Old Republic International Annual Report 2023

FY2023 Annual Report · Old Republic International

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ANNUAL REPORT
2023

OUR PURPOSE IS TO
SUSTAINABLY MOBILISE
THE EARTH’S RESOURCES.

From the production and supply of explosives,
blasting systems, mining chemicals and geotechnical
monitoring to our advanced suite of digital solutions
and comprehensive range of services, Orica is
supporting customers across the mining value chain.
Our vision is to become the world’s leading mining
and infrastructure solutions company.

More materials, metals and minerals will
be required to help the global economy
grow and transition to net zero emissions.
Our priority is to help mobilise those
resources, utilising advanced technology
and innovation from mine to mill to
accelerate global decarbonisation efforts.
We are collaborating with our customers
and other stakeholders to find solutions to
our industry’s biggest challenges and move
towards a lower-carbon future, together.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

CONTENTS

Our FY2023 annual reporting suite

FY2023 performance snapshot

FY2023 financial performance

Letter from our Chairman and Managing Director

Our Business

Our Performance

Our global footprint

How we create value

Our operating context

Our strategy

Progress against our strategy

Risk

Material risks and opportunities

Our business model

Key performance indicators

Our stakeholders

112

113

Financial Report

Income statement

Statement of comprehensive income

114

111

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

Directors’ declaration

Independent Auditor’s Report

Other Information

Five year financial statistics

Shareholders’ statistics

Definitions and glossary of terms

Integrated reporting content
elements index

115

116

117

118

173

174

180

181

183

184

187

Independent Limited Assurance Reports 188

Corporate directory

192

Customers, technology and innovation 52

Balance sheet

Safe and responsible business

Financial performance

People and capabilities

Climate and the natural environment

Community and relationships

Governance

Board of Directors

Executive Committee

Governance

Directors’ Report

Remuneration Report

Lead Auditor’s Independence
Declaration

Orica LimitedAnnual Report 2023OUR FY2023 ANNUAL REPORTING SUITE

Navigating this report

Welcome to our
FY2023 Annual Report,
which forms part of
our annual reporting
suite for the 2023
financial year.

Structure and content

The elements of the Directors’ Report
required by ASIC Regulatory Guide 247 are
covered on pages 04 to 111. This includes
the Operating and Financial Review (OFR),
which is presented on pages 04 to 73.
Specific commentary on Orica’s financial
performance is on pages 42 to 51.

This report covers Orica operations
worldwide that we had control
of for the financial year ending
30 September 2023, unless otherwise
stated (collectively ‘the Orica Group’,
or ‘the Group’). All monetary amounts
are subject to rounding and reported in
Australian dollars, unless otherwise stated.

Annual reporting suite
We produce a suite of reports to meet the needs of a wide range of stakeholders.

FY2023 Corporate
Governance Statement

FY2023 Climate Action
Report

FY2023 Modern Slavery
Statement

In accordance with the ASX
Corporate Governance
Council’s Principles and
Recommendations (4th Edition).

Climate-related information
aligned to the recommendations
of the Task Force on Climate-
related Financial Disclosures.

In accordance with the
Australian Modern Slavery Act
2018 (Cth) and the UK Modern
Slavery Act 2015.

FY2023 Tax Transparency
Report

Overview of our approach
to tax, governance structure
and tax position.

The following documents are available at orica.com/Investors: Full Year Results Investor
Presentation and Full Year Results ASX Announcement.

An Environmental, Social, and Governance (ESG) Data Centre is available on our website
and contains detailed data and reporting indices such as our Global Reporting Initiative (GRI) Index,
Sustainability Accounting Standards Board (SASB) Index, Taskforce on Climate-related Financial
Disclosures (TCFD) Index and Climate Action 100+ (CA100+) Net Zero Company Benchmark Index.
Enquiries about this report or our annual reporting suite can be directed to companyinfo@orica.com.

Learn more
orica.com/
annualreport

Standard setters are working to encourage global consistency in non-financial reporting. We continue to monitor and respond to evolving reporting
standards (e.g. the International Sustainability Standards Board standards) and their approaches to materiality. The utility of our current approach
to reporting will be reviewed against leading practice and emerging frameworks.

Forward-looking statements

DISCLAIMER: This report contains information that is based on projected and/or estimated expectations, assumptions or outcomes. Forward-looking
statements are subject to a range of risk factors. Orica cautions against reliance on any forward-looking statements, due to the volatility and
uncertainty of the geopolitical and economic landscape.

Orica has prepared this information based on current knowledge and good faith, understanding that there are risks and uncertainties involved that
could cause results to differ from projections. Orica will not be liable for the correctness and/or accuracy of the information, nor any differences
between the information provided and actual outcomes, and reserves the right to change its projections from time to time. Orica undertakes no
obligation to update any forward-looking statement to reflect events or circumstances after the date of this report, subject to disclosure obligations
under the applicable law and ASX listing rules.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Integrated reporting and
reporting what matters

This report is designed to be read in its
entirety and discloses both our financial
and non-financial performance. It has been
prepared in accordance with the Content
Elements of the 2021 International Integrated
Reporting (IR) Framework for which an index
is provided on page 187. We have used the
framework to demonstrate how our purpose
and values, and consideration of risks and
opportunities, drive our strategy. We have
also articulated how we create and measure
value beyond financial performance. An
overview of our value creation process is
provided on page 16.

The IR materiality methodology has been
used to determine our material topics and
describe to investors how Orica creates
value over time. We identify relevant
topics through primary and secondary
research, refine our topics and evaluate
their importance using internal and external
insights. Orica conducts this materiality
process annually to understand the topics

that matter most to our stakeholders and
our business and identify emerging topics.

This materiality process shapes external
reporting and provides inputs to our business
strategy and risk management approaches,
including our material risks and opportunities
– those that could materially affect our
financial or non-financial performance, long-
term value creation and/or licence to operate.

A summary of material topics based
on our FY2023 assessment is available
on our website.

Learn more
orica.com/
Sustainability/
our-approach

Orica’s material business risks and
opportunities are presented on
pages 28 to 30.

The FY2023 Annual Report was approved
at the November 2023 Board meeting.

Verification and assurance

The Remuneration Report (pages 86 to 110)
and Financial Statements (pages 112 to 179)
have been audited by KPMG. KPMG was
also engaged to provide limited assurance
that the Content Elements of the 2021
International IR Framework have been
addressed in this report. This assurance
considers whether the Content Elements
have been included but does not extend
to assessing the accuracy or validity of any
statements made throughout this report.

Ernst & Young (EY) have provided limited
assurance over a selection of non-financial
metrics including certain greenhouse gas
(GHG) emissions and associated intensities
and reductions, gender diversity in senior
leadership and potable water intensity.
Refer to EY’s limited assurance report
for further information.

These reports can be found on pages 188
to 191 and on our website.

Material statements contained in this report
have been subject to an internal review and
approval process defined by our Annual
Reporting Verification Framework.

Orica LimitedAnnual Report 2023FY2023 PERFORMANCE SNAPSHOT

The following data callouts are key financial and non-financial metrics that outline our performance in the year against our strategy and targets.

43.0cps
$698m

Underlying EBIT2

FY2023 dividend

FY2022: 35.0cps

53%

FY2023 payout ratio1

FY2022: 48%

Fatalities3

0.131

SICR4

FY2022: $564m

FY2022: 2

FY2022: 0.157

22%

Annual reduction in
net Scope 1 and 2 GHG
emissions from FY2019
baseline5

Loss of Containment
(LOC) events6

34.8%

Women in senior
leadership7

FY2022: 14%

FY2022: 23

FY2022: 28.9%

12.6%

RONA8

$439m

Capital expenditure9

$296m

NPAT10

FY2022: 11.4%

FY2022: $349m

FY2022: $60m

$4.1m

Community investment

90+

Nationalities represented
in Orica’s workforce

18.6%

Gearing11

FY2022: $3.7m

FY2022: 80+

FY2022: 19.7%

1. Dividend amount/Underlying NPAT before individually significant items.

2. Equivalent to profit/loss before financing costs and income tax from continuing operations, as disclosed in Note 1(b) to the financial statements, before individually

significant items.

3. Fatalities are categorised by a review of Orica’s degree of control over circumstances of the event leading to the fatality. We record non-work-related and third-party

fatalities separate to this metric. Third-party fatalities are incidents that occur beyond our Orica-controlled operations and network.

4. Serious Injury Case Rate (unit of measure: per 200,000 hours worked).

5. Target to reduce net Scope 1 and 2 emissions by at least 45 per cent by 2030, from 2019 levels.

6. Severity 1 events are minor, reversible environmental effects. Short-term impacts only in the immediate vicinity of the release. Minor clean-up required with the

total cost of any clean-up less than $100,000. Severity 2 environmental events have localised but measurable environmental effect that is reversible after clean-up;
severity 3 environmental events result in relatively wide-spread serious environmental damage, with some impairment of ecosystem function that will recover
after remediation.

7. The percentage of executive positions within the Band D (Senior Manager) level and above (i.e., CEO 2 (Band D+)) held by women.

8. RONA is defined as EBIT/Net operating assets on continuing operations. Net operating assets is defined as rolling 12-month average assets including net property,
plant and equipment; intangibles at NBV; current and non-current investments in associates at current carrying value; trade working capital; non-trade working
capital excluding environmental provisions.

9. Excludes capitalised interest.

10. Net profit after tax attributable to shareholders of Orica Limited.

11. Net debt/(net debt + equity), where net debt excludes lease liabilities, as disclosed in Note 3 to the financial statements.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Orica LimitedAnnual Report 2023FY2023 FINANCIAL PERFORMANCE

Segment results

Underlying EBIT from
continuing operations
increased by 24 per cent
to $698 million on the
previous corresponding
period (pcp).

Earnings increased in
all segments versus the
pcp, attributable
to continued commercial
discipline, strong customer
demand, and increased
earnings from advanced
technology offerings.

FY2022 results are restated for change of
segment reporting, refer to note 1(a) within
the financial statements.

1. EBIT before individually significant items and
depreciation and amortisation expense.

2. Equivalent to profit/(loss) before financing
costs and income tax as disclosed in Note
1(b) within the financial statements.

3. Orica completed the exit of its operating
business in Russia in September 2022.

Australia Pacific and Asia

North America

Strong EBIT growth in the region
with 24 per cent increase on the
pcp driven by high demand,
structural contract improvements
and strengthened market position.

EBIT increased by 11 per cent
on the pcp, the region delivered
resilient earnings performance
despite external challenges caused
by extreme weather in Canada
and United States and prolonged
industrial action impacting supply
in Mexico.

External sales revenue
$3,169m

External sales revenue
$1,745m

FY2022 $2,707m

FY2022 $1,567m

EBITDA1
$634m

FY2022 $551m

EBIT2
$458m

FY2022 $370m

EBITDA1
$224m

FY2022 $194m

EBIT2
$150m

FY2022 $135m

AN and emulsion volumes
1,841,000 tonnes

AN and emulsion volumes
1,131,000 tonnes

FY2022 1,767,000 tonnes

FY2022 1,106,000 tonnes

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Latin America

Europe, Middle East
and Africa

Orica Digital Solutions

Underlying EBIT performance
driven by commercial discipline and
technology penetration. Demand for
technology and premium products in
Orica’s established markets continue
to grow.

Significant 24 per cent improvement
in EBIT despite no contribution from
Russia in FY20233. The improvement
was driven by strong growth and
margin improvements in Africa,
Southern Europe, Middle East and
Central Asia.

Strong performance with 103 per
cent increase in EBIT due to solid
demand, margin improvement
and contribution from Axis Mining
Technology. Fifteen new features
were released in this financial year.

External sales revenue
$1,733m

External sales revenue
$1,087m

External sales revenue
$212m

FY2022 $1,650m

FY2022 $1,026m

FY2022 $147m

EBITDA1
$105m

FY2022 $100m

EBIT2
$54m

FY2022 $54m

EBITDA1
$84m

FY2022 $78m

EBIT2
$58m

FY2022 $47m

AN and emulsion volumes
924,000 tonnes

AN and emulsion volumes
337,000 tonnes

FY2022 973,000 tonnes

FY2022 415,000 tonnes

EBITDA1
$97m

FY2022 $45m

EBIT2
$54m

FY2022 $27m

Orica LimitedAnnual Report 2023LETTER FROM OUR CHAIRMAN
AND MANAGING DIRECTOR

Sanjeev Gandhi
Managing Director and
Chief Executive Officer

Malcolm Broomhead AO
Chairman

Safety and environment

At Orica, nothing is more important than
safety, and we are pleased to report no
fatalities or serious life-changing injuries
across our controlled operations in FY2023.

The prevention of harm is our number one
priority, and for a second consecutive year
we have achieved a reduction in our serious
injury case rate, and there were no significant
environmental incidents across our
global operations.

Our Major Hazard Management (MHM)
program continues to deliver an exceptional
global safety culture. We recorded over

4,000 MHM stops this year, representing
4,000 times our people on the front line
were empowered to stop work until they
could be sure the key controls to keep them
safe were in place.

People and culture

None of this is possible without our most
valuable asset, our people.

The commitment of our employees and
operators has ensured we continue to
deliver for our customers.

Our people have remained
committed to delivering on
our strategy and driving
improved performance
across our company.

We are pleased to report
a strong financial result
for the 2023 financial
year, including $698
million in underlying
EBIT from continuing
operations, a 24 per
cent increase on the
previous year.

We operate in a complex
global environment that
presents both challenges
and opportunities
for our company. We
continue to mitigate
and capitalise on this to
successfully execute our
strategy, pursue further
growth opportunities
and accelerate
our sustainability
commitments.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

For our people to thrive, mental and physical
wellbeing is critical. This year, we initiated
several activities to better understand how
we can support mental and physical health
across our business. These activities will
culminate in the delivery of a psychosocial
risk profile for Orica. We will capture and
adopt emerging best practices to continue
to manage our psychosocial risks and better
protect our people.

We are committed to fostering a culture of
respect and belonging. In FY2023 we proudly
launched our new global Diversity, Equity
and Inclusion strategy, to foster an inclusive
organisation with leadership accountability
and alignment. We have made good
progress, but there is always more work to
be done. We will continue working to ensure
we have the right culture and environment
to attract, retain and develop a diverse,
engaged workforce.

Our external market

Our evolving operating context presents
both challenges and opportunities for our
company that impact how we create value
and deliver on our purpose to sustainably
mobilise the earth’s resources.

Our technology remains a key enabler,
allowing us to deliver smarter solutions to
address shifting challenges and priorities.
Demand for technology solutions that
improve safety, sustainability, productivity
and recovery is increasing across our
industry, with strong technology adoption
rates sustained throughout FY2023.

As we continue to navigate geopolitical
tensions, our global network increases both
our exposure and resilience. With global
supply constraints expected to remain in the
near term, we have continued to ensure the
security of supply for our customers, and our
manufacturing and supply networks remain
a source of competitive advantage to Orica.

We are cautious of external challenges
and are committed to continuing ongoing
cost-efficiency initiatives and commercial
discipline, diversifying our customer and
commodity portfolio, and delivering unique
integrated products and solutions to reduce
the impact of these external factors.

Strategy and performance

In FY2023 we made strong progress towards
our strategic priorities, focusing on our four
key business verticals: Mining, Quarry and
Construction, Digital Solutions and Mining
Chemicals. However, there is more we
can do to realise the full potential of our
expertise and solutions while supporting
the global energy transition.

For the first time, our Orica Digital Solutions
vertical was launched as a separate segment
and is delivering robust growth in a market
with an accelerated focus on digitisation
and automation. Increased technology
adoption, the launch of new digital solutions
offerings including OREPro™ 3D Predict and
the successful ongoing integration of Axis
Mining Technology have contributed to a
strong financial result this year.

In our Mining and Quarry and Construction
verticals, we achieved improved performance
across all regions. The benefits of commercial
discipline, supply security, growth in
emerging markets including Africa and Asia
and a focus on technology delivery were key
drivers. The combined exposure of copper
and other future-facing commodities (FFC)
remains Orica’s largest commodity exposure,
in line with demand.

We successfully launched WebGen™ 200
in both underground and surface markets.
Our 4D™ bulk systems surface coal
technology has transitioned from customer
trials to multiple commercial contracts, while
4D™ bulk systems surface metal customer
trials are underway in Chile and Canada.
In conjunction with our joint venture partner,
we launched DragonDet™ Electronic
Blasting System (EBS) to service the China
market. Globally, we have increased our
EBS capacity to realise sourcing and cost
benefits through the optimisation of our
discrete network.

Despite challenging conditions in our
Mining Chemicals vertical, there remains a
continued interest in our value-add cyanide
services, including our industry-leading
sparge technology.

We are committed to delivering on
and accelerating our climate change
commitments and decarbonisation efforts.
We have anticipated shifting expectations,
invested responsibly and are well-positioned
to remain competitive in response to macro
environments and trends.

“Our technology remains
a key enabler, allowing us to
deliver smarter solutions to
address shifting challenges
and priorities.”

Orica LimitedAnnual Report 2023LETTER FROM OUR CHAIRMAN
AND MANAGING DIRECTOR

Business performance

Sustainability performance

This year, we are pleased to deliver another
improved financial performance. Underlying
EBIT was $698 million from continuing
operations, an increase of 24 per cent on
the previous year, reflecting the embedded
commercial discipline across our company
and a continued focus on the quality of
earnings. Statutory NPAT in FY2023 was
$296 million, including a $73 million
individually significant items expense after
tax. We achieved a return on net operating
assets of 12.6 per cent, an increase on the
previous year driven by our improved earnings
performance and strong market conditions.

Our robust financial performance is a
testament to the remarkable efforts of our
people, who continue to deliver on our
strategy amid a volatile external environment.
The external market conditions, while
challenging, have highlighted the strength
of our people and unmatched global asset
and technology portfolio, which has allowed
us to adapt to and mitigate these conditions.

As this macroeconomic volatility continues,
commercial discipline, strong customer
demand, supply security, technology and a
diversified customer and commodity mix will
support our company throughout the cycle.

In March this year, we completed the
issuance of US$350 million of fixed-rate
unsecured notes in the United States
Private Placement market, extending Orica’s
drawn debt maturity. This proactive debt
management further strengthens our
financial position. Our prudent balance sheet
positions us well to continue managing
our volatile external environment while
supporting further business growth,
advancing climate change initiatives
and seeking to deliver improved
shareholder returns.

We have continued to apply our disciplined
approach to capital expenditure to support
the base business and pursue growth
opportunities and decarbonisation initiatives.

The final ordinary dividend of 25.0 cents
per share unfranked, brings the total
dividend payout to 43.0 cents per share,
reflecting a payout ratio of 53 per cent
of full year underlying earnings.

This year has been characterised by
continued global volatility and a renewed
urgency to deliver positive environmental,
social and governance outcomes,
particularly on the energy transition
to more renewable sources.

Sustainability is an integral part of our
strategy and at the core of our purpose.
We continue to embed sustainability into
our strategic, financial and operational
decision-making while demonstrating
strong environmental stewardship across
our value chain.

This year, we made good progress towards
our climate targets. Our net Scope 1 and 2
emissions were 1,704 ktCO2-e, a nine per
cent decrease on the previous year and 22
per cent below 2019 baseline levels.

Our achievements so far give us the
confidence to accelerate our climate change
commitments and accountability. This year,
we announced strengthened climate-related
targets, accelerating our pathway towards
net zero and driving the industry towards a
lower-carbon future.

We have increased our commitment to
reduce net operational Scope 1 and 2
emissions under our direct control by at
least 45 per cent by 2030 from 2019 levels,
an uplift from our previous 40 per cent
commitment. This also includes a new
short-term target to reduce net Scope 1
and 2 emissions by 30 per cent by 2026,
from 2019 levels.

Additionally, we acknowledge that Scope 3
is a material portion of our overall emissions
profile and are committed to partnering with
our suppliers and customers to introduce
a new ambition of reducing our Scope 3
emissions by 25 per cent by 2035, from
2022 baseline levels.

Lastly, we have expanded the boundary
of our 2050 net zero ambition, to include
Scope 3 emissions associated with our
purchased goods and services and the
use of our products in blasting activities.

Our accelerated targets and new Scope 3
ambition support our long-term ambition
to achieve net zero emissions by latest 2050,
creating a clear pathway and evidence-based
roadmap to achieve it.

As the world continues to move towards net
zero, the demand for critical minerals will
grow, and exploration and production of
these commodities will need to increase.
In Australia, we have partnered with Origin
Energy and The Hydrogen Utility to develop
future renewable hydrogen and ammonia
opportunities, and with Alpha HPA to
support lower-carbon technologies including
lithium-ion batteries and LED lighting.

We continue to deliver technologies
and solutions to support our customers’
sustainability goals and more sustainable
mining outcomes. As we progress our
sustainable solutions offering, we expect
this to deliver an even more compelling
customer proposition over time, creating
further commercial advantage for customers
and Orica.

As stakeholder expectations and material
regulatory drivers for climate action
increase, we are proactively improving our
accountability and transparency. This year
we will adopt the ‘Say on Climate’ initiative,
allowing our shareholders to consider our
Climate Action Report at the 2023 Annual
General Meeting.

Community and
relationships

As a complex global business, we are
committed to respecting and upholding the
human rights of our people and continually
seek to improve our governance to ensure
those protections are extended to all people
in our value chain. While there is more
work to do to address such a complex issue,
especially in an increasingly challenging
landscape, we will strive to meet our
stakeholder expectations and continue to
provide leadership and focus on human
rights in our industry.

We continue to work collaboratively with our
customers and the communities in which we
operate globally, to protect cultural heritage
and progress our work with First Nations
Peoples around the world.

In Australia, for example, we are in the early
stages of our reconciliation journey, having
released our inaugural Reconciliation Action
Plan in December 2022. Our vision for
reconciliation is a future based on mutual
respect where we acknowledge and learn
from our shared past and forge a path
forward for a more hopeful future.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Governance

Outlook

In FY2023, we announced the retirement of
Non-executive Directors Maxine Brenner and
Boon Swan Foo from the Board of Directors
of Orica Limited.

We welcomed Mark Garrett and Vanessa
Guthrie to the Orica Board as Independent
Non-executive Directors, to support the
Board’s objectives and Orica’s long-term
growth strategy. Mark brings more than
30 years’ experience in commercial and
senior leadership roles in the chemical
industry, across diverse global markets.
Vanessa’s considerable leadership experience
in the resources sector spans over three
decades, having held a diverse set of
senior leadership roles across operations,
environment, community, indigenous affairs,
corporate development and sustainability.

As we look to FY2024, we remain deeply
committed to the continued execution of
our strategy. As a result of our commercial
discipline, strong customer demand and
increased earnings from our blasting and
digital technology offerings, the strength
of our underlying business is expected to
continue. While external challenges remain,
we will continue to work hard to mitigate
the impact of these on our business.

Our prudent balance sheet positions us well
to manage the volatile external environment,
supporting further business growth,
advancing climate change initiatives and
delivering improved shareholder returns.

We are committed to accelerating our
sustainability agenda, helping our customers
achieve their targets while ensuring we
remain competitive in a lower-carbon future.

On behalf of our Board and the Executive
team, we thank the entire Orica team for
their ongoing commitment and dedication
to delivering on our strategy and purpose.
We remain in a good position to continue
our momentum and drive our strategy
for growth.

To our shareholders, customers and industry
partners, we also thank you for your
continued support of Orica.

Malcolm Broomhead AO
Chairman

Sanjeev Gandhi
Managing Director and
Chief Executive Officer

Orica LimitedAnnual Report 2023OUR BUSINESS

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

OUR VALUES

To deliver on our purpose, we work as one team,
always guided by our values.

Safety is our priority.
Always.

The most important thing is that
we all return home safely, every day.

We respect and value all.

Our care for each other, our customers,
communities, and the environment
builds trusted relationships.

We act with integrity.

We are open and honest, and we do
what is right.

Together we succeed.

Collaboration makes us better,
individually and collectively.

We are committed
to excellence.

We take accountability for our business
and for delivering outstanding results.

Orica LimitedAnnual Report 2023OUR GLOBAL FOOTPRINT

Our story began in 1874,
when we first supplied
explosives to the Victorian
goldfields in Australia.
Since then, we have grown
to become one of the
world’s leading mining
and infrastructure
solutions providers.

Global reach

Orica has a proud history of nearly
150 years of innovation that continues
to deliver smarter, safer and more
sustainable solutions for the world’s
mining and infrastructure industries.

Our global network comprises continuous
and discrete manufacturing operations,
technology and monitoring centres and
support offices, supported by a network
of joint ventures, ammonium nitrate
emulsion plants and bulk explosives
depots strategically located to serve
our customers around the world.

Approaching

150

years of experience
and expertise

Customers
in more than

100 countries

12,500+

employees

$7.1b

market capitalisation1

1. As at 30 September 2023.

Major Operations

Head Office

Regional Head Office

Monitoring Centre

Technology Innovation Centre

Discrete Manufacturing
for Initiating Systems
and Packaged Explosives

Continuous Manufacturing
Ammonium Nitrate Plants

Continuous Manufacturing
Sodium Cyanide Plants

Emulsifier Manufacturing Plant

Emulsion Plants

Orica presence

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Diversified global business

Revenue by segment2

Revenue by commodity2

Revenue by product/service type2

14%

21%

24%

40%

22%

Australia Pacific and Asia

North America

Latin America

14%

21%

14%

Copper

Thermal coal

Iron ore

Gold

Quarry and
Construction

Europe, Middle East and Africa

Metallurgical coal

Other

Digital Solutions

FFC3

Digital Solutions

35%

12%

16%

22%

Bulk Emulsion

AN/ANFO

Initiating Systems

Onsite Services

Packaged Products

Other

Mining
Chemicals

2. Based on external sales from continuing operations.

3. Future-facing commodities include nickel, lithium, lead and zinc with increasing demand that are essential components of low-emissions energy technologies.

Orica LimitedAnnual Report 2023HOW WE CREATE VALUE

Operating safely and responsibly is the cornerstone of our business. Our strategy
underpins everything we do and is designed to empower our people to deliver
enduring value to our stakeholders. Our sustainability pillars guide our work,
every day and everywhere.

We use technology and innovation to advance safer, more productive and sustainable
practices to mobilise the resources needed to support a lower-carbon economy and
societal ambitions.

What we rely on (our value drivers)

Our core business activities

Page 31

Safe and responsible
operations

O u r Strategy

Financial
performance

Customers, technology
and innovation

People and
capabilities

Climate and the
natural environment

Community and
relationships

Orebody
intelligence

Design and
model

Purpose

To sustainably
mobilise the earth’s
resources

Blasting

Ore processing
optimisation

t
e
r

s
o
u
t
i
o
n
s

s
s
e
r
g
o
r
p
r
o
f

g
n

Measure and
monitor

Optimised ope r a t i o n s

Protecting
our people,
communities
and the
environment

Innovating
sustainable
solutions

Building
climate
change
resilience and
circularity

Fostering
relationships
and
transparency

Our operating context

Our stakeholders

Risk appetite

We proactively monitor and respond to
changes in our operating environment.

We prioritise strong relationships with
our stakeholders to identify opportunities
to better respond to their needs.

We execute our strategy within the
defined parameters of our risk appetite
including an active appetite for growth
and innovation and a zero appetite for
fatalities and other serious safety, health,
environmental and ethical incidents as
outlined in our risk appetite statements.

Page 18

Page 34

Page 26

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

As Orica approaches 150 years of
innovation, we seek to advance our core
blasting products and services and innovate
industry-leading, digital and automated
technologies. The execution of our strategy
is enabled through access to financial capital,
optimising the use of natural resources,
and the strength of our workforce and
global manufacturing and supply network.

We proactively collaborate with stakeholders
including customers, industry partners and
research bodies to drive sustainable growth,
contribute to communities and solve
shared challenges.

Orica’s value creation process is based on the
IR Framework with a focus on the key inputs
and activities that deliver outcomes aligned
with our vision to become the world’s leading
mining and infrastructure solutions company.

Our risk appetite guides our strategic
decision-making, supporting the allocation
of assets and resources.

Each component is discussed in more
detail in the Our Business and Our
Performance sections.

Outcomes

Safe and responsible
operations

Page 37

We are a values-driven organisation with a relentless focus on preventing fatalities and serious
injuries. The health, safety and wellbeing of our people, customers and communities
is our number one priority.

Delivering long-term
value to shareholders

Page 42

We apply our capital management framework to guide our investment decisions as we strive
to maximise returns to our shareholders over the long term.

Enabling customers
for the future

Page 52

We seek to be an agile and innovative organisation, responding to the changing technological
landscape of the mining and infrastructure industries and supporting our customers’ growth
and sustainability goals. We partner with industry stakeholders to solve shared challenges
across the value chain.

Empowering a
talented and diverse
workforce

Page 58

We strive to ensure our workforce is engaged through diversity of thought and a culture of
collaboration. We invest in a talent lifecycle to drive innovation and evolving technology,
meet stakeholder needs and deliver our strategy.

Minimising
environmental
impact

Fostering strong
and collaborative
relationships

Page 62

Page 70

We aim to be a resourceful and resilient solutions-focused organisation that prioritises the
protection and stewardship of the environment. Managing physical and transitional climate
risks is positioning our business to prosper in a lower-carbon economy.

We collaborate with our stakeholders to better understand and respond to their needs and
expectations and work with our local communities to build mutually beneficial relationships
based on open and constructive engagement.

Orica LimitedAnnual Report 2023
OUR OPERATING CONTEXT

FY2023 was characterised by continued global volatility and a renewed urgency to
deliver positive ESG outcomes, particularly on climate change and the energy transition.
Our evolving operating context creates risks and presents opportunities that impact how
we create value and deliver on our purpose to sustainably mobilise the earth’s resources.

Changing commodity
demand
Link to key value drivers:

Expectations in relation
to ESG actions
Link to key value drivers:

Climate change and
adaptation
Link to key value drivers:

Global demand for copper, nickel and other
FFCs remains strong as the energy transition
gains momentum. A continued acceleration
in production of these commodities is
required for the manufacture of renewable
technologies such as batteries, solar panels
and wind turbines, which are fundamental
to achieving the goals of the Paris Agreement.

We continue to actively grow our presence in
FFCs, which forms a considerable proportion
of mining pipelines in Australia Pacific, Latin
America and Africa. This is providing growth
opportunities for our blasting business
and Orica Digital Solutions, particularly in
exploration and resource definition activities,
and the processing phases of the mining
value chain.

The energy crisis triggered by the Russia-
Ukraine conflict continues to drive high
demand and prices for thermal coal in the
short term as global markets attempt to
secure alternative supply of coal and fuel.
However, thermal coal production is still
expected to decline in the long term.
We will continue to supply and service
our coal customers throughout the energy
transition while diversifying our offerings
to prosper in a lower-carbon economy.

Expectation to deliver positive ESG outcomes
continues to evolve and strengthen with
a shift towards regulatory requirements,
mandatory disclosures and due diligence.
Greenwashing and meaningful action
on material ESG issues are increasingly
important agenda items for stakeholders.

Climate change and decarbonisation
continue to be a core focus for our industry.
There is an expectation that organisations
work to achieve deep decarbonisation
in their operations and, increasingly,
throughout their supply chains. Our strategic
decarbonisation actions to date have created
long-term value for Orica while positioning
us well to meet rising expectations.
We are delivering on and accelerating
our decarbonisation targets and remain
committed to a coordinated transition that
mitigates climate change without leaving
people behind.

We are focused on anticipating and
improving performance ahead of regulation,
addressing material sustainability issues
and providing transparent disclosure
of our performance.

Our Stakeholders page 34.

As the world proceeds with its energy
transition and a focus on reducing emissions,
the physical impacts of climate change
(e.g. flooding, storms, bush fires, etc.) are
being increasingly observed across the world.

We are focused on ensuring our strategy is
robust, resilient and considers the potential
impacts of physical climate change. To this
end, we updated our long-term climate
scenarios in FY2023, and for the first time
estimated a financial impact of physical
climate events under each of the four
scenarios that were addressed.

As a business, we have also commenced
a process to assess potential physical
climate risks at each of our major sites.
These assessments will be used to consider
mitigation and/or adaptation measures that
can be taken to ensure that our operations
are safe and resilient.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Technological
change
Link to key value drivers:

Geopolitical tensions and
security of supply
Link to key value drivers:

Inflation and the
risk of recession
Link to key value drivers:

Our global network increases both our
exposure and our resilience to geopolitical
tensions and other global events.
Maintaining security of supply to our
customers is critical to fulfilling our role as
a trusted partner. Our strategically located
global manufacturing network and third-
party purchasing arrangements are the key
levers we utilise to increase our agility in the
context of global uncertainty.

We maintained security of supply for
our customers through the supply chain
disruptions caused by the Russia-Ukraine
conflict in FY2023, by increasing production
at our own ammonium nitrate (AN) plants
in Australia and Canada, and continuing to
retain access to and purchase third-party
explosive grade AN in other regions.

With global AN supply expected to
remain constrained in the near term,
our manufacturing and supply networks
will continue to be a source of
competitive advantage.

Technological advancements are continually
reshaping the mining landscape, propelling
the industry towards more efficient, safer
and socially responsible practices. Demand
for innovative blasting and digital solutions
is increasing, with high customer adoption
rates and competition for digital solutions
emerging from digital technology providers
in other industries. As mines go deeper
and ore bodies become more complex and
remote, demand for innovative technological
solutions continues to increase.

We employ technology and innovation
for continual improvement across our
core blasting business and through Orica
Digital Solutions. In FY2023, we launched
4D™ bulk systems for underground,
allowing for precision matching of blast
energy to geological and mine needs and
commercialised the next generation of
our WebGen™ wireless initiating systems,
increasing the safety and efficiency of
blasting. Building on our established
blasting solutions, our digital growth
strategy seeks to expand our portfolio of
digital solutions through product technology
development and acquisition. The unique
value proposition of our digital solutions is
the seamless connection of our customers’
physical blasting operations and digital
platforms. This enables our customers
to readily understand and optimise their
operations at every step of the value chain
through integrated workflows, real-time
data and end-to-end predictability,
from mine to mill.

Inflation is a key driver of volatility and
uncertainty for the global economy.
Orica is also directly exposed to inflationary
impacts as we experience rising costs
including salaries and raw material inputs.
We mitigate inflation risk through
our ongoing cost efficiency initiatives,
commercial discipline, diverse customer
and commodity portfolio and technology
penetration.

Our Material risks and opportunities
on page 28 reflect the above trends
and further detail how we are
managing their impact.

We are delivering on and accelerating our decarbonisation
targets, and remain committed to a coordinated transition
that mitigates climate change without leaving people behind.

Orica LimitedAnnual Report 2023
OUR STRATEGY

To deliver our vision in a focused way, we have a detailed strategy that sets
the direction of our business.

Smarter
solutions

Optimised
operations

Partnering
for progress

Excellence in service delivery

Speed to market

Proactively sell solutions to create
and share value

Safe and cost-competitive
manufacturing

Optimised, reliable and secure
supply chain

Empowering our diverse teams
of talented people

Champion for a safer and more
sustainable industry

Protecting our people,
communities and the
environment

Innovating
sustainable
solutions

Building climate
change resilience
and circularity

Fostering
relationships
and transparency

What sets us apart

Superior,
innovation-led
customer outcomes

Secure, reliable,
locationally
advantaged supply

Leveraging our competitive advantage

To successfully execute our strategy, we leverage our core strengths of delivering superior customer outcomes and
maintaining security of supply. Our unique value proposition connecting our core physical blasting operations with
integrated end-to-end digital insights enables us to support our customers to optimise safety, productivity and sustainability
outcomes across the value chain. As we navigate difficult operating conditions, particularly the global AN market disruption
arising from the ongoing Russia-Ukraine conflict and elevated energy prices in Europe, the global footprint of our
manufacturing and supply network and our ability to leverage our purchasing scale and logistics capabilities support
us to continue to be reliable and trusted partners to our customers.

Enabling sustainable
business performance

We are delivering on our strategy to optimise
our operations, deliver smarter solutions
and partner for progress to drive sustainable
growth. Our strategic priorities are focused
on our four key business verticals: mining,
quarry and construction, digital solutions,
and mining chemicals.

Keeping people safe remains our number
one priority. We continue to execute our
sustainability strategy by developing and
deploying technologies that improve safety
outcomes for our workforce, customers
and communities. Considerable progress
is being made to embed sustainability into
our policies, business strategy and practices

to capture new opportunities, accelerate
our more ambitious commitments and
improve performance ahead of regulation.
By anticipating shifting expectations, we
are well positioned to remain competitive
and respond to macro environments and
trends, and the increased scale and pace of
economic transition.

While blasting in mining for metals and coal
remains the core of our business, our market
share in quarry and construction and FFCs
is growing. To deliver the critical materials
required for the energy transition, we are
building on our strong presence in copper
and growing our exposure to other FFCs,
particularly nickel and lithium in Australia.

Our blasting and digital technologies
continue to expand, providing innovative
solutions to enhance safety, productivity,
recovery and sustainability across the
mining value chain.

As an emissions-intensive business,
accelerating decarbonisation is a critical
component of our sustainability agenda.
We are executing on our strategy to reduce
operational greenhouse gas (GHG) emissions
and will continue to collaborate with our
suppliers, customers and innovative partners
to drive decarbonisation across our
value chain.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Future-facing
commodities

Quarries

Minin g

Quarry a

Customers

als

g it a l S olutions

D i

Construction

Tunnelling

Orebody
intelligence

Blast design
and execution

Thermal and
metallurgical coal

Metals

Ore
processing

Chemical
stabilisation

Recovery and
treatment

Measurement
and monitoring

United Nations Sustainable Development Goals

The United Nations (UN) Sustainable Development Goals (SDGs) are 17 interconnected
goals that form a global benchmark for achieving a sustainable future for all.
We are committed to the SDGs and our role in advancing them. The SDG goals
and targets have informed our sustainability strategy and are mapped against
our sustainability pillars.

Our People Strategy is fundamental to
delivering on our commercial objectives and
is designed to drive attraction, retention
and development through an improved
employee experience. This is helping to build
the distinctive capabilities we need to deliver
our net zero ambition1, keep up with evolving
technology and meet stakeholder needs.

Robust governance and risk management
processes are in place to support the
execution of our strategy.

Orica Investor Day Presentation 2023

1. Our net zero emissions ambition covers our

global Scope 1 and 2 emissions under our direct
control and material Scope 3 emission sources.
Material means the GHG emissions arising from
the Scope 3 reporting categories of purchased
goods and services (category 1) and use of sold
products (category 11).

Orica LimitedAnnual Report 2023

PROGRESS AGAINST OUR STRATEGY

Throughout FY2023, we continued to successfully execute our strategy. Launching
Orica Digital Solutions as a separate reportable segment, continuing to diversify
our commodity exposure away from thermal coal, and reducing the GHG footprint
of our operations by 22 per cent since 2019 are a few examples that demonstrate
our progress.

We collaborate with our customers and strategic partners to drive sustainable
growth and explore expansion into future-facing segments including hydrogen.
From smarter solutions to optimising our operations we are positioned to contribute
to and prosper in a lower-carbon economy.

Mining and Quarry and Construction (Q&C)

Minin g

Customers

s
n

D i g i t al Solutio

micals

Australia Pacific and Asia (APA)

Australia Pacific maintains a diverse
commodity portfolio across iron ore,
gold, other metals and coal, backed by
manufacturing plants at Kooragang Island
(ammonia and AN), Yarwun (AN and cyanide),
Burrup (AN) and Helidon (electronic blasting
systems (EBS)).

Asia has a growing population with
significant infrastructure needs translating
into strong demand for quarrying and
construction solutions. There is also long-
term growth potential for FFCs. Our business
in Asia is backed by manufacturing facilities
in Bontang (AN), Limay and Gomia
(initiating systems, EBS).

Strategic priorities

Progress in FY2023

› Diversify and grow our metals portfolio

› Increased exposure to copper and gold.

while continuing to capture a deepening
portion of FFC exposure.

› Maintain manufacturing efficiency and
reliability to maximise volume growth
in a tight global AN market.

› Decarbonise our operations and capture
new growth opportunities to increase
resilience and support the global
transition to a lower-carbon economy.

› Create value for our customers through
our technology, including Orica Digital
Solutions, WebGen™ 200 and 4D™.

› Become a premium supplier of EBS,

capitalising on the opportunity created by
China’s mandate to convert all detonators
used in the country to electronic,
implemented in CY2023.

› Increase penetration into the Indian

market through improved distribution
capabilities and a continued focus
on delivering technology-driven,
value-focused solutions.

› Ongoing development of our industry-
leading position in the Australian hard-
rock lithium (spodumene) industry.

› Continued strong technology uptake,
notably in Orica Digital Solutions. First
commercial 4D™ contract signed in Asia.

› Strong commercial discipline resulted
in favourable contract renewals and
new contracts.

› Continued rollout of abatement catalyst

technology at our nitric acid plants (NAPs)
including completion of installation
of tertiary abatement technology at
Kooragang Island and maintaining
the effectiveness of existing secondary
catalysts at Bontang and Yarwun.

› Progressed development of the Hunter

Valley Hydrogen Hub with Origin Energy,
which could begin to provide Kooragang
Island with renewable hydrogen
feedstock by FY2026.

› New ammonium nitrate emulsion plant
in Malaysia is on track to deliver growth
in the country.

› First DragonDet™ detonators produced
at our Weihai facility are now being
utilised in commercial trials.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

North America (NA)

The North American market is characterised
by a high concentration of copper and
gold mines, as well as a significant
Q&C market, primarily in the United
States (US). The region is supported by
manufacturing plants at Carseland (AN)
and Brownsburg (EBS).

North American mining activity remains
resilient throughout the mining cycle for
most commodities, despite many areas
in the region being impacted by extreme
winter weather. In spite of large-scale
committed US government spending
initiatives, growth in Q&C is constrained
as labour shortages limit the pace of
construction activity.

Latin America (LATAM)

The LATAM mining market is driven
primarily by minerals that will help to drive
the global energy transition away from
fossil fuels, including copper, lithium and
other FFCs. The region is also important to
the group from an Initiating Systems and
Packed Explosives (IS&PE) manufacturing
perspective, with facilities in Lurin, Lorena
and La Portada.

Despite volatile political situations in
some LATAM countries in FY2023, mining
activity across the region has continued
to be materially stable. As a result of the
global energy transition, LATAM is poised
to see significant growth in copper and
other FFCs.

Strategic priorities

Progress in FY2023

› Maintain strong commercial discipline.
› Drive growth in metals and FFCs through
significant opportunities in the western
US, Canada and Mexico.

› Drive growth in Q&C, focusing on
the US market following significant
infrastructure spend commitments
by the US government.

› Deliver profitable growth through

products that enhance sustainability
outcomes such as nitrate reduction
(e.g., Fortis™ Protect and CentraTM
Gold HV.

› Executed successful commercial

negotiations across several key contracts.

› Growth in revenue in the Q&C market.

› Carseland, Canada tertiary catalyst
abatement delivering 95 per cent
abatement of nitrous oxide emissions
from unabated levels.

› Significant contract wins delivered

in Mexico.

› Strong sales of nitrate risk reduction

products Fortis™ Protect and CentraTM
Gold HV supporting customers in
meeting environmental requirements.

Strategic priorities

Progress in FY2023

› Drive synergies and sourcing benefits
through the discrete manufacturing
network, including increased EBS
assembly capacity and an increase in
component manufacturing for initiating
systems.

› Drive growth through blast technology
offerings and uptake of WebGen™.

› Pursue customer growth in the copper

and gold sectors.

› Growth delivered in the Caribbean

through Orica’s ability to quickly serve
customers in Guyana.

› Improved commercial discipline and

pass-through mechanisms in contracts
to mitigate rising costs.

› Strong rates of conversion to premium

products in many contracts.

› Increased technology penetration

through uptake of WebGen™ 200.

Europe, Middle East and Africa (EMEA)

Orica is present in around 50 countries in
the EMEA region. With a large geographic
footprint, EMEA has a broad commodity
exposure, with a focus on copper and
gold in Africa. After exiting our Russia
operations in FY2023, the region has
restructured to focus on growth in mining,
predominantly copper and gold in West
Africa, and Q&C in Europe.

EMEA plays a key role in Orica’s IS&PE
manufacturing footprint with a large
facility located in Sweden, and smaller
facilities elsewhere in the region.

Strategic priorities

Progress in FY2023

› Deliver technology-led differentiation in
the African copper and gold segments,
specifically in underground mining.
› Selective footprint expansion focused

on global miners and FFCs.

› Support our customers’ ESG priorities,
notably in Europe, with EBS products
that are less environmentally intense, and
through specialised bulk emulsions that
allow for safer blasting in challenging
environments (e.g. 4D™ bulk systems).

› Strong technology growth supported

by Cyclo™ and WebGen™.

› New contracts in Africa delivering

profitable growth, particularly in gold
and copper.

› Launched Exel™ Neo, the world’s first
lead-free non-electric detonator range.

› Strength of Orica’s global supply chain
allowing for efficient mobilisation of
new contracts and opportunistic sales
throughout the region.

Orica LimitedAnnual Report 2023PROGRESS AGAINST OUR STRATEGY

Minin g

micals

s
n

D i g i t al Solutio

Customers

Digital Solutions

Our newly established Orica Digital Solutions
segment supports our customers across
the mining value chain, from exploration
to processing. As orebodies are increasingly
becoming harder to find, and as ESG
responsibilities and commitments increase
globally, demand for software, sensors and
data science is increasing exponentially.
Orica Digital Solutions is seamlessly
connecting our customers’ physical worlds
and digital platforms so they can readily
understand and optimise their operations
at every step of the value chain. Orica Digital
Solutions is one of our key growth verticals
as we continue to build and invest in the
next generation of digital solutions beyond
our blasting core. Digital technologies are
enabling blast automation and allowing us
to connect, monitor and track information
to make blasts more predictable, productive
and safer. We are continuing to expand our
delivery of digital solutions that integrate
workflows, providing actionable data and
insights from mine to mill.

Strategic priorities

Progress in FY2023

› Accelerate the adoption of digital

› Presented for the first time as a separate

solutions to deliver safer, more productive
and sustainable outputs across the value
chain through integrated workflows.

› Leverage customer opportunities

resulting from ESG obligations and
exploration of FFCs.

› Integrate and optimise technologies

associated with recently acquired orebody
intelligence businesses including HIG, RIG
Technologies International, RHINO™ and
Axis Mining Technology.

› Broaden GroundProbe slope stability

and technology offerings that facilitate
safer mining across more geotechnical
environments.

Orica business segment.

› Completed the acquisition of Axis Mining
Technology positioning Orica to become
the industry’s first integrated solutions
provider, from mine to mill.

› Significant adoption growth across
GroundProbe and Blast Design
and Execution.

› GroundProbe Tucson, US assembly
plant opened and manufacturing
capacity increased.

Minin g

micals

s
n

D i g i t al Solutio

Customers

Mining Chemicals

Our cyanide business services more than
70 customers globally. It is underpinned
by our integrated manufacturing facility in
Australia and supported by a network of
transfer stations in key gold mining regions
(Malaysia, Ghana and Peru).

Our premium emulsifiers business comprises
of a manufacturing base in Australia and
a Joint Venture in the United States. These
facilities provide critical components to
explosives manufacturing across the world.

The financial results for the Mining Chemicals
vertical are reported within each geographical
segment noted above.

Strategic priorities

Progress in FY2023

› Drive cost and operating efficiencies
through our manufacturing facilities.

› Convert cyanide customers to sparge

product offering safer chemical transport
outcomes by leveraging our network
of transfer stations and decreasing the
risk of LOC.

› Drive technology-led services to support
customers in optimising their leaching
practices and maximising gold recovery.

› Develop new emulsifier product ranges
that respond to customer demand.

› Continued interest in our value-add

cyanide services including our industry-
leading sparge technology.

› Launched an emulsifier using a bio-
based renewable feedstock at one
of our manufacturing sites, currently
undergoing a lifecycle analysis to
credibly quantify carbon benefits.

› Two additional emulsifier ranges

developed, for application with premium
diesels and low-cost market segments.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Orica LimitedAnnual Report 2023RISK

Our approach to risk management

Oversight and monitoring by the Board

Context

Our strategy and risk
appetite settings are
approved by the Board.

Risk identification
and analysis

Risks are identified
and their impact
analysed by the
business on a
regular basis.

Risk treatment
and evaluation

Adequate risk
responses and actions
are implemented by risk
owners to reduce the
level of exposure, or
capture opportunities,
within approved
appetite settings.

Risk monitoring

Risk appetite
performance and
material risks are
monitored through
regular reviews, deep
dives, key risk indicators
and other sources
of assurance.

Communication
and reporting

Risk appetite and
material risk information
is communicated
and reported across
the business and
to the Board.

Risk identification, analysis and treatment by the business

Our risk management
system is informed
and shaped by our
strategic objectives,
our purpose, our values
and risk appetite.

Risk and uncertainty are inherent parts
of doing business. We recognise the
strategic nature of risk as an organisational
value driver and are focused on identifying
and capitalising on the opportunities our
risks present, and controlling and mitigating
the downside risks. Our risk management
framework is designed to support the
delivery of our strategy and vision.

To respond to threats and opportunities,
risk management is embedded at every
level of the organisation.

Risk strategy, policy and processes are
set at the Group level with management
responsible for implementation.
Furthermore, emerging and external risks
and trends are analysed and incorporated
into the strategic planning process.

Our risk management system provides
a framework through which we can
consistently identify, assess, prioritise,
manage, monitor and report risks across
the organisation and is aligned with the
principles of the International Organisation
for Standardization’s (ISO) Risk Management
Guideline, ISO 31000:2018.

Our risk appetite

In FY2023, we reviewed the scope,
applicability, key risk indicators and risk
tolerances of our risk appetite statements
to align to our operating environment,
stakeholder expectations and strategic
priorities. We enhanced and evolved our
risk appetite dashboard reporting through
improved data visualisation. Our risk
appetite dashboard enables effective
monitoring, strengthens the Board’s level
of oversight, and instils a strong risk
awareness across Orica.

Our risk appetite statements are defined based on our material categories of risk:

Strategic

Operational

Information
technology

Financial

Compliance

Inorganic growth

Safety and health

Cyber security

Finance

Technology
and innovation

Environment

IT governance

Tax

Security

People

Compliance

Ethics and
compliance

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Risk oversight and governance

The ‘three lines model’ provides assurance that risks are effectively managed in line with our policies, standards and procedures and is the
foundation of our risk oversight and governance approach:

Board

The Board oversees our risk management and internal control systems, including setting Orica’s risk appetite. The Board also oversees
our material risks and regularly reviews and challenges, either directly or through its committees, the effectiveness of the risk
management process.

Executive Committee

The Executive Committee owns our material risks and is responsible for interrogating the effectiveness of risk mitigation strategies
and monitoring our performance against the approved risk appetite settings.

Line 1

Line 2

Line 3

Management is responsible for
identifying, owning, monitoring
and managing risks and controls.
They are responsible for risk leadership
and instilling a strong risk management
culture across the organisation.

Our group risk function establishes
risk standards, systems and processes
for identifying and managing the risks
material to achieving our strategy.
To support the embedment of risk
management across Orica, the Second
Line coach and challenge the First
Line while working with other risk
disciplines.

Our Internal Audit function provides
independent and objective assurance
over risks and controls. The Third Line
evaluates the effectiveness of key
internal controls, risk management and
governance processes and communicates
directly with the Board (via the Board
Audit and Risk Committee) and the
Executive Committee.

Orica LimitedAnnual Report 2023MATERIAL RISKS AND OPPORTUNITIES

Our material risks
and opportunities are
organised into three
categories depending
on the origin of the risk
and the nature of our
risk response.

› Strategic risks and opportunities are ordinarily beyond our control as they originate from
the external operating landscape. We monitor trends so we can respond to changes in
the environment to limit the impact or create opportunities to deliver long-term value
for our stakeholders.

› Operational risks typically result in negative impacts on our business if the risk events occur.

We actively manage these risks, within our approved risk appetite settings and limits,
through a controls-based approach.

› Business risks impact our ability to execute our strategy and deliver our planned business
outcomes. These risks can also provide upside opportunities and often require a balanced
approach that considers both the risk and reward.

The risks detailed below could materially affect (negatively or through opportunities) our financial
or non-financial performance, and our long-term value creation.

Risk

Risk movement from prior year

Our response

Macroeconomic factors:
commodity demand
Uncertainty in the economic growth outlook
and material fluctuations in commodity
demand could impact demand and margins
of the products and services sold by Orica.

