMO and Cheyenne in the pcp. In FY25, planned maintenance
is scheduled at Moranbah and LOMO. Phosphate Hill will continue
to implement a program of works designed to deliver reliability
improvements with the benefits reflected in improved production
in the second half of FY24.
Financial Position
Year ended 30 September
Balance Sheet
A$m
30 Sep
2024
30 Sep
2023
Change
A$m
Assets
TWC - Fertilisers APAC
257.4
220.6
36.8
TWC - Explosives
584.7
619.3
(34.6)
TWC - Facilities
–
(266.2)
266.2
Group TWC
842.1
573.7
268.4
Net PP&E
2,435.9
3,182.7
(746.8)
Lease assets
243.4
209.3
34.1
Intangible assets
2,545.7
2,394.4
151.3
Net assets classified as held for sale
–
2,207.3
(2,207.3)
Net other assets
183.5
205.8
(22.3)
Total Assets
6,250.6
8,773.2 (2,522.6)
Liabilities
Environmental & restructure liabilities
(212.8)
(154.7)
(58.1)
Tax liabilities
(270.0)
(542.1)
272.1
Lease liabilities
(271.3)
(234.7)
(36.6)
Net debt
(651.6)
(1,415.0)
763.4
Total Liabilities
(1,405.7)
(2,346.5)
940.8
Net Assets
4,844.9
6,426.7 (1,581.8)
Equity
4,844.9
6,426.7 (1,581.8)
Key Performance Indicators
Net Tangible Assets per Share
1.22
1.60
Fertilisers APAC – Ave TWC % Rev(1)
19.1%
20.8%
Explosives – Ave TWC % Rev(1)
21.7%
21.1%
Group – Ave TWC % Rev(1)
20.7%
21.0%
Credit Metrics
Net debt(2)
(651.6)
(1,415.0)
Net debt / EBITDA (ex IMIs)(3)
0.8x
1.2x
Net debt incl TWC facilities / EBITDA(4)
0.8x
1.4x
Interest cover(5)
12.5x
9.9x
Major movements in the Group’s Balance Sheet during the year include:
Assets
Trade Working Capital (TWC): Net increase of $268m. The
movement was mainly due to a reduction in TWC facility usage
during the year ($266m).
The average trade working capital as a percentage of sales for the
Explosives business increased by 0.6% compared to the pcp. The
increase was largely due to investments in geographical growth
markets and supported higher earnings in the International
businesses which have a longer cash cycle. Methods to further
rationalise trade working capital levels continue to be explored
across the Explosives business as a key workstream of the business
transformation project. Average trade working capital as a percentage
of sales in the DNAP business improved year on year reflecting very
strong debtor compliance and a reduction in inventory levels.
The average trade working capital as a percentage of sales for the
Fertilisers business decreased by 1.7% compared to the pcp, reflecting
the ongoing focus on optimising trade working capital metrics during
the year and optimisation of average inventory levels.
Trade Working Capital Facilities
IPL uses trade working capital facilities to effectively manage the
Group’s cash flows, which are impacted by seasonality, demand
and supply variability.
The Group has a non-recourse receivable purchasing agreement to
sell certain domestic and international receivables to an unrelated
entity in exchange for cash. As at 30 September 2024, there were
no receivables sold under this arrangement (2023: $118m).
IPL also offers suppliers the opportunity to use supply chain
financing. The Group evaluates supplier arrangements against several
indicators to assess whether to classify outstanding amounts as
payables or borrowings. As at 30 September 2024, the balance of the
supply chain finance program was $nil (2023: $148m).
Once the proceeds from the sale of WALA were received in FY24 and
Balance Sheet metrics were strong, the trade working capital facilities
were repaid as an interest saving measure. IPL will continue to utilise
the facilities in the future to manage the Group’s cash flows.
Net Property, Plant & Equipment (PP&E): Decrease of $747m
($671m excluding the impact of FX translation) mainly as a result
of the non-cash impairment of the Fertilisers business ($794m) and
the depreciation charge for the year ($262m). This was partially
offset by sustenance, strategic sustenance, and turnaround capital
expenditure ($284m) and growth and sustainability capital spend
($95m) during the year.
Intangible assets: Increase of $151m ($250m excluding the impact
of FX translation) largely due to the recognition of the ammonia
offtake agreement arising from the WALA sale ($454m), partially
offset by the non-cash impairment of the Fertilisers business
($196m) relating to goodwill.
Liabilities
Environmental & restructure liabilities: Increase of $58m largely
driven by provisions recognised during the year in relation to the
business transformation project and cessation of manufacturing at the
Warkworth emulsion plant. In addition, the asset retirement obligation
at Phosphate Hill was increased to reflect current estimates of future
cash outflows. This was partially offset by spend against provisions
associated with the closure of manufacturing at Gibson Island.
Tax liabilities: Decrease of $272m mainly due to deferred tax
assets recognised following the non-cash impairments of the
Fertilisers business during the year. This tax accounting treatment
does not generate a tax cash flow as the impairment charge is not
tax-deductible.
Net debt: Decrease of $763m ($695m excluding the impact of
FX translation) mainly due to net proceeds from the sale of WALA
($1,640m) and operating cash inflows for the year ($290m). This
was partially offset by dividends paid during the year ($378m),
capital returned to shareholders ($302m) and a share buyback
program ($149m). In addition, net debt was impacted by
sustenance and strategic capital expenditure ($284m), growth and
sustainability capital ($95m) and lease liability payments ($53m).
Further details of movements in net debt are provided in the Cash
Flow section of this report.
(1) Average TWC as % of revenue = 13-month average trade working capital/12 months rolling revenue. FY23 metrics include trade working captial balances classified as held-for-sale.
FY22 metrics have been restated due to a reclassification of Precious Metals from PPE to Inventory in March 2022.
(2) Net debt comprises the net of interest-bearing liabilities, cash and cash equivalents, and the fair value of derivative instruments economically hedging the Group’s interest-bearing liabilities.
(3) Net debt (adjusted for average exchange rate for the year)/EBITDA ratio is calculated using 12 month rolling EBITDA ex IMIs, minus lease depreciation.
(4) Net debt incl TWC facilities (adjusted for average exchange rate for the year)/EBITDA ratio is calculated using 12 month rolling EBITDA ex IMIs, minus lease depreciation. Net debt for this ratio
has been adjusted to include the usage of trade working capital facilities.
(5) Interest Cover = 12 month rolling EBITDA ex IMIs/net interest expense before accounting adjustments.
(1) Underlying interest expense represents total borrowing costs less non-cash discount unwind on the Group’s long-term liabilities.
OPERATING AND FINANCIAL REVIEW
OPERATING AND FINANCIAL REVIEW
22
Incitec Pivot Limited Annual Report 2024
23
Incitec Pivot Limited Annual Report 2024
Net Debt
A$m
Maturity
Month/Year
Facility
Amount
Drawn
Amount
Undrawn
Amount
Syndicated Term Loan
10/25
779.0
–
779.0
EMTN / Regulation S notes
02/26
104.1
104.1
–
Medium Term Notes
03/26
431.3
431.3
–
EMTN / Regulation S Notes
08/27
441.9
441.9
–
US Private Placement Notes
10/28
361.3
361.3
–
US Private Placement Notes
10/30
361.3
361.3
–
Total debt
2,478.9 1,699.9
779.0
Fair value and other adjustments
(48.6)
Loans from JVs, associates/other short term facilities
32.8
Cash and cash equivalents
(1,068.9)
Fair value of hedges
36.4
Net debt(1)
651.6
Net debt / EBITDA (ex IMIs)(2)
0.8x
Financial indebtedness decreased by $993m as explained in the
Cash Flow section of this report.
Financial Indebtedness
A$m
30 Sep
2024
30 Sep
2023
Change
A$m
Net debt(1)
652
1,415
(763)
Lease liabilities
271
235
36
Trade working capital financing facilities
–
266
(266)
Total Financial Indebtedness
923
1,916
(993)
Credit Metrics
Net debt/EBITDA: The ratio of 0.8x decreased by 0.4x compared
with the pcp. The decrease was primarily a result of reduced net
debt following the sale of WALA. The ratio remains well within the
target ratio of equal or less than 1.5x.
Interest cover: Increased to 12.5x (pcp: 9.9x) and was well below
the target range of equal or more than 6.0.
Credit ratings: Investment Grade credit ratings remained
unchanged:
» S&P: BBB (stable outlook)
» Moody’s: Baa2 (stable outlook)
Debt Facilities
IPL has sufficient liquidity and headroom with $779m of available
undrawn committed debt facilities at 30 September 2024.
The average tenor of the Group’s debt facilities at 30 September
2024 was 2.6 years (September 2023: 3.4 years). No committed debt
facilities are due to mature until October 2025.
Capital Allocation – Capital Expenditure
IPL’s capital allocation process is centralised and overseen by
the Group’s Corporate Finance function. Capital is invested on
a prioritised basis and all submissions are assessed against risk
factors including health, safety, sustainability, operational, financial
and other strategic risks. Capital is broadly categorised into first
order capital (sustenance, turnaround, strategic, sustainability and
minor growth) and second order capital (major growth where the
total project is expected to cost greater than $5m).
The table below includes a summary of cash spend per business on
capital:
Year ended 30 September
IPL Group
FY24
A$m
FY23
A$m
Change
A$m
Capital Expenditure
DNA
69.2
92.6
(23.4)
DNAP
47.6
39.8
7.8
Fertilisers
70.7
58.2
12.5
Sustenance
187.5
190.6
(3.1)
DNA
3.9
95.8
(91.9)
DNAP
15.3
–
15.3
Fertilisers
12.1
2.1
10.0
Turnaround
31.3
97.9
(66.6)
DNA
28.1
27.8
0.3
DNAP
–
3.2
(3.2)
Fertilisers
34.5
26.0
8.5
Strategic Sustenance
62.6
57.0
5.6
DNA
9.1
0.3
8.8
DNAP
9.2
5.6
3.6
Fertilisers
5.5
25.2
(19.7)
Sustainability
23.8
31.1
(7.3)
DNA
23.5
39.0
(15.5)
DNAP
35.8
31.0
4.8
Fertilisers
12.0
16.0
(4.0)
1st and 2nd Order Growth
71.3
86.0
(14.7)
Total Continuing Operations
376.5
462.6
(86.1)
Discontinued Operations
2.2
32.5
(30.3)
Total
378.7
495.1
(116.4)
The FY24 sustenance spend of $188m was within the FY24
guidance previously provided of $180m to $200m. Sustenance
capital expenditure is used to ensure reliable operations at the
Group’s manufacturing and distribution facilities in line with
long term asset plans. The turnaround spend in FY24 of $31m
largely related to completion of the Mt Isa turnaround, as well as
preparations for the Moranbah turnaround in FY25.
Strategic one-off spend in FY24 of $63m largely included upgrades
of Gibson Island distribution assets, the relocation of a research and
development facility in the DNA business and Phosphate Hill mine
life investment.
Subject to currency fluctuations, sustenance spend in FY25 is
expected to be in the range of $180m to $220m. Turnaround spend
is expected to be approximately $120m to $140m largely due to
the major turnaround at Moranbah, with spend on sustainability
targeted to be around $10m. These amounts exclude one-off
strategic sustenance expenditure on Phosphate Hill mine life,
Gibson Island relocation and system upgrades.
Sustenance spend is influenced by asset management plans and
strategies. The Group is focused on improving capital effectiveness
and efficiency to ensure asset reliability and optimal returns are
delivered.
Cash Flow
Year ended 30 September
Cash Flow
FY24
A$m
FY23
A$m
Change
A$m
Operating Cash Flow
EBITDA continuing operations ex IMIs
866.1
808.0
58.1
EBITDA discontinued operations
58.7
407.4
(348.7)
Net interest paid
(83.1)
(125.4)
42.3
Net income tax paid
(122.1)
(313.9)
191.8
TWC movement (excl FX movements)
(311.4)
20.1
(331.5)
Profit from JVs and associates
(62.2)
(61.4)
(0.8)
Dividends received from JVs
32.8
37.7
(4.9)
Environmental and site clean-up
(14.0)
(53.8)
39.8
Restructuring costs
(7.8)
(22.3)
14.5
Other non-TWC
(66.8)
4.4
(71.2)
Operating Cash Flow
290.2
700.8
(410.6)
Investing Cash Flow
Growth capital
(71.3)
(86.0)
14.7
Sustenance and strategic capital
(283.6)
(358.6)
75.0
Sustainability capital
(23.8)
(50.5)
26.7
Proceeds from asset sales
30.4
13.3
17.1
Proceeds from sale of discontinued
operations
1,639.7
–
1,639.7
Acquisition of subsidiaries & non-
controlling interests
(4.3)
–
(4.3)
Investing Cash Flow
1,287.1
(481.8)
1,768.9
Financing Cash Flow
Dividends paid to members of IPL
(378.2)
(524.4)
146.2
Capital returned to members of IPL
(302.5)
–
(302.5)
Share buyback
(140.6)
–
(140.6)
Lease liability payments
(53.0)
(50.5)
(2.5)
Purchased shares for IPL employees
(5.5)
–
(5.5)
Non-cash gain on translation of foreign
currency net debt
68.1
(17.5)
85.6
Non-cash movement in net debt
(2.2)
(5.4)
3.2
Financing Cash Flow
(813.9)
(597.8)
(216.1)
Change to net debt
763.4
(378.8)
1,142.2
Opening balance net debt
(1,415.0)
(1,036.2)
(378.8)
Closing balance net debt
(651.6)
(1,415.0)
763.4
Operating Cash Flow
Operating cash flows of $290m decreased by $411m compared to
the pcp. Significant movements included:
EBITDA continuing operations ex IMIs: Increased underlying
EBITDA for the Group of $58m driven by growth across all
customer-facing businesses including successful customer
recontracting for DNAP, customer and technology growth in the
Metals market for DNA and record earnings for the Fertilisers
Distribution business.
Net interest paid: Decreased by $42m principally as a result of
reduced net debt levels for the Group following the receipt of
proceeds from the sale of WALA.
Net income tax paid: Decreased by $192m in line with lower
earnings compared to the pcp resulting from the sale of WALA
in FY23.
TWC movement (excl FX movements): Decreased by $332m
mainly driven by a reduction in TWC facility usage during the year.
Environmental and site clean-up: Related largely to payments
against the Gibson Island closure provision.
Other non-TWC: Decreased by $71m mainly due to operational
prepayments and settlement of legal provisions.
Investing Cash Flow
Net investing cash flows of $1,287m increased by $1,769m
compared to the pcp. Significant movements included:
Sustenance and strategic capital: Reduced capital spend of $75m
was mainly due to lower turnaround spend during the year with
turnarounds at LOMO, St Helens and Cheyenne in FY23, as well as
lower spend at WALA following the sale of the facility in December
2023.
Sustainability capital: Sustainability spend in FY24 primarily
reflected spend on the LOMO tertiary abatement and the
Moranbah abatement project in line with IPL’s decarbonisation
pathway. Spend was lower compared to the pcp driven by the sale
of WALA.
Proceeds from asset sales: Increased by $17m reflecting the sale
of excess land at Cheyenne.
Proceeds from sale of discontinued operations: Represented
the cash proceeds from the sale of WALA. A partial tax payment
relating to the WALA sale was made in September 2024 ($157m)
with the remaining balance of approximately $380m expected to
be paid in January 2025.
Financing Cash Flow
Net financing cash outflow of $814m was $216m higher compared
to the pcp. Significant movements included:
Dividends paid to members of IPL: Dividends of $378m
included the $198m special dividend component of the previously
announced $500m pro-rata capital return paid to shareholders in
February 2024. This was funded from the proceeds of the WALA
sale.
Capital returned to members of IPL: The $302m outflow was the
capital reduction component of the $500m pro-rata capital return
noted above.
Share buyback: During the year, the Group bought back shares
valued at $149m (of which $8m was settled post year-end) as part
of a planned $900m on-market share buyback program.
(1) Net debt comprises the net of interest-bearing liabilities, cash and cash equivalents, and the fair value of derivative instruments economically hedging the Group’s interest-bearing liabilities.
(2) Net debt (adjusted for average exchange rate for the year)/EBITDA ratio is calculated using 12 month rolling EBITDA ex IMIs, minus lease depreciation.
OPERATING AND FINANCIAL REVIEW
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Incitec Pivot Limited Annual Report 2024
Year ended 30 September
Dyno Nobel Americas
FY24
US$m
FY23
US$m
Change
%
Explosives
989.0
999.0
(1)
Ag & IC
171.0
181.1
(6)
Total Continuing Operations
1,160.0
1,180.1
(2)
WALA
55.5
403.1
(86)
Total Revenue
1,215.5
1,583.2
(23)
Explosives
131.9
117.1
13
Ag & IC
2.0
8.9
(78)
Total Continuing Operations
133.9
126.0
6
WALA
37.7
264.0
(86)
EBIT
171.6
390.0
(56)
EBIT margin
Explosives
13.3 %
11.7 %
Ag & IC
1.2 %
4.9 %
WALA
67.9 %
65.5 %
A$m
Revenue
1,847.1
2,380.8
(22)
EBIT
262.0
587.8
(55)
Notes
Average realised A$/US$ exchange rate
0.66
0.66
Urea (FOB NOLA) Index Price (US$/mt)
358
439
Dyno Nobel Americas FY24 earnings of US$172m decreased by
US$218m, or 56%, compared to the pcp. Outlined below are the
major earnings movements during the year for each business
segment.
Explosives
Re-basing items
WALA sale
The sale of the WALA facility in December 2023 resulted in a
US$226m decrease in EBIT compared to the pcp.
Commodities
Unfavourable movements in Urea pricing reduced earnings by
US$15m compared to the pcp.
Operational Business Performance
Explosives earnings for FY24 of US$132m was US$15m higher than
the pcp principally due to the following:
EBIT Margins: EBIT margins (as a percentage of revenue) increased
strongly in the period reflecting recent pricing increases and cost
management initiatives. When measured on an EBIT per tonne
basis, margins grew 15% during the year primarily reflecting the
continued change in sales mix away from coal and into Metals.
Growth / Price / Cost: Favourable movement of US$15m driven by
increased demand in the higher margin Metals markets with a 12%
growth in volumes on pcp due to growth in the Chile operations
and continued customer uptake of Dyno Nobel’s technology. The
net result of pricing increases and cost management initiatives also
had a favourable impact on earnings during the year, offsetting
any negative impacts relating to inflation. This was partly offset by
lower coal volumes compared to the pcp and lower contributions
from overseas joint ventures. Q&C volumes also experienced
temporary negative impacts during the year, mainly driven by
adverse weather in the US.
CF Offtake: The offtake agreement with CF Industries added a net
EBIT benefit of US$4m in FY24. This included a margin benefit of
US$16m and a transport cost of US$2m for a total cash benefit of
US$14m. This cash benefit was partially offset by a non-cash charge
of US$10m relating to the amortisation of the original value of the
agreement.
Depreciation: In line with previous guidance, depreciation
expense was US$15m higher than the pcp mainly due to the
Cheyenne and LOMO turnarounds successfully completed in FY23.
Turnaround: Earnings improved by US$8m reflecting the recovery
of costs associated with the Cheyenne and LOMO turnarounds in
FY23.
Other: The US$3m uplift largely reflected the net gain on sale of
excess land at the Cheyenne, WY facility.
Dyno Nobel Americas
Market Summary
Quarry & Construction
41% of Explosives revenue was generated from the Quarry &
Construction sector in FY24 (43% pcp). This sector was slightly
softer, however, we expect improved demand in the following
financial year.
Base & Precious Metals
42% of Explosives revenue was generated from the Base & Precious
Metals sector in FY24 (37% pcp). Volumes increased 12% during
the year with revenues (in dollar terms) up 11% compared to the
pcp. The largest increases in volumes came from higher production
levels in the US Iron Range and operations in Chile.
Coal
17% of Explosives revenue was generated from the Coal sector in
FY24 (20% pcp). Volumes were down 11% versus the pcp as lower
natural gas prices incentivised the power sector to switch to gas-
generated power. This sector is expected to gradually decline over
time. Increases in the Metals and Q&C markets are expected to
more than offset the decline in coal earnings.
Agriculture & Industrial Chemicals (Ag & IC)
Ag & IC FY24 earnings, excluding the impact of commodity price
movements (refer “Commodities” section above), increased by
US$8m compared to the pcp. The favourable result was driven
by recovery in production levels following the equipment failure
and turnaround at St Helens in FY23, partially offset by unplanned
outages at St Helens in FY24.
WALA Operations
The results of WALA up until completion date of the sale are
presented below:
Year ended 30 September
WALA
FY24
FY23
Change %
Thousand metric tonne
Ammonia manufactured at WALA
144.4
822.5
(82)
Ammonia sold
155.8
829.6
(81)
US$m
External Revenue
55.5
403.1
(86)
Internal Revenue
9.4
53.5
(82)
Total Revenue
64.9
456.6
(86)
EBIT
37.7
264.0
(86)
EBIT margin
67.9 %
65.5 %
Notes
Ammonia Realised Price (US$/mt)(1)
437
550
Realised Gas Cost (US$/mmbtu) (delivered)
3.04
3.66
Ammonia Tampa Index Price (US$/mt)(1)
600
653
Index Gas Cost (US$/mmbtu)(2)
2.96
3.58
Gas efficiency (mmbtu/mt)
30
34
WALA was sold effective 1 December 2023. WALA earnings of
US$38m compared to US$264m in the pcp reflected the timing
of the sale of the business with two months of earnings included
in FY24 compared to twelve months in the pcp. FY24 earnings
were also impacted by a significant fall in ammonia prices
(approximately US$65m EBIT impact compared to the pcp),
partly offset by a favourable movement in Henry Hub gas prices
(approximately US$12m EBIT benefit).
EBIT
US$m
(226)
(15)
390
3
8
149
15
4
8
(15)
172
FY24
Manufacturing
Reliability / Other
Other
Turnaround
Depreciation
CF Offtake
Growth /
Price / Cost
Re-based
FY23
Commodities
WALA
FY23
Explosives
Re-basing
FY23
Ag & IC
Increase
Decrease
Total
+15%
(1) WALA ammonia sales prices are based on a combination of index Ammonia Tampa prices and 1-month lagged index Ammonia Tampa prices. The index price shown in the table represents the
average index price for the financial year adjusted for the one-month lag.
(2) Average closing price of Nymex Henry Hub 1-month futures.
OPERATING AND FINANCIAL REVIEW
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Year ended 30 September
DYNO NOBEL ASIA PACIFIC
FY24
FY23
Change %
Thousand metric tonne
Ammonium Nitrate
– manufactured at Moranbah
331.2
372.1
(11)
Ammonium Nitrate sold
722.8
756.9
(5)
A$m
Australian Coal
593.7
556.4
7
Base & Precious Metals
540.2
550.4
(2)
International
344.5
393.8
(13)
Total Revenue
1,478.4
1,500.6
(1)
EBIT
256.7
188.3
36
EBIT margin
17.4%
12.5%
Business Performance
Dyno Nobel Asia Pacific (DNAP) FY24 earnings of $257m, increased
$68m compared to the pcp due to the following:
Customer Recontracting: $45m growth on the pcp from positive
customer recontracting outcomes in Australia with the successful
renewal of a significant portion of the customer contract book now
completed.
Customer Growth: $22m growth on the pcp, mostly driven by higher
activity levels across Metals customers, improved performance in
Western Australia and favourable mix in the Coal portfolio.
Technology Growth: $11m growth on the pcp, driven by strong
electronics and Differential Energy emulsion volumes.
Titanobel: $3m growth on the pcp, driven by increased export
demand and improved pricing with customers. Business
integration and synergy is progressing in line with the acquisition
plan.
EBIT Margins: EBIT margins improved significantly from 12.5%
in the pcp to 17.4% in FY24 primarily due to the impact of
recontracting outcomes which have a direct benefit to EBIT.
The decrease in total revenue for the DNAP business was largely
a function of a deterioration in exchange rates impacting revenue
in the international businesses.`
Moranbah Plant: Production was 41kmt lower than the pcp due to the
impact of the closure of Gibson Island as well as the short shutdown in
March 2024 to complete the planned N2O abatement project.
Market Summary
Australian Coal
40% of DNAP revenue for the year was generated from the
Australian Coal sector, most of which was from supply to the
metallurgical coal mines in the Bowen Basin.
Volumes from the Australian Coal sector decreased approximately
6% due to lower Moranbah production volumes as noted above.
Base & Precious Metals
37% of DNAP revenue was generated from the Base & Precious
Metals sector, which comprises iron ore mines in Western Australia
and hard rock and underground mines throughout Australia.
Volumes from the sector decreased 4% compared to the pcp as
a result of temporary reductions in mining activities at certain
customer sites.
International
23% of DNAP revenue was generated internationally in Indonesia,
Turkey, Papua New Guinea and France.
Volumes decreased by 1% compared to the pcp, mainly driven by
reduced mining activities at large customer site.
Manufacturing
Production at Moranbah was 11% lower in FY24 reflecting the
closure of Gibson Island. Ammonia Plant reliability improved to
96% following a strong second half performance.
Dyno Nobel Asia Pacific
Year ended 30 September
Fertilisers Asia Pacific
FY24
FY23 Change %
Thousand metric tonne
Phosphate Hill production
(ammonium phosphates)
739.5
864.4
(14)
Gibson Island production
(urea equivalent)
–
138.9
(100)
A$m
Manufacturing
472.4
648.8
(27)
Distribution
1,625.6
1,554.6
5
Fertilisers APAC Revenue
2,098.0
2,203.4
(5)
Manufacturing
59.6
107.5
(45)
Distribution
60.2
45.7
32
Fertilisers APAC EBIT
119.8
153.2
(22)
EBIT margin
5.7 %
7.0 %
EBIT margin
Manufacturing
12.6%
16.6%
Distribution
3.7%
2.9%
Notes
Fertilisers APAC
Realised A$/US$ Exchange Rate(1)
0.66
0.72
Total Fertilisers APAC volumes sold (kmt)
2,714.2
2,703.7
Domestic Fertilisers APAC volumes
sold (kmt)
2,169.2
2,035.8
Phosphate Hill
Realised AP Price (US$/mt)
569
591
Phosphate Hill production sold (kmt)
765
825
Realised AP Freight Margin (US$/mt)
7.0
5.1
Realised Cost per Tonne of AP (A$/mt)*
788
723
Gibson Island
Realised Urea Price (US$/mt)**
N/A
519
Gibson Island production sold subject to
urea price movement (kmt)
N/A
183
* Weighted Average of AP including port costs.
** GI manufacturing ceased operations in January 2023, FY23 Urea price stated as at 30 Sept 2023
Business Performance
Fertilisers Asia Pacific earnings of $120m was 22% lower than the
pcp. Major movements for the year were due to the following:
Gibson Island Closure: As previously disclosed, the Gibson
Island plant ceased manufacturing activities in January 2023.
The resulting decrease in production resulted in a year on year
decrease in earnings of approximately $19m.
Cost of Gas – Phosphate Hill: Gas supply disruptions continued
at Phosphate Hill in FY24 due to the underperformance of a third-
party provider. As a result, gas was purchased through optimising
across short term contract arrangements and spot purchases. The
incremental cost of these purchases was $30m lower than the pcp,
with the reduction resulting from a combination of lower gas usage
and lower average cost.
Manufacturing Reliability: Manufacturing reliability was
impacted by manufacturing interruptions and adverse weather
events at Phosphate Hill during the first half of FY24. Production
recovered strongly in the second half although earnings were
impacted by $58m with lower production volumes compared to
the pcp.
Volumes and Margins: The Distribution business delivered its
strongest result on record(2) with earnings higher by $14m. The
favourable result was driven by strong customer demand due to
above average rainfall on the east coast of Australia and favourable
farming conditions. Distribution EBIT margin per tonne increased
strongly highlighting the benefit of the ongoing investment in
IPF’s distribution network and capability, as well as the effective
management of fertiliser supply chains to accommodate the
strength and timing of customer demand.
Market Summary
Total Fertilisers Asia Pacific domestic sales volumes of 2,169k metric
tonnes (mt) were 7% higher compared to FY23 sales of 2,036kmt.
Volume growth reflected the strong trading conditions in the
second half of FY24.
Global fertiliser prices were slightly weaker compared to the prior
year. Realised Ammonium Phosphate (AP) prices declined by 4%.
However, the supply and demand dynamic remained broadly
favourable to support stable prices in the near term.
Fertilisers Asia Pacific
FY24
Other
Titanobel
Technology
Customer
Recontracting
Re-based FY23
Moranbah Plant
(GI closure impact)
FY23
EBIT
A$m
+45%
Increase
Decrease
Total
188
(11)
177
45
22
11
3
257
(1)
Re-basing
FY23
FY24
Distribution
Manufacturing
Reliability
Cost of Gas
- Phos Hill
Re-based FY23
GI Closure
FY23
EBIT
A$m
153
14
120
134
(19)
30
(58)
Manufacturing
Re-basing
from FY23
Distribution
Increase
Decrease
Total
(1) This rate is after allowing for the impact of hedging and is therefore different to the average spot rate for the year.
(2) Highest earnings since IPL began reporting Fertilisers Distribution as a separate line item in 2017.
OPERATING AND FINANCIAL REVIEW
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Manufacturing
Manufacturing performance in the Fertilisers Asia Pacific business
in FY24 was as follows:
Phosphate Hill
Ammonium Phosphate production decreased to 740kmt, down
14% on the pcp. The lower production reflects unplanned outages
in the first half of FY24 in the ammonia and granulation plants at
Phosphate Hill. Production was also impacted by the Cyclone Kirrily
event and associated flooding in parts of northwest Queensland.
Production volumes improved significantly during the second half
of FY24 with improved plant reliability. Production in the second
half of FY24 at 479kt was 10% higher than the pcp.
Ammonium Phosphate cost per tonne increased in FY24 reflecting
the reduced production levels in the period.
Outlook and Sensitivities
IPL does not generally provide profit guidance, primarily due to the
earnings variability resulting from commodity price and foreign
exchange movements. Instead, IPL provides an outlook for business
performance expectations and sensitivities to key earnings drivers
based on management’s current view at the time of this report.
Outlook
Dyno Nobel Global
» The global Dyno Nobel business is expected to benefit
significantly from the sustainable transformation project.
» Turnarounds in FY25 are expected to have an earnings impact
of $45m to $55m for the year.
Dyno Nobel Americas
» The base Explosives business is expected to achieve underlying
growth rates in the mid-single digit range.
» The Metals markets are expected to continue to perform
strongly and grow at above-GDP rates.
» Quarries & Construction markets are expected to be relatively
subdued in the first half of FY25 due to the impacts of recent
hurricanes in the US.
» Earnings will be impacted by turnaround activities at LOMO
and Cheyenne plants and additional costs associated with
global shortages of TNT.
» The first half / second half earnings split for FY25 is expected to
be more pronounced than prior years at approximately 30% in
the first half and 70% in the second half.
Dyno Nobel Asia Pacific
» Positive market conditions are expected to remain in Australia
including firm, short-term demand outlook for coal and iron
ore, and a tightening AN market.
» Customer recontracting is expected to deliver further earnings
benefits in FY25.
» Moranbah production forecast is expected to be approximately
290kmt to 300kmt in FY25 compared to 331kmt in FY24 due to
a planned 8 week turnaround of the ammonia plant.
» Titanobel earnings growth is expected to continue, consistent
with the acquisition business case and synergy realisation
opportunities.
» Technology growth is expected through the expansion of
premium Differential Energy emulsion and continued uptake of
premium electronic detonator technology, including Cyberdet
wireless detonators.
» The first half / second half earnings split is again expected to be
weighted towards the second half (approximately 40% in the
first half and 60% in the second half).
Transformation Program
» The Dyno Nobel transformation program is progressing well
and is expected to deliver further benefits in FY25.
» The Group currently expects an FY25 exit run rate of ~40-50%
of the estimated total ~$300m EBIT uplift from the program.
Fertilisers Asia Pacific
» Fertiliser’s earnings will continue to be dependent on global
fertiliser prices, gas prices, the A$:US$ exchange rate and
weather conditions.
» The FY25 production range for Phosphate Hill is forecast to be
between 790kmt to 860kmt principally as a result of planned
maintenance activities required to conduct repairs and other
work to increase site reliability over the period and into the future.
» As a result of the planned outages, production at Phosphate
Hill in FY25 is expected to be lower in the first half with
approximately 40% to 45% of the full year production forecast
to be delivered during the first half of FY25.
» Phosphate Hill gas – Phosphate Hill will continue to use a mix
of supply sources including, gas supplied under the current
contract from Power and Water Corporation (PWC), and top-
up gas from Northern Territory and East Coast suppliers. The
diversity in gas supply has ensured Phosphate Hill production
was not affected by the reduction of contracted gas supply
from PWC. The incremental cost of procuring shortfall gas will
vary significantly depending on the level of contracted gas
that is supplied to the plant. IPL is currently assessing a range
of gas cost scenarios. Based on these scenarios, IPL expects the
incremental cost of shortfall gas compared to contract pricing
in FY25 to be in the range of $30m to $90m depending on the
timing of the recommencement of supply under the contract.
» A further update on Phosphate Hill gas supply will be provided
at half year.
» Distribution - earnings are expected to be within the normal
$40m to $60m range, dependent on market conditions.
» The first half / second half earnings split for FY25 is expected to
be more pronounced than prior years at approximately 20% in
the first half and 80% in the second half.
Group
Corporate: Corporate costs are expected to be approximately
$50-55m in FY25.
Borrowing Costs: Net borrowing costs for FY25 will be impacted
by the size and timing of any returns of capital to shareholders,
including the on-market share buyback. Net interest expense in
FY25 is forecast to be $125m to $130m.
Taxation: IPL’s effective tax rate for FY25, excluding IMIs is
expected to be between 20% and 25%. The expected increase in
the Group’s effective tax rate from the FY24 level is mainly driven
by a reduction in the percentage of taxable earnings in the US
following the sale of WALA. The tax rate range is highly sensitive to
earnings mix movements across jurisdictions.
Sensitivities
The table provides sensitivities to key earnings drivers and should
be read in conjunction with the footnotes found below.
Commodity
Proxy Index
EBIT Sensitivities
Americas
Urea(1)
FOB NOLA
+ / - US$10/mt = +/-U$1.8m
FX EBIT Translation(2)
+ / - A$/US$0.01 = -/+ A$3.0m
Asia Pacific
Ammonium Phosphates(3) FOB China/Saudi
+ / - US$10/mt = +/-A$11.2m
FX EBIT Transactional(3)
+ / - A$/US$0.01 = -/+A$9.5m
Note: Proxy Index prices are available on Bloomberg.
Sustainability
IPL’s commitment to operating sustainably is driven by the
Company’s values which are core to the way it does business. IPL’s
strategy is to deliver sustainable growth and shareholder returns
while proactively managing those issues most material to the long-
term sustainability of its business.
Issues considered material to the sustainability of the Company are
included in its 2024 Annual Report, 2024 Corporate Governance
Statement, 2024 Climate Change Report, and 2024 Sustainability
Report. These reports are expected to be released on 18 November,
2024.
IPL is committed to respecting human rights and addressing
modern slavery risks in its operations and supply chains and will
release its fourth annual Modern Slavery Statement in February
2025. This Statement sets out the actions taken in FY24 as well as
future management plans.
Sustainability Performance Benchmarking
IPL has been included in the S&P Global CSA (formerly the Dow
Jones Sustainability Index -DJSI) since 2010. Selection for the index
is made each year following a review of IPL’s sustainability reporting
as well as a comprehensive Corporate Sustainability Assessment
questionnaire. IPL’s performance is benchmarked against peers in
the global Chemicals sector.
During 2024, IPL was again selected for membership after
completing the comprehensive Corporate Sustainability
Assessment (CSA) questionnaire.
S&P Global Corporate Sustainability Assessment
Calendar Year
2024
2023
2022
2021
2020
2019
DJSI Dimension
Economic
66
71
78
81
78
72
Environmental
56
61
72
69
71
73
Social
61
64
69
65
58
60
Total for IPL
60
65
73
72
69
69
Chemicals sector average
29
23
26
30
36
47
The Company is also a member of the FTSE4Good Index, completes
the CDP Climate Change and Water Security reports each year
and the EcoVadis questionnaire biennially, and is rated by MSCI,
Moody’s VE Connect, Sustainalytics, CGI Glass Lewis and the CSR
Hub.
During 2024, IPL participated in the Bloomberg Gender-Equality
Index (GEI) for the sixth consecutive year. The GEI is a modified
market capitalisation-weighted index that aims to track the
performance of public companies committed to transparency
in gender-data reporting. The reference index measures gender
equality across five pillars: female leadership & talent pipeline,
equal pay & gender pay parity, inclusive culture, anti-sexual
harassment policies, and pro-women brand. The 2024 Index has
not yet been released by Bloomberg.
(1) Based on St Helens plant capacity of 175kmt of urea equivalent product.
(2) Based on actual FY24 Dyno Nobel Americas EBIT (excl WALA) of US$134m and an average foreign exchange rate of A$/US$ 0.66.
(3) Based on actual FY24 Phosphate Hill production of 740kmt; average FY24 realised AP price of US$569; and an average foreign exchange rate of A$/US$ 0.66.
OPERATING AND FINANCIAL REVIEW
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Principal Risks
(1) Refer to IPL’s Climate Change Policy (available on IPL’s website) for further details. We support the international climate agreement developed at the 2015 Paris Conference of Parties, as well as the
Nationally Determined Contributions of the countries in which we operate.
Set out below are the principal risks and uncertainties associated with IPL’s business and operations. These risks, which may occur
individually or concurrently, could significantly affect the Group’s business and operations. Any loss from such risks may not be recoverable
in whole or in part under IPL’s insurance policies. The treatment strategies noted below are not exhaustive and do not remove the risks;
while in some cases they may either partially or fully mitigate the exposure, residual risk remains. The Group’s process for managing risk
is set out in the Corporate Governance Statement.
Risk Categories
Description and potential consequences
Treatment strategies employed by IPL
Macroeconomic
Factors
Geopolitical uncertainty borne out of current economic and
supply chain challenges in China, impacts from Russia’s invasion
of Ukraine, escalating tensions / military activity in the middle
east and global inflationary pressures could have a negative
impact on IPL’s cost base, sales and/or market share.
» IPL monitors long term trends in the mining and fertiliser sectors
through industry forecasts of commodities demand.
» In the mining sector these trends have been incorporated into our
business strategy through aligning our explosives business growth
with predicted customer demand profiles by segment and the
delivery of technology solutions to leverage these.
» In the fertiliser sector analysis of customer demand, climate and
seasonal forecasts and supply chain reliability inform strategy
development and product offerings.
» Continuous review of country specific risks helps proactive
management of potential exposures.
Strategy
Continuing consolidation in the explosives industry could lead
to heightened competition and pricing pressures.
In respect of IPL’s advanced technologies, there is a risk that the
intellectual property may be replicated or challenged, resulting
in potential loss of business.
The execution of IPL’s strategy to separate its fertilisers and
explosive business is contingent on a number of external
factors, including market conditions and obtaining relevant
approvals, that could delay the execution of this strategic
initiative and disrupt the normal business operations.
Dyno Nobel’s Transformation Program is expected to require
significant changes to the company’s operating model,
including changes to reporting structures, processes,
procedures and systems which could result in unexpected
disruptions to normal business operations and fail to deliver
the expected benefits in full or within the forecast timeframes.
» IPL seeks to maintain or develop competitive cost positions
in its chosen markets, whilst maintaining quality product
and service offerings.
» IPL continues to invest in new technologies and premium product
offerings in order to meet the needs of our customers while
limiting and improving both IPL’s, and our customers’, carbon
footprints.
» IPL has implemented business separation governance processes
designed to minimise cost and disruption to normal operations
and meet market expectations of the proposed structural
separation process.
» Dyno Nobel has established governance frameworks to identify
and mitigate the risks associated with the Transformation
Program. These include, but are not limited to, the establishment
of a dedicated project management office, detailed governance
processes and procedures and strict adherence to management
of change processes.
Climate Change
The global energy transition presents strategic risks and
opportunities for IPL. These may include a rapid transition away
from fossil fuels, which could significantly decrease demand for
thermal coal, and a shift to new technologies, such as renewable
hydrogen. The impact of carbon emissions, and governments’
policies and actions to limit them, may also have an impact on
IPL’s operations and supply chains.
In addition, there are physical risks associated with climate
change which could impact on IPL’s operations, supply
chains and customers. A detailed discussion of the risks and
opportunities identified through IPL’s assessment of both
physical and transitional risks can be found in IPL’s 2023
Climate Change Report.(1)
» IPL is continuing to progress a number of major projects to
support its Net Zero Pathway and has allocated ‘Sustainability
Capital’ within the Capital Allocation Frameworks for its explosives
and fertilisers businesses in order to support these. They include
the Moranbah Tertiary N2O abatement project, which was installed
this year, the LOMO N2O Abatement Project which is targeted
for installation in 2025, and pursuing Green Ammonia projects.
» Through engagement with an expert third party in 2024, a
comprehensive assessment of the physical and transitional risks
and opportunities associated with climate change was completed
for each of IPL’s businesses using four updated future climate-
related scenarios. The scenarios used and the identified risks and
opportunities, along with management strategies for each, are
included in IPL’s 2024 Climate Change Report.
Health, Safety,
Environment,
Community
IPL is exposed to operational risks associated with the
manufacture, transportation, storage and use of hazardous
and inherently dangerous products and materials.
IPL, its customers and suppliers, are required to comply with
various environmental laws and regulations and have specific
operating licences in place. Failure to abide by the laws and/
or licensing conditions may have a detrimental effect on IPL’s
operations and financial performance.
» A comprehensive Health, Safety, Environment and Community
(HSEC) management system is in place.
» HSEC risk identification, mitigation and management strategies
are consistently employed across all sites.
» The Group continues to foster and encourage a Zero Harm
culture with a focus on leadership development and creating an
atmosphere of “Safe Ground” through programs such as SafeTeams.
» Systems and procedures are established, documented, implemented
and maintained to reduce HSEC risk in all work activities.
» The Group has strict processes around the stewardship, movement
and safe handling of dangerous goods and other chemicals.
Risk Categories
Description and potential consequences
Treatment strategies employed by IPL
Compliance
IPL’s business, and that of its customers and suppliers, is subject
to various laws, policies and regulatory provisions across the
jurisdictions in which it operates, including anti-bribery and
corruption laws, sanctions, anti-trust laws, modern slavery,
domestic or international laws relating to import and export
quotas, tariffs and geopolitical risk. Failure to abide by these
laws and regulatory provisions may adversely impact its
business, financial condition and operations.
IPL is also exposed to potential regulatory actions, legal
claims or other disputes in the course of its business and
in connection with its operations.
» Corporate functions are in place to ensure regulatory risks are
identified and addressed, including regular reviews of country
regulatory risk, comprehensive checks of customers and suppliers
for compliance with relevant sanctions and modern slavery laws,
and the undertaking of due diligence processes as required.
» IPL has dedicated business processes to monitor and manage
the compliance requirements for ethical procurement, including
modern slavery.
» IPL engages with governments and other key stakeholders
to ensure potential adverse impacts of regulatory changes
are understood and, where possible, mitigated.
» Regular training is provided to relevant staff on their obligations
under applicable laws.
» IPL’s whistleblower hotline allows employees and third parties to
anonymously notify the Company of any suspected fraudulent,
illegal or unethical activity.
People
IPL operates in regional and remote locations where it can
be difficult to attract and retain critical and diverse talent.
A shortage of skilled labour or loss of key personnel could
disrupt IPL’s business operations or adversely affect financial
performance.
Changes in employment and workplace relations laws across
several jurisdictions within which IPL operates is increasing the
coverage of collective agreements, placing upward pressure
on remuneration and creating the need for new methods of
workplace engagement. There is a possibility of increased
industrial action as a result of these changes.
» Critical roles are identified and policies implemented to help
ensure that appropriate succession and retention plans are
in place for those roles.
» Employee remuneration and benefits are actively monitored
and benchmarked to ensure competitive offerings to attract
and retain staff.
» Active monitoring is in place to ensure compliance with
employment laws and industrial instruments.
» IPL has capable leaders who engage directly with their teams,
experienced internal employee relations specialists, and
constructive relationships with relevant trade unions.
Manufacturing
IPL’s manufacturing systems are vulnerable to equipment
breakdowns, energy or water disruptions (including high
baseline water stress, resulting from climate change), natural
disasters and severe weather events, unforeseen human error,
legacy design issues, sabotage, terrorist attacks and other
unforeseen events which may disrupt operations and
materially affect financial performance.
Sulphuric acid is a major raw material required to produce
ammonium phosphates. Sulphuric acid supply into Phosphate
Hill could be negatively impacted, should the Mt Isa Mines
copper smelter close.
Failure to access suitable ore reserves, due to a lack of resource
verification or resulting from cultural heritage considerations,
may result in a shortening of Phosphate Hill’s operational life.
In September 2024, IPL announced a strategic review of assets
within the fertiliser business (IPF). The outcome of this review
may result in the closure of fertiliser manufacturing facilities
held within IPF. Should IPL decide to close these facilities, it
is possible that closure and remediation costs could exceed
provisions already made.
» The Group continues to implement its Operations Risk
Management (ORM) Program designed to effectively manage
material operations risks.
» The Group has implemented global engineering standards
and processes to prevent reliability related events.
» IPL undertakes business continuity planning and disaster
preparedness across all sites.
» Insurance is obtained to ensure the appropriate coverage is
in place with regard to damage to the Group’s plants, property
and related business interruption costs.
» Glencore recently announced that it expects the operation of the
smelter to continue to 2030 pending capital approvals and we are
continuing to work on alternative sources to mitigate the loss of
sulphuric acid due to potential closure or reduced production.
» A life of mine project is currently underway at Phosphate Hill.
Discussions with traditional owners in relation to access to
potential mine areas are also ongoing.
» IPL develops and updates closure and rehabilitation estimates in
accordance with applicable Accounting Standards and regulatory
requirements.
Gas Supply
There is a risk that a reliable, committed source of natural
gas (a major input required for ammonia production) at
economically viable prices may not be available for IPL’s
global manufacturing operations.
» Medium term gas contracts are in place for the Australian
manufacturing sites. The contracts have various tenures and
pricing mechanisms. IPL sources replacement gas, when required,
from a mix of third-party sources and explores new gas supply
arrangements as part of ongoing operations.
» The natural gas market in the United States is deep and liquid.
Customer
IPL has strong relationships with key customers and these
relationships are fundamental to the Group’s financial
performance. The loss of key customer(s) may have a
negative impact on the Group’s financial performance.
» The Group attempts to diversify its customer base and
geographical segments to reduce the potential impact of the
loss of any single customer.
» Where practical, for customers in the Explosives sector, IPL prefers
to engage in long term customer contractual relationships.
» Ongoing investment in development and commercialisation
of differentiated products and services.
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Risk Categories
Description and potential consequences
Treatment strategies employed by IPL
Supply Chain
Disruption to the timeliness and economic supply of key raw
materials represents a potential risk to the Group’s ability to
manufacture and supply products. In some markets in which
IPL operates, economic supply of key raw materials is reliant
on only a few external parties and in some cases, only one.
In some markets, the availability of transportation routes for
moving materials is reliant on only a few external parties.
There is a risk that if these transportation routes or methods
are disrupted, IPL’s manufacturing and distribution capacities
may be reduced, impacting plant uptime and earnings.
» Where possible, flexible supply chain and alternative sourcing
solutions are explored and maintained as a contingency.
» Reviews of single-point sensitivity exposures within IPL’s supply
chain are undertaken and IPL is actively seeking to reduce single
source supply sensitivity.
» Plants have storage capacity, as well as logistics capability, that
allows for offtake to be distributed via various channels, including
via rail, truck, barge and pipeline.
» More detail on management strategies to mitigate the impacts of
future extreme weather events on IPL’s supply chains are described
in IPL’s 2023 Climate Change Report.