Neutral
The volatility in macroeconomic factors –
such as inflation, talent availability, constrained
global supply chains and monetary policy
– continue to drive uncertain macroeconomic
outcomes. Global economic recovery
continues, albeit slower, despite the volatility
of macroeconomic factors.

Political and regulatory
Uncertain geopolitical dynamics and
regulatory changes could impact our
operations and supply chain, result in
additional compliance obligations,
and increase our cost of compliance.

Neutral
Geopolitical challenges remain prevalent with
policy and security threats to globalisation,
free markets and business continuity.

Climate change
Transitioning to a lower-carbon economy
and physical climate change effects have
the potential to impact the demand for our
products, disrupt our supply chain and impede
our ability to maintain production levels and
service customer demand.

Neutral
Climate-related risks and opportunities remain
prevalent, affecting government policy,
markets, the transition to a lower-carbon
economy and rising stakeholder expectations.

Physical climate-related risks have materialised
in the forms of extreme weather events across
the world in 2023, including flooding in Asia,
wildfires in North America and tropical and
sub-tropical cyclones.

Global emissions remain above committed
Paris Agreement temperature goals with the
current trajectory towards 2.7°C. However,
the 1.5°C pathway is being pursued with
developed nations continuing to justify
stimulus in domestic industry.

The Safeguard Mechanism reforms passed
in the Australian Parliament this year have
brought renewed policy confidence and
investment certainty for Orica on our
decarbonisation plans.

• Strategic planning considering

alternate scenarios, contingency plans,
capability to absorb cost or event
driven pressures.

• Maintenance of a globally diverse

customer base and positioning our
portfolio towards higher growth
commodities, including future-facing
commodities.

• Seeking to ensure contract

mechanisms effectively pass
through our costs.

• Development of new products

and technology.

• Seeking opportunities for supply

chain efficiencies.

• Regular engagement of key

stakeholders to remain informed,
enabling rapid response to changing
regulations, sanctions and trade rulings.

• Active monitoring of the political

situation around our operations and
assessing our exposure to political
and regulatory risks.

• Embedded climate risk into strategic
and financial planning in line with
our ambition to achieve net zero.

• Completed Kooragang Island Tertiary

Abatement project forecast to
eliminate 48 per cent of Scope 1 and 2
emissions.

• Assessing emissions reduction and

transition risk resilience.

• Investigating lower-carbon AN product

offerings.

• Responding to the refreshed Safeguard
obligations and supporting advocacy
for a lower-carbon economy.

• Completed FY2022 global physical risk
assessment to inform further actions
to better understand physical climate
risks for Orica assets and key ports and
customer sites in our supply chain.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Risk

Risk movement from prior year

Our response

Customer and technology disruption
Rising adoption of new technology and fast-
paced competitor development could impact
our ability to commercialise or generate an
adequate return on previous investments
in technology and services.

Neutral
Competitor and customer investment in
technology continues to accelerate with a
focus on automation, digitalisation, data,
hydrogen and renewable energy technology.
Security of supply remains a key challenge
in the market, which presents some upside
opportunity for Orica. We are also seeing
increased prevalence and pace of artificial
intelligence (AI) tools with corresponding
high rates of market interest and adoption.

Cyber security
A compromise to the confidentiality,
availability and/or integrity of our critical
technology services and data could impact
our reputation and ability to operate.

Increase
Global cyberthreats continue to outpace
society’s ability to effectively prevent and
manage them, while presenting a threat
to safe and reliable operations.

Increasing society and investor
expectations
Failure to respond to the rapidly shifting ESG
expectations of our key stakeholders could
impact our reputation and ability to operate.

Increased rate and sophistication of attacks
drives the need for constant control
environment improvement.
Increase
Societal standards for businesses to act
responsibly continue to increase. Failing to
anticipate or respond to social pressure could
see increased regulatory burden supply and/or
operational disruption, damaged stakeholder
relationships and our reputation.

A growing recognition of the nexus between
climate and other sustainability areas exists,
particularly biodiversity.

Ethical business practices
and good governance
Non-compliance with laws and regulations
including those relating to competition, anti-
bribery and corruption could expose Orica
to penalties in the form of fines, criminal
sanctions, civil suits and reputational damage.

Increase
A greater focus on strengthening anti-bribery
and corruption laws, increasing penalties
and the adoption of protectionist measures
by countries has increased the complexity
of trade compliance requirements. The
imposition of sanction regimes on countries
across our global operations has increased
the compliance risks of doing business.

• Continue to develop products and
accelerate adoption of technology
and solutions to support our customers
in their growth, productivity and
sustainability goals.

• Focusing on opportunities to

accelerate the development and
commercialisation of new products.

• Development of Orica Digital Solutions
to meet our customers’ most critical
and emerging challenges.

• Reviewing applicability of AI in internal

business systems and products.

• Continuous review and strengthening of
our Information Technology (IT) controls.

• Conduct annual cyber security

preparedness and crisis activities.

• Proactive engagement of stakeholders

with respect to our sustainability
strategy and roadmap.

• Continued focus on modern slavery
due diligence and management of
modern slavery impacts.

• Improving our First Nations

engagement through the development
of the Australian Reconciliation Plan
(RAP) to engage across supply chain,
recruitment, employee development
and governance.

• Communicating our support for truth
and reconciliation of First Nations
people in Canada.

• Establishing partnerships with First
Nation groups in Canada to bring
training and employment opportunities
and provide resources to essential
programs and community activities.

• Continuing community investment
through the Orica Impact Fund.

• Implemented Diversity, Equity and

Inclusion Strategy.

• Setting new Scope 1 and 2 targets,

and Scope 3 ambition.

• Extensive compliance procedures

and controls, including entering or
selling products and services into new
countries and screening customers and
vendors for potential non-compliance.

• Provided training to our people to

understand and abide by our Code
of Business Conduct.

• Conducted whistleblower awareness

training and communication to
our people about when and how
to raise concerns.

• Modern slavery training with internal
stakeholders and modern slavery due
diligence with suppliers.

Orica LimitedAnnual Report 2023MATERIAL RISKS AND OPPORTUNITIES

Risk

Risk movement from prior year

Our response

Safety, health, environment, and security
The inherent nature of our business
presents safety, environmental (including
biodiversity), health and security risks.
Improper management and response to these
risks could directly impact our employees,
customers and the communities in which we
operate. Risk events could also disrupt our
operations, lead to financial penalties and
impact our reputation.

Neutral
Safety, health, environment and security
continues to be a priority area of focus
for our business.

• Safety is our number one priority.
We manage fatalities and serious
harm risks through our Major Hazard
Management (MHM) program.

• Ongoing focus on building health

systems and processes that allow us to
enhance physical and mental health.

• Continue to manage our key

environment risks and prevent or
minimise impacts to the environment.

• Continued implementation of Track
and Trace technology across relevant
global sites.

Supply chain disruption
Interruption to the integrity and/or continuity
of our supply chain could impact our margins
and our ability to maintain security of supply
for our customers.

Neutral
The susceptibility of global supply chains
to disruption continues to be a challenge.
Demand increase, extreme weather events,
geopolitical tensions which have resulted in
capacity constraints on the major shipping
lanes and pricing pressures continue to create
a complex operational environment.

• Continued strong focus on

maintaining security of supply
for our customers globally.

• Work with our suppliers and

conduct supplier due diligence
to manage performance.

• Managing our modern slavery

risks in our supply chain.

Product quality
Poor-quality products or services could impact
performance against required outcomes
causing harm to people and the environment,
impacting our reputation and resulting in
regulatory actions or penalties.

Neutral
We are committed to responsible product
stewardship and managing the impacts of our
products and materials on the environment
and human health and safety.

• Developed new Scope 3 ambition

to support net zero ambition.

• Ongoing focus on product quality

and quality improvement to ensure
our products reliably meet our
customers’ needs.

• Conduct global and regional supplier
due diligence to assess capability
and performance.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

OUR BUSINESS MODEL

Blasting and beyond

Our business activities

Orebody
intelligence
Through our growing
orebody intelligence
portfolio, which includes
RHINO™, Axis Mining
Technology, DRILLMax™,
DRILLHub™, WIREBmr™,
we are empowering
customers with real-
time insights that
help them accurately
define their orebodies,
inform downstream
decision-making and
optimise extraction
strategies while
delivering sustainable
and profitable mining
operations.

Design and
model
We collaborate
with customers and
industry to develop
technologies and
integrate vast
amounts of complex
geotechnical data
into the blast design
processes. Our
OREPro™ 3D Predict
blast movement
modelling software
enables situational
awareness and
improved
grade control.

Our products and services

Digital solutions
› Orebody intelligence
(e.g., RHINO™, Axis
Mining Technology,
DRILLMax™,
DRILLHub™,
WIREBmr™)

Digital solutions
› Blast design

and modelling
(e.g., BlastIQ™,
SHOTPlus™,
OREPro™ 3D
Predict)

Mine simulation
and optimisation
We deliver mining
chemicals and
technologies to aid
with processing and
are building capability
and technologies in ore
processing with digital
tools like Integrated
Extraction Simulator
(IES) and Design for
Outcome (DfO). This is
helping our customers
to optimise their entire
mining value chain.

Measure
and monitor
Our post-blast
monitoring suite,
including GroundProbe
technologies and
measurement
technologies deliver
insights around
blast outcomes.
FRAGTrack™, using
advanced binocular
machine vision and
AI technology and
a 2D/3D technique,
provides automated
high-quality
fragmentation imagery
and data with auto-
analysis capability.

Digital solutions
› Advanced

processing and
analytic software
(e.g., MonitorIQ™)
› Blast measurement
(e.g., Advanced
Vibration
Management,
BlastIQ™,
BlastVision®,
FRAGTrack™)
› Radar and laser-

based monitoring
systems (e.g.,
GroundProbe
RGR-Velox™)

Digital solutions
› Process optimisation
(e.g., Integrated
Extraction Simulator,
Design for Outcome)

Mining chemicals
› Analysers and

mineral processing
optimisation
(e.g., PROService™)

› Emulsifiers
› Process simulator

software
(e.g., LeachIT™)
› Sodium cyanide
› Sodium cyanide
delivery systems
(e.g., Sparge)

Mine to mill

Blasting

At the core of our business
is the vertically integrated
global provision of bulk
explosives and blasting
products and services.
We are a global leader
in blasting services,
providing trusted and
proven expert market
solutions in surface and
underground mining
and construction. The
convergence of new
technologies and solutions
including WebGen™
wireless initiating systems
and 4D™ bulk systems
enables us to adjust
and optimise customers’
mine plans, so they can
operate more efficiently,
precisely and responsibly.

Digital solutions
› Blasting (e.g., BlastIQ™,

LOADPlus™)

Explosives
› Ammonium nitrate
› Ammonium nitrate emulsion
› Bulk explosives (e.g., 4D™

Bulk Systems, Fortis™ Protect)

› Packaged explosives

(Senatel™)

Initiating systems
› Boosters (Pentex™)
› Conventional initiating
systems (Exel™ Neo)

› Electronic blasting systems
(e.g., i-kon™ III, eDev™ II,
uni tronic™ 600, ORBS™)
› Wireless initiating systems

(e.g. WebGen™)

Blasting services
› Cyclo™
› Delivery systems

(e.g., Bulkmaster™ 7)
› Technical and specialist

services

Automation
› Avatel™

Orica LimitedAnnual Report 2023KEY PERFORMANCE INDICATORS

Orica uses a range of financial and non-financial
metrics to measure the Group’s performance.
These metrics and associated targets are regularly
reviewed in response to changes in our operating
environment, stakeholder expectations and strategy.

Externally assured data
Denotes information subject
to limited assurance by EY.

Link to Executive remuneration
Denotes a KPI which is directly
linked to FY2023 Executive STI
performance metrics.

KPI:
EBIT1

FY23

FY22

FY21

KPI: RONA – Continuing
operations1

KPI: Cash generation efficiency
– continuing operations1

$698m

$579m

$427m

FY23

FY22

FY21

12.6%

11.4%

8.1%

FY23

FY22

FY21

46.6%

47.0%

48.9%

Underlying earnings prior to deducting
interest and tax expenses from
continuing operations, before
individually significant items.

RONA is defined as EBIT/Net operating
assets. Net operating assets is defined as
rolling 12-month average assets including
net property, plant and equipment;
intangibles at NBV; current and non-
current investments in associates at
current carrying value; trade working
capital; non-trade working capital
excluding environmental provisions.

Calculated as earnings before interest,
tax, depreciation and amortisation
(EBITDA) less (average trade working
capital movements, income tax paid,
net dividends/(earnings) from associates,
and sustaining capital expenditure)
divided by EBITDA.

KPI: Serious injury case rate
including fatalities (SICR)1

KPI: Women in senior
leadership1

KPI: Net Scope 1 and 2
emissions1

FY23

FY22

FY21

0.131

0.157

0.210

FY23

FY22

FY21

34.8%

28.9%

28.0%

FY23

FY22

FY21

1,704

1,875

1,898

The number of serious injuries or illnesses
that occur in the workplace for every
200,000 hours worked. Serious injuries
are those which result in lost work time,
and include fatalities, temporary or
permanent disablement, hospitalisations,
and less significant injuries where the
affected person is unable to attend work
for a day or more.

The percentage of executive positions
within Band D (Senior Manager) level
and above (i.e., CEO-2 (Band D+))
held by women.

The total amount of greenhouse gas
emissions, measured in kilotonnes of
carbon dioxide equivalent, that can be
directly attributed to Orica’s business
activities (Scope 1, i.e., chemical
processes) or indirectly from purchased
electricity, heat, steam or cooling
(Scope 2).

1. Refer section 3.1 of our Remuneration Report for the formal definitions used for FY2023 STI purposes.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

The remuneration of Orica executives and
employees is aligned with the successful
delivery of our strategy. Several KPIs are used
as specific measures in determining incentive
plan outcomes to ensure incentives are
linked to actual performance.

KPIs not explicitly linked to Executive short-
term incentive (STI) performance outcomes
are important measures of strategic

performance and long-term value creation
and key to internal management reporting
and decision-making. The Board has an
overriding discretion to adjust final
outcomes under the terms of the STI plan,
to ensure Executive reward outcomes are
reflective of our overall financial and
non-financial performance and aligned
to shareholder experience.

Remuneration Report
pages 86 to 110.

Where applicable with respect to our non-financial
metrics, prior period information has been restated
to align with the presentation in the current period
to reflect updated methodologies or classifications.

KPI:
Loss of containment (LOC)1

KPI:
Inclusion index

FY23

FY22

FY21

FY23

FY22

87%

86%

FY21

Not measured

The number of incidents where a
contained substance escapes from
containment and results in a Severity 1
or greater environmental impact on
water or soil.

An index used to measure sense of
belonging and inclusion by our people.
This data is collected through our
employee engagement survey ‘Our Say’.

KPI:
Total community investment

FY23

FY22

FY21

$4.1m

$3.7m

$2.4m

The amount of investment in supporting
community projects and initiatives,
contributing to society, and benefiting
future generations.

Orica LimitedAnnual Report 2023
OUR STAKEHOLDERS

We proactively engage with a diverse set of global
stakeholders who express an interest in our business.
Our engagement is collaborative, proactive and
transparent to build trust, support the delivery of
our business strategy and create long-term value.

We undertake a range of activities
that enable us to better understand the
interests and concerns of our stakeholders,
and identify opportunities to better respond
to their needs.

Stakeholder

What issues are important to them?

How we engage our stakeholders

Employees and contractors

• Safety, health and wellbeing

• Global culture and engagement

Our people are key to delivering on our
purpose. We communicate with and listen
to our people and strive to provide them
with an inclusive workplace with
development opportunities.

• Skills and capability development

• Diversity, equity and inclusion

• Sustainability

• Reward and recognition

survey ‘Our Say’

• Interactive webcasts with the CEO,

Executive Committee and
senior leaders

• Direct people leader communication

• Performance and development

plans and reviews

• Internal communications channels,
including intranet and internal
social media

Read about how we engage our
employees and contractors in
People and Capabilities.

Customers

We aim to deliver solutions and technologies
that drive safety, productivity and sustainability
outcomes for our customers across the globe.
Listening to their feedback helps identify
opportunities to improve our products and
customer service. We aim to raise awareness
of automation and digital solutions enable
more productive and safer mining.

• Safety

• Security of supply

• Sustainability of products and services

• ‘Voice of Customer’ platform

capturing feedback on customers’
experience and other customer forums
including net promotor score (NPS)

• Innovative and reliable products and new

• Contract reviews

technology

• Improving productivity and recovery

Suppliers and business partners

• Managing supply chain risks, including

We aim to treat suppliers fairly and ethically
and be a partner of choice. Collaborating
with others across our supply chain helps us
address social and environmental challenges
and deliver on our strategic goals.

sustainability risks

• Fair contracting and on-time payment

• Human rights and modern slavery

• Executive engagements

• Industry and sustainability forums

• Digital platforms (webinars,

support platforms)

• Technology site tours and forums

Read about how we engage our
customers in Customers, Technology
and Innovation.

• Sourcing and procurement activity,
including engagement on modern
slavery risks and processes

• Contract reviews

legislation and due diligence requirements

• Supplier sustainability questionnaires

• Supplier forums

Read about how we engage suppliers
in Community and Relationships.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Stakeholder

What issues are important to them?

How we engage our stakeholders

Local communities

• Product safety and security

• Stakeholder engagement plans

Engaging with our local communities helps
inform our strategy, define our priorities
and advance sustainable solutions to
common challenges.

• Strong partnerships

• Community investment programs

• Investment in communities

• Local stakeholder engagement

• Local operational impacts including water,

sessions

air and noise

• Support following natural disasters

• Economic opportunities including
employment and procurement

• Grievance mechanisms and

other feedback

Read about our engagement with local
communities in Community
and Relationships.

Investors and financiers

• Financial performance and position

• Interim and full-year results briefings

We engage with financial capital providers
to promote a strong shared understanding
of Orica’s value proposition, strategy and
performance. With investment decisions
increasingly integrating environmental,
social and governance criteria, knowledge
of our sustainability performance is helping
drive competitive advantage.

• Business strategy and growth opportunities

• Investor Day

• Corporate governance

• Annual General Meeting

• Sustainability approach, commitments

and progress

• Disclosure documents, including
results announcements, investor
presentations and other
ASX lodgements

• Annual Reporting Suite, including

Climate Action Report and ESG Data
Centre

Government and regulators

• Regulatory compliance, good governance

• Meetings with political stakeholders,

Dialogue with national and local
governments and regulators allows us to
understand their priorities and concerns
and provides an opportunity to share our
views and objectives. We engage with
governments and regulators on topics that
may impact trade, competition, operating
licenses and operational competitiveness.

We also work with and engage civil
society including industry associations,
non-government organisations, research
and technical institutions.

More detail is available on our website.

and ethical business conduct

public officials and regulators

• Effective policy development and probity

• Hosting site familiarisation tours

• Innovation, research and development

• Submissions to government and

regulatory consultations

• Applications for grant funding

Learn more
orica.com/
sustainability

Read more about our actions
in Our Performance on page 36.

Orica LimitedAnnual Report 2023

OUR PERFORMANCE

Non-International Financial Reporting Standards (Non-IFRS) information

This report makes reference to certain non-IFRS financial information.
This information is used by management to measure the operating performance
of the business and has been presented as this may be useful for investors.
This information has not been reviewed by the Group’s auditor.

Where applicable with respect to our non financial metrics, prior period
information has been restated to align with the presentation in the current
period to reflect updated methodologies or classifications.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

SAFE AND RESPONSIBLE
BUSINESS

We pride ourselves on conducting our business safely and responsibly, from
how we work with our suppliers and manufacture our products to how we
deliver for our customers. Our approach to business ethics is governed by
robust risk management and corporate governance frameworks. We continue
to strengthen our safety programs and are committed to delivering on our
promise to keep people – our employees, contractors and local communities
– safe, always.

0 Fatalities1

0.00

SLICR2

Serious Injury Case Rate (SICR)

0.220

0.210

0.169

0.157

0.131

Product

Security – Zero
Severity 34 or higher
incidents

0.131

SICR3

Down 20 per cent from FY2022

185

Whistleblower reports

FY2019

FY2020

FY2021

FY2022

FY2023

Received in FY2023

Serious Life-Changing Injury Case Rate (SLICR)5

0.017

0.012

0.006

0.000

FY2020

FY2021

FY2022

FY2023

1. Fatalities are categorised by a review of

Orica's degree of control over circumstances
of the event leading to the fatality. We record
non-work related and third-party fatalities
separate to this metric. Third-party fatalities are
incidents that occur beyond our Orica-controlled
operations and network.

2. Serious Life-Changing Injury Case Rate

(unit of measure: per 200,000 hours worked).

3. Serious Injury Case Rate (unit of measure:

per 200,000 hours worked).

4. Misuse of security sensitive Orica product to

cause actual harm while Orica has no control
of the product; or Significant regulatory
action taken with total cost of legal action/
fines or prosecution between $1,000,000
and $10,000,000; or Sustained adverse
media reporting at the national level.

5. Metric introduced in FY2020.

Orica LimitedAnnual Report 2023SAFE AND RESPONSIBLE BUSINESS

Workplace safety and
wellbeing

Our safety performance has markedly
improved this year, with no fatalities or
serious life changing injuries occurring in
our controlled operations, and a significant
reduction in serious injuries.6

Major Hazard Management
(MHM)

As in previous years, our priority focus
has been on ensuring controls to prevent
potential fatal and serious life-changing
injuries are in place at all our operations
in alignment with our Safety strategy.

MHM is our key program to deliver this
strategy, identifying the most serious
risks to our people, and implementing
controls to manage those risks. Our MHM
program covers 19 major hazards common
to most of our operations, supplemented
by additional Major Hazard information
specific to important processes and
technologies. We use feedback from our
assurance processes and High Potential
Incidents (HPIs) to develop and improve
our MHM controls. This year, we made
significant improvements to the control
frameworks for major hazards related
to rockfalls and flyrock.

Our Health strategy continues to focus on
controlling exposure to material harmful
agents, managing fitness for work and
building health systems and processes
that allow us to enhance the physical and
mental wellbeing of our people. Improved
exposure monitoring reporting has identified
a 32 per cent increase in exposure incidents
allowing for the further prioritisation of
controls for respirable dust, trinitrotoluene
(TNT) and lead exposure. Site-based
competency reviews were completed, and
additional health resources and capabilities
were added to support the implementation
of more robust controls.

We completed over 13,000 control
verifications this year, generating more
than 3,800 improvement actions. In a
program that has taken three years, we also
completed the first round of verification for
all Major Hazards at all sites. This program
generated 12,000 improvement initiatives,
90 per cent of which have been completed.

Additionally, following a pilot program,
we incorporated the Dust Suppression
and Mitigation Key Control Performance
Statement (‘KCPS’) and Manager Key
Control Verification (‘mKCV’) material into
our MHM program. This material is designed
to manage exposure to respirable mine
dusts, such as silica, and protect our people
from their associated health hazards. It is
currently being rolled out by the regions.

We empower our people to call an immediate
stop to work if they observe a potentially
hazardous situation to people, environment
and cultural heritage. In FY2023, the
number of stops called was 4,181.
Our employees understand they are
empowered, and expected, to call a stop
work to ensure safety controls are in place.

Serious injury performance

In FY2023, no serious life-changing injuries
were recorded. Our Serious Life-Changing
Injury Rate (SLCIR) per 200,000 hours
worked was 0.000 against a target of
under 0.011. Our Serious Injury Case Rate
(SICR) was 0.131, which is a 17 per cent
improvement on our FY2022 performance,
and below our target of 0.149 serious
injuries per 200,000 hours worked. With
approximately 20-40 per cent of our serious
injuries arising from hazardous situations
which should be controlled under our MHM
program, there is still an opportunity to
reduce our SICR target in FY2024.

Product distribution safety

Safe distribution of our products continues
to provide challenges, particularly where
activities are outside of Orica’s control.
In some regions road infrastructure also
presents higher risks. There were eight
significant distribution events recorded in
FY2023, one of which was under Orica’s
control. The remainder were outside our
Orica-controlled network, and occurred
during product shipments by third-party
providers. One of these events resulted in
two fatalities to members of the public,
when the light vehicle they were travelling
in collided with a truck in a convoy carrying
Orica products in Uganda. The event is
under investigation and any learnings will
be shared across our transport networks.

6. Those where personnel are unable to report for work because of their injuries.

Safety Leadership
in Action

Orica’s NextGen Safety Leadership
program is designed for operational
leaders who lead teams on the
frontline and manage our Major
Hazards every day. NextGen builds
an understanding of the role of trust
in achieving safe, high performing
teams and effectively influencing
safety-critical behaviour. The
NextGen program gives frontline
leaders an understanding of the
psychological drivers of behaviour,
and the ways successful leaders
influence their team’s thinking and
behaviours. It provides practical
tactics to build trust and develop
safe behaviours in everyday working
situations such as pre-start meetings,
inspections, inductions and other
safety interactions, and a supportive
team environment where these skills
can be practised. In FY2023, we
completed 91,067 safety leadership
interactions, up 9.7 per cent from
FY2022.

Learn more
orica.com/Sustainability/
responsible-business

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Mental and physical health
in the workplace

Mental and physical wellbeing is critical for
our people to thrive. To understand where
we can support mental and physical health
across Orica, we designed and implemented
a psychosocial risk assessment for parts
of the organisation. Psychosocial risks are
factors that may increase the risk of work-
related stress and can lead to psychological
distress and physical harm. Common
psychosocial hazards at work include poor
organisational change management, remote
or isolated work, poor physical environment,
lack of inclusion and equity, bullying and
harassment. The work included a survey-
based assessment, organisational desktop
review and focus group interviews to identify
and assess workplace psychosocial factors
that can impact our people’s mental health
and wellbeing. In FY2024, we will analyse
and evaluate the data collected to deliver a
risk profile for the areas of the organisation
studied. This will allow for demonstratable
data and risk-based prioritising of effective
risk mitigation initiatives.

Product security

Cyber security

At Orica, we implement controls to mitigate
risks associated with products potentially
being used for unintended purposes. In line
with our strategy and to demonstrate our
commitment to product stewardship, we
are implementing Track and Trace across
our global sites that manufacture packaged
explosives and initiating systems, regardless
of whether there is a regulatory requirement
to do so.

The technology enables us to provide
detailed information to authorities in the
event of lost or stolen product, or, if product
is recovered in the hands of unauthorised
persons. Track and Trace technology has been
proven to facilitate the rapid apprehension
of malicious actors and has the added
benefit of higher accuracy inventory
management. In FY2023, we had zero
Severity 37 product security incidents
and 13 Severity 2 incidents. Of these,
10 occurred outside of Orica’s control.

We regularly communicate to our employees
on case studies, learnings across the
organisation and the organisational standards
and guidance tools in place to support
the organisation.

We participated in the Global Congress
on Chemical Security and presented
the transport security practices we have
implemented in Latin America. The Global
Congress is co-sponsored by INTERPOL, the
US Department of Homeland Security, the
FBI and the US Defence Threat Reduction
Agency. Orica is a member of the Emerging
Threats Industry Advisory Group that is
part of the Global Congress. This group
is focused on preventing access to explosives
precursor chemicals and is working toward
the development of a global security
standard for transport.

Cyber security is key to protecting Orica’s
customers, people, products, sites and
sensitive information. Orica’s cyber strategy
is focused on four key outcomes:

• Single pane of glass visibility, correlation
and management of cyber events within
business, digital and manufacturing systems.

• Zero trust requiring constant verification
of identity, device, access and services.

• Advanced detection, response and

recovery controls to safeguard our data.

• Relentless focus on foundational controls
including privileged access management,
multi-factor authentication, security
patching, system hardening and testing
of backup and recovery.

The cyber security risk landscape is constantly
evolving. To stay ahead of malicious actors,
we constantly test and improve our cyber
security protections and response plans.

In FY2023, we implemented a specialist
Cyber Physical Systems Protection Platform
and related processes across 100 per cent
of our key manufacturing sites to decrease
the risk of cyber-related impacts. We also
implemented multiple engineering controls
to identify, protect, detect, respond
and recover from cyber security events.
This includes providing a single security
layer across our cloud environments, to
protect our public online environments,
and identify, prioritise and remediate
security vulnerabilities across our systems.

Our Cyber Security team continues to
grow in key centres around the world to
support the increased capability. We also
continue to mature the cyber awareness
program with regular training and phishing
email simulations that build company-wide
capability. We regularly test our cyber security
posture and our response preparedness in
case of malicious cyber events.

FY2024 safety and
wellbeing priorities

FY2024 product security
priorities

Continue to focus on the
development and verification
of Key Controls within our
MHM program.

Focus on reducing the highest
frequency High Potential
Incidents globally.

Establish a global Mental
Health Strategy.

Continue to implement Track
and Trace at sites manufacturing
packaged explosives and
initiating systems.

Actively participate in
international forums and
advocate for a global transport
security standard.

FY2024 cyber security
priorities

Enhance access management
tools and related processes.

Refresh Data Loss
Prevention Strategy.

7. Severity 3: Misuse of security sensitive Orica product to cause actual harm while Orica has no control of the product; or Significant regulatory action taken with total

cost of legal action/fines or prosecution between $1,000,000 and $10,000,000; or Sustained adverse media reporting at the national level.

Severity 2: Loss of a security sensitive Orica product. The product may or may not be recovered and if recovered was in the possession of an unauthorised third party;
or Significant regulatory action taken with total cost of legal action/fines or prosecution between $100,000 and $1,000,000; or Sustained adverse media reporting
at the sub-national level.

Orica LimitedAnnual Report 2023

SAFE AND RESPONSIBLE BUSINESS

Ethical business conduct

Our Code of Business
Conduct (Our Code)

Our Code is our guide to doing the right
thing. It establishes how we conduct
ourselves to deliver on Orica’s purpose,
vision and strategy. Our Code has five
sections aligning with each of Our Charter
values – Safety, Respect, Together, Integrity
and Excellence.

Our Code was updated in July 2022 to
reflect changing societal expectations,
strengthen our culture of safety and
emphasise our strong position on respect
for the communities in which we operate.
To accompany the updated Code,
a mandatory online training module
was rolled out in 14 languages across
our global operations.

Respect@Work

At Orica, we are committed to providing
respectful workplaces in which every
employee works in a safe and secure
environment that is free from discrimination,
vilification, harassment, bullying and
victimisation. Orica will not tolerate any
unacceptable behaviour and appropriate
action will be taken if this policy is breached.

In line with our commitment to prevent
and eliminate non-inclusive behaviours,
especially targeting sexual harassment
and discrimination in the workplace, in
FY2023, we continued our Respect@
Work approach to embed a culture of
respect and safety. Mandatory leader and
employee learning modules that clearly
define the expectations and obligations of
our people within Australia were successfully
implemented, resulting in an increase in
reported cases. Respect@Work has helped
to shift our culture to empower people
to speak up, demonstrate practices of
building psychological safety and call out
unacceptable behaviour.

Based on the success, learnings and
constructive feedback received from
the Australian roll-out, the global
Respect@Work program will be
deployed in FY2024.

Reporting issues
and grievances

We are committed to ensuring everyone
can raise concerns freely and without fear.
Concerns are dealt with swiftly, fairly and
confidentially using our Speak Up service
(operated by third-party provider Navex)
and authorised internal and external
recipients, as per our Whistleblower Policy.

In FY2023, we received 185 whistleblower
reports, equivalent to 1.4 reports per 100
employees. Based on benchmarking supplied
by our independent Speak Up service
provider, 1.5 reports per 100 employees
represents an optimal rate that is high
enough to demonstrate broad employee
awareness of whistleblowing processes
but low enough to indicate there are not
excessive issues and grievances.

Whistleblower reports in FY2023 were
primarily in relation to bullying and
harassment, conflict and inappropriate
behaviours. Twice a year, whistleblowing
reports are provided to the Board Audit
and Risk Committee.

In FY2023, 57 per cent of reports were
partially or fully substantiated. Where
allegations were substantiated, appropriate
action was taken to remedy and prevent
reoccurrence.

Our Whistleblower Policy

At Orica, we are
committed to providing
respectful workplaces
and safe and secure
environments free from
discrimination, vilification,
harassment, bullying
and victimisation.

Reports investigated or not pursued

32%

68%

Proportion of reports investigated

Proportion of reports not pursued

Reports by outcome

43%

57%

Proportion of reports investigated
that are fully or partially substantiated

Proportion of reports investigated
that are unsubstantiated

Reports by category

17%

48%

18%

HR, Diversity and Workplace Respect

Business Integrity

Workplace Grievances

Misuse or Misappropriation of Assets

Environment, Health and Safety

Accounting and Financial Reporting

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Ethics and compliance

In recognition of the rapidly changing ethics
and compliance landscape, an independent
benchmarking review was undertaken in July
2023 to assess the maturity and robustness
of our Ethics and Compliance program.
The review found our program is established,
embedded and operating to meet
expectations within recognised standards.
Identified areas for improvement will be
our focus areas for FY2024.

Our Code

Tax transparency

Tax transparency is a critical element of
ethical business behaviour. We comply with
all relevant taxation laws in a responsible
manner, with all taxes properly due,
accounted for and paid. A tax standard and
relevant procedures are in place to ensure
our tax compliance obligations are managed.
Our effective tax rate before individually
significant items was 30 per cent.

FY2023 Tax Transparency Report

Human rights

We are committed to respecting and
upholding the human rights of our people
and those who may be impacted by our
operations and business activities. With
the mining and metals industry facing
increased scrutiny over its human rights
obligations and approaches, we continue to
work to meet stakeholder expectations and
support the industry in raising human rights
protections and processes.

Our approach to respecting human rights
is guided by internationally recognised
standards such as the UN Declaration
of Human Rights, the UN Guiding
Principles on Business and Human Rights,
and the International Labour Organisation’s

Declaration on Fundamental Principles
and Rights at Work. Our approach is
embedded within Our Charter, Our Code,
risk management approach and
organisational policies.

Modern slavery

Efforts to address modern slavery require
a sustained, united collaboration among
various stakeholders, including governments,
non-governmental organisations,
and businesses. While we are actively
strengthening our approach to managing
modern slavery risks throughout our
operations and supply chain, we are
cognisant that there is still work to be done.

In FY2023, we made progress against our
commitments and continued to prepare for
increasing legislative requirements across
Orica’s global footprint. We are conscious
of strengthening our due diligence across
our value chain as we progress into FY2024.
We have engaged a professional services
firm with human rights and modern slavery
experience to complement our team
undertaking a modern slavery risk assessment
across our operations and supply chain.

FY2023 Modern Slavery Statement

FY2024 human rights
priorities

Finalise enterprise-wide human
rights risk high-level review.

Embed modern slavery risk
assessment findings and
recommendations into enterprise
risk management approaches.

Renew Australian Reconciliation
Action Plan.

Art by
Kerri-Ann
Taggart

First Nations
engagement and
cultural heritage
protection in Australia

Following formal endorsement
from Reconciliation Australia,
Orica officially launched our first
Reflect Reconciliation Action Plan
(RAP) in Australia in late 2022.

Our vision for reconciliation is a
future based on mutual respect,
where we acknowledge and
learn from our shared past and
forge a path forward for a more
hopeful future. We seek to form
a genuine connection to the
land and waters on which we
operate by building respectful and
meaningful relationships with First
Nations communities who have
always cared for their surrounding
environments.

Read about our
First Nations-related
community investment
work in Community and
Relationships.

Learn more
orica.com/Sustainability/
responsible-business

Orica LimitedAnnual Report 2023

FINANCIAL PERFORMANCE

GROUP RESULTS

Footnotes that apply to financial performance are described on page 50.

Year ended 30 September

Sales revenue from continuing operations

EBITDA from continuing operations1

EBIT from continuing operations

EBIT from Minova (discontinued operations)

Total EBIT2

Net financing costs

Tax expense before individually significant items

Non-controlling interests before individually significant items

NPAT before individually significant items

Individually significant items after tax attributable to Orica shareholders

NPAT after individually significant items (statutory)

Note: numbers in this report are subject to rounding and stated in Australian dollars unless otherwise noted.

2023
A$M

7,945.3

1,090.6

698.1

–

698.1

(143.7)

(166.2)

(19.2)

369.0

(73.3)

295.7

2022
A$M

7,096.4

949.6

563.8

14.7

578.5

(100.3)

(154.0)

(7.2)

317.0

(256.9)

60.1

Change
%

12%

15%

24%

(100%)

21%

43%

16%

Group commodity exposure

Fundamentals remain strong across commodities, driving high demand for Orica products and
services in most markets.

24%

Copper and FFCs continued to be the highest commodity exposure for Orica, reflecting continued
demand. FFCs continue to present a significant opportunity and Orica is in a strong position to take
advantage of this long-term trend.

Gold revenue grew in each region.

14%

21%

Q&C exposure increased versus the pcp, driven by infrastructure projects in the United States.

Exposure to metallurgical coal (Met Coal) grew the strongest versus the pcp due to high
demand in Australia. Thermal coal exposure declined versus the pcp mostly due to the
strength of other commodities.

14%

Copper

Q&C

Iron ore

Other

Digital Solutions

Gold

Thermal coal

Met coal

FFC*

* Future-facing commodities include nickel, lithium, lead, and zinc with increasing demand that are essential components of low-emissions energy technologies.

Orica LimitedAnnual Report 2023Introduction and Overview

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Directors’ Report

Financial Report

Other Information

Financial performance

Underlying EBIT from continuing operations increased by 24 per cent on the pcp to $698 million and excluding Russia in FY2022, underlying EBIT
increased by 29 per cent on the pcp. EBIT growth in FY2023 reflected growth in volumes, increased utilisation of manufacturing plants, benefits
from commercial discipline in both customer and supply contracts, and increased earnings from digital technology offerings. This was offset
partly in Mining Chemicals, mainly due to the planned cyanide plant turnaround.

FY2022 to FY2023 EBIT (A$M)

564

(21)

543

(14)

(8)

698

Russia's
contribution

FY2022
Underlying EBIT
– continuing
operations

FY2022
Underlying EBIT
– continuing
operations
(exc. Russia)

Foreign
exchange

Volume

Manufacturing

Mix and
margin

Mining
Chemicals

Digital
Solutions

Global
Support

FY2023
Underlying
EBIT

Growth in adoption of digital technologies,
the introduction of new solutions, and
contribution from the newly acquired
Axis Mining Technologies (Axis) business,
grew earnings in the new Digital
Solutions segment.

Mining Chemicals

Mining Chemicals earnings were impacted
by lower production volume at Yarwun due
to a turnaround and lower sales of cyanide
in Latin America.

Global Support

Global Support costs increased versus the
pcp primarily due to inflation and increased
non-billable employment costs.

Russia’s contribution

Manufacturing

Following the sanctions placed on Russia
in FY2022, Orica completed the exit of its
operating business in Russia in September
2022. There has been no contribution from
the Russia operations in FY2023.

Foreign exchange

During FY2023, the Australian dollar
depreciated against key foreign currencies,
resulting in a favourable impact to EBIT
on translation of foreign currency
denominated earnings.

Volume

Ammonium nitrate (AN) volumes, after
removing Russia volumes, increased by
two per cent on the pcp reflecting increased
mining activity driven by strong commodity
demand, and Orica’s ability to provide
security of supply to customers in
a continuing tight supply market.

Electronic blasting systems (EBS) volumes
increased by three per cent on the pcp as
new contracts ramped up and customers
continued the shift away from conventional
detonators. EBS accounted for 25 per cent
of the volume uplift contribution in EBIT.

Manufacturing performance improved as
a result of increased volumes at the large
continuous plants. The pcp result included
costs for alternate sourcing of AN during
the Carseland plant turnarounds in North
America, which have not been repeated
in FY2023.

Mix and margin

EBIT growth across the regions was led by
sustained commercial discipline and greater
technology penetration.

The benefit of the high level of recontracting
which occurred in the second half of FY2022
has flowed into the FY2023 results.

Digital Solutions

Customers’ desire for productivity
gains and efficiency improvements,
as well as increasing ESG obligations,
is increasing customer demand for
our products and solutions.

Orica LimitedAnnual Report 2023Introduction and OverviewOur BusinessOur PerformanceGovernanceDirectors’ ReportFinancial ReportOther InformationFINANCIAL PERFORMANCE

Business summary

A summary of the performance of the segments for the 2023 and 2022 financial years is presented below:

Year ended 30 September
A$M

Australia Pacific and Asia (APA)

North America

Latin America

Europe, Middle East and Africa
(EMEA)*

Digital Solutions

Global Support

External
sales
revenue

3,168.8

1,744.6

1,733.1

1,087.1

211.7

–

2023

EBITDA1

633.6

224.2

104.5

83.8

96.9

(52.4)

Continuing Operations

7,945.3

1,090.6

Minova (Discontinued Operations)

EBIT2

458.0

149.7

54.2

57.6

54.3

(75.7)

698.1

Total

7,945.3

1,090.6

698.1

* FY2022 figures for EMEA included Russia’s contribution.

Australia Pacific and Asia

Year ended 30 September

External sales revenue (A$M)

EBITDA1 (A$M)

EBIT2 (A$M)

External
sales
revenue

2,706.5

1,567.4

1,650.3

1,025.6

146.6

–

7,096.4

231.1

7,327.5

2023

3,168.8

633.6

458.0

2022
(restated4)

EBITDA1

551.0

193.8

99.7

77.5

45.2

(17.6)

949.6

14.7

964.3

EBIT2

369.6

135.1

53.6

46.5

26.7

(67.7)

563.8

14.7

578.5

2022
(restated4)

Change

2,706.5

551.0

369.6

17%

15%

24%

Total AN and Emulsion Volumes (‘000 tonnes)

1,840.6

1,766.9

Market conditions

Segment performance

Commodity prices and mining activity across
the region remained robust. Demand and
supply balance for AN continued to be tight.
Security and flexibility of supply remained
a key customer need.

Technology and premium product adoption
increased as expected as miners sought to
gain productivity and meet sustainability
commitments.

High gold and copper prices supported
increased demand. However, mining activity
was impacted by wet weather on the
Australian east coast in the first half while
recovering in the second half. Coal activity
was strong across the region, driven by
China’s energy consumption.

Tight labour market and high inflation
in Australia and Asia put cost pressure
on mining activity and supply chains.

EBIT increased by 24 per cent on the pcp
driven by contract improvements and
increase in volume due to high demand.

In the Australia and Pacific region, Orica
continued to strengthen its market position
across coal, metal and Q&C segments with
high retention rates and new contract wins.

Growth in Asia remained strong. Commercial
discipline resulted in increased earnings
particularly in Indonesia.

Technology penetration continued to
increase. Successful trials of 4D™ across
multiple sites were converted to commercial
contracts in Australia and Indonesia.
WebGen™ experienced significant
growth in Asia.

In manufacturing, turnarounds were
completed safely and on budget at Yarwun,
Kooragang Island, Bontang and Burrup.
Tertiary catalyst abatement was successfully
installed at KI’s three nitric acid plants,
and new improved secondary catalyst was
introduced at Bontang and Yarwun.

There was a controlled shutdown at the
Burrup plant in the first half following an
operational incident at an ancillary facility.
A temporary solution was put in place,
allowing Burrup to resume production.
One of Orica’s strongest competitive
advantages is its strong and flexible global
supply network; so there has been no
impact on customer supply.

Orica LimitedAnnual Report 2023Introduction and Overview

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Directors’ Report

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Other Information

North America

Year ended 30 September

External sales revenue (A$M)

EBITDA1 (A$M)

EBIT2 (A$M)

Total AN and Emulsion Volumes (‘000 tonnes)

Market conditions

While market fundamentals for most
commodities in the region remained robust,
activity in the United States and Canada was
impacted by extreme cold weather, forest
fires and a hurricane impacting Eastern
Canada in late December. Mining activity
in Mexico was impacted by prolonged
industrial action late in the financial year.

Rising inflation and interest rates impacted
customers’ operational costs and limited
project investment in parts of the
United States.

US domestic gas pricing normalised in
the second half, resulting in demand
from thermal coal customers returning
to normalised levels.

Q&C activity remained robust in the United
States, supported by significant government
infrastructure investment.

The extreme cold weather in parts of the
United States and Canada also constrained
logistics networks and impacted rail
availability. Ongoing challenges in the
labour market also limited some project
investment and further industry growth.

Segment performance

North America delivered a resilient earnings
performance despite external challenges
caused by extreme weather in the United
States and Canada, and prolonged industrial
action impacting supply in Mexico.

EBIT increased by 11 per cent year on the
pcp. Improved quality of earnings was
driven by ongoing strong EBS conversion,
technology earnings growth, commercial
discipline and cost management initiatives
together with favourable contribution from
foreign exchange rates. This was partly
offset by increased freight costs due to

Latin America

Year ended 30 September

External sales revenue (A$M)

EBITDA1 (A$M)

EBIT2 (A$M)

Total AN and Emulsion Volumes (‘000 tonnes)

Market conditions

Mining and exploration activity in the region
was strong across the region, particularly
in Southern Peru. Local community issues
and individual union disputes were less
severe than in previous years, although
there were some logistics interruptions
in Chile and Peru.

AN supply chain interruption, due to the
ongoing Russia-Ukraine conflict, continued
in FY2023. Continued uncertainty over the
availability and price of AN and the current
restrictions on Panama Canal capacity added
an extra level of complexity.

Demand continued to grow for technology
and premium products in Orica’s established
markets, with more miners looking for
solutions to enhance productivity and
maintain their licence to operate.

Segment performance

Underlying EBIT performance was driven
by commercial discipline and technology
penetration.

Volume was lower due to mine closures and
mine operational issues.

Security of supply remained Orica’s
competitive advantage in the region.

2023

1,744.6

224.2

149.7

1,130.8

2022
(restated4)

Change

1,567.4

193.8

135.1

1,105.7

11%

16%

11%

extreme weather and prolonged industrial
action in Mexico. Depreciation increased
versus the pcp following the Carseland plant
turnarounds in 2022.

The region progressed with the strategic
transitioning of its commodity base, with
strong revenue growth in the metals and
Q&C segments in FY2023.

Strong technology growth was supported by
conversion to WebGenTM 200, accelerated
EBS conversion and increased demand for
nitrate-reducing products Fortis™ Protect,
Centra™ Protect and Centra™ Gold HV.

The Carseland AN manufacturing plant
continues to perform well following the
turnaround completed in 2022. Tertiary
catalyst abatement technology continues
to reduce emissions in line with expectations.

2023

1,733.1

104.5

54.2

924.2

2022
(restated4)

Change

1,650.3

99.7

53.6

973.2

(5%)

Orica was able to leverage its global make-
and-buy network to ensure supply continuity
to customers albeit at higher costs.

Technology adoption and demand for
premium products continued to grow within
the region, including increased commercial
adoption of WebGen™ 200 in FY2023.

Global manufacturing optimisation activity
continues in the region. The Lurin EBS
manufacturing capacity and assembly
expansion is on track to be the major
supplier for Orica’s mining customers
in the Americas.

Orica LimitedAnnual Report 2023FINANCIAL PERFORMANCE

Europe, Middle East and Africa

Year ended 30 September

External sales revenue (A$M)

EBITDA1 (A$M)

EBIT2 (A$M)

Total AN and Emulsion Volumes (‘000 tonnes)

Market conditions

Segment performance

Mining activity in Europe and Central Asia
remained stable with a continued focus on
ESG obligations and commitments. In the
Middle East, growth opportunities continued
with Saudi Arabia investing heavily in
infrastructure development projects and
strongly incentivising mining investments in
gold and copper. Robust commodity prices
drove strong mining activity for gold, copper
and other future-facing commodities
across Africa.

The weak economic outlook and high
inflation in Northern Europe continued
to impact Q&C activity. Rising costs
caused project delays and a reduction in
construction activity in the Nordic region.

EBIT improved by 24 per cent compared
to the pcp despite the loss of volume and
earnings from Russia. Excluding Russia from
FY2022, EBIT was up 124 per cent on the
pcp. The improvement was driven by strong
growth and margin improvements in Africa,
Southern Europe, Middle East and Central
Asia, together with favourable foreign
exchange movements.

Initiating System volumes and AN volumes
were down versus the pcp due to Orica’s exit
from Russia operations. Excluding Russia,
volumes were up 14 per cent on the pcp.

Revenue from gold, copper and other FFC
customers increased as Orica’s exposure
to Africa grew.

2023

1,087.1

83.8

57.6

336.5

2022
(restated4)

Change

1,025.6

77.5

46.5

414.9

24%

(19%)

Q&C activity was impacted by project delays
due to macroeconomic conditions in the
Nordic region.

Technology adoption continued to progress.
Earnings from new technology increased
versus the pcp, driven by sales of Cyclo™
and WebGen™ 200. Orica launched the
Exel™ Neo, the world’s first lead-free
detonator range, further helping customers
with their ESG commitments.

Digital Solutions

In line with Orica’s strategy to grow the Digital Solutions vertical, a new reporting segment was created at the start of the 2023 financial year,
comprising three categories; Orebody Intelligence (Axis Mining Technology, HIG and RIG), Blast Design and Execution solutions (BDE), and
GroundProbe (previously reported within the Monitor segment).

Year ended 30 September

External sales revenue (A$M)

EBITDA1 (A$M)

EBIT2 (A$M)

2023

211.7

96.9

54.3

2022
(restated4)

146.6

45.2

26.7

Change

44%

114%

103%

Market conditions

Segment performance

Demand for software, sensors and data
science continues to increase as orebodies
are increasingly becoming harder to find
and extract against a backdrop of high
commodity prices, and as ESG obligations
and commitments increase.

Strong demand also continued for both
discrete and integrated end-to-end
workflows as customers seek operational
efficiency across the mining value chain.

Customers are also seeking ways to unlock
the value of digitisation and automated
workflows.

The strong EBIT performance compared to
the pcp was due to revenue growth across
all three sub-verticals, margin improvements,
and the contribution of Axis.

Substantial growth from strong demand was
evident across all regions and commodities.

Customer retention was strong with
contribution to segment revenue from
recurring contracts such as product leasing,
software as a service, monitoring services,
and care plans supporting the resilience of
earnings. The annual revenue from recurring
contracts remained stable, within the

targeted range of 60 to 70 per cent
of segment revenue.

Orica completed the acquisition of Axis
Mining Technology in October 2022. The
integration has progressed to plan with
Orica’s ownership opening new international
markets for the business. Axis expanded to
new markets in Canada, Africa, and the USA
in the second half.

Digital Solutions continued to innovate
and build integrated workflows. Fifteen
new features were released this financial
year, with an increasing focus on Artificial
Intelligence applications across the portfolio.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Global Support

Year ended 30 September

EBIT2 (A$M)

2023

2022
(restated4)

Change

(75.7)

(67.7)

12%

Global Support costs increased versus the pcp primarily due to inflation and increased non-billable employment costs. The provision against
a specific doubtful debtor raised in the first half of FY2023 was reversed in the second half.

Net financing costs

Net financing costs of $143.7 million was $43.4 million higher than the pcp. Net interest expense excluding lease interests was $126.6 million,
$23.7 million higher than the pcp, primarily as a result of higher interest rates. Unwinding of discount on provisions moved by $16.0 million
compared to the pcp, mainly due to an increase in the discount rate applied to remeasure long-term provisions in the pcp.

Year ended 30 September

Net interest expense excluding lease interest

Lease interest

Unwinding of discount on provisions

Net financing costs

Tax expense

2023

(126.6)

(15.5)

(1.6)

(143.7)

2022
A$M

(102.9)

(11.8)

14.4

(100.3)

Variance
A$M

(23.7)

(3.7)

(16.0)

(43.4)

The effective tax rate before individually significant items of 30.0 per cent is lower than pcp of 32.2 per cent due to increased profits
in jurisdictions where the statutory tax rate is lower than 30.0 per cent.

Individually significant items

Year ended 30 September 2023

Loss on sale of Türkiye businesses

Loss on exit of Venezuela business

Axis Group acquisition earnout

Individually significant items

Non-controlling interests in individually significant items

Individually significant items attributable to shareholders of Orica

Gross
A$M

(73.5)

(71.1)

(26.6)

(171.2)

80.4

(90.8)

Tax
A$M

0.8

33.6

–

34.4

(16.9)

17.5

Net
A$M

(72.7)

(37.5)

(26.6)

(136.8)

63.5

(73.3)

Sale of Türkiye businesses

In November 2022, Orica completed the sale of the Türkiye businesses for proceeds of US$12.75 million ($19.0 million). Upon completion,
as required by Australian Accounting Standards, the associated debit foreign currency translation reserve (FCTR) balance of $92.5 million
(of which $45.1 million is attributable to non-controlling interests) was recognised in the income statement. The net impact attributable
to shareholders of Orica, of $27.6 million after tax, has been recognised as an individually significant item.

Exit of Venezuela operations

On 29 September 2023, Orica entered an agreement to exit Venezuela. As required by Australian Accounting Standards, the foreign currency
translation reserve was released to the income statement. This resulted in a gross loss of $37.5 million after tax ($33.6 million was booked as
credit to tax expense), of which $18.4 million is attributable to non-controlling interests. The net impact attributable to shareholders of Orica,
of $19.1 million after tax, has been recognised as an individually significant item.

Axis Group acquisition earnout

In October 2022, Orica finalised its acquisition of Axis Mining Technology. The purchase price comprised $255.8 million paid on completion
plus potential earnout payments of up to $90.0 million based on the achievement of cumulative EBITDA generated from 1 October 2022 to
31 December 2024 and contingent on certain key management remaining employed by Orica during the earnout period. The earnout is payable in
early 2025. $26.6 million has been recognised as an individually significant item for FY2023 in relation to the earnout.

Orica LimitedAnnual Report 2023FINANCIAL PERFORMANCE

Cash flow

Year ended 30 September

Net operating cash flows

Net investing cash flows

Net operating and investing cash flows

Dividends – Orica Limited

Dividends – non-controlling interest shareholders

Other net financing cash flows5

Net cash flows from financing activities

Net cash inflow/(outflow)6

Net operating cash flows

2023
A$M

898.7

(664.7)

234.0

(140.9)

(7.2)

(202.8)

(350.9)

(116.9)

2022
A$M

362.3

(229.2)

133.1

(90.6)

(7.0)

613.1

515.5

648.6

Variance
A$M

536.4

(435.5)

100.9

(50.3)

(0.2)

(815.9)

(866.4)

(765.5)

Net cash generated from operating activities of $898.7 million reflects higher earnings as well as cash inflows from lower working capital
balances at year end, partly offset by higher income taxes paid associated with the higher earnings, and the impacts of higher interest rates
on financing costs.

Net investing cash flows

Net investing cash outflows were higher than the pcp predominantly due to the consideration paid for the acquisition of Axis, and proceeds
received from the sale of the Minova business in the prior period. Increased capital expenditure in FY2023 of $439 million (pcp of $349 million)
reflects the successful delivery of planned turnarounds, further investment in customer-facing assets at both existing and new customers’ sites,
the continued optimisation of the discrete manufacturing network, and strategic growth in the Digital Solutions segment. A deposit was received
during the year in respect of the planned sale of stage one of the Deer Park non-operational industrial land. The finalisation of the sale is subject
to completion requirements.

Net financing cash flows

Other net financing cashflows include $116.0 million of net repayment on debt facilities and $73.3 million of lease payments. The prior year cash
inflows include net proceeds of $681.7 million from an equity raise.

Balance sheet

Orica’s capital management framework is based on three key objectives:

• maintaining an investment grade credit rating

• preserving the flexibility to facilitate future investment alternatives and to respond to changes in the external operating environment

• maximising returns to shareholders.

As part of ongoing management of Orica’s debt structure and debt maturity profile, during the year $656.0 million of US Private Placement debt
was repaid, and $526.0 million of longer dated debt was issued into the US Private Placement bond market. The average tenor of drawn debt at
30 September 2023 was 5.9 years (September 2022: 4.3 years).

S&P Global Ratings reaffirmed Orica’s investment grade credit rating of BBB stable during the year.

The strengthened balance sheet continues to provide resilience in a volatile external environment, supports progress against Orica’s strategic
priorities and is delivering increased distributions to shareholders.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Movement in net assets (A$M)

3,729

(41)

(171)

542

4,052

(68)

Net assets
30 Sep 2022

Trade
working
capital

Non trade
working capital

Net fixed,
intangible &
right to use assets

Other net assets

Net debt
(inc. leases)

Net assets
30 Sep 2023

Trade working capital7 reduced by $41 million on the pcp and was $201 million lower than from first half of 2023. Lower ammonia prices
resulted in both reduced input costs to inventory and lower debtors towards the end of the year, partly offset by impacts of foreign exchange
rates on balances and the inclusion of trade working capital relating to Axis.

Non trade working capital8 net liability increased by $171 million. The main drivers in the movement include the refundable deposit received
in relation to the planned sale of stage one of the Deer Park non-operational industrial land ($50 million), deferred consideration in relation to
the Axis Mining Technology earnout of $27 million, increase in employee-related accruals of $30 million, and timing of non-trade payables.

Net fixed, intangible and right of use assets increased by $542 million this period. The increase was due to asset additions of $574 million,
assets recognised as a result of the Axis Mining Technology acquisition of $279 million and foreign exchange translation of $62 million, which
was partly offset by depreciation and amortisation expense of $393 million.

Other net assets increased by $61 million driven by the purchase and revaluation of an equity interest in Alpha HPA of $35 million and an
increase in net tax assets of $20 million driven by business growth.

Net debt (incl. leases) liability was $68 million higher than the pcp due to cash outflows for the acquisition of Axis Mining Technology of
$256 million, capital expenditure of $439 million, dividends paid of $141 million and lease payments of $73 million partially offset by the net
cash flow generated from operating activities across the year of $899 million.

Debt management and liquidity

As at

30 September 2023

30 September 2022

Variance

Interest bearing liabilities – excluding lease liabilities

Less: Cash and cash equivalents

Net debt9

Lease liabilities

Net debt – including lease liabilities

Gearing % – excluding Lease liabilities10

2,075.4

(1,152.1)

923.3

296.8

1,220.1

18.6%

2,167.5

(1,255.3)

912.2

239.5

1,151.7

19.7%

(92.1)

(103.2)

11.1

57.3

68.4

(1.1%)

Interest-bearing liabilities of $2,075 million comprise $2,050 million of US Private Placement bonds and $25 million of committed and other
bank facilities.

Cash of $1,152 million provides for a strong liquidity position, complemented by undrawn committed bank facilities of $1,467 million.

Gearing excluding lease liabilities at 18.6 per cent is below the Group’s target range of 30 to 40 per cent and is below the 57.5 per cent
covenant default measure. The interest cover ratio at 5.4x is well above the minimum 2x covenant requirement.

Orica LimitedAnnual Report 2023FINANCIAL PERFORMANCE

The chart below illustrates the movement in net debt from 30 September 2022.

Movement in net debt (A$M)

912

(899)

235

913

923

665

Net operating
cashflows

Net investing
cashflows

Net financing
cashflows

Sub-total

Foreign
exchange
translation

Net debt
30 Sep 2023
(exc. leases)

Net debt
30 Sep 2022
(exc. leases)

Outlook

FY2024

• 2024 financial year EBIT from continuing operations is expected to increase on the pcp attributable to:

> Strong demand for our products and services from continued anticipated growth in global commodities

> Increased adoption of blasting and digital technology offerings

> Further benefits from commercial discipline

> Offset partly by the major, six-yearly ammonia plant turnaround and prill tower scrubber installation at Kooragang Island

> Inflationary pressures, higher energy costs and increasing geopolitical risks will remain an ongoing challenge.

• Earnings will be more skewed to the second half compared with FY2023 due to the heavy planned turnaround schedule in the first half and

normal seasonality.

• Capital expenditure expected to be within the range of $410 million to $430 million, driven by the turnaround schedule as mentioned above;

depreciation and amortisation to be slightly higher than the pcp.

• Net finance costs expected to be in line with FY2023, subject to interest rate movements.

• Effective tax rate to be around 30 per cent.

• Continued disciplined approach to growth opportunities.

Looking forward

The outlook for the next three years is expected to deliver three-year average RONA in the range of 12.0 to 14.011 per cent (previous range:
10.5 to 13.012 per cent).

1. EBIT before individually significant items and depreciation and amortisation expense.

2. Equivalent to profit/(loss) before financing costs and income tax as disclosed in Note 1(b) within the financial statements.

3. Equivalent to profit after income tax expense before individually significant items attributable to shareholders of Orica Limited, as disclosed in Note 1(b) within

the financial statements.

4. Restated for change of segment reporting. Effective 1 October 2022, Orica made changes to its segment reporting to provide transparency of the growing

Digital Solutions vertical, in line with Orica’s refreshed strategy. Refer Note 1(a) within the financial statements.

5. Equivalent to net cash flows from financing activities (as disclosed in the Statement of Cash Flows within the financial statements) excluding dividends paid

to Orica ordinary shareholders and non-controlling interests.

6. Equivalent to net increase/(decrease) in cash held, as disclosed in the Statement of Cash Flows within the financial statements.

7. Comprises inventories, trade receivables and trade payables, as disclosed in the Balance Sheet within the financial statements.

8. Comprises other receivables, other payables, and provisions, as disclosed in the Balance Sheet within the financial statements.

9. Interest-bearing liabilities – excluding lease liabilities less cash and cash equivalents.

10. Net debt/(net debt + total equity), where net debt excludes lease liabilities.

11. FY2024 – FY2026 3-year average RONA.

12. FY2023 – FY2025 3-year average RONA.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Orica LimitedAnnual Report 2023CUSTOMERS, TECHNOLOGY
AND INNOVATION

We are focused on developing solutions to our customers’ current and emerging
challenges. We manufacture and supply products and services that enhance
safety, productivity, recovery and sustainability across the mining value chain.

47 Net Promotor Score (NPS)

up seven per cent from FY2022

4D™

New range

730+
6,000
1st shot

Customers engaged

WebGen™ blasts globally

AvatelTM fired

in May 2023 at Newcrest Cadia Valley
Operations, Australia

New range of 4D™ bulk systems for the
underground market unveiled in March 2023

AFR No.1

Innovative Large Company

Orica recognised as the ‘Most Innovative
Large Company’ taking out the number
one spot under the Agriculture, Mining and
Utilities category for Avatel™ in the 2023
Australian Financial Review (AFR) Most
Innovative Companies List.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Supporting our customers

We know our customers share our
commitment to safety and sustainability
and that meeting these commitments are
essential components of maintaining a social
licence to operate. Simultaneously, our
customers are facing increasing challenges
related to productivity and recovery as
commodity demands shift and the need
to access more remote and deeper ore
deposits increases.

By developing strategic and enduring
partnerships with our customers we foster
a deeper understanding of their needs and
ensure our suite of products and services
are fit for purpose. We work together with
our customers and the industry, because
we believe the best outcomes are achieved
through genuine teamwork, trusting
partnership and meaningful collaboration.
Our technology roadmap guides our research
and development process and maintains our
focus on finding innovative solutions to our
customers’ emerging challenges and needs.

Our Voice of Customer (VoC) program
independently and consistently captures
customer feedback across our operations,
with over 730 customers providing insights in
FY2023. The primary metric used to measure
customer loyalty and satisfaction is our
Net Promoter Score (NPS), which was 47
in FY2023, up seven per cent from FY2022.

We have a clearer sense of customer
sentiment that provides the focus for specific
action plans which improve the experience.
Customers value our focus on service, ease
of doing business and reliability of supply.
They also value our ability to establish
strong relationships to deliver value in new
advanced technologies that increase safety,
productivity, recovery and sustainability in
a complex operating environment.

In FY2023, we targeted a further increase in
our VoC response rate in regions, markets
and enterprise accounts with opportunities
identified for greater and faster supply
and proactive engagement and solutions,
which has had a positive impact on customer
sentiment. All regions provided input into
the effectiveness of our VoC program to
ensure it is fit for purpose for our teams and
customers. By understanding our customers’
challenges and sharing their goals and
aspirations, we deliver better outcomes for
them every day and use this insight to create
new technologies that will deliver increasing
value for them in the future.

Exel™ Neo – the
world’s first lead-free
non-electric detonator
range

At Orica, product stewardship
extends to designing products to
meet compliance and in ways that
reduce negative environmental,
human health and safety impacts.
This year we launched Exel™ Neo.
The Neo range of non-electric
detonators is produced using a
safer and lead-free formulation in
Gyttorp, Sweden, close to Orica’s
customer base in Europe. There are
no lead or lead compounds used in
the manufacturing process of the
pyrotechnic delay compositions and
lead is now eliminated from release
into the natural environment.

The newly launched Exel™ Neo
range is designed for use in civil
infrastructure, and surface and
underground mining operations.
The lead-free alternative can
burn with the same accuracy
as our current lead-based delay
compositions, as confirmed through
independent tests on timing
accuracy and scatter patterns.

Social responsibility
solutions provided
by WebGen™ in
surface mines

Technological advancements are
continually reshaping the mining
landscape, propelling the industry
toward more efficient, safer and
socially responsible practices.
Our WebGen™ products are not
only transforming mining methods
for underground and surface
blasting, but also addressing the
critical aspects of blasting close
to communities.

WebGen™ wireless initiation reduces
the complexity of mining when
blasting in sensitive areas or close
to communities through dust and
flyrock suppression, reduction of
lightning risk, and optimising the
output while reducing the number of
times customers have blasting events.

The wireless initiation makes covering
a blast much faster, easier, and
safer. Due to the absence of wires
and signal tubes on the surface,
machines can safely drive over loaded
blastholes to dump fill material
and place mats with reduced risk
of causing unplanned initiation or
misfire. WebGen™ allows a blast
to be fired at short notice, because
there is no need to connect wiring
across blastholes and run out firing
cables. By using WebGen™ it is easy
to change the blasting plan to suit
the wind conditions.

Read more in Lower-carbon
customer solutions

Learn more
orica.com/wireless

Learn more
orica.com/exelneo

Orica LimitedAnnual Report 2023
CUSTOMERS, TECHNOLOGY AND INNOVATION

Technology and innovation

We respond to the changing needs of our industry and customers, and focus on delivering technologies and solutions to remove people
from harm’s way, drive productivity, maximise recovery and reduce the overall footprint of mining and infrastructure operations.

Our technology roadmap

We aim to reduce, or
completely remove safety
risks for our customers
and reduce the need for
human intervention in
mining and infrastructure.

The ever-present push for
productivity and efficiency
improvement is being magnified
as customers face increases to
total cost of ownership.

With blasting at the core
of our business model,
our new technologies and
solutions are enabling
industry to think and
mine differently, and
operate more efficiently,
precisely and responsibly.

Globally, social and environmental performance
for mining (and mineral processing) is under
increasing scrutiny, driving the push to reduce
the impacts of operations, especially where
operations are encroaching communities.

R I T Y

SUSTAINABILIT

Y A

We are harnessing
our technology to
help enable improved
social and environment
outcomes.

TY A N D S

E
F
A
S

SOCIAL
LICENCE TO
OPERATE

TOTAL
COST OF
OWNERSHIP

FUTURE
ACCESS
TO ORE

TIVITY

M A X I M I S

H
A
N
G
E

Y
R
E
V
O

D R EC

The exhaustion of readily
accessible resources is driving
deeper operations and the necessity
to move significant amounts
of earth while keeping dilution
economically viable. As operations
go deeper, some sites will only
be mineable with zero-entry
operations.

We focus on precision
across the value chain
to help achieve better
recovery rates and reduce
energy usage for our
customers.

Orica has deep domain expertise in
blasting in mining and infrastructure,
spanning nearly 150 years across more
than 100 countries. Our blasting solutions
are automated, digitised and connected,
providing actionable data and insights for
our customers to improve downstream
benefits. We are continually improving our
core physical blasting products and services,
including advancements in our blast design,
wireless initiating systems and explosives
offerings in FY2023. Beyond blasting, we
are expanding our digital and automated
solutions to create integrated workflows,
allowing our customers to optimise their
entire operations.

We are investing in and building the next
generation of digital technologies and
solutions. Over the past five years, the
development of digital solutions has brought
further focus to developing capabilities
across the mining, infrastructure sectors

and other extractive industries. As a result,
we have accelerated the development of
powerful digital solutions from exploration
to processing, to meet our customers’ most
critical and emerging challenges. The rapidly
expanding Orica Digital Solutions segment
offers a flexible suite of digital solutions that
can be deployed separately or across the
value chain, depending on customers’ needs
and the existing digital ecosystem.

Partnering for progress

Driven by our purpose to sustainably
mobilise the earth’s resources, our extensive
network of scientists, engineers and
technology experts work together with
our customers, industry and world-leading
academia to solve shared challenges.
Our team of experts continues to grow,
with specialists at every stage of the mining
value chain. This includes geophysicists to

better understand the ore, engineers to
enhance our drill and blasting, geotechnical
specialists focused on stope stability,
metallurgists and mineral experts to solve
processing challenges, and developers and
data scientists to progress our approach to
digitisation and automation.

We invest in research and new technologies,
from the early stages of innovation
through to product development and
commercialisation, with our dedicated
technology centres in Australia,
United States, Canada, Sweden,
Germany, United Kingdom and Chile.

We also collaborate with many world-
leading research bodies and industry
partners, incorporating their specific
expertise to create practical solutions for
our customers. These include universities,
national laboratories, suppliers and
independent inventors.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

AI at Orica

Our Digital Solutions team is building sophisticated AI and machine learning solutions to enhance the service offering to our customers across
the value chain. The commercialisation of large language models and generative AI is providing the opportunity to improve productivity
for many people across Orica. We have been accepted into the early adopter program for Microsoft Co-Pilot, which embeds the power of
Generative AI into the Microsoft Office 365 suite to improve day-to-day productivity while protecting Orica’s data through inbuilt engineered
security controls.

In FY2023, we commenced activities to implement an enterprise-wide AI Community of Practice. This body will be responsible for governing
the introduction and operation of AI, defining procedures, standards and principles for the continued responsible use of such solutions and
ensuring compliance with Orica’s risk appetite, evolving regulatory frameworks and expectations to operate under a social licence.

FY2024 digital priorities

FY2024 blasting priorities

Develop training to support our people
to responsibly use technology and AI.

Accelerate the adoption of digital
solutions to deliver safer, more
productive and sustainable outputs
across the value chain.

Leverage customer opportunities from
ESG obligations and FFC exploration.

Integrate and optimise recently acquired
technologies associated with acquired
orebody intelligence businesses
including HIG, RIG Technologies
International, RHINO™ and Axis
Mining Technology.

Support the continued expansion of
WebGen™ 200 across all regions with
a particular focus on the surface market
following the successful release of the
WebGen™ 200 Surface variant in 2023.

Growth in commercial sales of 4D™
Surface Coal bulk systems across the
East Coast Australian market and entry
of 4D™ Surface and Underground bulk
delivery systems in the metalliferous
markets in LATAM, NA and Asia.

Successfully transition to full
commercial sales of Avatel™,
the world’s first fully mechanised
development charging system, at our
foundation customer in Australia.

Scale up the implementation of
Cyclo™, our recycled mine oil system
for bulk explosives manufacturing,
into LATAM and Asia.

Learn more
orica.com/
products---services

Our blasting solutions
are automated, digitised
and connected, providing
actionable data and
insights for our customers
to improve downstream
benefits.

Orica LimitedAnnual Report 2023

CUSTOMERS, TECHNOLOGY AND INNOVATION

FY2023 new technology introductions across the entire value chain.

Customer value
propositions

OREBODY
INTELLIGENCE

BLASTING

OREPro™ 3D Predict

Safety and security

AXIS Mining Technology

Insights

MEASURE

AND MONITOR

MINE SIMULATION

AND OPTIMISATION

Gantry

ModelNet

Front End Loader (FEL)

Lens Cleaner

Post Drill

Classiﬁcation V1

(RIG and HIG)

BlastVision®

Sustainability and
climate change

(RIG and HIG)

Surface and Underground

(RIG and HIG)

Optex®

Enhanced productivity

WIREBmr™ is a downhole geophysics tool that
measures the water in a subsurface environment
safely, efficiently, and accurately.

Maximised recovery

Orica Limited

Annual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Customer value

propositions

OREBODY

INTELLIGENCE

BLASTING

OREPro™ 3D Predict

Safety and security

AXIS Mining Technology

Insights

Sustainability and

climate change

(RIG and HIG)

Surface and Underground

(RIG and HIG)

Enhanced productivity

Maximised recovery

MEASURE
AND MONITOR

MINE SIMULATION
AND OPTIMISATION

Gantry

ModelNet

Front End Loader (FEL)

Lens Cleaner

BlastVision®

Post Drill
Classiﬁcation V1

Optex®

FRAGTrackTM gantry, real-time oversized material
detection.

Integrated Extraction Simulator (IES), a powerful
whole-of-mine optimisation simulator.

Orica Limited

Annual Report 2023

PEOPLE AND
CAPABILITIES

We are committed to fostering a culture of respect and belonging,
enabling our people to unlock their full potential and shape our shared
vision of the future. We continue to identify areas of improvement through
feedback from employee engagement and roll out training and leadership
programs to grow the skills and expertise of our people.

12.5k+ Global employees

45+
34.8%

Countries with Orica
employee presence

Women in senior leadership
target progress1 (against goal
of 35 per cent by end of FY2024)

Representation of women in our workforce (%)

17.7

18.2

17.6

18.7

20.2

FY2019

FY2020

FY2021

FY2022

FY2023

1. The percentage of positions within Band D (Senior Manager) level and above (i.e., CEO 2 (Band D+))

held by women.

Launched global
Diversity, Equity
and Inclusion
Strategy

Deployed global
recognition program
bravO

Established an
Ambassador
Program
supporting talent
attraction and retention

87%

Inclusion Index

An Inclusion Index is a metric used to assess
the level of inclusion felt by people within
an organisation. At Orica, we measure our
people’s sense of opportunity, belonging
and impartiality.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

In FY2023, we focused on strengthening
the capabilities of our diverse workforce,
promoting safety and wellbeing,
and embedding talent attraction
and retention initiatives.

In a post-COVID-19 era, trends across
employee experience increasingly show
that agility is essential to meet the pace
of technological change and workplace
evolution. Employees have different
expectations of their work environment,
and by adapting to these evolving
expectations, Orica will continue to be
an employer of choice. This supports
the realisation of our business strategy.
Employee attrition in a tight candidate
market further emphasises the importance
of Orica prioritising internal mobility and
mature talent management practices to
retain talent and encourage our people
to grow with Orica.

Listening and engaging
with our people

‘Our Say’ pulse survey

In FY2023, two global culture and
engagement pulse surveys, ‘Our Say’,
were deployed across the organisation.
Both recorded a healthy participation
rate of at least 50 per cent from selected
populations. The pulse survey themes –
career development, leadership, strategy,
inclusion and reward and recognition
– were directly aligned to global action areas
identified through a global employee survey
held in FY2022.

Results demonstrated:

• Orica’s leadership results were significantly
above external mining global benchmarks.
In particular, manager care for employee
wellbeing was seen as a strength
(86 per cent).2

• Employees have a strong understanding
of how their performance contributes to
Orica’s refreshed strategy with a score
of 81 per cent.

• Orica’s Inclusion Index was 87 per cent,
significantly outperforming global high-
performance, manufacturing and mining
norms and increased from historical results.

• The response to changes in reward and
recognition demonstrated the biggest
improvement from previous employee
listening surveys.

Although overall results from the survey
are encouraging, the feedback received
illustrates opportunities for continued
improvement in specific areas.

This demonstrates the importance of
continuing to make progress across:

• strengthening leadership capability

• maturing talent development

• continued commitment to diversity,

equity and inclusion

• continued adoption and engagement

of reward and recognition.

Sustained momentum across global and
local actions is critical to a positive employee
experience. Employee feedback will continue
to be sought in FY2024 through various
channels, with key actions identified and
used to measure progress as part of our
broader employee listening strategy.

bravO, Orica’s global
recognition platform

Ongoing feedback from our employees has
shaped our global program for recognising
our people’s work. In FY2023, we launched
our enterprise-wide recognition platform,
bravO. Along with localised employee
engagement programs and action plans,
bravO encourages peer and leader
recognition and appreciation.

In May 2023, bravO was deployed to all
Orica employees across more than 45
countries. It is available in 10 languages
to better enable employees to connect,
collaborate and recognise each other.
In line with our values, peers and leaders
are encouraged to share their appreciation
for each other and celebrate their
contributions across the moments that
matter. Since its launch, over 50 per cent
of our employees have engaged with bravO,
with more than 11,000 recognitions shared.
bravO will continue to be embedded across
Orica in FY2024 as a critical enabler of
a culture of recognition.

Shaping Orica’s Diversity,
Equity and Inclusion
Strategy

Our Diversity, Equity and Inclusion Strategy
is integral to strengthening Orica’s position
as an attractive employer for diverse
people in an increasingly competitive talent
market. The Diversity, Equity and Inclusion
Strategy has been shaped by our people for
our people and grounded by Our Charter
values, with a particular focus on Safety
and Respect. Workplace culture, inclusivity
and feeling valued are high priorities for our
diverse and global workforce.

2. Our Say results are the percentage of respondents who agreed with the statement.

Orica as the home of
the future shaper

Orica’s activated Employee Value
Proposition provides a point of
differentiation in the external
talent market. Our approach to
recruitment and retention focuses
on experience, employee advocacy
and enhanced employer branding.
We have established a new careers
website, our global Ambassador
Program and advocacy program,
and implemented a learning pathway
to build our capability to attract
and retain talent. By generating
momentum, we are driving local
activation throughout the employee
lifecycle, and ultimately strengthening
our position as an employer of
choice globally.

Learn more
orica.com/sustainability/people-
and-capabilities

Through a structured approach, our Diversity,
Equity and Inclusion Strategy seeks to foster
leader accountability and alignment across
Orica, with a focused three-year plan to:

1. Build an attractive talent brand:
Improve and embed the systems,
processes, tools and resources needed
to be an employer of choice.

2. Create an inclusive culture: Understand

the value and connection between
employee experience and belonging,
and put these learnings to practice.

3. Increase leadership accountability:

Build trust through improved governance
and demonstrated leadership behaviours.
Good progress has been made in
building foundational diversity, equity and
inclusion requirements. The importance
of workplace culture, inclusivity and
feeling valued is a high priority for our
diverse and global workforce.

Orica LimitedAnnual Report 2023PEOPLE AND CAPABILITIES

Key measures that reflect
our diverse workforce

In FY2023, we employed over 12,500 people
in more than 45 countries, bringing together
a workforce that harnesses the strengths
of our people’s diverse backgrounds,
experiences and skill sets. Our commitment
is grounded in recognising our diversity as
our strength and enabling our people to
shape their own futures and potential.

Our Diversity, Equity and Inclusion Policy
outlines our continued vision, commitment
and approach.

Looking ahead

Our ongoing commitments aim to progress
and mature our efforts in the diversity,
equity and inclusion space and continue
the regained momentum across our people
programs and initiatives. Progress will be
monitored through our continuous
listening strategies.

Full scorecard for FY2023 and
FY2024 targets available on
ESG Data Centre

Diversity, Equity and Inclusion Policy

FY2024 people and
capabilities priorities

Inclusion Index

In FY2023, we surveyed our people against
the Inclusion Index, which measures their
sense of opportunity, belonging and
impartiality. An Inclusion Index score of
87 points to the positive impact of the
global Diversity, Equity and Inclusion Strategy
as well as that of the flagship capability
and awareness-building programs such as
Inclusive Leadership. Ongoing local activation
of the Diversity, Equity and Inclusion Strategy
continues to drive change and foster a
strong culture of belonging.

Women in our workforce

The representation of women in our
workforce is 20.2 per cent, reflecting positive
progress year-on-year from 18.7 per cent
in FY2022. Improvements have also been
recorded in the percentage of women in
senior leadership roles which increased from
28.9 per cent in FY2022 to 34.8 per cent
in FY2023. Continuing to improve these
metrics remains an area of focus for Orica.

Female representation on our Board
remained at 33.3 per cent (three of our
nine Directors), exceeding our target
of ≥30 per cent.

Continue to roll out of our
Diversity, Equity and Inclusion
Strategy with local activation
plans. Inclusive behaviours training
expanded to frontline employees.

Embed leadership traits through
talent, performance and
development cycles.

Targeted capability-building and
talent pipelines for critical business
segments including digital,
sustainability and commercial.

Ongoing improved
standardisation, automation
and efficiency across the
employee lifecycle.

Our employee listening
strategy demonstrates
the importance of
commitment and
progress towards
identified focus areas.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Inclusive leadership
program delivered to
Orica’s senior leaders

Creating and maintaining an inclusive
culture and increasing leadership
accountability are key pillars of
our global Diversity, Equity and
Inclusion Strategy.

The Inclusive Leadership Program has
been purpose-built to enable positive
role modelling and inclusive practices
from our senior leaders. Participants
engage in three interactive
workshops around the importance
of diversity, equity and inclusion,
developing an inclusive culture and
how inclusive leadership contributes
to business success.

Throughout FY2023, our senior
leaders across all business units
have completed or commenced
the Inclusive Leadership Program.
We will continue to roll out the
program into FY2024.

Orica LimitedAnnual Report 2023CLIMATE AND THE
NATURAL ENVIRONMENT

From decarbonising our own operations to innovating sustainable customer
solutions, we are delivering on our own environmental goals and helping our
customers achieve theirs. In FY2023, we materially reduced our greenhouse
gas emissions footprint and improved our approach to addressing
environmental impacts.

22%
9%

20%

Reduction in net Scope 1 and
Scope 2 GHG emissions from
FY2019 baseline

Annual reduction in net Scope
1 and 2 GHG emissions
from FY2022

Material reduction in Scope 1
and 2 emissions intensity per
tonne of AN produced (down
20 per cent from FY2022)

Loss of Containment (LOC)

FY2020

FY2021

FY2022

FY2023

The number of incidents where a contained substance escapes from containment and
results in a Severity 12 or greater environmental impact on water or soil.

1. Applies to existing operations and covers more than 95 per cent of Scope 1 and Scope 2 GHG emissions.

Base year will be recalculated consistent with GHG Protocol emissions accounting standards if structural
changes occur such as acquisitions or divestments.

2. Severity 1 events are minor, reversible environmental effects. Short-term impacts only in the immediate

vicinity of the release. Minor clean-up required with the total cost of any clean-up is less than $100,000.
Severity 2 environmental events have localised but measurable environmental effect that is reversible after
clean-up; Severity 3 environmental events result in relatively wide-spread serious environmental damage,
with some impairment of ecosystem function that will recover after remediation.

Accelerated climate
change commitments

At least

45%

reduction in Scope 1
and Scope 2 emissions,
from 2019 levels1

Established strong targets by accelerat-
ing Orica’s climate change commitments,
including an increased target to reduce net
operational Scope 1 and 2 emissions by at
least 45 per cent by 2030, from 2019 levels
(uplift from 40 per cent); a new short-term
target to reduce net operational Scope 1 and
2 emissions by 30 per cent by 2026, from
2019 levels; and launched a new ambition
to reduce Scope 3 emissions by 25 per cent
by 2035, from 2022 levels

Tertiary catalyst
abatement
at Kooragang Island site

Reducing GHG emissions by deploying
tertiary catalyst abatement technology
in Australia for the first time: forecast
to mitigate 48 per cent of the Scope 1 and 2
GHG emissions on our Kooragang Island site

Electricity supply
agreements

Progressing to source renewable or
zero-emissions electricity supply with
agreements established in Sweden,
Peru and Australia

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Climate change

Orica supports international efforts to limit
global warming in line with the goals of the
Paris Agreement. We believe a coordinated
transition to a net zero emissions economy
is required and we are committed to doing
our part. Our purpose is to sustainably
mobilise the earth’s resources and we
help our customers responsibly extract the
materials that are critical to supporting the
lower-carbon transition. As a global leader in
mining services, we have a fundamental role
to play in addressing climate change.

Transparency with
shareholders

The Board recognises the importance of
accountability and transparency for our
shareholders, and as a result, Orica is
putting its FY2023 Climate Action Report
to a non-binding advisory vote at the 2023
Annual General Meeting. Orica’s Climate
Action Report articulates how we aim to
navigate and capture opportunities in the
transition to a lower-carbon economy.

FY2023 performance

Our net operational Scope 1 and 2 GHG
emissions for FY2023 were 1,704 ktCO2-e3.
This represents a nine per cent decrease from
FY2022 and a 22 per cent reduction from
our base year of FY2019.

Gross Scope 1 GHG emissions decreased by
14 per cent from FY2022, driven primarily by
abatement at our continuous manufacturing
facilities. This year, low-emissions technology
was installed and optimised at our facilities,
namely tertiary catalyst abatement at
Kooragang Island’s three NAPs, and more
effective secondary catalyst at one plant
each in Bontang, Indonesia and Yarwun,
Australia.

Abatement technologies contributed to
emissions intensity improvements and
lowered site-based Scope 1 and 2 emissions
intensity per tonne of AN produced by 20
per cent in FY2023 compared to FY2022.
These reductions in emissions intensity were
partially offset by increased AN production
volumes, which were up six per cent globally
from FY2022.

Gross Scope 2 GHG emissions remained
stable from FY2022, decreasing by 0.2
per cent, with 335 MWh (0.10 per cent)
of electricity generated from renewable
sources. Despite increased global operations
resulting in higher consumption, Scope 2
emissions arising from purchased electricity
were down two per cent. This was primarily
due to electricity grid factors decreasing

in key operational jurisdictions, including
Australia. With the establishment of
our company-wide renewable electricity
sourcing target, we intend to transition to
dual location- and market-based Scope 2
emissions reporting over the coming years.

Global Scope 3 emissions increased two
per cent in FY2023 compared to FY2022,
primarily due to increased global production
and associated raw material requirements
(including purchased ammonia and AN).
Gross Scope 1, 2 and 3 GHG emissions were
down one per cent compared to FY2022
as our reductions in operational Scope 1
and 2 emissions were offset by the increase
in indirect Scope 3 emissions arising from
purchased goods and use of our products.

Global nitric acid plant emissions
intensity (Scope 1 Nitrous Oxide
– tCO2-e/t of nitric acid produced)

1.09

0.99

0.83

0.82

0.59

FY2019

FY2020

FY2021

FY2022

FY2023

Progress towards achieving GHG emissions reduction targets

)
e
-
2

O
C
t
k
(

)
2
d
n
a

1
e
p
o
c
S

t
e
N

(

s
n
o
i
s
s
i

m
E
G
H
G

a
n
o
i
t
a
r
e
p
O

-3%

-13%

-14%

-22%

1,528

1,200

2,000

1,500

2,183

1,000

500

FY2019
(GWP-adjusted)

FY2020
(GWP-adjusted)

FY2021

FY2022

FY2023

FY2026
Target (30%
down from
FY2019)

FY2030
Target (45%
down from
FY2019)

Scope 1 Emissions

Scope 2 Emissions

Strengthened Target

Annual change in Scope 1 and Scope 2 GHG emissions (ktCO2-e)

)
2
d
n
a

1
e
p
o
c
S

t
e
N

(

s
n
o
i
s
s
i

m
e
G
H
G

a
n
o
i
t
a
r
e
p
O

2,000

1,950

1,900

1,850

1,800

1,750

1,700

1,650

1,600

1,550

1,500

1,875

(205)

(3)

(2)

1,704

FY2022

Production

Emissions
Intensity

Acquisitions
and Divestments

Carbon
Markets

Other

FY2023

3. Our net Scope 1 and Scope 2 GHG emissions position for FY2023 is equivalent to our gross Scope 1

and Scope 2 GHG emissions given no surrender of carbon credits occurred within the reporting period.

Orica LimitedAnnual Report 2023

CLIMATE AND THE NATURAL ENVIRONMENT

Delivering on and accelerating
our commitments

New ambition to decarbonise
Scope 3 emissions

Since announcing our 2030 climate
targets, we have taken steps to invest in
climate change initiatives in support of
our commitments. Capital allocation for
emissions reduction is delivering positive
shareholder returns, with $54 million
invested in tertiary abatement projects from
FY2021 to FY2023. Given the economic and
successful mitigation of process emissions
and the development of a strategy for
value chain decarbonisation, we are well
positioned to strengthen our suite of
climate commitments.

We have refreshed our operational net
Scope 1 and 2 emissions targets adding
an interim short-term target to reduce
emissions by 30 per cent by 2026 and
increasing our 2030 target to at least
45 per cent (from 40 per cent).

These strengthened targets complement
the delivery of our purpose and strategy.
Reaching our 2030 targets and 2050 net
zero emissions ambition requires us to take
several actions to reduce emissions, including
catalyst abatement, renewable electricity,
feedstock and fuel switching, and site
efficiencies. We have developed pathways
to achieve these objectives. Details on
these roadmaps are included in our FY2023
Climate Action Report.

Looking ahead, our most material remaining
Scope 1 emissions arise from Kooragang
Island, as a result of steam-methane
reforming of natural gas in the production
of ammonia. Planning and concept studies
for alternative chemical feedstocks have
commenced, including the co-development
of the Hunter Valley Hydrogen Hub with
Origin Energy. Read more in our Climate
Action Report.

To increase accountability internally, we
strengthened corporate governance by
introducing long-term links between
executive remuneration and climate change.
A new FY2024-26 long-term incentive (LTI)
metric will focus on portfolio resilience and
diversification, rewarding outcomes that
strengthen business resilience in alignment
with our strategic plan.

4. Coverage includes all categories of Scope 3

emissions deemed relevant for Orica under the
GHG Protocol Corporate Value Chain (Scope
3) Standard (excluding categories 8, 13 and
14). Base year emissions will be recalculated
consistent with GHG Protocol emissions
accounting standards if methodology or
structural changes occur such as acquisitions
or divestments.

partner and influence. These principles have
informed the development of our value
chain decarbonisation roadmap and our
ambition to reduce Scope 3 emissions by
25 per cent by 2035, from a 2022 baseline4.

Achieving our Scope 3 ambition is
dependent on supportive government policy
and regulatory frameworks, transparency
and collaboration across our value chain
and the pace of technology development,
commercialisation and adoption. Key
enablers in our Scope 3 roadmap include the
emergence of low-carbon feedstocks and
renewable fuels at commercial scale, key
suppliers achieving their emissions reduction
commitments, alternate sourcing strategies,
consideration of product design and internal
governance mechanisms that enable
supportive decision-making.

FY2023 Climate Action Report

We are committed to playing our part
to mitigate the impact of the emissions
from our value chain. We are focused on
understanding the sources of our Scope
3 emissions, accurately quantifying these
emissions and identifying pathways
for reduction.

During FY2023, we developed an evidence-
based roadmap for decarbonisation across
our value chain, focusing on upstream and
downstream sources. This includes our most
material emissions arising from purchased
goods and services and the use of bulk
explosive products in blasting activities.

While our Scope 3 emissions are broadly
outside of our direct control, a framework
for value chain decarbonisation can be
built around the core principles of control,

Global Scope 3 emissions

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

)
e
-
2

O
C
t
k
(

s
n
o
i
s
s
i

m
E
G
H
G
3
e
p
o
c
S

670

880

978

955

1,034

972

5,498

5,598

405
829

4,926

FY2020

FY2021

FY2022 (Restated)

FY2023

Purchased goods and
services (category 1)

Use of sold products
(category 11)

All other Scope 3
categories

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Our role in the transition
to a lower-carbon economy

Increasing exposure to future-
facing commodities

In addition to decarbonising our own
operations, Orica has a role in enabling
global decarbonisation. By developing
lower-carbon products and technologies that
improve mining efficiency for our customers
and mobilising the resources required to
drive the transition, we are positioning
Orica to thrive in a lower-carbon world.

Lower-carbon customer solutions

We aim to collaborate and enable our
customers to achieve their own sustainability
goals. Our efforts to decarbonise move us
towards producing lower-carbon products
and solutions, helping to facilitate the
reduction of our customers’ value chain
emissions profiles. Building on our established
suite of blast optimisation and digital products
and services that increase the efficiency of
resource extraction, we are now developing
lower-carbon end products.

In FY2023, we produced our first emulsifiers
using bio-based renewable energy feedstock
and are currently undertaking a life cycle
assessment to quantify carbon benefits.
This innovation will provide opportunity
to modify the feedstock of our existing
emulsifiers to customers in coming years.
As part of our Scope 3 work, a number
of low-carbon AN purchase agreements
are in early development. We have signed
Memorandum of Understanding and Letter
of Intent in both EMEA and LATAM to bring
products to those customers interested in
lower-carbon blasting.

Our purpose is to sustainably mobilise the
earth’s resources, and our role will be critical
as the net zero transition drives exponential
demand for the materials required for
clean energy technologies. We continue
to diversify our commodity exposure and
position our portfolio towards higher growth
commodities, including FFC. We have a
strong global presence in copper and are
serving future-facing mines, particularly nickel
and lithium in Australia.

In LATAM, the ongoing shift in the region’s
commodity exposure reflects the strong
recovery in copper customer demand. A
large proportion of our customers’ mining
pipelines in this region are focused on FFC.

More details can be found in our
FY2023 Climate Action Report

49%

Revenue from gold,
copper and FFC

14%

Revenue from thermal
coal, down from 19%
in FY2019*

* Based on external sales, excluding discontinued

operation Minova.

Kooragang Island
decarbonisation project
delivers first 250,000
tCO2-e of abatement

In an Australian first, tertiary
abatement catalyst technology was
successfully installed on all three NAPs
at our Kooragang Island facility in
FY2023. On an annualised basis,
this is expected to reduce the site’s
annual total emissions by around
48 per cent and Australia’s total
chemical industry process emissions
by 11 per cent. Tertiary catalyst
technology has mitigated 98 per cent
of nitrous oxide emissions from our
nitric acid production at Kooragang
Island, with site-wide Scope 1 and
2 emissions now 30 per cent below
2019 baseline levels.

Deployment of tertiary abatement
technology at our Yarwun
manufacturing facility in Queensland,
Australia, is planned for in FY2024,
which is expected to reduce
our GHG emissions by around
200 ktCO2-e per year.

This represents real abatement
and decarbonisation onsite. More
importantly, it enables us to produce
lower-carbon intensity AN products
and solutions, commercialising our
decarbonisation initiatives by helping
to reduce our customers’ Scope 3
emissions profiles.

Learn more
orica.com/Sustainability/
environment-and-climate-change

FY2024 climate change priorities

Deploy tertiary catalyst abatement at one
of our three NAPs at Yarwun, Australia.

Present a ‘Say on Climate’ resolution
at Orica’s 2023 Annual General
Meeting, giving shareholders the
opportunity to consider Orica’s FY2023
Climate Action Report.

Progress towards final investment
decision for Hunter Valley Hydrogen Hub.

Orica LimitedAnnual Report 2023

CLIMATE AND THE NATURAL ENVIRONMENT

Stewarding natural resources

Avoiding environmental harm

At Orica, our focus is on preventing and
managing Loss of Containment (LOC) as part
of our environmental stewardship approach.
Since FY2018, we have recorded no serious
environmental incidents. LOC events are
decreasing year-on-year and remain below
our target of 22 events equal to or greater
than severity 1.5

Our year-on-year improvement reflects
a greater internal focus on rapid response
and earlier intervention.

As part of our approach to environmental
stewardship, we assess and mitigate
key individual sites’ environmental risks
through our Material Environmental Issues
Review (MEIR) program. We apply a global
environmental standard across all our
regions, going beyond local standards in
some jurisdictions. Environmental impacts
are remediated where identified.

Environmental factors at our sites can
include bodies of water, groundwater,
soil, air quality, cultural heritage sites and
communities in which we operate. We assess
environmental pathways at each of our sites
to identify and mitigate the risk of spillage
and contamination of the surrounding
environment, local communities and cultural
heritage. Our people are empowered to
proactively identify and address key failure
points and mitigate environmental risks to
avoid spills and contamination.

Nature and biodiversity

We acknowledge that effective management
of biodiversity is emerging as a core tenet of
natural stewardship. There is an increased
emphasis on businesses to understand
their dependencies and impacts on nature
and biodiversity, and develop methods to
maintain and regenerate areas of high nature
value and prevent significant degradation.

Ecosystem health is considered across our
operational and commercial activities.
To protect biodiversity, we manage
environmental risks, water, waste and
climate, and we deploy innovative
remediation techniques that provide
biodiversity co-benefits.

Increasing stakeholder expectations require
a more targeted and sophisticated approach
to nature and biodiversity that leverages
emerging methods to manage and account
for impacts. We are working to determine
the most effective approach and gain a
more comprehensive understanding of our
nature-related risks and opportunities, with
consideration to the Kunming-Montreal
Global Biodiversity Framework6 and the
rapidly evolving landscape of frameworks,
including the Taskforce on Nature-related
Financial Disclosure (TNFD).

This year, we participated in a pilot study
and provided feedback on the learnings
and existing barriers to adopting and
implementing the TNFD Framework in the
Australian context. The pilot study was
sponsored by the Australian Government
Department of Climate Change, Energy,
the Environment and Water.

Nature Action 100

Nature Action 100, a global investor
engagement initiative focused
on nature and biodiversity, has
identified Orica as one of the first
100 companies to be included as
part of its investor engagement
process. We will engage proactively
and constructively with Nature Action
100 in due course and evolve our
disclosures over time.

Water

The management of freshwater resources
is an issue that directly impacts the
communities and ecosystems in which
we operate. Orica’s assessment of physical
climate risks identifies water stress as a key
risk hazard. With competition for water
resources increasing globally due to multiple
pressures, particularly climate change,
population growth and pollution, we are
increasing our focus on optimising our
water use.

Our sites use water from various sources
including potable, ground, recycled, surface,
recycled and wastewater. We are reducing
our dependency on potable water by

increasing the efficiency with which we use
water and maximising our use of recycled
water, wherever possible. We aim to limit
the impact on our host communities and
ecosystems and increase resilience to
water stress.

Gross water consumption fell three per
cent to 8.35 million kL. While recycled
water increased to 31.6 per cent of total
consumption, potable water consumption
decreased by five per cent’ to 2.56 million kL.

In FY2023, we used 1.57 kL of potable
water per tonne of AN manufactured
at six material sites.

Water use at
Kooragang Island

Measuring our water consumption
can help us understand our
dependencies and where we
can place appropriate controls to
guide efficient water use. At our
Kooragang Island site, several factors
influenced water consumption over
the reporting period including:

• An underground leak on the

potable water supply, which was
rectified in September 2022.

• The reliability of the supply of

recycled water has been poor at
times across the year, which has
required the use of potable water
as an alternate supply.

• We completed a project updating

cooling water supply at our
Kooragang Island site from
potable water to recycled water.

To manage the potential influence
of an El Niño climate pattern in
the coming summer, contingency
planning has been undertaken to
ensure we are well equipped to
operate in hotter, drier conditions.

5. Severity 1 events are minor, reversible environmental effects. Short-term impacts only in the immediate
vicinity of the release. Minor clean-up required with the total cost of any clean-up is less than $100,000.

6. The Kunming-Montreal Global Biodiversity Framework was adopted during the fifteenth meeting of

the Conference of Parties (COP 15) and outlines a pathway to reach the global vision of a world living
in harmony with nature by 2050.

Learn more
orica.com/Sustainability/
environment-and-climate-change

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

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Directors’ Report

Financial Report

Other Information

Potable water consumption and intensity

1.74

1.89

1.67

1.72

1.57

2.91

2.94

2.48

2.69

2.56

FY2019

FY2020

FY2021

FY2022

FY2023

Potable (million kL)

Potable intensity (kL/tonne AN)

Gross water consumption by source (million kL)

2.46

1.20

2.16

2.20

1.21

2.19

2.91

2.94

2.65

1.06

2.43

2.48

2.64

1.15

2.14

2.69

2.64

1.27

1.88

2.56

FY2019

FY2020

FY2021

FY2022

FY2023

Potable

Groundwater

Surface water

Recycled/wastewater

Circularity at Orica

We continued to support the scaling
of our partnership with Mineral
Carbonation International (MCi)
with construction commencing
of a mobile demonstration plant
at our site at Kooragang Island,
Australia. MCi is a carbon capture
and utilisation start-up which will
react waste carbon dioxide provided
by Orica with alkaline materials to
produce a range of products for
construction, manufacturing and
consumer markets.

We continue to pursue initiatives
and partnerships that help us address
the circular economy. We formally
launched our innovative Cyclo™
service, which reuses waste oil from
mine sites to make an emulsion
explosive, which displaces virgin
oil consumption to reduce our
customers’ waste and GHG.

In FY2023, we expanded our
strategic partnership with Alpha
HPA by investing in a five per cent
equity position. Alpha HPA offers
a suite of high-purity alumina
products, which are critical raw
materials for decarbonisation. High-
purity alumina manufactured by
Alpha HPA has a carbon footprint
potentially 70 per cent lower than
traditional production processes.
This partnership leverages chemical
process synergies between Orica and
Alpha HPA. Its proprietary technology
requires reagents to purify raw
materials – which Orica manufactures
at our Yarwun plant, Australia.
At the same time, Alpha HPA
produces ammonium nitrate
solution as a waste byproduct of
its manufacturing process which
is key to our Yarwun operations.

Learn more
orica.com/sustainability

Orica LimitedAnnual Report 2023CLIMATE AND THE NATURAL ENVIRONMENT

Waste

Gross waste disposal by destination and waste diverted from landfill (kt)

Solid waste generated in FY2023 was
down 9.1 per cent to 11.5 kt however the
proportion diverted from landfill also fell
12.9 per cent to 62 per cent. Orica’s waste
profile is variable year-on-year due to waste
generated through remediation work.

FY2024 stewarding natural
resources priorities

Continue to prevent losses of product
to soil and water (LOCs) against target
of 22 severity 1 events and 0 severity
3 or higher.

Expand Orica’s portfolio of water
stewardship initiatives across material
global sites.

71%

4.89

0.20

4.08

3.82

77%

4.81

0.31

4.82

2.90

70%

3.65

0.24

6.81

4.66

68%

4.17

0.11

3.41

3.67

62%

3.21

0.05

3.81

4.39

FY2019

FY2020

FY2021

FY2022

FY2023

Landfill (on or offsite) (kt)

Treated/destroyed (kt)

Reused (kt)

Recycled (kt)

Waste diverted from landfill

Environmental remediation

We work with technology and nature to
progress environmental remediation where
our operations have impacted natural
systems and resources. We aim to remediate
land to permanently reduce risks to human
health and the environment and to allow
divestment, reuse and ongoing operations.

Estimated costs for the remediation of
soil, groundwater and untreated waste
are recognised as provisions or contingent
liabilities. In FY2023, a total $280 million
of environmental and decommissioning
provisions was reported. Refer to Notes
to the Financial Statements, Section 6:
Provisions for more information.

We seek out opportunities to identify and
implement the best available options to
achieve our remediation goals, leveraging
knowledge and skills from around the
world. Our major remediation projects are
associated primarily with legacy issues at
our former chemical manufacturing sites
but also arise from ongoing manufacturing
activities. A core team of remediation experts
is responsible for progressing our complex,
ongoing contamination remediation projects,
working with and providing technical advice
to regional SHES7 teams where necessary.

Yarraville thermal remediation
Clean Up Plan

Gomia phytoremediation
continues

In FY2023, we successfully completed
Australia’s first use of in situ thermal
remediation technology to treat legacy
contamination at a site adjacent to our
Yarraville site in Victoria, Australia. The
organic contaminants were removed
through a system of soil and groundwater
heating and gas/vapour extraction. The last
stages of the site clean up will be completed
in FY2024 making the Yarraville site ready
for divestment.

Sixth shipment of HCB waste
completed

The sixth shipment of waste to specialist
treatment plants in Sweden and Finland was
completed this year, as part of our ongoing
program for the safe destruction of the
hexachlorobenzene (HCB) stockpile in New
South Wales. The program to eliminate this
long-term legacy safely and responsibly has
seen 11,000 tonnes of HCB shipped to date.
We envisage one final shipment of HCB left,
to complete in FY2024.

Since 2021, we have conducted a large-scale
phytoremediation project in Gomia, India,
using more than 50,000 seedlings to address
elevated concentrations of contaminants
including nitrates, lead and perchlorate
in surface water and groundwater.
Harvesting and planting occurs annually,
using indigenous reeds, grasses and lilies
to remediate the contaminants. In FY2023,
surface water and groundwater monitoring
demonstrated significant reductions of
all target contaminants. Recent research
has also demonstrated the successful
composting of harvested shoots, and the
efficacy of certain species in stabilising and
remediating highly impacted sediments.

Phytoremediation uses plants to consume
and absorb contaminants as they grow
and prevent contaminants from spreading
further to surrounding areas. Through this
process, contaminants are either degraded
into harmless substances or accumulated
and removed when the plants are harvested.
Phytoremediation can also be used to
immobilise contaminants in the soil in
the root zones, and to control or reduce
the flow of surface water and groundwater.

7. Safety, health, environment and security.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Orica LimitedAnnual Report 2023COMMUNITY AND
RELATIONSHIPS

Fostering strong and collaborative partnerships with our host communities,
suppliers and industry will create shared and enduring value. We engage
our host communities and key stakeholders to build trust and understanding,
and develop mutually beneficial relationships through open and constructive
engagement. We also invest in our communities to support education,
positive environmental action and community safety and wellbeing.