Commodity Price
The pricing of internationally traded commodities is based on
international benchmarks and is affected by global supply and
demand forces. Price fluctuations in these products, combined
with fluctuations in foreign currency exchange rates, particularly
the A$/US$ rate, could adversely affect IPL’s manufacturing
operations and financial performance.
Weaker hard and soft commodity prices could have an
adverse impact on customers’ demand, impacting volume
and market prices.
» IPL manages commodity price risk via a trading book approach
including value at risk modelling which allows the business
to better manage its short and medium-term exposures to
commodity price fluctuations, while taking into account its
commercial obligations and the associated price risks.
» The Group may enter into derivative contracts, where available on
a needs basis, to mitigate commodity price risk. However, in some
instances price risk exposure cannot be economically mitigated by
either contractual arrangements or derivative contracts.
» To ensure volume and price commitments are upheld, the Group
has firm customer supply contracts.
» The Group also has internal currency risk and hedging policies.
Demand
The current global economic and business climate, energy
situation, and any sustained downturn in the North American,
South American, Asian, European or Australian economies may
adversely impact IPL’s overall performance by affecting demand
for industrial explosives, industrial chemicals and fertilisers and
related products and services, and profitability in respect of
them.
Seasonal conditions (particularly rainfall) are a key factor for
determining demand and sales of explosives and fertilisers.
Any prolonged change in weather patterns and severity of
adverse weather conditions, as well as changes to growing
regions in the Fertiliser business, could impact the future
profitability and prospects of IPL.
» Diversification across explosives and fertilisers markets, including
across numerous geographically diverse locations and through
exposure to, and diversity across, varied market segments, helps
manage exposures.
» Continuous review of country specific risks helps proactive
management of potential exposures.
» The Company’s Integrated Business Planning process incorporates
forecasting on a rolling 24-month basis which enables scenario
planning and some supply flexibility. Forecasts are based on typical
weather conditions and are reviewed on an ongoing basis as the
seasons progress to help align supply to changing demand.
» IPL also completes annual strategic reviews, which include a deep
dive into the different markets and segments within which IPL
operates.
Finance
Foreign exchange movements against the Australian dollar,
movements in interest rates and imposition or removal of
tariffs may materially affect IPL’s financial performance.
Changes in tax legislation or compliance requirements in the
jurisdictions in which IPL operates may result in additional
compliance costs and/or increased risk of regulatory action.
» IPL’s capital management strategy is aimed at maintaining an
investment grade credit profile, an appropriate mix of A$/US$
debt, funding flexibility by accessing different debt markets and
reducing refinancing risk by ensuring a spread of debt maturities.
A detailed discussion of financial risks is included in Note 18
(Financial Risk Management).
» Financial risk management is undertaken in accordance with
policies, including hedging strategies, that are approved by
the Board.
» IPL engages with governments and other key stakeholders
to ensure potential adverse impacts of proposed fiscal and/or tax
changes are understood and, where possible, mitigated.
Security
IPL’s operations are potentially exposed to sabotage, terrorist
attacks and other unforeseen events which may disrupt IPL’s
operations and supply chain and materially affect its financial
performance.
» The Group has strict processes around the stewardship, movement
and safe handling of dangerous goods and other chemicals.
» IPL undertakes business continuity planning and disaster
preparedness across all sites.
Risk Categories
Description and potential consequences
Treatment strategies employed by IPL
Cyber
Loss or exposure of sensitive data relating to IPL or its internal
or external stakeholders may result in a negative impact to
reputation or competitive advantage, and potential breach
of regulatory compliance obligations.
IPL may be the target of cyber-attacks which could result
in commercial, financial, health and safety, environmental,
community or reputational impacts.
» Policies, procedures and practices are in place regarding the use
of company information, personal storage devices, IT systems and
IT security.
» Assurance of cybersecurity program and controls effectiveness
is validated through annual audits, penetration testing, disaster
recovery testing, third-party risk assessments, tabletop exercises,
and critical control verifications.
» A data breach response plan has been established to respond
to, and mitigate the effects of, any instances of sensitive data
breaches that may occur. This plan provides a clear escalation
path to the Global Crisis Management Team in the event of a
broad cybersecurity incident.
» Security Operations Centre, threat intelligence, advanced threat
analytics, system/network controls and industry standard cyber
frameworks are collectively leveraged for the prevention and
detection of, and response against, cyber threats.
» To ensure a degree of risk transfer in the event of a major
cyber security incident, IPL retains a cyber insurance policy.
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
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Being a
Sustainable
Business
Our goal is to achieve
sustainable growth and
shareholder returns
while prioritising the
well-being of our people,
communities, and the
environment.
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
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Significant Event
Management targets
achieved
Zero Significant
Environmental
Incidents
Improvement for Process
Safety Management
– Zero Tier 1 Process
Safety incidents
Zero Harm metrics call outs
Keeping People and the Environment Safe
At IPL, our commitment to Zero Harm for Everyone, Everywhere is at the core of our values.
This commitment extends to our employees, contractors, customers, shareholders, and the
wider community.
(1) TRIFR is calculated as the number of recordable injuries per 200,000 hours worked and includes contract workers.
(2) Serious Harm / Hurt includes any multiple fatalities, fatality or injuries / illnesses causing severe body damage with probable long-term and / or significant life altering complications (permanent
disabling).
(3) Significant Environmental Incidents as assessed against IPL’s internal risk matrix with consequences of 5 or higher on a 6-level scale.
(4) Tier 1 and 2 Process Safety Incidents as defined by the Centre for Chemical Process Safety.
While we establish robust health and safety standards and systems
at a global level, the responsibility for safety outcomes rests with
local teams. We empower and develop our employees, expecting
everyone to take the lead in promoting Zero Harm. We encourage
our workforce to stop work or speak up if they encounter unsafe
conditions, reinforcing our belief that safety is a shared responsibility.
Our focus also includes the wellbeing of our people, with an
emphasis on occupational and mental health.
Zero Harm performance
In FY24, we continued to progress our ambition to achieve industry
leading performance in occupational health, personal safety,
process safety and reducing our impact on the environment.
Our overall performance included a number of positive results
however some critical areas need continued focus, and we remain
committed to pursuing year-on-year improvement in our Zero
Harm ambition.
The Total Recordable Injury Frequency Rate (TRIFR)(1) has
increased with a Group TRIFR of 1.08 in FY24, above the target of
0.8. The Group did not achieve zero serious harm(2) with one of our
employee’s fatally injured in a motor vehicle incident while driving
on a public road in Queensland, Australia, which has reinforced
our focus on transport related critical controls. Integration of key
IPL systems and processes has also continued for Titanobel with
Titanobel's inclusion in Group reporting commencing in FY24.
The Group remains focused on enhancing personal safety
performance by adhering to safety fundamentals and improving
operational risk management. We aim to foster a mentally healthy
workplace and ensure visible safety leadership through critical
control verifications. It’s important to emphasise the significance
of safety through our actions and targeted global improvements
like Journey Management. Our global leadership and behavioural
SafeTEAMS program has laid the groundwork for the new
SafeLEADER program. This initiative aims to embed leadership
behaviours and mindsets that support psychological safety.
IPL was awarded the Health, Safety & Environment Award at the
Chemistry Australia Industry Awards for the Gibson Island “Finish
with Pride” Program. This recognition is a testament to the site's
commitment to prioritising the well-being of its workforce, even
during challenging times such as closure and transition. In FY24,
IPL marked the 30th anniversary of the tragic events that occurred
in Porgera, Papua New Guinea, on 2 August 1994, which resulted
in the loss of eleven lives. To honour the memory of those lost, we
held various commemorative activities, including a memorial video,
toolbox reflections, commemorative events, and the development
of a global industry safety share.
We have been able to sustain our excellent environmental
performance with Zero Significant Environmental Incidents(3).
This has been achieved through a focus on self-verification of
core environmental performance and compliance requirements.
Our FY24 World Environment Day campaign focused on how
"Our Response Matters" in environmental hazard identification
and emergency response. Process Safety Incidents have increased
with 18 Tier 1 and Tier 2 events(4) reported in FY24 compared
to 14 last year. Overall, this is a 28% improvement over the last
two years.
There were zero Tier 1 events in FY24 (compared to two in FY23)
resulting in a significant year-on-year reduction. This improvement
reflects an increased focus on material process safety risk
management activities, process safety hazard and near miss
reporting and visibility of new leading process safety metrics.
The targeted performance in significant event management
for investigations completed and actions closed out on time
was achieved. The quality of our investigations continues to
improve with a focus on identification and the embedding of
organisational learnings into our systems. We have continued
to improve on a strong reporting culture of significant events
including hazards by simplifying requirements and a focus on
core HSE fundamentals. Repeat Significant Events have also
reduced as a result of implementation of controls and intervention
strategies during FY24.
0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY24
FY23
FY22
FY21
FY20
1.08
(81)
0.58
(41)
0.89
(66)
0.92
(66)
0.91
(66)
TARGET
0
5
10
15
20
25
30
35
40
FY20
FY21
FY22
FY23
FY24
2
12
6
19
6
32
3
21
0
18
CCPS Tier 1
CCPS Tier 2
Zero Harm snapshot
IPL TRIFR1
(number of recordables)
IPL Process Safety Incidents
(number of Tier 1 & Tier 2 events)
Simplify
Get the
Fundamentals Right
Lead and Engage
Strengthen our
Learning Culture
Simplification of significant
event hazard reporting and
investigation requirements
has resulted in increased
reporting.
Training and exercise
successfully completed for
Global Crisis and Emergency
Management Team to test
how we identify, assess,
prepare, respond and
recover from events.
Pilot of online ergonomics
risk assessment tool for
hazardous manual tasks
driving risk reduction
improvement activities.
New low complexity change
management process
designed and implemented.
Global reporting system
upgraded to ensure
psychosocial event reporting.
Pilot of environmental
functional assurance
framework to drive
conformance to
environmental standards
and compliance with
legislative requirements.
79% of all IPL sites had
zero recordable injuries
in FY24.
Introduction of leading
metrics for process
safety and material risk
management.
Operations Risk
Management is setting
the standard of how
material risks are managed
resulting in improvement
in hazard awareness,
reporting and critical
control management.
Sustained significant
reduction in environmental
consequence 4+ events
reported.
Development of a global
mental health framework
including psychosocial risk
management.
Development and
standardisation of a global
Journey Management
process following a global
critical control verification
being completed.
Focus on visible safety
leadership in the field and
ensuring critical controls
are in place and effective.
Combined World Safety Day
and World Environment
Day campaign theme of
"Our Response Matters"
to support our culture by
making every conversation,
every action and every
learning opportunity matter.
Pilot of a SafeGround survey
to assess the effectiveness
of psychosocial safety.
Implementation of core
HSE acquisition integration
strategies and plans.
Further embedded Global
Functional Collaboration
Networks for Process Safety,
Health and Wellbeing,
Explosives Safety (new),
Environmental Protection
and Governance of
Significant Events.
SafeLEADER program
designed as an extension
to SafeTEAMs program.
A company-wide safety
stand-down was held after
the tragic loss of one of our
employees as the result of a
car accident on a public road
in Queensland, Australia to
facilitate discussions about
workplace safety & safe driving
practices.
Focus on identification of
organisational learnings and
risk management effectiveness
during investigations of
Significant Events to ensure
learnings are embedded into
our controls.
IPL awarded the Health, Safety
& Environment Award at the
Chemistry Australia Industry
Awards for the Gibson Island
plant shutdown “Finish with
Pride” Program.
A 30-year memorial of the
Porgera tragedy was held
to honour the memory of
those who lost their lives and
to reflect and share on the
lessons learned.
Improved culture of significant
event reporting, investigations
and action management.
Completed functional
assurance on material risk
management.
Zero Harm key activities
Our Zero Harm strategy outlines our approach to ensuring the safety of people and the environment. It is guided by four strategic
themes: Simplify, Get the Fundamentals Right, Lead & Engage and Strengthen our Learning Culture. These themes shape our annual
execution plans and focus our efforts on achieving safety excellence.
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
38
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39
Incitec Pivot Limited Annual Report 2024
Our People and Culture
Our team of over 5,600 employees, who work together across IPL's
global operations, are passionate and driven. Our Values guide
our everyday attitudes, decisions and actions, and are the cultural
glue that hold the organisation together. We believe that what we
achieve, and how we achieve it, are equally important.
Safe, inclusive, and high-performance
culture
Our approach to building our culture is multifaceted and includes
the continuous alignment of behaviours, management systems
and symbols.
Safe culture
At the heart of our culture is the physical and psychological
safety of our people. Our safety culture supports our broader safety
strategy, and we have worked to further strengthen it through
continuing:
» The rollout of our behavioural safety program – SafeTEAMS.
SafeTEAMS is a game changing program, with psychological
safety - known as Safe Ground – as one of its core concepts. We
know that our leaders are key to leading our safety culture, so
in FY24 we designed and piloted our SafeLEADER program. The
SafeLEADER program extends on the concepts from SafeTEAMS
and covers the ’what’ and ‘how’ of effective safety leadership.
» Work on the IPL Mental Health Framework including
psychosocial risk management, which serves as the strategic
foundation for addressing all aspects of mental health and
wellbeing, fostering safe, healthy and thriving individuals
and workplaces.
» The rollout of IPL’s Upstander training, aimed at creating
a culture where it is safe for everyone to speak up about
inappropriate behaviour, including Code of Conduct breaches.
In FY24, 565 employees participated in the program, with 54%
of our Australian employees having completed the program.
» Our work on diversity, equity and inclusion, a key aspect
of creating a mentally healthy workplace.
Inclusive culture
At IPL, we believe that diverse talent thriving in an equitable
and inclusive environment is vital to our success. By focusing
on diversity, IPL can attract exceptional talent from a broader
pool, which in turn enhances the range of skills, viewpoints and
ideas we bring to solving our customer and business challenges.
This approach also strengthens our partnerships within the
communities we operate.
We understand that the benefits of a diverse workforce can only
be fully realised in an equitable and inclusive environment. That is
why we are committed to providing a workplace where everyone’s
unique attributes, characteristics, perspectives, and contributions
are recognised, respected and valued, enabling us to achieve great
things together.
Our Diversity, Equity and Inclusion (DEI) strategy includes three key
focus areas to accelerate DEI:
1. People: increasing diverse representation through
deliberate, fit for purpose actions that improve recruitment
and retention outcomes
2. Leaders: equipping our leaders to lead DEI by having
clear expectations, building their capability and holding
them accountable for outcomes
3. Culture: leveraging the diversity of our workforce
through an equitable and inclusive culture where
we align behaviours, our management systems,
and symbols
Key actions to support a more diverse, equitable and inclusive
culture are below:
Safe, equitable and inclusive facilities reviews
Implemented 17 actions identified through our Physical Workplace
Equity and Inclusion Reviews undertaken in FY23, aimed at making
our physical work environments safer, more equitable and more
inclusive. These reviews involved identifying improvement
opportunities across areas such as equitable bathroom facilities,
ensuring personal protective equipment (PPE) accommodates
physical and cultural differences and physical accessibility.
Equity and Inclusion Reviews of core people processes
IPL continued its People Process Reviews, aimed at identifying
opportunities to improve the equity and inclusion of our
core people processes. In FY24, we completed reviews of our
onboarding, pre-employment medical, and talent and succession
processes. Further reviews are planned for FY25.
Inclusive Leaders
We revised and successfully piloted a new Inclusive Leader
program to equip leaders with practical skills and tools on
how to be inclusive. The program is being reviewed for global
application.
High-performance culture
In FY23, IPL commenced work to enhance a culture of high-
performance. In FY24, we evolved this work by further defining
the key cultural elements we want to enhance to deliver high
performance, informed by feedback from our team members
globally. Additionally, we began work on the systems required
to drive the culture we want to enhance.
Key highlights to support our high performance culture are below.
Updated operating model
In support of high performance and our updated business strategy,
we made changes to our operating model. The operating model
changes ensure a cost-efficient core business while positioning
resources in key areas to effectively pursue sustainable growth.
This has enabled us to further align and simplify our structures,
to improve the connection of work through the levels of our
organisation and providing our people with greater clarification
of their accountabilities.
Global People Insights Survey
The Global People Insights Survey measured our people’s
experience across engagement, experience versus expectations,
inclusion, and wellbeing, along with critical areas that impact these
measures. Combined with insights from our senior leader culture
survey, this feedback has enabled us to identify the strengths of
our existing culture and uncover opportunities for improvement.
This feedback has served as a key input in the work to further
define and enhance the cultural elements that are most important
to our people and our business.
Launch of IPL’s new reward and recognition platform
‘Appreciate’
In FY24, we launched a global reward and recognition platform
called ‘Appreciate’. This platform was utilised to reward and
recognise all employees globally for every month in which
our safety and financial objectives were met.
Climate Change
We recognise the challenge of reducing our own emissions while continuing to provide explosives and fertiliser products, through our
Dyno Nobel and IPF businesses, which unlock the potential in the Earth. We believe that our innovative products and services will play
an increasingly important role in reducing GHG, while increasing yields of food and fibre, and efficiently accessing the minerals and
aggregates required for renewable technologies and infrastructure rebuilding in a world impacted by climate change.
Our Climate Change Policy describes how the management of the risks, opportunities and impacts associated with climate change is
integrated into our six strategic drivers, on which the success of IPL is built.
Together with our policy commitments, these strategic driver components, shown in the diagram below, form the four pillars of our
Climate Change Strategy.
Our climate change strategy
Operational GHG reduction projects
During 2024, we completed installation of a project that will deliver
our ‘5% by 2025’ absolute GHG reduction target and approved
a second project which will underpin our ‘25% by 2030’ target.
The first of these is the $20m Moranbah Tertiary N2O Abatement
Project, which was officially opened in April 2024. The abatement
unit is expected to have a lifespan of 20 years and will abate
approximately 200,000 tonnes of CO2e per year.
The second is a similar project at the Louisiana, Missouri (LOMO)
AN manufacturing facility. Unlike Moranbah, which was built with
secondary abatement in 2012, LOMO has the Company’s only nitric
acid plant without some form of abatement already installed. Last
year, the LOMO Tertiary N2O Abatement Project passed through
Front End Loading (FEL) stage, with $2.8m invested. Approved for
installation in 2025, this unit is expected to reduce scope 1 GHG
by ~520,000 tCO₂e annually.
These are major capital intensive projects which, together, will
result in a 26% reduction in operational (scope 1 and 2) GHG
emissions against IPL’s 2020 baseline and a 41% reduction against
Dyno Nobel’s 2020 baseline.
Managing scope 3 GHG
During 2024, we continued to work across our business units
to develop management strategies to reduce scope 3. Progress
included the following:
» Commencement of the mapping of business unit procurement
and value chain processes which require integration of scope 3
information for purchasing decisions.
» Sending and receiving of supplier scope 3 GHG questionnaires
to major global suppliers, with a redesign to include a GHG
calculation template for suppliers who are calculating their
GHG for the first time.
» Selection and onboarding of a global GHG data management
platform with a specific scope 3 module to assist our business
units in tracking their scope 3 GHG throughout the year and
modelling the future impacts of various reduction strategies.
» Building the very first electric Mobile Processing Unit (eMPU)
complete with its own solar charging station.
» Continued testing and development of the use of biodiesel
and renewable diesel in our explosives products across the
Americas and Asia Pacific.
For more details, see the 2024 IPL Climate Change Report.
ENSURING STRONG
GOVERNANCE
Talented and Engaged
People: The right people
in the right roles, within
a culture of innovation,
with climate change
management roles,
responsibilities and
accountabilities
clearly defined.
REDUCING
OPERATIONAL
EMISSIONS
Manufacturing
Excellence: Reduce
emissions, increase
efficiencies and explore
new technologies.
DELIVERING
PRODUCTS
AND STRATEGIES THAT
REDUCE SCOPE 3
EMISSIONS
Leading Technology
Solutions: Develop and
deliver products and
services which reduce
customer GHG.
Customer Focus: Partner
strategically for customer
solutions and sustainable
product use.
MANAGING STRATEGIC
BUSINESS RISKS AND
OPPORTUNITIES
Profitable Growth:
Manage climate-related
financial risks and
opportunities strategically.
Zero Harm: Build
resilience to physical
climate change risks
and advocate for a
just transition.
1
2
3
4
OUR CLIMATE
STRATEGY
PILLARS
IPL’S SIX
STRATEGIC
DRIVERS
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
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Incitec Pivot Limited Annual Report 2024
FA S H I O N
J E W E L L E R Y
S U P E R M A R K E T
Sustainability
Our sustainability strategy
To deliver sustainable growth and shareholder returns while caring for our people,
our communities and our environment.
IPL is committed to operating in a manner which acknowledges
and proactively manages those issues which are most material
to the long term sustainability of our business, our people,
the environment and the communities in which we operate.
This commitment is driven by our Company Values, which are
core to our business, and is built into our six Strategic Drivers.
In order to identify those issues most material for our stakeholders
and our business, we conducted a comprehensive double
materiality review in 2024 to identify the sustainability-related
risks and opportunities which could have a material impact on our
financial position, or on the environment, our local communities,
our customers or other stakeholders. The steps in this process
followed Global Reporting Initiative (GRI) guidelines, and
supported adherence to the recently introduced International
Sustainability Standards Board (ISSB) reporting standards.
The identified sustainability-related risks and opportunities
have been grouped into six Sustainability Focus Areas for our
Sustainability Strategy over the next three years. These are shown
on the following page, along with 2024 highlights in each area.
Our 2024 Sustainability Report, released concurrently with
this Annual Report, includes the identified material risks
and opportunities in each Sustainability Focus Area, and
our management strategies for each of our business units.
It also describes the materiality assessment process, our key
stakeholders and our stakeholder engagement process.
Our annual Sustainability Reports and GRI Index and Data
Supplements can be accessed on our website.
Creating shared value sustainably
The natural resources our products unlock are central to modern life and essential for nutrition.
Our businesses are committed to unlocking the potential in the Earth, by sustainably delivering products to our mining, quarry &
construction, and farming customers into the future. During 2024, our products were used to help our customers unlock approximately:
DIAMONDS
6.1
million
carats
HORTICULTURE
(CARROTS, ONIONS,
POTATOES,
TOMATOES)
0.5
million
tonnes
MET COAL
86
million
tonnes
IRON ORE
512
million
tonnes
COPPER
683
kilotonnes
COTTON
0.4
million
tonnes
GOLD
11.9
million
ounces
THERMAL
COAL
149
million
tonnes
SUGAR
CANE
3.0
million
tonnes
WHEAT
8.4
million
tonnes
BARLEY
3.5
million
tonnes
PASTURE
(BEEF,
LAMB &
DAIRY)
5.7
million
tonnes
OTHER
BROADACRE
GRAINS
1.2
million
tonnes
QUARRY &
CONSTRUCTION
MATERIALS
766
million
tonnes
Sustainability Focus Area
FY24 highlights
Transitioning
towards Net Zero
» Comprehensive update of future climate-related scenario risk assessment using bespoke 1.5oC, 1.8oC, 2.7oC and 4+oC
scenarios created with the most recently available science.
» Completion of the Moranbah nitric acid plant Tertiary N2O Abatement Project, which will reduce IPL’s operational
GHG by ~200,000 tCO2e, or 7%, and Dyno Nobel’s operational GHG by 11% against 2020 baselines.
» Progression of the Louisiana, Missouri (LOMO) nitric acid plant Tertiary N2O Abatement Project, which will reduce
IPL’s operational GHG by ~520,000 tCO2e, or 19%, and Dyno Nobel’s operational GHG by 30% against 2020 baselines.
» Progression of the Gladstone Green Ammonia Project, which plans to produce 400,000 tonnes of green ammonia
per annum, for both domestic and overseas consumption, providing decarbonisation opportunities for our
Moranbah ammonia plant.
» Supplier scope 3 GHG Questionnaires developed and sent to major suppliers, with redesign to build in questions
for some suppliers to calculate their GHG for the first time.
Safe, inclusive, high
performance culture
» 79% of all sites recordable injury free.
» Creation of the IPL Mental Health Framework.
» 2024 Chemistry Australia Award for Workplace Health and Safety awarded to the Gibson Island ‘Finish with Pride’
program.
» Reaching 90% participation of our global workforce in the SafeTEAMs training program.
» Updating the People and Remuneration Committee’s (formerly Remuneration Committee) charter to expand
the Committee’s remit to include oversight over IPL’s culture and People Strategy.
» Reviewing our operating model to support our updated business strategy.
» Conducting a Global People Insights Survey, which included measurement of engagement, experience versus
expectations, inclusions and wellbeing, marking a milestone in our commitment to diversity, equity and inclusion.
» Release of our 2024-26 Innovate Reconciliation Action Plan focused on Australian First Nations people and communities.
» Increasing female representation among our global workforce to 19.2% from 18.6% last year.
Ensuring Ethical Conduct
and Business Practices
» Training in Competition Law, and training in Anti-bribery for applicable employees in high risk jurisdictions.
» Commencement of the review of the IPL Ethics Committee Charter.
» Completion of 8 comprehensive, ‘deep dive’ ESG supplier audits, which included modern slavery and, where necessary,
working with those suppliers to improve their due diligence processes on modern slavery for more ethical business
practices.
» Added focus by IPL’s Cyber Security and IT teams on implementing the “secure by design” principle to ensure robust
security measures are integrated from the outset.
Relationships with
Communities that Build
Trust and Resilience
» Planning during FY24 to resource a refreshed approach in FY25, to support our local site managers to implement our
Sustainable Communities Policy and Community Investment Framework at their local sites. This followed our FY23 survey
of global sites with more than 30 employees to assess the effectiveness of our Community Investment Framework.
» Raising $30,000 through our Dollar for Dollar program, including matching donations of up to $500 per employee
donation, to support several of our Indonesian colleagues, who lost everything they owned in a fire that destroyed over
100 homes in the small mining community of Binungan, Indonesia.
» Engaging with the Yulluna People, the Traditional Custodians of the lands at our Phosphate Hill site. The Yulluna
community representatives and IPL HSEC Team have conducted the largest survey year in Phosphate Hill's history,
covering 1,600 hectares over four surveys, identifying and preserving artefacts and areas with cultural significance.
Reducing our
Environmental Impact
» Achieving our Target of Zero Significant Environmental Incidents.
» Building our first Electric Mobile Processing Unit (eMPU), complete with its own solar charging station.
» Release of the initial assessment of the nature-related risks and opportunities for our IPF business, in line with the
Taskforce on Nature-related Financial Disclosures (TNFD).
» Continued testing of the use of biodiesel and renewable diesel in our explosives products, with customer trials planned
for FY25.
» Recognition of our IPF business in the Australian Financial Review ‘Sustainability Leaders 2024’ awards, in the ‘Agriculture
and Environment’ category, for our innovative development and commercialisation of Enhanced Efficiency Fertilisers
(EEFs).
» Securing fertiliser bags with 30% recycled content commencing in October 2024, and recycling 354t of IPF bags
and 364t of AN bags in FY24.
Partnering
with Customers
and Suppliers
» Increasing our spend with First Nations Suppliers by 175% against FY23 spend.
» Responding in line with contingency plans to a one month wet season related flood outage of the Phosphate Hill rail line
with product successfully switched from rail to road.
» Opening of our state-of-the-art, fully automated electronic detonator manufacturing plant at the Dyno Nobel Helidon
site in Queensland, allowing us to deliver exceptional product quality and ensure security of supply for our mining
customers.
» Partnering with a surface metal mine customer on a Drill to Mill initiative that resulted in increased safety, reduced
energy use and GHG, and a value-add to the customer of more than $58m.
» Partnering with farming customers, agronomists/resellers and Melbourne University to measure the GHG reductions
associated with our EEFs.
» Partnering with our freight suppliers in Western Australia to reduce their energy use and GHG.
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
42
Incitec Pivot Limited Annual Report 2024
43
Incitec Pivot Limited Annual Report 2024
Total direct and indirect greenhouse gas emissions
GHG intensity per tonne of ammonia produced(1)
Our use of natural resources in 2024
Energy and GHG
The manufacture of nitrogen-based products is energy intensive as
it requires natural gas as both an energy source and a raw material
for hydrogen, with carbon dioxide (CO2) being liberated during
manufacturing. For this reason, the production of these essential
agricultural and mining products is currently based on a hard-to-
abate chemical process.
During 2024, we progressed several key projects which support
our Net Zero Pathway. These are discussed in the Climate Change
section of this report.
We also made significant progress on managing our scope 3 GHG
emissions, sending out a GHG Questionnaire to major suppliers.
On receiving the results, we reviewed the questionnaire and
included questions to assist suppliers to calculate their operational
GHG for the first time where this is required. We have fully
mapped our scope 3 across our value chains and have identified
management strategies and key enablers to reduce each source.
For more detail, see our 2024 Climate Change Report.
Our 2024 global energy use has decreased by 43% since 2023.
This is mostly due to the finalisation of the sale of WALA and
this being the first year in which there was no natural gas-based
manufacturing at Gibson Island. Our scope 1 GHG emissions also
decreased, by 36%, due to this. Our purchased electricity and scope
2 GHG emissions decreased by 8% and 9% respectively. Our scope
3 value chain emissions increased by 4% to 8,460ktCO2e. This data
is shown in the graphic to the right.
Our GHG intensity per tonne of ammonia increased by 6% on last
year due to the sale of the very efficient WALA facility. Ammonia
production fell by 52% due to divestment of WALA and the GI
manufacturing closure. Our GHG data and ammonia intensities
over time are shown graphically below.
Changes in energy and GHG since 2023
Water withdrawal and discharge
Cooling water is a key necessity for nitrogen manufacturing. In
addition to IPL’s comprehensive annual risk management process
and climate scenarios, the World Resources Institute (WRI) Water
Tool is completed each year for long term projections and reviewed
by IPL’s Chief Risk Officer.
Our 2024 total global water withdrawal decreased by 1% on 2023,
to 44,061 megalitres (ML). We discharged 25,871 ML to sewers and
the environment, with 98.7% of this discharge being clean cooling
water returned under EPA licence to the US rivers from which it
was taken. This brings our net water use to 18,189 ML in 2024,
which is 4% less than our 2023 water use. For more details on our
assessment of water risks and our water management strategies,
see our 2024 Climate Change Report and 2024 Sustainability
Report, both available on IPL’s website.
Total global
energy use
34,811,846 GJ
Purchased
Electricity
1,537,385 GJ
Total Operational GHG: 2.5m tCO2e
Scope 3 GHG
8.5m tCO2e
Scope 2 GHG
0.2m tCO2e
Scope 1 GHG
2.3m tCO2e
(4.4% of total
global energy use)
Value Chain
Emissions
Ammonia
Production
against 2023
tCO2e/tAmmonia(1)
against 2015
baseline
Operational GHG Intensity & Production
-52%
-2%
-36%
-9%
4%
-43%
-8%
44,061 ML
25,871 ML
98.7% clean water
to surface waters
Water withdrawal
by source(2)
2024
2023
Surface water:
74.5%
76.0%
Ground water:
20.3%
17.4%
Municipal water:
5.0%
5.6%
Recycled water:
0%
0.8%
Storm water:
0.2%
0.2%
Water discharge
by destination
2024
2023
Surface water:
99.0%
99.0%
Ground water:
0.999%
0.999%
Sewers:
0.001%
0.001%
Benchmarking our performance
As part of our commitment to transparent reporting, IPL’s
sustainability is assessed against leading indices. This gives us
the opportunity to benchmark our performance against other
organisations in our sector, gain insight into areas for improvement,
and provides investors and other stakeholders with an objective
measure of our ESG risk management and business practices.
The S&P Global CSA (formerly the Dow Jones Sustainability Index
- DJSI) is widely recognised as the leading reference point in the
growing field of Sustainability investing due to the robustness of
its assessment process. Since 2010, IPL has been included in this
index, where our performance is benchmarked against peers in
the global Chemicals sector. The results since 2019 are represented
to the right.
In 2024, the FTSE Group confirmed that IPL has been
independently assessed according to the FTSE4Good criteria
and has satisfied the requirements to remain a constituent of
Dimension
2019
2020
2021
2022
2023
2024
Economic
72
78
81
78
71
66
Environmental
73
71
69
72
61
56
Social
60
58
65
69
64
61
Total for IPL
69
69
72
73
65
60
Chemicals sector average
47
36
30
26
23
29
the FTSE4Good Index Series for the ninth consecutive year.
Companies in the FTSE4Good Index Series have met stringent
environmental, social and governance criteria.
IPL has been a voluntary CDP (formerly Carbon Disclosure Project)
Climate Change reporter since 2009 and a voluntary CDP Water
Security reporter since its introduction in 2014. Our most recent
CDP reports can be downloaded from our website. Other indices
and memberships are shown above.
Collaborating on ESG
As part of our commitment to corporate sustainability, IPL became a participant in the United
Nations Global Compact (UNGC) in August 2022. The UNGC is the world’s largest corporate
sustainability initiative. We will be reporting annually on our progress towards implementing
the UNGC’s Ten Principles on human rights, labour, environment and anti-corruption. We are
also participating in the Global Compact Network Australia’s (UNGCNA) Modern Slavery
Community of Practice (CoP).
We are committed to The UNGC’s 10 Principles:
Principle 1
Businesses should support and respect the protection
of internationally proclaimed human rights; and
Principle 2
Make sure that they are not complicit in human rights abuses.
Principle 3
Businesses should uphold the freedom of association and
the effective recognition of the right to collective bargaining;
Principle 4
The elimination of all forms of forced and compulsory labour;
Principle 5
The effective abolition of child labour; and
Principle 6
The elimination of discrimination in respect of employment
and occupation.
Principle 7
Businesses should support a precautionary approach
to environmental challenges;
Principle 8
Undertake initiatives to promote greater environmental
responsibility; and
Principle 9
Encourage the development and diffusion of
environmentally friendly technologies.
Principle 10
Businesses should work against corruption in all its forms,
including extortion and bribery.
(1) GHG intensity per tonne of ammonia produced increased due to the divestment of the
very efficient WALA facility.
(2) There was no purchased recycled water in 2024 due to cessation of natural gas-based
manufacturing at Gibson Island in 2023.
0
1
2
3
4
5
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Million tonnes of CO2e
Scope 1 Scope 2 Total GHG emissions
1.5
2.0
2.5
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
tCO2e/tNH3
Trend
EcoVadis Member since 2015
EcoVadis is assessed biennially.
FTSE4Good
Member since 2014
Bloomberg GEI
Member since 2019
CDP Reporter
since 2009
BEING A SUSTAINABLE BUSINESS
BEING A SUSTAINABLE BUSINESS
44
Incitec Pivot Limited Annual Report 2024
45
Incitec Pivot Limited Annual Report 2024
Commitment to our Communities
We are dedicated to fostering strong, enduring connections with the communities in which
we operate.
At IPL, our commitment extends beyond business – we aim to
make a meaningful impact in the areas where we operate. By
prioritising local employment, choosing local suppliers when
possible and creating shared value, we strive to positively influence
urban, regional, mining, and agricultural communities. Our site-
based teams work closely with community members, businesses,
government bodies, charities, Indigenous suppliers and local
organisations, ensuring that decisions are made with a keen
understanding of local needs and priorities.
Our Sustainable Communities Policy guides our approach to
community engagement, social investment, and cultural heritage,
reinforcing our commitment to:
» listen to and work with the community;
» strive to be a valued corporate citizen; and
» respect our neighbours, their values and cultural heritage, and
be considerate of them in carrying out our operations.
Fostering safe communities
The safety of our people and the communities in which we
operate must always come first, which is why IPL has robust safety
measures in place to monitor, manage, and prevent any potential
risk or impact to our workforce and the local communities in which
we operate.
Due to the potentially hazardous nature of industrial and
agricultural chemicals, IPL’s on-site staff are well trained to
cooperate and engage with local community leaders and first
responders on how to keep the community safe in the unlikely
event of an incident.
In addition to our robust safety measures, many of our sites are
required by law to communicate regularly with our communities
regarding safety plans and emergency procedures. In the
Americas, 73% of our sites fall into this category. These sites
regularly engage with communities and first responders to share
community safety plans and emergency procedures in the event
of a potential incident. In the Asia Pacific region, 24% of sites also
fall into this category. Some of these sites are classified as Major
Hazard Facilities and these follow Safe Work Australia guidelines
in communicating with their communities.
Supporting our communities
IPL brings our Community Investment Framework to life through
two main Corporate Giving programs. The first, our Dollar-for-Dollar
program, matches employee donations and site-based fundraising
efforts up to $25,000 annually, provided they align with our
Principles for Giving.
The second is our Workplace Giving program, a voluntary scheme
for Australian employees allowing them to donate to one or
more of IPL’s selected not-for-profit charities. IPL matches these
donations, contributing up to $25,000 each year.
In FY24, $894,461 of community investment was made globally
through IPL’s Corporate Giving programs and various site-based
initiatives, including in-kind donations and employee volunteer
hours. All contributions adhered to our Principles for Giving,
with 12% directed towards education initiatives, 24% supporting
health and sport activities, and 64% allocated to local community
development, including emergency and disaster relief efforts.
Our principles for giving
IPF sponsors Australian Women’s National Basketball League’s
(WNBL) Townsville Fire
Since 2020, IPF has been a key sponsor of the Australian Women’s National
Basketball League’s (WNBL) Townsville Fire, and during the 2023-2024 season,
IPF extended their support to individual player Courtney Woods. Woods had
an outstanding season, earning multiple MVP awards and capping it off with
the National WNBL Community Award.
IPF contributed a total of $27,500 in sponsorship for FY24. Additionally,
IPF and Townsville Fire are working together to create and host various
community events aimed at promoting youth engagement and diversity
in their community.
Happy Feet in Kentucky
At Dyno Nobel North America’s Graham Kentucky site, a team of volunteers
known as the GRKY PEACE team has managed local community engagement
and investment on behalf of their site for many years.
In 2024, they focused on supporting children by donating US$1,000 to Happy
Feet, a non-profit providing shoes to students in need, and US$500 to a local
meal program for food-insecure school children. These efforts showcase
the team’s dedication to enhancing the lives of the community’s youngest
members through various fundraisers and initiatives, reflecting their creativity
and commitment to making a positive impact.
IPL Employees raise support fund for Indonesian colleagues
In response to a fire incident in Binungan, Indonesia, where Dyno Nobel
operates, the Company raised $30,000 through its Dollar for Dollar program
to assist the community and several employees who lost everything in the
fire. This included matching donations of up to $500 per employee. The funds
were used to aid those affected, as the fire destroyed over 100 homes in the
small mining community.
Our Dyno Nobel team in Indonesia quickly mobilised to provide essential
support, distributing food, clothing, groceries, kitchen supplies, and toiletries.
Additionally, we installed a water pump and piping system to ensure access
to water for daily needs from the nearest source.
Dyno Nobel charity golf day in support of Broken Crayons
Still Colour
On March 8, the Dyno Nobel team in Perth, Western Australia held their
Annual Charity Golf Day in support of Broken Crayons, a self-funded charity
dedicated to aiding men, women, and children escaping family and domestic
violence. Dyno Nobel donated $15,000, and thanks to the incredible support
from our sponsors and customers, the event raised a total of $63,000 for
Broken Crayons.
The donations were used to purchase a truck with a tail lift, ensuring the
team no longer struggles to lift heavy furniture when helping those in need.
This remarkable achievement was made possible by the generosity and
dedication of everyone in attendance.
Community support in action
Our areas of focus
IPL Community
Investment Framework
Our framework preferences local approaches, enabling
each IPL business and site to respond to the distinct
needs of their communities.
Education: Childhood, adult and Indigenous specific
education activities.
Health: Activities and organisations working towards
better physical and mental health.
Community Development: Enrich community life
and enhance the environmental, social and economic
sustainability of local communities.
IPL Values: Initiatives that align to our values and business
strategy and are integral to the sustainability of our
communities.
Local Initiatives: Helping local organisations develop
skills and resources to bring positive and lasting benefits
to communities.
Local Sites: Solutions to local challenges and opportunities
in the communities where our people work and live.
Health
Local
Initiatives
Education
Local Sites
Community
Development
IPL Values
GOVERNANCE
GOVERNANCE
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Incitec Pivot Limited Annual Report 2024
Governance
High standards of
corporate governance
are fundamental to
the continued growth
and success of IPL.
GOVERNANCE
GOVERNANCE
48
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49
Incitec Pivot Limited Annual Report 2024
Corporate Governance
We are committed to doing business ethically and in accordance with high standards of
corporate governance – which is fundamental to the continued growth and success of IPL,
for our shareholders and other stakeholders.
Corporate governance framework
IPL’s Board of Directors is responsible for charting the direction,
policies, strategies and financial objectives of the Company.
The Board serves the interests of IPL and its shareholders, as
well as other stakeholders such as employees, customers and
the community, in a manner designed to create and continue
to build sustainable value.
IPL’s Board operates in accordance with its charter and has reserved
certain powers for itself. The Board has established four standing
Committees to assist the Board with effectively discharging its
responsibilities:
» Audit and Risk Management Committee;
» Health, Safety, Environment and Community Committee;
» Nominations Committee; and
» People and Remuneration Committee.
The Board has delegated the day-to-day management of IPL,
and the implementation of approved business plans and corporate
strategies, to the CEO & MD, who in turn may further delegate to
senior management.
IPL’s governance framework:
» plays an integral role in helping the business deliver on
its strategy;
» provides the structure through which strategy and business
objectives are set, performance is monitored, and risks are
managed;
» provides guidance on the standards of behaviour that IPL
expects of people; and
» aligns the flow of information and accountability from our
people, through the management levels, to the Board and
ultimately our shareholders and key stakeholders.
Board composition
Under IPL’s Board Charter, the composition of the Board is
determined having regard to what is appropriate to achieve
efficient and prudent decision making. The Board is committed
to ensuring that it is comprised of individuals with an appropriate
range of skills, experience, expertise and diversity to deal
with current and emerging issues in our business. The Board
currently comprises six Non-executive Directors. Details of their
qualifications and experience is provided under the Board of
Directors section of this Annual Report.
Corporate Governance Statement
Our corporate governance framework and practices have
complied with the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations
4th Edition) (ASX Recommendations) throughout FY24.
The Board continually reviews IPL’s governance policies
and practices to ensure that they remain appropriate in
light of corporate governance developments and changes
in expectations, including as reflected in the 4th Edition of
the ASX Recommendations.
IPL’s 2024 Corporate Governance Statement, which can be
viewed at www.incitecpivot.com.au/about-us/about-incitec-
pivot-limited/corporate-governance, provides detailed
information on IPL’s corporate governance practices for
the year ended 30 September 2024.
IPL policies and practices
As part of our commitment to operating to the highest standards
of ethical behaviour, we have a range of policies and practices that
set ethical standards for directors, employees, contractors and third
parties. These policies describe core principles designed to ensure
ethical conduct is maintained in the interests of shareholders and
other stakeholders.
The IPL Code of Conduct is our global code for business conduct
– it contains principles and standards of conduct which are based
on IPL’s values and represents our commitment to uphold ethical
business practices and meet applicable legal requirements.
The Code of Conduct applies to all directors and employees of the
Company and each subsidiary, partnership, venture and business
association, including agents and other contractors that are
effectively controlled by the Company or act on its behalf.
The Code of Conduct is supported by a number of governance
policies to guide how IPL does business and outline expected
standards of behaviour, including:
» Continuous Disclosure Policy – establishes IPL’s procedure
for compliance with its continuous disclosure obligations and
provides guidance for the identification of material information
and timely disclosure of IPL’s activities to the market.
» Securities Trading Policy – prohibits IPL directors, employees
and contractors and their related parties from dealing in
IPL securities if they are in possession of price sensitive
information, provides for blackout periods during which
directors and employees must not trade in IPL securities,
and sets out the procedure for obtaining required approvals
to trade in IPL securities.
» Anti-bribery Policy – prohibits the making of unlawful
or improper payments to any individual or entity with the
intent of securing a business advantage for IPL.
» Human Rights Policy – articulates the fundamental elements
of IPL’s approach to human rights and how IPL demonstrates
its commitment to respect human rights in line with the
Universal Declaration of Human Rights and other international
frameworks.
» Modern Slavery Policy – defines the processes that identify
and address modern slavery risks in IPL’s supply chains and
within IPL’s own operations.
» Supplier Code of Conduct – illustrates the guiding principles
that IPL has adopted as part of its sourcing and procurement
processes.
» Risk Management Policy and Group Risk Management
Framework – provides guidance and direction on the
management of risk in IPL and states IPL’s commitment
to the effective management of risk.
» Whistleblower Protection Policy – encourages IPL directors,
employees and contractors to confidentially report unethical
or illegal conduct and raise concerns regarding actual or
suspected contraventions of ethical or legal standards, without
fear of victimisation, reprisal or harassment.
External Auditor
Internal Audit
Shareholders
Assurance and
oversight through
reporting
Accountability
Board Committees
Delegation of Authority
Company
Secretary
Assurance
Executive
Leadership Team
CEO & MD
Our People
Audit and Risk
Management
Nominations
People and
Remuneration
Health, Safety,
Environment and
Community
Board
GOVERNANCE
GOVERNANCE
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Incitec Pivot Limited Annual Report 2024
Board of Directors
Gregory Robinson
Bsc(Hons), MBA, MAICD
Independent Non-executive
Chair
Greg was appointed as a
Non-executive Director on
25 November 2019 and was
appointed as Chair on 11 November 2023.
Committee memberships
Chair of the Nominations Committee
Skills and experience
Greg has held various senior management and executive roles
during his executive career which spans over 35 years, including
as a Director of Merrill Lynch Investment Banking, CFO/CDO
of BHP Petroleum, CEO of Lattice Energy Limited, Finance
Director and ultimately MD & CEO of Newcrest Mining Limited.
Greg brings to the Board significant senior executive experience
in strategy, projects, operations, finance, accounting, capital
management and risk management within the mining, oil and
gas industries in Australia and internationally.
Other listed company directorships in the past three years
Rex Minerals Limited – Non-executive Director (from 2021-
2024)
Other directorships/appointments
Royal Automobile Club of Victoria (RACV) – Chairman and Non-
executive Director
Michael Carroll
BAgSc, MBA, FAICD
Independent Non-executive
Director
Michael was appointed as a Non-
executive Director on 6 March 2023.
Committee memberships
Member of the Health, Safety, Environment and Community
Committee
Member of the People and Remuneration Committee
Skills and experience
Michael has extensive non-executive experience having served
on over 20 boards including six ASX listed companies. During
his executive career, Michael had an 18-year career with the
National Australia Bank (NAB) with positions in NAB’s internal
Investments and Advisory team and as General Manager,
Agribusiness Financial Services. Prior to this Michael worked in
the animal health and crop care sectors having commenced
his career as an agronomist with Monsanto. Michael brings to
the Board his significant knowledge and expertise within the
Australian agricultural sector.
Other listed company directorships in the past three years
Rural Funds Management Limited – Non-executive Director
(from 2010)
Other directorships/appointments
Paraway Pastoral Company – Non-executive Director
Viridis Ag Pty Ltd – Chairman and Non-executive Director
Bruce Brook
BCom, BAcc, FCA, MAICD
Independent Non-executive
Director
Bruce was appointed as a
Non-executive Director on
3 December 2018.
Committee memberships
Chair of the Audit and Risk Management Committee
Member of the Nominations Committee
Member of the People and Remuneration Committee
Skills and experience
Bruce was the CFO of Western Mining Resources Limited and
Deputy CFO of the Australian & New Zealand Banking Group.
Bruce brings to the Board extensive executive experience in
Australia, the US, the UK and Africa, across a range of industries
including mining, finance, manufacturing and chemicals.
Other listed company directorships in the past three years
Newmont Corporation – Non-executive Director (from 2011)
Djerriwarrh Investments Limited – Non-executive Director
(from 2021)
CSL Limited – Non-executive Director (from 2011 - 2023)
Other directorships/appointments
Australian Institute of Company Directors, Corporate
Governance Advisory Committee – Member
Guide Dogs Victoria – Director
Fiona Hick
BEng (Materials Engineering) (Hons),
BAppSci (Energy and Carbon Studies),
GAICD
Independent Non-executive
Director
Fiona was appointed as a Non-
executive Director on 1 September 2024.