In FY2023 we financed 47 Orica Impact Fund (OIF) grants to contribute
to organisations and initiatives around the world.

OIF applications received
in FY2023, 64 per cent
(47 projects) funded

FY2023 Modern Slavery
Statement published

Total community investment
since FY2021 towards target
of $15 million by 2025

$4.1m

Contributed to communities
in FY2023

$10.2m

FY2023 community
investment by region

Annual community investment – $m

15%

17%

APA

LATAM

EMEA

53%

3.7

4.1

3.2

2.4

1.9

FY2019

FY2020

FY2021

FY2022

FY2023

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

The OIF grants range from $10,000 to
$100,000 annually, for up to three years.
The goal is to create significant, tangible
effects and facilitate a more profound
impact in the communities in which
we operate.

This year we launched round three of
OIF with applications received from across
our global operations, on behalf of local
community partners, more than doubling
since FY2021.

Investing in First Nations
communities

The Clontarf Foundation,
Puwampi Unti Kunarr, and
Stars, Australia

Orica is committed to our partnership
with the Clontarf Foundation as well as
supporting other First Nations organisations.

The Clontarf Foundation helps to improve
the education, discipline, life skills, self-
esteem and employment prospects of
young Aboriginal and Torres Strait Islander
men by setting up school engagement and
mentoring programs in school communities
around Australia. This year we held several
site and career planning discussions and
hosted the Kalgoorlie Clontarf Academy
at our head office.

This year, we were the major sponsor for the
Aboriginal Student Dance Group ‘Puwampi
Unti Kunarr’ who attend a local school in the
Hunter Valley, Australia. The dance group

is supported by local Elders and performs
at community events. The translation from
Wonnarura to English is “Guardian Spirit
of the Hunter Valley Dance Family”.

Orica has also donated to the Stars
Foundation, a program that supports
Indigenous girls and young women to
attend and remain engaged at school,
complete Year 12 and move into work
or further study.

A total of $80,000 was invested across
these initiatives in FY2023.

The Water and
Community Education
Project, Philippines

To support access to safe drinking
water, round two of the OIF awarded
$65,000 to a water and community
education project in the Philippines.
The Aeta people of Nabuclod live
in a remote area of the Philippines
and need to trek 16 kilometres to
access potable water and supplies.
The project will be used to build
a bridge that will help transport
water and other goods to and from
the community. Funding has also
been allocated to the purchase
of computers and printers and to
enhance internet connectivity.

Community

We are focused on building safe, strong,
and thriving communities in regions
which we operate. We aim to help our
communities grow and flourish by making
safety a top priority, responsibly managing
natural resources and investing in social
and economic development.

Our sustainability function sets and
promotes a consistent approach to
community engagement, community issues
management and community investment.
Our primary emphasis is on cultivating
enduring partnerships founded upon
the principles of trust and transparency.
We are committed to delivering impactful
and strategically directed investments,
following the guidance outlined by our
Community Impact and Investment
Framework. In FY2023, our community
investment totalled $4.1 million.

We are on track to achieve our five-year
community investment target of at least
$15 million by 2025, and have contributed
$10.2 million since FY2021. This includes
investments made through the Orica Impact
Fund (OIF), regional spend and matched
payroll giving.

Disaster response
and relief

When a crisis or a natural disaster hits,
our priorities are to ensure the safety of
our employees and help the community
recover from the devastation. The increase
in extreme weather events this year
presented impacts to our people and
their local communities.

Our local Orica teams step up to support
their communities. In Aljustrel, Portugal, the
Orica team donated pallets of water bottles
to the local Fire Department to support them
during the fire season. In Yarwun, Australia,
Orica donated large tarps left over from an
old project to the State Emergency Services.
We have also funded tree replanting
following disasters through the Orica
Impact Fund. Read more in our Arbor Day
Foundation case study online.

Orica Impact Fund (OIF)

The OIF was introduced in FY2021 within
the scope of our updated Community
Investment and Impact Framework. The
OIF complements our ongoing community
investment efforts in various regions and
prioritises support for local endeavours
aimed at promoting education and
environmental awareness and nurturing a
sense of togetherness within communities.

Orica LimitedAnnual Report 2023COMMUNITY AND RELATIONSHIPS

Inspiring young people
to pursue careers in STEM1

STEMPunks, Chile, Colombia
and Peru

Orica and GroundProbe have partnered
with STEMPunks to create equality, equity
and diversity in STEM (science, technology,
engineering and mathematics) education
while inspiring future innovators in
the communities in which we operate.
STEMPunks are the recipients of a three-year
grant totalling $300,000 which will help
them reach more than 10 schools in Chile,
Colombia and Peru and positively impact
over 5,000 young students in remote and
underserved areas. STEMPunks is focused
on school engagements and professional
development for teachers, as well as hosting
student classes and train the trainer sessions.

The LATAM STEM Education Program is
making significant strides in achieving its
objectives of promoting STEM education
and inspiring young minds across Chile,
Colombia and Peru.

FY2024 community and
relationships priorities

Strengthen our foundations in managing
modern slavery risk in our supply chain
and focus on training and building
capability through upskilling initiatives.

Continue to invest in communities
and align the OIF towards meeting
community and business needs.

Learn more
orica.com/
Sustainability/
community

Suppliers

Responsible sourcing

The strength of our global supply network
is a key differentiator that allows us to
be a partner of choice for our customers.
With geopolitical volatility and economic
uncertainty, security of supply is critical to
our customers’ operations. Strong supplier
relationships ensure we can continue to
deliver for our customers.

Suppliers are critical to our business.
We seek to work with suppliers that
share our commitment to excellence,
are aligned to our values, and are committed
to acting ethically and to improving their
environmental and social impact. We strive
to work collaboratively to meet sustainability
challenges together and implement
improvement plans where gaps or risks
are identified.

In FY2023, we procured products and
services from 13,777 suppliers in 39
countries around the world.

We work with our suppliers to mitigate
sustainability impacts and promote
sustainable practices across our value
chain, with guidance from our Responsible
Sourcing Statement. The Statement
enhances the principles outlined in Our Code
and details our expectations of suppliers
with respect to ethical business practices,
human and labour rights, and social
and environmental impacts. In FY2023,
we published the Statement online and
incorporated it as part of our onboarding
process with new suppliers.

Responsible Sourcing Statement

Responding to modern slavery
risks in our supply chain

We continue to identify, mitigate and
remedy modern slavery risks and impacts
in our supply chain. Our FY2023 Modern
Slavery Statement outlines the results of
our enterprise-wide modern slavery risk
assessment and actions taken to engage
with high-risk suppliers to understand
their controls and where they need
corrective actions to manage their
modern slavery approach.

FY2023 Modern Slavery Statement

1. Science, technology, engineering, maths.

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Partnering for progress

We collaborate with government, industry, research and educational institutions, and non-government organisations (NGOs) to develop and
deploy sustainable, commercially-driven solutions. Our work with external partners delivers a range of commercial, environmental and social
benefits. We seek out opportunities to collaborate with innovative organisations that share our goals and align with our values and strategic
business objectives – some examples of recent partnering arrangements are detailed below.

COMMUNITY
PARTNERSHIPS

RESEARCH AND
GOVERNMENT
PARTNERSHIPS

INDUSTRY
PARTNERSHIPS

In FY2023, we published an Industry Associations Review which outlines
our approach to responsible corporate climate advocacy and lobbying.

FY2023 Industry Associations
Review

Orica LimitedAnnual Report 2023
GOVERNANCE

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

BOARD OF DIRECTORS

Malcolm Broomhead AO
BE, MBA

Sanjeev Gandhi
BEng, MBA

Gene Tilbrook
BSc, MBA, FAICD

Malcolm Broomhead was appointed
Chairman of Orica Limited on 1 January 2016
and has been a Non-executive Director
since December 2015. He is Chairman
of the Nominations Committee. He is a
former Director of BHP Group and a former
Chairman of Asciano Limited. He is also a
Director of the Walter and Eliza Hall Institute
and Council Member of Opportunity
International Australia.

Sanjeev Gandhi was appointed Managing
Director and Chief Executive Officer in April
2021, after previously holding the role of
Group Executive and President, Australia
Pacific and Asia. He is a former Executive
Director of publicly listed German chemical
company BASF SE. During his 26-year career
with BASF, he held several senior marketing,
commercial and business leadership roles
including Head of Asia Pacific and Head of
Global Chemicals Segment (Intermediates
and Petrochemicals).

Gene Tilbrook has been a Non-executive
Director since August 2013. He is Chairman
of the Board Audit and Risk Committee and
member of the Nominations Committee.
He is also a Non-executive Director of
Woodside Petroleum, a former Director
of Aurizon Holdings, Fletcher Building and
GPT Group, and former Executive Director
of Wesfarmers Limited.

Karen Moses
BEc, DipEd, FAICD

Denise Gibson
BSc, MBA

John Beevers
BEng, MBus, GAICD

Karen Moses was appointed Non-executive
Director in July 2016. She is Chairman of
the People and Remuneration Committee,
and member of the Board Audit and Risk
Committee and the Nominations Committee.
She is a Director of Charter Hall Group,
Snowy Hydro Limited, and Music In The
Regions Limited, and a Fellow of the Senate
of Sydney University. She is a former Director
of Boral Limited, Sydney Dance Company,
SAS Trustee Corporation, Australia Pacific
LNG Pty Limited, Origin Energy Limited,
Contact Energy Limited, Energia Andina S.A.,
Australian Energy Market Operator Ltd,
VENCorp and Energy and Water
Ombudsman (Victoria) Limited and
Sydney Symphony Limited, and former
Chair of the NSW Artform Board for
Dance and Physical Theatre.

Denise Gibson was appointed Non-executive
Director in January 2018 and is Chairman of
the Innovation and Technology Committee
and member of the People and Remuneration
Committee and the Nominations Committee.
She is co-founder and Chairman of Ice
Mobility, Director of NASDAQ-listed VOXX
International Corporation, a director of
the Consumer Technology Association,
and the Consumer Technology Association
Foundation, both not-for-profit organisations.
She is the founder and former CEO
of Brightstar US and former director
of Aerial Technologies Inc.

John Beevers was appointed Non-executive
Director in February 2020. He is Chairman
of the Safety and Sustainability Committee,
and member of the Innovation and
Technology Committee and the Nominations
Committee. He is also a Non-executive
Director of Syrah Resources Limited and Lynas
Rare Earths Limited and former Director of
QUT Bluebox, the commercialisation arm of
the Queensland University of Technology.
He previously held the role of Managing
Director and Chief Executive Officer of
GroundProbe and executive roles within
the Orica Group, including Global Technology
Manager, Group General Manager of
Chemical Services and Chief Executive
Officer of Orica Mining Services.

Orica LimitedAnnual Report 2023BOARD OF DIRECTORS

Gordon Naylor
BEng (Mechanical), MBA, GradDip
(Computing Studies), CPA, GAICD, FTSE

Mark Garrett
BA (Economics), GradDip (Applied
Information Systems)

Dr Vanessa Guthrie
Hon DSc, PhD, BSc (Hons), FAICD

Gordon Naylor was appointed as a
Non-executive Director on 1 April 2022 and
is a member of the Board Audit and Risk
Committee, the Safety and Sustainability
Committee and the Nominations Committee.
He is the Non-executive Chair of Medical
Developments International, a former
President of Seqirus, a member of the CSL
Group and held numerous global executive
leadership roles within the CSL Group,
including Chief Financial Officer.

Mark Garrett was appointed Non-executive
Director in January 2023 and is a member of
the Innovation and Technology Committee
and the Nominations Committee. He is a
member of the Board of UMICORE NV/
SA and Interim Chief Executive Officer for
Archroma. He is a former Chief Executive
Officer at Borealis AG and Marquard & Bahls
AG, and former Chairman of the Supervisory
Board of OMV AG.

Vanessa Guthrie was appointed
Non-executive Director in February
2023. She is a member of the Safety
and Sustainability Committee, the People
and Remuneration Committee and the
Nominations Committee. She is a Non-
executive Director of Santos Limited, Lynas
Rare Earths Limited, NYSE-listed Tronox
Holdings PLC and Cricket Australia. She
is also a Board member of Infrastructure
Australia and Pro-Chancellor of Curtin
University. She is former Deputy Chair
and Lead Independent Director of Adbri
Limited, Managing Director and CEO of Toro
Energy Limited, Chair of Minerals Council
of Australia and Non-executive Director of
companies including Australian Broadcasting
Corporation and Vimy Resources Limited.
She is a former Member of Australia-India
Council.

GROUP COMPANY SECRETARIES

Kirsten Anderson Llewellyn
LLB, BA, LLM, FGIA

Erin O’Connor
LLB (Hons), BCom, FGIA

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

EXECUTIVE COMMITTEE

Sanjeev Gandhi
BEng (Chemical Engineering),
MBA

Managing Director and
Chief Executive Officer

Leah Barlow
BEng (Chemical Engineering),
BBus (Management and accounting)

James Bonnor
BCom (Economics,
Marketing)

President – SHES, Discrete Manufacturing
and Supply

President – Europe, Middle East
and Africa

Delphine Cassidy
BBus (Accounting),
MBA, FAICD

James Crough
BCom (Accounting), MBA,
FCPA, GAICD

Brian Gillespie
BSc (Hons), MBA,
FIET

Chief Communications Officer

President – North America

President – Latin America

Adam L. Hall
BCom, LLB (Hons),
MBA (HD)

Jennifer Haviland
BCom (Economics), Dip-Enterprise
Systems & Analysis, GAICD, CPA

Kim Kerr
BBus (Accounting), GAICD,
Chartered Accountant

President – Asia and Chemicals

Chief People and Corporate Services Officer

Chief Financial Officer

Angus Melbourne
BEng (Hons) Mechanical Engineering,
BSc Applied Mathematics

Germán Morales
MSc (Civil Engineering),
Executive MBA

Andrew Stewart
BEng (Hons) Mechanical
Engineering, MBA

Chief Technology Officer

President – Australia Pacific

Chief Development and Sustainability Officer

Full biography details can be found on our website.

Orica LimitedAnnual Report 2023GOVERNANCE

Orica is committed
to maintaining a high
standard of governance,
transparency and
accountability.

Our governance framework is fundamental
to the effectiveness of our Board. To
align our approach with best practice,
we periodically review and update our
corporate governance documents and
practices. Throughout FY2023, Orica’s
governance arrangements complied with
the ASX Corporate Governance Council’s
Corporate Governance Principles and
Recommendations (4th Edition)
(ASX Principles and Recommendations).

For further detail on Orica’s corporate
governance framework see our FY2023
Corporate Governance Statement.

Role of our Board

Our Board oversees the business and
affairs of the Group. It sets our strategic
direction, oversees financial and non-
financial performance and risk management,
and provides leadership and direction on
workforce culture and values.

Day-to-day responsibility for managing the
Group is delegated to our Managing Director
and CEO who operates within delegated
authority limits determined by our Board.

Learn more
orica.com/About-
Us/Governance

Shareholders

Accountable to shareholders

Access to
independent
assurance
and advice

Board of Directors
Non-executive Directors and CEO

Delegated Authority

Accountable to Board

CEO

Strategy, Performance,
Risk Management, Culture

Delegated authority
(Terms of Reference)

Accountable
to Board

Group
Delegation
of Authority

Board Committees

Executive Committee

Board Audit
and Risk

Nominations

People and
Remuneration

Safety and
Sustainability

Innovation and
Technology

Group Policies, Standards and Procedures

Company
Secretary

Operating
culture

Group Delegation
of Authority

Our people

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

Committees

Board Committees

Five standing Committees have been
established by our Board. Each Committee
operates under its own Terms of Reference
which sets out its roles and responsibilities.
Further details are available in the Board,
Executive and Committees section of
our website.

Board Audit
and Risk

Nominations

People and
Remuneration

Safety and
Sustainability

Innovation and
Technology

Composition and
succession planning

Our Board comprises of individuals with
appropriate skills, knowledge, experience
and diversity to develop and support
Orica’s strategy, enable it to discharge
its responsibilities and create long-term
stakeholder value.

To remain effective, succession planning
is critical. Responsibility for overseeing
Board composition and succession planning
sits with our Nominations Committee
who assess the skills, experience and

competencies of potential candidates in
relation to the Board’s current and future skill
and experience requirements, and diversity.

On 15 January 2023, Mark Garrett was
appointed as an Independent Non-executive
Director. Mr Garrett’s expertise in the
chemical and energy sectors, and his
proven ability to drive growth, productivity
and efficiencies across diverse global markets
will continue to support Orica’s strategy
for growth.

On 1 February 2023, Dr Vanessa Guthrie was
appointed as an Independent Non-executive

Director. Dr Guthrie’s broad and strategic
experience across the resources sector,
combined with her deep understanding
of the environment and management of
natural resources, community, indigenous
affairs and corporate development, will
greatly enhance the Board’s ability to meet
its long-term strategic and sustainable
growth objectives and environmental,
social and governance performance.

Mr Garrett and Dr Guthrie will stand
for election at the 2023 Annual
General Meeting.

Board skills and experience

A skills matrix is used to ensure the key skills and experience required to serve on our Board are represented. Each Director updates
the matrix by rating their skills, expertise and experience for each identified skill using two key categories, ‘awareness’ or ‘high
competence/practiced’. These individual ratings are then considered and approved by all Board members.

The collective skills held by our Board are:

Leadership

Mining

Global perspective

Board, CEO or Senior Executive
experience in major organisations,
enterprises or listed companies
in Australia or overseas.

Experience, knowledge and
expertise in the Australian or
the international resources sector
and/or related operations.

Experience in international markets with
exposure to a range of political, cultural,
regulatory and business environments.

Technology trends
and innovation

Experience, knowledge and expertise
in the development and commercial
application of new and emerging
technologies and cyber security.

Financial acumen

Mergers and acquisitions

Financial knowledge or related
financial management or accounting
qualifications and experience, including
understanding of financial statements.

Experience in merger and acquisition
transactions involving complex issues.

Governance and legal

Safety and sustainability

Climate change

Experience in workplace health and
safety, environmental management and
social responsibility, community, climate
change and sustainability.

Experience, knowledge and expertise in
understanding climate-related risks and
opportunities, including sector-specific
implications of climate change.

Experience and knowledge in governance
issues (including the legal, compliance,
environmental and regulatory
environment applicable to the Australian
or international resources sector).

Strategy

Experience in developing, implementing
and overseeing business strategy and
strategic planning processes in large
and complex organisations.

Orica LimitedAnnual Report 2023GOVERNANCE

Professional development

Board and Board Committee focus areas during FY2023

Our Non-executive Director Business
Understanding program delivers ongoing
learning for Directors to deepen their
understanding of our business and
operations to ensure they make fully
informed decisions on our strategic direction.
The program is delivered through
a combination of site visits, business
briefings, deep-dive education sessions
at Board and Committee level, and in
one-on-one discussions with management,
as appropriate.

In FY2023, Board members participated in
a number of deep dive education sessions,
including on the geo-political and regulatory
environment, Orica’s China business strategy
and evolving ESG and mandated global
sustainability reporting frameworks. Our
Board also visited the Kooragang Island
major manufacturing facility in Australia
and the manufacturing and research and
development facilities in Gyttorp, Sweden.

The Board and its Committees have an annual program covering key strategic, operational,
oversight and governance activities. The program guides the content and structure of Board
and Committee meetings to enhance effectiveness in achieving our purpose and supporting
strategic decision-making.

The topics below provide insight into our Board’s activities during FY2023, however are
not an exhaustive summary of the Board program.

Our Board

Considered macroeconomic, commodity markets, strategic risk and long-term scenarios
informing Orica’s strategic and financial planning.

Continued commitment to and oversight of Orica’s workplace health, safety and employee
wellbeing strategic plan. This included deep dives into safety across regional operations and
key employee health risks and their management.

Oversight of funding activities and approval of the issue of US$350m (equivalent) of bonds
in the US private placement market.

Continued oversight of cyber security risks and controls.

Oversight of Orica’s ESG strategy and delivery on public commitments on sustainability
priorities, including climate change.

Approved a ‘Say on Climate’ non-binding resolution to be presented at the 2023 Annual
General Meeting.

Diversity profile

Link to our value drivers

Safe and
responsible
operations

Financial
performance

Customers,
technology and
innovation

People and
capabilities

Climate and
the natural
environment

Community
and
relationships

33.3%

Women

33.3%

International experience

Average tenure of
Non-executive Directors

Under 3 years

3-6 years

6-9 years

Over 9 years

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

An overview of the key focus areas for the standing Committees during FY2023 is set out in the table below.

Board Audit and Risk Committee

Nominations Committee

Oversees the integrity of financial statements and disclosures,
the integrity of environmental, social and governance
(‘ESG’) periodic reporting and the Group risk and
assurance functions.

Oversees Board composition and Board and CEO
succession planning.

Key activities:

› Oversight of our financial performance and associated
reporting processes, including the review of half and
full-year financial results.

› Annual review of the effectiveness of our risk

management framework.

› Oversight of the status and closure actions for

key internal audit activities.

› Review of reports from management on ethics,

compliance and business conduct matters.

Key activities:

› Board renewal.

› Review of the methodology and outcomes of the annual Board
performance review and recommended improvement actions.

› Approval of the Non-executive Director business

understanding program.

People and Remuneration Committee

Safety and Sustainability Committee

Oversees people and culture strategy and
policy, as well as Director and Executive
remuneration frameworks.

Oversees safety, sustainability and climate change-related issues
that have strategic, business and reputational implications for
Orica, and public disclosures and position statements.

Key activities:

› Oversight of the preparation of Orica’s

› Oversight of safety and sustainability performance.

Remuneration Report.

› Review of material safety, health, environmental and security (SHES)

› Executive succession planning and talent strategy.

and sustainability risks.

› Diversity and inclusion strategy and related

› Oversight of the five-year SHES strategic plan and

public disclosures.

sustainability roadmap.

› Organisational culture and engagement.

› Review of material environmental remediation projects.

› Oversight of the short- and long-term incentive

› Endorse public sustainability and climate-related disclosures.

design and principles for target setting.

› Review of CEO performance.

Innovation and Technology Committee

Oversees Orica’s technology strategy and technology related risks.

Key activities:

› Oversight of the introduction and commercialisation of new technology and the research and development pipeline.

› Oversight of technology risk, including cyber security and enterprise-wide business systems.

› Review of the intellectual property strategy and portfolio.

Orica LimitedAnnual Report 2023DIRECTORS’ REPORT

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

DIRECTORS’ REPORT

The Directors of Orica Limited (‘the Company’ or ‘Orica’) present the Annual Report of the Company and its controlled entities
(collectively ‘the Group’) for the year ended 30 September 2023 and the Auditor’s Report thereon.

Directors

The Directors of the Company during the financial year and up to the date of this report are:

M W Broomhead, Chairman

S Gandhi, Managing Director and Chief Executive Officer (‘CEO’)

J R Beevers

D W Gibson

K A Moses

G Naylor

G T Tilbrook

M N Brenner (retired on 14th December 2022)

Boon SF (retired on 14th December 2022)

M Garrett (appointed on 15th January 2023)

V A Guthrie (appointed on 1st February 2023)

E O’Connor and K Anderson Llewellyn are each Company Secretary of Orica Limited.

Particulars of Directors’ and Company Secretary qualifications, experience and special responsibilities are detailed in the Annual Report.

Directors’ meetings

The number of Directors’ meetings (including meetings of committees of Directors) and number of meetings attended by each of the directors
of the Company during the financial year are listed below:

Director

Scheduled Board
Meetings1

Ad‑hoc Board
Meetings1, 2

Audit and Risk
Committee1

People and
Remuneration
Committee1

Nominations
Committee1

Safety and
Sustainability
Committee1

Innovation
and Technology
Committee1

Held Attended Held Attended Held Attended Held Attended Held Attended Held Attended Held Attended

M W Broomhead3

J R Beevers

M N Brenner4

S Gandhi5

M Garrett6

D W Gibson

V A Guthrie7

K A Moses8

G Naylor9

Boon SF10

G T Tilbrook11

–

1. Shows the number of meetings held and attended by each Director during the period the Director was a member of the Board or Committee.

2. Ad‑hoc board meetings were held on 14 March 2023 and 27 September 2023.

3. The Chairman of the Orica Board attends all Board Committee meetings as an ‘ex officio’ member of that Committee.

4. Ms M N Brenner retired as an Orica Director, Chair of the People & Remuneration Committee and Member of the Audit & Risk Committee and Nominations

Committee on 14 December 2022.

5. The Managing Director and CEO attends Committee meetings on an ‘as needs’ basis.

6. Mr M Garrett was appointed to the Orica Board and as a Member of the Innovation & Technology Committee on 15 January 2023.

7. Dr V A Guthrie was appointed to the Orica Board and as a Member of the People & Remuneration Committee and Safety & Sustainability Committee on

1 February 2023.

8. Ms K A Moses retired as a Member of the Safety & Sustainability Committee on 31 December 2022 and was appointed a Member of the Audit & Risk Committee

on 1 January 2023.

9. Mr G Naylor was appointed a Member of the Safety & Sustainability Committee on 1 January 2023.

10. Mr Boon SF retired as an Orica Director and Member of the Audit & Risk Committee, Nominations Committee and Innovation & Technology Committee on

14 December 2022.

11. Mr G T Tilbrook retired as a Member of the Safety & Sustainability Committee on 1 January 2023.

Orica LimitedAnnual Report 2023DIRECTORS’ REPORT (CONTINUED)

Directors’ interests in share capital

The relevant interest of each Director in the share capital of the Company is disclosed in the Remuneration Report.

Principal activities

The principal activities of the Group in the course of the financial year were the manufacture and distribution of commercial blasting systems
including technical services and solutions, mining and tunnelling support systems to the mining and infrastructure markets, and various chemical
products and services.

Likely developments

Likely developments in the operations of the Group and the expected results of those operations are covered generally in the review of operations
and financial performance of the Group in the Annual Report.

Review and results of operations

A review of the operations of the Group during the financial year and of the results of those operations is contained in the Annual Report.

Changes in the state of affairs

There were no significant changes in the state of affairs of the Group during the year ended 30 September 2023.

Dividends

Dividends paid or declared since the end of the previous financial year were:

Final dividend declared at the rate of 22.0 cents per share on ordinary shares, unfranked, paid 22 December 2022

Interim dividend declared at the rate of 18.0 cents per share on ordinary shares, unfranked, paid 3 July 2023

Total dividends paid

99.6

81.7

181.3

Since the end of the financial year, the Directors have declared a final dividend to be paid at the rate of 25.0 cents per share on ordinary shares.
This dividend will be unfranked.

Events subsequent to balance date

Dividends

On 8 November 2023, the Directors declared a final dividend of 25.0 cents per ordinary share payable on 18 December 2023. The financial effect
of this dividend is not included in the financial statements for the year ended 30 September 2023 and will be recognised in the FY2024 Annual
Report.

The Directors have not become aware of any other significant matter or circumstance that has arisen since 30 September 2023, 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.

Environmental regulations

Orica seeks to be compliant with applicable environmental laws and regulatory permissions relevant to its operations. Where instances of
non‑compliance occur, Orica’s procedures require that relevant governmental authorities are notified in accordance with statutory requirements
and internal investigations are conducted to determine the cause of the non‑compliance to ensure the risk of recurrence is minimised.

The Company has committed major investments, both in terms of capital and resources, to improve its environmental performance at key sites
in addition to its general maintenance program. The Company is working closely and co‑operatively with regulators and government agencies
in relation to these initiatives, as well as enhancing community engagement and consultation.

More specific details about Orica’s sustainability initiatives and performance, including safety, health and environment, can be found on the
Orica website – www.orica.com/sustainability.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

DIRECTORS’ REPORT (CONTINUED)

Indemnification of officers

The Company’s Constitution requires the Company to indemnify any person who is, or has been, an officer of the Company, including the
Directors, the Secretaries and other Executive officers, against liabilities incurred whilst acting in good faith as such officers to the extent
permitted by law.

In accordance with the Company’s Constitution, the Company has entered into a Deed of Access, Indemnity and Insurance with each of the
Company’s Directors and, in certain instances, specific indemnities have been provided. No Director or officer of the Company has received
benefits under an indemnity from the Company during or since the end of the year.

The Company has paid a premium in respect of a contract insuring officers of the Company and of its controlled entities, against a liability
for costs and expenses incurred by them in defending civil or criminal proceedings involving them as such officers, with some exceptions.
The insurance contract prohibits disclosure of the nature of the liability insured against and the amount of the premium paid.

Non‑audit services

During the year, KPMG, the Company’s auditor, performed certain other services in addition to its audit responsibilities.

The Board is satisfied that the provision of non‑audit services during the year by the auditor is compatible with, and did not compromise,
the auditor’s independence requirements of the Corporations Act 2001 for the following reasons:

• all non‑audit services were subject to the corporate governance procedures adopted by the Company and have been reviewed by the

Board Audit and Risk Committee to ensure they do not impact the integrity and objectivity of the auditor; and

• the non‑audit services provided do not undermine the general principles relating to auditor’s independence as set out in APES 110 Code

of Ethics for Professional Accountants (Including Independence Standards), as they did not involve reviewing or auditing the auditor’s own
work, acting in a management or decision‑making capacity for the Company, acting as an advocate for the Company or jointly sharing
risks and rewards.

A copy of the lead auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is contained on page 111
and forms part of this Directors’ Report.

Details of the amounts paid to the auditor of the Company, KPMG, and its related practices for audit and non‑audit services provided during
the year are disclosed in note 21 to the financial report.

Orica LimitedAnnual Report 2023REMUNERATION REPORT

The result of this is a final STI for the
Managing Director and Chief Executive
Officer (CEO) of 147.6 per cent of his target
opportunity (98.4 per cent of maximum).
Outcomes for the other Executive KMP
also reflected their individual and business
unit performance, including the delivery
of key priorities within their STI strategic
components. Further detail on STI outcomes,
including associated performance
commentary, is provided in Section 3.2
of this report.

The FY2020‑22 long‑term incentive (LTI)
award (with a performance period from
1 October 2019 to 30 September 2022)
did not vest following testing in
November 2022, as average RONA
performance was below the required
threshold. The FY2021‑23 LTI award
(performance period from 1 October 2020
to 30 September 2023) was similarly
impacted by a slow recovery from COVID‑19
and while the final vesting outcome will
be confirmed following the release of
Orica’s FY2023 full‑year results, no vesting
is anticipated.

Dear Shareholders,

On behalf of the Board, I am pleased to
present Orica’s FY2023 Remuneration
Report, for which we seek your support
at our Annual General Meeting.

During FY2023, our 12,500 plus employees
worked hard to deliver strong financial,
safety, sustainability and strategic outcomes
for the business, driven by our purpose
of sustainably mobilising the earth’s
resources. While the external environment
remained challenging, we saw improved
performance across all our key financial
and non‑financial metrics including
significant growth in underlying EBIT
and importantly, no fatalities or serious
life‑changing injuries across our
controlled operations.

Our people remain central to what we
do and aligned with our commitment to
building a culture where our people feel
engaged, respected and connected, this
year we are pleased to have launched our
new global Diversity, Equity and Inclusion
strategy, a key driver in fostering leadership
accountability and ensuring an inclusive
culture where everyone feels valued. Other
examples of the work being undertaken to
support the development and wellbeing
of our people are outlined on page 58 of
the Annual Report. With operations in over
45 countries including Executives located
in each of our key regions, we continue
to compete with other large global
organisations for critical skills. It is important
for us to reward our people appropriately
through a market competitive remuneration
framework that supports pay for performance.

FY2023 remuneration
outcomes

FY2023 short‑term incentive (STI) outcomes
reflect strong business performance,
including improved outcomes across all
scorecard metrics.

• For the second consecutive year, we have
achieved a reduction in our Serious Injury
Case Rate (SICR), with our Major Hazard
Management (MHM) program successfully
driving a global safety culture.

• The number of Loss of Containment (LOC)

events decreased in FY2023, with
increased awareness throughout the
organisation since the LOC metric was
introduced, and the development of
a strong culture of event review and
subsequent action.

• Solid progress has been made to

decarbonise Orica’s operations leading
to a substantial decrease in net Scope 1
and 2 emissions, ahead of our global
sustainability plan.

• Management delivered an increase
in underlying EBIT from continuing
operations of 24 per cent, and a 10 per
cent increase in Return On Net Assets
(RONA), on the prior year.

• Our Cash Generation Efficiency (CGE)
improved across the year with close
management of our trade working capital
balanced with capital expenditure on
sustainability and sustenance projects.

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

REMUNERATION REPORT (CONTINUED)

Fixed annual remuneration
changes in FY2023

In recognition of his strong performance
and leadership during a critical period for
the business, the CEO’s Fixed Annual
Remuneration (FAR) was increased from
$1.7m to $1.82m effective 1 April 2023.
This was the first FAR increase since his
appointment to the CEO role and ensures
his remuneration is positioned competitively
against our market peers. Following no
Executive FAR increases for FY2022,
other than for those individuals who had
a change in role or accountability, external
remuneration benchmarking was also
conducted for the other Executive roles in
late‑2022. Effective 1 January 2023, FAR for
the Chief Technology Officer and President
Safety, Health, Environment and Security
(SHES), Discrete Manufacturing and Supply,
was increased by 1.5 per cent and 6.7 per
cent respectively.

Outcomes of Executive
remuneration framework
review

As foreshadowed in the FY2022
Remuneration Report, the Board undertook
a full review of the Executive remuneration
framework in FY2023 to test its alignment
with Orica’s long term objectives under
the refreshed strategy and the delivery
of shareholder value, whilst also ensuring
we are rewarding our people competitively.

While the Board agreed that the existing
framework remains the most appropriate
approach for Orica as we continue to focus
on improved efficiency and growth, the
review identified opportunities to improve
our incentive plan arrangements to better
align with business needs. The resultant
key changes to the FY2024 Executive
remuneration framework are as follows:

• A new LTI Business Sustainability metric
with a 20 per cent weighting, which
recognises the need for Orica to undertake
a suite of critical actions in the coming
years that will enable us to deliver long
term, sustainable returns for our
shareholders. To allow for this new metric,
the weightings on the existing relative
Total Shareholder Return (TSR) and
RONA metrics have been reduced
to 40 per cent on each.

• Expanding the Global Scope 1 & 2

Absolute Emissions Reduction STI metric
to a broader Decarbonisation metric which
will include a more complete assessment
of both our absolute emissions reduction
and the delivery of key emissions
reduction initiatives.

• Inclusion of an Operational Priorities

component within the CEO’s STI scorecard
which will initially focus on the delivery of
key operational milestones and results that
are critical to Orica’s long term success,
providing a more balanced assessment
of overall performance. To allow for this
component, the RONA metric has been
removed, however it remains within the LTI.

• Removal of the post‑vesting holding lock

on STI deferred shares to better align with
our market peers, noting the one‑year
vesting period remains. This change will
first come into effect for the FY2024 STI
and no changes will be made in respect
of deferred shares granted in prior years,
or that will be granted under the FY2023
STI. Long term shareholder alignment will
continue to be driven by the LTI design
where the two‑year post‑vesting holding
lock will remain, as well as our Executive
minimum shareholding policy.

We appreciate the feedback provided by
shareholders during FY2023 and the support
for what we are seeking to achieve through
our modified Executive incentive plans.
Further detail on the review outcomes
and full suite of incentive plan changes,
including the CEO’s FY2024 STI metrics
and weightings, is provided in Section 3.7
of this report.

On behalf of the People and Remuneration
Committee, I would like to thank you for
your ongoing support and invite you to read
the full report in detail.

Karen Moses
Chair, People and Remuneration Committee

Orica LimitedAnnual Report 202388

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

REMUNERATION REPORT (CONTINUED)

Executive summary

FY2023 Remuneration Strategy and outcomes linked to business priorities and performance

At Orica, remuneration is linked to the drivers of our business strategy, helping to create long term success for shareholders. The at‑risk components
of remuneration are tied to measures that support safe and sustainable operations, alongside the delivery of operating and capital efficiencies
in both the short and long term. With the Board having committed to undertaking a fulsome review of Executive remuneration during FY2023,
the FY2023 remuneration strategy and framework remained consistent with the prior year.

OBJECTIVE: COMPETITIVE REMUNERATION THAT ALIGNS EXECUTIVES WITH THE LONG TERM SUCCESS OF ORICA AND ITS SHAREHOLDERS

D
R
A
O
B

S
E
I
T
I

R
O
R
P

Strong alignment
with shareholder returns and
overall business performance

Fit for purpose,
with a clear link to business
strategy and that drives
desired behaviours

Simple and transparent,
delivering incentive outcomes
that are well understood

Globally competitive,
enabling Orica to attract
and retain the best talent

Component

Fixed Annual Remuneration (FAR)

Short‑Term Incentive (STI)

Long‑Term Incentive (LTI)

Provide competitive base pay in a
challenging talent market that will attract
and retain the skills needed to manage
a complex global business.

Purpose
and link
to strategy

We target remuneration at the median of
an ASX listed comparator group comprising
companies of similar size, operations and
global business complexity.

The CEO receives a portion of FAR in equity
to ensure immediate and ongoing alignment
with our shareholders.

Drive long term value creation for
shareholders by encouraging an owner’s
mindset and decision‑making that
supports sustainable performance.

The LTI design:

• reinforces a focus on sustainable

productivity improvement and efficient
capital allocation during the three‑year
vesting period; and

• provides long term shareholder alignment

over a five‑year time horizon.

Drive performance aligned to near term
strategy and underpinning long term
value creation.

Scorecard metrics for FY2023 supported
a continued focus on:

• reducing serious injuries;

• minimising the impact of our operations

on the environment;

• driving improved financial performance;

• sustainable productivity improvement
and efficient capital allocation; and

• key strategic priorities including operating
efficiency, innovation and technology,
and adjacency growth.

The deferred equity component provides
long term shareholder alignment.

CEO:

20.9%

4.1%

12.5% 12.5%

Policy Mix
(at target):

Cash Equity

Other Executives:

35.7%

Delivery

FY2023
outcomes

Base salary,
superannuation
(or pension equivalent)
and allowances (per
local market practice).

For the CEO, $300,000
of FAR is delivered in
fixed equity that vests
monthly but is subject
to a trading restriction
until the CEO’s
minimum shareholding
guideline is met.

Following external benchmarking of his
remuneration (refer Section 3.1 for detail
on our benchmarking approach), the CEO
received a 7% increase in FAR from $1.7m
to $1.82m effective 1 April 2023. This was the
first increase since being appointed to the role
on 1 April 2021 and recognised both his
strong performance and leadership through
Orica’s critical recovery phase back to a
growth focus. It also ensures that we continue
to remain competitive against external market
peers. A portion of the CEO’s FAR continues
to be provided in the form of fixed equity
(FY2023 fixed equity grant of $300,000 was
made in December 2022).

Remuneration increases effective
1 January 2023 were also received by the
Chief Technology Officer (1.5%) and President
SHES, Discrete Manufacturing and Supply
(6.7%) following an assessment of market
benchmarks and performance in role.

Other Executives:

14.3% 7.1%

Portion as cash
payment (50% for
CEO; 66.7% for
other Executives).

CEO:

50.0%

Other Executives:

42.9%

Portion deferred into
shares with a
one‑year vesting
period and three‑year
holding lock (50%
for CEO; 33.3% for
other Executives).

Performance rights with a three‑year vesting
period and two‑year holding lock.

The LTI is granted at face value, based on
the volume weighted average price (VWAP)
of Orica shares during the five trading days
following the full year results announcement.

The FY2020‑22 LTI (tested in November 2022)
did not vest with three‑year average RONA
below the required threshold.

CEO and Executive STI outcomes were
between target and stretch in FY2023,
primarily driven by strong financial
performance, alongside improved safety and
sustainability results. Good progress was also
made against our key strategic priorities
across the business. Refer Section 3.2 for
further detail on performance against our
FY2023 STI scorecard metrics.

Deferred shares allocated under the FY2019
and FY2020 plans remain in a holding lock
and have therefore seen fluctuations
in value aligned with our share price
(no FY2021 deferred shares were allocated
as there were no Executive STI payments
for this financial year).

The FY2018 award was released from
restriction in December 2022.

Orica LimitedAnnual Report 2023
REMUNERATION REPORT (CONTINUED)

Contents

Section 1. Key Management Personnel

1.1

Executive Key Management Personnel

1.2 Non‑executive Directors Key Management Personnel

Section 2. Key stakeholder questions

2.1 How is Executive remuneration structured?

2.2 How does the CEO’s fixed equity component operate?

2.3 When is remuneration earned and received?

2.4 How much were Executive KMP paid in FY2023?

2.5 Will there be any changes to the FY2024

Executive incentives?

Section 3. Executive remuneration

3.1

Executive remuneration framework

3.2

Short‑term incentive outcomes – link to performance

3.3

Long‑term incentive outcome

3.4

Equity granted in FY2023

3.5 Overview of business performance – five‑year comparison 100

3.6

Service agreements

3.7

Executive remuneration in FY2024

100

101

Section 4. Non‑executive Director arrangements

4.1 Overview

4.2

Fees and other benefits

Section 5. Remuneration governance

5.1

Responsibility for setting remuneration

5.2 Use of remuneration advisors during the year

5.3

Securities dealing policy and Malus

5.4

Executive and Director share ownership

Section 6. KMP statutory disclosures

6.1

Executive KMP remuneration

6.2

Summary of awards held under Orica’s
Executive equity arrangements

6.3 Non‑executive Director remuneration

103

104

105

106

107

109

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

REMUNERATION REPORT (CONTINUED)

Section 1. Key Management Personnel

1.1 Executive Key Management Personnel

The table below lists the Executives of the Company who, together with the Non‑executive Directors, were defined as Key Management
Personnel (KMP) under Australian Accounting Standards for FY2023. For the purpose of this Remuneration Report, references to Executives are
to the Executive KMP and other Executive Committee members with the same remuneration arrangements as the Executive KMP.

Name

Role in FY2023

Commencement date in role

Country of residence

Executive Director

Sanjeev Gandhi

Executive KMP

Kim Kerr

Leah Barlow

Managing Director and CEO (CEO)

1 April 2021

Chief Financial Officer

11 October 2022

President – Safety, Health Environment and Security
(SHES), Discrete Manufacturing and Supply

1 July 2022

Angus Melbourne

Chief Technology Officer

1 April 2021

Former Executive KMP

Australia

Christopher Davis1

Chief Financial Officer

1 October 2018

Australia

1. Ceased to be KMP on 10 October 2022 and as an employee on 30 December 2022. Given the minimal length of time served as KMP during FY2023 and with all

unvested equity awards lapsing on cessation of employment, relevant disclosures in this Remuneration Report are contained within Section 6.1.

Executive Committee member qualifications, experience and responsibilities are detailed within the Annual Report.

1.2 Non‑executive Directors Key Management Personnel

The Non‑executive Directors who held office during FY2023 are set out below. This includes Mark Garrett and Vanessa Guthrie, who commenced
in their roles effective 15 January and 1 February 2023 respectively and will stand for election at the 2023 Annual General Meeting. These directors
have oversight of the strategic direction of the Company but have no direct involvement in the day‑to‑day management of our business.

Name

Role in FY2023

Commencement date in role

Country of residence

Current Directors

Malcolm Broomhead

Non‑executive Director, Chairman

1 December 2015

John Beevers

Mark Garrett

Denise Gibson

Non‑executive Director

Vanessa Guthrie

Non‑executive Director

Karen Moses

Gordon Naylor

Gene Tilbrook

Former Directors

Maxine Brenner1

Boon Swan Foo1

Non‑executive Director

1. Retired from the Board on 14 December 2022.

1 February 2020

15 January 2023

1 January 2018

1 February 2023

1 July 2016

1 April 2022

14 August 2013

8 April 2013

6 May 2019

Australia

Switzerland

United States

Australia

Singapore

Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

Section 2. Key stakeholder questions

2.1 How is Executive remuneration structured?

Our Executive remuneration framework is weighted towards variable (at‑risk) remuneration to align with the interests of our shareholders
and drive performance against short and long term business objectives.

Assuming target STI and the face value of LTI granted to Executives, the current policy remuneration mix is:

• CEO: 75.0 per cent variable based on performance, 62.5 per cent of which is delivered as deferred shares or performance rights.

• Other Executives: 64.3 per cent variable based on performance, 50.0 per cent of which is delivered as deferred shares or performance rights.

20.9%

50.0%

CEO
33% Cash
67% Equity

4.1%

12.5%

Fixed Cash

Fixed Equity

STI Cash

STI Equity

LTI Rights

35.7%

42.9%

Other Executives
50% Cash
50% Equity

Fixed Cash

STI Cash

STI Equity

LTI Rights

12.5%

14.3%

7.1%

2.2 How does the CEO’s fixed equity component operate?

On Sanjeev Gandhi’s appointment to the CEO role in FY2021, the Board determined it appropriate for a portion of his FAR to be delivered in
the form of Orica equity to ensure immediate and ongoing alignment with shareholders. At the same time, the CEO’s minimum shareholding
requirement was increased from 100 per cent to 150 per cent of FAR and the time period allowed to reach this holding reduced from six to
five years from appointment. For FY2023, Mr Gandhi again received $300,000 of his FAR as fixed equity, granted in the form of restricted rights
which vest monthly in alignment with the payment of fixed cash. The allocation value for the FY2023 grant made in December 2022 was based
on the five‑day VWAP following FY2022 full‑year financial results, consistent with the FY2023‑25 LTI plan.

Oct 22

Nov 22

Dec 22

Jan 23

Feb 23 Mar 23

Apr 23 May 23

Jun 23

Jul 23

Aug 23

Sep 23

Fixed Cash – monthly cash payments

Fixed Equity – monthly vesting in equal tranches; October and November tranches were granted in December as fully vested rights

Holding lock until CEO holds
150% x FAR in vested equity

Grant of restricted rights

Vesting date

Vested rights are exercisable for a five‑year period from grant, with the underlying shares subject to a holding lock until the CEO exceeds his
minimum shareholding requirement, except where the sale of shares is required to meet tax obligations.

Further information on the CEO’s fixed equity is detailed in Section 3.1.

Orica LimitedAnnual Report 2023
Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

REMUNERATION REPORT (CONTINUED)

2.3 When is remuneration earned and received?

The diagram below illustrates the period over which FY2023 remuneration is earned and delivered. The intent is to reward Executives progressively
across different timeframes with ongoing alignment with shareholders through the equity components.

FY2023

FY2024

FY2025

FY2026

FY2027

d
e
x
i
F

e
l
b
a
i
r
a
V

Fixed Cash

Fixed Equity

Cash STI

Holding lock until minimum shareholding guideline is met

STI Deferred Shares

1 year deferral

3 year holding lock post vesting

LTI Performance Rights

2 year holding lock post vesting

End of performance period

Vesting date

2.4 How much were Executive KMP paid in FY2023?

The table below presents the remuneration paid to, or vested for, current Executive KMP in FY2023. The STI outcomes reflect Orica’s strong
financial and non‑financial performance over FY2023 (refer to Section 3.2 for information on the determination of FY2023 STI outcomes including
the CEO’s STI scorecard and associated performance commentary).

Executive KMP

Sanjeev Gandhi

Kim Kerr

Leah Barlow

Angus Melbourne

Total

Fixed pay1
$000

STI to be
paid in cash2
$000

1,460.0

1,299.0

775.0

787.5

930.4

514.2

570.7

639.0

3,952.9

3,022.9

Total cash
payment
$000

Equity awards
vested during
year3
$000

2,759.0

1,289.2

1,358.2

1,569.4

6,975.8

301.0

–

301.0

Total
remuneration
received
$000

3,063.2

1,292.0

1,380.6

1,572.0

7,307.8

Other4
$000

3.2

2.8

22.4

2.6

31.0

1. Fixed pay includes actual base pay received in cash and superannuation (or equivalent pension) contributions for each individual’s applicable KMP period. For Sanjeev
Gandhi, it therefore does not include the equity component of his fixed annual remuneration (i.e., the FY2023 fixed equity) which is captured under the ‘Equity
awards vested during the year’ column.

2. Refers to FY2023 Executive STI plan cash payments that will be received by Executives in December 2023 (in accordance with the STI plan rules, associated deferred

shares will also be granted in December 2023 to all Executives).

3. Refers to the face value of Executive equity awards (using the share price at the vesting date) that vested during FY2023. No deferred shares vested in FY2023 due to
there being no FY2021 Executive STI and correspondingly no associated deferred shares awarded. The FY2020‑22 Executive LTI also did not vest. For Sanjeev Gandhi,
the amount includes FY2023 fixed equity which is part of his FAR.

4. Refers to other benefits and allowances provided (where applicable) including fees relating to managing trailing tax obligations associated with international

assignments and/or permanent relocations. Movements in annual leave and long service leave balances have not been shown.

Refer to Section 6.1 for the remuneration table prepared in accordance with the accounting standards.

2.5 Will there be any changes to the FY2024 Executive incentives?

During FY2023, the Board undertook a formal review of the Executive remuneration framework with a focus on support for Orica’s objectives
under our refreshed strategy, delivering outcomes aligned with long term shareholder returns, and motivating and retaining our critical talent.
The review confirmed that our current framework, with a separate short‑ and long‑term incentive, remains the most appropriate approach as
we continue to focus on improved efficiency and growth within our core business whilst also looking towards a more sustainable future.
However, several changes to our short‑ and long‑term incentives will be made for FY2024. Refer Section 3.7 for detail on these changes.

Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

Section 3. Executive remuneration

3.1 Executive remuneration framework

The following table outlines the FY2023 Executive remuneration framework.

Remuneration Positioning

Market position

Median for FAR and between Median and 75th percentile for total remuneration where outstanding performance
is delivered.

Comparators

Primary comparator group – 14 ASX listed companies similar in size, operations and complexity to Orica, with
reference to market capitalisation, revenue, industry and the extent of international operations.

The primary comparator group was last reviewed as at 30 June 2023 and comprises the following companies: Amcor
Plc, Ansell Limited, BlueScope Steel Limited, Brambles Limited, Cochlear Limited, Incitec Pivot Limited, James Hardie
Industries Plc, Newcrest Mining Limited, Nufarm Limited, Orora Limited, Sims Limited, Santos Limited, South 32
Limited and Worley Limited.

Secondary comparator group (reference) – ASX listed companies with market capitalisation between 50% and
200% of Orica’s 12‑month average market capitalisation, as at 30 June of the relevant financial year.

Where appropriate, particularly for roles located outside of Australia, additional sector or local industry specific data
is taken into consideration in benchmarking Executive remuneration.

FAR (Cash)

Payment vehicle

Cash salary, superannuation (or pension equivalent) and allowances (per local market practice).

FAR (Equity)

Payment vehicle

Restricted rights (each vested right providing a 1:1 entitlement to Orica shares).

Opportunity
(face value)

CEO: Grant value of $300,000 for FY2023 (17.6% of FAR at the date of grant).

The actual number of restricted rights issued was determined by dividing FAR (Equity) opportunity by the five‑day
VWAP of Orica shares following the announcement of our FY2022 annual results ($15.24).

Vesting period

1 October 2022 to 30 September 2023.

Vesting schedule

Vests in equal monthly tranches subject to continued employment until the end of the relevant month.
Due to timing of the grant, the first two tranches were granted as fully vested rights.

Exercise period

Between vesting and five‑years from grant.

Holding locks

Shares allocated following exercise of vested rights will be subject to a holding lock until the CEO’s minimum
shareholding requirement (150% x FAR) has been met.

Cessation of
employment

Unvested rights lapse on cessation, subject to Board discretion to determine otherwise. Vested rights are retained
with no holding locks attached to the underlying shares.

Change of control

Board discretion to determine an appropriate treatment.

Access to dividends

Entitlement to dividend equivalent payments in relation to vested rights.

STI

Payment vehicle

Cash and deferred shares.

Opportunity

CEO: 0 to 150% of FAR; 100% at target.

Other Executives: 0 to 120% of FAR; 60% at target.

For Executives based outside of Australia, opportunities are referenced to base salary only.

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Performance
measures

CEO: Safety & Sustainability (25%) comprising Serious Injury Case Rate (SICR), Loss of Containment (LOC) and Global
Scope 1 & 2 Absolute Emissions Reduction; Financials (75%) comprising EBIT, RONA and CGE1.

Other Executives: Safety & Sustainability (25%); Financials (50%); Strategic priorities (25%).

Required performance levels for threshold, target and maximum are set for each Safety, Sustainability and Financial
metric. Below threshold, no incentive is paid. Above threshold, straight‑line vesting applies between threshold and
target, and between target and maximum.

While not specifically included within the CEO or Executive STI scorecards, the Board has consideration for overall
progress made against Orica’s corporate plan, key people metrics and adherence to business conduct and compliance
frameworks. The determination of final outcomes for all Executives includes input from Board Committee Chairs and
senior functional leaders (including from the Finance, Legal, Risk & Assurance, SHES, Sustainability and People functions).

Deferred STI

CEO: 50% of STI delivered in deferred shares which vest after one‑year and are subject to risk of forfeiture.

Other Executives: one‑third of STI delivered in deferred shares which vest after one‑year and are subject to risk
of forfeiture.

The number of deferred shares granted is calculated using the five‑day VWAP of Orica shares following the
announcement of our FY2022 annual results ($15.24).

Holding lock

Following the one‑year vesting period, vested deferred shares are subject to a further
three‑year holding lock during which time Executives are restricted from trading in shares.
Disposal restrictions may be lifted only where an Executive is required to fund personal
tax obligations arising on vesting of shares (applicable for certain non‑Australian based
Executives) or on cessation of employment.

Cessation of
employment

Unvested deferred shares lapse on resignation or termination for cause. In other circumstances,
being good leaver events, unvested shares may be retained subject to the original vesting period
and holding lock.

Vested deferred shares are retained on cessation, subject to the original holding lock.

The Board retains discretion to determine a different treatment on cessation if considered
appropriate in the circumstances.

Board discretion to determine an appropriate treatment.

Executives are entitled to accumulate dividends during both the deferral and holding
lock periods.

Change of
control

Access to
dividends

LTI

Payment vehicle

Performance rights (each vested right providing a 1:1 entitlement to Orica shares).

Opportunity
(face value)

CEO: 200% of FAR grant at face value.

Other Executives: 120% of FAR grant at face value.

Performance
period

Performance
measures

For Executives based outside of Australia, opportunities are referenced to base salary only.

The actual number of performance rights issued to each Executive was determined by dividing their respective grant
values by the five‑day VWAP of Orica shares following the announcement of our FY2022 annual results ($15.24).

Performance is measured over three financial years (FY2023, FY2024 and FY2025).

50% of Rights are subject to RONA2 – calculated as annual EBIT/rolling 12‑month Net Operating Assets
(calculated on an average basis over three financial years).

50% of Rights are subject to Relative Total Shareholder Return (rTSR) performance.

1. For STI purposes, EBIT is defined as earnings from Continuing Operations before interest, tax and individually significant items; RONA is defined as EBIT/Net operating
assets. Net operating assets is defined as rolling 12‑month average assets including net property, plant and equipment; intangibles at NBV; current and non‑current
investments in associates at current carrying value; trade working capital; non‑trade working capital excluding environmental provisions; CGE is defined as Net
cash from operating activities (incorporating movement in 12‑month average trade working capital) excluding cash outlays related to growth capital or other
investments, non‑trade working capital, and payments to and from shareholders and debt, but including sustaining capital/Earnings Before Interest, Taxes,
Depreciation and Amortisation.

2. For LTI purposes, RONA is defined as EBIT/Net operating assets. Net operating assets is defined as rolling 12‑month average assets including net property, plant and

equipment; intangibles at NBV; current and non‑current investments in associates at current carrying value; trade working capital; non‑trade working capital excluding
environmental provisions; EBIT is defined as earnings from Continuing Operations before interest, tax and individually significant items.

Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

Targets and
vesting schedule

RONA Component (50%)

The FY2023‑25 vesting schedule for the RONA performance measure is as follows:

Average RONA over 3 years

% of Rights vesting

Below 10.5%

At 10.5%

No vesting

30% of Rights vest

Between 10.5% and 12.0%

Straight line vesting between 30% and 60%

At 12.0%

60% of Rights vest

Between 12.0% and 13.0%

Straight line vesting between 60% and 100%

At or above 13.0%

100% of Rights vest

The FY2023‑25 LTI RONA targets reflected the Board’s expectations in late 2022 based on Orica’s corporate plan
and the long term growth forecast considering the current industry and market cycle.

Relative TSR Component (50%)

Orica’s TSR performance over the performance period will be measured against the performance of constituents
within the ASX 100 index, defined as at the start of the performance period (1 October 2022).

Orica TSR percentile ranking
(against constituents of ASX 100)

Below 50th

50th (Target performance)

% of Rights vesting

50% of Rights vest

Between 50th and 75th percentile

Straight line vesting between 50% and 100%

75th or above (Stretch performance)

100% of Rights vest

Holding locks

Following the three‑year performance period, vested performance rights are converted into shares and are subject to
a further two‑year holding lock during which time Executives are restricted from dealing in those shares. The holding
lock is designed to support an owner’s mindset and provide alignment with shareholders. Disposal restrictions may
be lifted where an Executive is required to fund personal tax obligations arising from the vesting of Rights (applicable
for certain non‑Australian based Executives).

Cessation of
employment

Unvested rights lapse on resignation or termination for cause. In other circumstances, being good leaver events, a pro‑rata
portion of rights (based on service period) is retained subject to the original vesting period and holding lock.

Vested rights are retained on cessation, subject to the original holding lock.

The Board retains discretion to determine a different treatment on cessation if considered appropriate in the circumstances.

Change of control

Board discretion to determine an appropriate treatment.

Access to dividends

Executives are not entitled to receive dividends on unvested performance rights during the three‑year performance
period. Once vested, Executives are entitled to receive dividends during the two‑year holding lock.

The Board has an overriding discretion to adjust final outcomes under the terms of both the STI and LTI plans to ensure executive reward
outcomes are reflective of our overall performance and aligned to shareholder expectations.

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3.2 Short‑term incentive outcomes – link to performance

(a) Summary of FY2023 STI performance conditions and performance level achieved

Consistent with the prior year, performance is measured against a suite of financial and non‑financial metrics as part of each Executive’s
performance review. Key drivers of performance within the CEO’s STI scorecard are outlined below, with the resultant outcome for FY2023
being 147.6 per cent of his target STI opportunity (98.4 per cent of maximum).

Measure

Target

Weighting
(at target)

Threshold

Target

50%

100%

Max

150%

Weighted
Outcome
(%)

Performance
commentary

2023 performance

Safety and
Sustainability

Rewards a continuous focus on ensuring safe and reliable operations, and reducing the impact of our business
on the environment

SICR1

0.149

10%

Loss of
Containment2

15.0%

7.5%

Global Scope
1 & 2 GHG
Emissions
Reduction3

15.9%

10%

15.0%

Safety outcomes were much improved from FY2022
with zero fatalities or serious life changing injuries
and continuous improvement seen through SICR
outcomes. We also continued to see improvement
in the severity level of LOC events with the overall
number reducing again in FY2023.

Net emissions reduced substantially from the prior
year, resulting in Orica achieving a 22% reduction
in Global Scope 1 & 2 GHG emissions from our
FY2019 baseline levels. This outcome was enabled
by the completion of tertiary catalyst abatement
deployment at Kooragang Island, with the final
investment decision reached during the year in
relation to Yarwun tertiary catalyst abatement
expected to also deliver further emissions
reduction. Refer to page 62 for detail on our
key sustainability achievements for the year.

Financials

Rewards improvements to earnings, enhanced returns from invested capital, developing enabling technology
and adjacency growth, and optimising capital allocation/reallocation

EBIT4

$596.2m

30%

45.0%

EBIT of $698.1m was above stretch, underpinned
by strong results in Australia Pacific, Asia and
EMEA, and ongoing commercial discipline across
the portfolio. The successful replacement of
earnings previously contributed by our Russia
business was supported by accelerated growth in
emerging Africa, GroundProbe and the increasing
adoption of technology‑based solutions.

RONA4

10.9%

30%

45.0%

RONA of 12.6% was above stretch, driven
predominantly by the strong EBIT result
against budget.

CGE4

43.6%

15%

20.1%

Overall STI outcome

% of Target
% of Maximum

147.6%
98.4%

CGE of 46.6% was between Target and Stretch
as a result of both a strong EBITDA result and
significant efforts to reduce trade working capital
(TWC) despite the impact of ongoing security
of supply challenges and capital expenditure to
support sustainability and key sustenance projects.

1. SICR measures the total number of Severity 3 and Severity 4 injuries and illnesses per 200,000 hours worked by an employee/contractor. Excludes non‑work‑related

injury/illness and occupational disease or illness that are attributable to chronic exposure to harmful agents over an extended period.

2. LOC measures the total number of uncontrolled releases of material from a primary containment that results in a Severity 1 or greater environmental impact on water

or soil. From FY2022, the targets exclude events occurring in transit, the focus being on events that are within Orica’s direct operational control.

3. Scope 1 and 2 refers to emissions under Orica’s operational control, measured in accordance with the GHG Protocol and National Greenhouse and Energy Reporting

(NGER) Measurement Determination.

4. Refer Section 3.1 for the definitions of EBIT, RONA and CGE for FY2023 STI purposes.

Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

The overall outcomes for Executive KMP (other than the CEO) ranged from 82.6 per cent to 90.6 per cent of their maximum opportunity, largely
driven by strong Group performance. Differences in outcome reflect individual performance and the performance of the business units and/or
functions over which the Executives were accountable during FY2023, considering delivery against applicable strategic objectives determined by
the Board at the start of the financial year with clear alignment to Orica’s corporate plan. Performance commentary for each Executive is outlined
in the table below.

Chief Financial Officer

President SHES, Discrete
Manufacturing & Supply

Chief Technology Officer

Ms Kerr achieved strong results against her strategic objectives. Proactive debt management, including extending
Orica’s drawn debt maturity through completion of the issuance of USD$350m of fixed‑rate unsecured notes in
the US Private Placement market and embedding a disciplined approach to capital expenditure across all parts
of the business positions Orica well to continue pursuing growth opportunities and decarbonisation initiatives.
A centralised focus on inventory resulted in significantly improved TWC and cash flow positions.

Ms Barlow delivered outstanding outcomes across her areas of accountability. The success of Orica’s SHES
programs, including the Major Hazard Management (MHM) program that has been critical to driving a global
safety culture, was seen through Group SICR and LOC outcomes. The increase in our Electronic Blasting System
(EBS) capacity globally has enabled the realisation of sourcing and cost benefits through the Discrete Network
Optimisation (DNO) program which is delivering ahead of plan with global hubs in India and Peru.
Notwithstanding ongoing external challenges, the strength of our manufacturing and supply networks
continues to ensure security of supply for our customers.

Mr Melbourne oversaw the successful launch of Orica’s Digital Solutions vertical, which together with the
integration of Axis Mining Services, is delivering robust growth in a market with an accelerated focus on
digitisation and automation. Growth in new technology returns across all regions was a significant contributor
to Orica’s strong financial results and we continue to see increased technology adoption as new digital
and technology solutions are launched or transition from customer trials to commercialisation. In FY2023,
this included the launch of OrePro™ Predict and WebGen™ 200 in Underground and Surface mining markets,
and the commercialisation of 4D™ technology.

(b) Short-term incentive outcome – FY2023

Details of the FY2023 outcomes for eligible Executive KMP are set out in the table below:

For the year ended
30 September 2023

Current Executive KMP

Sanjeev Gandhi

Kim Kerr2

Leah Barlow

Angus Melbourne

Maximum STI
Opportunity
$000

Actual STI
paid in cash
$000

Actual STI paid
in deferred
equity1
$000

Actual STI
payment
as % of
maximum

% of maximum
STI forfeited

2,640.2

933.7

944.9

1,116.5

1,299.0

514.2

570.7

639.0

257.1

285.4

319.5

98.4%

82.6%

90.6%

85.9%

1.6%

17.4%

9.4%

14.1%

1. Under AASB 2 Share-based Payments, STI paid to Executives as deferred shares is accounted for as a share‑based payment and expensed over two years. Accordingly,
50% of the value of deferred equity is included in each Executive KMP’s share based payments expense in the relevant performance year with the remainder included
in the subsequent year.

2. Refers only to Kim Kerr’s KMP period from 11 October 2022.

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3.3 Long‑term incentive outcome

The table below summarises the LTI Plan awards tested in the current financial year together with awards that remain unvested. The current face
value (and the estimate of the maximum possible total value) of LTI Plan awards granted during FY2023 that are yet to vest, can be determined
by multiplying the number of awards shown in Section 6.2 by the current share price of the Company. The minimum possible total value of the
awards is nil. The actual value that may ultimately be received by Executives cannot be determined as it is dependent on and therefore fluctuates
with movements in the Company’s share price.

Plan

LTIP

Grant

FY2020

FY2021

FY2022

FY2023

Performance period

Performance measures applicable to award

Outcome

FY2020 – FY2022

FY2021 – FY2023

RONA (100%)

FY2022 – FY2024

RONA (50%), rTSR (50%)

FY2023 – FY2025

RONA (50%), rTSR (50%)

No vesting

Not yet tested

The FY2020 grant was tested in November 2022 but did not vest as the three‑year average RONA was below the required threshold. In determining
the average RONA outcome, the Board applied discretion to adjust EBIT and Net Operating Assets (being the inputs used to calculate RONA) to
remove the acquisition year impact of the Exsa transaction, the impact of the IRFS‑16 leasing standards and SaaS accounting changes, the sale
of Minova and Nitro Consult, and Orica’s exit from Russia. Net Operating Assets was also adjusted to ensure management were not advantaged
from impairments to IT and other assets or business impairments that occurred during the performance period. Overall, management were
neither advantaged nor disadvantaged by the adjustments made and they did not change the vesting outcome.

FY2020‑2022 LTIP

RONA (3‑year average)

Final outcome

Vesting position

% Rights vesting

9.6%

Below threshold of 13.4%

3.4 Equity granted in FY2023

The table below presents the equity granted at face value to Executive KMP during FY2023.

Executives (KMP)

Sanjeev Gandhi

Kim Kerr

Leah Barlow

Angus Melbourne

Total

FY2023
LTI1
$000

3,400.0

960.0

1,120.8

6,440.8

FY2022
Deferred shares
$000

1,057.4

–

189.4

301.7

1,548.5

Other2
$000

300.0

–

300.0

Total
$000

4,757.4

960.0

1,149.4

1,422.5

8,289.3

1. Due to vest in November 2025 subject to satisfaction of performance conditions and then subject to a two‑year holding lock.

2. Relates to Sanjeev Gandhi’s FY2023 fixed equity grant which as part of his FAR vests in equal monthly tranches (refer Section 3.1 for details).

Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

3.5 Overview of business performance – five‑year comparison

The table below summarises key indicators of the performance of the Company, relevant shareholder returns over the past five financial years,
and average Executive KMP STI vesting outcomes.

Financial year ended 30 September

Profit/(loss) from the consolidated group operations ($m)

Individually significant items ($m)1

EBIT ($m)2

Dividends per ordinary share (cents)

Closing share price ($ as at 30 September)

Three‑month average share price (1 July to 30 September) each year

EPS growth (%)2

NPAT ($m)2

External Sales ($m)

Cumulative TSR (%)3

Average STI received as % of maximum opportunity for Executives4

1. This figure is before interest, tax and non‑controlling interests.

2. Before individually significant items.

2019

468.8

195.9

664.7

55.0

22.54

21.36

14.2

371.9

2020

320.6

293.1

613.7

33.0

15.43

17.05

(22.8)

299.1

2021

(27.3)

453.9

426.6

24.0

13.79

12.83

(32.3)

208.4

2022

304.5

274.0

578.5

35.0

13.22

15.41

49.2

317.0

2023

526.9

171.2

698.1

43.0

15.59

15.39

6.3

369.0

5,878.0

5,611.3

5,682.2

7,327.5

7,945.3

11.56

53.3

(8.91)

29.2

(30.35)

(14.94)

(1.09%)

0.0

67.7

89.4

3. Cumulative TSR has been calculated using the same start date for each period measured (1 October 2018). In calculating the cumulative TSR, three‑month average

share prices (1 July to 30 September for each year) have been used.

4. Refers to awards received by Executive KMP under the Executive STI plan.

3.6 Service agreements

Remuneration and other terms of employment for Executives are formalised in service agreements. The terms and conditions of employment
for each Executive reflect market conditions at the time of their contract negotiation on appointment or subsequently. The material terms of
the employment contracts for the current Executive KMP are summarised in the table below and subject to applicable law.

Contractual Term

Application

Conditions

Duration of contract

All Executive KMP

Permanent full‑time employment contract until notice given by either party.

Notice period to be
provided by Executive

Notice period to be
provided by Orica

All Executive KMP

Six months.

CEO

Six months. Orica may elect to make payment in lieu of notice. In the event of
Orica terminating the service agreement, the CEO will be entitled to receive
a termination payment of six months’ salary (less any payment in lieu of notice).
Should the CEO’s service agreement be terminated by mutual agreement,
six months’ salary is payable (in which case no notice is required to be given).

Other Executive KMP

Executives have either a 13 week or 26 week notice period.

Post‑employment
restraints

All Executive KMP

Executives are entitled to be paid an amount equivalent to up to 26 weeks’
FAR on termination.

Each Executive has also agreed to restraints and non‑solicitation undertakings
as part of their service agreements, which will apply upon cessation of their
employment to protect the legitimate business interests of Orica.

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3.7 Executive remuneration in FY2024

As a result of the Board’s review of Executive remuneration in FY2023, several changes will be made to FY2024 incentives as outlined below.

Introduction of a Business Sustainability LTI metric

Our refreshed strategy balances continued growth in Orica’s underlying business with the need to make substantial operating changes that
will ensure the longevity of the company and ongoing returns for our shareholders. The new Business Sustainability metric will encourage
our Executives to make these long term decisions and complement our existing RONA and rTSR metrics. For the FY2024‑26 LTI award,
the Business Sustainability metric will be specifically focused on Portfolio Resilience and Diversification, rewarding for the delivery of initiatives
and outcomes that strengthen the resilience and sustainability of Orica’s portfolio in alignment with our strategic plan. This includes:

• Increasing our exposure to and delivering on the growth potential of key emerging markets within Asia, Africa and Latin America;

• Growth in Orica Digital Solutions through the accelerated adoption of innovative blasting technologies and expansion in high‑growth
Mining Chemicals markets, balancing our core blasting business and accelerating customer usage of more sustainable solutions; and

• Moving towards more progressive and sustainable commodities that are essential to a broader energy transition, including rebalancing

our portfolio mix towards gold, copper, future‑facing commodities and the Quarry and Construction vertical.

Incorporating the new Business Sustainability metric, the FY2024‑26 LTI Plan metrics and weightings are shown below:

Measure

Return on Net Assets

Relative Total Shareholder Return

Business Sustainability: Portfolio Resilience and Diversification

– Increasing exposure to key emerging markets

– Accelerating growth in Orica Digital Solutions and Mining Chemicals

– Moving towards a more progressive and sustainable commodity mix

Weighting

40.0%

20.0%

The outcome of the Business Sustainability metric will be determined by the Board at the end of the three‑year vesting period considering our
progress in each of the relevant areas against a set of challenging internal targets directly aligned to our long term strategic plan. The Board’s
final vesting assessment and associated rationale will be clearly communicated to investors in the relevant Remuneration Report. With regard
to what may be considered commercially sensitive information at the time of vesting, this will include how we have performed against the
relevant targets.

Changes to the STI scorecard

STI design changes for FY2024 primarily seek to provide a more balanced view of performance with the introduction of an Operational Priorities
component within the CEO scorecard and expansion of the existing emissions reduction metric to include an assessment of delivery of key Net
Zero Program initiatives that are viewed as being critical to meeting Orica’s stated targets.

Changes have also been made to the Financial metrics, taking into consideration investor feedback on RONA duplication and shifting from
Cash Generation Efficiency (an internal metric) to Net Operating Cash Flows (an externally reported metric). The latter change will continue
to drive a strong focus on cash generation from operations while being a metric that is better understood internally and externally.

A fatalities gateway has also been introduced over our Safety metric such that the outcome of this metric may be reduced to nil in the event
of a fatality, having regard to its circumstances.

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Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

The FY2024 CEO scorecard metrics and weightings are shown below:

Measure

Metric

Safety, Environment
and Decarbonisation

Serious Injury Case Rate

Loss of Containment

Global Scope 1 & 2 Absolute Emissions Reduction; and delivery of key Net Zero Program initiatives

Financial

EBIT

Operational Priorities

Operational Excellence

Net Operating Cash Flows

Operational Efficiency

Value Generation

Weighting
(at target)

10.0%

5.0%

10.0%

40.0%

20.0%

5.0%

The Operational Priorities metrics focus on how well we deliver our planned, core activities; how efficiently we are operating as a business; and
what we need to do to ensure sustainable growth that will deliver long term shareholder value. At the end of the performance period the Board
will conduct a detailed assessment of what has been delivered against a robust set of internal targets to determine the outcome of each metric.
Performance commentary will be included in the FY2024 Remuneration Report to provide investors with transparency regarding the basis for
the Board’s vesting assessment.

Executive STI scorecards will contain the same measures as in the CEO scorecard, however the weightings will differ and underlying Operational
Priorities metrics will be based on each individual’s key accountabilities.

Other structural amendments

In addition to the incentive design changes outlined above, two structural amendments will also be made:

• Removal of the three‑year STI post‑vesting holding lock, which the review confirmed as being out of step with ASX‑listed market peers and

deemed to no longer be necessary given substantial Executive shareholdings, re‑introduction of rTSR into the LTI from FY2022 and retention
of the two‑year LTI post‑vesting holding lock. The one‑year vesting period on STI deferred shares will remain. This change will first come into
effect for the FY2024 STI and no changes will be made in respect of deferred shares granted in prior years, or that will be granted under
the FY2023 STI.

• Effective 1 October 2023, a reduction to the minimum shareholding time period for Executives from six to five years from their appointment
to the Executive Committee to align with the CEO time period which was similarly reduced to five years on appointment of the new CEO.
All Executives are on‑track to achieve their minimum shareholding within this reduced time.

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Section 4. Non‑executive Director arrangements

4.1 Overview

Fees for Non‑executive Directors (Directors) are set by reference to:

• the individual’s responsibilities and time commitment attached to the role of Director and Committee membership;

• the Company’s existing remuneration policies and survey data sourced from external specialists; and

• fees paid by comparable companies and the level of remuneration required to attract and retain Directors of the appropriate calibre.

T o preserve their independence, Directors do not receive any form of performance‑based pay.

The current aggregate fee pool for Directors of $2,750,000 was approved by shareholders at our 2019 Annual General Meeting. The Company
pays both superannuation and Committee fees to the Directors from this pool. Committee fees are not paid to the Chairman of the Board.

4.2 Fees and other benefits

The table below sets out the elements of Directors’ fees and other benefits applicable for the full FY2023, noting there were no changes
to Board or Committee fees from the prior year.

Fees/benefits

Description

Board fees

Main Board

Chairman – Malcolm Broomhead

Members – all Non‑executive Directors

Committee fees

Board Audit and Risk Committee

Chair – Gene Tilbrook

Members – Karen Moses (from January 2023), Gordon Naylor,
Maxine Brenner (to December 2022), Boon Swan Foo (to December 2022)

People and Remuneration Committee

Chair – Karen Moses (from January 2023), Maxine Brenner (to December 2022)

Members – Denise Gibson, Vanessa Guthrie (from February 2023)

Innovation and Technology Committee

Chair – Denise Gibson

Members – John Beevers, Mark Garrett (from January 2023),
Boon Swan Foo (to December 2022)

Safety and Sustainability Committee

Chair – John Beevers (from January 2023), Karen Moses (to December 2022)

Members – Gordon Naylor (from January 2023),
Vanessa Guthrie (from February 2023), Gene Tilbrook (to January 2023)

Superannuation contributions are made on behalf of the Directors at a rate
of 11% from 1 July 2023 (10.5% prior to 1 July 2023) being the current
superannuation guarantee contribution rate, subject to a cap at the Maximum
Contributions Base.

Directors receive a travel allowance based on the hours travelled to a Board
meeting. The allowance paid is $3,000 per meeting for travel between three
and 10 hours, or $6,000 if travel time exceeds 10 hours. Directors are also
entitled to be paid additional fees for extra services or special exertions.

Superannuation

Other fees/benefits

Included in
shareholder
approved
cap

2023
$

510,000

177,000

45,000

22,500

45,000

22,500

45,000

22,500

45,000

22,500

Yes

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Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

Section 5. Remuneration governance

5.1 Responsibility for setting remuneration

The People and Remuneration Committee is delegated responsibility by the Board for reviewing and making recommendations on our
remuneration policies, including policies governing the remuneration of Executives.

Activities of the Committee are governed by its Terms of Reference, which is available on our website at www.orica.com. Among other responsibilities,
the Committee assists the Board in its oversight of:

• remuneration policy for Executives

• level and structure of remuneration for Senior Executives, including STI and LTI plans

• the Company’s compliance with applicable legal and regulatory requirements in respect of remuneration matters; and

• approval of the allocation of shares and awards under Orica’s equity programs.

5.2 Use of remuneration advisors during the year

Independent remuneration advisors are engaged from time to time to provide relevant information including benchmarking and other market
data or to give an external perspective that may assist the Committee with its decision making. No remuneration recommendations were received
from remuneration advisors during FY2023, as defined under the Corporations Act 2001.

5.3 Securities dealing policy and Malus

Securities dealing

All Executives are required to comply with our Securities’ Dealing Policy at all times and in respect of all Orica shares held, including any defined
employee share plans. Trading is subject to pre‑clearance and is not permitted during designated blackout periods unless there are exceptional
circumstances. Executives are prohibited from using any Orica shares as collateral in any margin loan or derivative arrangement.

Malus

Orica’s Malus Standard allows the Board to require any Executive to forfeit in full or in part, any unvested LTIP or deferred STI award as a result of:

• a material misstatement in financial results;

• behaviour that brings Orica into disrepute or has the potential to do so;

• serious misconduct; or

• any other circumstance, which the Board has determined in good faith.

In considering whether any adjustment is necessary in respect of any or all participants, the Board may take into account the individual’s level
of responsibility, accountability or influence over the action or inaction, the quantum of the actual loss or damage, any impact on our financial
soundness or reputational standing, the extent to which any internal policies, external regulations and/or risk management requirements were
breached, and any other relevant matters.

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5.4 Executive and Director share ownership

The Board considers that an important foundation of our Executive remuneration framework is that each Executive and Director accumulate
and hold a significant number of Orica shares to align their interests as long term investors.

Executives

The Executive Minimum Shareholding Guideline requires each Executive to accumulate a minimum vested equity holding in Orica over a fixed
time period from their appointment. The requirement is 150 per cent of FAR over five years from appointment for the CEO and following
a change in the timeline from 1 October 2023, 50 per cent of FAR over five years from appointment for other Executives.

Non-executive Directors

To create alignment between Directors and shareholders, Directors are required to hold (or have a benefit in) shares in the Company equivalent
in value to at least one year’s base fees. Such holdings must be acquired over a reasonable time using personal funds.

The table below sets out the number of shares held directly and indirectly by Directors and Executive KMP employed as at 30 September 2023:

Executive KMP

Sanjeev Gandhi4

Kim Kerr5

Leah Barlow

Angus Melbourne

Directors

Malcolm Broomhead

John Beevers

Mark Garrett5

Denise Gibson

Vanessa Guthrie5

Karen Moses

Gordon Naylor

Gene Tilbrook

Balance at
1 October
2022

Acquired1

Disposed

Balance at
30 September
2023

Minimum
Shareholding
Required2

77,571

–

3,810

62,291

39,847

14,800

12,000

13,000

–

14,348

11,500

16,033

19,685

5,421

4,071

745

–

3,000

–

97,256

5,421

7,881

63,036

39,847

14,800

12,000

13,000

–

14,348

14,500

16,033

175,112

25,657

29,955

32,713

11,353

Date Minimum
Shareholding
Required to
be met3

31 March 2026

10 October 2027

31 March 2027

31 December 2022

1. Shares acquired include STI deferred shares that have vested but remain subject to holding locks and shares acquired through the Dividend Reinvestment Plan (DRP).

2. Calculated using base fees or FAR and the Orica closing share price as at 30 September 2023.

3. Directors are required to acquire a shareholding of at least one year’s base fees over a reasonable time.

4. Includes vested but unexercised rights granted under the CEO’s fixed equity arrangement as these are no longer subject to forfeiture and can be converted into

ordinary shares with nil consideration.

5. Opening balance shown refers to balance on commencement as KMP.

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Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

Section 6. KMP statutory disclosures

6.1 Executive KMP remuneration

Details of the nature and amount of each element of remuneration for the Executive KMP are set out in the table below. Remuneration outcomes
presented in these tables are calculated with reference to the Corporations Act 2001 and relevant Australian Accounting Standards for FY2023
rather than the basis of take‑home pay.

Short‑term employee benefits

Post‑
employ‑
ment
benefits

Base
(Fixed)
Pay
$000

Cash STI
Payment1
$000

Other
Benefits2
$000

Other
Long‑
Term
Benefits3
$000

Super‑
annuation
Benefits
$000

Termi‑
nation
Benefits
$000

Total
excluding
SBP*
Expense
$000

SBP
Expense4, 5
$000

Total
$000

Current Executive KMP

Sanjeev Gandhi

2023

2022

Kim Kerr6

2023

2022

Leah Barlow6

2023

2022

Angus Melbourne

2023

2022

1,434.2

1,299.0

1,400.0

1,057.4

60.3

133.3

749.8

514.2

–

761.7

181.2

904.6

895.8

570.7

121.1

639.0

603.4

12.3

–

28.8

11.0

6.6

15.3

–

20.7

–

25.8

–

25.2

–

25.8

6.3

25.8

24.0

Total Current Executive KMP

2023

2022

3,850.3

3,022.9

2,477.0

1,781.9

108.0

159.6

20.7

–

102.6

30.3

Former Executive KMP

Christopher Davis7

2023

2022

Total

2023

2022

22.0

888.5

–

273.8

9.1

4.6

3,872.3

3,022.9

3,365.5

2,055.7

117.1

164.2

0.5

25.0

21.2

25.0

0.6

24.0

103.2

54.3

–

2,819.3

2,714.8

5,534.1

2,590.7

1,488.4

4,079.1

1,301.5

282.4

1,583.9

–

1,407.7

326.8

1,734.5

319.6

30.3

349.9

1,576.0

1,538.5

714.8

300.6

2,290.8

1,839.1

7,104.5

4,038.8

11,143.3

4,448.8

1,819.3

6,268.1

32.2

–

32.2

1,215.9

142.4

1,358.3

7,136.7

4,038.8

11,175.5

5,664.7

1,961.7

7,626.4

* Share‑based payment (SBP).

1. Cash STI Payment includes payments relating to FY2023 performance accrued but not paid until FY2024.

2. These benefits include car parking, medical and insurance costs, relocation or assignment related expenses including reimbursement of accommodation,

health insurance and taxation services, and movements in annual leave accrual (inclusive of any applicable fringe benefits tax). A negative balance may appear
where the leave accrual has decreased from the prior year.

3. This benefit includes the movement in long service leave accrual.

4. This includes the value of Executive LTI awards calculated under AASB 2 Share-based Payment to Executives which vest over three years. Value only accrues to

the Executive when performance conditions have been met. The share‑based payment expense represents the amount required under Accounting Standards to
be expensed during the year in respect of current and past long‑term incentive allocations to Executives. These amounts are therefore not amounts received by
Executives during the year nor may they be payable to the Executive at any other time if performance hurdles are not met. The mechanism which determines
whether LTI awards vest in the future is described in Section 3.1. Where a negative SBP Expense is shown, this represents a write‑back of a previous share‑based
payment accrual based on a revised estimate of performance conditions being met.

5. Under AASB 2 Share-based Payment, STI paid to Executives as deferred equity is accounted for as a share‑based payment and expensed over two years.

Accordingly, 50% of the value of deferred equity is included in the Executives share‑based payment expense in the relevant performance year with the remainder
included in the subsequent year. The SBP Expense amounts for 2022 did not appropriately reflect the prior year deferred equity component of the STI and have
been restated in the table above.

6. Remuneration for 2022 for Leah Barlow and 2023 for Kim Kerr relate to their Executive KMP periods only.

7. Christopher Davis ceased to be KMP on 10 October 2022. Remuneration for 2023 therefore reflects his Executive KMP period only.

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REMUNERATION REPORT (CONTINUED)

6.2 Summary of awards held under Orica’s Executive equity arrangements

Details of LTIP performance rights, CEO restricted rights and deferred shares awarded under the STI plan are set out in the table below.

For the year ended
30 September 2023

Grant date

Opening
balance

Granted
during
FY2023

Vested

Lapsed

Closing
balance

Value of
equity
instruments
included in
compen‑
sation
for the year
$

Fair
value of
instruments
at grant
date
$

19,685

Current Executive KMP

Sanjeev Gandhi

FY2023 Fixed Equity Rights1

2 Dec 22

FY2023 LTIP Rights

18 Jan 23

–

FY2022 LTIP Rights

17 Jan 22

224,719

FY2021 LTIP Rights

3 Feb 21

70,629

FY2022 STI Deferred Shares

2 Dec 22

Kim Kerr

FY2023 LTIP Rights

18 Jan 23

Leah Barlow

FY2023 LTIP Rights

18 Jan 23

FY2022 STI Deferred Shares2

2 Dec 22

Angus Melbourne

FY2023 LTIP Rights

FY2022 LTIP Rights

FY2021 LTIP Rights

FY2020 LTIP Rights

18 Jan 23

17 Jan 22

3 Feb 21

10 Jan 20

–

72,951

64,965

46,370

223,097

–

69,383

62,992

12,425

73,543

–

300,000

223,097

2,247,700

544,897

224,719

1,902,244

691,725

70,629

949,960

–

69,383

1,057,400

528,700

62,992

634,644

153,853

62,992

12,425

634,644

153,853

189,371

30,262

73,543

72,951

64,965

740,943

617,528

873,779

179,623

224,555

–

46,370

–

895,405

–

FY2022 STI Deferred Shares

2 Dec 22

–

19,796

–

19,796

301,694

150,847

1. A grant of restricted rights was made to Sanjeev Gandhi in relation to his FY2023 fixed equity component of remuneration. 11 of the 12 tranches vested during

FY2023 (in relation to service from 1 October to 31 August 2023) with the remaining tranche vesting on 1 October 2023 (in relation to service from 1 September
to 30 September 2023).

2. Value of equity instruments included in compensation for the year for Leah Barlow relates only to her KMP period (from 1 July 2022).

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Orica LimitedAnnual Report 2023REMUNERATION REPORT (CONTINUED)

The total number of rights and the fair value of rights issued under the LTI are:

Grant date

Vesting date

Number of
rights issued

Number of
rights held at
30 September
2023

Number of
rights held at
30 September
2022

Number of
participants at
30 September
2023

Number of
participants at
30 September
2022

Fair value
of rights
at grant date
$

31 Jul 231

18 Jan 23

30 Nov 25

7,717

1,120,287

1,058,538

18 Jan 232

30 Nov 25

849,690

–

29 Jul 221

17 Jan 22

30 Nov 24

17 Jan 222

30 Nov 24

30 Jul 211

3 Feb 21

3 Feb 212

10 Jan 20

30 Nov 23

30 Nov 22

10 Jan 202

30 Nov 22

23,378

1,061,048

905,498

1,005,830

733,498

36,834

1,226,741

776,085

939,811

507,595

664,100

733,498

24,643

813,468

379,014

–

24,643

893,305

440,815

689,436

267,429

The assumptions underlying the rights valuations are:

256

223

262

–

86,430

12,547,214

8,560,627

219,870

244

9,979,156

286

281

6,209,061

535,566

17,836,814

10,438,343

19,623,254

9,801,689

Grant date

31 Jul 231

18 Jan 23

18 Jan 232

29 Jul 221

17 Jan 22

17 Jan 222

30 Jul 211

3 Feb 21

3 Feb 212

10 Jan 20

10 Jan 202

Price of
Orica Shares
at grant date
$

Expected
volatility in
share price
%

Dividends
expected on
shares
%

Risk free
interest
rate
%

Fair value
per right
RONA
$

Fair value
per right
rTSR
$

15.75

15.03

16.78

13.38

12.39

15.79

22.71

30.0

22.5

20.0

2.96

3.00

3.12

1.26

0.11

0.79

13.83

12.44

12.31

11.08

14.54

13.45

20.88

19.31

8.57

7.71

6.50

5.85

–

1. A supplementary LTI offer was made in July 2021, July 2022 and July 2023 to selected senior management who joined Orica after the grant date of the main offer
in February 2021, January 2022 and January 2023. No supplementary offer was made in 2020. The terms and conditions of the supplementary offer are the same
as the main offer.

2. Under the Executive LTI plan, performance rights granted are subject to either a single or dual performance condition(s), with a two‑year holding lock applying to

shares acquired following vesting. A discount to the fair value has been made to reflect lack of marketability during this period.

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6.3 Non‑executive Director remuneration

Details of Non‑executive Directors’ remuneration are set out in the following table:

Short‑term employee benefits

Post‑
employment
benefits

Directors
fees
$000

Committee
fees
$000

Other
benefits1
$000

Super‑
annuation
$000

Total
$000

510.0

177.0

126.2

–

177.0

124.1

–

196.0

191.2

177.0

88.5

177.0

1,664.3

1,320.7

44.3

177.0

44.3

177.0

1,752.9

1,674.7

–

61.9

45.0

15.9

–

67.5

30.0

–

67.5

39.4

1.9

52.5

67.5

334.7

249.4

16.9

67.5

11.3

45.0

362.9

361.9

6.5

0.6

6.0

–

18.0

–

30.0

12.0

18.0

–

6.0

–

6.0

12.0

27.0

12.0

117.5

36.6

–

6.0

9.0

123.5

45.6

25.8

24.0

25.2

22.5

15.2

–

25.7

24.0

9.7

–

6.7

9.8

24.1

9.3

24.3

24.0

156.7

113.6

6.3

24.0

6.3

22.5

169.3

160.1

542.3

534.6

270.1

244.5

175.3

–

300.2

280.5

181.8

–

276.2

268.5

246.5

111.7

280.8

280.5

2,273.2

1,720.3

67.5

268.5

67.9

253.5

2,408.6

2,242.3

Current Directors

Malcolm Broomhead, Chairman

2023

2022

John Beevers

2023

2022

Mark Garrett2

2023

2022

Denise Gibson

2023

2022

Vanessa Guthrie2, 3

2023

2022

Karen Moses3

2023

2022

Gordon Naylor

2023

2022

Gene Tilbrook

2023

2022

Total Current Directors

2023

2022

Former Directors

Maxine Brenner4

2023

2022

Boon Swan Foo4

2023

2022

Total

2023

2022

1. These benefits include travel allowances and car parking benefits.

2. Mark Garrett and Vanessa Guthrie were appointed to the Board during FY2023.

3. Vanessa Guthrie elected not to receive superannuation contributions from 1 July 2023 to 30 September 2023. Karen Moses elected not to receive superannuation
contributions from 1 July 2022 to 30 June 2023. Superannuation contributions were received in accordance with statutory requirements for the remaining period.

4. Maxine Brenner and Boon Swan Foo retired from the Board in December 2022.

109

Orica LimitedAnnual Report 2023
REMUNERATION REPORT (CONTINUED)

Rounding

The amounts shown in this report and in the financial statements have been rounded off, except where otherwise stated, to the nearest tenth of
a million dollars, the Company being in a class specified in the ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191
dated 24 March 2016.

The Directors’ Report is signed on behalf of the Board in accordance with a resolution of the Directors of Orica Limited.

M W Broomhead
Chairman

Dated at Melbourne 8 November 2023

S Gandhi
Managing Director and Chief Executive Officer

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LEAD AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001

To the Directors of Orica Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Orica Limited for the
financial year ended 30 September 2023 there have been:

no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and

no contraventions of any applicable code of professional conduct in relation to the audit.

ii.

KPM_INI_01

PAR_SIG_01

PAR_NAM_01

PAR_POS_01

PAR_DAT_01

PAR_CIT_01

KPMG

Gordon Sangster
Partner
Melbourne
8 November 2023

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

111

Orica LimitedAnnual Report 2023

FINANCIAL REPORT

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Financial Report

Other Information

INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER

Continuing operations

Sales revenue

Other income

Raw materials and inventories

Employee benefits expense

Purchased services and other expenses

Depreciation and amortisation expense

Outgoing freight

Repairs and maintenance

Loss on sale of Türkiye businesses

Loss on exit of Venezuela business

Axis Group acquisition earnout

EMEA impairment expense

Loss on sale of JSC “Orica CIS”

Gain on sale of Nitro Consult AB

Share of net profit of equity accounted investees

Total

Profit from operations

Net financing costs

Financial income

Financial expenses

Net financing costs

Profit before income tax expense from continuing operations

Income tax expense

Profit after tax from continuing operations

Discontinued operations

Net loss on sale of Minova after tax

Profit after tax from Minova

Loss after tax from discontinued operations

Net profit for the year

Net profit for the year attributable to:

Shareholders of Orica Limited

Non‑controlling interests

Net profit for the year

Earnings per share attributable to ordinary shareholders of Orica Limited:

From continuing operations:

Basic earnings per share

Diluted earnings per share

Total attributable to ordinary shareholders of Orica Limited

Basic earnings per share

Diluted earnings per share

Consolidated

Notes

2023
$m

2022
$m

(1b)

(1d)

(1b)

(1e)

(13)

(3b)

(11)

(1e)

(15)

(2)

7,945.3

9.2

(4,226.5)

(1,423.6)

(682.8)

(392.5)

(351.1)

(202.2)

(73.5)

(71.1)

(26.6)

–

22.3

(7,427.6)

526.9

9.0

(152.7)

(143.7)

383.2

(131.8)

251.4

–

251.4

295.7

(44.3)

251.4

7,096.4

31.8

(3,909.5)

(1,223.7)

(622.0)

(385.8)

(307.1)

(156.1)

–

(167.9)

(40.6)

19.5

39.8

(6,753.4)

374.8

2.1

(102.4)

(100.3)

274.5

(140.9)

133.6

(93.7)

9.1

(84.6)

49.0

60.1

(11.1)

49.0

cents

65.1

64.5

65.1

64.5

35.1

35.0

14.5

14.4

The income statement is to be read in conjunction with the accompanying notes to the financial statements.

113

Orica LimitedAnnual Report 2023
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER

Net profit for the year

Other comprehensive income

Items that may be reclassified subsequently to income statement:

Exchange differences on translation of foreign operations

Exchange gain on translation of foreign operations, net of tax

Net loss on hedge of net investments in foreign subsidiaries, net of tax

Currency translation on companies disposed of, transferred to the income
statement net of tax

Net exchange differences on translation of foreign operations

Sundry items:

Net (loss)/gain on cash flow hedges, net of tax

Changes in the fair value of financial assets through other comprehensive income

Items that will not be reclassified subsequently to income statement:

Net actuarial gain on defined benefit obligations, net of tax

Other comprehensive income for the year

Total comprehensive income for the year

Attributable to:

Shareholders of Orica Limited

Non‑controlling interests

Total comprehensive income for the year

Notes

Consolidated

2023
$m

251.4

2022
$m

49.0

(11c)

(15)

(11c)

91.9

(6.0)

129.2

215.1

(10.4)

15.0

0.6

220.3

471.7

440.9

30.8

471.7

164.2

(64.5)

135.3

235.0

12.1

–

65.9

313.0

362.0

372.2

(10.2)

362.0

The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes to the financial statements.

114

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

BALANCE SHEET
AS AT 30 SEPTEMBER

Current assets

Cash and cash equivalents

Trade receivables

Other receivables

Inventories

Other assets

Total current assets

Non‑current assets

Other receivables

Equity accounted investees

Property, plant and equipment

Intangible assets

Deferred tax assets

Other assets

Total non‑current assets

Total assets

Current liabilities

Trade payables

Other payables

Interest bearing liabilities

Provisions

Other liabilities

Total current liabilities

Non‑current liabilities

Other payables

Interest bearing liabilities

Provisions

Deferred tax liabilities

Other liabilities

Total non‑current liabilities

Total liabilities

Net assets

Equity

Ordinary shares

Reserves

Retained earnings

Total equity attributable to ordinary shareholders of Orica Limited

Non‑controlling interests

Total equity

Consolidated

Notes

2023
$m

2022
$m

(5)

(13)

(7)

(8)

(11d)

(5)

(3a)

(6)

(3a)

(6)

(11d)

1,152.1

1,255.3

759.2

150.6

868.1

165.1

903.1

126.8

872.6

151.7

3,095.1

3,309.5

54.6

326.5

3,360.3

1,406.4

433.0

91.3

5,672.1

8,767.2

984.5

564.9

72.8

251.9

85.7

56.6

323.8

3,082.3

1,142.9

395.6

57.1

5,058.3

8,367.8

1,091.7

385.6

713.3

229.1

60.5

1,959.8

2,480.2

40.0

2,299.4

310.6

46.8

58.8

2,755.6

4,715.4

4,051.8

31.2

1,693.7

329.8

47.2

56.5

2,158.4

4,638.6

3,729.2

(4a)

3,421.2

3,389.7

(240.6)

808.1

(397.0)

693.1

3,988.7

3,685.8

63.1

43.4

4,051.8

3,729.2

The Balance Sheet is to be read in conjunction with the accompanying notes to the financial statements.

115

Orica LimitedAnnual Report 2023STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER

Ordinary
shares
$m

Retained
earnings
$m

Foreign
currency
translation
reserve
$m

Cash flow
hedge
reserve
$m

Other
reserves
$m

Non‑
controlling
interests
$m

Total
$m

Total
equity
$m

2022

Balance at 1 October 2021

2,686.1

687.4

(519.3)

(16.6)

(111.3)

2,726.3

Net profit/(loss) for the year

Other comprehensive income

Total comprehensive
income/(loss) for the year

Transactions with owners,
recorded directly in equity

Total changes in contributed
equity, net of costs (note 4a)

Share‑based payments expense

Share‑based payments settlement

Dividends/distributions (note 4c)

Dividends declared/paid to
non‑controlling interests

–

60.1

65.9

–

234.1

–

12.1

126.0

234.1

12.1

703.6

–

(120.3)

–

(3.3)

8.0

(0.7)

–

60.1

312.1

66.1

(11.1)

0.9

2,792.4

49.0

313.0

372.2

(10.2)

362.0

700.3

(5.5)

694.8

8.0

(0.7)

(120.3)

–

8.0

(0.7)

(120.3)

–

(7.0)

Balance at the end of the year

3,389.7

693.1

(285.2)

(4.5)

(107.3)

3,685.8

43.4

3,729.2

2023

Balance at 1 October 2022

3,389.7

Net profit/(loss) for the year

Other comprehensive income/(loss)

Total comprehensive
income/(loss) for the year

Transactions with owners,
recorded directly in equity

Total changes in contributed
equity, net of costs (note 4a)

Share‑based payments expense

Share‑based payments settlement

Dividends/distributions (note 4c)

Dividends declared/paid to
non‑controlling interests

–

31.5

–

693.1

295.7

(285.2)

(4.5)

(107.3)

3,685.8

43.4

3,729.2

–

0.6

140.0

(10.4)

15.0

295.7

145.2

(44.3)

75.1

251.4

220.3

296.3

140.0

(10.4)

15.0

440.9

30.8

471.7

–

(181.3)

–

13.7

(1.9)

–

31.5

13.7

(1.9)

(181.3)

–

(2.3)

–

29.2

13.7

(1.9)

(181.3)

(8.8)

63.1

(8.8)

4,051.8

Balance at the end of the year

3,421.2

808.1

(145.2)

(14.9)

(80.5)

3,988.7

The Statement of Changes in Equity is to be read in conjunction with the accompanying notes to the financial statements.

116

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER

Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees

Interest received

Interest paid

Dividends received

Other operating income received

Net income taxes paid

Net cash flows from operating activities

Cash flows from investing activities

Payments for property, plant and equipment

Payments for intangibles

Payments for purchase of investments

Proceeds from sale of property, plant and equipment

Proceeds from other advances in relation to property, plant and equipment

Payments for purchase of businesses/controlled entities

Proceeds from sale of businesses, net of cash disposed and disposal costs

Proceeds from sale of business to non‑controlling interests

Net cash flows used in investing activities

Cash flows from financing activities

Proceeds from borrowings

Repayment of borrowings

Dividends paid – Orica ordinary shares

Dividends paid – non‑controlling interests

Principal portion of lease payments

Payment for purchase of ordinary shares, net of costs

Proceeds from issue of ordinary shares, net of costs

Net cash flows (used in)/from financing activities

Net (decrease)/increase in cash held

Cash at the beginning of the period

Effects of exchange rate changes on cash

Cash at the end of the period

Consolidated

2023
$m
Inflows/
(Outflows)

2022
$m
Inflows/
(Outflows)

Notes

(3c)

(14)

(15)

(4c)

9,069.5

(7,910.6)

8.7

(139.0)

22.5

17.4

(169.8)

898.7

(418.1)

(21.0)

(19.8)

11.4

50.0

(275.4)

8.2

–

(664.7)

1,625.9

(1,741.9)

(140.9)

(7.2)

(73.3)

(13.5)

–

(350.9)

(116.9)

1,255.3

13.7

1,152.1

8,087.5

(7,565.8)

2.2

(113.0)

23.2

34.4

(106.2)

362.3

(319.1)

(30.2)

–

10.4

–

(14.4)

123.6

0.5

(229.2)

1,706.1

(1,706.3)

(90.6)

(7.0)

(60.6)

–

673.9

515.5

648.6

593.7

13.0

1,255.3

The Statement of Cash Flows is to be read in conjunction with the accompanying notes to the financial statements. The statement above includes
discontinued operations for financial year 2022 until completion date of the sale, refer to note 15 for further details.

117

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER

Section A. Financial performance

Segment report

Earnings per share (EPS)

Section B. Capital management

Net debt and net financing costs

Contributed equity and reserves

Section C. Operating assets and liabilities

5. Working capital

Provisions

Property, plant and equipment

Intangible assets

Impairment testing of assets

Section D. Managing Financial Risks

10.

Financial risk management

Section E. Taxation

11.

Taxation

Section F. Group structure

12.

Investments in controlled entities

13.

Equity accounted investees and joint operations

14.

Businesses and non‑controlling interests acquired

15.

Businesses disposed and discontinued operations

16.

Parent Company disclosure – Orica Limited

17. Deed of Cross Guarantee

Section G. Reward and recognition

18.

Employee share plans and remuneration

19. Defined benefit obligations

Section H. Other

20. Contingent liabilities

21. Auditor’s remuneration

22.

Events subsequent to balance date

23.

List of controlled entities

24. New accounting policies and accounting standards

154

156

158

162

164

165

168

169

170

172

120

126

127

130

132

134

136

138

139

142

149

118

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Basis of preparation

This is a general purpose Financial Report which has been prepared by a for‑profit entity in accordance with Australian Accounting Standards
adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001 and complies with the International Financial
Reporting Standards (IFRS) adopted by the International Accounting Standards Board.

It has been prepared on a historical cost basis, except for derivative financial instruments, superannuation commitments and investments in
financial assets which have been measured at fair value.

The financial statements are presented in Australian dollars with all amounts rounded off, except where otherwise stated, to the nearest tenth
of a million dollars, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 dated 24 March 2016.

Orica’s Directors have included information in this report that they deem to be material and relevant to the understanding of the consolidated
financial statements. Where appropriate, comparative information has been reclassified to conform to changes in presentation and to
enhance comparability.

Disclosure may be considered material and relevant if the dollar amount is significant due to size or nature, or the information is important
to understand the:

• Group’s current year results

• impact of significant changes in Orica’s business

• aspects of the Group’s operations that are important to future performance.

Except as described in note 24, the financial statements have been prepared using consistent accounting policies in line with those of the
previous financial year and corresponding interim reporting period.

Significant accounting policies that apply to the overall financial statements

Foreign currencies

Functional and Presentation Currency

The Company’s functional and presentation currency is Australian dollars. Each entity in the Group determines its own functional currency
and items included in the financial statements of each entity are measured using that functional currency.

Transactions and Balances

Transactions in currencies other than the functional currency of the Company or entity concerned are recorded using the exchange rate on the
date of the transaction. Monetary assets and liabilities that are denominated in foreign currencies at the balance date are retranslated at closing
exchange rates. Non‑monetary assets are not retranslated unless they are carried at fair value. Gains and losses arising on the retranslation of
monetary assets and liabilities are included in the income statement, except where the application of hedge accounting requires inclusion in other
comprehensive income (refer to note 10).

Consolidation of Group Entities

On consolidation, assets and liabilities of foreign operations are translated into Australian dollars at the closing rate at balance date. The results of
foreign operations are translated into Australian dollars at average exchange rates for the period where these do not materially differ from rates
applicable on the date of the transaction. Foreign exchange differences arising on the retranslation of foreign operations are recognised directly
in a separate component of equity.