Committee memberships
Chair of the Health, Safety, Environment and Community
Committee
Member of the Audit and Risk Management Committee
Skills and experience
Fiona has extensive executive and corporate experience in the
energy and resources sectors, including as the Chief Executive
Officer of Fortescue Metals Group (FMG) in 2023. Prior to FMG,
Fiona spent more than 20 years with Woodside Energy, where
she held a range of senior positions across engineering, strategy
and governance, crisis leadership, health and safety and
environment before being appointed as Woodside’s Executive
Vice President Operations in 2019. Prior to Woodside Energy,
Fiona spent 5 years in corporate and operational roles at Rio
Tinto. Fiona bring to the Board her corporate and operational
experience in the energy and resource sectors.
Other listed company directorships in the past three years
Evolution Mining Limited – Non-executive Director (from 2024)
Other directorships/appointments
Infrastructure WA - Board member
University of Western Australia - Strategic Resources Committee
Member
John Ho
BSc(Math), BCom (First Class Honours
& University Medal)
Non–Independent
Non-executive Director
John was appointed as a Non-
executive Director on 6 March 2023.
Skills and experience
John is the Founder and Chief Industrialist Investor of Janchor
Partners, an industrialist investor based in Hong Kong, with
experience as a non-executive director and long-term investor
in Australia and across the globe. Before founding Janchor
Partners in 2009, John acquired global experience including
with the Boston Consulting Group in Australia, Citadel
Investment Group in the US and as Head of Asian Investing
at The Children’s Investment Fund (Asia). John brings to the
Board his experience in the international and Australian
investment markets.
Other listed company directorships in the past three years
Avepoint Inc – Non-executive Director (from 2021)
Other directorships/appointments
Janchor Partners Limited – Director
ROKT Pte Limited – Non-executive Director
Tonianne Dwyer
BJuris (Hons), LLB (Hons), FAICD
Independent Non-executive
Director
Tonianne was appointed as a Non-
executive Director on 20 May 2021.
Committee memberships
Chair of the People and Remuneration Committee
Member of the Audit and Risk Management Committee
Member of the Nominations Committee
Skills and experience
Tonianne has extensive executive experience in investment
banking, funds management, real estate and corporate strategy
and is an experienced non-executive director. During Tonianne's
executive career, she held senior management roles with
Hambros Bank Limited, Societe Generale and Quintain Estates
& Development plc. Tonianne is a Fellow of the Australian
Institute of Company Directors. Tonianne brings to the Board
her international executive experience and extensive non-
executive director experience in the Australian listed company
environment.
Other listed company directorships in the past three years
ALS Group Limited – Non-executive Director (from 2016)
GrowthPoint Properties Australia Limited - Non-executive
Director (from 2024)
AUB Group Limited – Non-executive Director (from 2024)
DEXUS Property Group – Non-executive Director (2011-2022)
DEXUS Wholesale Property Fund – Non-executive Director
(2011-2022)
OZ Minerals Limited – Non-executive Director (from 2017-2023)
Other directorships/appointments
The University of Queensland – Deputy Chancellor and Senate
Member
Sir John Monash Foundation – Director
Australian Institute of Company Directors, Queensland Council
– Council Member
Board of Directors
GOVERNANCE
GOVERNANCE
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Incitec Pivot Limited Annual Report 2024
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Incitec Pivot Limited Annual Report 2024
Mauro Neves
BEng, MSBA, GAICD
CEO & MD
Mauro was appointed as Chief
Executive Officer and Managing
Director on 22 January 2024.
Committee memberships
Member of the Health, Safety, Environment and Community
Committee
Skills and experience
Mauro is a global executive with 30 years’ industry experience
across the resources and logistics sectors. A mechanical
engineer with dual Brazilian Australian citizenship, Mauro has
a track record of driving operational and strategic business
performance for some of the world’s biggest mining companies.
Prior to his appointment at IPL, Mauro held a number of
executive and leadership roles including as Asset President at
BHP, Executive Vice President – Commercial and Marketing at
Aurizon Holdings Limited and Global Coal Director at Vale S.A.
Paul Victor
BCompt (Hons), CA (SA),
International Tax Law (Hons)
Chief Financial Officer
Paul commenced as Chief Financial
Officer on 1 July 2022. Paul brings
more than 30 years international
experience, including working in a multinational company.
He has a wealth of experience across regional, divisional,
enterprise and Group CFO roles, working across functions
including finance, treasury, tax, financial planning and analysis,
control, M&A, investor relations and IT functions. Prior to his
appointment as Chief Financial Officer at IPL, Paul gained
invaluable experience during his ten-year tenure at Sasol, where
he was Acting CFO, Group Financial Controller and CFO of
Sasol Synfuels, a subsidiary of Sasol Limited. Paul was also the
Financial Manager for Harmony Gold Mining for four years. Paul
is a qualified Chartered Accountant and is also recognised by
the Australian Chartered Accountant Board as a practising CA in
Australia. He completed his articles at PriceWaterhouseCoopers
in 1996.
Greg Hayne
BCom, MBA, MAICD
President, Dyno Nobel Americas
Greg was appointed President,
Dyno Nobel Americas on 1
October 2024. Greg is a senior
executive with 30 years’ experience
in international business development, strategy, finance,
people leadership and general management. Greg has held
numerous senior leadership positions within the IPL Group,
most recently as President, Dyno Nobel Asia Pacific from 2018-
2024. He has also held the roles of Senior Vice President, Retail
Sales & Operations for Dyno Nobel Americas, and Vice President,
International Operations, Vice President South East Asia, and
Vice President, Marketing for DNAP.
Scott Bowman
BCom
President, Incitec Pivot
Fertilisers
Scott was appointed President
of Incitec Pivot Fertilisers on
1 June 2024. During his 20-year
tenure at Incitec Pivot Limited, Scott has excelled in various
senior leadership positions, spanning fertiliser and chemical
manufacturing and distribution, global supply chains,
international commodity trading, strategy development and
customer engagement. His extensive international and local
experience has enabled him to successfully negotiate and
execute major, long-term commercial supply and trading
agreements. Scott is committed to fostering diverse teams,
enhancing safety, and achieving financial excellence, with
a keen focus on safety, delivering customer value and
operational efficiency.
Executive Leadership Team
Tanya Rybarczyk
BCom, CA, GAICD
President, Dyno Nobel Asia
Pacific
Tanya has been appointed
President, Dyno Nobel Asia
Pacific (DNAP) and will officially
commence in the role on 3 February 2025.
Tanya joins DNAP after a 20-year career with Wesfarmers where
she has held several senior executive roles, most recently as
General Manager, Kleenheat (2021 – 2024), and previously as
General Manager of CSBP Fertilisers (2018 – 2021) and Chief
Financial Officer of Wesfarmers Chemicals, Energy & Fertilisers
(2011 – 2018).
During her tenure at Wesfarmers, Tanya has gained experience
in strategy, finance, business development, investor relations,
people leadership, and operations across a range of relevant
industries including energy, fertilisers, chemicals, transport
and mining. Prior to Wesfarmers, Tanya worked at EY. Tanya is
a qualified Chartered Accountant, a Graduate of the Australian
Institute of Company Directors, and is also a board member of
the West Australian Ballet.
Braden Lusk
PhD, P.E.
Chief Technology &
Marketing Officer
Braden commenced as Chief
Technology & Marketing Officer
on 1 October 2024. Braden has
been with IPL’s Dyno Nobel
Americas business since 2018 and prior to being appointed
Chief Technology & Marketing Officer served as President, Dyno
Nobel Americas and Senior Vice President Corporate Accounts
and Tech Services.
Braden has more than 25 years' experience in the mining and
explosives industry and has a combination of practical on-site
skills, including working as a mine supervisor, international
consultant, and trainer, along with extensive academic
experience. Prior to joining Dyno Nobel, Braden was Chair
of Mining and Nuclear Engineering at Missouri University of
Science and Technology where he had previously earned a
PhD in mining engineering, with an emphasis in explosives
engineering. As a professor with the University of Kentucky
Department of Mining Engineering, he worked to build its
credibility as a world class institution in the field of explosives,
founding its Explosives Research Team.
Sunil Salhotra
BCom, MBA
Chief Development &
Sustainability Officer
Sunil commenced as Chief
Development & Sustainability
Officer on 1 June 2024. He has
been with IPL since 2021, previously holding the role of Chief
Strategy & Sustainability Officer. With more than 30 years
international experience, Sunil has worked across a range
of industries including energy and resources, oil and gas,
telecommunications and management consulting for leading
private and listed companies across Australia and Asia.
Prior to joining IPL, Sunil held a number of executive and
strategy leadership roles including as Chief Executive of
Pangaea Resources, Group Executive Strategy and Planning at
Santos, and Vice President, Planning & Regional Development
at Unocal South ASEAN.
Tatiana Rudometova
LLB Hons, BA (Hons)
Chief Legal & Corporate Affairs
Officer
Tatiana was appointed as Chief
Legal & Corporate Affairs Officer
at IPL on 1 June 2024. Tatiana has
over ten years of senior leadership experience at IPL, including
as Group General Counsel, Vice President Legal for IPF, Senior
Corporate Counsel and Senior Legal Counsel for DNAP, advising
the business on key projects and strategic initiatives. Tatiana
is a senior legal professional with over 15 years’ experience in
commercial law. Prior to joining IPL, Tatiana was a mergers and
acquisitions and equity capital markets lawyer at King & Wood
Mallesons.
Stephenie De Nichilo
BEng(Mech)(Hons), MBA
Chief HSE & Operations
Excellence Officer
Stephenie was appointed Chief
HSE & Operations Excellence
Officer on 13 December 2021 and
has over 25 years’ experience in manufacturing, mining and oil
and gas industries. Stephenie commenced with IPL in 2018 as
the Group’s Vice President of Corporate HSE and most recently,
was IPL’s Vice President Global Asset Management, Technology
& HSE. Before joining IPL, Stephenie spent 16 years at Santos
where she held a number of senior leadership positions which
required the development and operationalisation of strategic
business plans in the fields of Maintenance, Reliability, Asset
Management, Operations Management for Onshore and
Offshore Hazardous Facilities and Corporate Health and Safety.
Robert Rounsley
MSc (Chem), BSc (Hons) (Chem), MBA
Chief Growth Officer
Rob commenced as Chief Growth
Officer on 1 October 2024. Rob has
held a number of senior leadership
roles within IPL including Chief
Technology Officer and Senior Vice President of Technology
and Marketing. Rob has invested 25 years in R&D, product
management, marketing, and technology across IPL globally
and is an internationally recognised explosives expert,
understanding the complex challenges customers face globally.
Rob Mill
Psychologist (Psychology Board of
Australia), BSc Honours (Physiol. &
Psych.), BAppSc (Physiol. & Psych.)
Chief People Officer
Rob was appointed as Chief People
Officer on 2 December 2021. Rob
has more than 20 years of experience in senior human resources
and psychology roles including with BHP and over a decade
with Rio Tinto. He joined IPL in 2018 and prior to commencing
as IPL’s Chief People Officer, he was the Vice President of Human
Resources for DNAP, IPF, Australian Manufacturing and the
Global Technology Group. Rob is a Registered Psychologist
with the Australian Health Practitioner Regulation Agency’s
Psychology Board of Australia and has held roles within the
Organisational Psychology Unit of Queensland Rail and as a
Senior Psychologist in management consulting.
FINANCIAL AND STATUTORY REPORTS
FINANCIAL AND STATUTORY REPORTS
54
Incitec Pivot Limited Annual Report 2024
55
Incitec Pivot Limited Annual Report 2024
Our strong underlying
FY24 result reflects
material progress on
our strategic objectives.
Financial and
Statutory
Reports
DIRECTORS’ REPORT
DIRECTORS’ REPORT
56
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57
Incitec Pivot Limited Annual Report 2024
Directors’ Report
(1) Reflects the number of additional formal Board meetings attended by each director during the financial year, and includes attendance at Board Sub-Committee meetings where any two
directors are required to form a quorum.
(2) ‘Held’ indicates the number of meetings held during the period that the director was a member of the Board or Committee.
(3) ‘Attended’ indicates the number of meetings attended by a director. A director is deemed to have attended a meeting if they were present for more than half of the duration of the meeting.
(4) In addition to the Board and Committee meetings held during the year, directors attended site visits at Salt Lake City (Utah, US), Cheynne (Wyoming, US), Louisiana (Missouri, US), Soma (Türkiye),
Ankara (Türkiye) and Vonges (France).
(5) Mr Robinson commenced as Board Chair on 11 November 2023.
(6) Mr Brook was an apology for two additional meetings that were convened at short notice. Whilst Mr Brook was an apology for these meetings, he discussed and provided input to the Chair and
Management prior to these meetings.
(7) Mr Ho was an apology for a Board meeting due to a pre-existing commitment.
(8) Ms Hick commenced as a director and as a Member of the Health, Safety, Environment and Community Committee on 1 September 2024.
(9) Mr Neves commenced as CEO & Managing Director and as a member of the Health, Safety, Environment and Community Committee on 22 January 2024.
(10) Mr Biltz retired as a director on 20 December 2023.
(11) Mr Kruger ceased as Board Chair and Non-executive Director on 11 November 2023.
(12) Dr Liu resigned as a director on 31 May 2024.
The directors of Incitec Pivot Limited (the Company or IPL) present their report together with the financial report of the Company
and its controlled entities (the Group) for the year ended 30 September 2024 and the auditor’s report.
The following sections of the Annual Report form part of, and are to be read in conjunction with, this Directors’ Report:
» Board of Directors
» Operating and Financial Review (OFR)
» Remuneration Report
» Auditor’s Independence Declaration
Directors
Particulars of the qualifications, other directorships, experience and special responsibilities of each Director as at the date of this report are
set out in the Board of Directors section.
During the financial year, the following changes to the composition of the Board of Directors occurred:
» Mr B Kruger ceased as Board Chair and director on 11 November 2023
» Mr G Biltz ceased as a director on 20 December 2023
» Dr X Liu ceased as a director on 31 May 2024
» Mr M Neves commenced as CEO & Managing Director on 22 January 2024
» Ms F Hick commenced as a director on 1 September 2024.
Directors’ meetings
The number of Board and Board Committee meetings attended by each of the directors of the Company during the financial year
are listed below:
Board
Audit and Risk
Management
Committee
People and
Remuneration
Committee
Nominations
Committee
Health, Safety,
Environment and
Community
Committee
Additional
Meetings(1)
Director – Current(2)(3)(4)
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
G Robinson(5)
8
8
5
5
6
6
2
2
4
4
9
9
B Brook(6)
8
8
5
5
6
6
2
2
–
2
8
6
T Dwyer
8
8
5
5
6
6
2
2
–
4
7
7
M Carroll
8
8
–
5
–
4
–
2
4
4
6
6
J Ho(7)
8
7
–
–
–
3
–
–
–
–
6
6
F Hick(8)
1
1
–
1
–
1
–
1
–
–
–
–
M Neves(9)
6
6
–
4
–
3
–
–
3
3
6
5
Former:
G Biltz(10)
2
2
–
1
–
1
–
–
1
1
2
2
B Kruger(11)
1
1
–
1
–
1
–
–
1
0
1
1
X Liu(12)
5
5
3
3
–
3
–
1
3
3
5
5
Chair
Member
Directors’ interests in share capital
The relevant interests of each director in the share capital of
the Company as at the date of this report is disclosed in the
Remuneration Report.
Company Secretary
Ms Richa Puri was appointed to the role of Company Secretary on
8 August 2019. Ms Puri (LLB (Hons), B. Com (Accounting), FGIA,
GAICD) is a corporate lawyer and governance adviser with over
15 years relevant professional experience. She has practiced as a
lawyer for legal firms in Australia and has experience in providing
in-house legal, governance and company secretarial advice to ASX
listed companies.
Principal activities
The principal activities of the Group during the course of the
financial year were the manufacture and distribution of industrial
explosives, industrial chemicals and fertilisers, and the provision of
related services. No significant changes have occurred in the nature
of these activities during the financial year.
Dividends
Dividends since IPL’s 2023 Annual Report:
Dividend type
Dividend
per share
Total
amount
$mill
Franked
percentage
Date of
payment
Paid during the financial year
2023 final dividend
5.0 cents
97.1
100%
unfranked
19 Dec 2023
2024 special dividend
10.2 cents
197.5
100%
unfranked
8 Feb 2024
2024 interim dividend
4.3 cents
83.6
100%
unfranked
4 Jul 2024
To be paid after end of the financial year
2024 final dividend
6.3 cents 119.2m(1)
100%
unfranked
18 Dec 2024
(1) Based on number of shares on issue at 30 September 2024.
Review and results of operations
A review of the operations of the Company during the financial
year, the results of those operations and the Company’s financial
position is contained in the OFR.
Significant changes in the state
of affairs
There have been no significant changes to the Group’s state of
affairs during the financial year other than as noted in the OFR.
On 1 December 2023, IPL completed the sale of its ammonia
manufacturing facility located in Waggaman, Louisiana (WALA)
for a total value of $2.3b.
The Group also secured a 25-year ammonia supply agreement
from WALA for up to 200,000 short tonnes of ammonia per annum
at estimated producer cost to support the Dyno Nobel Americas
(DNA) explosives business.
As a result of the agreement, IPL retains access to approximately
25% of the equivalent WALA volumes and the associated financial
and strategic benefits.
The supply agreement has been assigned a value of $454m which
offset part of the proceeds, resulting in net cash proceeds of $1.8b
after transaction costs. The Group recorded a gain on sale (after
tax) of $123.8m which included a gain of $254.1m relating to the
release of the foreign currency translation reserve as required by
Australian Accounting Standards.
On 8 February 2024, the Company returned ~$500m of surplus
capital to shareholders. The cash distribution of 25.7 cents per
share was in the form of a 15.6 cents per share capital reduction,
totalling $302.4m and an unfranked special dividend of 10.2 cents
per share, totalling $197.5m.
Additionally, the Group bought back shares valued at ~$149m as
part of the planned $900m on-market share buyback program.
The Group remains committed to executing the remainder of the
program and has sufficient cash reserves and committed bank
facilities to complete the buyback.
On 10 July 2024, IPL announced that it had ceased previous
negotiations for the sale of its Fertilisers business. IPL continues
to manage the Dyno Nobel and Incitec Pivot Fertilisers separately,
whilst options are assessed for the structural separation of the two
businesses. There has been no impact on the financial statements
for financial year 2024 other than the costs incurred to date which
have been classified as an individually material item and disclosed
in the notes to the financial statements.
Events subsequent to reporting date
On 11 November 2024, IPL announced a final dividend of
6.3 cents per share unfranked, to be paid on 18 December 2024.
The record date for entitlement to this dividend is 4 December
2024. Based on the number of shares on issue at 30 September
2024, the total dividend payment will be $119.2m.
Other than the matters reported on above, the directors have not
become aware of any other significant matter or circumstance
that has arisen since the end of the financial year, that has affected
or may affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in subsequent years,
which has not been covered in this report.
Likely developments
The OFR contains information on the Company’s 2024 financial
performance and prospects for future financial years, and refers to
likely developments in the Company’s operations and the expected
results of these operations in future financial years. Information
on likely developments in the Company’s operations for future
financial years and the expected results of those operations
together with details that could give rise to material detriment
to the Company (for example, information that is commercially
sensitive, confidential or could give a third party a commercial
advantage) have not been included in this report where the
directors believe it would likely result in unreasonable prejudice
to the Company.
Environmental regulation and
performance
The operations of the Group are subject to environmental
regulation under the jurisdiction of the countries in which those
operations are conducted including Australia, US, Mexico, Chile,
Canada, Indonesia, Papua New Guinea, Turkey and France. The
Group is committed to complying with environmental legislation,
regulations, standards and licences relevant to its operations.
The environmental laws and regulations generally address certain
aspects and potential impacts of the Group’s activities in relation to,
among other things, air and noise quality, soil, water, biodiversity
and wildlife. The Group operates under a Global Health, Safety and
Environment Management System which sets out guidelines on
the Group’s approach to environmental management, including a
requirement for sites to undertake environmental risk assessments
identifying controls for our significant risks and developing and
implementing improvements plans.
DIRECTORS’ REPORT
DIRECTORS’ REPORT
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59
Incitec Pivot Limited Annual Report 2024
In certain jurisdictions, the Group holds licences for some of
its operations and activities from the relevant environmental
regulator. The Group Environmental Licence Compliance Procedure
requires sites with permits or licences to set up actions to maintain
compliance, the completion of which are tracked monthly at
Business Unit and Group levels. The Group also reports statutory
non-compliances as required.
Measurement of the Group’s environmental performance, including
determination of areas of focus and assessment of projects to be
undertaken, is based not only on the actual impact of incidents,
but also upon the potential consequence, consistent with IPL’s
risk-based focus.
During the year, the Group has continued to focus on licence
compliance and identification and mitigation of environmental
risks. Compliance and remediation works have progressed at
several sites in Australia and the US.
Good environmental performance was achieved with zero
Significant (consequence category 5+) Environmental Incidents
reported in the 2024 financial year. The continued focus on
identifying our environmental regulatory obligations and
the development of appropriate compliance activities with
regular tracking of performance of action completions have
led to this result.
This year a pilot environmental assurance program has been
carried out at six sites across the different business units as a
self-verification activity. Preliminary conclusions are that there
is good compliance with IPL’s Environmental Standard and
associated procedures.
This financial year, one penalty of US$5,000 was received for a non-
compliance at DNA’s Ormstown, Quebec facility. During a routine
internal permit review, it was discovered that the site’s open burn
permit had expired. A voluntary notification was made to Quebec
Ministry of Environment and a new application was submitted. The
Ministry issued a US$5,000 penalty. The application was submitted,
and the Ministry issued the new open burn permit.
The remaining tasks of the 2020 USEPA Consent Decree related
to Carthage and Louisiana (Missouri) have been completed.
A three-year period of compliance with existing permits and
regulations now takes effect and continues for three years before
a request for termination of the Consent Decree can be submitted.
An exceedance of a water discharge permit criteria was identified
and reported to the Missouri Department of Natural Resources
(MDNR) on 30 August 2024 who accepted the site’s response to
the investigation of the exceedance. The EPA and US Department
of Justice were also notified as per the Consent Decree.
Following a 2019 Notice of Potential Violation from the USEPA
for our Cheyenne (Wyoming) facility, agreement was reached in
FY23 on breaches of the Clean Air Act (CAA) and the Emergency
Planning and Community Right to Know Act (EPCRA). Under the
CAA a fine of US$394,906 and an Administrative Order on Consent
(AOC) was agreed for process safety and mechanical integrity
violations. The requirements of the AOC have all been completed
and the fine paid in April 2024.
At Gibson Island (Queensland), obligations and milestones
under an Environmental Protection Order (EPO) and a separate
Enforceable Undertaking (EU) (both issued in June 2023) were
met during the year with several agreed modifications and regular
engagement with the Department of Environment, Science and
Innovation (DESI). These obligations are related to committed
improvements to stormwater release quality and groundwater
contamination and extend into FY25. An amendment to the site
environmental licence set challenging stormwater discharge
criteria in March 2024, and the site has significant projects
underway to achieve compliance with these new licence
conditions. For the site to implement these projects over a
reasonable period, site management submitted a Transitional
Environmental Program (TEP) which was approved by the
regulator in September 2024. The TEP charts the site’s transition
to compliance through to May 2026.
At Geelong, North Shore (Victoria) the Environment Protection
Authority (EPA) issued three Notices in FY24 requiring the site to:
» Revise the site’s Risk Management and Monitoring Program
(RMMP). A revised RMMP was submitted and the Notice
revoked on 3 October 2024.
» Carry out an investigation on the potential risks to human
health and the environment from tracking of materials in
the vicinity of the site’s exit gates. This investigation report
has been submitted with commitments to improve dust
and tracking management.
» Provide a plan detailing how the risk of harm from dust to
nearby residents will be controlled. A plan was submitted
prior to 31 October 2024.
Indemnities and insurance
The Company’s Constitution provides that, to the extent permitted
by law, the Company must indemnify any person who is, or has
been, a director or secretary of the Company against any liability
incurred by that person including any liability incurred as an officer
of the Company or a subsidiary of the Company and legal costs
incurred by that person in defending an action.
The Constitution further provides that the Company may enter
into an agreement with any current or former director or secretary
or a person who is, or has been, an officer of the Company or a
subsidiary of the Company to indemnify the person against such
liabilities.
In accordance with the Company’s Constitution, the Company
has entered into Deeds of Access, Indemnity and Insurance with
each director of the Company and certain officer’s and members
of senior management. Pursuant to those deeds, the Company
has paid a premium in respect of a contract insuring directors and
officers of the Group against any liability for costs and expenses
incurred by them in defending civil or criminal proceedings
involving them as such officers, with some exceptions. The contract
of insurance prohibits disclosure of the nature of the liability
insured against and the amount of the premium paid.
Auditor independence and non-audit
services
Deloitte Touche Tohmatsu (Deloitte) was appointed as the
Company’s external auditor at the 2011 Annual General Meeting
and continues in office in accordance with section 327B(2) of
the Corporations Act 2001. Ms Suzana Vlahovic was appointed
as the Company’s lead audit partner commencing for the 2024
financial year.
The Group may decide to engage the auditor, Deloitte, for the
provision of non-audit services, where such services are not
in conflict with their role as auditor and their expertise and/or
detailed experience with the Company may allow cost efficiencies
for the work.
The Board has considered the position and, in accordance with
advice received by the Audit and Risk Management Committee, is
satisfied that the provision of non-audit services during the year by
Deloitte is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001 and does not
compromise the external auditor’s independence.
The Board also notes:
» the engagements for all non-audit services provided by
Deloitte were reviewed by the Chief Financial Officer, and
where relevant, approved by the Audit and Risk Management
Committee, in accordance with the Committee’s Charter and
the Company’s policy on the engagement of the external
auditor for the provision of non-audit services to ensure they
do not impact the integrity and objectivity of the auditor; and
» the non-audit services provided by Deloitte did not undermine
the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants,
as they did not involve reviewing or auditing the auditor’s own
work, acting in a management or decision making capacity
for the Group, acting as an advocate for the Group or jointly
sharing economic risks or rewards.
Deloitte provided non-audit services to the amount of $568k
during the year ended 30 September 2024 (refer to note 24
to the financial statements).
The lead auditor has provided a written declaration that no
professional engagement for the Group has been carried out
during the year that would impair Deloitte’s independence as
auditor. A copy of the auditor’s independence declaration is
set out on page 82 and forms part of this report.
Proceedings on behalf of IPL
No application has been made under section 237 of the
Corporations Act 2001 in respect of IPL, and there are no
proceedings that a person has brought or intervened in
on behalf of IPL under that section.
Rounding
As the Company is of a kind referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191,
the amounts shown in this report and in the financial statements
have been rounded off, except where otherwise stated, to the
nearest one hundred thousand dollars.
The Directors’ Report, which includes the OFR and the
Remuneration Report, is signed in accordance with a resolution
of the directors of IPL.
Greg Robinson
Board Chair
Mauro Neves
CEO & Managing Director
11 November 2024
REMUNERATION REPORT
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Introduction from the Chair of the People and Remuneration Committee
(1) Profit attributable to IPL members, including individual material items (-$310.9m).
(2) Total Recordable Injury Frequency Rate.
Dear Shareholders,
On behalf of the Board, I am pleased to present the Remuneration
Report for FY24 which sets out the remuneration arrangements
for the Executive Key Management Personnel (KMP) and the Non-
executive Directors.
Our approach
The Board’s objective is to ensure our remuneration framework
provides a bridge between Group and individual performance and
the creation of shareholder value, whilst supporting alignment
with our other key stakeholders.
We measure performance using targets that align to IPL’s values,
long-term strategy and metrics, shorter term financial targets and
relevant individual goals.
Financial Year 2024 in review
FY24 saw the continuation of our multiyear strategic repositioning
of the Group to focus on our world leading global explosives
business – Dyno Nobel. Following the closure of the Gibson Island
ammonia manufacturing facility in January 2023 and the sale of
our Waggaman, Louisiana (WALA) facility in December 2023, efforts
were focused on continuing the process of structural separation
of the Australian Fertilisers business, and improving commercial
outcomes in our explosives business.
In January we welcomed our new CEO & Managing Director
(CEO & MD), Mr Mauro Neves, and under his leadership, the
Executive Leadership Team commenced work in earnest on a
business transformation program to drive operational efficiency
and profitability in the Group. We launched a refreshed strategy in
September focused on delivering long-term value creation and
our plan to become the leading global explosives business.
Whilst FY24 statutory financial results reflected the impact of the
significant restructuring of our business portfolio(1), underlying
earnings performance was strong across the Group led by the Dyno
Nobel business with Dyno Nobel Asia Pacific (DNAP) achieving
record EBIT, up 36% on the previous year and Dyno Nobel Americas
(DNA) up 6% on last year. The earnings contribution from the
Australian Fertilisers business, EBIT down 10%, was impacted by
unplanned plant outages at Phosphate Hill in the first half but the
distribution business delivered a record year. Pleasingly, the second
half was stronger than the first reflecting both market conditions,
but also the early impacts of our business transformation program.
Climate change initiatives delivered strong results with the tertiary
nitrous oxide (N2O) abatement at the nitric acid plant at Moranbah
now operational (7% reduction) and the abatement at Louisiana,
Missouri (LOMO) (19% reduction) on track for installation in 2025.
In February, we tragically lost an IPL employee in a car accident
on a public road in Australia. Her death has reinforced our focus
on risk management across all our sites globally. In other respects,
Health, Safety & Environment (HSE) outcomes for the year were
mixed. TRIFR(2) increased this year with a Group TRIFR of 1.08 in
FY24 above the target of 0.80 and there was an increase in Tier
1 and Tier 2 incidents compared to FY23. This was balanced by
being able to sustain our excellent environmental performance
across the company, with Zero Significant Environmental Incidents.
Nevertheless, in recognition of the loss of our colleague, the Board
and management agreed that Executive KMP would forfeit the
safety component of their Short Term Incentive (STI) for FY24.
The termination of the Australian Fertilisers sale process in July
triggered a review of the carrying value of the Australian Fertilisers
business in the Group Balance sheet at the half year resulting in a
non-cash impairment of $498m. A further write down of $393m
has been recognised in the full year accounts. These write downs
largely reflect the impact of the challenges in the Australian east
coast gas market in relation to both price and certainty of supply.
In view of the failure to complete this important strategic
transaction, the Board and management team agreed to a
moderation of Strategic Objective outcomes in the FY24 STI for all
Executives, regardless of their involvement with the transaction
(see below and section 2.3). The management team is now
progressing the sale of the assets and operations individually with
a view to maximising value.
In the US, a sales process is underway in relation to our
manufacturing facility at St Helens. The process triggered a review
of the carrying value of that asset resulting in a $100m impairment.
The termination of the Australian Fertilisers sale process enabled
the Group to commence the return of capital to shareholders.
Of the $1.4bn commitment, we have returned $649m as at 30
September by way of capital return, special dividend and share
buyback.
The Board has declared a final dividend of 6.3c per share bringing
the total ordinary dividends per share to 10.6c per share for the
year in addition to the capital return.
Key Management Personnel changes in FY24
As mentioned above, in January 2024 Mr Neves commenced as
CEO & MD.
Mr Paul Victor served as Interim CEO until the appointment of
Mr Neves before returning to his substantive position as Chief
Financial Officer (CFO). In October, we announced that Mr Victor
will leave the Company in February 2025. The Board wishes to
thank Mr Victor for his strong contribution to IPL both as CFO
and as Interim CEO. Mr Scott Bowman was appointed President,
IPF with effect from 1 June 2024. Prior to this time Mr Bowman had
served as Interim President, IPF.
Mr Brian Kruger, Mr George Biltz and Dr Xiaoling Liu ceased as
Non-executive Directors during the year. Ms Fiona Hick was
appointed as an Independent Non-executive Director with effect
from 1 September 2024.
Remuneration Framework changes in FY24
On the appointment of Mr Neves as CEO & MD, the Board took the
opportunity to review the Executive Remuneration Framework for
the Group to more strongly align remuneration arrangements with
the creation of long-term shareholder value, and, in particular, align
with the achievement of stretch outcomes over the coming three
year period through the business transformation program.
The CEO & MD’s remuneration package was restructured. Fixed
annual remuneration (FAR) and STI opportunity were decreased
compared to the previous incumbent and the CEO’s long-term
incentive (LTI) grant opportunity was increased to 200% to further
align to longer-term shareholder returns.
Following extensive consultation with shareholders and proxy
advisers in October/November 2023 and as discussed at our
Annual General Meeting in December 2023, the LTI program for
the 2023/26 grant consists of both a grant of Performance (Rights)
and a one-off grant of Share Options (Options) aligned to the
achievement of stretching, shareholder value aligned Absolute
Total Shareholder Return (Absolute TSR) targets (see section 4).
The grant under the LTI 2023/26 will be made to the CEO & MD
following approval by shareholders at the upcoming 2024 Annual
General Meeting.
The measures for the Rights have also been simplified from
previous years and will vest depending upon the achievement
of Relative Total Shareholder Return (Relative TSR) and Return on
Invested Capital (ROIC) performance measures.
To align with the restructuring of the CEO’s remuneration package,
the LTI opportunity for Executives was increased from 80% to 120%
FAR in the LTI 2023/26 plan and their STI opportunity at target will
be decreased from 60% to 50% FAR with effect from FY25.
Finally, KMPs other than the CEO & MD received a FAR increase
of 3.2% as of 1 January 2024.
Board fees did not change in FY24.
FY24 outcomes under IPL’s Incentive Plans
Short-term incentive
The CEO & MD achieved an STI outcome of 72% of his maximum
opportunity and the average Executive KMP STI outcome was 63%
of maximum.
At Group level, Headline NPAT (excluding IMIs) was achieved at
stretch levels and Adjusted NPAT (excluding IMIs and adjusted for
currency and commodity prices) was achieved at between target
and stretch.
Strong financial performance in the DNAP business resulted in an
Adjusted underlying EBIT outcome of stretch being achieved for
the President DNAP. Adjusted EBIT was slightly above target for
DNA and did not reach threshold levels for IPF.
Continuing progress on Climate Change measures and positive
performance against strategic initiatives including measures linked
to our business transformation program, resulted in outcomes
ranging from below target to between target and stretch for these
measures. As mentioned above, overall STI outcomes for KMP
reflect a zero outcome for HSE performance and a moderation of
10 basis points against Strategic Objective outcomes to reflect the
termination of the Australian Fertilisers sales process.
Section 2.1 outlines additional information on the Company’s FY24
performance and resulting outcomes are provided in section 2.3 of
this report.
Long-term incentive
The four metrics for the LTI 2021/24 plan were Relative TSR, ROIC,
Long-Term Value Metrics (LTVM) and Sustainability. Of the 60% of
Rights linked to non-TSR performance conditions, 20% will vest (see
section 2.5). The Relative TSR condition will be tested following IPL’s
full year results in November 2024 and the final vesting outcome
will be reported at the AGM and in the 2025 Remuneration Report.
We anticipate an overall level of vesting between 20% and 50%.
For the LTI 2020/23 plan the testing of performance period for
the Relative TSR condition occurred in November 2023, 88.5%
of performance rights vested (see section 2.4).
FY25 remuneration framework and KMP changes
The CEO & MD will receive a FAR increase of 8%, resulting in a new
FAR of $1.35m, effective January 2025. The FAR increase reflects his
strong performance in the role since commencement. Mr Hayne
also received a FAR increase to reflect his new role as President,
DNA (see section 5 for further details). No other Executive KMP
received a FAR increase.
As mentioned above, in FY25 the target and maximum STI
opportunity for KMP, other than the CEO & MD, will be reduced
from 60% FAR (at target) and 120% FAR (at maximum) to 50% FAR
(at target) and 100% FAR (at maximum). This change reflects the
increased weighting towards the LTI for Executive KMP (120% FAR).
The FY25 STI target and maximum opportunity for the CEO & MD
will remain at the same level.
The Board has also reviewed the arrangements for STI deferral.
With effect from FY25, 50% of STI awards for the CEO & MD and
25% for other Executives will be deferred for a minimum period
of 12 months, amending the previous practice where STI was
paid entirely in cash once an executive met their Minimum
Shareholding Requirement (MSR). In addition, the MSR has been
increased to 100% of FAR for Executives other than the CEO & MD,
whose MSR is set at 200% FAR. For further information on the FY25
remuneration framework (see section 5).
Following the one-off grant of Options in the LTI 2023/26, the LTI
2024/27 scheme will revert to a grant of Rights only. The Board
reviewed the performance measures for the LTI 2024/27 and
resolved to amend the measures to reflect equal weightings
to Relative TSR and Absolute TSR, rewarding participants for
delivering improved performance relative to ASX100 peers as
well as in absolute shareholder return terms. Whilst improving
ROIC will remain an important target for the Group, the Board
felt that the extent of adjustments necessary to this measure as a
consequence of the material movements in the Group’s assets over
the coming period, would require considerable judgement, making
this measure less transparent than Relative TSR and Absolute TSR
in the short term. Further, the Board believes that improved ROIC
will be needed to achieve the Absolute TSR targets. The Board
will consider the reintroduction of a ROIC component to the LTI
program following the completion of the disposal of the business
and assets of the Australian Fertilisers business (see section 5).
Following an internal reorganisation of the Executive Leadership
Team, with effect from 1 October 2024, Mr Greg Hayne has
assumed the role of President – Dyno Nobel Americas and
Dr Braden Lusk has assumed the role of Chief Technology and
Marketing Officer and will no longer be a KMP. In October, we
announced that Ms Tanya Rybarczyk will join the Company in
early 2025 as President, DNAP.
As mentioned above, Mr Victor will leave IPL on 15 February 2025.
Mr Victor will receive his contractual entitlements up to that date
including a payment equivalent to 6 months FAR on cessation of
employment. His outstanding LTI awards will be prorated to 15
February 2025 and will remain on foot to be tested in the ordinary
course. He will not participate in FY25 STI or LTI 2024/27 plans.
We anticipate announcing Mr Victor’s replacement in early 2025.
In FY25, the Chair has agreed to reduce his fee by 6% and
fees for Non-executive Directors will move to a composite fee
reflecting the practice of most directors to attend all Committee
meetings. The change to these arrangements will result in the
total fees paid to directors being broadly equivalent on an
annualised basis.
Thank you for your ongoing support of IPL and of our remuneration
practices.
Tonianne Dwyer
Chair, People and Remuneration Committee
REMUNERATION REPORT
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Incitec Pivot Limited Annual Report 2024
1. Introduction and Remuneration
Report Summary
The Directors of IPL present the Remuneration Report prepared in
accordance with the Corporations Act 2001 (Cth) for the Company
for the year ended 30 September 2024. This Remuneration Report
is audited.
This Remuneration Report sets out remuneration information for
KMP who had authority and responsibility for planning, directing
and controlling the activities of the Company during the 2024
financial year, being each of the Non-executive Directors and
designated Executives. The use of the term “Executives” in this
report is a reference to the CEO & MD and certain direct reports
during the 2024 financial year. Refer to Table 1 below for all
individuals comprising IPL’s KMP for the 2024 financial year.
All KMP held their positions for the entirety of the 2024 financial
year, unless noted otherwise.
Table 1 – Individuals forming IPL’s KMP for the 2024 reporting
period
Non-executive Directors
Current
Mr Gregory Robinson(1)
Chair and Independent Non-executive Director
Mr Bruce Brook
Independent, Non-executive Director
Mr Michael Carroll
Independent, Non-executive Director
Ms Tonianne Dwyer
Independent, Non-executive Director
Ms Fiona Hick(2)
Independent, Non-executive Director
Mr John Ho
Non-Independent, Non-executive Director
Former
Mr Brian Kruger(3)
Chair and Independent, Non-executive Director
Mr George Biltz(4)
Independent, Non-executive Director
Dr Xiaoling Liu(5)
Independent, Non-executive Director
Executives
Current
Mr Mauro Neves(6)
CEO and Managing Director
Mr Paul Victor(7)
Chief Financial Officer
Mr Greg Hayne(8)
President, Dyno Nobel Asia Pacific
Dr Braden Lusk(9)
President, Dyno Nobel Americas
Mr Scott Bowman(10)
President, IPF
(1) Mr Robinson was appointed as Chair of the Board with effect from 11 November 2023.
(2) Ms Hick was appointed as an Independent Non-executive Director with effect from 1
September 2024.
(3) Mr Kruger ceased as Chair and Non-executive Director on 11 November 2023.
(4) Mr Biltz ceased as a Non-executive Director on 19 December 2023.
(5) Dr Liu ceased as a Non-executive Director on 31 May 2024.
(6) Mr Neves was appointed as CEO & MD with effect from 22 January 2024.
(7) Mr Victor ceased as Interim CEO with effect from 22 January 2024 and returned to his
substantive role as CFO with effect from this date.
(8) Effective 1 October 2024, Mr Hayne will assume the role of President, Dyno Nobel
Americas.
(9) Effective 1 October 2024, Dr Lusk will assume the role of Chief Technology and Marketing
Officer and will cease to be KMP from this date.
(10) Mr Scott Bowman was appointed as President, IPF with effect from 1 June 2024.
A summary of the Company’s approach to Executive remuneration for the 2024 financial year, including performance conditions and their
link to the overall remuneration strategy is set out below:
Our key remuneration principles
IPL’s remuneration strategy is designed to support the objectives of the business and to enable the Company to attract, retain and reward
Executives of the requisite skill and calibre. The key principles of the Company’s remuneration strategy are to:
» reward Executives for outcomes at both the Group and business unit level that create sustained value for shareholders;
» require behaviours aligned to Company values, culture and code of conduct;
» drive strong alignment with shareholder interests;
» ensure the majority of Executive remuneration is ‘at risk’ and subject to demanding financial and non-financial performance objectives;
» be globally competitive to attract and retain talent;
» reward individual high performance and encourage a one team culture; and
» ensure the remuneration framework is equitable, transparent, simple to understand, communicate and implement.
Component
Purpose
Link to strategy and performance
Fixed Annual
Remuneration
Salary and other
benefits
Refer section 4.2
for further details
Reflects the accountabilities and expectations of the role
Attract, retain and motivate the right talent to deliver on
IPL’s strategy.
Benchmarked against relevant Australian and international
peer companies of similar size and complexity. Future
increases linked to individual performance and effectiveness
whilst continuing to have regard to market relevance.
Short Term Incentive
Annual incentive
opportunity delivered
in cash/restricted
shares
Refer section 4.3
for further details
Motivate and reward performance aligned to near term
strategy and supports longer-term value creation
Is subject to achieving safety, financial, climate change and
individual strategic objectives.
Safety performance recognizes our commitment to ‘Zero
Harm for Everyone, Everywhere’.
The financial performance conditions are designed to
support the financial direction of the Company (the
achievement of which is intended to translate through to
shareholder return) and are clearly defined and measurable.
Climate Change performance conditions are designed to
align with the overall climate change strategy of the business.
Key strategic and growth objectives targeted at delivering
ongoing benefit to the Company.
Long Term Incentive
Delivered through
performance rights
and a one-off grant
of share options.
Refer section 4.4
for more details
Support the delivery of outstanding long-term returns
to shareholders and align Executive and stakeholder
interests through share ownership
Performance conditions designed to encourage Executives
to focus on the key performance drivers which underpin
sustainable growth in shareholder value.
Subject to three performance hurdles, measured over 3 years:
» Performance Rights: Subject to Relative TSR (50%) and
ROIC (50%)
» Share Options: Subject to Absolute TSR (100%)
A one-off grant of share options to create strong shareholder
alignment and reward performance over FY24 to FY26
aligned to our transformaiton strategy.
Remuneration outcomes summary
FY24 STI
LTI (2020/23)
Payout
Results
CEO & MD:
109.2% of target
72.8% of maximum
Other KMP* (average):
121.3% of target
60.7% of maximum
Full details in section 2.3
RTSR: 100% vesting (40%)
ROIC: 100% vesting (40%)
LTVM: 42.5% vesting (8.5%)
88.5% of total LTI vested
Announced at 2023 AGM. Full details
in section 2.4
LTI (2021/24)
Forecast payout
RTSR: Forecast 0% – 30%
ROIC: 0% vesting (0%)
LTVM: 66.6% vesting (10%)
Sustainability: 100% vesting (10%)
20% – 50% of total LTI
*Includes Paul Victor’s STI outcome as CFO only
1. Introduction and Remuneration Report Summary. . . . . . . . . 62
2. Remuneration Outcomes in 2024 Financial Year
relative to the 2024 Financial Year Performance. . . . . . . . . . . . . 64
2.1 Analysis of relationship between the Company’s
performance, shareholder wealth and remuneration. . . . 64
2.2 2024 Fixed annual remuneration changes. . . . . . . . . . . . . . . . . . . . . 64
2.3 2024 STI outcomes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
2.4 LTI 2020/23 outcomes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.5 LTI 2021/24 outcomes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.6 Remuneration arrangement for new CEO & MD
and President, IPF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
2.7 Impact of capital return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3. Executive Remuneration and Governance. . . . . . . . . . . . . . . . . . . . . . . 69
3.1 Executive remuneration strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.2 Executive remuneration governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4. 2024 Executive Remuneration Framework . . . . . . . . . . . . . . . . . . . . . . 70
4.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.2 Fixed annual remuneration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.3 Short-term incentive – key terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
4.4 Long-term incentive – key terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.5 Executive service agreement terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.6 Performance related remuneration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.7 Further details of Executive remuneration. . . . . . . . . . . . . . . . . . . . . 77
5. Overview of Remuneration
Changes for the 2025 Financial Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
6. Non-executive Director Remuneration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
7. Shareholdings in IPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
8. Other KMP Disclosures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Remuneration
Report
Contents
2. Remuneration Outcomes in 2024 Financial Year relative to the 2024
Financial Year Performance
2.1 Analysis of relationship between the Company’s performance, shareholder wealth and remuneration
The table below summarises key financial indicators of the performance of the Company and relevant shareholder returns over the current
financial year and the preceding four financial years.
Table 2 – Indices relevant to the Board’s assessment of the Company’s performance and the benefit to shareholders
2020
2021
2022
2023
2024
NPAT before IMIs and excluding non-controlling interests ($m)
188.2
358.6
1,027.1
582.1
400.8
EPS before IMIs (cents)
10.9
18.5
52.9
30.0
20.7
Share price ($) (Financial Year End)(1)
2.03
2.94
3.51
3.14
3.11
TSR (%) over 3 years(2)
(37)
(25)
24
61
–
ROIC (including goodwill) (%)(3)
4.3
7.7
12.4
6.1
6.3
Dividends per share (DPS) paid in the financial year (cents)
3.4
1.0
18.3
27.0
19.5
DPS declared in respect of the financial year (cents)
–
9.3
27.0
15.0
10.6
On-market share buyback ($m)
–
–
–
–
149.0
Capital return to shareholders of Incitec Pivot Limited ($m)(4)
–
–
–
–
500.0
Equity Raising (net of cost) ($m)
645.5
–
–
–
–
(1) Share Price as at the end of the 2019 financial year was $3.3406.
(2) TSR is calculated in accordance with the rules of the LTI 2020/23, LTI 2021/24 and LTI 2022/25 as been applicable over the three-year performance period, having regard to the volume weighted
average price (VWAP) of the shares over the 5 business days immediately following the day that IPL’s annual results are released in November. The TSR for LTI 2021/24 was not known at the
time of printing and will be disclosed in next year’s report.
(3) Current year ROIC % excludes WALA. ROIC for the previous 4 financial years has also been restated to exclude WALA.
(4) Following the sale of WALA, IPL returned approximately $500m to shareholders via a pro-rata capital return including a share capital reduction of $302m and an unfranked special dividend
of $198m.