Critical accounting judgements and estimates

Application of the Group accounting policies requires management to make judgements, and to apply estimates and assumptions to
future events. The areas involving a higher degree of judgement or complexity, and which are material to the report, are highlighted
in the following notes:

Note 3
Note 5
Note 6
Note 7
Note 8

Net debt and net financing costs
Working capital
Provisions
Property, plant and equipment
Intangible assets

Note 9
Note 11
Note 14
Note 19
Note 20

Impairment testing of assets
Taxation
Businesses and non‑controlling interests acquired
Defined benefit obligations
Contingent liabilities

119

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section A. Financial performance

A key element of the Group’s strategy is to create sustainable shareholder value. This section highlights the results and performance
of the Group for the year ended 30 September 2023.

1. Segment report

(a) Identification and description of segments

Orica’s reportable segments are based on internal reporting to the Group’s Chief Operating Decision Maker (the Group’s Managing Director
and Chief Executive Officer).

Effective 1 October 2022, Orica made changes to its segment reporting to provide transparency of the growing Digital Solutions vertical,
in line with Orica’s refreshed strategy.

The new Digital Solutions segment comprises:

• Orebody Intelligence (OBI) businesses (Axis Group, HIG and RIG)

• Blast Design and Execution (BDE) solutions

• GroundProbe (previously reported within the Orica Monitor segment).

HIG and RIG were previously reported in Australia Pacific & Asia, while BDE was reported across Australia Pacific & Asia, North America,
Latin America, Europe, Middle East & Africa and Global Support.

The 2022 financial year segments have been restated to reflect the new segment reporting structure. OBI and BDE results prior to the
2022 financial year are considered to be immaterial and have not been restated.

There is no change to the Orica Group earnings and balance sheet as previously reported.

Orica Group

Manufacture and supply
of commercial explosives
and blasting systems

Development, manufacture
and deployment of advanced
software, sensors and
end‑to‑end data science
solutions to the
mining industry

Corporate and unallocated
support costs

Digital Solutions

Global Support

Australia,
Pacific &
Asia

Latin
America

North
America

Europe,
Middle East
& Africa

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Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. Segment report (continued)

(b) Reportable segments

Australia
Pacific
& Asia

North
America

Latin
America

Europe,
Middle
East &
Africa

Digital
Solutions

Global
Support

Elimin‑
ations

Total
Conti‑
nuing
Oper‑
ations

Discont‑
inued
Oper‑
ations

Elimin‑
ations

Consoli‑
dated

3,168.8

1,744.6

1,733.1

1,087.1

211.7

145.7

116.2

30.4

24.3

0.4

3,314.5

1,860.8

1,763.5

1,111.4

212.1

Other income (refer to note 1d)1

4.0

6.8

(7.6)

7.1

(1.1)

Total revenue and other income

3,318.5

1,867.6

1,755.9

1,118.5

211.0

–

7,945.3

(317.0)

–

(317.0)

7,945.3

–

9.2

(317.0)

7,954.5

–

7,945.3

–

7,945.3

9.2

7,954.5

458.0

149.7

54.2

57.6

54.3

(75.7)

–

698.1

–

698.1

2023
$m

Revenue

External sales

Inter‑segment sales

Total sales revenue

Results before individually
significant items

Profit/(loss) before financing
costs and income tax

Financial income

Financial expenses

Profit before income tax expense

Income tax expense

Profit after income tax expense

Less: Profit attributable to
non‑controlling interests

Profit after income tax expense
before individually significant
items attributable to shareholders
of Orica Limited

Individually significant items
(refer to note 1e)

Gross individually significant items

Tax on individually significant items

Net individually significant items
attributable to non‑controlling
interests

Individually significant items
attributable to shareholders
of Orica Limited

Profit for the year attributable
to shareholders of Orica Limited

–

(71.1)

33.6

(73.5)

(26.6)

0.8

–

18.4

45.1

–

(19.1)

(27.6)

(26.6)

–

Segment assets

Segment liabilities

3,682.7

1,594.7

1,220.7

1,138.5

405.9

425.6

Equity accounted investees

73.6

251.0

–

Acquisitions of PPE and intangibles
(excluding right of use assets)

Depreciation and amortisation

Share of net (loss)/profit of equity
accounted investees

235.0

175.6

67.5

74.5

48.7

50.3

751.4

247.4

0.5

40.2

26.2

695.8

821.9

110.4

2,387.6

–

1.4

44.1

42.6

3.6

23.3

(16.4)

38.7

–

1. Includes foreign currency gains/(losses) in various reportable segments.

121

9.0

(152.7)

554.4

(166.2)

388.2

(19.2)

369.0

–

(171.2)

34.4

–

63.5

–

(73.3)

295.7

8,767.2

4,715.4

326.5

439.1

392.5

22.3

–

(171.2)

34.4

–

63.5

–

(73.3)

–

8,767.2

4,715.4

326.5

439.1

392.5

22.3

–

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. Segment report (continued)

(b) Reportable segments

2022
Restated1
$m

Revenue

External sales

Inter‑segment sales

Total sales revenue

Australia
Pacific
& Asia

North
America

Latin
America

Europe,
Middle
East &
Africa

Digital
Solutions

Global
Support

Elimin‑
ations

Total
Conti‑
nuing
Oper‑
ations

Discont‑
inued
Oper‑
ations

Elimin‑
ations

Consoli‑
dated

2,706.5

1,567.4

1,650.3

1,025.6

146.6

153.4

103.1

34.9

25.9

0.2

2,859.9

1,670.5

1,685.2

1,051.5

146.8

–

11.4

–

7,096.4

231.1

(317.5)

–

(317.5)

7,096.4

231.1

–

31.8

(0.8)

(317.5)

7,128.2

230.3

–

7,327.5

–

7,327.5

31.0

7,358.5

Other income (refer to note 1d) 2

17.2

8.3

1.2

(6.9)

0.6

Total revenue and other income

2,877.1

1,678.8

1,686.4

1,044.6

147.4

Results before individually
significant items

Profit/(loss) before financing
costs and income tax

Financial income

Financial expenses

Profit before income tax expense

Income tax expense

Profit after income tax expense

Less: Profit attributable to
non‑controlling interests

Profit after income tax expense
before individually significant
items attributable to shareholders
of Orica Limited

Individually significant items
(refer to note 1e)

Gross individually significant items

Tax on individually significant items

Net individually significant items
attributable to non‑controlling
interests

Individually significant items
attributable to shareholders
of Orica Limited

Profit for the year attributable
to shareholders of Orica Limited

Segment assets

Segment liabilities

Equity accounted investees

Acquisitions of PPE and intangibles
(excluding right of use assets)

Depreciation and amortisation

Share of net profit of equity
accounted investees

369.6

135.1

53.6

46.5

26.7

(67.7)

–

563.8

14.7

–

578.5

2.2

(102.5)

478.2

(154.0)

324.2

(7.2)

317.0

–

(208.5)

7.5

19.5

–

18.3

–

(182.7)

19.5

–

(189.0)

7.5

(85.0)

(8.7)

–

(274.0)

(1.2)

–

18.3

–

18.3

–

(163.2)

(93.7)

–

(256.9)

3,586.9

1,468.1

1,323.6

732.1

376.0

881.1

1,069.4

90.0

322.0

231.9

519.5

222.2

41.2

2,464.3

–

0.5

–

1.4

144.2

181.4

64.6

58.7

32.0

46.1

27.3

31.0

40.4

18.5

32.6

50.1

6.0

32.0

–

1.8

–

8,367.8

4,638.6

323.8

341.1

385.8

–

8.2

–

39.8

–

60.1

8,367.8

4,638.6

323.8

349.3

385.8

39.8

–

1. Restated for change of segment reporting, refer to note 1(a) for details.

2. Includes foreign currency gains/(losses) in various reportable segments.

122

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Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. Segment report (continued)

Revenue has been disaggregated by the customer site, except for Digital Solutions where revenue represents sales by the Digital Solutions segment.

Copper

Gold

Quarry and Construction

Thermal Coal

Iron Ore

Coking Coal

Future Facing Commodities1

Digital Solutions2

Other1,2

Minova (Discontinued operations)

Total disaggregated revenue

Consolidated

2023
$m

1,894.0

1,654.6

1,127.3

1,101.6

712.1

592.4

295.6

211.7

356.0

–

2022
Restated
$m

1,741.5

1,468.4

934.6

1,121.9

598.9

446.1

272.4

146.6

366.0

231.1

7,945.3

7,327.5

1. Future facing commodities (FFC) include nickel, lithium, lead, and zinc with increasing demand that are essential components of low‑emissions energy technologies.

The 2022 financial year results have been restated to reflect revenue from FFC.

2. Restated for change of segment reporting, refer to note 1(a) for details.

(d) Other income

Other income

Net foreign currency losses

Net gain on sale of property,
plant and equipment

Total other income

Consolidated

2023

2022

Continuing
$m

Discontinued
$m

Consolidated
$m

Continuing
$m

Discontinued
$m

Consolidated
$m

25.2

(21.9)

5.9

9.2

–

25.2

(21.9)

5.9

9.2

39.3

(15.2)

7.7

31.8

0.2

(1.1)

0.1

(0.8)

39.5

(16.3)

7.8

31.0

123

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. Segment report (continued)

(e) Individually significant items

Profit after income tax includes the
following individually significant
items of expense:

Individually significant items
from continuing operations

Loss on sale of Türkiye businesses1

Loss on exit of Venezuela business1

Axis Group acquisition earnout2

Impairment expense3

Loss on sale of JSC “Orica CIS”1

Gain on sale of Nitro Consult AB1

Individually significant items from
continuing operations

Non‑controlling interests in individually
significant items

Individually significant items
attributable to shareholders of
Orica from continuing operations

Loss on sale of Minova

Individually significant items
from discontinued operations

Individually significant items
attributable to shareholders
of Orica

1. Refer to note 15.

2. Refer to note 14.

Consolidated

2023

2022

Gross
$m

Tax
$m

Net
$m

Gross
$m

Tax
$m

Net
$m

(73.5)

(71.1)

(26.6)

–

0.8

33.6

–

(72.7)

(37.5)

(26.6)

–

(167.9)

(40.6)

19.5

–

(1.8)

9.3

–

(169.7)

(31.3)

19.5

(171.2)

34.4

(136.8)

(189.0)

7.5

(181.5)

80.4

(16.9)

63.5

18.3

–

18.3

(90.8)

17.5

(73.3)

–

(170.7)

(85.0)

7.5

(8.7)

(163.2)

(93.7)

(85.0)

(8.7)

(93.7)

(90.8)

17.5

(73.3)

(255.7)

(1.2)

(256.9)

3. The Group have recognised an impairment charge against the assets of the Türkiye and Russia operations in the 2022 financial year, as well as goodwill

in the EMEA segment. Refer to note 9.

Recognition and measurement

Individually significant items are those gains or losses where their nature and or impact is considered material to the Financial Statements.

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1. Segment report (continued)

(f) Geographical segments

The presentation of geographical revenue is based on the geographical location of customers. Segment assets are based on the geographical
location of the assets.

Australia

Peru

United States

Other2

Total

Consolidated

Revenue

Non‑current assets1

2023
$m

2,326.4

1,045.0

689.5

3,884.4

7,945.3

2022
$m

2023
$m

2022
$m

1,969.2

3,022.3

2,586.9

950.8

705.2

3,702.3

7,327.5

315.8

469.6

1,385.1

5,192.8

310.0

419.6

1,304.0

4,620.5

1. Excluding: financial derivatives (included within other assets) and deferred tax assets.

2. Other than Australia, Peru and the United States, sales to other countries are individually less than 10% of the Group’s total revenues.

Recognition and measurement

Revenue is recognised when, or as the Group transfers control of goods or services to a customer at the amount to which the Group expects
to be entitled. If the consideration includes a variable amount (net of trade discounts and volume rebates), the Group estimates the amount of
consideration to which it will be entitled. The majority of the Group’s operations are conducted under Master Service Agreements which require
customers to place orders for goods or services on a periodic basis. The performance obligations are identified at the point that the customer
places the order.

Supply of products and provision of services

Revenue is derived from contractual agreements for either:

• the supply of products, or

• the supply of products and the provision of services.

Contracts for the supply of products are one performance obligation. Contracts for the supply of products and services include one or two
separate performance obligations depending on whether the customer can benefit from the products independently of the services.

Product revenue is recognised when the goods are delivered to the contracted point of delivery as this is the point at which the customer gains
control of the product and the performance obligation is satisfied by the Group.

Service revenue is recognised over time as the customer simultaneously receives and consumes the benefits of the Group’s performance. Where
products and services are combined into one single performance obligation, revenue is recognised over time as the customer simultaneously
receives and consumes the benefits provided by the Group’s performance.

Contracts to provide a designated output

The provision of goods and services in contracts that provide a designated quantity of output results in the identification of a single performance
obligation to deliver an integrated service to the customer. Revenue from this performance obligation is recognised over time as the customer
simultaneously receives and consumes the benefits of the Group’s performance.

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Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2. Earnings per share (EPS)

(i) As reported in the income statement

Earnings used in the calculation of basic and diluted EPS
attributable to ordinary shareholders of Orica Limited

Profit after tax from continuing operations

Loss after tax from discontinued operations

Less: Net Loss for the year attributable to non‑controlling interests

Net profit for the year attributable to shareholders of Orica Limited

Weighted average number of shares used in the calculation:

Number for basic earnings per share

Effect of dilutive share options and rights

Number for diluted earnings per share

The weighted average number of options and rights that have
not been included in the calculation of diluted earnings per share

From continuing operations attributable to ordinary shareholders of Orica Limited

Basic earnings per share

Diluted earnings per share

Total attributable to ordinary shareholders of Orica Limited

Basic earnings per share

Diluted earnings per share

(ii) Adjusted for individually significant items

Earnings used in the calculation of basic and diluted EPS adjusted for individually
significant items attributable to ordinary shareholders of Orica Limited

Profit after income tax expense before individually significant items
attributable to shareholders of Orica Limited (refer to note 1b)

From continuing operations before individually significant
items attributable to ordinary shareholders of Orica Limited

Basic earnings per share1

Diluted earnings per share1

Total attributable to ordinary shareholders of Orica Limited before individually
significant items attributable to ordinary shareholders of Orica Limited

Basic earnings per share1

Diluted earnings per share1

Consolidated

2023
$m

251.4

–

(44.3)

295.7

2022
$m

133.6

(84.6)

(11.1)

60.1

Number of shares

454,174,130

414,802,433

3,927,977

2,569,554

458,102,107

417,371,987

798,070

1,511,936

Cents
per share

65.1

64.5

65.1

64.5

35.1

35.0

14.5

14.4

Consolidated

2023
$m

2022
$m

369.0

317.0

Cents
per share

81.2

80.5

81.2

80.5

74.4

74.0

76.4

76.0

1. Earnings per share before individually significant items is a non‑IFRS measure. Management excludes individually significant items from the calculation in order

to enhance the comparability from year‑to‑year and provide investors with further clarity in order to assess the underlying performance of operations.

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Other Information

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Section B. Capital management

Orica’s objectives when managing capital (net debt and total equity) are to safeguard the Group’s ability to continue as a going concern
and to ensure the capital structure enhances, protects and balances financial flexibility against minimising the cost of capital. This section
outlines the principal capital management initiatives that have been undertaken, current year drivers of the Group’s cash flows, as well as
the key operating assets used and liabilities incurred to support financial performance.

3. Net debt and net financing costs

In order to maintain an appropriate capital structure, the Group may adjust the dividend paid to shareholders, utilise a DRP, return capital to
shareholders such as through a share buy‑back, or issue new equity, in addition to incurring an appropriate level of borrowings. Orica maintains
a dividend policy and expects the total dividend payout ratio to be in the range of 40‑70 per cent of underlying earnings. It is also expected that
the total dividend paid each year will be weighted towards the final dividend.

Orica monitors debt capacity against a number of key credit metrics aligned to debt covenants, principally the gearing ratio (net debt excluding
lease liabilities divided by net debt excluding lease liabilities plus equity) and the interest cover ratio (EBIT excluding individually significant items,
divided by net financing costs excluding lease interest). These ratios, together with performance measure criteria determined by S&P Global
Ratings (S&P), are monitored in support of maintaining an investment grade credit rating, which enables access to borrowings from a range of
sources. S&P’s key measures include Funds from Operations (FFO)/Debt and Debt/EBITDA. Of note, S&P’s rating methodology adjusts Orica’s net
debt to incorporate post‑retirement benefit obligations, asset retirement obligations (i.e. environmental and decommissioning provisions) and
leases. Orica’s debt covenants are exclusive of these items.

The Group’s target range for gearing is 30‑40 per cent and the interest cover financial covenant is two times or greater. Gearing may move outside
of the target range for relatively short periods of time after major acquisitions or other significant transactions.

In addition, the gearing and interest cover ratios are monitored to ensure an adequate buffer against covenant levels applicable to the various
financing facilities.

The gearing ratio is calculated as follows:

Interest bearing liabilities excluding lease liabilities – continuing operations (refer to note 3a)

less cash and cash equivalents – continuing operations

Total net debt

Total equity

Total net debt and equity

Gearing ratio (%)

The interest ratio is calculated as follows:

Consolidated

2023
$m

2022
$m

2,075.4

(1,152.1)

923.3

4,051.8

4,975.1

18.6%

2,167.5

(1,255.3)

912.2

3,729.2

4,641.4

19.7%

Profit before financing costs and income tax (excluding individually significant items – refer to note 1b)

698.1

578.5

Net financing costs excluding lease interest (note 3b)

128.2

88.5

Interest cover ratio (times)

5.4

6.5

127

Orica LimitedAnnual Report 2023Notes to the FiNaNcial statemeNts (coNtiNUeD)

3. Net debt and net financing costs (continued)

(a) Interest bearing liabilities

Current

Unsecured

Private Placement debt1

Bank loans1

Lease liabilities

Total

Non‑current

Unsecured

CEFC1, 2

Other loans

Lease liabilities

Total

Opening
Balance
$m

Non‑cash
movements
$m

Net cash
movements
$m

Closing
Balance
$m

655.8

–

57.5

713.3

(2.2)

4.4

104.1

106.3

6.4

0.4

182.0

1,693.7

–

42.0

63.7

(653.6)

(4.4)

(88.8)

(746.8)

523.4

16.0

2.6

–

542.0

–

72.8

2,050.0

22.4

3.0

224.0

2,299.4

2,407.0

170.0

(204.8)

2,372.2

Private Placement debt1

1,504.9

21.7

1. Orica Limited provides guarantees on certain facilities, refer to note 16 for further details.

2. Financing from the Clean Energy Finance Corporation (CEFC) for the Kooragang Island Decarbonisation Project.

During the year $656.0 million of US Private Placement debt was repaid, and $526.0 million of longer dated debt was issued into the US Private
Placement bond market.

During the current and prior year, there were no defaults or breaches of covenants on any loans.

(b) Net financing costs

Finance income

Interest income

Total finance income

Finance costs

Interest expense

Lease interest expense from continuing operations

Lease interest expense from discontinued operations

Unwind of/(gain on) discounting of provisions1

Total finance costs (note 15)

Net financing costs

Net financing costs excluding lease interest

1. Primarily due to the change in the discount rate applied to measure the Botany groundwater provision.

128

Consolidated

2023
$m

9.0

135.6

15.5

–

1.6

152.7

(143.7)

(128.2)

2022
$m

2.2

105.1

11.6

0.2

(14.4)

102.5

(100.3)

(88.5)

Orica LimitedAnnual Report 2023

Introduction and Overview

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Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3. Net debt and net financing costs (continued)

Reconciliation of profit/(loss) after income tax
to net cash flows from operating activities

Profit/(loss) after income tax expense

Adjusted for the following items:

Depreciation and amortisation expense

Net gain on sale of property, plant and equipment

Impairment expense

Net loss on disposal of controlled entities

Share based payments expense

Share of equity accounted investees net profit after adding back dividends received

Unwinding of discount on provisions

Other

Changes in working capital and provisions excluding the effects of acquisitions
and disposals of businesses/controlled entities:

decrease/(increase) in trade and other receivables

decrease/(increase) in inventories

increase in net deferred taxes

increase in payables and provisions

increase in income taxes payable

Net cash flows from operating activities

Recognition and Measurement

Cash and cash equivalents

Cash includes cash at bank, cash on hand and deposits at call.

Interest bearing liabilities, excluding lease liabilities

Consolidated

Notes

2023
$m

2022
$m

251.4

49.0

(1b)

(1d)

392.5

(5.9)

–

110.2

13.7

0.3

1.6

(11.0)

137.8

22.6

(37.8)

5.5

17.8

898.7

385.8

(7.8)

169.7

105.5

8.0

(16.6)

(14.4)

3.9

(297.2)

(290.3)

(13.8)

239.1

41.4

362.3

Interest bearing liabilities are initially recognised net of transaction costs. Subsequent to initial recognition, interest bearing liabilities are stated
at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the
liabilities on an effective interest basis, unless they are liabilities designated in a fair value relationship in which case they continue to be measured
at fair value (refer to note 10).

Financing costs

Borrowing costs are expensed as incurred unless they relate to qualifying assets where interest on funds are capitalised. Interest income and
interest expense relating to interest rate swaps and cross currency interest rate swaps are presented on a net basis.

Lease liabilities

The Group recognises all lease liabilities and corresponding right of use assets, with the exception of short‑term (12 months or less) and
low‑value leases, on the balance sheet. Lease liabilities are recorded at the present value of fixed payments, variable lease payments that depend
on an index or rate, amounts payable under residual value guarantees and extension options expected to be exercised. Where a lease contains
an extension option which the Group can exercise without negotiation, lease payments for the extension period are included in the liability if
the Group is reasonably certain that it will exercise the option. Variable lease payments not dependent on an index or rate are excluded from
the liability. Lease payments are discounted at the incremental borrowing rate of the lessee unless the rate implicit in the lease can be readily
determined.

Lease liabilities are remeasured when there is a change in future lease payments resulting from a change in an index or rate, or a change in
the assessed lease term. A corresponding adjustment is made to the carrying amount of the right of use asset, or is recorded in profit or loss
if the carrying amount has been reduced to zero.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3. Net debt and net financing costs (continued)

The Group applied judgement to determine the incremental borrowing rates as well as the lease term for some lease contracts that include
extension or termination options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term,
which significantly affects the amount of lease liabilities and right of use assets recognised.

The Group recognises depreciation of the right of use assets and interest on the lease liabilities in the income statement over the lease term.
Repayments of lease liabilities are separated into a principal portion (presented within financing activities) and interest portion (presented within
operating activities) in the cash flow statement.

Expenses relating to short‑term and low‑value leases of $65.6 million (2022: $53.8 million) and variable lease payments not included in lease
liabilities of $167.3 million (2022: $132.2 million) have been recognised in the income statement. Total cash outflow for leases was $321.7 million
(2022: $259.3 million).

Critical accounting judgements and estimates

• Determination of the discount rate to use

• In relation to lease liabilities, determination of whether it is reasonably certain that an extension or termination option will be exercised.

4. Contributed equity and reserves

(a) Contributed equity

Movements in issued and fully paid shares of Orica since 1 October 2021 were as follows:

Shares issued under the Institutional Share Placement, net of costs

9‑Aug‑22

40,625,000

Details

Ordinary shares

Opening balance of shares issued

On market share repurchase

Shares issued under the Orica DRP

Shares issued under Share Purchase Plan

Shares issued under the Orica GEESP1

Balance at the end of the year

Shares issued under the Orica DRP

On market share repurchase

Deferred shares issued to settle Short‑Term Incentive

Shares issued under the Orica GEESP1

Balance at the end of the year

1. General Employee Exempt Share Plan (GEESP).

(b) Reserves
Recognition and measurement
Foreign currency translation reserve

Date

Number
of shares

Issue price
$

1‑Oct‑21

407,513,099

31‑Oct‑21

22‑Dec‑21

8‑Jul‑22

1,317,955

666,029

2‑Sep‑22

2,685,802

30‑Sep‑22

452,807,885

22‑Dec‑22

1,332,377

3‑Jul‑23

1,351,296

14.40

16.19

16.00

15.29

14.97

15.20

2,686.1

(8.4)

18.9

10.8

640.6

41.1

0.6

3,389.7

19.9

20.5

(14.1)

4.6

0.6

30‑Sep‑23

455,491,558

3,421.2

Records the foreign currency differences arising from the translation of foreign operations. The relevant portion of the reserve is recognised
in the income statement when the foreign operation is disposed of.

Cash flow hedge reserve

Represents the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.

Other reserves

Other reserves represent share based payments reserves and equity reserves arising from the purchase of non‑controlling interests, as well as
unrealised gains in fair value of financial assets.

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4. Contributed equity and reserves (continued)

Dividends paid or declared in respect of the year ended 30 September were:

Ordinary shares

interim dividend of 13.0 cents per share, unfranked, paid 8 July 2022

interim dividend of 18.0 cents per share, unfranked, paid 3 July 2023

final dividend of 16.5 cents per share, unfranked, paid 22 December 2021

final dividend of 22.0 cents per share, unfranked, paid 22 December 2022

Dividends paid in cash or satisfied by the issue of shares under the dividend
reinvestment plan (DRP) during the year were as follows:

paid in cash

DRP – satisfied by issue of shares

Since the end of the financial year, the Directors declared the following dividend:

Final dividend on ordinary shares of 25.0 cents per share, unfranked, payable 18 December 2023.

Consolidated

2023
$m

2022
$m

53.1

67.2

81.7

99.6

140.9

40.4

90.6

29.7

The financial effect of the final dividend on ordinary shares has not been brought to account in the financial statements for the year ended
30 September 2023, however will be recognised in the 2024 financial statements.

Franking credits

Franking credits available at the 30 per cent corporate tax rate after allowing for tax payable in respect of the current year’s profit or loss
and the payment of the final dividend for 2023 are nil (2022: nil).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section C. Operating assets and liabilities

This section highlights current year drivers of the Group’s operating and investing cash flows, as well as the key operating assets
used and liabilities incurred to support delivering financial performance.

5. Working capital

(a) Trade working capital

Trade working capital includes inventories, receivables and payables that arise from normal trading conditions. The Group continuously looks
to improve working capital efficiency in order to maximise operating cash flow.

Inventories

Trade receivables

Trade payables

Trade working capital

(a)(i) Inventories

The classification of inventories is detailed below:

Raw materials

Work in progress

Finished goods

Notes

(a)(i)

(a)(ii)

(a)(iii)

Consolidated

2023
$m

868.1

759.2

(984.5)

642.8

2022
$m

872.6

903.1

(1,091.7)

684.0

Consolidated

2023
$m

296.8

0.6

570.7

868.1

2022
$m

337.0

0.7

534.9

872.6

Recognition and measurement

Inventories are measured at the lower of cost and net realisable value. Cost is based on a first‑in first‑out or weighted average basis. For manufactured
goods, cost includes direct material and fixed overheads based on normal operating capacity. Inventories have been shown net of provision for
impairment of $62.2 million (2022: $51.1 million).

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5. Working capital (continued)

(a)(ii) Trade receivables

The ageing of trade receivables and allowance for impairment is detailed below:

Not past due

Past due 0 – 30 days

Past due 31 – 120 days

Past 120 days

Consolidated

2023
Gross
$m

711.1

46.0

20.3

22.1

799.5

2023
Allowance
$m

–

(18.2)

(22.1)

(40.3)

2022
Gross
$m

851.8

52.0

20.4

43.1

967.3

2022
Allowance
$m

–

(0.7)

(20.4)

(43.1)

(64.2)

Recognition and Measurement

The collectability of trade and other receivables is assessed continuously, specific allowances are made for any doubtful trade and other
receivables based on a review of all outstanding amounts at year end. The expected impairment loss calculation for trade receivables considers
both quantitative information from historic credit losses as well as qualitative information on different customer/debtor profiles and segments.
The net carrying amount of trade and other receivables approximates their fair values. A risk assessment process is used for all accounts,
with a stop credit process in place for most long overdue accounts.

(a)(iii) Trade payables

Recognition and Measurement

Trade and other payables are recognised when the Group is required to make future payments as a result of the purchase of goods or as
services provided prior to the end of the reporting period. The carrying amount of trade payables approximates their fair values due to their
short‑term nature.

(b) Non‑trade working capital

Non‑trade working capital includes all other receivables and payables not related to the purchase of goods and is recognised net of provisions
for impairment of $23.0 million (2022: $18.5 million).

Critical accounting judgements and estimates

In the course of normal trading activities, management uses its judgement in establishing the carrying value of various elements
of working capital, principally inventory and accounts receivable. Provisions are established for obsolete or slow moving inventories.
Actual expenses in future periods may be different from the provisions established and any such differences would impact future
earnings of the Group.

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6. Provisions

Current

Employee entitlements

Environmental and decommissioning1, 2

Other

Non‑current

Employee entitlements

Retirement benefit obligations (see note 19b)

Environmental and decommissioning1, 2

Other

Consolidated

2023
$m

117.0

66.6

68.3

251.9

17.7

74.3

213.0

5.6

310.6

2022
$m

108.4

85.0

35.7

229.1

16.1

83.3

221.6

8.8

329.8

1. Payments of $41.9 million (2022: $52.4 million) were made during the year in relation to environmental and decommissioning provisions.

2. Net provision increases of $1.4 million (2022: decreases of $5.9 million) have been recognised in the income statement during the year. Net provision increases

of $12.7 million (2022: decreases of $21.2 million) have been capitalised as a part of the carrying value of property, plant and equipment.

The total environmental and decommissioning provision comprises:

Botany Groundwater remediation

Burrup decommissioning

Initiating systems network optimisation

Botany (HCB) waste

Deer Park remediation

Yarraville remediation

Other provisions

Total

Recognition and Measurement

Employee Entitlements

Consolidated

2023
$m

169.1

24.9

22.4

13.8

6.7

6.6

36.1

279.6

2022
$m

182.8

14.9

23.3

24.0

13.7

11.6

36.3

306.6

A liability for employee entitlements is recognised for the amount expected to be paid where the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and that obligation can be reliably measured.

Decommissioning

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 dismantling and removing the asset and restoring the site on which it is located are recognised as a depreciable
asset with a corresponding provision being raised where a legal or constructive obligation exists.

At each reporting date, the liability is remeasured in line with changes in discount rates, timing and estimated cash flows. Any changes in the
liability are added to or deducted from the related asset, other than the unwinding of the discount which is recognised as a finance cost.

Environmental

As a result of historical and current operations, certain sites owned or used by the Group will require future remediation activities to address
environmental contamination. Estimated costs for the remediation of soil, groundwater and untreated waste are recognised as a provision when:

• there is a present legal or constructive obligation to remediate

• a probable outflow of economic resources will occur to undertake the remediation

• the associated costs can be reliably estimated.

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6. Provisions (continued)

Where future expenditure is expected to meet the recognition and measurement criteria of an asset (as described in Note 7), a provision is
recognised only to the extent of the performance of the obligation (i.e. when costs are incurred by the Group).

Where the cost relates to the enhancement of land which is expected to be sold (e.g. where the Group no longer has ongoing operations), then
the costs are assessed for recognition as an asset taking into consideration the nature and extent of the activities and also the expected sales
proceeds compared to the sum of the current book value of the land and the estimated total costs. Any costs which result in the total carrying
value exceeding the expected proceeds on sale are expensed.

The amount of each provision reflects the best estimate of the expenditure required to settle each respective obligation having regard to a range
of potential scenarios, input from subject matter experts on appropriate remediation techniques and relevant technological advances.

Critical accounting judgements and estimates

Environmental provisions for other sites

Judgement is required in determining whether a constructive obligation to remediate environmental contamination exists. The Group
considers that a constructive obligation exists where there is a current risk to human health or the environment arising from environmental
contamination; or where an expectation has been established with a third party (including regulators, employees, neighbours or other
stakeholders) that remediation activities will be undertaken.

Where an obligation (legal or constructive) exists, further judgement is necessary to determine the future expenditure required to settle
the obligation. This is due to uncertainties in assumptions regarding the nature or extent of the contamination, the nature of the remedial
solution deployed and its effectiveness, the application of relevant laws or regulations and the information available at certain locations
where Orica no longer controls the site. Changes in these assumptions may impact future reported provisions. Subject to those factors and
taking into consideration experience gained to date regarding environmental matters of a similar nature, Orica considers that the provision
balances are appropriate based on currently available information. Changes in the assumptions noted above may result in costs incurred
in future periods being greater than or less than amounts provided.

Environmental provisions are reviewed bi‑annually taking into account any material changes to facts or circumstances which would be
expected to impact the valuation of the provision.

Botany groundwater remediation

Orica’s historical operations at the Botany Industrial Park resulted in contamination of the soil and groundwater. Due to the complex nature of
the chemicals involved and its distribution e.g. Dense Non‑Aqueous Phase Liquid (DNAPL), the lack of known practical remediation approaches
and the unknown scale of the contamination, a practical solution to completely remediate the contamination has not been found. Orica
continues to work in close cooperation with the New South Wales (NSW) Environmental Protection Authority (EPA) to address the contamination.

Orica has a current obligation to contain and mitigate the effects of the contamination on the groundwater at the site. Orica and the
NSW EPA entered into a Voluntary Management Proposal to contain groundwater contamination while an effective remediation approach
to the DNAPL source contamination is identified (refer to contingent environmental liabilities section below).

The findings from the 2018 review of costs and operational duration of the Groundwater Treatment Plant (GTP) indicated that the cessation
of groundwater extraction using the GTP is possible within an 18‑year timeframe. After this period, Orica anticipates that the contamination
levels will be materially below current levels and will be able to be managed through natural attenuation or less intensive technologies.

Contingent environmental liabilities

In addition to the obligations for which an environmental provision has been recognised, certain sites may require future remediation
activities to address environmental contamination.

Where the criteria for recognition of a provision are not met, a contingent liability may exist in the following circumstances:

• Sites where known contamination exists but does not pose a current threat to human health or the environment and there is no current
legal or regulatory requirement to remediate. Orica has a possible obligation for remediation which may be confirmed by future events
and the likelihood of a future outflow of resources is not remote; or

• Sites where contamination is known or likely to exist and it is probable that a future outflow of resources will occur, however the
financial impact cannot be reliably measured due to uncertainties related to the extent of Orica’s remediation obligations or the
remediation techniques that may be utilised.

Any costs associated with these matters are expensed as incurred. Information regarding each class of contingent liability is set out below.

Botany – remediation of source contamination

Specifically related to the remediation of DNAPL source contamination a reliable estimate of the costs to complete remediation is not
possible given the lack of proven remediation techniques that can be effectively deployed at the site and uncertainty of the scale of the
DNAPL contamination.

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6. Provisions (continued)

Other sites

Contingent liabilities exist with respect to a number of other sites owned or used by Orica where future remediation may be required and
possible obligations exist. Orica’s obligations with respect to these sites will be confirmed by future events and are subject to the following
uncertainties regarding the amount and timing of future outflows:

• Orica’s future decisions regarding the use of the site including the timing of any changes to the current use

• the requirements of laws and regulations at an unknown future point in time and the outcome of discussions with regulators at that time

• the nature and extent of environmental remediation required at a future point in time

• the availability and determination of solutions to address identified environmental issues and the cost and duration of the method selected.

Depending on the outcome of these factors, Orica may be required to incur expenditure to prevent or remediate environmental contamination.
Due to the uncertainties described above, it is not practicable to estimate the financial effect of the possible future outflows.

7. Property, plant and equipment

Consolidated

2022

Cost

Accumulated impairment losses

Accumulated depreciation

Total carrying value

Movement

Carrying amount at the beginning of the year

Additions

Additions through acquisitions of entities
(see note 14)

Disposals

Disposals through disposals of entities
(see note 15)

Transfers between property, plant & equipment
and intangible assets

Depreciation expense

Impairment expense

Revaluation of capitalised provisions

Foreign currency exchange differences

Carrying amount at the end of the year

Owned assets

Leased assets

Land,
buildings and
improvements
$m

Machinery,
plant and
equipment
$m

Land,
buildings and
improvements
$m

Machinery,
plant and
equipment
$m

983.8

(71.3)

(397.4)

515.1

518.0

0.6

–

(4.1)

–

14.9

(27.8)

(13.6)

–

27.1

515.1

5,299.2

(336.7)

(2,609.7)

2,352.8

2,288.5

310.3

1.0

(20.5)

(2.5)

(22.7)

(240.9)

(40.0)

(21.2)

100.8

2,352.8

231.8

(0.6)

(102.4)

128.8

131.6

19.0

0.4

(2.3)

(0.6)

–

(23.6)

(0.6)

–

4.9

128.8

201.7

(0.3)

(115.8)

85.6

102.1

23.9

–

(0.3)

–

(40.2)

(0.3)

–

0.4

85.6

Total
$m

6,716.5

(408.9)

(3,225.3)

3,082.3

3,040.2

353.8

1.4

(27.2)

(3.1)

(7.8)

(332.5)

(54.5)

(21.2)

133.2

3,082.3

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7. Property, plant and equipment (continued)

Consolidated

2023

Cost

Accumulated impairment losses

Accumulated depreciation

Total carrying value

Movement

Carrying amount at the beginning of the year

Additions

Additions through acquisitions of entities
(see note 14)

Disposals

Transfers between property, plant & equipment
and intangible assets

Depreciation expense

Revaluation of capitalised provisions

Foreign currency exchange differences

Owned assets

Leased assets

Land,
buildings and
improvements
$m

Machinery,
plant and
equipment
$m

Land,
buildings and
improvements
$m

Machinery,
plant and
equipment
$m

1,022.6

(71.3)

(430.5)

520.8

515.1

1.0

0.5

(1.9)

22.8

(26.0)

–

9.3

5,755.4

(336.7)

(2,852.3)

2,566.4

2,352.8

417.1

24.0

(9.4)

(29.6)

(233.8)

12.7

32.6

250.8

(0.6)

(121.1)

129.1

128.8

26.9

–

(4.6)

–

(24.4)

–

2.4

294.0

(0.3)

(149.7)

144.0

85.6

108.4

–

(0.3)

(0.1)

(53.0)

–

3.4

Total
$m

7,322.8

(408.9)

(3,553.6)

3,360.3

3,082.3

553.4

24.5

(16.2)

(6.9)

(337.2)

12.7

47.7

Carrying amount at the end of the year

520.8

2,566.4

129.1

144.0

3,360.3

Capital expenditure commitments

Capital expenditure on property, plant and equipment and business acquisitions contracted for but not provided for and payable no later than
one year was $141.0 million (2022: $105.1 million) and later than one but less than five years was $6.7 million (2022: $13.0 million).

Recognition and Measurement

Property, plant and equipment is stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly
attributable to the acquisition of the item and includes capitalised interest. Subsequent costs are capitalised 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.

The right of use asset at initial recognition reflects the lease liability adjusted for any lease payments made before the commencement date plus
any make good obligations and initial direct costs incurred (refer to note 3). The leases recognised by the Group under AASB 16 predominantly
relate to property leases including offices and storage as well as plant & equipment leases including vehicles and rail cars.

Critical accounting judgements and estimates

Management reviews the appropriateness of useful lives of assets at least annually, any changes to useful lives may affect prospective
depreciation rates and asset carrying values. Depreciation is recorded on a straight line basis using the following useful lives:

Land

Buildings and improvements

Machinery, plant and equipment

Owned assets

Right of use assets – leased

Indefinite

25 to 40 years

3 to 40 years

1 to 70 years

1 to 20 years

1 to 15 years

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Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

8. Intangible assets

Consolidated

2022

Cost

Accumulated impairment losses

Accumulated amortisation

Net carrying amount

Movement

Carrying amount at the beginning of the year

Additions

Additions through acquisitions of entities (see note 14)

Disposals

Disposals through disposal of entities (see note 15)

Transfers between property, plant & equipment and
intangible assets

Amortisation expense

Impairment expense

Foreign currency exchange differences

Carrying amount at the end of the year

2023

Cost

Accumulated impairment losses

Accumulated amortisation

Net carrying amount

Movement

Carrying amount at the beginning of the year

Additions

Additions through acquisitions of entities (see note 14)

Transfers between property, plant & equipment and
intangible assets

Amortisation expense

Foreign currency exchange differences

Goodwill
$m

1,258.7

(381.7)

–

877.0

896.7

–

25.5

–

(6.8)

–

(45.3)

6.9

877.0

1,445.2

(381.7)

–

1,063.5

877.0

–

176.8

–

9.7

Carrying amount at the end of the year

1,063.5

Recognition and Measurement

Unidentifiable intangibles – Goodwill

Patents,
brands,
trademarks
and rights
$m

Customer
relationships
and other
$m

Software
$m

Total
$m

1,921.8

(496.2)

(282.7)

1,142.9

1,150.4

30.2

32.2

(0.6)

(0.5)

7.8

(53.3)

(45.4)

22.1

1,142.9

121.5

–

(66.3)

55.2

81.2

0.1

–

(0.4)

(25.6)

(1.2)

–

1.1

55.2

223.4

2,240.4

–

(76.2)

147.2

55.2

–

94.0

6.5

(9.4)

0.9

(496.2)

(337.8)

1,406.4

1,142.9

21.0

276.8

6.9

(55.3)

14.1

147.2

1,406.4

226.9

–

(110.3)

116.6

73.2

–

6.7

(0.1)

–

41.1

(11.9)

–

7.6

116.6

234.2

–

(124.5)

109.7

116.6

0.1

6.0

–

(13.6)

0.6

109.7

314.7

(114.5)

(106.1)

94.1

99.3

30.1

–

(0.5)

(0.1)

(0.9)

(40.2)

(0.1)

6.5

94.1

337.6

(114.5)

(137.1)

86.0

94.1

20.9

–

0.4

(32.3)

2.9

86.0

Where the fair value of the consideration paid for a business acquisition exceeds the fair value of the identifiable assets, liabilities and contingent
liabilities acquired, the difference is treated as goodwill. Goodwill is not amortised but the recoverable amount is tested for impairment at
least annually.

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

8. Intangible assets (continued)

Identifiable intangibles

Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially
feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell
the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost
less accumulated amortisation and any accumulated impairment losses. Identifiable intangible assets with a finite life are amortised on a straight
line basis over their expected useful life to the Group, being up to thirty years. Expenditure on capitalised intangible assets is capitalised only
when it increases the future economic benefits of the specific asset to which it relates and which the Group controls (therefore excluding
Software as a Service). All other expenditure is expensed as incurred.

Critical accounting judgements and estimates

Management reviews the appropriateness of useful lives of intangible assets at least annually. Any changes to useful lives may affect
prospective amortisation rates and asset carry values.

9. Impairment testing of assets

Recognition and Measurement

Methodology

Formal impairment tests are carried out annually for goodwill. In addition, formal impairment tests for all assets are performed when there is an
indication of impairment. The Group conducts an internal review of asset values at each reporting period, which is used as a source of information
to assess for any indications of impairment. External factors, such as changes in expected future prices, costs and other market factors, are also
monitored to assess for indications of impairment. If any such indication exists, an estimate of the asset’s recoverable amount is calculated.

The recoverable amount is determined using the higher of value in use or fair value less costs to dispose. Value in use is the present value of the
estimated future cash flows expected to arise from the continued use of the asset in its present form and its eventual disposal. Value in use is
determined by applying assumptions specific to the Group’s continued use and does not consider future development. The value in use calculations
use cash flow projections which do not exceed five years based on actual operating results and the operating budgets approved by the Board of
Directors. Cash flows beyond the five‑year period are extrapolated using the estimated growth rates stated in the table below. Growth rates are
specific to individual cash‑generating units (CGUs) and reflect expected future market and economic conditions. Fair value less costs to dispose
is the value that would be received in exchange for an asset in an orderly transaction.

The discount rates applied to the post‑tax cash flows are derived using the weighted average cost of capital methodology. Adjustments to the
rates are made for any risks that are not reflected in the underlying cash flows, including country risk. The terminal growth rate was determined
based on management’s estimate of the long‑term compound annual EBIT growth rate.

In testing for indications of impairment and performing impairment calculations, assets are considered as collective groups and referred to as CGUs.
CGUs are the smallest identifiable group of assets, liabilities and associated goodwill that generate cash inflows that are largely independent of
the cash inflows from other assets or groups of assets with each CGU being no larger than a segment. CGUs to which goodwill has been allocated
are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal
reporting purposes. The test of goodwill and its impairment is undertaken at the segment level, except for the Pilbara CGU which contains the
joint operation with Yara International ASA Group.

The capital outflows required to meet the Group’s 2030 greenhouse gas emissions reduction target have been incorporated into the cash flows.
As part of the Group’s Climate Action Report (CAR) and Task Force on Climate‑related Financial Disclosures (TCFD) reporting, an assessment
of climate‑related risks and scenario analysis was performed but did not identify a risk of impairment at this time. As the Group’s financial and
non‑financial reporting develops and quantitative analysis is performed, financial implications will continue to be considered and built into future
cash flow assumptions.

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9. Impairment testing of assets (continued)

Key assumptions

Post‑tax
discount rates
2023
%

Weighted
average
post‑tax
discount rates
2023
%

Terminal
growth rates
2023
%

Weighted
average
terminal
growth rate
2023
%

8.5‑14.9

8.8

7.9

7.9‑13.0

7.6‑21.4

8.8

9.4

8.8

7.9

9.6

11.4

8.8

0.0‑6.4

2.3

2.1

1.5‑4.0

0.7‑14.5

2.3

2.2

2.3

2.1

3.0

3.4

2.3

Post‑tax
discount rates
2022
%

Weighted
average
post‑tax
discount rates
2022
%

Terminal
growth rates
2022
%

Weighted
average
terminal
growth rate
2022
%

8.8‑15.5

8.8

8.3

8.3‑12.7

7.5‑22.5

8.8

9.8

8.8

8.3

9.9

12.3

8.8

2.3‑6.5

2.6

1.7

1.5‑5.0

0.7‑13.1

2.6

3.2

2.6

1.7

3.0

4.2

2.6

Goodwill
2023
$m

404.2

–

170.4

171.2

–

317.7

1,063.5

Goodwill
2022
$m

429.7

–

168.5

163.7

–

115.1

877.0

Australia Pacific & Asia

Pilbara

North America

Latin America

Europe, Middle East & Africa

Digital Solutions

Total

Australia Pacific & Asia

Pilbara

North America

Latin America

Europe, Middle East & Africa

Digital Solutions

Total

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Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

9. Impairment testing of assets (continued)

Critical accounting judgements and estimates

2023

LATAM

Based on the latest projected cash flows of the Group, the carrying value of the Latin America segment is approximately equal to its value
in use. The value in use calculations are sensitive to earnings forecasts, changes in discount rates and terminal growth rates.

Any variation in the key assumptions of the cash flows would result in a change in the assessed value in use. If the impact of the change
had a negative impact, it could, in the absence of other factors require an impairment to goodwill. The key assumptions underlying the
value in use calculations are as follows:

• Growth in post‑tax cashflows for the region of $32.3 million from FY2024 to FY2028. This is reliant on achieving future growth
in earnings primarily due to securing new or expanded contracts and delivery of value added services and growth in the future
facing commodities.

• A weighted average terminal growth in line with local country economic forecasts of 3.0 per cent.

• A weighted average post‑tax discount rate of 9.6 per cent.

2022

Türkiye

The significant decline in the local economy and the devaluation of the Lira has resulted in the impairment of our investments in Orica
Nitro Patlayici Maddeler Sanayi ve Ticaret Anonim Sirketi and GeoNitro Limited. The total impairment charge is $32.7 million of which
$18.3 million is attributable to non‑controlling interests.

As at 30 September 2022, there was a foreign currency translation reserve balance of $92.4 million debit (of which $45.5 million
is attributable to non‑controlling interests) which would be released on sale, liquidation, repayment of share capital or abandonment
of the entity.

Russia

The escalation of the Russia‑Ukraine conflict, and imposed sanctions and export restrictions, led to our decision to exit the
Russian operations.

On 9 September 2022, the Group executed a contract to sell JSC “Orica CIS” Joint‑Stock Company for cash consideration
of $13.1 million. Orica has risk adjusted the proceeds given the trade sanctions imposed on Russia.

The Group has recognised a gross impairment expense of $89.9 million ($1.8 million was booked as a debit to tax expense), reducing
the value of the Russian business to nil. In addition, there was a loss on disposal of $40.6 million ($9.3 million was booked as a credit
to tax expense), relating to the release of foreign currency translation reserve as required by Australian Accounting Standards.

EMEA

Due to the issues outlined above impairment testing was performed on the EMEA region. The key assumptions underlying the value
in use calculations are as follows:

• no future cashflows for the Türkiye or Russian businesses.

• growth in post‑tax cashflows for the region of $17.5 million between FY2023 and FY2027.

• a weighted average terminal growth rate in line with local country economic forecasts of 4.2 per cent.

• a weighted average post‑tax discount rate of 12.3 per cent.

The present value of cashflows in EMEA no longer support the carrying value of goodwill. Therefore, the remaining balance of
$45.3 million has been impaired.

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Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section D. Managing Financial Risks

Orica’s Review of Operations and Financial Performance highlights funding and other treasury matters as material business risks that
could adversely affect the achievement of future business performance.

This section discusses the principal market and other financial risks that the Group is exposed to and the risk management program,
which seeks to mitigate these risks and reduce the volatility of Orica’s financial performance.

10. Financial risk management

Financial risk factors

Financial risk management is carried out centrally by the Group’s treasury function under policies approved by the Board.

The Group’s principal financial risks are associated with:

• interest rate risk (note 10a)

• foreign exchange risk (note 10b)

• commodity price risk (note 10c)

• credit risk (note 10d)

• liquidity risk (note 10e).

(a) Interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to
changes in market interest rates.

The Group is primarily exposed to interest rate risk on outstanding interest bearing liabilities. Non‑derivative interest bearing assets are
predominantly short‑term liquid assets. Interest bearing liabilities issued at fixed rates expose the Group to a fair value interest rate risk while
borrowings issued at a variable rate give rise to a cash flow interest rate risk.

Interest rate risk on long‑term interest bearing liabilities is managed by adjusting the ratio of fixed interest debt to variable interest debt. This is
managed within policies determined by the Board via the use of interest rate swaps and cross currency interest rate swaps. As at September
2023, fixed rate borrowings after the impact of interest rate swaps and cross currency swaps were $1,305.0 million (2022: $1,413.9 million),
representing a fixed/floating split of 63 per cent and 37 per cent respectively (2022: 65 per cent and 35 per cent).

Interest rate sensitivity

A 10 per cent movement in interest rates without management intervention would have a $4.0 million (2022: $4.6 million) impact on profit
before tax and a $3.4 million (2022: $3.2 million) impact on shareholders’ equity.

(b) Foreign exchange risk

i) Foreign exchange risk – transactional

Foreign exchange risk refers to the risk that the value of a financial commitment, recognised asset, liability or cash flow will fluctuate due to
changes in foreign currency rates.

The Group is exposed to foreign exchange risk due to foreign currency borrowings and sales and/or purchases denominated, either directly
or indirectly, in currencies other than the functional currencies of the Group’s subsidiaries.

Foreign exchange risk on foreign currency borrowings is managed using cross currency swaps and forward foreign exchange contracts. As at
September 2023, the notional balance of derivative contracts hedging foreign currency debt was $1,197.8 million (2022: $1,106.8 million).

In regard to foreign currency risk relating to sales and purchases, the Group may hedge up to 100% of committed exposures utilising a declining
percentage over time methodology. Only exposures that can be forecast to a high probability are hedged. Transactions can be hedged for up to
five years. The derivative instruments used for hedging purchase and sale exposures are bought vanilla option contracts and forward exchange
contracts. Forward exchange contracts may be used only under Board policy for committed exposures and anticipated exposures expected to
occur within 12 months. Bought vanilla option contracts may be used for all exposures. These contracts are designated as cash flow hedges and
are recognised at their fair value. At reporting date, Orica held foreign exchange contracts with a fair value loss of $0.8 million (2022 fair value
gain of $8.3 million).

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Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. Financial risk management (continued)

Foreign exchange sensitivity

The table below shows the Group’s main exposure to foreign currency transactional risk (Australian dollar equivalent) and the effect on profit
or loss and equity had exchange rates been 10 per cent higher or lower than the year end rate with all other variables held constant.

The analysis takes into account all underlying exposures and related hedges but not the impact of any management actions that might take place
if these events occurred.