0
2
4
6
8
10
2024
2023*
2022*
2021*
2020*
Total STI awarded
NPAT before IMIs and excluding non-controlling interests
$mill
$mill
Total STI awarded
NPAT before IMIs and excluding
non-controlling interests
0
200
400
600
800
1000
1200
0
20
40
60
80
100
2024
2023
2022
2021
2020
%
IPL Percentile Ranking in ASX 100
LTI Vesting
Estimated vesting range
LTI Vesting %, ASX 100 Percentile Ranking
Group performance and STI outcomes
Relationship between the Company’s performance and
Executive KMP STI outcomes
The below graph shows the relationship between the Company’s
performance and STI awards for Executive KMP in respect of
the year. For the 2024 financial year, Group NPAT (before IMIs
and excluding non-controlling interests) decreased by 31.1%
to $400.8m. The financial gate for the STI opened as outlined
in section 4.3 of this report, resulting in Executives earning on
average, 63.2% of Maximum 2024 STI awards.
Relationship between the Company’s performance and
Executive KMP LTI outcomes
The below graph shows the relationship between IPL’s TSR percentile
ranking relative to its S&P/ASX 100 peer group over the three years
that each plan operated, and the overall LTI vesting percentage
that occurred for each plan. The LTI 2020/23 that vested in the 2024
financial year delivered 88.5% of total opportunity available for that
plan. The LTI 2021/24 outcomes will be outlined in next year’s report
(refer to footnote (2) under Table 2 above).
2.2 2024 Fixed annual remuneration changes
The following changes were made to fixed annual remuneration arrangements for KMP during 2023/2024:
Mr Mauro Neves, CEO & MD, commenced on 22nd January 2024 with a FAR of $1.25m, 36% lower compared to the former MD & CEO.
Mr Scott Bowman, received a FAR of $655,000 with effect from his appointment as President IPF on 1 June 2024.
Other KMPs received a FAR increase of 3.2% as of 1 January 2024.
2.3 2024 STI outcomes
The following table outlines detailed STI outcomes for the CEO & MD. The measures outlined in the table reflect the objectives set for Mr Neves in
his role as CEO & MD following his appointment. On appointment as CEO & MD on 22 January 2024, Mr Neves’s target STI opportunity was 80%
of his FAR with a maximum STI opportunity of 120% of his FAR reflecting a reduced weighting to STI and an increased weighting to LTI compared
to the former MD & CEO. The overall STI outcome for Mr Neves reflects his STI opportunities as CEO & MD calculated on a pro-rated basis.
In recognition of the tragic car accident fatality which occurred this year, the Board and Management agreed that notwithstanding Health,
Safety and Environment (HSE) assessed outcomes there would be no payment for the HSE component of the STI. The Board and Management
also agreed that assessed outcomes for Strategic Objectives for all Executives would be reduced by 10 basis points to reflect the failure to
complete the divestment of the Australian Fertilisers business during the financial year. Adjusted outcomes for the Strategic Objectives are
shown in brackets below the originally assessed outcome. The total target and maximum opportunity awarded reflect the adjusted outcomes.
The statutory results reflect individually material items of $711.7m (net of tax) in aggregate, resulting in a statutory loss of $310.9m. The Board
considered these items in determining Executive STI outcomes and whether it was appropriate for any further adjustments to be made. The
Board determined that these items were predominantly as a result of structural challenges in the Australian gas market and were not matters
within management control. It concluded that no further adjustment should be made to the overall STI outcomes.
Outcomes have been determined on the basis that the STI Financial Gate of $123.6m NPAT was met. Refer to section 4.3 for detail on the
STI Financial Gate.
Measure
Weighting
(at Target)
Objective
(at Target)
Performance Outcome
Performance
against
Objective
Weighted
Outcome
Commentary
Threshold
Target
Stretch
Health, Safety & Environment
Balanced
Scorecard
10%
Lag Indicators: Personal
Safety; Process Safety;
Environmental Incidents.
Leading Indicators:
Significant Event Management;
Zero Harm Plan.
Scorecard
achieved a
threshold
result
0%
Group HSE performance was assessed at threshold
prior to consideration of the fatality. TRIFR performance
and Process Safety (Tier 1 and 2) did not achieve target
performance from an overall IPL Group perspective.
All other HSE scorecard measures achieved at or above
target levels. There was also Zero Signifcant Environmental
Incidents, resulting in an overall threshold outcome.
Headline Financial
Group
Headline
NPAT (1)
40%
$222m
(excluding individually
significant items)
$399.9m
60%
An outcome above Stretch was achieved reflecting the
strong overall financial performance for the year.
Adjusted Financial
Group
Adjusted
NPAT (2)
20%
$222m
$277.2m
28.2%
An outcome between target and stretch was achieved.
Climate Change
Delivery
of various
Climate
change
related
projects
10%
Moranbah tertiary abatement,
Loop Purge and Waste Mine
Gas readiness assessment
Louisiana, Missouri (LOMO)
Abatement Project and DNA
Sustainability Plan
Projects
achieved
at target
10%
Moranbah tertiary abatement project was achieved at
stretch level performance, mitigated by partial deferral
of Loop Purge Gas project into FY26.
LOMO project is progressing on time and on budget.
Individual Objectives
Strategic
objectives
20%
Initiatives aligned to IPL’s
business transformation
program, including financial
performance, cultural
transformation, strategy and
Australian Fertilisers divestment
Projects
achieved
between
target and
stretch
21%
(11%*)
Individual strategic objectives aligned to IPL’s business
transformation program were achieved between target
and stretch reflecting strong delivery on the business
transformation program and development of the
Dyno Nobel brand.
Overall STI Outcome
% of Target Opportunity Awarded
% of Maximum Opportunity Awarded
109.2%
72.8%
(1) In the 2023 Remuneration Report it was reported that the weighting to Group Headline NPAT for the Interim CEO would be 20% and a 40% weighting Group Adjusted NPAT in FY24.
For both Mr Neves as CEO & MD and Mr Victor in his role as Interim CEO, the correct weighting for FY24 is 40% weighting to Group Headline NPAT and 20% Group Adjusted NPAT.
(2) Adjusted means that results have been normalised to remove the impact of foreign exchange and commodity price movements.
The measures in the table below reflect the objectives set for Mr Victor in his roles as Interim CEO and CFO. Outcomes for Mr Victor were
assessed against scorecards as Interim CEO for the period between 1 October 2023 to 21 January 2024 and as CFO from 22 January 2024
to 30 September 2024. As Interim CEO, Mr Victor’s target STI opportunity was 100% of his FAR (including the higher duties allowance) with
a maximum STI opportunity of 150% of his FAR (including the higher duties allowance). As CFO, Mr Victor’s target STI opportunity is 60%
of his FAR with a maximum STI opportunity of 120% of his FAR. The overall STI outcome for Mr Victor reflects his STI opportunities as both
Interim CEO and CFO, calculated on a pro-rated basis.
Interim CEO
Measure
Weighting
(at Target)
Performance Outcome
Weighted
Outcome
Result
% Target /
% Max
Commentary
Threshold
Target
Stretch
Health, Safety & Environment (HSE)
10%
0%
Group HSE performance was assessed at threshold prior
to consideration of the fatality. Headline NPAT was above
stretch and Adjusted NPAT was between target and stretch,
reflecting the strong overall financial performance for the
year. Climate Change metrics linked to the progress of
abatement projects at Moranbah and LOMO were assessed
at target. Individual Strategic Objectives aligned to the
period Mr Victor was Interim CEO including Waggaman
handover, and capital measures were assessed at above
target. Metrics relating to culture improvement were
assessed at target. Measures relating to the structural
separation of the Australian Fertlisers business were
assessed below Threshold, resulting in an overall Target
outcome for this measure.
Group Headline NPAT
40%
60%
Group Adjusted NPAT
20%
28.2%
108.2%
Climate Change
10%
10%
(Target)
Individual Strategic Objectives
20%
20%
(10%*)
72.1%
(Max)
*Overall Individual Strategic Objective outcomes were reduced by 10 basis points reflecting the failure to complete the divestment of the Australian Fertilisers business.
Stretch
Between Target & Stretch
Target
Threshold
Below Threshold
Between Threshold & Target
* Includes profit contribution from WALA and Gibson Island.
REMUNERATION REPORT
REMUNERATION REPORT
64
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65
Incitec Pivot Limited Annual Report 2024
CFO
Measure
Weighting
(at Target)
Performance Outcome
Weighted
Outcome
Result
% Target /
% Max
Commentary
Threshold
Target
Stretch
Health, Safety & Environment (HSE)
10%
0%
141.7%
Group HSE performance was assessed at threshold prior
to consideration of the fatality. Headline NPAT was above
stretch and adjusted NPAT was between target and stretch,
reflecting the strong overall financial performance for
the year. Climate Change metrics aligned to projects
being achieved within budget and Internal Rate of
Return performance was between target and stretch,
Individual Strategic Objectives aligned to IPL’s business
transformation program were achieved between target
and stretch.
Group Headline NPAT
20%
40%
(Target)
Group Adjusted NPAT
40%
72.7%
70.9%
Climate change
6%
9%
(Max)
Individual Strategic Objectives
24%
30%
(20%*)
Individual STI outcomes for other Executive KMP are summarised below.
Executive
KMP
Objectives
Weighting
(at Target)
Performance Outcome
Weighted
Outcome
Result
% Target
/ % Max
Commentary
Threshold
Target
Stretch
G Hayne
Health, Safety & Environment (HSE)
10%
0%
155%
DNAP HSE performance was assessed at below
threshold prior to consideration of the fatality.
Headline NPAT and Adjusted EBIT ($256.7m)
was above stretch ($210m) reflecting the strong
earnings performance of the Dyno Nobel Asia
Pacific business. Strong progress was made
on climate change objectives aligned to the
Moranbah tertiary abatement project. Individual
strategic objectives were delivered between
target and stretch.
Headline NPAT
20%
40%
(Target)
Adjusted EBIT
40%
80%
77.5%
Climate Change
10%
15%
(Max)
Individual Strategic Objectives
20%
30%
(20%*)
B Lusk
Health, Safety & Environment (HSE)
10%
0%
106.3%
DNA HSE performance was assessed at
target prior to consideration of the fatality.
Headline NPAT was at Stretch and Adjusted
EBIT (US$128.9) was just above target. Dr Lusk
delivered outstanding outcomes against his
individual Climate Change measures aligned to
LOMO Abatement Project and DNA Sustainability
Plan, resulting in a stretch outcome. Individual
Strategic Objectives were delivered between
threshold and target, reflecting partial
achievement of these objectives.
Headline NPAT
20%
40%
(Target)
Adjusted EBIT
40%
20%
53.2%
Climate Change
10%
20%
(Max)
Individual Strategic Objectives
20%
16%
(6%*)
S Bowman
Health, Safety & Environment (HSE)
10%
0%
82%
IPF HSE performance was assessed at below
threshold prior to consideration of the fatality.
Headline NPAT was above stretch and Adjusted
EBIT was below threshold. Stretch performance
was achieved on Climate Change measures
aligned to Energy Efficient Fertilisers and Easy
Liquids business performance. Individual
Strategic Objectives were also achieved between
Target and Stretch reflecting outcomes aligned
to the on-going strategic review of the Australian
Fertilisers business.
Headline NPAT
20%
40%
(Target)
Adjusted EBIT
40%
0%
41%
Climate Change
10%
20%
(Max)
Individual Strategic Objectives
20%
32%
(22%*)
*Overall Individual Strategic Objectives were reduced by 10 basis points reflecting the failure to complete the divestment of the Australian Fertilisers business.
Table 3 – Short-term incentives awarded for the year ended 30 September 2024
Details of the vesting profile of the STI payments awarded for the year ended 30 September 2024 as remuneration to each Executive are set
out below:
Short-term incentive for the year ended 30 September 2024
Cash STI
$000
Minimum share
holding allocation(A)
$000
Included in
remuneration
$000
% earned
of maximum
opportunity
% forfeited
of maximum
opportunity
Executives – Current
M Neves(1)
378
377
755
73
27
P Victor(2)
969
–
969
71
29
G Hayne
739
–
739
78
22
B Lusk
609
–
609
53
47
S Bowman(3)
135
27
162
41
59
(A) Under the terms of the 2024 STI, to the extent that Executives have not achieved their MSR the following applies: 50% of the CEO & MD’s award is delivered in cash and the remainder is delivered
in restricted shares. For all other Executives, 75% of their award is delivered in cash and the remainder is delivered in restricted shares. Cash is generally paid and shares generally allocated
around December.
(1) Mr Neves was appointed CEO & MD with effect from 22 January 2024 and his STI outcome reflects his pro-rated opportunity from this date.
(2) Mr Victor ceased as Interim CEO and returned to his substantive role as CFO with effect from 22 January 2024 and the % of maximum opportunity earned and forfeited reflects his STI
opportunity as CFO. Mr Victor will cease employment with IPL on 15 February 2024 and the Board determined that Mr Victor will receive 100% of his FY24 STI in cash.
(3) Mr Bowman was appointed as President, IPF with effect from 1 June 2024 and his STI outcome reflects his pro-rated opportunity from this date. During the year, Mr Bowman also earned a partial
payment under retention arrangements put in place in 2023 to secure his continued support while the company pursued the demerger or sale of IPF. This equated to a total payment of $163,750
of which $54,000 is disclosed in Cash STI, reflecting the period Mr Bowman was a KMP during the year..
Stretch
Between Target & Stretch
Target
Threshold
Below Threshold
Between Threshold & Target
2.4 LTI 2020/23 outcomes
The performance period for the Absolute ROIC and Long-Term Value Metrics conditions of the LTI 2020/23 ended on 30 September 2023
and the outcomes were reported in the 2023 Remuneration Report. The performance period for the Relative TSR Condition ended five
days following the Company’s full year results in November 2023. In the 2023 Remuneration Report, the Relative TSR component of the
LTI 2020/23 was not known at the time and we expected vesting to be around 65% – 88.5% of maximum opportunity. Following testing
against all performance conditions, the Board determined that 88.5% of the performance rights granted under the plan vested (with the
remaining 11.5% lapsing). This is in line with the estimated vesting outlined to shareholders in the 2023 Remuneration Report.
2.5 LTI 2021/24 outcomes
The performance period for the Absolute ROIC, Sustainability (Climate Change) and Long-Term Value Metrics conditions of the LTI 2021/24
ended on 30 September 2024. The performance period for the Relative TSR condition will end after the disclosure of the Company’s full year
results in November 2024 and therefore after the date of this report.
Absolute ROIC – 35% of award
In relation to the conditions that can be reported for the LTI 2021/24 to date, 35% allocated to Absolute ROIC will not vest as the Company’s
ROIC Performance over the period was 6.3% and therefore below threshold performance of 6.4%.
Long-Term Value Metrics – 15% of award
The Board determined 66.67% of the 15% allocated to Long-Term Value Metrics will vest. Commentary on the performance against the
Long-Term Value Metric Condition is set out in the following table.
Long-Term Value
Metric Condition
Objectives
Performance Outcome
Commentary
Threshold
Target
Stretch
Manufacturing
Excellence
Improvement in the average
Reliability across IPL’s key
manufacturing plants (Waggaman,
Moranbah and Phosphate Hill)
against the historical baseline
average (85%).
The threshold level of reliability performance of 90% weighted average was not met
with the overall weighted average reliability outcome of 87.4%. Moranbah achieved
between target and stretch and Waggaman was assessed at above stretch. Phosphate
Hill delivered reliability below threshold.
Customer,
Practical
Technology
& Innovation
Revenues from Technologies:
cumulative growth in total margin
from sales of certain technologies.
The stretch target for this metric was 6% compound annual growth (CAGR) over the
2021 baseline fully absorbed margin per metric tonne for DNA and DNAP. An outcome
of 7.67% CAGR was attained which was above stretch.
Explosives Global Growth: Growth
in EBITDA across LATAM and EMEA
regions
The stretch metric of achieving EBITDA of A$30 million in FY24 was exceeded.
Vesting for this
component (%)
66.7%
Having regard to the outcomes in relation to the input and output
measures, the Board determined that 66.7% of the performance
goals were delivered against the balanced scorecard
Sustainability (Climate Change) – 10% of award
Sustainability measures under the LTI 2021/24 are determined by the Board’s assessment of material progress towards IPL’s 2030 Targets,
developing the scope 3 emission reduction strategy and making material progress on implementation, including:
(i) Moranbah tertiary abatement project; and
(ii) Waggaman sequestration.
In considering the outcome under this measure, the Board considered progress made towards IPL’s 2030 Targets and scope 3 emission
reduction strategy, including:
» Moranbah Tertiary N2O abatement has been successfully installed. The installation of this tertiary abatement will further reduce scope 1
Greenhouse Gas emissions (GHG) by approximately 11% of Dyno Nobel’s and 7% of IPL’s global operational GHG. This achievement also
completes the work necessary to achieve our short-term absolute reduction target in GHG of 5% by 2025; and
» Waggaman sequestration proceeded well up until the disposal of the plant by IPL. Until the Waggaman sale was completed to CF
Industries Holdings, IPL continued to progress work towards implementation of a Carbon Capture Facility (CCF) designed to capture the
pure stream of CO2 created during the ammonia manufacturing process. This included the internal selection of a preferred partner. The
targeted commissioning date of the CCF facility was 2026 at the time of the sale.
In addition, the Board considered progress on other key initiatives including progression of Louisiana, Missouri (LOMO) Tertiary N₂O
Abatement Project, with installation confirmed for 2025. Based on its overall assessment, the Board determined that the full 10% allocated
to the Sustainability measure will vest.
Relative TSR – 40% of award
Current projections suggest the Relative TSR component (worth 40%) may partially vest as a result of IPL’s TSR being above the 50th
percentile performance against the ASX 100 index.
Total vesting of the LTI 2021/24 is therefore currently expected to be in the range of 20% – 50% of maximum opportunity.
Details of the number of rights vested and lapsed in relation to each of the performance conditions attached to this tranche, will be
updated at the upcoming Annual General Meeting and reported in full in the 2025 Remuneration Report.
Stretch
Between Target & Stretch
Target
Threshold
Below Threshold
Between Threshold & Target
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2.6 Remuneration arrangements for new CEO & MD and President, IPF
CEO & MD
Mauro Neves was appointed as CEO & MD with effect from 22 January 2024. Mr Neves’ FAR on appointment was $1,250,000, which
represents a reduction from the FAR of the previous MD & CEO ($1,704,000).
Mr Neves has a target STI opportunity of 80% FAR and a maximum STI opportunity of 120% FAR, representing a reduction compared to
the previous MD & CEO (100% FAR at target and 150% at stretch). 50% of any STI paid will be deferred in shares.
Mr Neves will be eligible to participate annually in a LTI with a grant quantum of 200% FAR which represents an increase from the previous
MD & CEO (150% FAR) and is designed to further align Mr Neves’ remuneration outcomes to longer-term shareholder returns and provide
increased equity exposure. Mr Neves is eligible to participate in the LTI 2023/26 with the number of Rights and Options determined in
the same manners as other Executives. However, the awards will not be granted until shareholder approval is sought at IPL’s 2024 Annual
General Meeting.
Mr Neves may resign at any time by giving 12 months’ notice and IPL may terminate Mr Neves’ employment by giving 12 months’ notice,
or in some circumstances, such as serious misconduct, without notice. Mr Neves is subject to post-employment non-solicitation and non-
compete undertakings for 12 months following the end of employment.
President, IPF
Scott Bowman was appointed as President, IPF with effect from 1 June 2024. Prior to 1 June 2024, Mr Bowman held the role of Interim
President, IPF from 1 December 2023. Mr Bowman’s FAR on appointment as President, IPF was $655,000. As President, IPF Mr Bowman
has a target FY24 STI opportunity of 60% FAR and maximum opportunity of 120% FAR.
Mr Bowman received a LTI 2023/26 grant reflecting the proportion of the 2024 financial year that he was President, IPF. This resulted
in a pro-rata allocation of Performance Rights with the remainder granted under the cash-based long-term incentive plan applicable
to IPL’s senior managers. The Board determined that Mr Bowman should still receive a full grant of Options under the LTI 2023/26 on
the same terms and conditions as other IPL Executives to ensure alignment between Mr Bowman and the remainder of the Executive
Leadership Team.
During the year, Mr Bowman also earned a partial payment under re tention arrangements put in place in 2023 to secure his continued
support while the Company pursued the demerger or sale of IPF. This equated to a total payment of $163,750 of which $54,000 is disclosed
as remuneration, reflecting the period Mr Bowman was a KMP during the year.
2.7 Impact of capital return
Holders of unvested LTI awards did not receive the capital return provided to IPL shareholders in February 2024. Under the terms of the plan
rules governing the LTI offers, IPL has the discretion to grant additional awards under the plan following the capital return to remedy any
disadvantage to plan participants.
The Board considered and approved the grant of additional Rights and Options under the various long-term incentives reflecting the
dilutive impact of the capital return on unvested awards. The Board determined that one additional Right or Option (as applicable) would
be granted for every 17 Rights or Options held by participants. This value has been determined by applying the value of the capital
component of the capital return ($0.1557) against the IPL share price immediately preceding the capital return ($2.68) and rounding this
down to the nearest whole number. This adjustment applies to unvested awards under the LTI 2021/24, LTI 2022/25 and LTI 2023/26 which
were either granted or, in respect of the LTI 2023/26, the allocation value determined prior the capital return being made. Details of the
number of additional Rights and Options granted are provided in Table 7.
In addition, impacted Non-executive Directors participating in the NED Fee Share Plan will also be made an additional allocation of shares in
November 2024 to compensate them for the dilutive impact of the capital return on share rights they held at the time of the capital return.
3. Executive Remuneration and Governance
3.1 Executive remuneration strategy
IPL embraces a set of Strategic Value Drivers that underpin the Company’s business and form the platform for the Company’s future
earnings growth and shareholder returns. The Company’s commitment to addressing climate change challenges and looking for
opportunities in the decarbonisation of the world’s energy systems is an important constituent of the business strategy and integrated
across all the Strategic Value Drivers:
Zero Harm – Broadening and setting year-on-year improvement objectives across key metrics including environmental care and process
safety.
Talented and Engaged People – A safe, inclusive, high performing culture with engaged, diverse and inclusive teams focused on
customers and value creation.
Customer Focus – Partnering with our customers to create added value and practical solutions for today and the future.
Manufacturing Excellence – Driving consistently high performance across all of our assets and investigating ways to address our
greenhouse gas emissions.
Leading Technology Solutions – Innovation on the ground with practical solutions that our customers can use today to improve
their operations and environmental outcomes.
Profitable Growth – Focus on opportunities that are distinctive to our differentiated technology, core markets, core capabilities and
market segments.
Table 4 – Value of equity granted to Executive KMP during FY24
The table below presents the equity granted to Executive KMP during financial year 2024.
Equity granted in the year ended 30 September 2024
Options LTI
2023/26(A)
$000
Rights
LTI 2023/26(A)
$000
FY23 STI
Deferred Shares(B)
$000
Additional
Rights(C)
$000
Totals
$000
Executive KMP – Current
M Neves(1)
–
–
–
–
–
P Victor
586
590
140
42
1,358
G Hayne
501
505
–
72
1,078
B Lusk
613
617
97
80
1,407
S Bowman
413
139
–
–
552
(A) Due to vest in September 2026 subject to satisfaction of performance conditions. Rights and Options include the Capital Return Dilution compensation granted 29 August 2024. VWAP at
allocation of performance Rights $2.8512 and Options valued at $0.33.
(B) STI Deferred Shares awarded are subject to a maximum deferral period of 15 years from the STI offer date. VWAP at allocation $2.9664.
(C) LTI 2021/24 and LTI 2022/25 capital return compensation granted 29 August 2024.
(1) The number of Rights and Options for Mr Neves has been determined using the same allocation methodology as for other Executives. Subject to shareholder approval being received, the
number of Rights to be granted are 371,360 (value of $1.059m) and the number of Options to be granted are 4,779,656 (value of $1,576m). Total $2,635m.
Table 5 – Actual pay
The table below provides a summary of actual remuneration paid to the Executives in the 2024 financial year. The accounting values of
the Executives’ remuneration reported in accordance with the Accounting Standards may not always reflect what the Executives have
actually received, particularly due to the valuation of share-based payments. The table below seeks to clarify this by setting out the actual
remuneration that the Executives have been paid and rights that vested during the 2024 financial year. The STI shown in the table below
relates to the STI awarded in the 2023 financial year and paid in the 2024 financial year. STI awarded in relation to the 2024 financial year
will be paid during the 2025 financial year.
Executive remuneration details prepared in accordance with statutory requirements and the Accounting Standards are presented in Table 9
of this report.
Salary
& Fees
Short term
incentive
& other
bonuses(A)
Other
short-term
benefits(B)
Superannuation
/ Pension
benefits
Other
long-term
benefits(C)
Termination
benefits
Total
Year
$000
$000
$000
$000
$000
$000
$000
Executive KMP – Current
M Neves(1)
2024
848
–
–
21
–
–
869
CEO & MD
P Victor(2)
2024
1,003
708
177
28
–
–
1,916
CFO
2023
984
161
170
32
–
–
1,347
G Hayne(3)
2024
760
393
102
28
764
–
2,047
President, Dyno Nobel Asia Pacific
2023
898
644
1
26
463
–
2,032
B Lusk(3)
2024
1,001
388
126
30
871
2,416
President, Dyno Nobel Americas
2023
973
643
30
24
176
1,846
S Bowman(4)
2024
209
–
–
10
–
–
219
President, IPF
Executives – Former
J Johns(5)
2024
–
–
–
–
–
–
–
Managing Director & CEO
2023
1,139
1,574
59
–
2,127
51
4,950
S Titze(6)
2024
–
–
–
–
–
–
–
President, IPF
2023
–
410
–
–
–
360
770
Total Executives
2024
3,821
1,489
405
117
1,635
–
7,467
2023
3,994
3,432
260
82
2,766
411
10,945
(A) Disclosure for Mr Victor includes the value of the second tranche of rights granted to Mr Victor on commencement of employment as outlined in Table 7.
(B) Other short-term benefits include rent and mortgage interest subsidies, dividend equivalent payments, relocation allowances and other allowances, where applicable. Other short-term benefits
for Mr Hayne and Dr Lusk include the value of dividend and capital return equivalent payments made in relation to the delayed vesting of the LTI 2020/23.
(C) Other long-term benefits include any long service leave paid and the value of shares that vested under the Group’s LTI plans. Long-Term Incentives include all plan-related instruments
that vested during the year. The theoretical cash price is based on the IPL share price on the day that shares were purchased.
(1) Remuneration for Mr Neves reflects his remuneration as CEO & MD from 22 January 2024.
(2) Mr Victor was Interim CEO from 6 June 2023 until 21 January 2024 during which period Mr Victor received a higher duties allowance equivalent to 40% of his fixed annual remuneration.
Other short-term benefits for Mr Victor represent the value of a travel allowance paid to Mr Victor.
(3) Other short-term benefits for Mr Hayne and Dr Lusk include the value of dividend and capital return equivalent payments made in relation to the delayed vesting of LTI 2020/23 awards.
(4) Mr Bowman was appointed President, IPF with effect from 1 June 2024.
(5) Ms Johns ceased as a KMP on 6 June 2023. Disclosures for the 2023 financial year are up until that date, with the exception of the STI which represents a full financial year and the repatriation
costs incurred after Ms Johns ceased as a KMP as part of the termination arrangements.
(6) Mr Titze ceased as a KMP on 27 July 2022. Termination benefits for Mr Titze in the 2023 financial year include all contractual entitlements.
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Under the Strategic Value Driver of ‘Talented and Engaged People’, IPL recognises that, to generate competitive returns for its shareholders,
it requires talented people who are capable, committed and motivated. IPL’s remuneration strategy is designed to support the objectives of
the business and to enable the Company to attract, retain and reward Executives of the requisite skill and calibre.
The key principles of the Company’s remuneration strategy are to:
» reward Executives for outcomes at both the Group and business unit level that create sustained value for shareholders;
» require behaviours aligned to Company values, culture and code of conduct;
» drive strong alignment with shareholder interests;
» ensure the majority of Executive remuneration is ‘at risk’ and subject to demanding financial and non-financial performance objectives;
» be globally competitive to attract and retain talent;
» reward individual high performance and encourage a one team culture; and
» ensure the remuneration framework is equitable, transparent, simple to understand, communicate and implement.
3.2 Executive remuneration governance
The remuneration of the Executives is set by the Board, having regard to recommendations from the People and Remuneration Committee.
Where appropriate, the People and Remuneration Committee of the Board engages external advisors to provide input into the process
of reviewing Executive and Non-executive Director remuneration. For the 2024 financial year, the People and Remuneration Committee
received market and benchmarking data from various sources, but this information did not constitute a remuneration recommendation
for the purposes of the Corporations Act 2001 (Cth).
Further information in relation to the Board and the People and Remuneration Committee can be found in IPL’s Corporate Governance
Statement available on IPL’s website.
4. 2024 Executive Remuneration Framework
4.1 Overview
The charts below set out the theoretical breakdown of the Executives’ total remuneration package for the 2024 financial year. The FAR
component is inclusive of cash and superannuation only, whilst ‘at risk’ compensation is based on maximum entitlement that could potentially
be awarded under the STI and LTI plans.
The restricted shares component of the STI (50% for the CEO & MD, 25% for other Executive KMP) must be deferred until an Executive’s MSR
is attained.
4.2 Fixed annual remuneration
Executives receive their fixed annual remuneration (FAR) in a variety of forms, including cash, superannuation, and any applicable fringe
benefits. The Executives’ FAR is set by reference to appropriate benchmark information for each Executive’s role, level of knowledge, skill,
responsibilities and experience. The level of remuneration is reviewed annually in alignment with the financial year and with reference
to, among other things, Company and individual performance and market data provided by an appropriately qualified and independent
external data specialist. The following comparator groups are used to benchmark fixed annual remuneration:
Comparator groups
S&P/ASX listed companies with market capitalisation between 50% and 200% of IPL market capitalisation (Primary Benchmark).
S&P/ASX 100 listed companies.
A select group of 18 S&P/ASX listed companies from the Industrials, Materials and Energy Sectors, selected on the basis of market
capitalisation and related industry exposure, consisting of: AGL Energy, ALS, Ampol Australia, Atlas Arteria, Aurizon, BlueScope Steel,
Brickworks, Cleanaway, CSR, Downer EDI, Fletcher Building, Orica, Origin Energy, Orora, Qube, Reliance Worldwide, Seven Group and Sims.
For roles located outside Australia, market-specific data is used as an additional reference point for benchmarking purposes.
Other Executives
CEO & MD
30%
Fixed
70%
At Risk
35%
LTI
30%
FAR
35%
STI – cash/
restricted
shares
Fixed
24%
At Risk
76%
47%
LTI
24%
FAR
29%
STI – cash/
restricted
shares
4.3 Short-term incentive – key terms
The STI is an annual ‘at risk’ incentive which is dependent on the achievement of particular performance measures. The following table
summarises the STI plan that applied in the 2024 financial year (2024 STI):
What was the performance
period?
The performance period for the 2024 STI was the financial year from 1 October 2023 to 30 September 2024.
Who was eligible for the STI?
All Executives participated in the 2024 STI.
What were the Performance
Conditions and Measures?
Performance conditions under the STI are determined by the Board for each financial year. The performance conditions for the
2024 STI are set out below:
Performance Conditions
Measures to assess
satisfaction
of Performance
Conditions
Rationale for the Performance Conditions
Zero Harm
Safety performance
balanced scorecard
across the dimensions of
behavioural and process
safety management
comprising input and
output measures(1).
To align with the Company’s commitment to “Zero
Harm for Everyone, Everywhere”.
Group Financial Performance
Group NPAT (Net
Profit After Tax). Group
Adjusted NPAT(2).
To align Executive KMP with targeted profits that
would contribute to shareholder returns.
Business Unit Financial
Performance
Business Unit Adjusted
EBIT (Earnings Before
Interest and Tax)(2).
To ensure robust alignment of performance in
a particular business unit with reward for the
Executive managing that business unit.
Climate Change
measures
Climate change related
measures targeted at
an Executive’s area of
influence.
Performance conditions are designed to align with
the overall climate change strategy of the business
and focuses an Executive on the key short-term
objectives within their area of influence, that
contribute towards the Company’s longer-term
milestones.
Strategic Outcomes
Measures based on
performance criteria
for the execution and
implementation of
strategic objectives and
business priorities. These
include measures related
to portfolio review
and growth initiatives,
product innovation and
input to the delivery of
key strategic projects.
Tailored to individual Executive’s role, to drive
performance and behaviours consistent with
achieving critical aspects of the Group’s strategy.
(1) In assessing the safety balanced scorecard, the Board may, in its discretion, have regard to the results achieved against the measures comprising
the scorecard without applying a specific weighting to any particular measure. The balanced scorecard category measures include: Personal Safety;
Process Safety; Environmental; Significant Event Management; and the Zero Harm Plan.
(2) Adjusted means that results have been recognised to remove the impact of foreign exchange and commodity price movements.
Where any Individually Material Item (IMI) is separately recognised in the financial report, the Board will have discretion to
include or exclude the IMI for the purpose of determining any STI award, taking into account the nature of the IMI and having
regard to whether, in the circumstances, it would be appropriate for the IMI to be attributable to Management.
Determination of the extent to which each of the above measures was satisfied was based on a review by the Board of
the audited financial report and performance of the Group for the financial year, following the annual performance review
process for the Executives.
Are there minimum
performance levels
which must be achieved
before awards can be
made under the STI?
For the 2024 financial year, to ensure STI awards are aligned with business performance outcomes, the Board determined that
a STI Financial Gate would operate. The STI Financial Gate reflects a requirement to exceed a designated level of the Group’s
NPAT performance, or all non-safety components of the STI will be capped at a maximum of target payment. For FY24, this
was determined to be threshold NPAT performance.
The STI Financial Gate does not apply to any awards payable in relation to the Zero Harm performance condition, reflecting
the primacy of safety.
In relation to the Zero Harm performance condition, the Board retains discretion to forfeit all or part of the award payable for
this performance condition in the event of a fatality or major incident having regard to the circumstances of the incident.
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What LTI plans were
granted for the 2024
financial year?
The LTI Plan granted during the 2024 financial year was the LTI 2023/26. Under the LTI Plan, participants are entitled to acquire
ordinary shares in the Company, on a one-right to one-share basis, for no consideration at a later date. The Rights and Options
are issued by IPL and the entitlement of the participants to acquire ordinary shares is subject to the satisfaction of certain
conditions. As no shares are provided to participants until vesting, Rights and Options have no dividend entitlement. Rights and
Options expire on vesting or lapsing of the Rights and Options.
What is the purpose
of the LTI?
The LTI is designed to link reward with the key performance drivers which underpin sustainable growth in shareholder value.
As Rights and Options granted under the LTI Plan result in share ownership on the achievement of demanding targets, the LTI ties
remuneration to Company performance, as experienced by shareholders. The arrangements also support the Company’s strategy
for retention and motivation of the Executives.
What is the process for
determining eligibility?
The decision to grant the LTI Plans and to whom they will be granted is made annually by the Board, noting that the grant of
Rights and Options to the CEO & MD is subject to shareholder approval. Grants of Rights and Options are calculated using the
relevant percentage of an Executive’s FAR.
What is the maximum LTI
opportunity (face value)?
For the CEO & MD – 200% FAR. 40% of the LTI opportunity (80% FAR) will be granted as Performance Rights and 60% of the LTI
opportunity (120% FAR) will be granted as Share Options. Grants to the CEO & MD under the LTI 2023/26 have not yet been
made and are subject to shareholder approval at the 2024 Annual General Meeting.
For all other Executives – 120% FAR. 50% of the LTI opportunity (60% FAR) was granted as Rights and 50% of the LTI opportunity
(60% FAR) was granted as Options.
How was the number
of Rights and Options
calculated under the
LTI Plans?
Rights
For the LTI 2023/26, the number of Rights issued to a participant was based on the volume weighted average price (VWAP)
of the Company’s shares over the 5 business days immediately preceding the announcement of the new CEO & MD, being
11 December 2023 ($2.8512).
Each issuance was determined by dividing the dollar value of the relevant participant’s LTI opportunity by this VWAP.
Options
The number of Options granted was determined using the fair value of the Options as calculated by an independent third
party provider, using a Monte Carlo simulation option pricing model. Three different fair values were applied, the values
reflecting both the stretching nature of the Absolute TSR performance hurdles and the requirement for employees to remain
in employment until the end of the relevant Exercise Restriction period of the Options (up to 2 years following the end of the
performance period).
The total number of Options granted was determined by dividing the dollar value of the relevant participant’s LTI opportunity
by the following fair value of the Options.
50% of Option grant value: $0.34.
25% of Option grant value: $0.33.
25% of Option grant value: $0.32.
What is the exercise price?
Rights
Nil
Options
$2.8512, representing the VWAP of the Company’s share over the 5 business days immediately preceding the announcement
of the new CEO & MD, being 11 December 2023). This was seen as an appropriate price aligned to future direction and
strategy.
What are the performance
conditions attached to the
Rights?
Relative TSR condition (50% of Rights)
The Relative TSR condition requires growth in the Company’s TSR to be at or above the median of the companies in the
comparator group, being the S&P/ASX 100. This condition provides shareholder alignment as it takes into account the
Company’s share price movement as well as dividends paid, relative to other organisations comparable to the Company.
The S&P/ASX 100 has been chosen as the comparator group because, having regard to the business segments in which the
Company operates and, specifically, the absence of a sufficient number of direct comparator companies, the Board considers
the S&P/ASX 100 to represent the most appropriate, and objective, comparator group. It also represents the group of
companies against which the Company competes for shareholder capital. The Board has the discretion to vary the comparator
group at any time, including to remove companies from, or include companies in, the comparator group.
The table below sets out the Relative TSR condition, and the percentage of the Rights that will vest based on satisfaction of this
condition.
Relative TSR ranking of IPL
% of Rights subject to the Relative TSR condition that will vest
Less than 50th percentile
Nil
At or greater than 50th percentile but less than 75th
percentile
Pro rata from 50% on a straight-line basis
At 75th percentile or greater
100%
The Relative TSR condition will be measured over the period from the commencing on the appointment of the new CEO & MD
and ending on the 10th business day following the announcement of FY26 full year results. A VWAP over the 10-day period
following the announcement of FY26 full year results will be used to determine the final outcome.
Return on Invested Capital (50% of Rights)
The ROIC condition for LTI 2023/26 is calculated via a three-year average over the performance period, accommodating intra-
year movements in ROIC aligned with the impacts of commodity price volatility.
ROIC has been selected as it is a key determinant of efficient use of the capital entrusted to management by shareholders.
It also reflects all of the levers to create shareholder value, including operational efficiency, capital efficiency, asset utilisation
and profitability. ROIC is defined as Net Profit After Tax, excluding interest and individually material items, divided by total
invested capital, including goodwill (on a rolling 13 month average basis).
What were the weightings
for the STI performance
measures?
The weighting of Executives’ STI performance measures (as a percentage of 100%) for 2024 were:
Table 6 – Weighting of Executive STI performance measures
Group
Headline
NPAT
Group
Adjusted
NPAT
Business Unit
Adjusted
EBIT
Safety
Climate
Change
Strategic Outcomes
Executives – Current
M Neves*(1)
CEO & MD
40%
20%
10%
10%
20%
P Victor*(2)
CFO
20%
40%
10%
6%
24%
G Hayne**
President, Dyno Nobel Asia Pacific
20%
40%
10%
10%
20%
B Lusk**
President, Dyno Nobel Americas
20%
40%
10%
10%
20%
S Bowman**
President, IPF
20%
40%
10%
10%
20%
*Group role **Business Unit role
(1) Mr Neves was appointed to the role of CEO & MD with effect from 22 January 2024.
(2) Weightings reflect Mr Victor’s role as CFO. Mr Victor was Interim CEO from 1 October 2023 to 21 January 2024. As Interim CEO his target STI
opportunity was 100% of his fixed annual remuneration and higher duties allowance (on a pro-rata basis) during the period he was appointed
Interim CEO. During this time his STI scorecard weightings aligned to the weightings of the CEO & MD. In the 2023 Remuneration Report it was
reported that the weighting to Group Headline NPAT for the Interim CEO would be 20% and a 40% weighting Group Adjusted NPAT in FY24.
For both Mr Neves as CEO & MD and Mr Victor in his role as Interim CEO, the correct weighting for FY24 is 40% weighting to Group Headline
NPAT and 20% Group Adjusted NPAT. For the FY25 STI, both CEO & MD and CFO will have a 40% weighting to Group Headline NPAT and 20%
weighting to Group Adjusted NPAT.
Is there an STI deferral
component?
A mandatory 25% STI deferral (50% for the CEO & MD) continues until an Executive’s MSR is achieved. The MSR is 200% of
FAR for the CEO & MD and 50% of FAR for Executives. All deferred shares are subject to a maximum 15-year sale restriction.
A revised MSR and STI deferral arrangement will apply from FY25 (see section 5).
How is the STI delivered?
The STI is delivered partly in cash and partly in the form of restricted shares. The split between cash and restricted shares is
determined based on each participant’s shareholding under the MSR.
Was there a mechanism
for clawback?
The 2024 STI included a clawback provision, which requires the repayment of all or part of any STI awarded within three years
after a payment is made, in the event of a material misstatement or omissions in IPL’s financial statements which results in
a restatement of the audited financial report, or where a participant has materially breached their obligations to the Company.
4.4 Long-term incentive – key terms
The LTI is the long-term incentive component of remuneration for Executives. The LTI 2023/26 is provided in the form of Performance Rights (Rights) and Share
Options (Options).
What are the key
changes to the
LTI in FY24?
» An enhanced LTI opportunity was provided to the CEO & MD as part of a reweighting of the CEO remuneration package
towards the rewarding of longer-term performance. The LTI opportunity for the CEO & MD represents 200% of his FAR.
» An enhanced LTI opportunity was also provided to the Other KMP. The LTI opportunity for Other KMP represents 120%
of their FAR. From FY25, this increased LTI opportunity will be balanced by a reduction in the target and stretch STI levels.
» Introduction of a one-off grant of Options alongside Rights as part of the LTI 2023/26 measured against an Absolute TSR
hurdle (see below for further details).
» Rights granted by way of LTI are to be measured against Relative TSR and ROIC only. LTI performance will not be measured
against Long-Term Value Metrics or the Sustainability performance condition as under the LTI 2021/24 and LTI 2022/25 plans.
Why was a one-off
grant of Options made?
» As discussed with major shareholders and proxy advisors in October and November 2023 and as outlined at the 2023
Annual General Meeting, to support future direction and strategy and create momentum for business performance and
change, the Board determined to make a one-off grant of Options to directly align executive incentive outcomes with the
achievement of shareholder returns over the coming three year period.
» Options have been chosen as they directly align with our strategy of growing shareholder value. Vesting under the Options
will not occur unless there is a significant compound annual growth in Absolute TSR over the performance period aligned
to significant shareholder value creation.
» Following the end of the three-year performance period, 50% of vested Options become exercisable. The remainder of the
vested Options are subject to an Exercise Restriction Period, with a further 25% of vested Options becoming exercisable on
each of the first and second anniversary of vesting (subject to an Executive’s continued employment at each anniversary).
This means that even after the Options have vested, the value that may be realised by Executives remains subject to
movements in the IPL share price. Exposure to a further 2 years of share price variability means that if IPL’s share price
decreases following vesting, Executives will experience the same downside as shareholders (and vice versa).
» While the Options have the potential to result in substantial reward for Executives, the requirement for stretching Absolute
TSR growth and continued employment requirements following vesting ensures a clear link to the long-term value created
for shareholders.
» Following this one-off grant of Options, further LTI awards will be made in the form of Rights only.
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4.5 Executive service agreement terms
Remuneration and other terms of employment for the Executives are formalised in service agreements. Most Executives are engaged on
similar contractual terms, with minor variations to reflect differing circumstances. Each agreement is unlimited in term; however, each
agreement provides that the Company may terminate an Executive’s employment immediately for cause without any separation payment,
save for accrued amounts such as leave, or otherwise without cause, with or without notice, in which case the Company must pay a
separation payment plus accrued amounts such as leave.
The notice period to be provided by the Executives is set out in the table below:
Current Executives
Notice period to be provided by the Executive
Notice period to be provided by the Company
M Neves
52 weeks
52 weeks
P Victor
26 weeks
26 weeks
G Hayne(1)
26 weeks
52 weeks
B Lusk
26 weeks
26 weeks
S Bowman
26 weeks
26 weeks
(1) Mr Hayne operates under an historical contract which provides for a separation payment equal to 52 weeks of FAR (subject to the termination provisions in the Corporations Act).
4.6 Performance related remuneration
Table 7 – Details of Rights and Options granted and vested in the year ended 30 September 2024 and the vesting profile of Rights
granted as remuneration
Details of Rights vested and forfeited set out in the table below relate to the Rights granted under the LTI 2020/23 (refer to section 2.4 of this
Report) and medium-term incentive rewards previously granted to Mr Victor.
The performance period for the Relative TSR condition in the LTI 2021/24 plan is November 2024, therefore only non-TSR performance
conditions attached to the LTI 2021/24 can be commented on in this year’s report (refer to section 2.5 of this Report), with detailed reporting
on the LTI 2020/23 tranche included under section 2.4.
Key Management Personnel
Grant date
Granted
during 2024 as
remuneration (A)
$000
Exercised
in year
$000
Vested
in year
%
Forfeited
in year %
Financial
year in which
grant vested
or could vest
Maximum
value of
outstanding
rights (A)
$000
Executives – Current
M Neves(1)
P Victor(2)
Medium-term incentive rewards
Performance period: 1 July 2022 to 30 June 2024
1 July 2022
–
148
100
–
2024
–
Long-term incentive rewards
LTI 2022/25 - Rights
23 November 2022
–
–
–
–
2025
447
LTI 2022/25 - Rights (capital return additional grant)
29 August 2024
26
–
–
–
2025
26
LTI 2023/26 - Rights
8 March 2024
367
–
–
–
2026
367
LTI 2023/26 - Rights (capital return additional grant)
29 August 2024
22
–
–
–
2026
22
LTI 2023/26 - Options
8 March 2024
407
–
–
–
2026
407
LTI 2023/26 - Options (capital return additional grant)
29 August 2024
24
–
–
–
2026
24
G Hayne
Long-term incentive rewards
LTI 2020/23 - Rights
14 December 2020
–
764
88
12
2023
–
LTI 2021/24 - Rights
17 January 2022
–
–
–
–
2024
455
LTI 2021/24 - Rights (capital return additional grant)
29 August 2024
27
–
–
–
2024
27
LTI 2022/25 - Rights
23 November 2022
–
–
–
–
2025
382
LTI 2022/25 - Rights (capital return additional grant)
29 August 2024
22
–
–
–
2025
22
LTI 2023/26 - Rights
8 March 2024
314
–
–
–
2026
314
LTI 2023/26 - Rights (capital return additional grant)
29 August 2024
18
–
–
–
2026
18
LTI 2023/26 - Options
8 March 2024
348
–
–
–
2026
348
LTI 2023/26 - Options (capital return additional grant)
29 August 2024
20
–
–
–
2026
20
B Lusk
Long-term incentive rewards
LTI 2020/23 - Rights
14 December 2020
–
871
88
12
2023
–
LTI 2021/24 - Rights
17 January 2022
–
–
–
–
2024
491
LTI 2021/24 - Rights (capital return additional grant)
29 August 2024
29
–
–
–
2024
29
LTI 2022/25 - Rights
23 November 2022
–
–
–
–
2025
435
LTI 2022/25 - Rights (capital return additional grant)
29 August 2024
26
–
–
–
2025
26
LTI 2023/26 - Rights
8 March 2024
384
–
–
–
2026
384
LTI 2023/26 - Rights (capital return additional grant)
29 August 2024
23
–
–
–
2026
23
LTI 2023/26 - Options
8 March 2024
425
–
–
–
2026
425
LTI 2023/26 - Options
29 August 2024
25
–
–
–
2026
25
The table below sets out the Average ROIC condition for the LTI 2023/26, and the percentage of Rights that will vest based on
satisfaction of this condition:
Average ROIC Targets
% of Rights subject to the Average ROIC condition that will vest
Less than 6%
Nil
At or above 6% but less than 8%
Pro rata from 50% on a straight-line basis
8% or greater
100%
The average ROIC range of 6% to 8% has been selected as it reflects the Board’s expectations considering IPL’s long-term
strategy and current market cycle. The targets have also been determined in the context of the goodwill recognised on the
Company’s balance sheet for the acquisition of Dyno Nobel in 2008. ROIC targets for the LTI 2023/26 have decreased from
the LTI 2022/25 targets, largely resulting from the lower commodity price outlook at its forecast impact on ROIC over the
performance period.