Cash and cash equivalents

Trade and other receivables

Trade and other payables

Interest bearing liabilities

Net derivatives

Net exposure

Effect on profit/(loss) before tax

If exchange rates were 10% lower

If exchange rates were 10% higher

Increase/(decrease) in equity

If exchange rates were 10% lower

If exchange rates were 10% higher

Cash and cash equivalents

Trade and other receivables

Trade and other payables

Interest bearing liabilities

Net derivatives

Net exposure

Effect on profit/(loss) before tax

If exchange rates were 10% lower

If exchange rates were 10% higher

Increase/(decrease) in equity

If exchange rates were 10% lower

If exchange rates were 10% higher

USD
$m

296.5

275.0

(372.2)

(1,587.1)

1,531.1

143.3

9.8

(8.0)

11.1

(9.1)

USD
$m

261.9

289.4

(396.8)

(1,346.7)

1,299.9

107.7

7.8

(6.4)

8.4

(6.9)

2023

IDR
$m

51.4

43.7

(7.9)

(20.3)

–

66.9

7.4

(6.1)

5.2

(4.3)

2022

IDR
$m

77.4

54.6

(29.3)

(19.1)

–

83.6

9.3

(7.6)

6.5

(5.3)

CAD
$m

0.1

–

(2.7)

(44.6)

44.9

(2.3)

(0.3)

0.2

(0.2)

0.2

CAD
$m

18.7

–

(3.6)

–

(37.8)

(22.7)

(2.5)

2.1

(1.8)

1.4

EUR
$m

27.1

6.1

(21.7)

(43.5)

39.2

7.2

0.5

(0.4)

0.6

(0.5)

EUR
$m

20.6

5.6

(14.1)

(16.0)

12.8

8.9

0.2

(0.2)

0.7

(0.6)

ii) Foreign currency risk – translational

Foreign currency earnings translation risk arises primarily as a result of earnings generated by foreign operations with functional currencies of
CAD, USD, PEN, MXN, and KZT being translated into AUD. Derivative contracts to hedge earnings exposures do not qualify for hedge accounting
under Australian Accounting Standards. Board approved policy allows hedging of this exposure in order to reduce the volatility of full year
earnings resulting from changes in exchange rates. At reporting date, Orica held no derivative contracts to hedge earnings exposures (2022: nil).

Net investment in foreign operations

Hedging of foreign investment exposures is undertaken primarily through originating debt in the functional currency of the foreign operation,
or by raising debt in a different currency and swapping the debt to the currency of the foreign operation using derivative financial instruments.
The remaining translation exposure is managed, where considered appropriate, using forward foreign exchange contracts, or cross currency
interest rate swaps. As at reporting date, 21.2 per cent of the Group’s net investment in foreign operations was hedged (2022: 28.9 per cent).

143

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. Financial risk management (continued)

Commodity price risk refers to the risk that Orica’s profit or loss or equity will fluctuate due to changes in commodity prices.

Natural gas or ammonia are the primary feedstocks in Orica’s production process. Orica manages its contract portfolio so that on a mass balance
basis it seeks to maintain a low risk position across the contract cycle such that material input cost variations are passed through to customers in
price variations through rise and fall adjustments contained in all significant contracts.

The Group may enter into derivative contracts to hedge commodity price risk that is not eliminated via contractual or other commercial
arrangements. In FY2022, Orica executed a Power Purchase Agreement (PPA) to source renewable energy for Kooragang Island for 10 years
commencing FY2025. At reporting date, the fair value of the PPA was $2.8m loss (2022: nil).

The following table summarises the impact of changes to the key unobservable inputs on the fair value of the PPA for 2023:

Key unobservable inputs

Range of inputs

Relationship of key unobservable inputs to fair value

Forward electricity price

+/‑10%

A change in the electricity price by +/‑10% would increase/decrease the fair
value by $5.5m

(d) Credit risk

Credit risk represents the loss that would be recognised if counterparties failed to meet their obligations under a contract or arrangement.
The Group is exposed to credit risk from trade and other receivables and financial instrument contracts.

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 may be purchased when required.

The Group manages bank counterparty risk by ensuring that actual and potential exposure is monitored daily against counterparty credit limits,
which have been assigned based on counterparty credit ratings. The Group does not hold any credit derivatives to offset its credit exposures.

Orica’s maximum exposure to credit risk as at 30 September is the carrying amount, net of impairment, of the financial assets as detailed
in the table below:

Financial assets

Cash and cash equivalents

Derivative assets

Trade and other receivables

Total

(e) Liquidity risk

2023
$m

1,152.1

50.4

964.4

2,166.9

2022
$m

1,255.3

74.7

1,086.5

2,416.5

Liquidity risk arises from the possibility that there will be insufficient funds available to make payment as and when required.

The Group manages this risk via:

• maintaining an adequate level of undrawn committed facilities in various currencies that can be drawn upon at short notice

• using instruments that are readily tradeable in the financial markets

• monitoring duration of long‑term debt

• spreading, to the extent practicable, the maturity dates of long‑term debt facilities

• comprehensively analysing all forecast inflows and outflows that relate to financial assets and liabilities.

Facilities available and the amounts drawn and undrawn are as follows:

Unsecured bank overdraft facilities

Unsecured bank overdraft facilities available

Amount of facilities undrawn

Committed standby and loan facilities

Committed standby and loan facilities available

Amount of facilities unused

2023
$m

41.9

2022
$m

57.1

3,550.1

1,466.7

3,596.6

1,422.8

The bank overdrafts are payable on demand and are subject to an annual review. The repayment dates of the committed standby and loan
facilities range from 27 May 2024 to 16 October 2032 (2022: 25 October 2022 to 25 October 2030).

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. Financial risk management (continued)

The contractual maturity of the Group’s financial liabilities including estimated interest payments as at 30 September are shown in the table
below. The amounts shown represent the future undiscounted principal and interest cash flows and therefore differ from the carrying amount
on the balance sheet:

1 year or less
$m

1 to 2 years
$m

2 to 5 years
$m

Over 5 years
$m

Contractual
cash flows
$m

Carrying
amount
$m

110.4

87.4

1,549.4

(643.9)

663.1

1,766.4

207.8

65.6

40.0

(22.8)

38.0

328.6

869.2

117.6

–

(70.2)

118.2

1,034.8

1,676.6

116.9

–

(606.5)

594.8

1,781.8

2,864.0

387.5

1,589.4

(1,343.4)

1,414.1

4,911.6

2,075.4

296.8

1,589.4

–

63.5

4,025.1

1 year or less
$m

1 to 2 years
$m

2 to 5 years
$m

Over 5 years
$m

Contractual
cash flows
$m

Carrying
amount
$m

754.9

69.1

1,477.3

(543.4)

562.4

2,320.3

69.7

54.2

31.2

(12.7)

27.2

169.6

871.4

79.5

–

(38.0)

78.7

991.6

1,013.6

120.2

–

(416.3)

427.0

1,144.5

2,709.6

323.0

1,508.5

(1,010.4)

1,095.3

4,626.0

2,167.5

239.5

1,508.5

–

64.3

3,979.8

2023

Non derivative financial
liabilities

Interest bearing liabilities,
excluding lease liabilities

Lease liabilities

Trade and other payables

Derivative financial liabilities

Inflows

Outflows

Total

2022

Non derivative financial
liabilities

Interest bearing liabilities,
excluding lease liabilities

Lease liabilities

Trade and other payables

Derivative financial liabilities

Inflows

Outflows

Total

Fair value measurement

The balance sheet includes financial assets and financial liabilities that are measured at fair value. These fair values are categorised into hierarchy
levels that are representative of the inputs used in measuring the fair value.

Valuation method

Level 1 – uses quoted prices for identical instruments in active markets.

Level 2 – uses inputs for the asset or liability other than quoted prices that are observable either directly or indirectly.

Level 3 – uses valuation techniques where one or more significant inputs are based on unobservable market data.

At reporting date, other assets and other liabilities on the balance sheet included an equity investment in the ASX listed company Alpha HPA
(2023: $34.9 million, 2022: nil) valued at the quoted market price and categorised as Level 1, derivatives (2023: $10.3 million net liability,
2022: $10.4 million net asset) carried at fair value and categorised as Level 2 as the inputs are observable, and a renewable electricity PPA
categorised as Level 3 as the electricity forward prices cannot be forecasted using observable market data.

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10. Financial risk management (continued)

Valuation techniques include, where applicable, reference to prices quoted in active markets, discounted cash flow analysis, fair value of recent
arm’s length transactions involving the same instruments or other instruments that are substantially the same, and option pricing models.
Changes in default probabilities are included in the valuation of derivatives using credit and debit valuation adjustments.

Derivative financial instruments

Derivative assets

Designated as a hedge of interest bearing liabilities

Other

Total

Derivative liabilities

Designated as a hedge of interest bearing liabilities

Power purchase agreements

Other

Total

2023

2022

Current
$m

Non‑Current
$m

Current
$m

Non‑Current
$m

–

4.0

–

(4.7)

46.4

–

46.4

(56.0)

(2.8)

–

(58.8)

16.3

12.4

28.7

(3.6)

–

(4.2)

(7.8)

46.0

–

46.0

(56.5)

–

(56.5)

The fair values of forward exchange contracts, cross currency interest rate swaps and interest rate swaps and other financial liabilities measured
at fair value are determined using valuation techniques which utilise data from observable markets. Assumptions are based on market conditions
existing at each balance date. The fair value is calculated as the present value of the estimated future cash flows using an appropriate market‑
based yield curve, which is independently derived and representative of Orica’s cost of borrowings.

The fair value of the PPA is determined using an electricity forecasting model and key inputs used include the contract strike price, forecast electricity
volumes, forward NSW electricity spot prices and the credit worthiness of the service provider.

There have been no reclassifications between Level 1 and Level 2 or changes in the valuation techniques applied since the prior year.

The following table presents the changes in the PPA fair value (Level 3 instruments) for 2023:

Opening balance at 1 October 2022

Losses recognised in the income statement1

Closing balance at 30 September 2023

1. Comprises unrealised losses recognised in raw materials and inventories in the income statement.

Level 3
Instruments
$m

–

(2.8)

Financial assets and liabilities carried at amortised cost

The fair value of cash and cash equivalents, trade and other receivables (note 5), and trade and other payables (note 5) approximates their
carrying amount due to their short maturity.

Interest bearing liabilities excluding lease liabilities have a carrying amount of $2,075.4 million (2022: $2,167.5 million including discontinued
operations). The carrying amount of bank and other loans which are primarily short‑term in nature approximates fair value. Private Placement
debt which is primarily long‑term in nature has a carrying amount of $2,050.0 million (2022: $2,160.7 million) and a fair value of
$1,957.1 million (2022: $2,068.0 million). Fair value of Private Placement debt is determined as the present value of future contracted
cash flows discounted using standard valuation techniques at applicable market yields having regard to timing of cash flows.

Offsetting financial assets and liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet where Orica currently has a legally enforceable right
to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
No financial assets or liabilities are currently held under netting arrangements.

Orica has entered into derivative transactions under International Swaps and Derivatives Association (ISDA) master agreements that do not meet
the criteria for offsetting but allow for the related amounts to be set‑off in certain circumstances, such as the event of default. As Orica does not
presently have a legally enforceable right of set‑off, derivatives are presented on a gross basis on the balance sheet.

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. Financial risk management (continued)

Derivatives and hedge accounting

The Group uses derivatives and other financial instruments to hedge its exposure to currency, interest rate and commodity price risk exposures
arising from operational, financing and investing activities. Where applicable, these instruments are formally designated in hedge relationships
as defined by AASB 9. To qualify for hedge accounting the Group formally designates and documents details of the hedge, risk management
objective and strategy for entering into the arrangement and methodology used for measuring effectiveness.

Hedge accounting relationships are categorised according to the nature of the risks being hedged:

Hedge type

Fair value hedge

Cash flow hedge

Description

Hedges the change in fair value of recognised assets and liabilities.

Hedges the exposure to variability in cash flows attributable to a particular risk associated with an asset,
liability or highly probable forecast transaction.

Net investment hedge

Hedges the foreign currency translation exposure of the net assets of foreign operations.

Critical terms of hedging instruments and hedged items are transacted to match on a 1:1 ratio by notional values. Matching critical terms enables
economic offset thereafter to be determined qualitatively.

Hedge ineffectiveness arises primarily from the counterparties’ and the Group’s own credit risk which is included in the fair value of the derivative
hedge instrument but not the hedge item. During the current and prior financial years, there was no material impact on profit or loss resulting
from hedge ineffectiveness.

AASB 9 also allows certain costs of hedging to be deferred in equity. Gains or losses associated with ‘currency basis’ cost of hedging are deferred
in the cash flow hedge reserve as they are not material for separate disclosure. The amounts are systematically released to the income statement
to align with the hedged exposure.

Effects of hedge accounting on financial position and performance

Fair value and cash flow hedges

The table below shows the carrying amounts of the Group’s Private Placement debt and the derivatives which are designated in fair value and/or
cash flow hedge relationships to hedge them.

• The carrying amount of the Private Placement debt includes foreign exchange remeasurements to year end rates and fair value adjustments

when included in a fair value hedge.

• The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at year end rates, fair value movements
due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive
income and ineffectiveness recognised in the income statement.

• Hedged value represents the carrying amount of the Private Placement debt adjusted for the carrying amount of the designated derivatives.

Fair value of derivatives1

Foreign
exchange
notional @
spot
$m

Fair value
interest
rate risk
$m

Carrying
amount
$m

Balance in
cash flow
hedge
reserve
– gross of
tax2
$m

Recognised
in income
statement3
$m

Total
carrying
amount
liability/
(asset)
$m

Hedged
value
$m

2023

Private Placement debt

2,050.0

(112.7)

103.0

21.3

(2.1)

9.5

2,059.5

2022

Private Placement debt

2,160.7

(105.6)

97.1

6.5

(1.0)

(3.0)

2,157.7

1. Individual derivative transactions may be included in more than one hedge type designation.

2. Includes cost of hedging as defined by AASB 9 of $0.5 million (2022 $1.2 million).

3. Amounts recognised in the income statement are presented within financing costs.

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Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. Financial risk management (continued)

The timing of the cash flows for the hedging derivatives match the payment terms of the interest bearing liabilities, refer to note 10(e).

Cash flow hedge reserve1

Balance at 1 October

Changes in fair value

• foreign currency risk on debt issued

• other items

Amount reclassified to profit or loss2

• foreign currency risk on debt issued

• other items

Tax on movements on reserves during the year

Balance at 30 September

2023
$m

4.5

(20.8)

(0.1)

34.8

0.9

(4.4)

14.9

2022
$m

16.6

(16.5)

(0.8)

(0.1)

0.1

5.2

4.5

1. Includes cost of hedging as defined by AASB 9 of $0.5 million (2022: $1.2 million).

2. Amounts reclassified from cash flow hedge reserve to profit or loss are recorded in financing costs in the income statement.

Net investment hedges

As at 30 September, hedging instruments designated in a net investment hedge consisted primarily of foreign currency debt and had a
carrying amount of $779.1 million (2022: $1,000.9 million). During the period movements in the hedging instruments of $8.6 million loss
(2022: $92.1 million loss) were recognised in the foreign currency translation reserve, with no ineffectiveness (2022: nil) recognised in the
income statement.

Derivatives and hedge accounting – significant accounting policies

Valuation: Derivatives are measured at fair value at inception, and subsequently remeasured to fair value at each reporting date.

Fair value hedges

Cash flow hedges

Net investment hedges

Gains or losses on
fair value movements
of the financial
instrument

Recognised within financing costs
in the income statement, together
with gains or losses in relation
to the hedged item attributable
to the risk being hedged.

The effective portion is recognised
in other comprehensive income.
The ineffective portion is recognised
immediately within financing costs
in the income statement.

The effective portion is recognised
in the foreign currency translation
reserve in equity. The ineffective
portion is recognised immediately
in the income statement.

Discontinuation of
hedge accounting

The cumulative gain or loss that has
been recorded to the carrying
amount of the hedged item is
amortised to the income statement
using the effective interest method.

Amounts remain deferred in the
foreign currency translation reserve
and are subsequently recognised in
the income statement in the event
of disposal of the foreign operation.

When a hedging instrument expires
or is sold, terminated or exercised,
or the entity revokes designation of
the hedge relationship but the
hedged forecast transaction is still
expected to occur, the cumulative
gain or loss at that point remains
in equity. If the forecast transaction
is no longer forecast to occur,
the cumulative gain or loss is
transferred immediately to
the income statement.

Derivatives not in a designated hedge arrangement

Financial instruments that do not qualify for hedge accounting but remain economically effective, are accounted for as trading instruments.
As at 30 September 2023 the Group has entered into a 10 year Power Purchase Agreement (PPA) commencing January 2025 and due to expire
in December 2035. The PPA is a contract for difference (CfD) derivative financial instrument classified as non‑current on the balance sheet.
All other derivatives not in a designated hedge arrangement are classified as current on the balance sheet. All derivatives not in a designated
hedge arrangement are stated at fair value, with any resultant gain or loss recognised within raw materials and inventories in the income
statement. The Group policy is to not hold or issue financial instruments for speculative purposes.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section E. Taxation

This section outlines the taxes paid by Orica and the impact tax has on the financial statements.

Orica has operations in more than 45 countries, with customers in more than 100 countries. In 2023, Orica paid $252.7 million
(2022: $188.7 million) globally in corporate taxes and payroll taxes. Orica collected and remitted $157.1 million (2022: $200.1 million)
globally in GST/VAT.

As Orica operates in a number of countries around the world, it is subject to local tax rules in each of those countries. Orica’s tax rate
is sensitive to the geographic mix of profits earned in different countries with different tax rates, as tax will be due in the country where
the profits are earned. Many of the jurisdictions Orica has operations in have headline tax rates lower than 30 per cent.

11. Taxation

(a) Income tax expense recognised in the income statement

Consolidated

2023

2022

Continuing
$m

Discontinued
$m

Consolidated
$m

Continuing
$m

Discontinued
$m

Consolidated
$m

195.6

(70.0)

6.2

131.8

–

195.6

(70.0)

6.2

141.3

(2.2)

1.8

7.4

6.9

–

148.7

4.7

1.8

131.8

140.9

14.3

155.2

Income tax expense

Current year

Deferred tax

Under provided in prior years

Total income tax expense
in income statement

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Orica LimitedAnnual Report 2023

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11. Taxation (continued)

(b) Reconciliation of income tax expense to prima facie tax payable

Consolidated

2023

2022

Continuing
$m

Discontinued
$m

Consolidated
$m

Continuing
$m

Discontinued
$m

Consolidated
$m

Income tax expense attributable
to profit before individually
significant items

Profit from operations before individually
significant items

Prima facie income tax expense calculated
at 30% on profit

Tax effect of items which (decrease)/
increase tax expense:

variations in tax rates of foreign
controlled entities

tax under provided in prior years

non‑allowable interest deductions

non‑creditable withholding taxes

recognition of previously unbooked
temporary differences

recognition of unbooked prior year
tax losses

other

Income tax expense attributable
to profit before individually
significant items

Income tax (benefit)/expense
attributable to individually
significant items

554.4

166.3

(4.4)

6.2

5.8

8.0

(11.8)

(9.6)

5.7

166.2

Loss from individually significant items

(171.2)

Prima facie income tax expense calculated
at 30% on individually significant items

Tax effect of items which (decrease)/
increase tax expense:

loss on sale of Türkiye businesses

loss on exit of Venezuela business

Axis Group acquisition earnout

impairment expense

non‑taxable gain on sale of
Nitro Consult AB

non‑deductible loss on sale of Minova

Income tax benefit attributable to
loss on individually significant items

Income tax expense reported in the
income statement

(51.4)

21.2

(12.2)

8.0

–

(34.4)

131.8

554.4

463.5

14.7

478.2

166.3

139.1

4.4

143.5

(4.4)

6.2

5.8

8.0

7.7

1.8

3.4

5.7

(11.8)

(4.2)

(9.6)

5.7

(14.2)

9.1

–

1.2

7.7

1.8

3.4

5.7

(4.2)

(14.2)

10.3

166.2

148.4

5.6

154.0

(171.2)

(189.0)

(85.0)

(274.0)

(51.4)

(56.7)

(25.5)

(82.2)

21.2

(12.2)

8.0

–

(34.4)

–

55.1

(5.9)

–

(7.5)

–

34.2

8.7

–

55.1

(5.9)

34.2

1.2

131.8

140.9

14.3

155.2

–

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Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11. Taxation (continued)

Consolidated

2023

Tax
(expense)/
benefit
$m

Before tax
$m

Net of tax
$m

Before tax
$m

2022

Tax
(expense)/
benefit
$m

Net of tax
$m

Net loss on hedge of net investments
in foreign subsidiaries
Cash flow hedges
– Effective portion of changes in fair value
– Transferred to income statement
Changes in the fair value of financial assets
through other comprehensive income
Exchange gain on translation of foreign
operations
Net actuarial gain on defined benefit
obligations
Recognised in comprehensive income
Deductible share issue costs
Total recognised in equity

(8.6)

20.9
(35.7)

15.0

75.6

1.1
68.3
–
68.3

2.6

(6.3)
10.7

–

16.3

(0.5)
22.8
–
22.8

(d) Recognised deferred tax assets and liabilities

Deferred tax assets
Trade and other receivables
Inventories
Property, plant and equipment
Intangible assets
Trade and other payables
Interest bearing liabilities
Provision for employee entitlements
Provision for retirement benefit obligations
Provision for environmental and decommissioning
Provision for other
Tax losses
Other items
Deferred tax assets
Less set‑off against deferred tax liabilities
Net deferred tax assets

Deferred tax liabilities
Property, plant and equipment
Intangible assets
Interest bearing liabilities
Other items
Deferred tax liabilities
Less set‑off against deferred tax assets
Net deferred tax liabilities

Deferred tax expense

151

(6.0)

(92.1)

27.6

(64.5)

14.6
(25.0)

15.0

91.9

0.6
91.1
–
91.1

17.3
–

–

213.8

91.7
230.7
(11.2)
219.5

(5.2)
–

–

(49.6)

(25.8)
(53.0)
1.8
(51.2)

Balance Sheet

Income Statement

Consolidated

2023
$m

27.3
31.4
53.8
51.9
73.6
16.2
34.8
9.6
75.1
15.1
156.8
2.6
548.2
(115.2)
433.0

117.2
40.2
–
4.6
162.0
(115.2)
46.8

2022
$m

15.8
38.1
50.7
67.8
50.7
–
31.5
17.0
83.8
6.9
133.2
4.4
499.9
(104.3)
395.6

105.7
25.8
11.4
8.6
151.5
(104.3)
47.2

2023
$m

(1.7)
5.9
(2.7)
15.9
(23.1)
(22.3)
(3.5)
3.2
8.7
(9.7)
(13.1)
(8.3)

11.5
(15.6)
(11.4)
(3.8)

12.1
–

–

164.2

65.9
177.7
(9.4)
168.3

2022
$m

12.3
(19.2)
(33.6)
3.8
(9.2)
28.9
(3.8)
(3.1)
14.8
(3.6)
0.2
(2.5)

7.1
1.1
10.7
0.8

(70.0)

4.7

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11. Taxation (continued)

Tax losses not booked1

Capital losses not booked

Temporary differences not booked

1. Tax losses not booked expire between 2024 and 2038.

Recognition and Measurement

Consolidated

2023
$m

158.1

93.0

12.2

2022
$m

118.7

83.2

83.6

Income tax on the profit or loss for the year comprises current and deferred tax and is recognised in the income statement.

Current tax expense is the expected tax payable on the taxable income for the year using tax rates applicable at the reporting date, and any
adjustments to tax payable in respect of previous years.

Deferred tax balances are determined by calculating temporary differences based on the carrying amounts of assets and liabilities for financial
reporting purposes and their amounts for taxation purposes. Where amounts are recognised directly in equity the corresponding tax impact is
also recognised directly in equity.

The amount of deferred tax recognised is based on the expected manner of realisation of the asset or settlement of the liability, using tax rates
enacted or substantively enacted at reporting date.

A deferred tax asset will be recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised. Deferred tax assets will be reduced to the extent it is no longer probable that the related tax benefit will be realised.

Tax consolidation

Orica Limited is the parent entity in the tax consolidated group comprising all wholly‑owned Australian entities.

Due to the existence of a tax sharing agreement between the entities in the tax consolidated group, the parent entity recognises the tax effects
of its own transactions and the current tax liabilities and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from the subsidiary entities.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11. Taxation (continued)

Critical accounting judgements and estimates

The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations and is subject to periodic challenges
by local tax authorities on a range of tax matters during the normal course of business. These include transfer pricing, indirect taxes and
transaction‑related issues. Significant judgement is required in determining the worldwide provision for income taxes. There are many
transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain.

The Group recognises liabilities for tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of
these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax provision
in the period in which such determination is made.

In addition, deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable profits are available to utilise those temporary differences and losses, and the tax losses continue to be available having regard to
the nature and timing of their origination and compliance with the relevant tax legislation associated with their recoupment.

Assumptions are also made about the application of income tax legislation. These assumptions are subject to risk and uncertainty and
there is a possibility that changes in circumstances or differences in opinions will alter outcomes which may impact the amount of deferred
tax assets and deferred tax liabilities recorded on the balance sheet and the amount of tax losses and timing differences not yet recognised.
In these circumstances, the carrying amount of deferred tax assets and liabilities may change, resulting in an impact on the earnings
of the Group.

Contingent tax liabilities

In the normal course of business, contingent liabilities may arise from tax investigations or legal proceedings. Where management are of
the view that potential liabilities have a low probability of crystallising or it is not possible to quantify them reliably, they are not provided
for and are disclosed as contingent liabilities.

Consistent with other companies of the size and diversity of Orica, the Group is the subject of ongoing information requests, investigations
and audit activities by tax and regulatory authorities in jurisdictions in which Orica operates. Orica co‑operates fully with the tax and
regulatory authorities. It is possible that Orica may incur fines and/or other penalties as a consequence of these investigations and audits.

(i) Brazilian Tax Action

The Brazilian Taxation Authority (BTA) is claiming unpaid taxes, interest and penalties of approximately $31 million for the 1997 financial
year relating to an alleged understatement of income based on an audit of production records. Orica believes BTA has misinterpreted those
production records and has received a favourable decision from the Brazilian Civil Court in relation to an excise dispute based on the same
factual matter. This decision should support the income tax dispute.

ICI plc, the vendor of the business to Orica, has been notified to preserve Orica’s rights under the tax indemnity obtained upon acquisition
of the business which provides indemnity for amounts exceeding certain limits. The BTA has been granted a bank guarantee of up to
approximately $31 million.

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Section F. Group structure

Orica has a diverse spread of global operations, which includes controlled entities incorporated in over 45 countries, as well as strategic
partnering arrangements with certain third parties. This section highlights the Group structure.

12. Investments in controlled entities

Recognition and measurement

The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the Group,
being the Company (the parent entity) and its subsidiaries as defined in AASB 10 Consolidated Financial Statements.

On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition.
Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill.

When the Group relinquishes control over a subsidiary, it derecognises its share of net assets. Any resulting gain or loss is recognised in profit
or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.

The consolidated financial statements include the information and results of each subsidiary from the date on which the Company obtains
control until such time as the Company ceases to control such entity. In preparing the consolidated financial statements, all intercompany
balances, transactions and unrealised profits arising within the Group are eliminated in full.

Refer to note 23 for the list of investments in controlled entities.

13. Equity accounted investees and joint operations

(a) Investments accounted for using the equity method

The table below shows material investments (based on carrying values). All other investments are included in “Individually immaterial”.

Balance
date

30‑Sep

Ownership

2023
%

50.0

2022
%

50.0

Profit/(loss)
for the year

Consolidated
Carrying value

2023
$m

14.7

2022
$m

9.0

2023
$m

47.3

2022
$m

43.2

Principal activity

Manufacture and
sale of explosives

Sale of explosives

30‑Sep

50.0

7.2

8.9

38.0

37.2

Name

Nelson Brothers, LLC1

Nelson Brothers Mining
Services LLC1

Poly Orica Management
Co., Ltd2

Manufacture and
sale of explosives

31‑Dec

49.0

(4.7)

3.8

73.6

78.3

Southwest Energy LLC1

Sale of explosives

30‑Sep

50.0

Individually immaterial

Various

16.8

(11.7)

22.3

14.1

4.0

39.8

165.3

2.3

151.0

14.1

326.5

323.8

1. Entities are incorporated in USA.

2. Entity is incorporated in China.

All equity accounted investees disclosed in the table above are classified as joint ventures.

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13. Equity accounted investees and joint operations (continued)

The following table summarises the financial information of significant equity accounted investees as included in their own financial statements.

Equity Accounted Investees

2023
Name

Balance Sheet

Current assets

Non‑current assets

Current liabilities

Non‑current liabilities

Net assets (100%)

Group’s share of net assets

Income Statement

Revenue

Net profit

Total profit and comprehensive income (100%)

Group’s share of total comprehensive income

Translation and other adjustments

Included in the Group’s income statement

Dividends received by the Group

2022
Name

Balance Sheet

Current assets

Non‑current assets

Current liabilities

Non‑current liabilities

Net assets (100%)

Group’s share of net assets

Income Statement

Revenue

Net profit

Total profit and comprehensive income (100%)

Group’s share of total comprehensive income

Translation and other adjustments

Included in the Group’s income statement

Dividends received by the Group

(b) Joint operations

Nelson
Brothers, LLC
$m

Nelson
Brothers
Mining
Services LLC
$m

Poly Orica
Management
Co., Ltd
$m

Southwest
Energy LLC
$m

109.8

118.0

(105.5)

(56.2)

66.1

33.1

464.5

24.6

12.3

2.4

14.7

11.1

33.9

20.4

(29.6)

(12.3)

12.4

6.2

189.7

13.3

6.7

0.6

7.3

6.7

98.7

83.6

(28.6)

(2.2)

151.5

74.2

84.8

(2.4)

(1.2)

(3.5)

(4.7)

–

100.4

148.1

(42.5)

(2.8)

203.2

101.6

331.2

30.7

15.4

1.4

16.8

4.7

Nelson
Brothers, LLC
$m

Nelson
Brothers
Mining
Services LLC
$m

Poly Orica
Management
Co., Ltd
$m

Southwest
Energy LLC
$m

90.2

89.7

(85.8)

(32.7)

61.4

30.7

34.3

16.7

(27.1)

(10.4)

13.5

6.8

107.8

85.0

(24.9)

(2.2)

165.7

81.2

92.2

126.2

(37.6)

(7.1)

173.7

86.9

354.5

190.5

113.8

299.0

17.9

9.0

–

9.0

9.8

17.4

8.7

0.2

8.9

9.5

11.8

5.8

(2.0)

3.8

–

28.9

14.5

(0.4)

14.1

3.9

The Group owns 50 per cent interest of Yara Pilbara Nitrates Pty Ltd, with the remaining shares held by subsidiaries in the Yara International
ASA Group.

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13. Equity accounted investees and joint operations (continued)

Transactions during the year with equity accounted investees were:

Sales of goods to equity accounted investees

Purchase of goods from equity accounted investees

Dividend income received from equity accounted investees

(d) Transactions with related parties

2023
$m

358.4

156.1

22.5

2022
$m

397.2

118.1

23.2

All transactions with other related parties are made on normal commercial terms and conditions and in the ordinary course of business.

Recognition and Measurement

Investments accounted for using the equity method

The Group’s interests in investments accounted for using the equity method comprise interests in associates and joint ventures.

An associate exists where Orica holds an interest in the equity of an entity, generally of between 20 per cent and 50 per cent, and is able to
significantly influence the decisions of the entity. A joint venture is an arrangement in which the Group has joint control.

Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations
for the liabilities relating to the arrangement. Orica recognises its share of any jointly held or incurred assets, liabilities, revenue and expenses in
the consolidated financial statements under applicable headings.

14. Businesses and non‑controlling interests acquired

Business combinations are accounted for under the acquisition method when control is transferred to the Group, in accordance with
AASB 3 Business Combinations. On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at
the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill.
The transaction costs are expensed in the income statement.

Consolidated – 2023

Acquisitions of business and controlled entities

On 3 October 2022, the Group acquired 100% of the shares of Axis Group, who designs, develops and manufactures specialised geospatial
tools and instruments for the mining industry. The purchase price comprises $255.8 million paid on completion and potential earnout payments
of up to $90.0 million based on the achievement of cumulative EBITDA generated from 1 October 2022 to 31 December 2024, and contingent
on certain key management remaining employed by Orica during the earnout period. An accrual of $26.6 million has been recognised in the
income statement as an individually significant Item for 2023.

Consideration

cash paid

Total consideration

Fair value of net assets of businesses acquired

Intangibles

property, plant and equipment

deferred tax liability

other assets

Total fair value of net assets of businesses/controlled entities acquired

Goodwill on acquisition

156

Axis Group

2023
$m

255.8

100.0

2.4

(30.0)

6.6

79.0

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Introduction and Overview

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Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14. Businesses and non‑controlling interests acquired (continued)

Goodwill on the purchase is attributable mainly to the skills and technical talent of the acquired business’ workforces and the synergies expected
to be achieved from integrating this business. None of the goodwill recognised is expected to be deductible for income tax purposes.

Acquisition‑related costs of $6.5 million that were not directly attributable to the issue of shares are included in the income statement and
in operating cash flows in the statement of cash flows.

On 22 June 2023, the Group acquired the operations of two ammonium nitrate emulsion plants and associated assets in Blackwater, Queensland
and Gunnedah, New South Wales. The purchase price comprises $19.6 million paid on completion and an additional amount up to $2.5 million
payable within 24 months from completion. There was no goodwill associated with the transaction.

In August 2023, the Group acquired an additional 0.01% of Exsa, for consideration of $0.02 million. The ownership at 30 September 2023
is 100 per cent.

Consolidated – 2022

Acquisitions of business and controlled entities

On 29 October 2021, the Group entered a contract to acquire 100% of the shares of RIG Technologies International Pty Ltd and Resources
Innovation Group Pty Ltd, based in Western Australia, who design and build downhole measurement technology. The purchase price comprises
$12.5 million paid on completion and potential earnout payments based on the achievement of revenue targets over the next five years.

Consideration

cash paid

deferred settlement

Total consideration

Fair value of net assets of businesses acquired

property, plant and equipment

intangibles

other

Total fair value of net assets of businesses/controlled entities acquired

Goodwill on acquisition

RIG Group

2022
$m

12.5

21.5

34.0

1.4

6.7

0.4

8.5

25.5

Goodwill on the purchase is attributable mainly to the skills and technical talent of the acquired business’ work forces and the synergies expected
to be achieved from integrating this business. None of the goodwill recognised is expected to be deductible for income tax purposes.

Since 1 October 2021, the Group has acquired an additional 1.2 per cent of Exsa, for the consideration of $1.9 million. The ownership at
30 September 2022 is 99.9 per cent.

Critical accounting judgements and estimates

Judgment is required in determining the value of earnout accrual as it is based on future operating results. The group prepares forecasts
bi‑annually taking into account any material changes to facts or circumstances which would be expected to impact the level of earnout
to be paid.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. Businesses disposed and discontinued operations

Businesses disposed – 2023

On 10 November 2022 Orica completed the sale of Orica Nitro Patlayici Maddeler Sanayi ve Ticaret Anonim Sirketi and GeoNitro Limited
(Türkiye businesses), for a consideration of $19.0 million. Orica recorded a loss on sale before tax of $73.5 million which included a loss of
$92.5 million relating to the release of the foreign currency translation reserve as required by Australian Accounting Standards. $45.1 million
of the net loss on sale was attributable to non‑controlling interests.

Summary

Cash received1

Deferred cash consideration

Net consideration

Carrying value of net assets of businesses disposed

Profit on sale of businesses before release of foreign currency translation reserve (FCTR)

Release of FCTR

Loss on sale of businesses before tax

Income tax expense

Net loss on sale of businesses

Less: Net loss on sale of businesses attributable to non‑controlling interests

Net loss on sale of businesses attributable to shareholders of Orica Limited

1. Total cash received as at 30 September 2023, included a deposit of $7.5 million received in September 2022.

Türkiye
businesses

2023
$m

15.7

3.3

19.0

–

19.0

(92.5)

(73.5)

0.8

(72.7)

45.1

(27.6)

On 29 September 2023 Orica entered an agreement to exit Venezuela. As required by Australian Accounting Standards, the foreign currency
translation reserve was released to the income statement. This resulted in a net loss of $37.5 million after tax, of which $18.4 million is
attributable to non‑controlling interests.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. Businesses disposed and discontinued operations (continued)

Businesses disposed – 2022

The Group disposed of the Minova business on 28 February 2022 and Nitro Consult AB on 7 March 2022.

Minova
2022
$m

Nitro Consult AB
2022
$m

Summary

Cash received

Cash disposed

Net cash received

Deferred cash consideration

Less disposal costs

Net consideration

Carrying value of net assets of businesses disposed

Trade and other receivables

Inventories

Other assets

Property, plant and equipment

Right of use assets

Intangibles

Deferred tax asset

Trade and other payables

Interest‑bearing liabilities

Provisions

Less: Non‑controlling interests at date of disposal

Profit on sale of businesses before release of foreign currency translation reserve
(FCTR)

Release of FCTR

(Loss)/profit on sale of businesses before tax

Income tax expense

Net (loss)/profit on sale of businesses

149.4

(26.6)

122.8

28.2

(12.0)

139.0

76.7

68.7

5.3

68.2

–

16.1

23.3

(76.9)

(10.4)

(34.9)

136.1

(7.8)

10.7

(95.7)

(85.0)

(8.7)

(93.7)

25.6

(11.1)

14.5

–

(1.7)

12.8

2.4

1.6

7.6

2.5

0.6

0.5

1.6

(1.2)

(0.7)

(20.6)

(5.7)

–

18.5

1.0

19.5

–

19.5

As outlined in note 9, Orica disposed of JSC “Orica CIS” on 9 September 2022. The entity was fully impaired and the proceeds have been risk
adjusted given the trade sanctions imposed on Russia. As required by Australian Accounting Standards, the foreign currency translation reserve
was released to the income statement on disposal. This resulted in a gross loss of $40.6 million ($31.3 million loss after tax).

159

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. Businesses disposed and discontinued operations (continued)

Discontinued operations – 2022

The Minova business was considered a discontinued operation on 30 September 2021. The results of the business for financial year 2022 until
completion date of the sale are presented below.

Continuing
2022
$m

Discontinued
2022
$m

Consolidated
2022
$m

Sales revenue

Other income1

Raw materials and inventories

Employee benefits expense

Depreciation and amortisation expense

Purchased services and other expenses

Outgoing freight

Repairs and maintenance

Impairment expense

Loss on sale of JSC “Orica CIS”

Gain on sale of Nitro Consult AB

Loss on sale of Minova

Share of net profit of equity accounted investees

Total

Profit/(loss) from operations

Net financing costs

Financial income

Financial expenses

Net financing costs

Profit/(loss) before income tax expense

Income tax expense

Profit/(loss) after tax

Net profit/(loss) for the year attributable to:

Shareholders of Orica Limited

Non‑controlling interests

Net profit/(loss) for the year

7,096.4

31.8

(3,909.5)

(1,223.7)

(385.8)

(622.0)

(307.1)

(156.1)

(167.9)

(40.6)

19.5

–

39.8

(6,753.4)

374.8

2.1

(102.4)

(100.3)

274.5

(140.9)

133.6

145.5

(11.9)

133.6

231.1

(0.8)

(150.4)

(41.3)

–

(14.9)

(5.6)

(3.4)

–

(85.0)

–

(300.6)

(70.3)

0.1

(0.1)

–

(70.3)

(14.3)

(84.6)

(85.4)

0.8

(84.6)

7,327.5

31.0

(4,059.9)

(1,265.0)

(385.8)

(636.9)

(312.7)

(159.5)

(167.9)

(40.6)

19.5

(85.0)

39.8

(7,054.0)

304.5

2.2

(102.5)

(100.3)

204.2

(155.2)

49.0

60.1

(11.1)

49.0

1. Discontinued operations other income includes foreign exchange loss of $1.1 million.

Earnings per share attributable to ordinary shareholders of Orica Limited:

Basic earnings per share

Diluted earnings per share

Continuing
2022
cents

Discontinued
2022
cents

Consolidated
2022
cents

35.1

35.0

(20.6)

14.5

14.4

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. Businesses disposed and discontinued operations (continued)

Continuing
2022
$m

Discontinued
2022
$m

Consolidated
2022
$m

563.8

(100.3)

463.5

(148.4)

315.1

(6.4)

308.7

(189.0)

7.5

(181.5)

18.3

(163.2)

274.5

(140.9)

133.6

11.9

145.5

(11.9)

133.6

14.7

–

14.7

(5.6)

9.1

(0.8)

8.3

(85.0)

(8.7)

(93.7)

–

(93.7)

(70.3)

(14.3)

(84.6)

(0.8)

(85.4)

0.8

(84.6)

578.5

(100.3)

478.2

(154.0)

324.2

(7.2)

317.0

(274.0)

(1.2)

(275.2)

18.3

(256.9)

204.2

(155.2)

49.0

11.1

60.1

(11.1)

49.0

Minova

2022
$m

(4.7)

(8.2)

(3.2)

(16.1)

Reconciliation of net profit for the year

Before individually significant items

Profit from operations

Net financing costs

Profit before income tax expense

Income tax expense

Profit after tax before non‑controlling interests

Non‑controlling interests

Profit after tax before individually significant items

Individually significant items

Loss before income tax expense

Income tax benefit/(expense)

Loss after tax before non‑controlling interests

Non‑controlling interests

Loss after tax from individually significant items

Net profit/(loss) after tax

Net profit/(loss) before income tax expense

Income tax expense

Profit/(loss) after tax before non‑controlling interests

Non‑controlling interests

Net profit/(loss) after tax

Net profit/(loss) for the year attributable to:

Shareholders of Orica Limited

Non‑controlling interests

Net profit/(loss) for the year

Cash flows used in discontinued operations

Net cash used in operating activities

Net cash used in investing activities

Net cash used in financing activities

Net cash flows for the year

161

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. Businesses disposed and discontinued operations (continued)

Recognition and measurement

A discontinued operation is a component of the Group where the operations and cash flows can be clearly distinguished from the rest of
the Group. It represents a separate major line of operations and is part of a single co‑ordinated plan to dispose of a separate major line
of operation or business.

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.

When an operation is classified as a discontinued operation, the comparative income statement and statement of comprehensive income
is represented as if the operation had been discontinued from the start of the comparative year.

Disposal groups comprising assets and liabilities are classified as held for sale if it is highly probable that they will be recovered primarily through
sale rather than through continuing use.

Such disposal groups are measured at the lower of their carrying amount and fair value less costs to sell. Once classified as held for sale,
intangible assets and property, plant and equipment are no longer amortised or depreciated.

16. Parent Company disclosure – Orica Limited

The Company did not have any contractual commitments for the acquisition of property, plant or equipment in the current or previous years.

Total current assets

Total assets

Total current liabilities

Total liabilities

Equity

Ordinary shares

Retained earnings

Total equity attributable to ordinary shareholders of Orica Limited

Net profit and total comprehensive income for the year

Contingent liabilities and contingent assets

Company

2023
$m

2,340.9

3,902.5

178.3

199.9

3,421.2

281.4

3,702.6

75.0

2022
$m

2,384.0

3,946.2

159.0

168.8

3,389.7

387.7

3,777.4

2.6

Under the terms of a Deed of Cross Guarantee entered into under ASIC Corporations (Wholly‑owned Companies) Instrument 2016/785,
each wholly owned subsidiary which is a party to the Deed has covenanted with the Trustee of the Deed to guarantee the payment of any debts
of the other companies which are party to the Deed which might arise on the winding up of those companies. A consolidated balance sheet
and income statement for this closed group is shown in note 17.

Orica Limited guaranteed senior notes issued in the US Private Placement market in 2010, 2013, 2017, 2020 and 2023. The notes have maturities
between calendar years 2025 and 2032 (2022: 2022 and 2030). Orica Limited has also provided guarantees for committed bank facilities.

17. Deed of Cross Guarantee

The parent entity, Orica Limited, and certain subsidiaries are subject to a Deed of Cross Guarantee (Deed) under which each company guarantees
the debts of the others.

The parties to the Deed are:

• Initiating Explosives Systems Pty Ltd

• Orica Australia Pty Ltd

• Orica Investments Pty Ltd

• Orica Explosives Holdings Pty Ltd

• Orica Explosives Holdings No 2 Pty Ltd

• Orica Explosives Technology Pty Ltd

• Orica IC Assets Pty Ltd

By entering into the Deed, the wholly owned subsidiaries have been relieved from the requirement to prepare a financial report and Directors’
report under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.

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Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

17. Deed of Cross Guarantee (continued)

A consolidated income statement and consolidated balance sheet are shown below:

Summarised Balance Sheet

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Other financial assets

Other assets1

Total current assets

Non‑current assets

Trade and other receivables

Equity accounted investees

Other financial assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Total non‑current assets

Total assets

Current liabilities

Trade and other payables

Interest bearing liabilities

Current tax liabilities

Provisions

Total current liabilities

Non‑current liabilities

Trade and other payables

Interest bearing liabilities

Provisions

Other liabilities

Total non‑current liabilities

Total liabilities

Net assets

Equity

Ordinary shares

Reserves

Retained earnings

Total equity

Summarised Income Statement and retained profit

Loss before income tax expense

Income tax benefit

Loss from operations

Retained (Loss)/profit at the beginning of the year

Actuarial gains recognised directly in equity

Ordinary dividends – interim

Ordinary dividends – final

Retained loss at the end of the year

1. Other assets include net tax receivables with Group entities outside the Deed of Cross Guarantee.

163

2023
$m

2022
$m

64.4

322.4

163.3

2,799.7

37.6

3,387.4

2.5

1.4

4,806.1

1,347.7

167.2

118.9

6,443.8

9,831.2

702.4

19.1

–

127.3

848.8

37.2

4,929.1

179.0

2.8

5,148.1

5,996.9

3,834.3

3,421.2

786.3

(373.2)

3,834.3

(59.7)

13.8

(45.9)

(148.0)

2.0

(81.7)

(99.6)

(373.2)

9.6

342.7

199.4

2,594.6

19.7

3,166.0

2.5

13.3

4,763.2

1,265.8

174.1

185.5

6,404.4

9,570.4

404.9

20.8

41.0

137.8

604.5

21.9

4,659.0

207.9

–

4,888.8

5,493.3

4,077.1

3,398.1

827.0

(148.0)

4,077.1

(541.8)

19.5

(522.3)

449.5

45.1

(53.1)

(67.2)

(148.0)

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section G. Reward and recognition

Orica operates in more than 45 countries and has more than 12,500 employees. This section provides insights into the reward and
recognition of employees, in addition to the employee benefits expense and employee provisions disclosed in the income statement
and note 6 respectively.

This section should be read in conjunction with the Remuneration Report, contained within the Directors’ Report, which provides
specific details on the setting of remuneration for Key Management Personnel.

18. Employee share plans and remuneration

The following plans have options or rights (instruments) over Orica shares outstanding at 30 September 2022 and 30 September 2023:

The Long‑Term Incentive Plan (LTIP)

Refer to Remuneration Report.

Sign‑on rights

For a select group of senior employees who join Orica post allocation of an LTIP grant (and who generally have forgone at‑risk remuneration
from their previous employer) rights may be allocated at the discretion of the Orica Board.

Recognition and measurement

The issued instruments are measured at fair value based on valuations prepared by PwC. The fair value is recognised in the income statement
over the period that employees become entitled to the instruments.

Key Management Personnel compensation summary

As deemed under AASB 124 Related Parties Disclosures, Key Management Personnel (KMP) include each of the Directors, both Executive and
Non‑Executive, and those members of the Executive Committee who have authority and responsibility for planning, directing and controlling
the activities of Orica.

A summary of the KMP compensation is set out in the following table:

Short‑term employee benefits

Other long‑term benefits

Post employment benefits

Share based payments

Consolidated

2023
$000

9,251.6

21.2

272.5

4,038.8

13,584.1

2022
$000

7,667.6

25.0

214.4

1,961.7

9,868.7

Information regarding individual Directors and Executives compensation and equity instrument disclosures as permitted by Corporation
Regulations 2M.3.03 are provided in the Remuneration Report.

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Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

19. Defined benefit obligations

Recognition and Measurement

Contributions to defined contribution superannuation funds are recognised in the income statement in the year in which the expense is incurred.

For each defined benefit scheme, the cost of providing retirement benefits is expensed in the income statement so as to recognise current and
past service costs, interest cost on net liabilities, and the effect of any curtailments or settlements. Actuarial gains and losses are recognised in
other comprehensive income. The Group’s net liabilities in respect of defined benefit pension plans is the present value of the future benefit
employees have earned, less the fair value of any plan assets (subject to any restrictions placed).

(a) Defined benefit pension plans

The Group participates in several Australian and overseas defined benefit post‑employment plans that provide benefits to employees upon
retirement. Plan funding is carried out in accordance with the requirements of trust deeds and the advice of actuaries. Information within these
financial statements has been prepared by the local plan external actuaries. Orica were assisted by Willis Towers Watson to consolidate those
results globally. During the year, the Group made employer contributions of $24.8 million (2022: $27.0 million) to defined benefit plans.
The Group’s external actuaries have forecast total employer contributions and benefit payments to defined benefit plans of $19.5 million
for the 2024 financial year.

(b) (i) Balance Sheet amounts

The amounts recognised in the balance sheet are determined as follows:

Present value of the funded defined benefit obligations

Present value of unfunded defined benefit obligations

Fair value of defined benefit plan assets

Deficit

Restrictions on assets recognised

Net liability in the balance sheet

Amounts comprised of:

Liabilities

Assets

Net liability recognised in balance sheet at end of the year

(b) (ii) Amounts recognised in the income statement

The amounts recognised in the income statement are as follows:

Current service cost

Interest cost on net defined benefit liabilities

Loss/(gain) from immediate recognition

Past service cost

Total included in employee benefits expense

165

2023
$m

517.7

61.4

(507.4)

71.7

2.6

74.3

81.0

(6.7)

74.3

2023
$m

10.3

3.2

0.2

0.1

13.8

2022
$m

527.6

65.4

(512.8)

80.2

3.1

83.3

91.0

(7.7)

83.3

2022
$m

14.1

4.5

(0.4)

0.8

19.0

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

19. Defined benefit obligations (continued)

(b) (iii) Amounts included in the Statement of Other Comprehensive Income

Actuarial gain/(loss) on defined benefit obligations:

Due to changes in demographic assumptions

Due to changes in financial assumptions

Due to experience adjustments

Total

Return on plan assets lesser than discount rate

Change in irrecoverable surplus/(deficit) other than interest

Total gain recognised via the Statement of Other Comprehensive Income

Tax expense on total gain recognised via the Statement of Other Comprehensive Income

Total gain after tax recognised via the Statement of Other Comprehensive Income

(b) (iv) Reconciliations

Reconciliation of present value of the defined benefit obligations:

Balance at the beginning of the year

Current service cost

Interest cost

Actuarial gains

Contributions by plan participants

Benefits paid

Settlements/curtailments

Business disposal

Exchange differences on foreign funds

Balance at the end of the year

Reconciliation of the fair value of the plan assets:

Balance at the beginning of the year

Interest income on plan asset

Return on plan assets greater than discount rate

Contributions by plan participants

Contributions by employer

Benefits paid

Settlements/curtailments

Exchange differences on foreign funds

Balance at the end of the year

166

2023
$m

0.4

20.6

(3.5)

17.5

(17.2)

0.8

1.1

(0.5)

0.6

2023
$m

593.0

10.3

29.1

(17.3)

0.8

(48.8)

(1.9)

–

13.9

579.1

2023
$m

512.8

26.0

(17.2)

0.8

24.8

(48.8)

(2.0)

11.0

507.4

2022
$m

(6.3)

186.1

(4.3)

175.5

(82.7)

(1.1)

91.7

(25.8)

65.9

2022
$m

810.6

14.1

21.6

(175.9)

0.8

(55.2)

0.8

(20.1)

(3.7)

593.0

2022
$m

603.4

17.1

(82.7)

0.8

27.0

(55.2)

–

2.4

512.8

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

19. Defined benefit obligations (continued)

The fair value of plan assets does not include any amounts relating to the Group’s own financial instruments, property occupied by, or other
assets used by, the Group.

Comprising:

Quoted in active markets:

Equities

Debt securities

Property

Other quoted securities

Other:

Property

Insurance contracts

Cash and cash equivalents

2023
$m

2022
$m

150.1

238.4

2.8

63.3

39.9

2.1

10.8

507.4

172.4

204.4

3.2

69.4

34.2

4.4

24.8

512.8

The principal assumptions applied in determining the present value of defined benefit obligations and their bases were as follows:

• Rates of increase in pensionable remuneration, pensions in payment and healthcare costs: historical experience and management’s long‑term

future expectations;

• Discount rates: prevailing long‑term high quality bond yields, chosen to match the currency and duration of the relevant obligation; and

• Mortality rates: the local actuaries’ designated mortality rates for the individual plans concerned.