The ROIC performance condition will be measured over the three-year period from 1 October 2023 to 30 September 2026.
What are the performance
conditions attached to the
Options?
Absolute TSR condition (100% of Options)
The Absolute TSR condition requires growth in the Company’s TSR from the commencement of the performance period.
Absolute TSR reflects the growth in the price of the Company’s shares over the performance period, plus the value of the
dividends. This condition provides shareholder alignment as it takes into account the Company’s share price movement
as well as dividends paid and other returns to shareholders.
The table below sets out the Absolute TSR condition, and the percentage of the Options that will vest based on satisfaction
of this condition.
Compound annual growth in Absolute TSR
% of Options subject to the Absolute TSR condition that will vest
Below 10%
Nil
10% to <15%
Pro rata from 0% to 29.99% on a straight line basis
15% to <20%
Pro rata from 30% to 59.99% on a straight line basis
20% to 25%
Pro rata from 60% to 100% on a straight line basis
The Absolute TSR condition will be measured over the period from the commencing on the appointment of the new CEO & MD
and ending on the 10th business day following the announcement of FY26 full year results. A VWAP over the 10-day period
following the announcement of FY26 full year results will be used to determine the final outcome.
When are the performance
conditions measured?
After the expiry of the relevant performance period, the Board determines whether the performance condition attached to the
Rights and Options are satisfied. The performance conditions are tested once, at the end of the relevant performance period.
If the performance conditions are satisfied and the Rights vest, the participant is entitled to receive ordinary shares in the
Company. The participant does not pay for those shares.
If the performance conditions are satisfied and the Options vest, the participant is entitled to exercise the vested and
exercisable Options by paying the applicable option exercise price and receive ordinary shares in the Company.
To the extent the performance conditions are not satisfied during the performance period, the Options will lapse.
What happens if a participant
leaves the Company?
Generally, the Rights and Options granted under the LTI Plans will lapse on a cessation of employment except where the
participant has died, becomes totally and permanently disabled, is retrenched, retires or is terminated without cause (good
leaver). In those circumstances (subject to Board discretion), the number of Rights or Options retained by the participant will
be reduced pro rata to reflect the proportion of days worked during the relevant performance period and will be tested in the
ordinary course. Any Options which vest to a good leaver will be exercisable for a period of 12 months following vesting.
Vested Options that remain subject to an Exercise Restriction Period will lapse on cessation of employment except where the
participant is determined to be a good leaver. In circumstances where a participant is deemed to be a good leaver all vested
Options subject to an Exercise Restriction Period will become exercisable for a period of 12 months.
In what other circumstances
may the performance rights
vest (which may be before
or after the expiry of the
performance period) under
the LTI Plans?
The Board may provide a notice to the participants specifying that the Rights and Options will vest at a time stipulated in the
notice on the occurrence of one of the following events in relation to the Company:
» a takeover bid;
» a change of control;
» the Court ordering a meeting be held in connection with a scheme for the reconstruction of the Company or its
amalgamation with any other companies; or
» a voluntary or compulsory winding-up.
Is there a mechanism
for clawback?
The LTI Plan includes a clawback provision, which requires the repayment of vested awards where payment has exceeded the
restated position. This includes overpayments resulting from a material misstatement or omissions in IPL’s financial statements
on where a participant has materially breached their obligations to the Company.
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4.7 Further details of Executive remuneration
Table 9 – Executive remuneration
Details of the remuneration for each Executive KMP for the year ended 30 September 2024 in accordance with Accounting Standards are set
out below:
Short-term benefits
Post
employment
benefit
Other
long term
benefits(B)
Termination
benefits
Share-based payments
Accounting values
Salary
& Fees
Short
term
incentive
& other
bonuses
Other
short
term
benefits(A)
Superannuation
/Pension
benefits
Current
period
expense(C)
Prior
periods
expense
write-
back(C)
Total
share-
based
payments
Total
Year
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Executive KMP – Current
M Neves(1)
2024
848
755
–
21
4
–
–
–
–
1,628
CEO & MD
P Victor(2)
2024
1,003
969
177
28
9
–
361
(4)
357
2,543
Chief Financial Officer
2023
984
560
170
26
6
–
253
–
253
1,999
G Hayne
2024
760
739
102
28
27
403
(77)
326
1,982
President, Dyno Nobel Asia Pacific
2023
898
393
1
26
15
–
333
(134)
199
1,532
B Lusk(3)
2024
1,001
609
126
30
–
–
473
(88)
385
2,151
President, Dyno Nobel Americas
2023
973
388
30
24
–
–
374
(68)
306
1,721
S Bowman(4)
2024
209
162
–
10
92
–
132
–
132
605
President, IPF
Executives – Former
J Johns
Managing Director & CEO
2023
1,139
666
59
–
37
922
1,172
(508)
664
3,487
S Titze
President, IPF
2023
–
–
–
–
–
–
135
(86)
49
49
Total Executives
2024
3,821
3,234
405
117
132
1,369
(169)
1,200
8,909
2023
3,994
2,007
260
76
58
922
2,267
(796)
1,471
8,788
(A) Other short-term benefits include medical insurance benefits, travel allowances and other allowances, where applicable. Other short-term benefits for Mr Hayne and Dr Lusk include the value
of dividend and capital return equivalent payments made in relation to the delayed vesting of the LTI 2020/23.
(B) Other long-term benefits represent long service leave accrued during the reporting period.
(C) In accordance with accounting standards, remuneration includes the amortisation of the fair value at grant date of performance rights issued under the LTI Plans that are expected to vest, less
any write-back on performance rights lapsed or expected to lapse as a result of actual or expected performance against non-market hurdles (“Option Accounting Value”). The value disclosed in
the above Table 9 represents the portion of fair value allocated to this reporting period and is not indicative of the benefit, if any, that may be received by the Executive should the performance
conditions with respect to the relevant long-term incentive plan be satisfied.
(1) Mr Neves commenced as CEO & MD on 22 January 2024. He is entitled to receive an award under the LTI 2023/26 comprising of Rights and a one-off award of Options. The grant of these awards
is subject to shareholder approval at the 2024 AGM. Subject to shareholder approval being received, the number of Performance Rights to be granted are 371,360 and the number of Options to
be granted Options are 4,779,656.
(2) Mr Victor acted as Interim CEO from 6 June 2023 to 21 January 2024 and during this period, Mr Victor received a higher duties allowance equivalent to 40% of his fixed annual remuneration.
As announced on 8 October Mr Victor will leave IPL on 15 February 2025. Mr Victor will receive his contractual entitlements up to that date including a payment equivalent to 6 months FAR on
cessation of employment. His outstanding LTI and Options will be prorated to 15 February 2025 and will remain on foot to be tested in the ordinary course. He will not participate in the FY25 STI
or LTI 2024/27 plans.
(3) FAR payments for Dr Lusk were converted from US$ to A$ at the average rate for 1 October 2023 to 30 September 2024, being $1.5174.
(4) For Mr Bowman, Short Term Incentive & other bonuses also include a partial payment under retention arrangements put in place in 2023 to secure his continued support while the company
pursued the demerger or sale of IPF. This equated to a total payment of $163,750 of which $54,000 is disclosed in Cash STI, reflecting the period Mr Bowman was a KMP during the year.
Fair value per share treated as rights at grant date
LTI 2019/22 – TSR
$1.58
LTI 2019/22 – Long-Term Value Metrics (formerly Strategic Initiatives)
$2.99
LTI 2019/22 – Absolute ROIC
$2.99
LTI 2020/23 – TSR
$1.69
LTI 2020/23 – Long-Term Value Metrics
$2.29
LTI 2020/23 – Absolute ROIC
$2.29
LTI 2021/24 – TSR
$1.75
LTI 2021/24 – Long-Term Value Metrics
$2.86
LTI 2021/24 – Absolute ROIC
$2.86
LTI 2021/24 – Sustainability
$2.86
LTI 2022/25 – TSR
$1.48
LTI 2022/25 – Long-Term Value Metrics
$3.08
LTI 2022/25 – Average ROIC
$3.08
LTI 2022/25 – Sustainability
$3.08
LTI 2023/26 – rTSR (Rights)
$1.28
LTI 2023/26 – Average ROIC (Rights)
$2.48
LTI 2023/26 – aTSR (Options Tranche 1)
$0.26
LTI 2023/26 – aTSR (Options Tranche 2)
$0.23
LTI 2023/26 – aTSR (Options Tranche 3)
$0.22
S Bowman
Long-term incentive rewards
LTI 2023/26 - Rights(3)
27 June 2024
87
–
–
–
2026
87
LTI 2023/26 - Rights (capital return additional grant)
29 August 2024
5
–
–
–
2026
5
LTI 2023/26 - Options
27 June 2024
287
–
–
–
2026
287
LTI 2023/26 - Options (capital return additional grant)
29 August 2024
17
–
–
–
2026
17
(A) For the long-term incentive awards, the value of Rights and Options granted in the year is the fair value of those Rights and Options calculated at grant date using a Black-Scholes option-pricing
model. The value of these Rights and Options is included in the footnotes under Table 9. This amount is allocated to the remuneration of each Executive over the vesting period (that is, in the
2024, 2025 and 2026 financial years). The maximum value of outstanding Rights and Options is based on the fair value of the Rights and Options at the grant date. This may be different to the
value of the Rights and Options in the event that they vest. The minimum value of Rights and Options yet to vest is zero, as the performance criteria may not be met.
(1) Mr Neves commenced as CEO & MD on 22 January 2024. He is entitled to receive an award under the LTI 2023/26 comprising of Rights and a one-off award of Options. The grant of these awards
is subject to shareholder approval at the 2024 AGM. Subject to shareholder approval being received, the number of Rights to be granted are 371,360 and the number of Options to be granted
are 4,779,656.
(2) Mr Victor commenced as CFO and was appointed a KMP on 1 July 2022. On commencement, he received performance rights with a fair value of $269,000 in recognition of incentives forgone
upon joining IPL. The first tranche of performance rights vested on 1 July 2023 and the shares received at vesting remain subject to a disposal restriction in line with IPL’s Minimum Shareholding
Requirement, up to a maximum of 15 years from the grant date of the performance rights. The second tranche vested upon achievement of the performance hurdle on 1 July 2024 and the shares
received at vesting also remain subject to a disposal restriction in line with IPL’s Minimum Shareholding Requirement, up to a maximum of 15 years from the grant date of the performance rights.
(3) The number of Rights granted to Mr Bowman reflects a pro-rata allocation for the period Mr Bowman was an Executive KMP during the financial year. For the remainder of the year, Mr Bowman
was awarded a pro-rata allocation under the cash-based long-term incentive provided to IPL’s senior management below Executive level. The Board determined to grant Mr Bowman a full year
allocation of Options to maintain alignment with the remainder of the Executive Leadership Team.
Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including rights) granted to a KMP have been altered or modified by the
issuing entity during the reporting period.
Table 8 – Movements in rights over equity instruments in the Company
The movement during the reporting period in the number of rights over shares in the Company, held directly, indirectly or beneficially, by
each KMP, including their related parties, is as follows:
Number of Rights and Options
Key Management Personnel
Opening balance
Granted as
compensation(A)
Vested(B)
Forfeited(C)
Closing balance
Executives – Current
M Neves
–
–
–
–
–
P Victor
Medium-term incentive rewards
43,473
–
(43,473)
–
–
Long-term incentive rewards (Rights)
183,024
217,717
–
–
400,741
Long-term incentive rewards (Options)
–
1,775,738
–
–
1,775,738
G Hayne
Long-term incentive rewards (Rights)
598,448
197,353
(224,474)
(29,169)
542,158
Long-term incentive rewards (Options)
–
1,519,356
–
–
1,519,356
B Lusk
Long-term incentive rewards (Rights)
670,645
238,857
(255,930)
(33,257)
620,315
Long-term incentive rewards (Options)
–
1,856,980
–
–
1,856,980
S Bowman
Long-term incentive rewards (Rights)
–
48,781
–
–
48,781
Long-term incentive rewards (Options)
–
1,252,269
–
–
1,252,269
(A) For the 2024 financial year, this represents the Rights and Options granted to Executives during the reporting period under the LTI 2023/26. The total granted in the year also includes the
additional Rights and Options granted to Executives (on a one for 17 basis) under LTI awards made in previous financial years to compensate for the dilutive impact of the capital return.
Mr Neves financial year 2024 award will only be allocated subject to shareholder approval at the 2024 AGM.
(B) For the 2024 financial year, this represents the number of rights vested during the reporting period under medium-term incentive rewards and the LTI 2020/23. Each right entitles the
participating Executive to acquire a fully paid ordinary share in IPL for zero consideration.
(C) For the 2024 financial year, for Mr Hayne and Dr Lusk this represents rights that were forfeited by Executives during the period under the LTI 2020/23.
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6. Non-executive Director Remuneration
IPL’s policy is to:
» remunerate Non-executive Directors by way of fees and payments which may be in the form of cash and superannuation benefits; and
» set the level of Non-executive Directors’ fees and payments to be consistent with the market and to enable the IPL Group to attract and
retain directors of an appropriate calibre.
Non-executive Directors are not remunerated by way of options, shares, performance rights, bonuses nor by incentive-based payments.
The level of fees paid to a Non-executive Director is determined by the Board after an annual review and reflects a Non-executive Director’s
time commitments and responsibilities.
In FY24, Non-executive Directors received a fee for being a director of the Board and Non-executive Directors, other than the Chair of the
Board, received additional fees for either chairing or being a member of a Board Committee.
Fees paid to Non-executive Directors amounted to $1,479,000 which was within the $2,000,000 maximum aggregate fee pool approved
by shareholders at the 2008 Annual General Meeting. For the 2024 financial year, the Board determined that there would be no increase in
Non-executive Director fees.
The table below sets out the Board and Committee fees payable during FY24:
Board Fees
Chairperson
$532,500
Members
$177,500
Committee Fees
Audit and Risk Management Committee (ARMC)
Chairperson
$47,200
Members
$23,600
People and Remuneration Committee (PRC)
Chairperson
$40,000
Members
$20,000
Health, Safety, Environment and Community Committee (HSEC)
Chairperson
$40,000
Members
$17,700
Nominations Committee
Chairperson
N/A
Members
$8,250
FY25 fee structure
Following a review of Non-executive Director fees the following changes will be made to the fee structure, applicable from 1 October 2024.
A reduction in the Chair fee from $532,500 to $500,000, reflecting a commitment from the Chair at the time of appointment to review the
Chair fee.
All Directors (excluding the Chair) will receive a composite fee of $225,000 per annum, comprising a notional base fee element of $180,000
and $45,000 per year to recognise Committee memberships and participation. This approach also reflects the practice of most Directors to
attend all Committee meetings and not just those of which they are formal members. An additional fee of $25,000 per annum (ARMC) or
$20,000 (HSEC) and (PRC) will be payable to the Chair of each Committee, reflecting their additional workload and responsibilities.
The revised fee structure provides a lower overall fee payable to Greg Robinson, Bruce Brook and Tonianne Dwyer and a slightly increased
annualised fee for Michael Carroll and Fiona Hick. The aggregate fees payable to the Board in FY25 will be broadly in line with the fees
payable in FY24.
Director’s minimum shareholding requirement will be measured by reference to the notional base fee of $180,000 in line with current
practice.
A travel allowance of $5,000 per overseas trip be paid to all directors to reflect the increased time commitment of overseas trips. The total
travel allowance payable to an Australian-based director in any financial year will be capped at $10,000 per annum. The $10,000 cap will not
apply to overseas-based directors travelling regularly to Australia for Board meetings.
5. Overview of Remuneration Changes for the 2025 Financial Year
The Board continues to review the objectives of the Executive Remuneration Framework to ensure the existing framework remains
appropriate to best support the execution of our strategies to increase shareholder value, retains and motivates our key talent and ensures
alignment with our other key stakeholders.
Taking into consideration feedback from key stakeholders and our on-going business transformation program, the Board determined to
make the following changes to the Executive Remuneration Framework in FY25. Full details of the remuneration arrangements applicable
to financial year 2025 will be disclosed in the 2025 Remuneration Report.
Fixed annual remuneration
Mr Neves will receive a FAR increase of 8%, resulting in a new FAR of $1.35m, effective January 2025. The FAR increase reflects his strong
performance in the role since commencement.
Mr Hayne’s FAR increased to A$900,000 effective 1 October 2024, reflecting his new role as President, DNA. Mr Hayne is on a two-year
international assignment from Brisbane to Salt Lake City, Utah. During his assignment, IPL will also be providing Mr Hayne with relocation,
housing support and other assignment-related benefits.
Ms Tanya Rybarczyk will commence employment with IPL as President, Dyno Nobel Asia Pacific in February 2025. On commencement she
will be paid a FAR of $750,000.
No other Executive KMP received a FAR increase.
Short-Term Incentive
The FY25 STI target and maximum STI opportunity for KMP, other than the CEO & MD, will be reduced from 60% FAR (at target) and 120%
FAR (at maximum) to 50% FAR (at target) and 100% FAR (at maximum). This change reflects the increased weighting towards the LTI for
Executive KMP (120% FAR). The FY25 STI target and maximum opportunity for the CEO & MD will remain at the same level.
Under the current STI plan, a mandatory 25% STI deferral (50% STI deferral for the CEO & MD) continues until an Executive’s MSR is achieved.
Where the MSR is achieved at the time of STI payment, no further STI deferral is required. From FY25, there will be a change to the STI
deferral meaning that any Executive who has attained their MSR will continue to have the relevant portion of their STI deferred for a period
of 12 months.
Long-Term Incentive
Following the one-off grant of Options, the Board has undertaken a further review of the LTI program in light of the ongoing business
transformation program and has made the following changes to the design of the LTI program for financial year 2025.
» Reverting to a grant of Performance Rights only in respect of the LTI 2024/27, reflecting that the grant of Options under the LTI 2023/26
was a one-off award.
» Simplifying the plan structure to focus on total shareholder return to shareholders with the LTI 2024/27 to be measured on both Relative
TSR and Absolute TSR performance (50% weighting to each measure).
» The Board considers that a combination of both Relative TSR and Absolute TSR performance measures will fully align the CEO & MD and
Executive outcomes to the experience of shareholders.
» The same range of Absolute TSR performance is retained from the LTI 2023/26 grant (10% (threshold) to 25% (maximum) compound
annual growth). The vesting schedule has been simplified to provide for partial vesting at threshold performance (30% of Rights subject
to Absolute TSR) and sliding scale vesting from threshold to 100% vesting where 25% compound annual growth is achieved. It is
considered there is a significant degree of stretch performance in these targets and full vesting under the Absolute TSR component
will not occur unless there is a substantial return to shareholders over the performance period.
» The ROIC condition has been removed for the LTI 2024/27. Whilst improving ROIC will remain an important target for the Group,
the Board felt that the extent of adjustments necessary to this measure as a consequence of the material movements in the Group’s
assets over the coming period, would require considerable judgement, making this measure less transparent than Relative TSR and
Absolute TSR in the short term. Further, the Board believes that improved ROIC will be needed to achieve the Absolute TSR targets. The
Board will consider the reintroduction of a ROIC component to the LTI program following the completion of the disposal of the business
and assets of the Australian Fertilisers business.
Minimum Shareholding Requirements
Following a review, the Board determined that the MSR for the CEO & MD be increased to 200% FAR (formerly 100% FAR for the previous
CEO & MD) following his appointment. In addition, from 1 October 2024, the MSR for other Executives will be increased from 50% to
100% FAR.
Non-executive Director fees
Refer to Section 6 for further details of the revised fee structure applicable from 1 October 2024.
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Table 11 – Movements in rights in the Company
IPL’s Non-executive Director Fee Sacrifice Plan (the Plan) commenced in 2019. The next tranche of rights is scheduled to vest in November
2024. These rights, as well as those that subsequently convert to shares, combine to form part of the Non-executive Director’s holding for
the purpose of calculating compliance with their MSR obligation.
The movement during the reporting period in the number of rights for each Non-executive Director, including their related parties, is set
out in the table below:
Number of Rights (A)
Opening balance
Rights acquired
Vested (B)
Closing balance
G Robinson
5,461
34,497
(11,207)
28,751
B Brook
5,461
12,136
(11,207)
6,390
M Carroll
–
–
–
–
T Dwyer
5,461
12,135
(11,207)
6,389
F Hick
–
–
–
–
J Ho
–
–
–
–
Non-executive Directors –- Former
B Kruger
16,383
–
(16,383)
–
(A) Includes movements of rights acquired under the Plan.
(B) For the 2024 financial year, this represents the number of rights vested during the reporting period under the Plan.
Table 12 – Movements in shares in the Company
The movement during the reporting period in the number of shares in the Company held directly, indirectly or beneficially, by each KMP,
including their related parties, is set out in the table below:
Number of Shares(A)
Opening balance
Shares acquired
Shares disposed
Closing balance(B)
% minimum
shareholding achieved(C)
Non-executive Directors – Current
G Robinson(1)
71,886
11,207
–
83,093
65%
B Brook
88,857
11,207
–
100,064
185%
M Carroll
58,758
–
–
58,758
102%
T Dwyer
26,319
11,207
–
37,526
76%
F Hick(2)
–
–
–
–
–
J Ho(3)
173,065,979
–
–
173,065,979
N/A
Non-executive Directors – Former
B Kruger(4)
200,251
16,383
–
216,634
126%
G Biltz
100,000
–
–
100,000
174%
X Liu(5)
77,612
–
–
77,612
135%
Executives – Current
M Neves
–
–
–
–
–
P Victor
43,473
90,679
–
134,152
89%
G Hayne
227,934
224,474
–
452,408
352%
B Lusk(6)
84,763
288,665
(102,372)
271,056
254%
S Bowman
–
–
–
–
–
(A) Includes fully paid ordinary shares and shares acquired under IPL’s incentive plans. Details of these plans are set out in note 19, Share-based payments.
(B) Where a director or an Executive has ceased to be a KMP during the reporting year, the balance stated in this column represents the number of shares held as at the date the Director or Executive
ceased to be a KMP.
(C) MSR is calculated based on the 20 day VWAP up until and including the 30th of September 2024. For Non-executive Directors the total number of shares and unvested rights granted under the
NED Share Plan is counted towards the MSR. For Executive KMP, other than the CEO & MD, the % of minimum shareholding received is shown as a percentage of 50% of their FAR. From 1 October
2024, the MSR for Executive KMP, other than the CEO & MD, increases to 100% of their FAR.
(1) Mr Robinson was appointed as Chair of the Board with effect from 11 November 2023. Following his fee increase as Chair, the Board determined that Mr Robinson be permitted an additional
5-year period from appointment of Chair to satisfy his increased MSR.
(2) Ms Hick was appointed as an Independent Non-executive Director with effect from 1 September 2024.
(3) Mr Ho is the founder and Chief Industrialist Investor of Janchor Partners, which has indirectly (through Janchor Partners’ investment funds) a 10.3% interest in IPL (including a relevant interest of
8.9% in IPL’s voting shares and an economic interest through cash settled equity derivatives in a further 1.4%).
(4) Mr Kruger ceased to be Chair and a Non-executive director with effect from 11 November 2023.
(5) Dr Liu ceased to be a Non-executive director with effect from 31 May 2024.
(6) The number of shares acquired by Dr Lusk during the year is the number of shares allocated as deferred shares as part of the FY23 STI (32,735) plus shares acquired following the vesting of Rights
granted under the LTI 2020/23 (255,930) less 40% withheld (102,372 shares) for the purposes of meeting US tax obligations on vesting of these rights.
8. Other KMP Disclosures
Loans to KMP
In the year ended 30 September 2024, there were no loans to key management personnel and their related parties (2023: nil).
Other KMP transactions
In the year ended 30 September 2024, there were no transactions entered into during the year with key management personnel (including
their related parties).
Table 10 – Non-executive Directors’ remuneration
Details of the Non-executive Directors’ remuneration for the financial year ended 30 September 2024 are set out in the following table:
Board and
Committee Fees
Cash allowances
and other short-
term benefits(A)
Post-employment
benefits
Other long
term benefits
Fees
Superannuation
benefits
Total
Year
$000
$000
$000
$000
$000
Non-executive Directors – Current
G Robinson(1)
2024
472
–
28
–
500
2023
226
–
24
–
250
B Brook
2024
240
13
253
2023
241
–
12
–
253
M Carroll(2)
2024
176
–
20
–
196
2023
100
–
11
–
111
T Dwyer
2024
221
25
246
2023
200
–
21
–
221
F Hick(3)
2024
15
–
2
–
17
2023
–
–
–
–
–
J Ho(4)
2024
–
–
–
–
–
2023
–
–
–
–
–
Non-executive Directors –- Former
G Biltz(5)
2024
43
5
–
–
48
2023
195
20
–
-
215
B Kruger, Chair(6)
2024
54
–
7
–
61
2023
508
–
25
–
533
X Liu(7)
2024
158
–
–
–
158
2023
237
–
–
–
237
Total Non-executive Directors
2024
1,379
5
95
–
1,479
2023
1,707
20
93
–
1,820
(A) Cash allowances and other short-term benefits include travel allowances.
(1) Mr Robinson was appointed as Chair of the Board with effect from 11 November 2023.
(2) Mr Carroll was appointed as an Independent Non-executive Director with effect from 6 March 2023.
(3) Ms Hick was appointed as an Independent Non-executive Director with effect from 1 September 2024.
(4) Mr Ho has elected to waive his entitlement to the receipt of Non-executive Director fees from IPL.
(5) Mr Biltz ceased to be a Non-executive Director with effect from 20 December 2023.
(6) Mr Kruger ceased to be Chair and a Non-executive Director with effect from 11 November 2023.
(7) Dr Liu ceased to be a Non-executive Director with effect from 31 May 2024.
7. Shareholdings in IPL
The Board considers that an important element of the Executive remuneration framework is that each Executive and Non-executive Director
accumulate and hold a significant number of IPL shares to align their interests as long term investors.
Executives
Executive KMP are required to attain and maintain a MSR to better align Executive and Shareholder interests. It requires the CEO & MD to
hold the equivalent of 200% of Fixed Annual Remuneration (FAR) in IPL shares. This must be achieved within 5-years. Other Executive KMP
must hold the equivalent of 50% of FAR in IPL shares (increasing to 100% of FAR effective 1 October 2024).
Non-executive Directors
The MSR for Non-executive Directors aligns Director and Shareholder interests. The MSR requires each Director to hold the equivalent of
100% of their base Board fee in IPL shares and/or rights to shares (that have been fully sacrificed for under IPL’s Non-executive Director Fee
Sacrifice Plan) at the completion of 5-years of service.
At 30 September 2024 all Directors had achieved, or were on track to achieve, their MSR obligation within the required timeframe.
FINANCIAL REPORT
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Incitec Pivot Limited Annual Report 2024
AUDITOR’S INDEPENDENCE DECLARATION
82
Incitec Pivot Limited Annual Report 2024
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Content and Structure of the Financial Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Consolidated Statement of Profit or
Loss and Other Comprehensive Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Consolidated Statement of Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Consolidated Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Consolidated Statement of Changes in Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Notes to the Consolidated Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Consolidated Entity Disclosure Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Directors’ Declaration on the Consolidated
Financial Statements set out on pages 83 to 124 . . . . . . . . . . . . . . . . . . . . . . . . 125
Independent Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Financial Report
Contents
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific and the Deloitte organisation.
Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060
477 Collins Street
Melbourne VIC 3000
Tel: +61 3 9671 7000
www.deloitte.com.au
11 November 2024
The Board of Directors
Incitec Pivot Limited
Level 8, 28 Freshwater Place
Southbank Victoria 3006
Dear Board Members
Auditor’s Independence Declaration to Incitec Pivot Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Incitec Pivot Limited.
As lead audit partner for the audit of the financial statements of Incitec Pivot Limited for the financial year ended
30 September 2024, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours sincerely
DELOITTE TOUCHE TOHMATSU
Suzana Vlahovic
Partner
Chartered Accountants
FINANCIAL REPORT
FINANCIAL REPORT
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Incitec Pivot Limited Annual Report 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 September 2024
Notes
2024 $mill
2023 $mill
Continuing operations
Revenue
(2)
5,278.5
5,403.5
Financial and other income
(2)
136.0
67.5
Share of profit of equity accounted investments
(15)
62.2
61.4
Operating expenses
Changes in inventories of finished goods and work in progress
(75.7)
(155.7)
Raw materials and consumables used and finished goods purchased for resale
(2,603.6)
(2,773.3)
Employee expenses
(962.2)
(889.4)
Depreciation and amortisation
(2)
(345.0)
(324.7)
Financial expenses
(2)
(161.1)
(156.4)
Purchased services
(266.7)
(258.7)
Repairs and maintenance
(226.9)
(214.2)
Outgoing freight
(343.5)
(331.7)
Lease expenses
(33.8)
(34.0)
Asset impairment and site exit costs
(1,072.7)
(4.9)
Other expenses
(73.2)
(72.0)
(Loss)/profit before income tax
(687.7)
317.4
Income tax benefit/(expense)
(3)
209.1
(40.9)
(Loss)/profit for the year from continuing operations
(478.6)
276.5
Discontinued operations
Profit for the period from discontinued operations
43.0
283.3
Gain on disposal of discontinued operations
123.8
–
Profit for the year from discontinued operations
(14)
166.8
283.3
(Loss)/profit for the year
(311.8)
559.8
Other comprehensive income/(loss), net of income tax
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit plans
(21)
2.1
(1.7)
Gross fair value gains on assets at fair value through other comprehensive income
0.3
–
Income tax relating to items that will not be reclassified subsequently to profit or loss
(0.6)
0.3
1.8
(1.4)
Items that may be reclassified subsequently to profit or loss
Continuing operations
Fair value gains on cash flow hedges
(18)
6.1
16.2
Cash flow hedge losses transferred to profit or loss
(18)
11.1
62.1
Exchange differences on translating foreign operations
(206.9)
34.3
Net gains/(losses) on hedge of net investment
(18)
55.4
(9.7)
Income tax relating to items that may be reclassified subsequently to profit or loss
0.7
(22.6)
Continuing operations other comprehensive (loss)/income for the year
(133.6)
80.3
Discontinued operations
Exchange differences on translating foreign operations
(48.2)
19.8
Foreign currency translation reserve release to profit or loss on disposal of discontinued operations
(14)
(254.1)
–
Discontinued operations other comprehensive (loss)/income for the year
(302.3)
19.8
Total other comprehensive (loss)/income for the year, net of income tax
(434.1)
98.7
Total comprehensive (loss)/income for the year
(745.9)
658.5
Introduction
This is the consolidated financial report of Incitec Pivot Limited (the Company, IPL, or Incitec Pivot) a company domiciled in Australia, and
its subsidiaries including its interests in joint ventures and associates (collectively referred to as the Group) for the financial year ended 30
September 2024.
Content and Structure of the Financial Report
The notes to the financial statements and the related accounting policies are grouped into the following distinct sections in the 2024 financial
report. The accounting policies have been consistently applied to all years presented, unless otherwise stated.
Section
Description
Financial performance
Provides detail on the Group’s Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated
Statement of Financial Position that are most relevant in forming an understanding of the Group’s financial performance for
the year.
Shareholder returns
Provides information on the performance of the Group in generating shareholder returns.
Capital structure
Provides information about the Group’s capital and funding structures.
Capital investment
Provides information on the Group’s investment in tangible and intangible assets, and the Group’s future capital commitments.
Risk management
Provides information about the Group’s risk exposures, risk management practices, provisions and contingent liabilities.
Other
Provides information on items that require disclosure to comply with Australian Accounting Standards and the requirements
under the Corporations Act 2001.
Information is included in the notes to the financial report only to the extent it is considered material and relevant to the understanding of
the financial report. A disclosure is considered material and relevant if, for example:
» the dollar amount is material in size (quantitative factor)
» the item is material by nature (qualitative factor)
» the Group’s result cannot be understood without the specific disclosure (qualitative factor)
» it relates to an aspect of the Group’s operations that is important to its future performance.
FINANCIAL REPORT
FINANCIAL REPORT
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Incitec Pivot Limited Annual Report 2024
Consolidated Statement of Financial Position
As at 30 September 2024
Notes
2024 $mill
2023 $mill
Current assets
Cash and cash equivalents
(8)
1,068.9
399.4
Trade and other receivables
(4)
647.1
570.1
Inventories
(4)
785.3
817.4
Other assets
98.6
80.2
Other financial assets
(18)
2.4
5.6
Current tax asset
70.0
117.6
Assets classified as held for sale
(14)
–
2,262.9
Total current assets
2,672.3
4,253.2
Non-current assets
Trade and other receivables
(4)
23.0
27.8
Other assets
34.2
21.8
Other financial assets
(18)
3.3
11.3
Equity accounted investments
(15)
417.9
404.8
Property, plant and equipment
(9)
2,435.9
3,182.7
Right-of-use lease assets
(10)
243.4
209.3
Intangible assets
(11)
2,545.7
2,394.4
Deferred tax assets
(3)
6.7
9.7
Exploration and evaluation assets
16.0
30.3
Total non-current assets
5,726.1
6,292.1
Total assets
8,398.4
10,545.3
Current liabilities
Trade and other payables
(4)
883.0
1,059.3
Lease liabilities
(10)
48.9
41.3
Interest bearing liabilities
(8)
19.5
21.1
Other financial liabilities
(18)
2.2
9.7
Provisions
(17)
140.0
108.8
Current tax liabilities
238.3
11.6
Liabilities classified as held for sale
(14)
–
55.6
Total current liabilities
1,331.9
1,307.4
Non-current liabilities
Trade and other payables
(4)
12.4
10.8
Lease liabilities
(10)
222.4
193.4
Interest bearing liabilities
(8)
1,664.6
1,710.6
Other financial liabilities
(18)
39.7
87.1
Provisions
(17)
155.9
132.7
Deferred tax liabilities
(3)
108.4
657.8
Retirement benefit obligation
(21)
18.2
18.8
Total non-current liabilities
2,221.6
2,811.2
Total liabilities
3,553.5
4,118.6
Net assets
4,844.9
6,426.7
Equity
Issued capital
(7)
3,354.7
3,806.2
Reserves
(297.1)
144.7
Retained earnings
1,788.3
2,475.9
Non-controlling interest
(1.0)
(0.1)
Total equity
4,844.9
6,426.7
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 September 2024
Notes
2024 $mill
2023 $mill
(Loss)/profit attributable to:
Members of Incitec Pivot Limited from continuing operations
(477.7)
276.7
Members of Incitec Pivot Limited from discontinued operations
166.8
283.3
Non-controlling interest
(0.9)
(0.2)
(Loss)/profit for the year
(311.8)
559.8
Total comprehensive (loss)/income attributable to:
Members of Incitec Pivot Limited from continuing operations
(609.6)
355.6
Members of Incitec Pivot Limited from discontinued operations
(135.4)
303.1
Non-controlling interest
(0.9)
(0.2)
Total comprehensive (loss)/income for the year
(745.9)
658.5
Earnings per share
Basic (cents per share)
(5)
(16.1)
28.8
Diluted (cents per share)
(5)
(16.1)
28.8
Earnings per share from continuing operations
Basic (cents per share)
(5)
(24.7)
14.2
Diluted (cents per share)
(5)
(24.7)
14.2
FINANCIAL REPORT
FINANCIAL REPORT
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Incitec Pivot Limited Annual Report 2024
Consolidated Statement of Changes in Equity
For the year ended 30 September 2024
Notes
Issued
capital
$mill
Cash
flow
hedging
reserve
$mill
Share-
based
payments
reserve
$mill
Foreign
currency
translation
reserve
$mill
Fair
value
reserve
$mill
Retained
earnings
$mill
Non-
controlling
interest
$mill
Total
equity
$mill
Balance at 1 October 2022
3,806.2
(76.4)
23.4
114.4
(19.7)
2,441.7
0.1
6,289.7
Profit for the year
–
–
–
–
–
560.0
(0.2)
559.8
Total other comprehensive income for the year
–
54.5
–
45.6
–
(1.4)
–
98.7
Dividends paid
(6)
–
–
–
–
–
(524.4)
–
(524.4)
Share-based payment transactions
(19)
–
–
2.9
–
–
–
–
2.9
Balance at 30 September 2023
3,806.2
(21.9)
26.3
160.0
(19.7)
2,475.9
(0.1)
6,426.7
Balance at 1 October 2023
3,806.2
(21.9)
26.3
160.0
(19.7)
2,475.9
(0.1)
6,426.7
Loss for the year
–
–
–
–
–
(310.9)
(0.9)
(311.8)
Total other comprehensive loss for the year
–
12.0
–
(447.9)
0.3
1.5
–
(434.1)
Dividends paid
(6)
–
–
–
–
–
(378.2)
–
(378.2)
Capital returned to members of Incitec Pivot Limited
(7)
(302.5)
–
–
–
–
–
–
(302.5)
Share buyback
(7)
(149.0)
–
–
–
–
–
–
(149.0)
Settlement for IPL employees entitlement
–
–
(4.5)
–
–
–
–
(4.5)
Purchased shares for IPL employees
_
_
(5.5)
_
_
_
_
(5.5)
Share-based payment transactions
(19)
–
–
3.8
–
–
–
–
3.8
Balance at 30 September 2024
3,354.7
(9.9)
20.1
(287.9)
(19.4)
1,788.3
(1.0)
4,844.9
Cash flow hedging reserve
This reserve comprises the cumulative net change in the fair value of the effective portion of cash flow hedging instruments related
to hedged transactions that have not yet occurred.
Share-based payments reserve
This reserve comprises the fair value of rights recognised as an employee expense under the terms of the Long Term Incentive Plans.
Foreign currency translation reserve
Exchange differences arising on translation of foreign controlled operations are taken to the foreign currency translation reserve.
The relevant portion of the reserve is recognised in the profit or loss when the foreign operation is disposed of.
The foreign currency translation reserve is also used to record gains and losses on hedges of net investments in foreign operations.
Fair value reserve
This reserve represents the cumulative net change in the fair value of equity instruments. The annual net change in the fair value of
investments in equity securities (including both realised and unrealised gains and losses) is recognised in other comprehensive income.
Non-controlling interest
This represents equity interest outside the Incitec Pivot Limited Group. Refer to Note 16 for the list of subsidiaries that are not 100%
owned by the Group.
Consolidated Statement of Cash Flows
For the year ended 30 September 2024
Notes
2024 $mill
2023 $mill
Cash flows from operating activities
Inflows
(Outflows)
Inflows
(Outflows)
(Loss)/Profit after tax for the year
(311.8)
559.8
Adjusted for non-cash items
Net finance cost
104.4
148.7
Depreciation and amortisation
(2)
345.0
335.6
Asset impairment and site exit costs
1,072.7
4.9
Gain on sale of discontinued operations before tax
(14)
(356.4)
–
Share of profit on equity accounted investments
(15)
(62.2)
(61.4)
Net gain on sale of property, plant and equipment
(2)
(14.7)
(11.5)
Non-cash share-based payment transactions
(19)
3.8
2.9
Income tax expense
(3)
38.6
140.5
Changes in assets and liabilities
(Increase)/decrease in receivables and other operating assets
(133.2)
178.6
(Increase)/decrease in inventories
(2.1)
169.4
Decrease in payables, provisions and other operating liabilities
(217.0)
(365.1)
467.1
1,102.4
Adjusted for cash items
Dividends received
(15)
32.8
37.7
Interest received
57.5
8.5
Interest paid
(140.6)
(133.9)
Income tax paid
(122.1)
(313.9)
Settlement for IPL employees entitlement
(4.5)
–
Net cash flows from operating activities
290.2
700.8
Cash flows from investing activities
Payments for property, plant and equipment and intangibles
(378.7)
(495.1)
Proceeds from sale of property, plant and equipment
30.4
13.3
Proceeds from sale of discontinued operations, net of transaction costs and tax(1)
1,639.7
–
Payments for acquisition of subsidiaries and non-controlling interests and equity investments
(4.3)
–
Net cash flows from investing activities
1,287.1
(481.8)
Cash flows from financing activities
Repayments of borrowings
(8)
(8.1)
(9.7)
Proceeds from borrowings
(8)
0.8
–
Dividends paid to members of Incitec Pivot Limited
(6)
(378.2)
(524.4)
Lease liability payments
(53.0)
(50.5)
Purchased shares for IPL employees
(5.5)
–
Share buyback
(140.6)
–
Capital returned to members of Incitec Pivot Limited
(302.5)
–
Net cash flows from financing activities
(887.1)
(584.6)
Net increase/(decrease) in cash and cash equivalents held
690.2
(365.6)
Cash and cash equivalents at the beginning of the year
399.4
763.5
Effect of exchange rate fluctuations on cash and cash equivalents held
(20.7)
1.5
Cash and cash equivalents at the end of the year
(8)
1,068.9
399.4
(1) Includes $156.8m tax paid on the sale of discontinued operations.
The above Consolidated Statement of Cash Flows includes cash flows from both continuing and discontinued operations. Refer to note 14
for the cash flows relating to discontinued operations.
FINANCIAL REPORT
FINANCIAL REPORT
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Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: BASIS OF PREPARATION
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Basis of preparation and consolidation
The consolidated financial statements of the Group have been
prepared under the historical cost convention, except for certain
financial instruments that have been measured at fair value.
The financial results and financial position of the Group are
expressed in Australian dollars, which is the functional currency
of the Company and the presentation currency for the consolidated
financial statements. Where applicable, comparative disclosures
have been reclassified for consistency with the current period
if material.
As a result of the Waggaman sale agreement, the assets and
liabilities directly attributable to Waggaman were classified as
held for sale at 30 September 2023. The earnings attributable to
Waggaman for the period under IPL ownership and the resultant
gain on sale have been presented as discontinued operations.
Refer to note 14 of the financial statements for the earnings,
cash flow and balance sheet of the Waggaman operations.
The capitalised expenditure on activities relating to Exploration
and Evaluation of mineral resources have been separately disclosed
in the financial statements as a Non-Current Asset for the financial
year ended 30 September 2024.
The balances attributable to these activities were previously
included in Non-Current Other Assets and Property, Plant and
Equipment. The Group’s accounting policy pertaining to costs for
exploration for and evaluation of mineral resources is to capitalise
the expenditure, to the extent that the costs are expected to be
recouped through successful development and exploitation of the
area of interest, or alternatively, by its sale. The September 2023
balances have also been reclassified in the financial year 2024
financial statements.
The consolidated financial statements were authorised for issue
by the directors on 11 November 2024.
Subsidiaries
Subsidiaries are entities that are controlled by the Group.
The financial results and financial position of the subsidiaries
are included in the consolidated financial statements from
the date control commences until the date control ceases.
A list of the Group’s subsidiaries is included in note 16.
Joint arrangements and associates
A joint venture is an arrangement where the parties have rights
to the net assets of the venture.
A joint operation is an arrangement where the parties each have
rights to the assets and liabilities relating to the arrangement.
Associates are those entities in respect of which the Group has
significant influence, but not control, over the financial and
operating policies of the entities.
Investments in joint ventures and associates are accounted for
using the equity method. They are initially recognised at cost,
and subsequent to initial recognition, the consolidated financial
statements include the Group’s share of the profit or loss and
other comprehensive income of the investees.
The interests in joint operations are brought to account recognising
the Group’s share of jointly controlled assets, liabilities, expenses,
and income from the joint operation.
A list of the Group’s joint arrangements and associates is included
in note 16.
Statement of compliance
The consolidated financial statements are general purpose
financial statements which have been prepared in accordance
with Australian Accounting Standards (including Australian
Interpretations) and the Corporations Act 2001. The consolidated
financial statements of the Group comply with International
Financial Reporting Standards (IFRS) and interpretations.
The Company is a for-profit entity.
Key estimates and judgements
Key accounting estimates and judgements are continually
evaluated and are based on historical experience and other
factors, including expectation of future events that may have
a financial impact on the Group and that are believed to be
reasonable under the circumstances.
The resulting accounting estimates will, by definition, seldom
equal the subsequent related actual result. The estimates and
judgements that have a significant risk of causing a material
adjustment to the carrying amounts of the assets and liabilities
within the next financial year are set out in the notes.
Rounding of amounts
The Company is of a kind referred to in ASIC Legislative Instrument,
ASIC Corporations (Rounding in Financial/ Directors’ Reports)
Instrument 2016/191, issued by the Australian Securities and
Investments Commission dated 24 March 2016 and, in accordance
with that Legislative Instrument, the amounts shown in this report
and in the financial statements have been rounded, except where
otherwise stated, to the nearest one hundred thousand dollars.
Structural Separation
On 10 July 2024, IPL announced that it had ceased previous
negotiations for the sale of its Fertilisers business.
IPL continues to manage Dyno Nobel and Incitec Pivot Fertilisers
separately, while options are assessed for the structural separation
of the two businesses.
There has been no impact on the financial statements for FY24
other than the costs incurred to date which have been classified
as an individually material item and disclosed in the note 2 to
the financial statements.
Accounting standards issued
The Group adopted any amendments to Standards and
Interpretations issued by the Australian Accounting Standards
Board (AASB) that are relevant to its operations and effective
for the current year. The adoption of these revised Standards
and Interpretations did not have a material impact on the
Group’s result.
Certain new accounting Standards and Interpretations have
been issued that are not mandatory for the 30 September 2024
reporting period and have not been early adopted by the Group.
These Standards and Interpretations are not expected to have a
material impact on the Group in the current or future reporting
periods or on foreseeable future transactions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Basis of preparation and consolidation
91
Financial performance
1 Segment report
92
2 Revenue and expenses
94
3 Taxation
95
4 Trade and other receivables and payables
97
Shareholder returns
5 Earnings per share
98
6 Dividends
98
Capital structure
7 Capital management
99
8 Net debt
99
Capital investment
9 Property, plant and equipment
101
10 Leases
102
11 Intangibles
103
12 Impairment of goodwill and non-current assets
104
13 Commitments
106
14 Discontinued operations
106
15 Equity accounted investments
107
16 Investments in subsidiaries, joint arrangements and associates
108
Risk management
17 Provisions and contingencies
110
18 Financial risk management
111
Other
19 Share-based payments
119
20 Key management personnel disclosures
119
21 Retirement benefit obligation
120
22 Deed of cross guarantee
121
23 Parent entity disclosure
121
24 Auditor’s remuneration
122
25 Events subsequent to reporting date
122
Consolidated Entity Disclosure Statement
123
FINANCIAL REPORT
FINANCIAL REPORT
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93
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Asia Pacific
Americas
30 September 2023
Notes
Fertilisers
APAC
$mill
DNAP
$mill
APAC
Elim
$mill
Total
$mill
DNA
$mill
Group
Elim
$mill
Corporate(i)
$mill
Total
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
Revenue from external customers
(2)
2,203.4
1,500.6 (22.2)
3,681.8
1,776.2
(54.5)
–
5,403.5
604.6
6,008.1
Share of profit of equity accounted
investments
(15)
–
15.5
–
15.5
45.9
–
–
61.4
–
61.4
EBITDA(ii)
255.3
289.1
–
544.4
307.4
0.1
(43.9)
808.0
407.4
1,215.4
Depreciation and amortisation
(2)
(102.1)
(100.8)
–
(202.9)
(116.1)
0.5
(6.2)
(324.7)
(10.9)
(335.6)
EBIT
(iii)
153.2
188.3
–
341.5
191.3
0.6
(50.1)
483.3
396.5
879.8
Net interest expense
(148.7)
Income tax expense (excluding IMIs)
(149.2)
Profit after tax(iv)
581.9
Non-controlling interest
0.2
Individually material items (net of tax)
(2)
(22.1)
Profit attributable to members of IPL
560.0
Segment assets
1,756.8
2,856.3
–
4,613.1
3,047.6
–
612.0
8,272,7
2,262.9
10,535.6
Segment liabilities
(678.3)
(355.1)
–
(1,033.4)
(726.1)
–
(1,634.5)
(3,394.0)
(66.8)
(3,460.8)
Net segment assets(v)
1,078.5
2,501.2
–
3,579.7
2,321.5
–
(1,022.5)
4,878.7
2,196.1
7,074.8
Deferred tax balances
(3)
(648.1)
Net assets
6,426.7
(i)
Corporate assets and liabilities include the Group’s interest bearing liabilities and derivative assets and liabilities.
(ii) Earnings Before Interest, related income tax expense, depreciation and amortisation and individually material items.
(iii) Earnings Before Interest, related income tax expense and individually material items.
(iv) Profit after tax (excluding individually material items).
(v) Net segment assets exclude deferred tax balances.
Geographical information – secondary reporting segments
The Group operates in two principal countries being Australia and the US.
In presenting information on the basis of geographical information, revenue is based on the geographical location of the entity making
the sale. Assets are based on the geographical location of the assets.
30 September 2024
Australia
$mill
US
$mill
Other/Elim
$mill
Continuing
Operations
$mill
Discontinued
Operations (US)
$mill
Consolidated
Group
$mill
Revenue from external customers
3,263.7
1,337.4
677.4
5,278.5
86.4
5,364.9
30 September 2023
Revenue from external customers
3,345.8
1,388.6
669.1
5,403.5
604.6
6,008.1
30 September 2024
Australia
$mill
US
$mill
Other/Elim
$mill
Consolidated
Group
$mill
Non-current assets other than financial assets and
deferred tax assets
2,771.1
2,514.3
430.7
5,716.1
Trade and other receivables
355.3
132.6
182.2
670.1
30 September 2023
Non-current assets other than financial assets and
deferred tax assets
3,542.0
2,279.0
450.1
6,271.1
Trade and other receivables
261.6
151.2
185.1
597.9
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1. Segment report
The Group operates a number of strategic divisions that offer different products and services and operate in different markets. For reporting
purposes, these divisions are known as reportable segments. The results of each segment are reviewed monthly by the executive management
team (the chief operating decision makers) to assess performance and make decisions about the allocation of resources.
Description of reportable segments
Asia Pacific
Fertilisers Asia Pacific (Fertilisers APAC): manufactures and sells fertilisers in Eastern Australia and the export market. It also manufactures,
imports and sells industrial chemicals to the agricultural sector and other specialist industries.
Dyno Nobel Asia Pacific (DNAP): manufactures and sells industrial explosives and related products and services to the mining industry
mainly in the Asia Pacific region, Turkey and France.
Asia Pacific Eliminations (APAC Elim): represent elimination of sales and profit in stock arising from Fertilisers APAC sales to DNAP.
Americas
Dyno Nobel Americas (DNA): manufactures and sells industrial explosives and related products and services to the mining, quarrying
and construction industries in the Americas (Canada, Mexico and Chile) and initiating systems to businesses in Australia, Turkey and
South Africa. It also manufactures and sells industrial chemicals to the agricultural sector and other specialist industries.
Group eliminations/Corporate
Group Eliminations (Group Elim): represent elimination of sales and profit in stock arising from intersegment sales.
Corporate costs include all head office expenses that cannot be directly or reasonably attributed to the operation of any of the
Group’s businesses.
Reportable segments – financial information
Asia Pacific
Americas
30 September 2024
Notes
Fertilisers
APAC
$mill
DNAP
$mill
APAC
Elim
$mill
Total
$mill
DNA
$mill
Group
Elim
$mill
Corporate(i)
$mill
Total
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
Revenue from external customers
(2)
2,098.0 1,478.4 (13.6)
3,562.8 1,760.7 (45.0)
–
5,278.5
86.4
5,364.9
Share of profit of equity accounted
investments
(15)
–
19.5
–
19.5
42.7
–
–
62.2
–
62.2
EBITDA(ii)
205.9
359.6
–
565.5
354.0
(1.3)
(52.1)
866.1
58.7
924.8
Depreciation and amortisation
(2)
(86.1)
(102.9)
–
(189.0)
(150.7)
0.7
(6.0)
(345.0)
–
(345.0)
EBIT
(iii)
119.8
256.7
–
376.5
203.3
(0.6)
(58.1)
521.1
58.7
579.8
Net interest expense
(104.4)
Income tax expense (excluding IMIs)
(75.5)
Profit after tax(iv)
399.9
Non-controlling interest
0.9
Individually material items (net of tax)
(2)
(711.7)
Loss attributable to members of IPL
(310.9)
Segment assets
1,033.4
2,897.5
–
3,930.9
3,230.6
–
1,230.2
8,391.7
–
8,391.7
Segment liabilities
(619.1)
(321.3)
–
(940.4) (1,002.1)
–
(1,502.6)
(3,445.1)
–
(3,445.1)
Net segment assets(v)
414.3
2,576.2
–
2,990.5
2,228.5
–
(272.4)
4,946.6
–
4,946.6
Deferred tax balances
(3)
(101.7)
Net assets
4,844.9
(i)
Corporate assets and liabilities include the Group’s interest bearing liabilities and derivative assets and liabilities.
(ii) Earnings Before Interest, related income tax expense, depreciation and amortisation and individually material items.
(iii) Earnings Before Interest, related income tax expense and individually material items.
(iv) Profit after tax (excluding individually material items).
(v) Net segment assets exclude deferred tax balances.
FINANCIAL REPORT
FINANCIAL REPORT
94
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95
Incitec Pivot Limited Annual Report 2024
3. Taxation
Income tax expense for the year
2024
2023
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
Current tax expense/(benefit)
61.2
511.8
573.0
(39.3)
103.1
63.8
Deferred tax (benefit)/expense
(270.3)
(264.1)
(534.4)
80.2
(3.5)
76.7
Total income tax (benefit)/expense
(209.1)
247.7
38.6
40.9
99.6
140.5
Income tax reconciliation to prima facie tax payable
2024
2023
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
Continuing
Operations
$mill
Discontinued
Operations
$mill
Consolidated
Group
$mill
(Loss)/profit before income tax
(687.7)
414.5
(273.2)
317.4
382.9
700.3
Tax at the Australian tax rate of 30% (2023: 30%)
(206.3)
124.4
(81.9)
95.2
114.9
210.1
Tax effect of amounts which are not deductible/
(taxable) in calculating taxable income:
Joint venture income
(13.5)
–
(13.5)
(14.3)
–
(14.3)
Sundry items
(8.6)
(32.6)
(41.2)
(17.0)
–
(17.0)
Reversal of deferred tax liabilities
(24.6)
–
(24.6)
–
–
–
Goodwill impairment
57.9
237.2
295.1
–
–
–
Non assessable gains
–
(68.5)
(68.5)
–
–
–
Difference in overseas tax rates
(14.0)
(12.8)
(26.8)
(23.0)
(15.3)
(38.3)
Total income tax (benefit)/expense
(209.1)
247.7
38.6
40.9
99.6
140.5
Tax amounts recognised directly in equity
The aggregate current and deferred tax arising in the financial year and not recognised in net profit or loss but directly charged to equity
is a credit of $0.1m for the year ended 30 September 2024 (2023: debit of $22.3m).
Net deferred tax assets/(liabilities)
Deferred tax balances comprise temporary differences attributable to the following:
2024
$mill
2023
$mill
Employee entitlements provision
26.8
19.1
Retirement benefit obligations
3.5
4.2
Provisions and accruals
85.9
74.3
Lease liabilities
72.8
64.7
Tax losses
6.6
29.2
Property, plant and equipment
(163.4)
(671.2)
Right-of-use lease assets
(68.1)
(61.0)
Intangible assets
(86.7)
(93.1)
Joint venture income
(18.1)
(17.5)
Inventories impairment
10.6
5.4
Share based payments
7.9
9.3
Foreign exchange movement
7.0
(5.3)
Other
13.5
(6.2)
Net deferred tax liabilities
(101.7)
(648.1)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Goods and services tax
Revenues, expenses, assets and liabilities (other than receivables
and payables) are recognised net of the amount of goods and
services tax (GST). The only exception is where the amount of GST
incurred is not recoverable from the relevant taxation authorities.
In these circumstances, the GST is recognised as part of the cost of
the asset or as part of the item of expenditure.
Other income
Other income represents gains that are not revenue. This includes
royalty income and management fees from the Group’s joint
ventures and associates, income from contractual arrangements
that are not considered external sales and government grants.
During 2023, IPL received Government grants of $6.2m to fund the
increased production of AdBlue at the Gibson Island facility given
the shortage in the domestic market. Grant income was recognised
as a deduction from the related expense with any excess income
reported as other income.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2. Revenue and expenses
Notes
2024
$mill
2023
$mill
Revenue
External sales from continuing operations
5,278.5
5,403.5
External sales from discontinued operations
86.4
604.6
Total revenue
5,364.9
6,008.1
Financial income
Interest income
57.3
8.5
Other income
Royalty income and management fees
(15)
38.7
37.0
Net gain on sale of property, plant and
equipment
14.7
11.5
Government grant income
–
7.4
Other income from continuing operations
25.3
3.1
Total financial and other income from
continuing operations
136.0
67.5
Other income from discontinued operations
–
0.2
Expenses
Profit before income tax includes the following specific expenses:
Notes
2024
$mill
2023
$mill
Depreciation and amortisation continuing operations
Depreciation
property, plant and equipment
(9)
261.5
251.8
leases
(10)
54.6
52.4
Amortisation
(11)
28.9
20.5
Total depreciation and amortisation
345.0
324.7
Depreciation and amortisation discontinued operations
Depreciation
property, plant and equipment
(9)
–
10.7
leases
(10)
–
0.1
Amortisation
(11)
–
0.1
Total depreciation and amortisation
(14)
–
10.9
Asset impairment and site exit costs
property, plant and equipment
(9)
793.9
4.9
intangible assets
(11)
197.2
–
inventories
32.7
–
exploration and evaluation assets
18.0
–
site exit costs
30.9
–
Total asset impairment and site exit costs
1,072.7
4.9
Amounts set aside to provide for:
Impairment losses on trade and other receivables
(4)
6.7
3.6
Inventory losses and obsolescence
(4)
9.9
4.1
Employee entitlements
(17)
17.6
6.9
Environmental liabilities
(17)
21.0
5.5
Legal and other provisions
(17)
15.3
2.5
Restructuring and rationalisation costs
(17)
29.6
4.5
Research and development expense
30.2
30.6
Defined contribution superannuation expense
40.8
38.4
Defined benefit superannuation expense
(21)
1.3
7.1
Financial expenses
Interest on lease liabilities
(10)
8.6
6.1
Unwinding of discount on provisions
(17)
6.4
5.2
Net interest expense on defined benefit
obligation
(21)
1.3
1.0
Interest expenses on financial liabilities
144.8
144.1
Total financial expenses continuing operations
161.1
156.4
Interest on lease liabilities
(10)
0.1
0.3
Unwinding of discount on provisions
(17)
0.5
0.5
Total financial expenses discontinued operations
0.6
0.8
Individually material items
Profit after tax includes the following expenses whose disclosure
is relevant in explaining the financial performance of the Group:
Gross
$mill
Tax
$mill
Net
$mill
30 September 2024
Impairment and site exit costs of Australian
Fertilisers business (1)
940.9
(224.3)
716.6
Impairment of US Fertilisers business (2)
100.1
(26.0)
74.1
Fertilisers separation costs (3)
8.5
(2.5)
6.0
Gain on sale of WALA (4)
(356.4)
232.6 (123.8)
Business transformation costs (5)
31.3
(9.4)
21.9
DNAP site closure (6)
24.2
(7.3)
16.9
Total individually material items
748.6
(36.9)
711.7
30 September 2023
Fertilisers separation costs (3)
18.0
(5.4)
12.6
WALA sale transaction costs (7)
12.8
(3.3)
9.5
Total individually material items
30.8
(8.7)
22.1
(1) IPL has written down the carrying value of its Australian Fertilisers business based on a value-in-
use approach as summarised below:
a. Assets related to the Phosphate Hill operations have been impaired which is reflective of the
uncertain gas outlook on the east coast of Australia.
b. Geelong manufacturing assets have been fully impaired as a result of movements in the
global phosphate market, fluctuations in phosphate rock costs and movements in the domestic
SSP sale price.
c. Ahead of a distribution center relocation at Gibson Island, infrastructure at the distribution
centre which cannot be relocated to the new facility has also been written off.
(2) During FY24, IPL undertook a competitive sale process for the potential sale of its Fertilisers
manufacturing facility located in St Helens, Oregon, US. While the facility was not sold, the
process did indicate that the fair value of the asset was below the carrying amount. This
triggered an impairment review of the asset and a partial impairment of the asset was
recognised on a value-in-use basis.
(3) Separation costs, primarily advisor fees and IT transition costs, were incurred to optimally
position IPF for standalone operation, whether this be in preparation for sale or as a separately
managed business within the IPL Group.
(4) In December 2023, IPL completed the sale of its ammonia manufacturing facility located
in Waggaman, Louisiana, US, resulting in a gain on sale. In addition to the net proceeds
received and the disposal of net tangible assets, the gain on sale includes a non-cash, non-tax-
deductible release of goodwill and foreign currency translation reserve.
(5) In FY24, IPL initiated a business transformation project for the Dyno Nobel business. The
project has identified opportunities for innovation, collaboration, and more efficient ways of
working and is expected to deliver significant value. The one-off project costs primarily reflect
redundancy costs and advisor fees.
(6) In September 2024, IPL decided to cease manufacturing at its emulsion plant located in
Warkworth, New South Wales. The conclusion of a contract to source Ammonium Nitrate
solution to the facility resulted in the operations becoming uneconomical beyond 2024. As a
result of the decision, IPL will incur costs to demolish the plant, remediate the land, and pay
redundancies to impacted employees.
(7) Costs incurred to effect the sale of WALA operations. These costs include advisory fees, legal,
accounting and tax advice during 2023.
Key accounting policies
Revenue
Revenue is measured at the fair value of the consideration received
or receivable by the Group. Amounts disclosed as revenue are
net of returns, trade allowances and amounts collected on behalf
of third parties. Revenue is recognised for the major business
activities on the following basis:
» Sale of goods and services: revenue from the sale of goods
and services is recognised at the point in time when the
performance obligations under the customer contract are
satisfied. This is typically when control of goods or services is
transferred to the customer. The fee for the service component
is recognised separately from the sale of goods.
» Interest income is recognised as it accrues using the effective
interest method.
The Group disaggregates its revenue per reportable segment as
presented in note 1, as the revenue within each business unit is
affected by economic factors in a similar manner.
FINANCIAL REPORT
FINANCIAL REPORT
96
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97
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4. Trade and other receivables
and payables
The Group’s total trade and other receivables and payables consists
of inventory, receivables and payables balances, net of provisions
for any impairment losses.
30 September 2024
Trade
$mill
Other
$mill
Total
$mill
Inventories
785.3
–
785.3
Receivables
615.3
54.8
670.1
Payables
(558.5)
(336.9)
(895.4)
842.1
(282.1)
560.0
30 September 2023
Trade
$mill
Other
$mill
Total
$mill
Inventories
817.4
–
817.4
Receivables
538.4
59.5
597.9
Payables
(782.1)
(288.0)
(1,070.1)
573.7
(228.5)
345.2
Inventories by category:
2024
$mill
2023
$mill
Raw materials and stores
221.0
246.0
Work-in-progress
75.4
94.9
Finished goods
512.1
495.9
Provisions
(23.2)
(19.4)
Total inventory balance
785.3
817.4
Provision movement:
30 September 2024
Trade
receivables
$mill
Inventories
$mill
Carrying amount at 1 October 2023
(16.7)
(19.4)
Provisions made during the year
(6.7)
(9.9)
Provisions written back during the year
5.8
3.0
Amounts written off against provisions
2.1
2.6
Foreign exchange rate movements
1.4
0.5
Carrying amount at 30 September 2024
(14.1)
(23.2)
Trade receivables ageing and credit loss provision
Included in the following table is an age analysis of the Group’s
trade receivables, along with credit loss provisions against these
balances at 30 September:
30 September 2024
Gross
$mill
Credit loss
provision
$mill
Net
$mill
Current
584.3
(0.8)
583.5
30–90 days
29.2
(1.2)
28.0
Over 90 days
15.9
(12.1)
3.8
Total
629.4
(14.1)
615.3
30 September 2023
Gross
$mill
Credit loss
provision
$mill
Net
$mill
Current
518.1
(2.3)
515.8
30–90 days
21.4
(2.2)
19.2
Over 90 days
15.6
(12.2)
3.4
Total
555.1
(16.7)
538.4
The graph below shows the Group’s trade working capital (trade
assets and liabilities) performance over a five year period.
* Trade working capital is reported gross of debtor factoring and supply chain financing
arrangements.
Key accounting policies
Inventories
Inventories are valued at the lower of cost and net realisable value.
The cost of manufactured goods is based on a weighted average
costing method. For third party sourced goods, cost is net cost
into warehouse.
Trade and other receivables
Trade and other receivables are initially recognised at fair value
plus any directly attributable transaction costs. Subsequent to
initial measurement they are measured at amortised cost less any
provisions for expected impairment losses or actual impairment
losses. Credit losses and recoveries of items previously written
off are recognised in the profit or loss.
Where substantially all risks and rewards relating to a receivable
are transferred to a third party, the receivable is derecognised.
To manage cash inflows which are impacted by seasonality and
demand and supply variability, the Group has a nonrecourse
receivable purchasing agreement to sell certain receivables to
an unrelated entity in exchange for cash. These receivables are
derecognised upon sale as substantially all risks and rewards
associated with the receivables are passed to the purchaser.
As at 30 September 2024, there were no receivables sold under
this arrangement (2023: $117.9m).
Trade and other payables
Trade and other payables are stated at cost and represent liabilities
for goods and services provided to the Group prior to the end of
financial year, which are unpaid at the reporting date.
To manage the cash flow conversion cycle on some products
procured by the Group, and to ensure that suppliers receive
payment in a time period that suits their business model, the
Group offers some suppliers the opportunity to use supply chain
financing. The Group evaluates supplier arrangements against a
number of indicators to assess if the payable continues to have
the characteristics of a trade payable or should be classified as
borrowings. These indicators include whether the payment terms
exceed customary payment terms in the industry. At 30 September
2024, the balance of the supply chain finance program was $nil
(2023: $148.3m).
13 month rolling average trade working capital*/
Annual net revenue from continuing operations
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
27.5%
FY20
FY21
FY22
FY23
FY24
Explosives (DNA, DNAP) Fertilisers Group
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Presented in the Consolidated Statement of Financial Position as follows:
2024
$mill
2023
$mill
Deferred tax assets
6.7
9.7
Deferred tax liabilities
(108.4)
(657.8)
Net deferred tax liabilities
(101.7)
(648.1)
Movements in net deferred tax liabilities
The table below sets out movements in net deferred tax balances for the period ended 30 September:
2024
$mill
2023
$mill
Opening balance at 1 October
(648.1)
(544.9)
Credited/(debited) to the profit or loss
534.4
(76.7)
Charged to equity
0.1
(22.3)
Foreign exchange movements
11.9
(4.2)
Closing balance at 30 September
(101.7)
(648.1)
Key accounting policies
Income tax expense
Income tax expense comprises current tax (amounts payable or receivable within 12 months) and deferred tax (amounts payable or
receivable after 12 months). Tax expense is recognised in the profit or loss, unless it relates to items that have been recognised in equity
(as part of other comprehensive income). In this instance, the related tax expense is also recognised in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year. It is calculated using tax rates applicable at the reporting date,
and any adjustments to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised for all taxable temporary differences and is calculated based on the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected
to be applied when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted at the
reporting date.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the assets
can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefits will be realised.
The Group has and will continue to apply the temporary exemption in AASB 112 Income Taxes not to recognise or disclose information
about deferred tax assets and liabilities that could arise from OECD Pillar Two model rules.
Offsetting tax balances
Tax assets and liabilities are offset when the Group has a legal right to offset and intends either to settle on a net basis or to realise the asset
and settle the liability simultaneously.
Tax consolidation
For details on the Company’s tax consolidated group refer to note 23.
Key estimates and judgements
Uncertain tax matters
The Group is subject to income taxes in Australia and foreign jurisdictions and as a result, the calculation of the Group’s tax charge
involves a degree of estimation and judgement in respect of certain items. In addition, there are transactions and calculations relating
to the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for potential tax
audit issues in deferred tax liabilities based on management’s assessment of whether additional taxes may be payable and calculates
the provision in accordance with the applicable accounting standards including IFRIC 23 Uncertainty over Income Tax Treatments.
Where the final tax outcome of these matters is different from the amounts that were initially recorded, these differences impact
the current and deferred tax provisions in the period in which such determination is made.
FINANCIAL REPORT
FINANCIAL REPORT
98
Incitec Pivot Limited Annual Report 2024
99
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7. Capital management
Capital is defined as the amount subscribed by shareholders
to the Company’s ordinary shares and amounts advanced by
debt providers to any Group entity. The Group’s objectives when
managing capital are to safeguard its ability to continue as a going
concern and invest in business growth, while providing returns to
shareholders and benefits to other stakeholders.
The Group’s key strategies for maintenance of an optimal capital
structure include:
» Aiming to maintain an investment grade credit profile and the
requisite financial metrics;
» Securing access to diversified sources of debt funding with a
spread of maturity dates and sufficient undrawn committed
facility capacity;
» Optimising over the long-term, to the extent practicable,
the Group’s Weighted Average Cost of Capital (WACC), while
maintaining financial flexibility.
In order to optimise its capital structure, the Group may undertake
one or a combination of the following actions:
» change the amount of dividends paid to shareholders and/or
offer a dividend reinvestment plan with or without a discount
and/or with or without an underwriting facility
when appropriate;
» return capital or issue new shares to shareholders;
» vary discretionary capital expenditure;
» raise new debt funding or repay existing debt balances; and
» draw down additional debt or sell non-core assets to
reduce debt.
Key financial metrics
The Group uses a range of financial metrics to monitor the
efficiency of its capital structure, including EBITDA, interest cover
and Net debt/EBITDA before individually material items. Financial
metric targets are maintained inside debt covenant restrictions. At
30 September the Group’s position in relation to these metrics was:
Target range
2024
2023
Net debt/EBITDA (times) (1)
equal or less than 1.5
0.8
1.2
Interest cover (times)
equal or more than 6.0
12.5
9.9
(1) Consistent with IPL debt covenants, net debt does not include trade working capital facilities.
These ratios are impacted by a number of factors, including the
level of cash retained from operating cash flows generated by the
Group after paying all of its commitments (including dividends or
other returns of capital), movements in foreign exchange rates,
changes to market interest rates and the fair value of hedges
economically hedging the Group’s net debt.
Self-insurance
The Group also self-insures for certain insurance risks under the
Singapore Insurance Act. Under this Act, authorised general insurer,
Coltivi Insurance Pte Limited (the Group’s self-insurance company),
is required to maintain a minimum amount of capital. For the
financial year ended 30 September 2024, Coltivi Insurance Pte
Limited maintained capital in excess of the minimum requirements
prescribed under this Act.
Issued capital
Ordinary shares
Ordinary shares issued are classified as equity and are fully paid,
have no par value and carry one vote per share and the right to
dividends. Incremental costs directly attributable to the issue of
new shares are recognised as a deduction from equity, net of
any related income tax benefit.
Issued capital as at 30 September 2024 amounted to $3,354.7m
(2023: $3,806.2m) and ordinary shares of 1,892,101,721 (2023:
1,942,225,029).
Capital Returns
On 8 February 2024, the Company returned $500.0m of surplus
capital to shareholders. The cash distribution of 25.7 cents per
share is in the form of a 15.6 cents per share capital reduction,
totalling $302.4m and an unfranked special dividend of 10.2 cents
per share, totalling $197.5m.
Additionally, the Group bought back shares valued at $149.0m
as part of a planned $900.0m on-market share buyback program.
The Group remains committed to executing the remainder of the
program and has sufficient cash reserves and committed bank
facilities to complete the buyback.
8. Net debt
The Group’s net debt comprises the net of interest bearing
liabilities, cash and cash equivalents, and the fair value of derivative
instruments economically hedging the foreign exchange rate and
interest rate exposures of the Group’s interest bearing liabilities
at the reporting date. The Group’s net debt at 30 September is
analysed as follows:
Notes
2024
$mill
2023
$mill
Interest bearing liabilities
1,684.1
1,731.7
Cash and cash equivalents
(1,068.9)
(399.4)
Fair value of derivatives
(18)
36.4
82.7
Net debt
651.6
1,415.0
At 30 September 2024, the Group’s Net debt/EBITDA before
individually material items was 0.8 times (2023: 1.2 times).
Refer to note 7 for detail on the key financial metrics related
to the Group’s capital structure.
Interest bearing liabilities
The Group’s interest bearing liabilities are unsecured and expose it
to various market and liquidity risks. Details of these risks and their
mitigation are included in note 18.
The following table details the interest bearing liabilities of the
Group at 30 September:
2024
$mill
2023
$mill
Current
Loans from joint ventures
19.5
21.1
19.5
21.1
Non-current
Other non-current loans
13.3
20.7
Fixed interest rate bonds
1,651.3
1,689.9
1,664.6
1,710.6
Total interest bearing liabilities
1,684.1
1,731.7
Fixed Interest Rate Bonds
The Group has on issue the following fixed interest rate bonds:
» USD500.0m of Notes as a private placement in the US
market. USD250.0m has a fixed rate semi-annual coupon
of 4.03 percent and matures in October 2028 and USD250.0m
has a fixed rate semi-annual coupon of 4.13 percent and
matures in October 2030.
» HKD560.0m 7 year bond as a private placement in the
Regulation S debt capital market. The bond has a fixed rate
annual coupon of 4.13 percent and matures in February 2026.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: SHAREHOLDER RETURNS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5. Earnings per share
2024
$mill
2023
$mill
Earnings used in the calculation of
earnings per share attributable to
ordinary shareholders
Profit from continuing operations
attributable to ordinary shareholders
(477.7)
276.7
Profit from discontinued operations
attributable to ordinary shareholders
166.8
283.3
Individually material items after tax
711.7
22.1
Profit attributable to ordinary
shareholders excluding individually
material items
400.8
582.1
Number
Number
Weighted average number of ordinary
shares used in the calculation of basic
earnings per share
1,935,814,215
1,942,225,029
Weighted average number of ordinary
shares used in the calculation of diluted
earnings per share
1,935,814,215
1,946,428,912
2024
Cents per
share
2023
Cents per
share
Basic earnings per share
Continuing operations including
individually material items
(24.7)
14.2
Discontinued operations
8.6
14.6
Total basic earnings per share
(16.1)
28.8
Diluted earnings per share
Continuing operations including
individually material items
(24.7)
14.2
Discontinued operations
8.6
14.6
Total diluted earnings per share
(16.1)
28.8
Excluding individually material items
Basic earnings per share
20.7
30.0
Diluted earnings per share
20.7
29.9
The graph below shows the Group’s earnings per share and
dividend payout over the last five years.
6. Dividends
Dividends paid or declared by the Company in the year ended
30 September were:
2024
$mill
2023
$mill
Ordinary shares
Final dividend of 17.0 cents per share, fully franked,
paid 21 December 2022
–
330.2
Interim dividend of 10.0 cents per share, 60 percent
franked, paid 4 July 2023
–
194.2
Final dividend of 5.0 cents per share, unfranked, paid
19 December 2023
97.1
–
Special dividend of 10.2 cents per share, unfranked,
paid 8 February 2024
197.5
–
Interim dividend of 4.3 cents per share, unfranked,
paid 4 July 2024
83.6
–
Total ordinary share dividends
378.2
524.4
Since the end of the financial year, the directors have determined
to pay a final dividend of 6.3 cents per share, unfranked, to be
paid on 18 December 2024. The record date for entitlement to
this dividend is 4 December 2024. Based on the number of shares
on issue at 30 September 2024, the total dividend payment will be
$119.2m.
The financial effect of this dividend has not been recognised in
the 2024 Consolidated Financial Statements and will be recognised
in subsequent Financial Reports.
The dividend reflects a payout ratio of approximately 50 percent
of net profit after tax (before individually material items).
Franking credits
Franking credits as at 30 September 2024 were $13.9m (2023:
$3.9m).
Key accounting policies
A provision for dividends payable is recognised in the reporting
period in which the dividends are paid. The provision is for the total
undistributed dividend amount, regardless of the extent to which
the dividend will be paid in cash.
Key estimates and judgements
The expected impairment loss calculation for trade
receivables considers the impact of past events, and
exercises judgement over the impact of current and future
economic conditions when considering the recoverability of
outstanding trade receivable balances at the reporting date.
In establishing the expected credit loss provision, the Group
also assessed the impact of the global economic challenges
and its potential to affect customers’ repayment ability.
Subsequent changes in economic and market conditions may
result in the provision for impairment losses increasing or
decreasing in future periods.
Company performance and dividends declared
0
5
10
15
-15
-10
-5
20
25
30
35
40
45
50
55
2024
2020
2021
2022
2023
Cents
Earnings per Share (including individually material items)
Earnings per Share (excluding individually material items)
Dividend declared in respect of the financial year
FINANCIAL REPORT
FINANCIAL REPORT
100
Incitec Pivot Limited Annual Report 2024
101
Incitec Pivot Limited Annual Report 2024
9. Property, plant and equipment
Notes
Freehold land
and buildings
$mill
Machinery, plant
and equipment
$mill
Work in progress
$mill
Total
$mill
At 30 September 2022
Cost
1,169.4
5,433.7
398.0
7,001.1
Accumulated depreciation
(446.9)
(2,307.3)
–
(2,754.2)
Net book amount
722.5
3,126.4
398.0
4,246.9
Year ended 30 September 2023
Opening net book amount
722.5
3,126.4
398.0
4,246.9
Adjustment due to change in discount rates (1)
(22.1)
(1.8)
–
(23.9)
Additions
0.7
24.6
467.5
492.8
Reclassification to held for sale (2)
(120.9)
(1,050.6)
(75.1)
(1,246.6)
Disposals
(1.8)
–
–
(1.8)
Depreciation
(2)
(31.2)
(231.3)
–
(262.5)
Impairment of assets
(2)
–
(4.9)
–
(4.9)
Reclassification from work in progress
49.4
379.5
(428.9)
–
Reclassification to exploration and evaluation assests
–
–
(8.7)
(8.7)
Foreign exchange movement
3.4
(22.0)
10.0
(8.6)
Closing net book amount
600.0
2,219.9
362.8
3,182.7
At 30 September 2023
Cost
1,034.0
4,429.4
362.8
5,826.2
Accumulated depreciation
(434.0)
(2,209.5)
–
(2,643.5)
Net book amount
600.0
2,219.9
362.8
3,182.7
Year ended 30 September 2024
Opening net book amount
600.0
2,219.9
362.8
3,182.7
Adjustment due to change in discount rates (1)
4.9
–
–
4.9
Additions
28.7
11.6
354.6
394.9
Disposals
(4.6)
(11.1)
–
(15.7)
Depreciation
(2)
(30.1)
(231.4)
–
(261.5)
Impairment of assets
(2)
(117.9)
(596.2)
(79.8)
(793.9)
Reclassification from work in progress
57.2
240.0
(297.2)
–
Foreign exchange movement
(16.4)
(47.9)
(11.2)
(75.5)
Closing net book amount
521.8
1,584.9
329.2
2,435.9
At 30 September 2024
Cost
1,083.6
4,400.2
329.2
5,813.0
Accumulated depreciation
(561.8)
(2,815.3)
–
(3,377.1)
Net book amount
521.8
1,584.9
329.2
2,435.9
(1) Movement in site retirement obligation assets is driven by changes in long-term Government bond rates. The net present value of these assets are adjusted at each reporting period to reflect
current rates.
(2) The Waggaman property, plant and equipment was transferred to held for sale at November 2022. Refer to note 14 for further disclosure on discontinued operations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Key accounting policies
Interest bearing liabilities
Interest bearing liabilities are initially recognised at fair value
less any directly attributable borrowing costs. Subsequent to
initial recognition, interest bearing liabilities are measured at
amortised cost using the effective interest method, with any
difference between cost and redemption value recognised in
the profit or loss over the period of the borrowings.
The Group derecognises interest bearing liabilities when its
obligation is discharged, cancelled or expires. Any gains and
losses arising on derecognition are recognised in the profit
or loss.
Interest bearing liabilities are classified as current liabilities,
except for those liabilities where the Group has an unconditional
right to defer settlement for at least 12 months after the year end,
which are classified as non-current.
Cash and cash equivalents
Cash includes cash at bank, cash on hand and short term
investments, net of bank overdrafts.
Borrowing costs
Borrowing costs include interest on borrowings and the
amortisation of premiums relating to borrowings.
Borrowing costs are expensed as incurred, unless they relate
to qualifying assets (refer note 9). In this instance, the borrowing
costs are capitalised and depreciated over the asset’s expected
useful life.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE
FOR THE YEAR ENDED 30 SEPTEMBER 2024
» AUD431.3m 7 year bond on issue in the Australian debt capital
market. The bond was issued in March 2019 for AUD450.0m
and reduced by AUD18.7m as a result of the buyback in
November 2020. The bond has a fixed rate semi-annual coupon
of 4.30 percent and matures in March 2026.
» USD305.7m 10 year bond on issue in the Regulation S
debt capital market. The bond was issued in August 2017
for USD400.0m and reduced by USD94.3m as a result of the
buyback in November 2020. The bond has a fixed rate semi-
annual coupon of 3.95 percent and matures in August 2027.
Bank Facilities
The Group holds committed Syndicated Term facility domiciled in
Australia and consisting of two tranches: Tranche A has a limit of
AUD490.0m and Tranche B has a limit of USD200.0m. The facility
had a maturity of April 2025 which was extended to October 2025.
Tenor of interest bearing liabilities
The Group’s average tenor of its drawn interest bearing liabilities
at 30 September 2024 is 3.4 years (2023: 4.4 years) and the average
tenor of its total debt facilities is 2.6 years (2023: 3.4 years).
The table below includes detail on the movements in the Group’s interest bearing liabilities.
Cash flow
Non-cash changes
30 September 2024
1 October
2023
$mill
Proceeds
from borrowings
$mill
Repayments
of borrowings
$mill
Foreign exchange
movement
$mill
Funding costs
& fair value
adjustments
$mill
30 September
2024
$mill
Current
Loans from joint ventures
21.1
–
(0.1)
(1.5)
–
19.5
Non-current
Other loans
20.7
0.8
(8.0)
(0.2)
–
13.3
Fixed interest rate bonds
1,689.9
–
–
(94.0)
55.4
1,651.3
Total liabilities from financing activities
1,731.7
0.8
(8.1)
(95.7)
55.4
1,684.1
Derivatives held to hedge interest
bearing liabilities
82.7
–
–
7.2
(53.5)
36.4
Debt after hedging
1,814.4
0.8
(8.1)
(88.5)
1.9
1,720.5
Cash flow
Non-cash changes
30 September 2023
1 October
2022
$mill
Repayments
of borrowings
$mill
Foreign exchange
movement
$mill
Funding costs
& fair value
adjustments
$mill
30 September
2023
$mill
Current
Loans from joint ventures
21.1
(0.2)
0.2
–
21.1
Non-current
Other loans
28.0
(9.5)
2.2
–
20.7
Fixed interest rate bonds
1,662.9
–
16.9
10.1
1,689.9
Total liabilities from financing activities
1,712.0
(9.7)
19.3
10.1
1,731.7
Derivatives held to hedge interest
bearing liabilities
87.7
–
(1.6)
(3.4)
82.7
Debt after hedging
1,799.7
(9.7)
17.7
6.7
1,814.4
Interest rate profile
The table below summarises the Group’s interest rate profile of its
interest bearing liabilities, net of hedging, at 30 September:
2024
$mill
2023
$mill
Fixed interest rate financial instruments
1,025.1
894.1
Variable interest rate financial instruments
659.0
837.6
1,684.1
1,731.7
Detail on the Group’s interest hedging profile and duration
is included in note 18.
Funding profile
The graph below details the Group’s available funding limits,
its maturity dates and drawn funds at 30 September 2024.
The Group has undrawn financing facilities of $779.0m (2023:
$801.2m) at 30 September 2024.
Cash and cash equivalents
Cash and cash equivalents at 30 September 2024 were $1,068.9m
(2023: $399.4m) and consisted of cash at bank of $166.7m (2023:
$209.5m) and short term investments of $902.2m (2023: $189.9m).
0
200
400
600
AUDm
Bank facility
AUD490m
Bank facility
USD200m
Reg S
HKD560m
Bond
AUD431.3m
Reg S
USD305.7m
USPP Tranche 1
USD250m
USPP Tranche 2
USD250m
Oct 25
Maturity
Date
Oct 25
Feb 26
Mar 26
Aug 27
Oct 28
Oct 30
Available limits
Drawn funds
FINANCIAL REPORT
FINANCIAL REPORT
102
Incitec Pivot Limited Annual Report 2024
103
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11. Intangibles
Notes
Software
$mill
Goodwill
$mill
Patents, trademarks,
customer contracts
and supplier
contracts
$mill
Brand names
$mill
Total
$mill
At 30 September 2022
Cost
116.2
2,873.0
338.1
329.3
3,656.6
Accumulated amortisation
(72.7)
–
(302.5)
–
(375.2)
Net book amount
43.5
2,873.0
35.6
329.3
3,281.4
Year ended 30 September 2023
Opening net book amount
43.5
2,873.0
35.6
329.3
3,281.4
Additions
17.7
–
–
–
17.7
Reclassification to held for sale
(1.5)
(879.1)
–
–
(880.6)
Amortisation
(2)
(7.9)
–
(12.7)
–
(20.6)
Foreign exchange movement
0.2
(8.7)
1.3
3.7
(3.5)
Closing net book amount
52.0
1,985.2
24.2
333.0
2,394.4
At 30 September 2023
Cost
119.7
1,985.2
342.8
333.0
2,780.7
Accumulated amortisation
(67.7)
–
(318.6)
–
(386.3)
Net book amount
52.0
1,985.2
24.2
333.0
2,394.4
Year ended 30 September 2024
Opening net book amount
52.0
1,985.2
24.2
333.0
2,394.4
Additions (1)
19.2
–
454.3
–
473.5
Subsidiaries acquired
–
2.9
–
–
2.9
Impairment of assets
(2)
(1.4)
(195.8)
–
–
(197.2)
Amortisation
(2)
(9.3)
–
(19.6)
–
(28.9)
Foreign exchange movement
(2.4)
(59.5)
(16.2)
(20.9)
(99.0)
Closing net book amount
58.1
1,732.8
442.7
312.1
2,545.7
At 30 September 2024
Cost
132.6
1,732.8
762.4
312.1
2,939.9
Accumulated amortisation
(74.5)
–
(319.7)
–
(394.2)
Net book amount
58.1
1,732.8
442.7
312.1
2,545.7
Allocation of indefinite life intangible assets
The Group’s indefinite life intangible assets are allocated to groups of cash generating units (CGUs) as follows:
30 September 2024
Goodwill
$mill
Brand names
$mill
Total
$mill
Fertilisers APAC
–
–
–
Titanobel
71.7
–
71.7
Dyno Nobel Asia Pacific (DNAP)
908.5
40.3
948.8
Dyno Nobel Americas (DNA)
752.6
271.8
1,024.4
1,732.8
312.1
2,044.9
30 September 2023
Goodwill
$mill
Brand names
$mill
Total
$mill
Fertilisers APAC
195.9
–
195.9
Titanobel
73.4
–
73.4
Dyno Nobel Asia Pacific (DNAP)
908.5
40.3
948.8
Dyno Nobel Americas (DNA)
807.4
292.7
1,100.1
1,985.2
333.0
2,318.2
(1) Includes the recognition of the 25-year ammonia supplier contract which was entered into as a part of the Waggaman sale agreement. This supply contract was valued at $454.3m.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Key accounting policies
Property, plant and equipment is measured at cost, less
accumulated depreciation and any impairment losses. Subsequent
costs are included in the asset’s carrying amount or recognised
as a separate asset, only when it is probable that future economic
benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably.
Borrowing costs in relation to the funding of qualifying assets are
capitalised and included in the cost of the asset. Qualifying assets
are assets that take more than 12 months to get ready for their
intended use or sale. Where funds are borrowed, generally
a weighted average interest rate is used for the capitalisation
of interest.
During 2024, IPL received Government grants of $8.2m for
capital projects in the Fertilisers business. The grants were
recognised as a reduction in the carrying amount of property,
plant and equipment. Property, plant and equipment is subject to
impairment testing. For details of impairment of assets, refer note 12.
Depreciation
Property, plant and equipment, other than freehold land,
is depreciated on a straight-line basis. Freehold land is not
depreciated. Depreciation rates are calculated to spread the cost
of the asset (less any residual value), over its estimated useful life.
Residual value is the estimated value of the asset at the end of its
useful life.
Estimated useful lives for each class of asset are as follows:
» Buildings and improvements
20 – 50 years
» Machinery, plant and equipment
3 – 50 years
Residual values and useful lives are reviewed and adjusted
where relevant when changes in circumstances impact the
use of the asset.
10. Leases
The Group has lease contracts for various items of property, plant
and equipment used within its operations and office premises.
These assets have lease terms ranging from 1 to 48 years for land
and buildings, and 1 to 8 years for machinery, plant and equipment.
The carrying value of right-of-use lease assets and lease liabilities
is presented below:
Right-of-use lease assets
Notes
Land and
buildings
$mill
Machinery,
plant and
equipment
$mill
Total
$mill
Year ended 30 September 2023
Opening net book amount
154.4
66.6
221.0
Reclassification to held for sale
–
(9.9)
(9.9)
Additions
12.9
37.4
50.3
Disposals
(1.4)
(0.3)
(1.7)
Depreciation
(2)
(21.7)
(30.8)
(52.5)
Foreign exchange movement
0.7
1.4
2.1
Closing net book amount
144.9
64.4
209.3
At 30 September 2023
Cost
204.7
137.5
342.2
Accumulated depreciation
(59.8)
(73.1)
(132.9)
Net book amount
144.9
64.4
209.3
Year ended 30 September 2024
Opening net book amount
144.9
64.4
209.3
Reclassification
(9.5)
9.5
–
Additions
34.8
66.1
100.9
Disposals
(1.1)
(3.2)
(4.3)
Depreciation
(2)
(19.4)
(35.2)
(54.6)
Foreign exchange movement
(2.9)
(5.0)
(7.9)
Closing net book amount
146.8
96.6
243.4
At 30 September 2024
Cost
214.6
172.2
386.8
Accumulated depreciation
(67.8)
(75.6) (143.4)
Net book amount
146.8
96.6
243.4
Lease liabilities
2024
$mill
2023
$mill
Opening carrying amount at 1 October
234.7
245.9
Additions
100.7
50.3
Disposals
(3.2)
(3.0)
Reclassification to held for sale
–
(9.9)
Payments
(61.7)
(56.9)
Interest unwind
8.7
6.4
Foreign exchange movement
(7.9)
1.9
Carrying amount at 30 September
271.3
234.7
Current
48.9
41.3
Non-current
222.4
193.4
Refer to note 18 for the maturity profile of the Group’s committed
lease liabilities before discounting.
Amounts recognised in the income statement
Amounts recognised in the income statement relating to the
Group’s lease arrangements are as follows:
Notes
2024
$mill
2023
$mill
Depreciation
(2)
54.6
52.5
Interest
(2)
8.7
6.4
Total
63.3
58.9
Key accounting policies
All leases except for short term or low value leases are recognised
on the balance sheet as a right-of-use asset and a corresponding
lease liability. Short term (12 months or less) and low value leases
are recognised in the profit or loss as a lease expense.
Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the
commencement date less any lease incentive received. Right-of-
use assets are depreciated on a straight line basis in the profit or
loss over the lease term.
Lease liabilities are recognised by the Group at the commencement
date of the lease and are measured at the present value of lease
payments to be made over the lease term. Lease payments include
fixed payments and variable lease payments that depend on an
index or rate.
Key estimates and judgements
Extension options – The Group considers whether an option
to extend a lease is reasonably certain on a lease-by-lease
basis, which considers the importance of the lease to the
Group’s operations and its economic incentive to extend the
lease. The lease term is reassessed upon the occurrence of a
significant event or change in circumstance.
Incremental borrowing rate – To calculate the present value
of lease payments, the Group uses an incremental borrowing
rate at the commencement date of the lease. The incremental
borrowing rate reflects the duration and the financing
characteristics of the lease. Where the interest rate implicit
in the lease is not readily available, the Group uses its
incremental borrowing rate applicable to a portfolio of
leases with reasonably similar characteristics.
FINANCIAL REPORT
FINANCIAL REPORT
104
Incitec Pivot Limited Annual Report 2024
105
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Climate Related Risks
IPL considers climate change and other sustainability risks when
determining the recoverable amount of each CGU. The Group has
greenhouse gas emission reduction targets for its manufacturing
facilities which are disclosed in the annual Sustainability and
Climate Change Reports. Capital forecasts in the cash flows used in
the impairment models include investment in sustainability related
projects that have either commenced or are committed, including
the earnings attributable to these capital projects.
The commodity forecast assumptions used in the impairment
models were obtained from external sources which include the
impacts of sustainability and carbon costs.
For both DNAP and the Phosphate Hill facility, the estimated
impact of the Safeguard Mechanism (SGM) 2.0 policy was included
in the recoverable amount assessment of each CGU. Refer below,
for further information on SGM estimates and assumptions.
Safeguard Mechanism (SGM)
For the Fertilisers CGU, the Phosphate Hill facility is in scope.
A cost to comply with the SGM has been included in cash flow
forecasts supporting the carrying value of Fertilisers net assets.
This cost reflects the assumed cost of purchasing Australian Carbon
Credit Units to offset emissions above the baseline set by the SGM.
In forecasting this cost, assumptions have been developed with
respect to future emissions, future production levels, the market
value of carbon credits and baseline decline rates (including an
assessment of Phosphate Hill as a Trade Exposed facility).
For the DNAP CGU, the Moranbah manufacturing facility is in
scope of the SGM given the plant’s historical level of emissions.
The Moranbah N2O abatement project which was installed in
2024 is anticipated to reduce emissions to a level below the
baseline in the near term. As the baseline of the facility declines,
this benefit will reduce. This outlook has been factored into cash
flow forecasts for the DNAP CGU.
Sensitivity analyses
Included in the table below is a sensitivity analysis of the
recoverable amounts of the CGUs and, where applicable, the
impairment charge considering reasonable change scenarios
relating to key assumptions at 30 September 2024.
Each of the sensitivities below assumes that a specific assumption
moves in isolation, while all other assumptions are held constant.
A change in one assumption could be accompanied by a change
in another assumption, which may increase or decrease the net
impact.
Post-tax
discount rate
Terminal value
growth rate
Natural
gas price
+0.5%
-1.0%
+AU$1 per
gigajoule
DNAP
AU$mill
AU$mill
AU$mill
Change in
recoverable amount
(197.2)
(282.5)
(69.9)
Impairment charge
–
(54.9)
–
Post-tax
discount rate
Terminal value
growth rate
Urea price
+0.5%
-1.0%
-US$50
per tonne
St Helens Facility
US$mill
US$mill
US$mill
Change in
recoverable amount
(3.6)
(5.6)
(34.0)
Impairment charge
(3.6)
(5.6)
(19.0)
Post-tax
discount rate
AUD:USD
exchange rate
DAP
Price
Natural gas
price
+0.5%
+5c
-US$50
per tonne
+AUD1 per
gigajoule
Phosphate Hill Facility
AU$mill
AU$mill
AU$mill
AU$mill
Change in
recoverable amount
(11.0)
(301.0)
(405.0)
(52.0)
Impairment charge
(11.0)
(119.0)
(119.0)
(52.0)
Post-tax
discount rate
Terminal value
growth rate
+0.5%
-1.0%
DNA continuing operations
US$mill
US$mill
Change in
recoverable amount
(200.2)
(289.2)
Impairment charge
–
–
Post-tax
discount rate
Terminal value
growth rate
+0.5%
-1.0%
Fertilisers Distribution
AU$mill
AU$mill
Change in
recoverable amount
(73.9)
(111.0)
Impairment charge
–
–
Post-tax
discount rate
Terminal value
growth rate
+0.5%
-1.0%
Titanobel
EUR €mill
EUR €mill
Change in
recoverable amount
(13.2)
(19.9)
Impairment charge
–
–
Key accounting policies
Impairment testing
The identification of impairment indicators involves management
judgement. Where an indicator of impairment is identified, a
formal impairment assessment is performed. The Group’s annual
impairment testing determines whether the recoverable amount
of a CGU or group of CGUs, to which goodwill and/or indefinite
life intangible assets are allocated, exceeds its carrying amount.
A CGU is the smallest identifiable group of assets that generate
cash flows largely independent of cash flows of other groups of
assets. Goodwill and other indefinite life intangible assets are
allocated to CGUs or groups of CGUs which are no larger than
one of the Group’s reportable segments.
Determining the recoverable amount
The recoverable amount of an asset is determined as the higher of
its fair value less cost of disposal and its value-in-use. Value-in-use
is a term that means an asset’s value based on the expected future
cash flows arising from its continued use in its current condition,
discounted to present value. For discounting purposes, a post-tax
rate is used that reflects current market assessments of the risks
specific to the asset. The Group has prepared value-in-use models
for the purpose of impairment testing as at 30 September 2024,
using five year discounted cash flow models based on Board
approved forecasts. Cash flows beyond the five year period are
extrapolated using a terminal value growth rate.
Transition of the world’s energy systems and sustainability forms
part of the Group's strategy and these have been considered in the
market data utilised to assess growth rates for each CGU.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Key accounting policies
Goodwill
Goodwill on acquisition of subsidiaries is measured at cost less any
accumulated impairment losses. Goodwill is tested for impairment
annually, or more frequently if events or circumstances indicate
that it might be impaired.
Brand names
Brand names acquired by the Group have indefinite useful lives
and are measured at cost less accumulated impairment. They are
tested annually for impairment, or more frequently if events or
circumstances indicate that they might be impaired.
Other intangible assets
Other intangible assets acquired by the Group have finite lives.
They are stated at cost less accumulated amortisation and
impairment losses.
Subsequent expenditure
Subsequent expenditure on intangible assets is capitalised only
when it increases the future economic benefits of the asset to
which it relates. All other such expenditure is expensed as incurred.
Amortisation
Goodwill and brand names are not amortised.
For intangible assets with finite lives, amortisation is recognised in
the profit or loss on a straight-line basis over their estimated useful
life. The estimated useful lives of intangible assets in this category
are as follows:
» Software
3 – 10 years
» Product trademarks 4 – 10 years
» Patents
13 – 15 years
» Customer contracts 10 – 17 years
Useful lives are reviewed at each reporting date and adjusted
where relevant.
12. Impairment of goodwill and
non-current assets
Impairment testing
The Group performs annual impairment testing as at 30 September
for intangible assets with indefinite useful lives. More frequent
reviews are performed for indicators of impairment of all the
Group’s assets, including operating assets. The 30 September
impairment testing resulted in no impairment of DNAP, Titanobel
or DNA (excluding St Helens Fertilisers manufacturing facility as
noted below) as the recoverable amounts exceeded their carrying
amounts. Indicators of impairment were noted with regards to a
number of Fertiliser assets across the Group as noted below:
Impairment of Fertilisers Goodwill and Phosphate Hill assets
Due to a range of factors, including the continuation of the
Fertilisers separation process and the increased uncertainty
regarding the near-term and long-term cost of gas on the east
coast of Australia, the Group has recognised an impairment of
the Fertilisers CGU. A gross impairment charge of $195.8m was
recognised against goodwill and $656.8m against property, plant
and equipment, inventories and exploration and evaluation assets.
Impairment of St Helens Fertilisers manufacturing facility
During FY24, IPL undertook a competitive sale process for the
potential sale of its Fertilisers manufacturing facility located in
St Helens, Oregon, US. While the facility was not sold, the process
did indicate that the fair value of the asset was below the carrying
amount. This triggered an impairment review of the asset and a
partial impairment of the asset of A$100.1m was recognised on a
value-in-use basis. The St Helens Fertilisers manufacturing facility
is part of the DNA segment.
Impairment of Geelong SSP manufacturing facility
During FY24, an impairment assessment was conducted at the
Geelong SSP manufacturing asset level. The assessment was
performed due to movements in the global phosphate market,
fluctuations in phosphate rock costs and movements in the
domestic SSP sale price. As a result, the assets related to the
manufacturing facility of $38.8m were fully impaired. A strategic
review over the Geelong manufacturing assets is currently
underway.
Write-down of Gibson Island distribution assets
In FY24, IPL made the decision to exit the Fertilisers distribution
centre located at Gibson Island, Brisbane in preference of a third-
party owned and operated distribution centre which will service
IPL’s customers. The brand new facility is a capital-light and more
cost effective option than the current facility at Gibson Island.
While the relocation is expected to take place in late FY25/early
FY26, infrastructure at the distribution centre which cannot be
relocated to the new facility has been written off. Total assets of
$49.5m were written off primarily relating to structures, sheds
and loadout facilities which will not be relocated.
The IPF Distribution CGU was also assessed for impairment and
significant headroom remains.
Key assumptions
Details of the key assumptions used in the recoverable amount
calculations at 30 September are set out below:
Key assumptions
1 – 5 years
Terminal value
(after 5 years)
2024
2023
2024
2023
US$
US$
US$
US$
DAP (1)
535 to 562
451 to 668
668
688
AUD:USD (2)
0.70 to 0.72
0.70 to 0.72
0.72
0.72
(1) Di-Ammonium Phosphate price (FOB China/Saudi – USD per tonne).
(2) AUD:USD exchange rate.
The delivered gas price assumption to Phosphate Hill for the
outlook period is based on management’s best estimate of the
short-term and long-term cost of gas on the east coast of Australia.
This outlook incorporates external forecasts and ranges from $9.00
- $17.30 per gigajoule in nominal terms.
Fertiliser prices and foreign exchange rates are estimated by
reference to external market publications and market analyst
estimates where available, and are updated at each reporting date.
Discount and growth rates
The post-tax discount rate used in the calculations was 9% for the
Fertilisers Distribution CGU and Phosphate Hill assets (2023: 9%),
8.5% for the DNA, St Helens Fertilisers manufacturing facility and
DNAP CGUs (2023: 8.5%) and 9% for the Titanobel CGU (2023: 9%).
The rate reflects the underlying cost of capital adjusted for market
and asset specific risks.
The terminal value growth rate represents the forecast consumer
price index (CPI) of 2.5% (2023: 2.5%) for all CGUs. Sensitivity
analyses on the discount and growth rates, considering the current
volatile market conditions, are provided below.
FINANCIAL REPORT
FINANCIAL REPORT
106
Incitec Pivot Limited Annual Report 2024
107
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2023
$mill
Assets held for sale
Trade and other receivables
24.0
Inventories
7.4
Property, plant and equipment
1,296.5
Right-of-use asset
10.3
Intangible assets(1)
915.8
Other assets
8.8
Total assets held for sale
2,262.9
(1) As the Waggaman assets contributed to the future cashflows of the DNA CGU, which includes
goodwill, a relative share of that goodwill was included as part of the gain on sale.
2023
$mill
Liabilities directly associated with assets classified as held for sale
Trade and other payables
33.6
Lease liabilities
10.4
Provisions
11.6
Total liabilities directly associated with assets classified as
held for sale
55.6
A discontinued operation represents a separate major line of
operations within the Group where the cash flows can be clearly
identified and there is a plan to dispose. Classification as a
discontinued operation occurs at the earlier of disposal date or
when the operation meets the criteria to be classified as held for
sale. In the case of the Waggaman operations, the re-classification
was made in November 2022 when the assets and liabilities met
the definition as held for sale.
Once classified as held for sale, the disposal group is measured at
the lower of carrying amount and fair value less costs to sell and
intangible assets and property, plant and equipment are no longer
amortised or depreciated.
15. Equity accounted investments
The Group has performed an analysis of the statements of financial
position and the results of each of its joint ventures and associates
(as listed in note 16) at 30 September 2024 and considers them to
be individually immaterial to the Group. As a result, no individual
disclosures are included for the Group’s investments in joint
ventures and associates.
Included in the table below is the summarised financial information
of the Group’s joint ventures and associates at 30 September:
Carrying amount of joint ventures and associates
2024
$mill
2023
$mill
Carrying amount at 1 October
404.8
379.4
Share of net profit
62.2
61.4
Dividends received
(32.8)
(37.7)
Foreign exchange movement
(16.3)
1.7
Carrying amount at 30 September
417.9
404.8
Carrying amount of investments in:
Joint ventures
306.8
298.9
Associates
111.1
105.9
Carrying amount of investments in joint
ventures and associates
417.9
404.8
Transactions between subsidiaries of the Group and joint
ventures and associates
2024
$mill
2023
$mill
Sales of goods/services
429.1
495.6
Purchase of goods/services
(84.4)
(75.1)
Royalty income and management fees
38.7
37.0
Interest expense
1.2
1.2
Dividend income
32.8
37.7
Joint ventures and associates transactions represent amounts that
do not eliminate on consolidation.
Outstanding balances arising from transactions with joint
ventures and associates
2024
$mill
2023
$mill
Amounts owing to related parties
9.2
9.4
Amounts owing from related parties
67.0
85.7
Loans with joint ventures and associates
Loans from joint ventures and associates
19.5
21.1
Outstanding balances arising from transactions with joint ventures
and associates are on standard market terms.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Impairment losses
An impairment loss is recognised whenever the carrying amount
of an asset (or its CGU) exceeds its recoverable amount.
Impairment losses are recognised in the profit or loss.
Impairment losses recognised in respect of CGUs are allocated
against assets in the following order:
» Firstly, against the carrying amount of any goodwill allocated
to the CGU.
» Secondly, against the carrying amount of any remaining assets
in the CGU.
An impairment loss recognised in a prior period for an asset (or
its CGU) other than goodwill may be reversed only if there has
been a change in the estimates used to determine the recoverable
amount of the asset (or its CGU) since the last impairment loss was
recognised. When this is the case, the carrying amount of the asset
(or its CGU) is increased to its recoverable amount.
13. Commitments
Capital expenditure commitments
Capital expenditure contracted but not provided for or payable
at 30 September:
2024
$mill
2023
$mill
No later than one year
78.1
78.5
78.1
78.5
Other commitments
In May 2023, IPL entered into a long-term gas supply agreement
with Queensland Pacific Metals (QPM) commencing in April 2026
upon expiry of the existing gas supply agreement. As part of the
arrangement, Dyno Nobel will provide an initial development
funding facility of up to $80.0m. This facility will be used to
accelerate development of the Moranbah Gas Project by funding
the capital costs of new infill production wells.
As at 30 September 2024, Dyno Nobel has provided $28.0m of
funding for field development and a similar value is expected for
the 2025 financial year. Dyno Nobel will recognise the cash outflow
as a prepayment which will be amortised over the duration of the
gas supply agreement with QPM.
14. Discontinued operations
On 1 December 2023, the Group completed the sale of its ammonia
manufacturing facility located in Waggaman, Louisiana, US. The
Group recorded a gain on sale after tax of $123.8m which included
a gain of $254.1m relating to the release of the foreign currency
translation reserve (FCTR) as required by Australian Accounting
Standards.
The Group also secured a 25-year ammonia supply agreement
with CF Industries Holdings Inc for up to 200,000 short tonnes of
ammonia per annum at estimated producer cost to support the
Dyno Nobel Americas explosives business. The supply agreement
has been assigned a value of $454.3m which offset part of the
proceeds.
2024
$mill
Cash consideration
1,830.2
Transaction costs
(33.7)
Offtake supply agreement(1)
454.3
Net consideration
2,250.8
Carrying value of net assets of business disposed
Trade and other receivables
50.7
Inventories
3.4
Property, plant and equipment
1,252.9
Right-of-use asset
9.3
Intangible assets
881.6
Other assets
0.1
Trade and other payables
(28.3)
Lease liabilities
(10.0)
Provisions
(11.2)
2,148.5
Gain on sale of discontinued operations before FCTR release
102.3
Foreign currency translation reserve release to profit or loss
254.1
Gain on sale of discontinued operations before tax
356.4
Income tax expense
(232.6)
Net gain on sale of discontinued operations
123.8
(1) The offtake supply agreement has been recognised as an intangible asset.
The results of the Waggaman facility up until completion date of
the sale are presented below:
2024
$mill
2023
$mill
Profit for the year from discontinued operations
Revenue
86.4
604.6
Financial and other income
–
0.2
Depreciation and amortisation (1)
–
(10.9)
Expenses
(28.3)
(198.2)
Gain on sale of discontinued operations
356.4
(12.8)
Profit before income tax
414.5
382.9
Income tax expense
(247.7)
(99.6)
Profit for the year from discontinued operations
166.8
283.3
(1) Depreciation and amortisation for 2023 represents the two months ended November 2022
at which point the assets were reclassified to held for sale.
2024
$mill
2023
$mill
Cash flows from/(used in) discontinued operations
Net cash flows from operating activities
19.8
373.3
Net cash flows from investing activities
(6.3)
(56.6)
Net cash flows from financing activities
(0.1)
(0.5)
Total cash flows from discontinued operations (1)
13.4
316.2
(1) Excludes cash flows from sale of discontinued operations.
Key estimates and judgements
The Group is required to make significant estimates and
judgements in determining whether the carrying amount
of its assets and/or CGUs has any indication of impairment,
in particular in relation to:
» key assumptions used in forecasting future cash flows;
» discount rates applied to those cash flows; and
» the expected long-term growth in cash flows.
Such estimates and judgements are subject to change as a
result of changing economic, operational, environmental and
weather conditions. Actual cash flows may therefore differ
from forecasts and could result in changes in the recognition
of impairment charges in future periods.
FINANCIAL REPORT
FINANCIAL REPORT
108
Incitec Pivot Limited Annual Report 2024
109
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Joint arrangements and associates
Name of entity
Ownership
interest
Joint ventures
Incorporated in USA
Buckley Powder Co.
50%
IRECO Midwest Inc.
50%
Wampum Hardware Co.
50%
Western Explosives Systems Company
50%
Warex Corporation
50%
Warex, LLC
50%
Warex Transportation, LLC
50%
Vedco Holdings, Inc.
50%
Virginia Explosives & Drilling Company, Inc.
50%
Austin Sales, LLC
50%
Virginia Drilling Company, LLC
50%
DetNet Americas, Inc.
50%
Incorporated in Canada
Qaaqtuq Dyno Nobel Inc. (3)
49%
Dene Dyno Nobel (DWEI) Inc. (4)
49%
Incorporated in Australia
Queensland Nitrates Pty Ltd
50%
Queensland Nitrates Management Pty Ltd
50%
Incorporated in South Africa
DetNet South Africa (Pty) Ltd
50%
Sasol Dyno Nobel (Pty) Ltd
50%
Incorporated in Mexico
DNEX Mexico, S. de R.L. de C.V.
49%
Explosivos de la Region Lagunera, S.A. de C.V.
49%
Explosivos de la Region Central, S.A. de C.V.
49%
Nitro Explosivos de Ciudad Guzmán, S.A. de C.V.
49%
Explosivos y Servicios Para la Construcción, S.A. de C.V.
49%
Incorporated in France
Newcomat SARL (1)
10%
Incorporated in New Caledonia
Katiramona Explosifs SAS (1)
50%
Incorporated in Mongolia
Titanobel Mongolia LLC (1)
49%
Nitrosibir Mongolia LLC (1)
49%
Incorporated in Nigeria
Titanobel & Dynatrac Limited (1)
55%
Name of entity
Ownership
interest
Associates
Incorporated in Australia
Precision Agriculture Pty Ltd (2)
22%
Incorporated in USA
Maine Drilling and Blasting Group
49%
Independent Explosives
49%
Maine Drilling and Blasting, Inc.
49%
MD Drilling and Blasting, Inc.
49%
Incorporated in Canada
Labrador Maskuau Ashini Ltd
49%
Innu Namesu Ltd
49%
Incorporated in French Guiana
Guyanexplo Société en Nom collectif (1)
35%
Joint operations
IPL has a 50% interest in an unincorporated joint operation with
Senex Energy Pty Ltd (previously with Central Petroleum Limited)
for the development of gas acreage in Queensland, Australia,
which commenced in the 2018 financial year.
(1) This entity has a 31 December year end.
(2) This entity has a 30 June financial year end.
(3) Due to legal requirements in the Canadian Northwest Territories, the Group cannot
own more than 49 percent of shares in Qaaqtuq Dyno Nobel Inc. However, under
the joint venture agreement, the Group is entitled to 75 percent of the profit of
Qaaqtuq Dyno Nobel Inc.
(4) Due to legal requirements in the Canadian Northwest Territories, the Group cannot
own more than 49 percent of shares in Dene Dyno Nobel (DWEI) Inc. However, under
the joint venture agreement, the Group is entitled to 100 percent of the profit of Dene
Dyno Nobel (DWEI) Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL INVESTMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16. Investments in subsidiaries, joint arrangements and associates
The following list includes the Group’s principal operating subsidiaries. Other than as noted below, there were no changes in the Group’s
existing shareholdings in its subsidiaries, joint ventures and associates in the financial year.
Subsidiaries
Name of entity
Ownership
interest
Company
Incitec Pivot Limited (1)
Controlled Entities – operating
Incorporated in Australia
Incitec Fertilisers Operations Pty Ltd (1)
100%
TOP Australia Pty Limited (1)
100%
Incitec Pivot Fertilisers Limited (1)
100%
Southern Cross International Pty Ltd (1)
100%
Dyno Nobel LTI Plan Company Pty Ltd (3)
100%
Dyno Nobel Explosives Holdings Pty Ltd (1)(3)
100%
Queensland Operations Pty Limited (1)(4)
100%
Dyno Nobel Investments 1 Pty Ltd (1)(3)
100%
Dyno Nobel Investments 2 Pty Ltd (1)(3)(4)
100%
Incitec Pivot US Holdings Pty Ltd
100%
Dyno Nobel Finance Australia Pty Ltd (1)(3)
100%
Dyno Nobel Pty Limited
100%
Dyno Nobel Europe Pty Ltd
100%
Dyno Nobel Management Pty Limited (1)(4)
100%
Industrial Investments Australia Finance Pty Limited (1)(4)
100%
Dyno Nobel Asia Pacific Pty Limited (1)
100%
Dampier Nitrogen Pty Ltd
100%
DNX Australia Pty Ltd (1)
100%
Dyno Nobel Moranbah Pty Ltd (1)
100%
Dyno Nobel Moura Pty Limited (1)
100%
Incitec Pivot Queensland Gas Pty Ltd
100%
Easy Liquids Pty Ltd (1)(4)
100%
Australian Bio Fert Pty Ltd
64%
OZBIOFERT Pty Ltd
64%
Incorporated in USA
Dyno Nobel US Investments
100%
Dyno Nobel Management LLC
100%
Dyno Nobel Finance LLC
100%
Dyno Nobel Australia LLC
100%
Dyno Nobel SPS LLC
100%
Dyno Nobel Holdings IV LLC
100%
Dyno Nobel Holdings USA III, Inc.
100%
Dyno Nobel Holdings USA II
100%
Dyno Nobel Holdings USA II, Inc.
100%
Dyno Nobel Holdings USA, Inc.
100%
Dyno Nobel Inc.
100%
Dyno Nobel Transportation, Inc
100%
Simsbury Hopmeadow Street LLC
100%
Dyno Nobel Holdings V LLC
100%
Tradestar Corporation
100%
CMMPM, LLC
100%
CMMPM Holdings, L.P.
100%
Dyno Nobel Louisiana Ammonia, LLC
100%
Nobel Labs, LLC
100%
Mine Equipment & Mill Supply Company
100%
Controlled Explosives, Inc.
100%
Drisk Insurance Inc.
100%
Falconi Construction, Inc.
100%
Alpha Dyno Nobel
100%
Name of entity
Ownership
interest
Controlled Entities – operating (continued)
Incorporated in Canada
Dyno Nobel Canada Inc.
100%
Dyno Nobel Transportation Canada Inc.
100%
Dyno Nobel Nunavut Inc.
100%
Dyno Nobel Finance Canada Inc.
100%
Polar Explosives 2000 Inc.
100%
Dene Dyno Nobel (Polar) Inc.
100%
Dyno Nobel Waggaman Inc.
100%
Incorporated in Hong Kong
Incitec Pivot Holdings (Hong Kong) Limited
100%
Incorporated in Singapore
Coltivi Insurance Pte Ltd
100%
Incitec Pivot Fertilisers (Singapore) Pte. Ltd.
100%
Incorporated in Chile
Dyno Nobel Explosivos Chile Limitada
100%
Incorporated in Peru
Dyno Nobel Peru S.A.
100%
Incorporated in Mexico
Dyno Nobel Mexico, S.A. de C.V. (2)
99.98%
Incorporated in Papua New Guinea
DNX Papua New Guinea Ltd (2)
100%
Incorporated in Indonesia
PT DNX Indonesia
100%
Incorporated in Turkey
Nitromak Dnx Kimya Sanayii Anonim Sirketi
100%
Incorporated in Romania
RomNitro Explosives SRL
100%
Incorporated in Albania
Nitro Industria Kimike Shpk
100%
Incorporated in Switzerland
Dyno Nobel Holdings Europe SA
100%
Incorporated in France
Dyno Nobel Holdings France Sas
100%
Explinvest SASU
100%
Titanobel SASU
100%
Société d’Explosifs du Centre-Est SA
99.9%
Société Financière de Terrassement SAS
99.51%
Groupement Forestier Minez Clegueric
66%
Titanobel-NPGM Equipment SAS (2)
51%
Incorporated in South Africa
Titanobel Southern Africa (Pty) Limited (2)
100%
Enviro Blasting Services (Pty) Limited
74%
Incorporated in New Caledonia
Nord-Sud Dynamitage-Sofiter SARL (2)
51%
Incorporated in Benin
Titanobel Benin SASU (2)
100%
Incorporated in Cameroon
Titanobel Cameroun SASU (2)
100%
Incorporated in Senegal
Afrique Ouest Drilling Sofiter SARL (2)
100%
(1) A party to the Deed of Cross Guarantee dated 25 September 2024.
(2) This entity has a 31 December financial year end.
(3) This entity had its name changed during FY24 .
(4) This entity was added to the Deed of Cross Guarantee during FY24.
Quantum Fertilisers Limited, Société Civile Immobilière des
Champs Chanaux and C.E.M.E SARL were deregistered during FY24.
FINANCIAL REPORT
FINANCIAL REPORT
110
Incitec Pivot Limited Annual Report 2024
111
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18. Financial risk management
The Group is exposed to financial risks including liquidity risk, market risk and credit risk. This note explains the Group’s financial risk
exposures and its objectives, policies and processes for measuring and managing these risks.
The Board of Directors (the Board) has overall responsibility for the establishment and oversight of the Group’s risk management
framework. The Board established the Audit and Risk Management Committee (ARMC) which is responsible for, amongst other things,
the monitoring of the Group’s risk management plans. The ARMC is assisted in its oversight role by the Group’s Risk Management
function. The Risk Management function performs reviews of the Group’s risk management controls and procedures, the results
of which are reported to the ARMC. The ARMC reports regularly to the Board on its activities.
The Group’s financial risk management framework includes policies to identify, analyse and manage the Group’s financial risks.
These policies set appropriate financial risk limits and controls, identify permitted derivative instruments and provide guidance on
how to monitor and report financial risks and adherence to set limits. Financial risk management policies, procedures and systems
are reviewed regularly to ensure they remain appropriate given changes in market conditions and/or the Group’s activities.
Financial risks
Source of risk
Exposure to liquidity risk derives from the Group’s operations
and from the external interest bearing liabilities that it holds.
Risk mitigation
Liquidity risk is managed by ensuring there are sufficient
committed funding facilities available to meet the Group’s
financial commitments in a timely manner.
The Group’s forecast liquidity requirements are continually
reassessed based on regular forecasting of earnings and
capital requirements.
This includes stress testing of critical assumptions such as input
costs, sales prices, production volumes, exchange rates and
capital expenditure.
The Group aims to hold a minimum liquidity buffer of at least
$500.0m in undrawn non-current committed funding to meet
any unforeseen cash flow requirements. Details on the Group’s
committed finance facilities, including the maturity dates of
these facilities, are included in note 8.
Outstanding financial instruments
The Group’s exposures to liquidity risk are set out in the tables below:
30 September 2024
Contractual
cash flows (1)
$mill
0 – 12
months
$mill
1 – 5
years
$mill
More than
5 years
$mill
Non-derivative financial liabilities
Interest bearing liabilities
1,684.1
19.5 1,664.6
–
Interest payments
235.9
54.1
159.4
22.4
Trade and other payables
895.4
883.0
12.4
–
Lease liabilities
327.8
54.7
131.4
141.7
Bank guarantees
95.2
65.3
29.5
0.4
Total non-derivative
cash outflows
3,238.4 1,076.6 1,997.3
164.5
Derivative financial (assets)/liabilities
Forward exchange
contracts(2)
(0.2)
(0.2)
–
–
Cross currency interest
rate swaps(2)
(2.5)
0.6
(3.1)
–
Interest rate swaps
41.9
18.5
23.4
–
Commodity swaps
0.1
0.1
–
–
Net derivative cash
outflows/(inflows)
39.3
19.0
20.3
–
30 September 2023
Contractual
cash flows (1)
$mill
0 – 12
months
$mill
1 – 5
years
$mill
More than
5 years
$mill
Non-derivative financial liabilities
Interest bearing liabilities
1,731.7
21.1
976.4
734.2
Interest payments
325.7
57.0
220.7
48.0
Trade and other payables
1,070.1
1,059.3
10.8
–
Lease liabilities
284.9
42.0
95.0
147.9
Bank guarantees
89.1
71.0
17.8
0.3
Total non-derivative
cash outflows
3,501.5
1,250.4
1,320.7
930.4
Derivative financial (assets)/liabilities
Forward exchange
contracts(2)
(4.1)
(4.1)
–
–
Cross currency interest
rate swaps(2)
(10.7)
–
(10.7)
–
Interest rate swaps
102.9
36.4
66.3
0.2
Commodity swaps
0.5
0.5
–
–
Net derivative cash
outflows/(inflows)
88.6
32.8
55.6
0.2
(1) Contractual cash flows are not discounted, and are based on foreign exchange rates at year end. Any subsequent movements in foreign exchange rates could impact the actual cash flows
on settlement of these assets and liabilities.
(2) The forward exchange contracts and cross currency interest rate swaps asset positions have been added for completeness and there is no material liability positions associated with these instruments.
Liquidity risk: The risk that the Group is not able to refinance its debt obligations or meet other cash outflow
obligations when required.
Key accounting policies
Provisions are measured at management’s estimate of the expenditure
required to settle the obligation. This estimate is based on a “present
value” calculation, which involves the application of a discount rate
to the expected future cash flows associated with settlement. The
discount rate takes into account factors such as risks specific to the
liability and the time value of money.
Employee entitlements
Provisions are made for liabilities to employees for annual leave,
long service leave and other employee entitlements. Where the
payment to employees is expected to take place in 12 months
time or later, a present value calculation is performed. In this
instance, the corporate bond rate is used to discount the liability
to its present value.
Restructuring and rationalisation
Provisions for restructuring or rationalisation are only recognised
when a detailed plan has been approved and the restructuring or
rationalisation has either commenced or been publicly announced.
Environmental
Provisions relating to the remediation of soil, groundwater, untreated
waste and other environmental contamination are made when the
Group has an obligation to carry out the clean-up operation as a result
of a past event. In addition, a provision will only be made where it is
possible to reliably estimate the costs involved.
Asset retirement
In certain circumstances, the Group has an obligation to dismantle
and remove an asset and to restore the site on which it is located.
The present value of the estimated costs of this process is recognised
as part of the asset that is depreciated and also as a provision.
At each reporting date, the provision is remeasured in line with
changes in discount rates and the timing and amount of future
estimated cash flows. Any changes in the provision are added to
or deducted from the related asset, other than changes associated
with the passage of time which is recognised as a borrowing cost
in the profit or loss.
Legal and other
There are a number of legal claims and other exposures, including
claims for damages arising from products and services supplied
by the Group, that arise from the ordinary course of business.
A provision is only made where it is probable that a payment
or restitution will be required and the costs involved can be
reliably estimated.
Contingencies
The following contingent liabilities are considered unlikely.
However the directors consider they should be disclosed:
» The Group is regularly subject to investigations and audit
activities by the revenue authorities of jurisdictions in which
the Group operates. The outcome of these investigations
and audits depends upon several factors which may result in
further tax payments or refunds of tax payments already made
by the Group over and above existing provisions.
» Contingent liabilities arise in the normal course of business
and include a number of legal claims, environmental cleanup
requirements and bank guarantees.
» In May 2023, IPL announced entry into a new long-term gas
supply agreement for the Moranbah ammonium nitrate
plant with wholly owned subsidiaries of Queensland Pacific
Metals Ltd (QPM). IPL have provided QPM with a corporate
guarantee until February 2025 to guarantee performance of
contracts relating to operations of the Moranbah gas project.
The value of the guarantee reduces on a monthly basis until
the obligations of QPM have been satisfied. At 30 September
2024, this guarantee has not been called upon. It is anticipated
that QPM will draw down approximately $20.0m under the
Corporate Guarantee Facility in the 2025 financial year with
repayments expected to comment in April 2026.
The Directors are of the opinion that no additional provisions are
required in respect of these matters, as it is either not probable
that a future sacrifice of economic benefits will be required or
the amount is not capable of reliable measurement.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17. Provisions and contingencies
Provisions at 30 September 2024 are analysed as follows:
30 September 2024
Employee
entitlements
$mill
Restructuring and
rationalisation
$mill
Environmental
$mill
Asset retirement
obligations
$mill
Legal
and other
$mill
Total
provisions
$mill
Carrying amount at 1 October 2023
61.3
20.6
40.5
93.6
25.5
241.5
Adjustment due to change in discount rates
–
–
–
4.9
–
4.9
Provisions made during the year
17.6
29.6(1)
21.0 (2)
21.7
15.3
105.2
Provisions written back during the year
(2.2)
–
–
–
–
(2.2)
Payments made during the year
(6.8)
(14.0)
(7.3)
(0.5)
(27.0)
(55.6)
Interest unwind
0.7
–
2.3
3.9
–
6.9
Foreign exchange movement
(0.2)
(0.7)
(1.6)
(1.2)
(1.1)
(4.8)
Carrying amount at 30 September 2024
70.4
35.5
54.9
122.4
12.7
295.9
Current
67.6
26.8
33.2
1.2
11.2
140.0
Non-current
2.8
8.7
21.7
121.2
1.5
155.9
(1) Includes individually material items of $26.6m.
(2) Includes individually material items of $16.9m.
Key estimates and judgements
Provisions are based on the Group’s estimate of the timing
and value of outflows of resources required to settle or
satisfy commitments and liabilities known to the Group
at the reporting date.
FINANCIAL REPORT
FINANCIAL REPORT
112
Incitec Pivot Limited Annual Report 2024
113
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Sensitivity to foreign exchange rate movements during the year
(unhedged)
The table below shows the impact of a 1 cent movement in the
AUD:USD foreign exchange rate on the Group’s profit before
tax, in relation to sales and earnings during the year that were
denominated in USD.
+ 1c
AUD:USD
AUD mill
2024
- 1c
AUD:USD
AUD mill
2024
+ 1c
AUD:USD
AUD mill
2023
- 1c
AUD:USD
AUD mill
2023
USD Fertiliser sales from
Australian plants
(9.5)
9.8
(12.9)
13.3
North American USD
earnings
(3.9)
4.0
(8.7)
8.9
The fertiliser sales sensitivity calculation is based on actual tonnes
manufactured by the Australian fertiliser plants and sold during
the year, the average AUD:USD exchange rate for the year, and
the average USD fertiliser price.
The North American earnings translation sensitivity calculation
is based on the earnings before interest and tax from the North
American business for the year and the average AUD:USD
exchange rate for the year.
Interest rate risk
Source of risk
Exposure to interest rate risk is a result of the effect of changes in
interest rates on the Group’s outstanding interest bearing liabilities
and derivative instruments.
Risk mitigation
The exposure to interest rate risk is mitigated by maintaining a mix
of fixed and variable interest rate borrowings and by entering into
interest rate derivative instruments.
Outstanding financial instruments and sensitivity analysis
The tables below include the Group’s derivative contracts that are exposed to changes in interest rates at 30 September:
Interest rate swaps
Average
pay/(rec)
fixed rate
SOFR
Average
pay/(rec)
fixed rate
BBSW
Average
pay/(rec)
fixed rate
HIBOR
Duration
(years)
Net
contract
amounts
mill
2024
1 to 5 years
(1.48%)
–
–
3.5 USD 400
1 to 5 years
–
–
(4.13%)
1.4 HKD 560
2023
Less than 1 year
–
(0.25%)
–
1.0
AUD 181
1 to 5 years
(0.71%)
–
–
3.8
USD 200
1 to 5 years
–
–
(4.13%)
2.4
HKD 560
Later than 5 years
(2.02%)
–
–
5.1
USD 200
Interest rate sensitivity on outstanding financial instruments
The following table shows the sensitivity of the Group’s profit
before tax to a 1 per cent change in interest rates. The sensitivity
is calculated based on the Group’s interest bearing liabilities and
derivative financial instruments that are exposed to interest rate
movements and the AUD:USD exchange rate at 30 September:
Interest rate sensitivity
+ 1%
AUD mill
2024
- 1%
AUD mill
2024
+ 1%
AUD mill
2023
- 1%
AUD mill
2023
SOFR
(6.0)
6.0
(6.4)
6.4
BBSW
(1.0)
1.0
(2.8)
2.8
The sensitivity above is also representative of the Group’s interest
rate exposures during the year.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Market risk: The risk that changes in foreign exchange rates, interest rates and commodity prices
will affect the Group’s earnings, cash flows and the carrying values of its financial instruments.
The Group only considers hedging to prevent unacceptable balance sheet events such as potential impacts on the Group’s credit ratings
and/or the possibility for debt covenant breaches. Any hedging performed in these circumstances would be executed using instruments
that allow as much participation in favourable movements while limiting downside risk to an acceptable level. An exception to this principle
is related to foreign exchange exposures on specific or bespoke transactions where managing the exposure is important for margin
management.
Foreign exchange risk
Source of risk
The Group is exposed to changes in foreign exchange rates
(primarily in USD) on the following transactions and balances:
» Sales and purchases
» Trade receivables and trade payables
» Interest bearing liabilities
The Group is also exposed to foreign exchange movements
(primarily in USD) on the translation of the earnings, assets
and liabilities of its foreign operations.
Risk mitigation
Foreign exchange exposure to sales and purchases is managed
by entering into formal hedging arrangements.
The Group hedges both specific transactions and net exposures
by entering into foreign exchange rate derivative contracts.
Outstanding financial instruments and sensitivity analysis
The table below summarises the Group’s exposure to movements in the AUD:USD exchange rate and the derivative financial instruments
that are in place to hedge these exposures at 30 September:
2024
USD mill
2023
USD mill
Transactional exposures
Cash(1)
244.1
–
Trade and other receivables
1.1
46.1
Trade and other payables (1)
(339.9)
(136.6)
Gross exposure (before hedging)
(94.7)
(90.5)
Hedge of transactional exposures
Trade and other receivables
Forward exchange contracts
–
(45.3)
Trade and other payables
Forward exchange contracts
84.4
133.7
Total hedge contract values
84.4
88.4
Net exposure (after hedging)
(10.3)
(2.1)
2024
USD mill
2023
USD mill
Hedge of forecast sales and purchases
Forward exchange contracts
(63.7)
(36.1)
Foreign exchange options
–
(60.0)
Total hedge contract values
(63.7)
(96.1)
2024
USD mill
2023
USD mill
Translational exposures
Net investment in foreign operations
1,014.0
2,219.8
Gross exposure (before hedging)
1,014.0
2,219.8
Hedge of translational exposures
Interest bearing liabilities
(500.0)
(500.0)
Total hedge contract values
(500.0)
(500.0)
Net exposure (after hedging)
514.0
1,719.8
(1) Cash balance at September 2024 was held to pay USD obligations including outstanding tax
liability relating to the Waggaman sale.
Foreign exchange options
Net contract
amounts
mill
2024
Strike (1)
2024
Net contract
amounts
mill
2023
Strike (1)
2023
Contracts maturing within 1 year
Bought AUD Call
–
N/A
USD 60
0.73
Sold AUD Put
–
N/A
USD 60
0.60
(1) AUD:USD foreign exchange rate
Foreign exchange rates
The AUD:USD foreign exchange rates used by the Group to
translate its foreign denominated earnings, assets and liabilities
are set out below:
2024
AUD:USD
2023
AUD:USD
30 September foreign exchange rate
0.6920
0.6427
Average foreign exchange rate for the year
0.6593
0.6661
Foreign exchange rate sensitivity on outstanding financial
instruments
The table below shows the impact of a 1 cent movement (net of
hedging) in the AUD:USD exchange rate on the Group’s profit and
equity before tax in relation to foreign denominated assets and
liabilities at 30 September:
+ 1c
AUD:USD
AUD mill
2024
- 1c
AUD:USD
AUD mill
2024
+ 1c
AUD:USD
AUD mill
2023
- 1c
AUD:USD
AUD mill
2023
Foreign exchange sensitivity – (net of hedging)
Trade and other receivables
and payables – (profit or loss)
(0.1)
0.1
(0.2)
0.2
Hedge of forecast
transactions – (equity)
1.3
(1.3)
0.9
(0.9)
Investments in foreign
operations – (equity)
(10.6)
10.9
(41.0)
42.3
FINANCIAL REPORT
FINANCIAL REPORT
114
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115
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Included in the table below are details of the Group’s derivative instruments at 30 September 2024, classified by hedge accounting type and
market risk category:
Balance at 30 September 2024
During the period
30 September 2024
Note
Carrying
amount of
hedging
instrument
asset
$mill
Carrying
amount of
hedging
instrument
liability
$mill
Fair value
hedge
adjustment of
hedged item
$mill
Balance
of gains/
(losses) in
reserves
before tax
$mill
Gains/
(losses)
recognised
in reserves(1)
$mill
Reclassification
of (gains)/ losses
from reserves to
profit or loss(1,4)
$mill
Cash flow hedges
Foreign exchange risk on forecast sales & purchases
Forward exchange contracts
2.1
(1.9)
–
1.5
2.1
–
Foreign exchange options
–
–
–
–
0.8
–
Discontinued hedge (2)
–
–
–
1.3
4.2
(3.6)
Commodity price risk on forecast purchases
Commodity swaps
0.3
(0.3)
–
(0.1)
0.3
–
Discontinued hedge (2)
–
–
–
–
(1.3)
1.1
Interest rate risk on highly probable debt
Discontinued hedge (2)
–
–
–
(13.4)
–
13.6
Total cash flow hedges
2.4
(2.2)
–
(10.7)
6.1
11.1
Net investment hedges
Foreign exchange risk on foreign operation
Interest bearing liabilities
–
–
–
(75.6)
55.4
–
Discontinued hedge (2)
–
–
–
(187.0)
–
344.7
Total net investment hedges
–
–
–
(262.6)
55.4
344.7
Fair value hedges
Foreign exchange risk on HKD borrowings
Cross currency interest rate swaps
3.3
–
(3.5)
–
–
–
Interest rate risk on fixed USD and HKD bonds (3)
Interest rate swaps
–
(39.7)
43.0
–
–
–
Discontinued hedge
–
–
1.9
–
–
–
Total fair value hedges
(8)
3.3
(39.7)
41.4
–
–
–
Equity instruments
–
–
–
(17.0)
–
–
Total net
5.7
(41.9)
41.4
(290.3)
61.5
355.8
(1) Gains or losses recognised in the reserves will be reclassified to the same line item in the profit or loss as the underlying hedged item when the underlying forecast transaction occurs.
(2) Gains or losses on discontinued hedges that were in cash flow hedge or net investment hedge relationships remain in the reserves until the underlying transactions occur or upon disposal
of the underlying net investment. Any changes in the market value of the discontinued hedges are recognised in the profit or loss from discontinuation. Gains or losses on net investment hedges offset
the gains or losses on translation of foreign owned subsidiaries into AUD. A portion of the discontinued net investment hedges was released to the profit or loss with the completion of the sale of
Waggaman.
(3) Interest rate swap contracts effectively convert USD400m and HKD560m of the Group’s fixed interest rate borrowings to floating interest rates. The fair value hedge adjustment
of a hedged item where the hedging instrument is discontinued remains in the carrying amount of the hedged item and is amortised to the profit or loss over the life of the hedged item.
(4) At 30 September 2024, there were no gains/losses that were transferred from reserves to profit or loss in relation to ineffective hedges.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Commodity price risk
Source of risk
Exposure to changes in commodity prices is by virtue of the
products that the Group sells and purchases in its manufacturing
operations, and can be categorised into five main commodities,
namely: Ammonia, Ammonium Nitrate, Ammonium Phosphate,
Urea and Natural Gas.
Risk mitigation
Where possible, commodity price risk exposure is managed by
entering into long-term contracts with customers and suppliers
(i.e Ammonium Nitrate and Ammonia) or derivative contracts for
input cost (i.e US natural gas). However, in some instances price risk
exposure cannot be economically mitigated by either contractual
arrangements or derivative contracts by virtue of the products that
the Group sells.
Outstanding financial instruments and sensitivity analysis
The table below includes the Group’s derivative contracts that are
exposed to changes in natural gas prices at 30 September:
Natural gas
Total
volume
(MMBTU)(1)
2024
Price/
Strike
USD (2)
2024
Total
volume
(MMBTU)(1)
2023
Price/
Strike
USD (2)
2023
Contracts maturing within 1 year
Natural gas swaps
fixed payer
80,000
3.80
480,000
3.80
Contracts maturing between 1 and 5 years
Natural gas swaps
fixed payer
–
–
80,000
3.80
(1) Million Metric British Thermal Units
(2) Nymex Henry Hub gas price
Natural gas price sensitivity on outstanding financial instruments
The table below shows the sensitivity of the Group’s equity
before tax to a change of US 10c per MMBTU in the US Henry Hub
natural gas price. The sensitivity is based on natural gas derivative
contracts held by the Group at 30 September. Gains or losses
recognised in equity will be reclassified to the profit or loss as
the underlying forecast transaction occurs:
Natural gas price
sensitivity
+US 10c
per 1
MMBTU
AUD mill
2024
-US 10c
per 1
MMBTU
AUD mill
2024
+US 10c
per 1
MMBTU
AUD mill
2023
-US 10c
per 1
MMBTU
AUD mill
2023
Henry Hub
–
–
0.1
(0.1)
Sensitivity to natural gas price movements during the year
The table below shows the sensitivity of the Group’s profit before
tax to a change of US 10c per MMBTU in the Henry Hub natural gas
price. The sensitivity is based on the average natural gas price,
the average AUD:USD exchange rate (excluding the impact of
hedging) and the current annual natural gas consumption of
the Group’s manufacturing operations in the Americas that are
exposed to changes in natural gas prices:
Natural gas price
sensitivity
+US 10c
per 1
MMBTU
AUD mill
2024
-US 10c
per 1
MMBTU
AUD mill
2024
+US 10c
per 1
MMBTU
AUD mill
2023
-US 10c
per 1
MMBTU
AUD mill
2023
Henry Hub(1)
(0.7)
0.7
(3.8)
3.8
(1) The price sensitivity to Henry Hub relates to the Waggaman operations which was sold in FY24
Sensitivity to fertiliser price and ammonia movements during
the year
The table below shows the sensitivity of the Group’s profit before
tax to a US$10 per tonne change in Ammonium Phosphates,
Urea and Ammonia prices. The sensitivity is based on actual
tonnes manufactured and sold by the Group that is sensitive to
commodity price changes and the average AUD:USD exchange
rate (excluding the impact of hedging) for the year:
Price sensitivity
+ US$10
per tonne
AUD mill
- US$10
per tonne
AUD mill
2024
DAP/MAP (FOB China/Saudi)
11.2
(11.2)
Urea (FOB NOLA)
1.8
(1.8)
Ammonia (FOB Tampa)(2)
2.2
(2.2)
2023
Granular Urea (FOB Middle East)(1)
2.4
(2.4)
DAP/MAP (FOB China/Saudi)
12.4
(12.4)
Urea (FOB NOLA)
1.9
(1.9)
Ammonia (FOB Tampa)(2)
10.4
(10.4)
(1) The Group’s price sensitivity to Granular Urea (FOB Middle East) is nil in FY24 due to the Gibson
Island manufacturing closure in FY23.
(2) The price sensitivity to Ammonia (FOB Tampa) relates to the Waggaman operations, which was
sold in FY24.
FINANCIAL REPORT
FINANCIAL REPORT
116
Incitec Pivot Limited Annual Report 2024
117
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Credit risk: The risk of financial loss to the Group as a result of customers or counterparties to financial
assets failing to meet their contractual obligations.
Source of risk
The Group is exposed to counterparty credit risk from trade and
other receivables and financial instrument contracts that are
outstanding at the reporting date.
Risk mitigation
The Group minimises the credit risk associated with trade and
other receivables balances by undertaking transactions with
a large number of customers in various countries.
The creditworthiness of customers is reviewed prior to granting
credit, using trade references and credit reference agencies. Credit
limits are established and monitored for each customer, and these
limits represent the highest level of exposure that a customer can
reach. Trade credit insurance is purchased when required.
The Group mitigates credit risk from financial instrument contracts
by only entering into transactions with counterparties that have
sound credit ratings and, where applicable, with whom the Group
has a signed netting agreement. Given their high credit ratings,
the Group does not expect any counterparty to fail to meet its
obligations.
Credit risk exposure
The Group’s maximum exposure to credit risk at 30 September is
the carrying amount, net of any provision for impairment, of the
financial assets as detailed in the table below:
2024
$mill
2023
$mill
Trade and other receivables
670.1
597.9
Cash and cash equivalents
1,068.9
399.4
Derivative assets
5.7
16.9
1,744.7
1,014.2
Financial assets and financial liabilities that are subject to
enforceable master netting arrangements and are intended to
be settled on a net basis are offset in the Statement of Financial
Position. At 30 September 2024, the amount netted in other
financial assets and other financial liabilities is nil (2023: nil).
Fair value
Fair value of the Group’s financial assets and liabilities is calculated
using a variety of techniques depending on the type
of financial instrument as follows:
» The fair value of financial assets and financial liabilities traded
in active markets (such as equity securities and fixed interest
rate bonds) is the quoted market price at the reporting date.
» The fair value of financial assets and financial liabilities not
traded in active markets is calculated using discounted cash
flows. Future cash flows are calculated based on observable
forward interest rates and foreign exchange rates.
» The fair value of forward exchange contracts, interest rate
swaps, cross currency interest rate swaps, commodity swaps
and forward contracts is calculated using discounted cash
flows, reflecting the credit risk of various counterparties.
Future cash flows are calculated based on the contract rate,
observable forward interest rates and foreign exchange rates.
» The fair value of option contracts is calculated using the
contract rates and observable market rates at the end of
the reporting period, reflecting the credit risk of various
counterparties. The valuation technique is consistent with
the Black-Scholes methodology and utilises Monte Carlo
simulations.
» The fair value of commodity swaps and commodity forward
contracts is calculated using their quoted market price, where
available. If a quoted market price is not available, then fair
value is calculated using discounted cash flows. Future cash
flows are estimated based on the difference between the
contractual price and the current observable market price,
reflecting the credit risk of various counterparties. These future
cash flows are then discounted to present value.
» The nominal value less expected credit losses of trade
receivables and payables are assumed to approximate
their fair values due to their short term maturity.
Fair value hierarchy
The table below analyses financial instruments carried at fair
value by valuation method. The different levels have been
defined as follows:
» Level 1: quoted prices (unadjusted) in active markets
for identical assets or liabilities.
» Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
» Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
2024
Level 1
$mill
Level 2
$mill
Level 3
$mill
Derivative financial assets
–
5.7
–
Derivative financial liabilities
–
(41.9)
–
2023
Level 1
$mill
Level 2
$mill
Level 3
$mill
Derivative financial assets
–
16.9
–
Derivative financial liabilities
–
(96.8)
–
Fair value of financial assets and liabilities carried at amortised
cost
Cash and cash equivalents, trade and other receivables, and trade
and other payables are carried at amortised cost which equals
their fair value.
Interest bearing liabilities are carried at amortised cost and
have a carrying value of $1,684.1m (2023: $1,731.7m) – refer to
note 8. The fair value of the interest bearing financial liabilities
at 30 September 2024 was $1,694.3m (2023: $1,693.3m) and was
based on the level 2 valuation methodology.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Included in the table below are details of the Group’s derivative instruments at 30 September 2023, classified by hedge accounting type and
market risk category:
Balance at 30 September 2023
During the period
30 September 2023
Note
Carrying
amount of
hedging
instrument
asset
$mill
Carrying
amount of
hedging
instrument
liability
$mill
Fair value
hedge
adjustment of
hedged item
$mill
Balance
of gains/
(losses) in
reserves
before tax
$mill
Gains/
(losses)
recognised
in reserves(1)
$mill
Reclassification
of (gains)/ losses
from reserves to
profit or loss(1,4)
$mill
Cash flow hedges
Foreign exchange risk on forecast sales & purchases
Forward exchange contracts
5.5
(1.5)
–
(0.6)
2.8
–
Foreign exchange options
–
(0.8)
–
(0.8)
5.9
–
Discontinued hedge (2)
–
–
–
0.7
11.8
45.5
Commodity price risk on forecast purchases
Commodity swaps
0.1
(0.5)
–
(0.5)
(0.6)
–
Discontinued hedge (2)
–
–
–
0.2
(3.4)
3.4
Interest rate risk on highly probable debt
Interest rate swaps
–
–
–
–
(12.4)
–
Discontinued hedge (2)
–
–
–
(26.9)
12.1
13.2
Total cash flow hedges
5.6
(2.8)
–
(27.9)
16.2
62.1
Net investment hedges
Foreign exchange risk on foreign operation
Interest bearing liabilities
–
–
–
(131.0)
(9.7)
–
Discontinued hedge (2)
–
–
–
(531.7)
–
–
Total net investment hedges
–
–
–
(662.7)
(9.7)
–
Fair value hedges
Foreign exchange risk on HKD borrowings
Cross currency interest rate swaps
11.3
–
(10.7)
–
–
–
Interest rate risk on fixed USD, HKD and AUD bonds (3)
Interest rate swaps
–
(94.0)
98.4
–
–
–
Discontinued hedge
–
–
2.7
–
–
–
Total fair value hedges
(8)
11.3
(94.0)
90.4
–
–
–
Equity instruments
–
–
–
(17.0)
–
–
Total net
16.9
(96.8)
90.4
(707.6)
6.5
62.1
(1) Gains or losses recognised in the reserves will be reclassified to the same line item in the profit or loss as the underlying hedged item when the underlying forecast transaction occurs.
(2) Gains or losses on discontinued hedges that were in cash flow hedge or net investment hedge relationships remain in the reserves until the underlying transactions occur or upon disposal
of the underlying net investment. Any changes in the market value of the discontinued hedges are recognised in the profit or loss from discontinuation. Gains or losses on net investment hedges
offset the gains or losses on translation of foreign owned subsidiaries into AUD. A portion of the discontinued net investment hedges will be released to the profit or loss upon completion of the sale of
Waggaman.
(3) Interest rate swap contracts effectively convert USD400m, AUD181m and HKD560m of the Group’s fixed interest rate borrowings to floating interest rates. The fair value hedge adjustment
of a hedged item where the hedging instrument is discontinued remains in the carrying amount of the hedged item and is amortised to the profit or loss over the life of the hedged item.
(4) At 30 September 2023, there were no gains/losses that were transferred from reserves to profit or loss in relation to ineffective hedges.
FINANCIAL REPORT
FINANCIAL REPORT
118
Incitec Pivot Limited Annual Report 2024
119
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19. Share-based payments
Incentive Plans
The Long Term Incentive Plans (LTIs) are designed to link reward
with the key performance drivers that underpin sustainable growth
in shareholder value. With regard to the 2021/24 and 2022/25 LTIs,
the performance conditions comprise relative total shareholder
return, the delivery of certain long term value metrics, return on
invested capital and sustainability metrics. The 2023/26 LTI plan
consists of two components being performance rights and share
options, the performance measures attached to the performance
rights comprise of relative total shareholder return and return on
invested capital. The 2023/26 LTI share options are subject to an
absolute total shareholder return measure.
Certain Executives have been awarded performance rights under
Short Term Incentive Plans (STIs) based on financial, safety and
strategic outcomes.
These arrangements support the Company’s strategy for retention
and motivation of its executives.
Expenses arising from share-based payment
transactions
Total expenses arising from share-based payment transactions
recognised during the period as part of employee benefit expense
were as follows:
2024
$mill
2023
$mill
Accounting value of performance rights and
share options issued under the LTI and STI
performance plans
3.8
2.9
2024
Number
2023
Number
Number of performance rights outstanding
under the LTI and STI performance plans
4,262,265
5,302,195
Number of performance share options
outstanding under the LTI and STI performance
plans
12,312,761
–
Details of the movements in LTI and STI performance rights are
disclosed in the Remuneration Report for key management
personnel.
Key accounting policies
The rights to shares granted to employees under the terms of the
plans are measured at fair value. The fair value is recognised as
an employee expense over the period that employees become
unconditionally entitled to the rights. There is a corresponding
increase in equity, which is reflected in the share based payments
reserve.
The amount recognised as an expense is adjusted to reflect the
actual number of rights taken up, once related service and other
non-market conditions are met.
20. Key management personnel
disclosures
Key management personnel remuneration
2024
$000
2023
$000
Short-term employee benefits
8,844
7,988
Post-employment benefits
212
169
Other long-term benefits
132
58
Termination benefits
–
922
Share-based payments
1,200
1,471
10,388
10,608
Determination of key management personnel and detailed
remuneration disclosures are provided in the Remuneration Report.
Loans to key management personnel
In the year ended 30 September 2024, there were no loans to key
management personnel and their related parties (2023: nil).
Other key management personnel transactions
In the year ended 30 September 2024, there were no material
transactions entered into during the year with key management
personnel (including their related parties).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: RISK MANAGEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Key accounting policies
Foreign currency transactions and balances
The Group presents its accounts in Australian dollars. Foreign
currency transactions are translated into Australian dollars using
the exchange rates at the date the transaction occurs.
Monetary assets (such as trade receivables) and liabilities (such as
trade payables) denominated in foreign currencies are translated
into Australian dollars using the exchange rate at 30 September.
Non-monetary items (for example, plant and machinery) that
are measured at historical cost in a foreign currency are not
re-translated.
Foreign exchange gains and losses relating to transactions are
recognised in the profit or loss with the exception of gains and
losses arising from cash flow hedges and net investment hedges
that are recognised in other comprehensive income.
Foreign operations
The assets and liabilities of the Group’s foreign operations are
translated at applicable exchange rates at 30 September. Income
and expense items are translated at the average exchange rates
for the period.
Foreign exchange gains and losses arising on translation are
recognised in the foreign currency translation reserve (FCTR).
If and when the Group disposes of the foreign operation, these
gains and losses are transferred from the FCTR to the profit
or loss.
Derivatives and hedging
The Group uses contracts known as derivative financial instruments
to hedge its financial risk exposures.
On entering into a hedging relationship, the Group formally
designates and documents details of the hedge, risk management
objective and strategy for entering into the arrangement. The
Group applies hedge accounting to hedging relationships that are
expected to be highly effective in offsetting changes in fair value,
i.e. where the cash flows arising from the hedge instrument closely
match the cash flows arising from the hedged item.
Hedge accounting is discontinued when:
» The hedging relationship no longer meets the risk
management objective.
» The hedging instrument expires or is sold, terminated
or exercised.
» The hedge no longer qualifies for hedge accounting.
Derivatives are measured at fair value. The accounting treatment
applied to specific types of hedges is set out below.
Cash flow hedges
Changes in the fair value of effective cash flow hedges are
recognised in equity, in the cash flow hedge reserve. To the
extent that the hedge is ineffective, changes in fair value are
recognised in the profit or loss.
Fair value gains or losses accumulated in the reserve are taken
to profit or loss when the hedged item affects profit or loss.
When the hedged item is a non-financial asset, the amount
recognised in the reserve is transferred to the carrying amount
of the asset when the asset is purchased.
Net investment hedges
Hedges of a net investment in a foreign operation are accounted
for in a similar way as cash flow hedges. Gains or losses on the
effective portion of the hedge are recognised directly in equity
(in the FCTR) while any gains or losses relating to the ineffective
portion are recognised in the profit or loss.
On disposal of the foreign operation, the cumulative value of gains
or losses recognised in the FCTR are transferred to profit or loss.
Fair value hedges
The change in the fair value of the hedging instrument and the
change in the hedged item are recognised in the profit or loss.
Hedge ineffectiveness
The Group aims to transact only highly effective hedge
relationships, and in most cases the hedging instruments have
a 1:1 hedge ratio with the hedged items. However, at times, some
hedge ineffectiveness can arise and is recognised in profit or loss in
the period in which it occurs. Key sources of hedge ineffectiveness
for the Group are as follows:
» Maturity dates of hedging instruments not matching the
maturity dates of the hedged items.
» Credit risk inherent within the hedging instrument not
matching the movement in the hedged item.
» Interest rates of the Group’s financing facilities not matching
the interest rates of the hedging instrument.
» Forecast transactions not occurring.
Classification of financial instruments
Financial instruments are classified into the following categories:
» Amortised cost (cash and cash equivalents, interest bearing
liabilities and trade and other receivables and payables).
» Fair value through other comprehensive income
(listed equity securities).
» Fair value through profit or loss (derivative financial
instruments except those that are in a designated hedge
relationship).
FINANCIAL REPORT
FINANCIAL REPORT
120
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121
Incitec Pivot Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22. Deed of cross guarantee
Entities that are party to a Deed of Cross Guarantee are included in
note 16. The Statement of Profit or Loss and Other Comprehensive
Income and the Statement of Financial Position for this closed
group are shown below:
Statement of Profit or Loss and Other Comprehensive
Income
2024
$mill
2023 (1)
$mill
(Loss)/profit before income tax
(775.5)
79.5
Income tax benefit/(expense)
215.6
(29.0)
(Loss)/profit for the year
(559.9)
50.5
Retained profits at 1 October
1,453.5
1,926.1
New entities added to the Deed
(92.4)
–
(Loss)/profit for the year
(559.9)
50.5
Other movements in retained earnings
0.7
1.3
Dividend paid
(378.2)
(524.4)
Retained profits at 30 September
423.7
1,453.5
Statement of Financial Position
2024
$mill
2023 (1)
$mill
Current assets
Cash and cash equivalents
917.7
197.4
Trade and other receivables
–
453.7
Inventories
487.2
480.4
Other assets
42.3
25.3
Other financial assets
2.1
5.6
Current tax assets
68.3
90.7
Total current assets
1,517.6
1,253.1
Non-current assets
Other financial assets
2,993.8
5,249.4
Property, plant and equipment
1,574.0
2,176.7
Right-of-use lease assets
123.5
104.3
Exploration and evaluation assets
3.5
8.7
Intangible assets
67.6
251.6
Deferred tax assets
230.3
175.4
Total non-current assets
4,992.7
7,966.1
Total assets
6,510.3
9,219.2
Current liabilities
Trade and other payables
598.7
897.5
Lease liabilities
18.6
16.4
Other financial liabilities
1.9
9.3
Provisions
115.3
84.2
Total current liabilities
734.5
1,007.4
Non-current liabilities
Trade and other payables
123.9
895.7
Lease liabilities
129.8
111.0
Interest bearing liabilities
1,233.5
1,261.3
Other financial liabilities
39.7
87.1
Provisions
123.5
86.1
Deferred tax liabilities
226.6
405.2
Retirement benefit obligation
(1.1)
0.9
Total non-current liabilities
1,876.0
2,847.3
Total liabilities
2,610.5
3,854.7
Net assets
3,899.9
5,364.5
Equity
Issued capital
3,354.7
3,806.2
Reserves
121.5
104.8
Retained earnings
423.7
1,453.5
Total equity
3,899.9
5,364.5
23. Parent entity disclosure
Throughout the financial year ended 30 September 2024
the parent company of the Group was Incitec Pivot Limited.
Parent entity guarantees in respect of debts
of its subsidiaries
The parent entity is part of a Deed of Cross Guarantee, under which
each entity guarantees the debt of the others.
Statement of Profit or Loss and Other Comprehensive
Income
Results of the parent entity
2024
$mill
2023
$mill
Profit/(loss) for the year
23.8
(139.8)
Other comprehensive income
6.5
63.4
Total comprehensive profit/(loss) for the year
30.3
(76.4)
Statement of Financial Position
2024
$mill
2023
$mill
Current assets
1,604.3
673.8
Total assets
8,492.9
8,777.3
Current liabilities
847.1
576.8
Total liabilities
4,960.2
4,445.2
Net assets
3,532.7
4,332.1
Share capital
3,354.7
3,806.2
Reserves
(0.6)
(6.4)
Retained earnings
178.6
532.3
Total equity
3,532.7
4,332.1
Parent entity contingencies and commitments
Contingent liabilities of Incitec Pivot Limited are disclosed
in note 17.
Capital expenditure – commitments
2024
$mill
2023
$mill
Contracted but not yet provided for and payable:
Within one year
3.8
4.7
Tax consolidation
The Company and its wholly-owned Australian resident entities
have formed a tax consolidated group. As a result it is taxed as
a single entity. The head entity of the tax consolidated group is
Incitec Pivot Limited.
(1) FY23 has not been restated for new entities added to the Deed of Cross Guarantee
during FY24.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21. Retirement benefit obligation
The Group operates a number of defined benefit plans in the
Americas and Asia Pacific to provide benefits for employees
and their dependants on retirement, disability or death.
The Group also makes contributions to defined contribution
schemes.
Financial position and performance
Net defined benefit obligation at 30 September
2024
$mill
2023
$mill
Present value of obligations
78.4
78.0
Fair value of plan assets
(60.2)
(59.2)
Net defined benefit obligation
18.2
18.8
Maturity profile of the defined benefit obligation
The expected maturity analysis of the undiscounted defined
benefit obligation is as follows:
2024
$mill
2023
$mill
Within next 10 years
62.5
61.6
Within 10 to 20 years
57.4
54.8
In excess of 20 years
41.9
42.4
Return on plan assets for the year ended 30 September
2024
$mill
2023
$mill
Actual return on plan assets
5.9
12.7
Composition of plan assets at 30 September
2024
2023
The percentage invested in each asset class:
Equities
40%
40%
Fixed interest securities
32%
32%
Property
17%
18%
Other
11%
10%
Movements in plan assets/liabilities
Amounts recognised in Other Comprehensive Income
Notes
2024
$mill
2023
$mill
Losses arising from changes in acturial
assumptions
(0.6)
(4.9)
Return on plan assets greater than
discount rate
2.7
3.2
Total profit/(loss) recognised in other
comprehensive income
2.1
(1.7)
Amounts recognised in Profit or Loss
Net interest expense
(2)
(1.3)
(1.0)
Defined benefit superannuation expense
(2)
(1.3)
(7.1)
Key assumptions and sensitivities
Principal actuarial assumptions
2024
2023
Discount rate (gross of tax)
3.5% - 9.4%
5.3% - 9.4%
Future salary increases
2.5% - 5.0%
3.5% - 5.0%
Sensitivity analysis
The sensitivity analysis is based on a change in a significant
actuarial assumption while holding all other assumptions constant.
The following table summarises how the defined benefit obligation
as at 30 September 2024 would have increased/(decreased) as a
result of a change in the respective assumption by 1 percentage
point:
1 percent
increase
1 percent
decrease
Discount rate
(7.2)
4.6
Rate of salary increase
0.8
(1.3)
Key accounting policies
All employees of the Group are entitled to benefits from the
Group’s superannuation plan on retirement, disability or death
or can direct the Group to make contributions to a defined
contribution plan of their choice. The Group’s superannuation plan
has a defined benefit section and a defined contribution section.
The defined benefit section provides defined lump sum benefits
based on years of service and final average salary. The defined
contribution section receives fixed contributions from group
companies and the Group’s legal or constructive obligation is
limited to these contributions.
The liability or asset recognised in the Consolidated Statement of
Financial Position in respect of defined benefit superannuation
plans is the present value of the defined benefit obligation at the
end of the reporting period less the fair value of plan assets.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the Consolidated
Statement of Changes in Equity and in the Consolidated Statement
of Financial Position.
Changes in the present value of the defined benefit obligation
resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service costs.
Contributions to the defined contribution section of the Group’s
superannuation fund and other independent defined contribution
superannuation funds are recognised as an expense as they
become payable.
Key estimates and judgements
The present value of the defined benefit obligation at
the reporting date is based on expected future payments
arising from membership of the fund. This is calculated
annually by independent actuaries considering the expected
future wage and salary levels of employees, experience of
employee departures and employee periods of service.
Expected future payments are discounted using market
yields on corporate bonds at the reporting date, which have
terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
FINANCIAL REPORT
FINANCIAL REPORT
122
Incitec Pivot Limited Annual Report 2024
123
Incitec Pivot Limited Annual Report 2024
Consolidated Entity Disclosure Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Consolidated Entity Disclosure Statement has been prepared in accordance with s.295(3A)(a) of the Corporations Act 2001 and includes
information for each subsidiary of the Incitec Pivot Limited Group as at 30 September 2024.
Consolidated Entity Disclosure Statement as at 30 September 2024
Entity name
Entity type
Trustee,
partner of
participant
in JV
Country of
incorporation
% of
share
capital
held
Australian
tax resident
or foreign
tax resident
Foreign tax
jurisdiction
(if applicable)
Note
Incitec Pivot Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Incitec Fertilisers Operations Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
TOP Australia Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Incitec Pivot Fertilisers Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Southern Cross International Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel LTI Plan Company Pty Ltd
Body Corporate
Trustee
Australia
100%
Australian
N/A
Dyno Nobel Explosives Holdings Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Queensland Operations Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Investments 1 Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Investments 2 Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Incitec Pivot US Holdings Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Finance Australia Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Europe Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Management Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Industrial Investments Australia Finance Pty
Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Asia Pacific Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Dampier Nitrogen Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
DNX Australia Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Moranbah Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Dyno Nobel Moura Pty Limited
Body Corporate
N/A
Australia
100%
Australian
N/A
Incitec Pivot Queensland Gas Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Easy Liquids Pty Ltd
Body Corporate
N/A
Australia
100%
Australian
N/A
Australian Bio Fert Pty Ltd
Body Corporate
N/A
Australia
64%
Australian
N/A
OZBIOFERT Pty Ltd
Body Corporate
N/A
Australia
64%
Australian
N/A
Dyno Nobel US Investments
Partnership
N/A
N/A
N/A
Foreign
USA
Dyno Nobel Management LLC
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Finance LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
a
Dyno Nobel Australia LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
Dyno Nobel SPS LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
a
Dyno Nobel Holdings IV LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
Dyno Nobel Holdings USA III, Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Holdings USA II
Partnership
N/A
N/A
N/A
Foreign
USA
Dyno Nobel Holdings USA II, Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Holdings USA, Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Transportation Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Simsbury Hopmeadow Street LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
Dyno Nobel Holdings V LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
Tradestar Corporation
Body Corporate
N/A
USA
100%
Foreign
USA
CMMPM, LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
c
CMMPM Holdings L.P.
Partnership
N/A
N/A
N/A
N/A
N/A
c
Dyno Nobel Louisiana Ammonia, LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
Nobel Labs, LLC
Body Corporate
N/A
USA
100%
Foreign
N/A
b
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24. Auditor’s remuneration
2024
$000
2023
$000
Deloitte and related network firms
Audit or review of financial reports
Group
1,571.0
1,410.2
Subsidiaries and joint operations
698.5
650.2
2,269.5
2,060.4
Other assurance and agreed-upon procedures under
other legislation or contractual arrangements not
required to be provided by the auditor
488.0
111.2
Other services:
Other consulting services
80.0
75.0
Total remuneration
2,837.5
2,246.6
Non-Deloitte audit firms
Audit services
285.0
329.4
Total remuneration of non-Deloitte audit firms
285.0
329.4
From time to time, the auditors provide other services to the
Group. These services are subject to strict corporate governance
procedures which encompass the selection of service providers
and the setting of their remuneration. The Audit and Risk
Management Committee must approve individual non audit
assurance engagements provided by the Group’s auditor above a
value of $100,000, as well as where the aggregate amount exceeds
$250,000 per annum.
25. Events subsequent to
reporting date
On 11 November 2024, IPL announced a final dividend of 6.3 cents
per share, unfranked, to be paid on 18 December 2024.
The record date for entitlement to this dividend is 4 December
2024. Based on the number of shares on issue at 30 September
2024, the total dividend payment will be $119.2m.
Other than the matters reported on above, the directors have not
become aware of any other significant matter or circumstance
that has arisen since the end of the financial year, that has affected
or may affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in subsequent years,
which has not been covered in this report.
FINANCIAL REPORT
FINANCIAL REPORT
124
Incitec Pivot Limited Annual Report 2024
125
Incitec Pivot Limited Annual Report 2024
Directors’ Declaration
on the Consolidated Financial Statements set out on pages 83 to 124
In accordance with a resolution of the directors of Incitec Pivot Limited (the Company), we state that:
1.
In the opinion of the directors:
(a) the consolidated financial statements and notes, set out on pages 83 to 124, are in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the financial position of the Company and the Group as at 30 September 2024 and of their
performance for the year ended on that date; and
(ii) complying with Accounting Standards in Australia (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
(b) the financial report also complies with International Financial Reporting Standards as disclosed on page 91; and
(c) there are reasonable grounds to believe the Company and the Group will be able to pay their debts as and when they become
due and payable.
2.
There are reasonable grounds to believe that the Company and the controlled entities identified in note 16 will be able to meet
any obligations or liabilities to which they are or may become subject by virtue of the Deed of Cross Guarantee between the
Company and those subsidiaries pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.
3.
The directors have been given the declaration by the Interim Chief Executive Officer and the Interim Chief Financial Officer as
required by section 295A of the Corporations Act 2001 for the financial year ended 30 September 2024.
4.
The consolidated entity disclosure statement set out on pages 123 to 124 required by section 295(3A) of the Corporations Act 2001
is true and correct.
Greg Robinson
Board Chair
Melbourne, 11 November 2024
Mauro Neves
CEO & Managing Director
Melbourne, 11 November 2024
Consolidated Entity Disclosure Statement as at 30 September 2024
Entity name
Entity type
Trustee,
partner of
participant
in JV
Country of
incorporation
% of
share
capital
held
Australian
tax resident
or foreign
tax resident
Foreign tax
jurisdiction
(if applicable)
Note
Mine Equipment & Mill Supply Company
Body Corporate
N/A
USA
100%
Foreign
USA
Controlled Explosives, Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Drisk Insurance Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Falconi Construction, Inc.
Body Corporate
N/A
USA
100%
Foreign
USA
Alpha Dyno Nobel
Body Corporate
N/A
USA
100%
Foreign
USA
Dyno Nobel Canada Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Dyno Nobel Transportation Canada Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Dyno Nobel Nunavut Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Dyno Nobel Finance Canada Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Polar Explosives 2000 Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Dene Dyno Nobel (Polar) Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Dyno Nobel Waggaman Inc.
Body Corporate
N/A
Canada
100%
Foreign
Canada
Incitec Pivot Holdings (Hong Kong) Limited
Body Corporate
N/A
Hong Kong
100%
Australia
N/A
Coltivi Insurance Pte Ltd
Body Corporate
N/A
Singapore
100%
Foreign
Singapore
Incitec Pivot Fertilisers (Singapore) Pte. Ltd.
Body Corporate
N/A
Singapore
100%
Foreign
Singapore
Dyno Nobel Explosivos Chile Limitada
Body Corporate
N/A
Chile
100%
Foreign
Chile
Dyno Nobel Peru S.A.
Body Corporate
N/A
Peru
100%
Foreign
Peru
Dyno Nobel Mexico, S.A. de C.V.
Body Corporate
N/A
Mexico
99.98%
Foreign
Mexico
DNX Papua New Guinea Ltd
Body Corporate
N/A
Papua New
Guinea
100%
Foreign
Papua New
Guinea
PT DNX Indonesia
Body Corporate
N/A
Indonesia
100%
Foreign
Indonesia
Nitromak Dnx Kimya Sanayii Anonim Sirketi
Body Corporate
N/A
Turkey
100%
Foreign
Turkey
RomNitro Explosives SRL
Body Corporate
N/A
Romania
100%
Foreign
Romania
Nitro Industria Kimike Shpk
Body Corporate
N/A
Albania
100%
Foreign
Albania
Dyno Nobel Holdings Europe SA
Body Corporate
N/A
Switzerland
100%
Foreign
Switzerland
Dyno Nobel Holdings France Sas
Body Corporate
N/A
France
100%
Foreign
France
Explinvest SASU
Body Corporate
N/A
France
100%
Foreign
France
Titanobel SASU
Body Corporate
N/A
France
100%
Foreign
France
Société d’Explosifs du Centre-Est SA
Body Corporate
N/A
France
99.9%
Foreign
France
Société Financière de Terrassement SAS
Body Corporate
N/A
France
99.51%
Foreign
France
Groupement Forestier Minez Clegueric
Body Corporate
N/A
France
66%
Foreign
France
Titanobel-NPGM Equipment SAS
Body Corporate
N/A
France
51%
Foreign
France
Titanobel Southern Africa (Pty) Limited
Body Corporate
N/A
South Africa
100%
Foreign
South Africa
Enviro Blasting Services (Pty) Limited
Body Corporate
N/A
South Africa
74%
Foreign
South Africa
Nord-Sud Dynamitage-Sofiter SARL
Body Corporate
N/A
France
51%
Foreign
France
Titanobel Benin SASU
Body Corporate
N/A
Benin
100%
Foreign
Benin
Titanobel Cameroun SASU
Body Corporate
N/A
Cameroon
100%
Foreign
Cameroon
Afrique Ouest Drilling Sofiter SARL
Body Corporate
N/A
Senegal
100%
Foreign
Senegal
a.
Entity is treated as "flow-through" for US federal income tax purposes and therefore, is not considered a tax resident of the US. However, it is treated as a part of a US tax resident entity.
For Australian tax purposes, the entity is treated as a partnership with Australian resident partners that are part of the Australian tax consolidated group.
b.
This entity is treated as "flow-through" for US federal income tax purposes and therefore, not considered a tax resident of the US. However, it is treated as part of a US tax resident entity.
c.
Entity is treated as "flow-through" for US federal income tax purposes and therefore, not considered a tax resident of the US. For Australian tax purposes, the entity is treated as a partnership
and is included in the Australian tax consolidated group.
Consolidated Entity Disclosure Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2024
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
126
Incitec Pivot Limited Annual Report 2024
127
Incitec Pivot Limited Annual Report 2024
Key Audit Matter
How the scope of our audit responded to the Key
Audit Matter
Carrying value of goodwill and non-current assets
Refer to Note 9 Property, plant and equipment, Note
11 Intangibles and Note 12 Impairment of goodwill
and non-current assets in the financial statements.
As at 30 September 2024, the Group held goodwill of
$1,732.8 million, intangible assets of $812.9 million
and property, plant and equipment of $2,435.9
million, which is allocated to the Group’s cash
generating units (CGUs).
As disclosed in Note 12, an impairment charge of
$195.8 million was recognised against goodwill and
$845.2 million against property, plant and equipment,
inventories, exploration and evaluation assets and
intangibles.
Goodwill is monitored and tested annually for
impairment at the operating segment level. An
assessment is made for indicators of impairment for
each CGU, including the individual operating asset
CGUs.
The assessment of the recoverable amount is subject
to a high level of judgement and is based on
management’s view of key variables and market
conditions. The Group has prepared a value-in-use
model to determine the recoverable amount of each
CGU with goodwill or where an indicator of
impairment was identified.
The Group’s Fertilisers and Phosphate Hill models are
highly sensitive to changes in key assumptions,
including natural gas prices, commodity prices, growth
rate and discount rate.
The Group’s Dyno Nobel Asia Pacific (“DNAP”) model
is highly sensitive to changes in terminal value
assumptions, including natural gas prices, growth rate,
and discount rate.
The Group’s St Helens model is highly sensitive to
changes in terminal value assumptions, including
commodity prices, growth rate and discount rate.
Forecast
assumptions
used
in
assessing
the
recoverable amount incorporate management’s
estimates of the potential impacts of climate change
through
sustainability
projects,
decarbonisation
initiatives and consideration of the estimated impact
of the Safeguard Mechanism 2.0, which are subject to
judgement.
Given the sensitivities of the assumptions in the
Fertilisers, Phosphate Hill, DNAP and St Helens
models, we consider the carrying value of goodwill
and non-current assets to be a Key Audit Matter.
Our procedures to assess the recoverable amounts of
the CGUs included, but were not limited to:
• Understanding the relevant controls and process
that management has undertaken to assess the
recoverable amounts;
• In conjunction with our valuation specialists:
o Evaluating the appropriateness of the models
used and the valuation techniques applied by
management;
o Testing the mechanics of the models; and
o Comparing the discount rates applied with an
independently developed rate.
• Assessing and challenging the key assumptions in
the models and terminal values by:
o Corroborating the key independent market
based assumptions to external analysts’
reports, published industry growth rates and
industry reports, considering the potential
impacts of climate change, including the
Safeguard Mechanism 2.0, where applicable;
o Corroborating the key non-market based
assumptions, including cash flows from
sustainability
projects,
the
Safeguard
Mechanism 2.0 and other Board approved
climate and de-carbonation initiatives, by
comparing Board approved forecasts to
historical performance to test the accuracy of
management’s forecasts;
o Agreeing contracted volumes and pricing
assumptions in the models to the Board
approved forecasts; and
o Performing a range of sensitivity analyses on
the key assumptions including discount rates,
natural gas prices and commodity prices used
in the cash flow forecasts.
We have also assessed the adequacy of the
disclosures included in Notes 9, 11, and 12 in the
financial statements.
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific and the Deloitte organisation
Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060
477 Collins Street
Melbourne VIC 3000
Tel: +61 3 9671 7000
www.deloitte.com.au
Independent Auditor’s Report
to the members of Incitec Pivot Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Incitec Pivot Limited (the “Company”) and its subsidiaries (the “Group”),
which comprises the consolidated statement of financial position as at 30 September 2024, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
material accounting policy information and other explanatory information, the directors’ declaration and the
consolidated entity disclosure statement.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
•
Giving a true and fair view of the Group’s financial position as at 30 September 2024 and of its financial
performance for the year then ended; and
•
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the “Code”) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matter
The key audit matter is the matter that, in our professional judgement, was of most significance in our audit of the
financial report for the current period. This matter was addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
128
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129
Incitec Pivot Limited Annual Report 2024
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the Group’s audit. We remain solely responsible for our
audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 60 to 81 of the Directors’ Report for the year ended
30 September 2024.
In our opinion, the Remuneration Report of Incitec Pivot Limited, for the year ended 30 September 2024, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
Suzana Vlahovic
Terry Ludeman
Partner
Partner
Chartered Accountants
Chartered Accountants
Melbourne, 11 November 2024
Melbourne, 11 November 2024
Other Information
The directors are responsible for the other information. The other information comprises the Directors’ Report,
which we obtained prior to the date of the auditor’s report, and also includes the following information which will
be included in the Group’s annual report (but does not include the financial report and our auditor’s report
thereon): About Us, Performance and Outlook, Being a Sustainability Business, Governance, and Additional
Information, which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible:
•
For the preparation of the financial report in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group in accordance with Australian
Accounting Standards; and
•
For such internal control as the directors determine is necessary to enable the preparation of the financial
report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
130
Incitec Pivot Limited Annual Report 2024
131
Incitec Pivot Limited Annual Report 2024
Achieving Zero Harm
for Everyone Everywhere
is our number one
priority as a business.
Additional
Information
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
132
Incitec Pivot Limited Annual Report 2024
133
Incitec Pivot Limited Annual Report 2024
Five Year Financial Statistics
(1) The above results include continuing and discontinued operations for the consolidated Group.
Incitec Pivot Limited and its controlled entities(1)
2024
$mill
2023
$mill
2022
$mill
2021
$mill
2020
$mill
Sales
5,364.9
6,008.1
6,315.3
4,348.5
3,942.2
Earnings before depreciation, amortisation, net borrowing costs, individually material
items (IMIs) and tax
924.8
1,215.4
1,857.7
934.9
730.5
Depreciation and amortisation (excluding IMI's)
(345.0)
(335.6)
(372.5)
(368.5)
(356.0)
Earnings before net borrowing costs, IMIs and tax (EBIT)
579.8
879.8
1,485.2
566.4
374.5
Net borrowing costs (excluding IMIs)
(104.4)
(148.7)
(107.2)
(112.8)
(135.7)
IMIs before tax
(748.6)
(30.8)
(19.2)
(293.4)
(87.9)
Taxation (expense) / benefit
(38.6)
(140.5)
(345.0)
(11.1)
(27.5)
Operating (loss)/profit after tax and IMIs
(311.8)
559.8
1,013.8
149.1
123.4
Operating (loss)/profit after tax and IMIs attributable to non-controlling interest
(0.9)
(0.2)
0.1
–
–
Operating (loss)/profit after tax and IMIs attributable to shareholders of Incitec Pivot Limited
(310.9)
560.0
1,013.7
149.1
123.4
IMIs after tax
(711.7)
(22.1)
(13.4)
(209.5)
(64.8)
Operating profit after tax before IMIs (net of tax)
400.8
582.1
1,027.1
358.6
188.2
Dividends paid
378.2
524.4
355.4
19.4
54.6
Current assets
2,672.3
4,253.2
2,654.3
1,819.4
1,529.9
Property, plant and equipment
2,435.9
3,191.4
4,246.9
3,928.9
4,071.7
Equity accounted investments
417.9
404.8
379.4
324.8
326.3
Intangible assets
2,545.7
2,394.4
3,281.4
3,000.9
3,019.7
Other non-current assets
326.6
301.5
301.7
316.6
343.4
Total assets
8,398.4
10,545.3
10,863.7
9,390.6
9,291.0
Current borrowings, payables and other liabilities
1,191.9
1,198.6
1,658.6
1,427.1
1,227.2
Current provisions
140.0
108.8
166.7
101.3
102.3
Non-current borrowings, payables and other liabilities
2,065.7
2,678.5
2,578.1
2,284.6
2,632.7
Non-current provisions
155.9
132.7
170.6
209.0
125.5
Total liabilities
3,553.5
4,118.6
4,574.0
4,022.0
4,087.7
Net assets
4,844.9
6,426.7
6,289.7
5,368.6
5,203.3
Shareholders’ equity
4,845.9
6,426.8
6,289.6
5,368.6
5,203.3
Equity attributable to non-controlling interest
(1.0)
(0.1)
0.1
–
–
Total shareholders’ equity
4,844.9
6,426.7
6,289.7
5,368.6
5,203.3
Ordinary Shares
thousands
1,892,102
1,942,225
1,942,225
1,942,225
1,942,225
Number of shares on issue at year end
thousands 1,892,102 1,942,225 1,942,225 1,942,225 1,942,225
Weighted average number of shares on issue (investor and ordinary)
thousands
1,935,814
1,942,225
1,942,225
1,942,225
1,734,435
Earnings per share
before IMIs
cents
20.7
30.0
52.9
18.5
10.9
including IMIs
cents
(16.1)
28.8
52.2
7.7
7.1
Dividends (declared)
cents
20.8
15.0
27.0
9.3
–
Dividends (paid)
cents
19.5
27.0
18.3
1.0
3.4
Dividend franking
%
–
40
100
24
–
Share price range
High
$3.20
$4.14
$4.06
$2.94
$3.63
Low
$2.63
$2.62
$2.97
$1.92
$1.67
Year end
$3.11
$3.14
$3.51
$2.94
$2.03
Stockmarket capitalisation at year end
$mill
5,884.4
6,098.6
6,817.2
5,710.1
3,942.7
Net tangible assets per share
$
1.22
1.60
1.55
1.22
1.12
Net Debt/EBITDA
times
0.8
1.2
0.5
1.1
1.4
Interest Cover
times
12.5
9.9
20.3
9.7
6.1
Net capital expenditure on plant and equipment (cash flow)
$mill
348.3
418.8
428.3
349.3
271.0
Net capital expenditure on acquisitions (cash flow)
$mill
–
–
143.9
8.5
23.4
Return on average shareholders funds
before IMIs
%
7.1
9.2
17.6
6.8
3.8
including IMIs
%
(5.5)
8.8
17.4
2.8
2.5
Shareholder Information
As at 11 November 2024
Distribution of ordinary shareholder and shareholdings
Size of holding
Number of shareholders
Number of shares
Percentage of issued capital
1 – 1,000
11,307
5,134,649
0.27
1,001 – 5,000
19,717
57,508,054
3.04
5,001 – 10,000
6,541
48,194,847
2.55
10,001 – 100,000
5,899
129,315,167
6.83
100,001 and over
146
1,651,949,004
87.31
Total
43,610
1,892,101,721
100.00 %
The number of shareholders holding less than a marketable parcel of shares ($500) was 2,145 (based on the closing market price on
11 November 2024 of $3.11).
The holdings of the 20 largest holders of fully paid ordinary shares represents 85.42% of that class of shares.
Twenty largest ordinary fully paid shareholders
Number of shares
Percentage of issued capital
HSBC Custody Nominees (Australia) Limited
637,591,601
33.70
J P Morgan Nominees Australia Pty Limited
355,055,823
18.77
Citicorp Nominees Pty Limited
264,558,118
13.98
Merrill Lynch (Australia) Nominees Pty Limited
140,583,873
7.43
HSBC Custody Nominees (Australia) Limited – A/C 2
43,629,079
2.31
National Nominees Limited
39,533,735
2.09
BNP Paribas Nominees Pty Ltd
36,450,464
1.93
BNP Paribas Noms Pty Ltd
22,927,910
1.21
HSBC Custody Nominees (Australia) Limited
14,631,072
.77
UBS Nominees Pty Ltd
10,357,106
.55
HSBC Custody Nominees (Australia) Limited-GSCO ECA
9,982,925
.53
Warbont Nominees Pty Ltd
8,905,056
.47
BNP Paribas Noms Pty Ltd
6,468,172
.34
HSBC Custody Nominees (Australia) Limited
5,991,244
.32
Citicorp Nominees Pty Limited
5,518,834
.29
BNP Paribas Nominees Pty Ltd
4,648,932
.25
Netwealth Investments Limited
3,469,848
.18
BNP Paribas Noms (NZ) Ltd
2,315,723
.12
Neweconomy com au Nominees Pty Limited <900 Account>
1,939,134
.10
BNP Paribas Nominees Pty Ltd
1,741,500
.09
Total
1,616,300,149
85.42
Substantial shareholders
The number of shares to which each substantial holder and the substantial holders’ associates have a relevant interest, as disclosed
in substantial holding notices given to IPL under the Corporations Act, are as follows:
Name
Date Notice Received
Votes/Number of shares
Percentage of issued capital
Janchor Partners Limited
16 January 2023
173,065,979
8.91
Vanguard Group
9 August 2024
119,559,181
6.156
Allan Gray Australia Pty Ltd
22 January 2024
118,611,309
6.11
State Street Corporation
15 October 2024
114,436,327
6.05
Cooper Investors Pty Limited
22 May 2024
102,109,362
5.257
Voting Rights for Ordinary Shares
Votes of shareholders are governed by the Company’s Constitution. In broad summary, but without prejudice to the provisions of these
rules, the Constitution provides for votes to be cast: (a) on a show of hands, one vote for each shareholder; and (b) on a poll, one vote for
each fully paid share.
Unquoted Equity Securities
As at 11 November 2024, there were 16,626,556 of rights on issue, comprising of:
» 4,262,265 performance rights with 11 holders were on issue pursuant to Incitec Pivot employee incentive plans;
» 41,530 share rights with 3 holders were on issue pursuant to Non-executive Director minimum shareholding plan; and
» 12,312,761 options with 9 holders were on issue pursuant to Incitec Pivot employee incentive plans.
Performance rights, share rights and options do not carry any voting rights.
On-Market Share Purchases
During the 2024 financial year, 1,850,000 ordinary shares were purchased on-market for the purposes of awards under IPL employee
incentive plans and the Non-executive Director minimum shareholding plan.
On 15 November 2022, IPL announced its intention to undertake an on-market share buyback of up to $400m. On 13 November 2023, IPL
announced its intention to undertake an additional on-market share buyback of up to $500m, which amounts to a total planned on-market
buyback of up to $900m. IPL commenced the on-market share buyback on 10 July 2024. To date (and during the financial year), 50,123,308
shares have been purchased on-market by IPL to the value of $148.98m. On 11 November 2024, IPL announced that it will extend the on-
market share buyback program by a further twelve months.
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
134
Incitec Pivot Limited Annual Report 2024
135
Incitec Pivot Limited Annual Report 2024
Corporate Directory
Registered Office
Incitec Pivot Limited
Level 8, 28 Freshwater Place
Southbank Victoria 3006
Australia
Telephone: +61 3 8695 4400
Facsimile: +61 3 8695 4419
www.incitecpivot.com.au
Company Secretary: Richa Puri
Auditor
Deloitte Touche Tohmatsu
477 Collins Street
Melbourne Victoria 3000
Australia
Securities Exchange Listing
Incitec Pivot Limited shares are listed on the
Australian Securities Exchange (ASX: IPL).
Notes issued under Incitec Pivot’s
US$1,500,000,000 Euro Medium Term
Note Programme are listed on the
Singapore Exchange.
Incitec Pivot Limited ordinary shares are
traded in the US in the form of American
Depository Receipts (ADR) issued by the
Bank of New York Mellon as Depositary.
Share Registry and Other Enquiries
If you have any enquiries in relation to your
shareholding, share transfers or dividends,
please contact our share registry:
Link Market Services Limited
Locked Bag A14
Sydney South
New South Wales 1235
Australia
Telephone: +61 1300 303 780
General Facsimile: +61 2 9287 0303
Proxy Facsimile: +61 2 9287 0309
Email: registrars@linkmarketservices.com.au
Website: www.linkmarketservices.com.au
For enquiries about American Depositary Receipts:
Computershare Investor Services
150 Royall St., Suite 101
Canton, MA 02021
United States of America
Telephone: 1-888-269-2377
International: +1-201-680-6825
Email: shrrelations@cpushareownerservices.com
Website: www-us.computershare.com/investor
For enquiries about the operations of the Company,
please contact our Investor Relations team:
Incitec Pivot Limited
Level 8, 28 Freshwater Place
Southbank Victoria 3006
Australia
Email: investor.relations@incitecpivot.com.au
Website: www.incitecpivot.com.au
Shareholder Information
The Company has an online share registry facility,
where shareholders can:
» check their current and previous holding balances;
» update their address details;
» update their bank details;
» review their transaction and dividend history;
» confirm whether they have lodged a TFN/ABN exemption;
» elect to receive electronic communciations and Company
information eletroncially and change their Annual Report
election;
» download commonly used forms; and
» subscribe to email announcements.
The online share registry can be accessed at https://investors.
incitecpivot.com.au/shareholder-information/shareholder-services.
For security reasons, shareholders will be required to verify their
identity before being able to access their records.
Annual General Meeting
Incitec Pivot Limited’s 2024 Annual General Meeting will
be held on 19 December 2024.
Glossary
Our Company
Board
Board of directors of Incitec Pivot Limited
DNA
Dyno Nobel Americas
DNAP
Dyno Nobel Asia Pacific
IPF
Incitec Pivot Fertilisers
IPL or the Company
Incitec Pivot Limited
LOMO
Dyno Nobel Americas' Louisiana, Missouri ammonium nitrate manufacturing facility
The Group, We, Us or Our
Incitec Pivot Limited and its subsidiaries
Titanobel
Titanobel, France
WALA
Dyno Nobel Americas' ammonia manufacturing facility located in Waggaman, Louisiana
Financial and Remuneration
AASB
Australian Accounting Standards Board
BBSW
Bank Bill Swap Rate
CGU
Smallest identifiable group of assets that generate independent cash flows
CPI
Consumer Price Index
DAP
Diammonium Phosphate
DRP
Dividend Reinvestment Plan
EBIT
Earnings Before Interest and Tax
EBITDA
Earnings Before Interest, Tax, Depreciation and Amortisation
EPS
Earnings Per Share
FAR
Fixed Annual Remuneration
FCTR
Foreign Currency Translation Reserve
HIBOR
Hong Kong Interbank Offered Rate
IFRS
International Financial Reporting Standards
IMI
Individually Material Items
ISSB
International Sustainability Standards Board
KMP
Key Management Personnel
KPI
Key Performance Indicator
LIBOR
London Inter-Bank Offered Rate
LTI
Long Term Incentive
MAP
Mono-Ammonium Phosphate
MSR
Minimum Shareholding Requirement
NPAT
Net Profit After Tax
PCP
Previous Calendar Period
PP&E
Property Plant and Equipment
ROE
Return On Equity
ROIC
Return On Invested Capital
STI
Short Term Incentive
TSR
Total Shareholder Return
TWC
Trade Working Capital
VWAP
Volume Weighted Average Price
Other
AN
Ammonium Nitrate
ARENA
Australian Renewable Energy Agency
ASIC
Australian Securities and Investments Commission
ASX
Australian Securities Exchange
ASX Recommendations
ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (4th Edition)
CCS
Carbon Capture and Storage
CDP
Carbon Disclosure Project
CO2
Carbon Dioxide
Corporations Act
Corporations Act 2001 (Cth)
DEI
Diversity, Equity and Inclusion
ESG
Environmental, Social and Governance
EEF
Enhanced Efficiency Fertiliser
FEED
Front End Engineering Design
FTSE
Financial Times Stock Exchange
GEI
Gender-Equity Index
GHG
Greenhouse Gas
GRI
Global Reporting Initiative
IBP
Integrated Business Planning
LTIFR
Lost Time Injury Frequency Rate
MPU
Mobile Processing Unit
N2O
Nitrous Oxide
S&P Global CSA
Standard & Poor's Global Corporate Sustainability Assessment (previously Dow Jones Sustainability Index - DJSI)
SSP
Single Super Phosphate
TNFD
Taskforce on Nature-related Financial Disclosures
TRIFR
Total Recordable Injury Frequency Rate
TCFD
Task Force on Climate-Related Financial Disclosures
Incitec Pivot Limited
ABN: 42 004 080 264
Level 8, 28 Freshwater Place, Southbank, Victoria 3006, Australia
This report is printed on Sovereign Silk
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