The weighted averages for those assumptions and related sensitivity information are presented below. Sensitivity information indicates by how
much the defined benefit obligations would increase or decrease if a given assumption were to increase or decrease with no change in other
assumptions.

Rate of increase in pensionable remuneration

Rate of increase in pension payments

Discount rate for pension plans

Weighted average of
assumptions used p.a.

2023

3.57%

2.71%

5.41%

2022

3.32%

2.80%

5.07%

Change in assumptions

+1% p.a.
$m

‑1% p.a.
$m

12.1

11.2

(59.1)

(10.7)

(9.5)

70.3

The expected age at death for persons aged 65 is 87.8 years for men and 90.1 years for women at 30 September 2023. A change of one year
in the expected age of death would result in an $11.9 million movement in the defined benefit obligation at 30 September 2023.

Critical accounting judgements and estimates

The defined benefit obligation costs are assessed in accordance with the advice of independent qualified actuaries but require the
exercise of judgement in relation to assumptions for future salary and superannuation increases, long‑term price inflation and bond rates.
While management believes the assumptions used are appropriate, a change in the assumptions used may impact the earnings and
equity of the Group.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Section H. Other

This section includes additional financial information that is required by Australian Accounting Standards and which management
considers to be relevant information for shareholders.

20. Contingent liabilities

Contingent liabilities relating to environmental uncertainties are disclosed in note 6 and those relating to taxation in note 11. All others are
disclosed below.

(a) Guarantees, indemnities and warranties

• The Group has entered into various long‑term supply contracts. For some contracts, minimum charges are payable regardless of the level

of operations, but the levels of operations are expected to remain above those that would trigger minimum payments.

• There are guarantees relating to certain leases of property, plant and equipment and other agreements arising in the ordinary course of business.

• Contracts of sale covering companies and assets which were divested during the current and prior years include commercial warranties and

indemnities to the purchasers.

(b) Legal, claims and other

There are a number of legal claims and exposures which arise from the ordinary course of business. Where there is significant uncertainty
as to whether a future liability will arise in respect of these items, no amounts have been disclosed. Management have concluded that any
potential liabilities over and above those already provided for in the financial statements would not have a material effect on the Group’s
financial performance.

Critical accounting judgements and estimates

Where management are of the view that potential liabilities that arise in the normal course of business have a low probability of
crystallising or it is not possible to quantify them reliably, they are not provided for and are disclosed as contingent liabilities.

Legal proceedings

The outcome of currently pending and future legal, judicial, regulatory, administrative and other proceedings of a litigious nature
(Proceedings) cannot be predicted with certainty. Proceedings can raise complex legal issues and are subject to many uncertainties
including, but not limited to, the facts and circumstances of each particular case, issues regarding the jurisdiction in which each Proceeding
is brought and differences in applicable law. Thus, an adverse decision in Proceedings could result in additional costs that are not covered,
either wholly or partially, under insurance policies and that could significantly impact the business and results of operations of the Group.
Therefore, it is possible that the financial position, results of operations or cash flows of the Group could be materially affected by an
unfavourable outcome of those Proceedings. Proceedings are evaluated on a case‑by‑case basis considering the available information,
including that from legal counsel, to assess potential outcomes.

Warranties and Indemnities

In the course of acquisitions and disposals of businesses and assets, Orica routinely negotiates warranties and indemnities across a range
of commercial issues and risks, including environmental risks associated with real property. Management uses the information available
and exercises judgement in the overall context of these transactions, in determining the scope and extent of these warranties and
indemnities. In assessing Orica’s financial position, management relies on warranties and indemnities received, and considers potential
exposures on warranties and indemnities provided. It is possible that the financial position, results of operations and cash flows of the
Group could be materially affected if circumstances arise where warranties and indemnities received are not honoured, or for those
provided, circumstances change adversely.

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Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

21. Auditor’s remuneration

Total remuneration received, or due and receivable, by the auditors for:

Audit services

Auditor of the Company – KPMG Australia

– Audit and review of financial reports

Auditor of the Company – overseas KPMG firms

– Audit and review of financial reports1

Other services

Auditor of the Company – KPMG Australia

– assurance services in relation to integrated reporting and sustainability

– advisory services in relation to compliance reporting

– other services

Consolidated

2023
$000

2022
$000

3,980

4,220

2,079

6,059

–

6,120

1,776

5,996

144

6,140

1. Fees paid or payable for overseas subsidiaries’ local statutory requirements.

From time to time, KPMG, the auditor of Orica, provides other services to the Group, which are subject to strict corporate governance procedures
adopted by the Company which encompass the selection of service providers and the setting of their remuneration.

22. Events subsequent to balance date

Dividends

On 8 November 2023, the Directors declared a final dividend of 25.0 cents per ordinary share payable on 18 December 2023. The financial
effect of this dividend is not included in the financial statements for the year ended 30 September 2023 and will be recognised in the FY2024
financial statements.

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Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

23. List of controlled entities

The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities held during financial year
2022 and 2023 (non‑controlling interests shareholding disclosed if not 100 per cent owned):

Place of
incorporation
if other than
Australia

Name of Entity

Place of
incorporation
if other than
Australia

Name of Entity

Company
Orica Limited
Controlled Entities
Altona Properties Pty Ltd (a) – 37.4%
Aminova International Limited
Ammonium Nitrate Development and
Production Limited – 9.3%
Anbao Insurance Pte Ltd
ASA Organizacion Industrial S.A. de C.V.
Axis Mining Technology North America Inc.(d)
Axis Mining Technology Pty Ltd (a)(d)
Axis Mining Technology SPA (d)
Barbara Limited (c)
Orica (Beijing) Technology Services Co., Ltd.
(formerly Beijing Ruichy Minova Synthetic
Material Company Limited)
BST Manufacturing, Inc.
CJSC (ZAO) Carbo‑Zakk (c) – 6.25%
Controladora DNS de RL de CV
Dansel Business Corporation
DV8 Technology Ltd (d)
Dyno Nobel VH Company LLC – 49%
Emirates Explosives LLC – 35%

Explosivos de Mexico S.A. de C.V.
Explosivos Mexicanos S.A. de C.V.
Exsa Chile SpA
Exsa Colombia S.A.S. (c)
Exsa S.A.
Fortune Properties (Alrode) (Pty) Limited (c)
Frekventia AS (formerly Nitro Consult AS)
GeoNitro Limited (e) – 69.4%
GP FinCo Pty Limited (a)
GP HoldCo Pty Limited
GroundProbe Australasia Pty Ltd (a)
GroundProbe Colombia S.A.S.
GroundProbe do Brasil
GroundProbe International Pty Ltd (a)
GroundProbe North America LLC
GroundProbe Peru S.A.C.
GroundProbe Pty Ltd (a)
GroundProbe South Africa (Proprietary) Ltd
GroundProbe South America SA
GroundProbe Technologies Pty Ltd (a)
GroundProbe (Nanjing) Mining Technology Co. Ltd China
Gruvteknik Investments Pty Ltd (a)(d)
Holding EXSA S.A.C.
Hopper Industrial Group Pty Ltd (a)(b)
International Blasting Services Inc (c) – 0.1%

USA
Peru

India

Peru

Hong Kong
Thailand

Singapore
Mexico
Canada

Chile
UK
China

USA
Russia
Mexico
Panama
UK
USA
United Arab
Emirates
Mexico
Mexico
Chile
Colombia
Peru
South Africa
Norway
Georgia

Colombia
Brazil

South Africa
Chile

Czech Republic
Germany
Spain
Poland
Germany
USA
UK

India

Russia
South Africa
South Africa
Poland

Indian Explosives Private Limited
Initiating Explosives Systems Pty Ltd
JSC "Orica CIS" (c)
Minova Africa (Pty) Ltd (c) – 26%
Minova Africa Holdings (Pty) Limited (c)
Minova Arnall Sp. z o.o. (c)
Minova Australia Pty Ltd (a)(c)
Minova Bohemia s.r.o. (c)
Minova CarboTech GmbH (c)
Minova Codiv S.L. (c)
Minova Ekochem S.A. (c)
Minova Holding GmbH (c)
Minova Holding Inc (c)
Minova International Limited (c)
Minova Kazakhstan Limited Liability Partnership (c) Kazakhstan
Minova Ksante Sp. z o.o. (c)
Minova MAI GmbH
Minova Mexico S.A. de C.V.
Minova MineTek Private Limited (c)
Minova Mining Services SA (c)
Minova Nordic AB (c)
Minova Runaya Private Limited (c) – 49%
Minova USA Inc (c)
Minova Weldgrip Limited
Mintun 1 Limited
Mintun 2 Limited
Mintun 3 Limited
Mintun 4 Limited
Nitro Asia Company Inc. – 41.6%
Nitro Consult AB (c)
Nitroamonia de Mexico S.A de C.V.
NMR Services Australia Pty Ltd (a)(b)
Nobel Industrier AS
Nutnim 1 Limited
Nutnim 2 Limited
OOO Minova (c)
Orica‑CCM Energy Systems Sdn Bhd – 45%
Orica‑GM Holdings Limited – 49%
Orica Africa Holdings Limited
Orica Africa (Proprietary) Ltd
Orica Argentina S.A.I.C.
Orica Australia Pty Ltd
Orica Belgium S.A.
Orica Blast & Quarry Surveys Limited – 25%
Orica Brasil Ltda
Orica Burkina Faso SARL
Orica Canada Inc
Orica Caribe, S.A.
Orica Centroamerica S.A.

Poland
Austria
Mexico
India
Chile
Sweden
India
USA
UK
UK
UK
UK
UK
Philippines
Sweden
Mexico

Norway
UK
UK
Russia
Malaysia
UK
UK
South Africa
Argentina

Belgium
UK
Brazil
Burkina Faso
Canada
Panama
Costa Rica

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Directors’ Report

Financial Report

Other Information

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

23. List of controlled entities (continued)

Name of Entity

Orica Chile Distribution S.A.
Orica Chile S.A.
Orica Colombia S.A.S.
Orica Cote D'Ivoire SARL
Orica Denmark A/S
Orica Dominicana S.A.

Orica DRC SARL

Orica Eesti OU – 35%
Orica Europe FT Pty Ltd (a)
Orica Europe GmbH & Co KG
Orica Europe Verwaltungs GmbH
Orica Explosives Holdings Pty Ltd
Orica Explosives Holdings No 2 Pty Ltd
Orica Explosives Holdings No 3 Pty Ltd (a)
Orica Explosives Research Pty Ltd (a)
Orica Explosives Technology Pty Ltd
Orica Explosivos Industriales, S.A.
Orica Finance Limited
Orica Finance Trust (a)
Orica Finland OY
Orica General Trading FZCO (f)

Orica Ghana Limited
Orica Holdings Pty Ltd (a)
Orica Ibéria, S.A.
Orica IC Assets Holdings Limited Partnership (a)
Orica IC Assets Pty Ltd
Orica International Pte Ltd
Orica Investments (Indonesia) Pty Limited (a)
Orica Investments (NZ) Limited
Orica Kazakhstan Joint Stock Company
Orica Limited Employee Share Trust (a)(f)
Orica Logistics LLC
Orica Long Term Equity Incentive Plan Trust (a)
Orica Malaysia Sdn Bhd
Orica Mali SARL

Orica Mauritania SARL
Orica Med Bulgaria AD – 40%
Orica Mining Services (Namibia)
(Proprietary) Limited
Orica Mining Services (Hong Kong) Ltd
Orica Mining Services DRC SASU

Orica Mining Services Peru S.A.
Orica Mining Services Portugal, Lda.
Orica Mining Services (Thailand) Limited
Orica Mongolia LLC – 51%

Place of
incorporation
if other than
Australia

Name of Entity

Place of
incorporation
if other than
Australia

Chile
Chile
Colombia
Ivory Coast
Denmark
Dominican
Republic
Democratic
Republic of
Congo
Estonia

Germany
Germany

Spain

Finland
United Arab
Emirates
Ghana

Portugal

Singapore

NZ
Kazakhstan

Russia

Malaysia
Republic
of Mali
Mauritania
Bulgaria
Namibia

Hong Kong
Democratic
Republic of
Congo
Peru
Portugal
Thailand
Mongolia

Philippines
Türkiye

Norway
Panama
Philippines
Portugal
UK
Senegal

USA
Orica Mountain West Inc.
Mozambique
Orica Mozambique Limitada
Orica New Zealand Limited
NZ
Orica New Zealand Superfunds Securities Limited NZ
Orica Nitrates Philippines Inc – 4%
Orica Nitro Patlayici Maddeler Sanayi ve
Ticaret Anonim Sirketi (e) – 49%
Orica Nominees Pty Ltd (a)
Orica Norway AS
Orica Panama S.A.
Orica Philippines Inc – 5.5%
Orica Portugal, S.G.P.S., S.A.
Orica Securities (UK) Limited
Orica Senegal SARL
Orica Share Plan Pty Limited (a)
Orica Singapore Pte Ltd
Orica Soluciones de Voladuras S.A.C.
Orica South Africa (Pty) Ltd – 26.5%
Orica St. Petersburg LLC
Orica Sweden AB
Orica Sweden Holdings AB
Orica Tanzania Limited
Orica UK Limited
Orica US Holdings General Partnership
Orica USA Inc.
Orica U.S. Services Inc.
Orica Venezuela C.A. (e) – 49%
Orica Zambia Limited
OriCare Canada Inc.
Oricorp Comercial S.A. de C.V.
Oricorp Mexico S.A. de C.V.
Penlon Proprietary Limited (a)
Project Grace
Project Grace Holdings
Promec International Pty Ltd (a)
PT GroundProbe Indonesia
PT Kalimantan Mining Services
PT Kaltim Nitrate Indonesia – 10%
PT Orica Mining Services
Resource Innovation Group Pty Ltd (a)(b)
RIG Technologies International Pty Ltd (a)(b)
Rui Jade International Limited
Surewell Pty Ltd (a)(d)
Surtech Systems Pty Ltd (a)(b)
White Lightning Holdings, Inc

Singapore
Peru
South Africa
Russia
Sweden
Sweden
Tanzania
UK
USA
USA
USA
Venezuela
Zambia
Canada
Mexico
Mexico

Indonesia
Indonesia
Indonesia
Indonesia

Hong Kong

Philippines

UK
UK

(a) No separate statutory accounts are required to be prepared in Australia.

(b) Acquired in 2022.

(d) Acquired in 2023.

(e) Divested in 2023.

(f) Incorporated in 2023.

171

Orica LimitedAnnual Report 2023NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

24. New accounting policies and accounting standards

Except as described below, the accounting policies applied by the Group in its financial statements are the same as those applied by the Group
in its consolidated financial report for the year ended 30 September 2022.

(i) New and amended accounting standards and interpretations adopted

Since 30 September 2022, the Group has adopted the following new and amended accounting standards:

(a) AASB 1 First-time Adoption of Australian Accounting Standards to simplify the application of AASB 1 by a subsidiary that becomes

a first‑time adopter after its parent in relation to the measurement of cumulative translation differences

(b) AASB 3 Business Combinations to update a reference to the Conceptual Framework for Financial Reporting without changing the

accounting requirements for business combinations

(c) AASB 9 Financial Instruments to clarify the fees an entity includes when assessing whether the terms of a new or modified financial

liability are substantially different from the terms of the original financial liability

(d) AASB 116 Property, Plant and Equipment to require an entity to recognise the sales proceeds from selling items produced while preparing
property, plant and equipment for its intended use and the related cost in profit or loss, instead of deducting the amounts received from
the cost of the asset

(e) AASB 137 Provisions, Contingent Liabilities and Contingent Assets to specify the costs that an entity includes when assessing whether

a contract will be loss‑making.

The adoption of these standards and related amendments did not have a material impact on the Group.

(ii) New and amended accounting standards and interpretations issued but not yet effective

There are no new standards or interpretations that are not yet effective and that would be expected to have a material impact on the Group
in the current or future reporting periods and on foreseeable future transactions.

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Governance

Directors’ Report

Financial Report

Other Information

DIRECTORS’ DECLARATION

We, Malcolm William Broomhead and Sanjeev Gandhi, being Directors of Orica Limited, do hereby state in accordance with a resolution
of the Directors that in the opinion of the Directors,

(a) the consolidated financial statements and notes, set out on pages 113 to 172, and the Remuneration Report in the Directors’ Report,

set out on pages 86 to 110, are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the financial position of the Group as at 30 September 2023 and of its performance for the financial

year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) there are reasonable grounds to believe the Company will be able to pay its debts as and when they become due and payable.

There are reasonable grounds to believe that the Company and the controlled entities identified in note 17 will be able to meet any obligations
or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company and those controlled
entities pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.

The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Managing Director and
Chief Financial Officer for the financial year ended 30 September 2023.

The Directors draw attention to Basis of preparation on page 119 to the financial statements, which includes a statement of compliance
with International Financial Reporting Standards.

M W Broomhead
Chairman

Dated at Melbourne 8 November 2023

S Gandhi
Managing Director and Chief Executive Officer

173

Orica LimitedAnnual Report 2023
INDEPENDENT AUDITOR’S REPORT

174

Orica LimitedAnnual Report 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Orica Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Orica Limited (the Company). In our opinion, the accompanying Financial Report of the Company 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 2023 and of its financial performance for the year ended on that date; and  complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises:  Balance Sheet as at 30 September 2023  Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended  Notes including a summary of significant accounting policies  Directors’ Declaration. The Group consists of Orica Limited (the Company) and the entities it controlled at the year end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 Corporations Act 2001 and the ethical requirements of the Accounting Professional and 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 fulfilled our other ethical responsibilities in accordance with these requirements. Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INDEPENDENT AUDITOR’S REPORT (CONTINUED)
INDEPENDENT AUDITOR’S REPORT (CONTINUED)

175

Orica LimitedAnnual Report 2023 Key Audit Matters The Key Audit Matters we identified are:  Recoverable amount of property, plant and equipment and intangible assets  Environmental and decommissioning provisions and contingent liability disclosures Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were 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 these matters. Recoverable amount of property, plant and equipment ($3,360.3 million) and intangible assets ($1,406.4 million) Refer to Notes 7, 8 and 9 of the Financial Report The key audit matter How the matter was addressed in our audit A key audit matter was the Group’s testing of property, plant and equipment and intangible assets for impairment given the size of the balances (being 54% of total assets), continued global supply chain disruptions, inflationary pressures and uncertainty around forecast commodity prices. We focused on the significant forward-looking assumptions the Group applied in the value in use models, including:  Forecast operating cash flows: the ongoing economic uncertainty caused by geopolitical issues, continued global supply chain disruptions and uncertainty around inflation expectations and forecast commodity prices increases the possibility of property, plant and equipment and intangible assets being impaired and the risk of inaccurate forecasts or a significantly wider range of possible outcomes for us to consider. We focused on both the forecast growth for the Group and the impact of the Group’s future business plans when assessing the feasibility of the Group’s forecast cashflows.  Terminal growth rates: in addition to the uncertainties described above, the Group’s models are highly sensitive to changes in terminal growth rates. This drives additional audit effort specific to their feasibility and consistency of application having regard to the Group’s strategy.  Discount rates: these are complicated in Our procedures included:  We considered the appropriateness of the value in use method applied by the Group to perform the impairment tests against the requirements of the accounting standards.  We assessed key controls in the Group’s impairment process, such as Board approval of budgets and review and approval of the impairment assessments, including cash flow forecasts, by examining the review and approval of information by the Board.  We assessed the integrity of the value in use models used, including the accuracy of the underlying calculation formulas.  We compared the forecast cash flows contained in the value in use models to the future business plans approved by the Board.  We compared the Group’s cumulative value in use to the Group’s market capitalisation to inform our evaluation of the current forecasts incorporated in the models.  We assessed the accuracy of previous Group cash flow forecasts for the respective CGUs to inform our evaluation of current forecasts incorporated in the models.  We assessed the scope, competence and objectivity of the Group’s external expert engaged to assist with the determination of the discount rates for the respective CGUs.  Working with our valuation specialists, we independently developed a discount rate range INDEPENDENT AUDITOR’S REPORT (CONTINUED)

176

Orica LimitedAnnual Report 2023 nature and vary according to the conditions and environment the specific Cash generating Units (CGUs) are subject to from time to time, and the approach to incorporating risks into the cash flows or discount rates. Orica engaged an external expert to assist with the determination of the discount rates for the respective CGUs. We involved valuation specialists to supplement our senior audit team members in assessing this key audit matter. for the key countries in each CGU, using publicly available market data for comparable entities, adjusted for risk factors specific to the Group and the industry it operates in. We compared the discount rates applied by the Group to our developed range.  Working with our valuation specialists, we assessed the forecast cash flows by comparing the implicit earnings and asset multiples from the models to corresponding multiples of comparable entities.  We considered the sensitivity of the models by varying key assumptions such as forecast operating cash flows, terminal growth rates and discount rates, within a reasonably possible range, to identify those assumptions at higher risk of bias or inconsistency in application and to focus our further procedures.  Using our knowledge of the Group’s operations, their past performance and our industry experience, we challenged the Group’s forecast cash flows, terminal growth rate assumptions and the feasibility of future plans. We also compared forecast growth rates to published sources, including those related to inflationary pressures and forecast commodity prices and considered differences specific to the Group’s operations.  We assessed the disclosures in the Financial Report using our understanding of the matters obtained from our testing and against the requirements of the accounting standards. Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

177

Orica LimitedAnnual Report 2023 Environmental and decommissioning provisions ($279.6 million) and contingent liability disclosures Refer to Note 6 to the Financial Report The key audit matter How the matter was addressed in our audit The estimation of environmental remediation and decommissioning provisions and contingent liability disclosures is considered a key audit matter due to the:  Inherent complexity associated with the Group’s estimation of remediation costs, particularly for potential contamination of ground beneath established structures and long term legacy matters impacting the Group, and in gathering persuasive audit evidence thereon.  Internal restructuring activities undertaken by the Group, including the scheduled closure of certain manufacturing sites which give rise to heightened audit focus on the nature, timing and amount of decommissioning costs expected to be incurred by the Group. The complexity in estimating the Group’s environmental remediation and decommissioning provisions and reporting of contingent liability disclosures is influenced by:  The inherent challenges experienced by the Group in precisely determining the size and location of potential contamination beneath established structures and associated costs to be included in the provisions and/or reporting of a contingent liability in accordance with accounting standard requirements.  Current and probable environmental and regulatory requirements and the impact on completeness of remediation activities within the provision estimate, including the activities which will be acceptable to regulators.  The expected environmental remediation strategy of the Group and availability of any known techniques to remediate source contamination, in particular for treatment of Dense Non-Aqueous Phase Liquid source areas at Botany, New South Wales.  Historical experience, and its use as a Our procedures included:  We assessed key controls relating to the completeness, size and location of the Group’s identification of areas which contain contamination and the related recognition and measurement of provisions, including the Group’s review and authorisation of cost estimates.  We assessed the scope, competence and objectivity of the Group’s internal and external experts engaged to assist in the determination of strategies to remediate contamination and the costing of remediation activities.  We tested the accuracy of historical remediation provisions by comparing to actual expenditure. We used this knowledge to challenge the Group’s current cost estimates and to inform our further procedures.  We obtained a sample of the Group’s quotations for remediation activities, as well as other internal and external underlying documentation for the Group’s determination of required future activities, their timing and associated cost estimates. We compared them to the nature, timing and quantum of cost contained in the provision balance. We compared the basis for recognition of the provision with the criteria in the accounting standards.  We made enquiries of various personnel regarding the Group’s strategy for remediating certain source contamination and compared these for consistency with our understanding of their strategy and its impact to the provision.  We challenged the Group where provisions were unable to be made for source contamination, in particular for treatment of Dense Non-Aqueous Phase Liquid source areas at Botany, New South Wales, in relation to the existence of information which would enable a reliable estimate of the provision to be made. We compared this to our understanding of the matter and the criteria in the accounting standards for recording a provision or contingent liability. INDEPENDENT AUDITOR’S REPORT (CONTINUED)

178

Orica LimitedAnnual Report 2023 reasonable predictor when evaluating forecast costs.  The expected timing of the expenditure given the long term nature of these exposures to the Group. The Group uses third party and internal experts to assist in the determination of strategies to remediate contamination and the costing of remediation activities.  We tested the mathematical accuracy of the Group’s provision models.  We assessed the Group’s disclosures using our knowledge of the business and the requirements of the accounting standards. In particular, we focused on the disclosure of uncertainties associated with the provision or exposure. Other Information Other Information is financial and non-financial information in Orica Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and the Annual Integrated Report Contents Elements Index and our related assurance opinions. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for:  preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001  implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error  assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

179

Orica LimitedAnnual Report 2023 Auditor’s responsibilities for the audit of the Financial Report Our objective is:  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 Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They 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 the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Orica Limited for the year ended 30 September 2023 complies with Section 300A of the Corporations Act 2001. Directors’ 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 responsibilities We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 September 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Gordon Sangster Partner Melbourne 8 November 2023 Chris Sargent Partner Melbourne 8 November 2023 OTHER INFORMATION

180

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

FIVE YEAR FINANCIAL STATISTICS
FOR THE YEAR ENDED 30 SEPTEMBER

Orica consolidated ($m)1

2023

2022

2021

2020(2)

2019(2)

Income Statement

Sales

Earnings before depreciation, amortisation,
net borrowing costs and tax

Depreciation and amortisation expense

Profit before financing costs and income tax

Net borrowing costs

Individually significant items before tax

Taxation expense

Non‑controlling interests

Profit/(loss) after tax and individually significant items

Individually significant items after tax attributable
to members of Orica Limited

Profit after tax before individually significant items net of tax

Dividends/distributions

Financial Position

Current assets

Property, plant and equipment

Equity accounted investees

Intangibles

Other non‑current assets

Total assets

Current borrowings and payables

Current provisions and other liabilities

Non‑current borrowings and payables

Non‑current provisions and other liabilities

Total liabilities

Net assets

7,945.3

7,327.5

5,682.2

5,611.3

5,878.0

1,090.6

(392.5)

698.1

(143.7)

(171.2)

(131.8)

44.3

295.7

(73.3)

369.0

181.3

3,095.1

3,360.3

326.5

1,406.4

578.9

8,767.2

1,622.2

337.6

2,339.4

416.2

964.3

(385.8)

578.5

(100.3)

(274.0)

(155.2)

11.1

60.1

(256.9)

317.0

120.3

3,309.5

3,082.3

323.8

1,142.9

509.3

8,367.8

2,190.6

289.6

1,724.9

433.5

796.4

(369.8)

426.6

(105.6)

(453.9)

(31.0)

(9.9)

(173.8)

(382.2)

208.4

97.5

2,391.6

3,040.2

290.4

1,150.4

493.1

7,365.7

945.8

(332.1)

613.7

(159.0)

(293.1)

(70.1)

(9.2)

82.3

(216.8)

299.1

192.6

2,664.0

3,267.0

301.6

1,440.3

530.6

8,203.5

941.1

(276.4)

664.7

(109.7)

(195.9)

(108.6)

(5.4)

245.1

(126.8)

371.9

203.0

1,835.8

2,885.2

301.3

1,483.0

635.1

7,140.4

1,225.4

1,848.4

1,336.7

443.4

321.0

2,270.6

2,368.9

633.9

724.8

5,263.1

297.9

1,979.4

659.6

4,273.6

4,715.4

4,638.6

4,573.3

4,051.8

3,729.2

2,792.4

2,940.4

2,866.8

Equity attributable to ordinary shareholders of Orica
Limited

3,988.7

3,685.8

2,726.3

2,892.6

2,809.6

Equity attributable to non‑controlling interests

63.1

43.4

66.1

47.8

57.2

Total shareholders’ equity

4,051.8

3,729.2

2,792.4

2,940.4

2,866.8

1. Results include continuing and discontinued operations for the consolidated Group.

2. The results for 2020 and the closing balance sheet for 2019 have been restated in 2021 Annual Report for the impact of IFRIC Interpretation Configuration

or Customisation Costs in a Cloud Computing Arrangement.

181

Orica LimitedAnnual Report 2023FIVE YEAR FINANCIAL STATISTICS (CONTINUED)

Orica consolidated1

Number of ordinary shares on issue at year end (millions)

2023

455.5

2022

452.8

2021

407.5

20202

405.9

20192

380.6

Weighted average number of ordinary shares
on issue (millions)

Basic earnings per ordinary share

– before individually significant items (cents)

– including individually significant items (cents)

Dividends per ordinary share (cents)

Dividend franking (percent)

Dividend yield – based on year end share price (percent)

Closing share price range – High

Low

Year end

Stockmarket capitalisation at year end (millions)

Net tangible assets per share ($)

Ratios

Profit margin – earnings before net borrowing
costs and tax/sales (percent)

Net debt (excluding lease liabilities) (millions)

Gearing (net debt/net debt plus equity excluding
lease liabilities) (percent)

Interest cover (EBIT/net borrowing costs excluding
lease interest) (times)

Net capital expenditure on plant and equipment
(Cash Flow) (millions)

Net cash flow from sale of businesses/controlled/
(acquisition) entities (millions)

Return on average shareholders’ funds

– before individually significant items (percent)

– including individually significant items (percent)

454.2

414.8

406.8

395.6

380.0

81.2

65.1

43.0

–

2.8

$16.70

$12.83

$15.59

7,101.1

5.67

8.8

923.3

18.6

5.4

76.4

14.5

35.0

–

2.6

$17.22

$13.08

$13.22

51.2

(42.7)

24.0

–

1.7

$17.61

$11.17

$13.79

75.6

20.8

33.0

–

2.1

$24.27

$13.25

$15.43

97.9

64.5

55.0

9.1

2.4

$22.97

$16.31

$22.54

5,986.1

5,619.6

6,262.7

8,578.2

5.62

3.82

3.58

3.49

7.9

912.2

19.7

6.5

7.5

10.9

11.3

1,479.0

1,820.5

1,620.6

34.6

38.2

36.1

4.6

4.2

6.1

(406.7)

(308.7)

(153.0)

(302.9)

(226.0)

(267.2)

109.7

(25.1)

(153.9)

(14.0)

9.6

7.7

9.9

1.9

7.4

(6.2)

10.5

2.9

13.0

8.6

1. Results include continuing and discontinued operations for the consolidated Group.

2. The results for 2020 and the closing balance sheet for 2019 have been restated in 2021 Annual Report for the impact of IFRIC Interpretation Configuration

or Customisation Costs in a Cloud Computing Arrangement.

182

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

SHAREHOLDERS’ STATISTICS
AS AT 16 OCTOBER 2023

Distribution of ordinary shareholders and shareholdings

Size of holding
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total

Number of Holders

Number of Shares

22,339
10,636
1,223
535
41

64.24
30.59
3.52
1.54
0.11
100.00

8,297,570
22,814,680
8,397,102
10,277,454
405,704,752

1.82
5.01
1.84
2.26
89.07
100.00

Included in the above total are 652 shareholders holding less than a marketable parcel of 33 shares.

The holdings of the 20 largest holders of fully paid ordinary shares represent 87.79% of that class of shares.

The names of substantial shareholders in the company, and the number of fully paid ordinary shares in which each has an interest, as disclosed
in substantial shareholder notices to the Company on the respective dates, are as follows:

18 July 2023
13 July 2023
4 July 2023
31 July 2020

Cooper Investors Pty Limited
Vanguard Group
AustralianSuper Pty Ltd
BlackRock Group

Voting rights

28,123,715
22,858,902
64,265,668
25,052,218

6.174%
5.019%
14.15%
6.17%

Voting rights as governed by the Constitution of the Company provide that each ordinary shareholder present in person or by proxy at a meeting
shall have:

(a) on a show of hands, one vote only; and

(b) on a poll, one vote for every fully paid ordinary share held.

Twenty largest ordinary fully paid shareholders

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
ARGO INVESTMENTS LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
BNP PARIBAS NOMS (NZ) LTD
BROADGATE INVESTMENTS PTY LTD
NETWEALTH INVESTMENTS LIMITED
NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
CARLTON HOTEL LIMITED
UBS HOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
WARBONT NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
Total

183

Shares
157,144,260
135,831,310
55,837,473
20,235,793
8,430,106
4,138,823
3,670,383
3,229,377
2,737,599
2,555,364
1,142,454
713,802
711,574
685,260
661,233
541,764
422,260
401,427
379,553
364,668
399,834,483

% of Total
34.50
29.82
12.26
4.44
1.85
0.91
0.81
0.71
0.60
0.56
0.25
0.16
0.16
0.15
0.15
0.12
0.09
0.09
0.08
0.08
87.79

Orica LimitedAnnual Report 2023DEFINITIONS AND GLOSSARY OF TERMS

We endeavour to use simple, clear language in our reporting suite. However, the nature of our operations means we do use a number of
technical terms and abbreviations. The main ones are described below, together with an explanation of their meanings. The descriptions
are not formal legal definitions.

1.5°C world

ACCU

ASIC

Assets

ASX

Business as usual (BAU)

Carbon

Carbon credit

Cash generation efficiency –
continuing operations

CCUS

CDP

Community investment

CPS
EBIT

EBITDA

Fatalities

Financial year

Future‑facing commodities (FFC)

Gearing

GHG (Greenhouse gases)

According to the Intergovernmental Panel on Climate Change, knowledge‑base and assessment
approaches used to understand the impacts of 1.5°C global warming above pre‑industrial levels
and related global greenhouse gas emission pathways, in the context of strengthening the
global response to the threat of climate change, sustainable development and efforts to
eradicate poverty.
Australian Carbon Credit Unit, the name of carbon credits generated in the Australian carbon
market. See ‘carbon credit’ below for more information.
asic.gov.au
Australian Securities and Investments Commission.
Assets are a set of one or more geographically proximate operations (including open‑cut mines,
underground mines, and onshore and offshore oil and gas production and production facilities).
Assets include our operated and non‑operated assets.
asx.com.au
Australian Securities Exchange.
The projected impact under a baseline scenario in which no additional mitigation policies
or measures are implemented beyond those that are already in force, legislated or planned
to be adopted.
At times used instead of greenhouse gases.

Carbon credits represent the measurable, verifiable emissions reductions from carbon credit
projects – specifically projects that reduce, remove or avoid greenhouse gas emissions. Carbon
credit projects create eligible carbon credit units which can be traded between entities in carbon
markets. One carbon credit unit represents one tonne of carbon dioxide equivalent (tCO2‑e)
sequestered or avoided by a carbon credit project. Often used interchangeably with the term
“carbon offsets” or “offset credits”.
Our ability to generate cash from current business operations. Calculated as earnings before
interest, tax, depreciation and amortisation (EBITDA) less (average trade working capital
movements, income tax paid, net dividends/(earnings) from associates, and sustaining capital
expenditure) divided by EBITDA.
Carbon capture, utilisation, and storage.

Formerly the Carbon Disclosure Project, CDP is a not‑for‑profit charity that runs the global
disclosure system for investors, companies, cities, states, and regions to manage their
environmental impacts. Orica responds to the annual Climate Change Questionnaire.
Community investment includes financial contributions made to benefit community activities
and organisations made at the local, regional and corporate levels.
Cents per share.
Equivalent to profit / (loss) before financing costs and income tax, as disclosed in Note 1(b)
to the financial statements, before individually significant items.
EBIT before individually significant items and depreciation and amortisation expense.

Fatalities are categorised by a review of Orica’s degree of control over circumstances of the event
leading to the fatality. We record non‑work related and third‑party fatalities separate to this
metric. Third‑party fatalities are incidents that occur beyond our Orica‑controlled operations
and network.
For Orica this is an accounting year ending on 30 September. Also known as a fiscal year.

Includes copper, nickel, lithium, cobalt and other metals and minerals. As much of the world
continues to move towards an energy transition, demand for future‑facing commodities will grow.
These commodities are crucial to the manufacture of low emissions technologies that enable
a transition such as batteries for electric vehicles (e.g., nickel, lithium, cobalt), solar panels
(e.g. copper, silicon) and wind turbines (e.g. rare earth materials, copper) for renewable energy.
To achieve the goals of the Paris Agreement, production and supply of these commodities will
need to scale and increase at pace.
Net debt/(net debt + equity), where net debt excludes lease liabilities, as disclosed in Note 3
to the financial statements.
Gases which absorb and re‑emit infrared radiation, thereby trapping it in Earth’s atmosphere.
Includes carbon dioxide (CO2), water vapour, methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen
trifluoride (NF3). The GHGs applicable to Orica’s operations and reporting are CO2, CH4 and N2O.

184

Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

DEFINITIONS AND GLOSSARY OF TERMS (CONTINUED)
DEFINITIONS AND GLOSSARY OF TERMS (CONTINUED)

Grade or Quality

GHG Protocol

Gross GHG emissions

Groundwater

Global warming potential (GWP)

Hexachlorobenzene (HCB)

Inclusion index

Intergovernmental Panel
on Climate Change (IPCC)

KPI
Kt

KtCO2‑e

Loss of containment

Low‑carbon ammonia

Low‑carbon AN

Low‑carbon hydrogen

Material

NAP

Net GHG emissions

Net zero

NPAT

Paris Agreement

Gigajoule, a unit of measurement of energy consumption.

Any physical or chemical measurement of the characteristics of the material of interest in samples
or product.
The GHG Protocol establishes comprehensive global standardised frameworks to measure and
manage greenhouse gas emissions from private and public sector operations, value chains and
mitigation actions, and supplies the world’s most widely used greenhouse gas accounting
standards. Orica uses the Corporate Accounting and Reporting Standard as well as the Corporate
Value Chain (Scope 3) Standard.
Also referred to as ‘absolute’ emissions, gross emissions refer to total reported GHG emissions
in a reporting period (e.g. Orica financial year), before any eligible units and certificates have
been accounted for.
Groundwater is the general term for water in the ground. Underground water bodies are known
as aquifers.
Factors describing the radiative forcing impact (degree of harm to the atmosphere) of one unit
of a given greenhouse gases relative to one unit of CO2. The factors convert values into tCO2‑e,
to allow comparison between greenhouse gases inventories.
A by‑product from manufacture of carbon tetrachloride and perchloroethylene at the former
Solvents Plant. This waste is stored on BIP in licensed storage depots whilst a destruction solution
is identified.
An index used to measure sense of belonging and inclusion by our people. This data is collected
through our employee engagement survey ‘Our Say’.
The IPCC is an intergovernmental body of the United Nations responsible for advancing
knowledge on human‑induced climate change. It provides policymakers with regular scientific
assessments on climate change, its implications and potential future risks, as well as putting
forward adaptation and mitigation options. Through its assessments, the IPCC determines
the state of knowledge on climate change.
Kilolitres.

Key performance indicator.
Kilotonnes.

Kilotonnes of carbon dioxide equivalent.

The number of incidents where a contained substance escapes from containment and results
in a Severity 1 or greater environmental impact on water or soil.
Ammonia manufactured using 100% renewable hydrogen or low‑carbon hydrogen, or a blend
of both.
An internal definition covering ammonium nitrate (AN) products manufactured with nitric acid
from plants utilising catalytic abatement technology eliminating at least 95% of nitrous oxide
emissions, and/or a low‑carbon ammonia feedstock.
Broad grouping for both ‘green’ and ‘blue’ hydrogen sources. Renewable (green) hydrogen is
made via electrolysis using 100% renewable energy, blue hydrogen is made using fossil fuel
feedstock (e.g. gas steam methane reforming or gasification of coal) in addition to using CCS to
capture and sequester ~90% of emissions generated.
Square meter.

In the context of the International Integrated Reporting (IR) Framework, a matter is material if it
could substantively affect the organisation’s ability to create value in the short, medium and long
term. The process of determining materiality is entity specific and based on industry and other
factors, as well as multi‑stakeholder perspectives.
Million tonnes.

Nitric Acid Plant.

Reported GHG emissions in a reporting period (Orica financial year) after applying claimable
emissions reductions or surrenders from carbon credit units. Includes generated carbon credits
which have not been surrendered but sold on to a third party or banked in a carbon credit registry.
Net zero refers to achieving an overall balance between greenhouse gas emissions produced and
greenhouse gas emissions taken out of the atmosphere.
Net profit/loss after tax attributable to shareholders of Orica Limited.

Convened by the United Nations Framework Convention on Climate Change (UNFCCC), the Paris
Agreement is a legally binding international treaty on climate change. It was adopted by 196
Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.

185

Orica LimitedAnnual Report 2023DEFINITIONS AND GLOSSARY OF TERMS (CONTINUED)

Paris Agreement goals

Paris aligned

Power purchase agreement (PPA)

RONA – continuing operations

Renewable hydrogen

Safeguard Mechanism

Scope 1 and 2 GHG emissions

Scope 1 greenhouse gas emissions

Scope 2 greenhouse gas emissions

Scope 3 greenhouse gas emissions

Serious injury case rate
including fatalities (SICR)

Serious life‑changing injury
case rate (SLICR)
Surrenders

Target

tCO2‑e

TIER

Women in senior leadership

The central objective of the Paris Agreement is to avoid dangerous climate change by limiting
global warming to well below 2°C and pursuing efforts to limit it to 1.5°C above pre‑industrial
levels. Additionally, the agreement aims to increase the ability of countries to deal with the
impacts of climate change, and at making finance flows consistent with a low GHG emissions
and climate‑resilient pathway.
Aligned to the Paris Agreement goals.

A type of contract that allows a consumer, typically large industrial or commercial entities, to form
an agreement with a specific energy generating unit. The contract itself specifies the commercial
terms including delivery, price, payment, etc. In many markets, these contracts secure a long‑term
stream of revenue for an energy project. In order for the consumer to say they are buying the
electricity of the specific generator, attributes shall be contractually transferred to the consumer
with the electricity.
RONA is defined as EBIT/Net operating assets. Net operating assets is defined as rolling 12‑month
average assets including net property, plant and equipment; intangibles at NBV; current and
non‑current investments in associates at current carrying value; trade working capital; non‑trade
working capital excluding environmental provisions.
Hydrogen produced via electrolysis of water, using renewable electricity. Renewable electricity
may be sourced directly (e.g. solar generation) or via grid‑connected supply supported with the
retirement of renewable energy certificates. Also referred within the sector to as green hydrogen.
The Safeguard Mechanism is the Australian Government’s policy for reducing emissions at
Australia’s largest industrial facilities. It legislates baselines on the greenhouse gas emissions of
these facilities, which will decline on a trajectory consistent with achieving Australia’s emission
reduction targets of 43% below 2005 levels by 2030 and net zero by 2050.
The total amount of net greenhouse gas emissions measured in kilotonnes of carbon dioxide
equivalent that can be directly attributed to Orica’s business activities (Scope 1, i.e., chemical
processes) or indirectly from purchased electricity, heat, steam, or cooling (Scope 2).
Scope 1 greenhouse gas emissions are direct emissions from operations that are owned or
controlled by the reporting company. For Orica, these are primarily emissions from industrial
manufacturing processes and natural gas feedstocks.
Scope 2 greenhouse gas emissions are indirect emissions from the generation of purchased
or acquired electricity, steam, heat or cooling that is consumed by operations that are owned
or controlled by the reporting company.
Scope 3 greenhouse gas emissions are all other indirect emissions (not included in Scope 2)
that occur in the upstream and downstream value chain.
The number of serious injuries or illnesses that occur in the workplace for every 200,000 hours
worked. Serious injuries are those which result in lost work time, and include fatalities, temporary
or permanent disablement, hospitalisations, and less significant injuries where the affected person
is unable to attend work for a day or more.
The number of serious life‑changing injuries that occur in the workplace for every
200,000 hours worked.
The surrendering of carbon credit units in a registry (and/or delivery of generated units to
government through regulatory schemes) to make claimable emissions reductions in a GHG
emissions inventory, leading to a reported net GHG emissions figure.
Refers to a goal Orica is aiming to achieve where we have developed a delivery pathway.

Tonne of carbon dioxide equivalent.

Technology Innovation and Emissions Reduction Regulation (Government of Alberta, Canada)

The percentage of executive positions within the Band D (Senior Manager) level and above
(i.e., CEO 2 (Band D+)) that are held by women.

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Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INTEGRATED REPORTING CONTENT
ELEMENTS INDEX

Content element Section reference

Page

Content element Section reference

A. Organisational overview and external environment

E. Strategy and resource allocation (continued)

2‑3
8‑11

14‑15
16‑17
18‑19
20‑21
31
34‑35
18‑19

26‑27

8‑11

26
32‑33
79
80‑81

86‑110

8‑11

16‑17
31
32‑33

38‑41
42‑50
52‑57
58‑61
62‑68
70‑73

18‑19
26‑27
28‑30
34‑35

What does Orica
do and what are
the circumstances
under which
it operates?

External
environment

B. Governance
How does the
organisation’s
governance
structure support
its ability to create
value in the short,
medium and
long term?

C. Business
Model
What is the
organisation’s
business model
including key;
inputs, business
activities, outputs
and outcomes?

Our FY2023 reporting suite
Letter from our Chairman and
Managing Director
Our global footprint
How we create value
Our operating context
Our strategy
Our business model
Our stakeholders
Our operating context

Risk

Letter from our Chairman and
Managing Director
Risk – Our approach to risk management
Key performance indicators
Governance – Board skills and experience
Governance – Board and Board
Committee focus areas during FY2023
Remuneration report

Letter from our Chairman and
Managing Director
How we create value
Our business model
Key performance indicators
Our performance:
– Safe and responsible business
– Financial performance
– Customer, technology and innovation
– People and capabilities
– Climate and the natural environment
– Community and relationships

Our operating context
Risk
Material risks and opportunities
Our stakeholders

D. Risks and opportunities
What are the
specific risks and
opportunities that
affect the
organisation’s
ability to create
value over the
short, medium
and long term,
and how is the
organisation
dealing with
them?
E. Strategy and resource allocation
Where does the
organisation want
to go and how
does it intend
to get there?

Letter from our Chairman and
Managing Director
Our strategy
Our strategy – Progress against
our strategy
Our performance:
– Safe and responsible business
– Financial performance

F. Performance
To what extent has
the organisation
achieved its
strategic objectives
for the period
and what are
its outcomes in
terms of effects
on the capitals?

G. Outlook
What challenges
and uncertainties
is the organisation
likely to encounter
in pursuing its
strategy, and what
are the potential
implications for its
business model
and future
performance?

– Customer, technology and innovation
– People and capabilities
– Climate and the natural environment
– Community and relationships

FY2023 performance snapshot
Letter from our Chairman and
Managing Director
Our strategy – Progress against
our strategy
Key performance indicators
Our stakeholders
Our performance:
– Safe and responsible business
– Financial performance
– Customer, technology and innovation
– People and capabilities
– Climate and the natural environment
– Community and relationships

Letter from our Chairman and
Managing Director
How we create value
Our operating context
Risk
Material risks and opportunities
Our performance:
– Safe and responsible business
– Financial performance
– Customer, technology and innovation
– People and capabilities
– Climate and the natural environment
– Community and relationships

Our FY20223 reporting suite
How we create value
Our operating context
Risk
Material risks and opportunities
ESG data centre

H. Basis of preparation and presentation
How does the
organisation
determine what
matters to include
in the integrated
report and how
are such matters
quantified or
evaluated?
Summary of
materiality
definition process
Reporting
boundary

Our FY2023 reporting suite

Our FY2023 reporting suite
Notes to the Financial Statements –
Basis of preparation
Our FY2023 reporting suite
Risk
Key performance indicators
Notes to the Financial Statements –
Basis of preparation
Definitions and glossary of terms

Page

52‑57
58‑61
62‑68
70‑73

2‑3
8‑11

22‑24

32‑33
34‑35

38‑41
42‑50
52‑57
58‑61
62‑68
70‑73

8‑11

16‑17
18‑19
26‑27
28‑30

38‑41
42‑50
52‑57
58‑61
62‑68
70‑73

2‑3
16‑17
18‑19
26‑27
28‑30

2‑3

2‑3
119

2‑3
26‑27
32‑33
119

184‑186

Summary of
frameworks
and methods

8‑11

20‑21
22‑24

38‑41
42‑50

187

Orica LimitedAnnual Report 2023INDEPENDENT LIMITED ASSURANCE REPORT
CONTENT ELEMENTS INDEX

Independent Limited Assurance Report

To the Directors of Orica Limited

Limited Assurance Report on the Content Elements Index

Conclusion

Based on the evidence we obtained from the procedures performed, we are not aware of any material

misstatements in the Content Elements Index, which has been prepared by Orica, in accordance with the Criteria for

the year ended 30 September 2023

Information Subject to Assurance

Orica Limited (Orica) engaged KPMG to perform a limited assurance engagement in relation to the Integrated Reporting
Content Elements Index (Content Elements Index), for the year ended 30 September 2023, which is located on page 187
of the Annual Report 2023.

Criteria Used as the Basis of Reporting

The Contents Elements Index is prepared in accordance with the International Financial Reporting Standards (IFRS)
Foundation's Integrated Reporting Framework (“the Criteria”).

Basis for Conclusion

We conducted our work in accordance with Australian Standard on Assurance Engagements ASAE 3000 (Standard)
Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In accordance with the
Standard, we have:

• Used our professional judgement to plan and perform the engagement to obtain limited assurance that we are
not aware of any material misstatements in the Content Elements Index whether due to fraud or error;

• Considered relevant internal controls when designing our assurance procedures, however we do not express

a conclusion on their effectiveness; and

ensured that the engagement team possess the appropriate knowledge, skills and professional competencies.

Summary of Procedures Performed

Our limited assurance conclusion is based on the evidence obtained from performing the following procedures:

•

Interviews with management responsible for the preparation of the Content Elements Index and Annual
Report 2023;

• Assessing the appropriateness and completeness of the disclosures in the Annual Report 2023 that the

Contents Elements Index references to;

• Reconciling the sections and page numbers included in the Content Elements Index to the disclosures within

the Annual Report 2023, Materiality Supplement 2023 and the Criteria; and

• Review of final draft Annual Report 2023 for consistency.

1
2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under
license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards
Legislation.

188

Orica LimitedAnnual Report 2023

Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INDEPENDENT LIMITED ASSURANCE REPORT (CONTINUED)

Limitations of our Review

Our limited assurance engagement focused on whether the Content Elements Index was reflected in the Annual Report
2023 and did not extend to assessing the accuracy or validity of any statements made throughout the Annual Report 2023.
KPMG has not been engaged to provide an assurance conclusion on the appropriateness or the operating effectiveness
of the Orica strategy or how Orica creates value, including the governance, strategic management and other key business
processes.

The Annual Report 2023 includes prospective information. Inherent to prospective information, the actual future results
are uncertain. We do not provide any assurance on the assumptions and achievability of prospective information in the
Annual Report 2023.

How the Standard Defines Limited Assurance and Material Misstatement

The procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than
for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.

Misstatements, including omissions, are considered material if, individually or in the aggregate, they could reasonably be
expected to influence relevant decisions of the Directors of Orica Limited.

Use of this Assurance Report

This report has been prepared for the Directors of Orica Limited for the purpose of providing an assurance conclusion on
the Content Elements Index and may not be suitable for another purpose. We disclaim any assumption of responsibility
for any reliance on this report, to any person other than the Directors of Orica Limited, or for any other purpose than that
for which it was prepared.

Management Responsibility

Management are responsible for:

• determining that the Criteria is appropriate to meet their needs

• preparing and presenting the Content Elements Index in accordance with the Criteria; and

• establishing internal controls that enable the preparation and presentation of the Content Elements Index that is

free from material misstatement, whether due to fraud or error.

Responsibility

Our responsibility is to perform a limited assurance engagement in relation to the Content Elements Index for the 30
September 2023, and to issue an assurance report that includes our conclusion.

Our Independence and Quality Management

We have complied with our independence and other relevant ethical requirements of the Code of Ethics for Professional
Accountants (including Independence Standards) issued by the Australian Professional and Ethical Standards Board, and
complied with the applicable requirements of Australian Standard on Quality Management 1 to design, implement and
operate a system of quality management.

KPMG

Sarah Newman

Director, KPMG

Melbourne

8th November 2023

2
2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under
license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards
Legislation.

189

Orica LimitedAnnual Report 2023

INDEPENDENT LIMITED ASSURANCE REPORT
SELECTED PERFORMANCE METRICS

190

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Independent Limited Assurance Report to the Management and Directors of Orica Limited Our Conclusion: Ernst & Young (‘EY’, ‘we’) were engaged by Orica Limited (‘Orica’) to undertake a limited assurance engagement as defined by International Auditing Standards, hereafter referred to as a ‘review’, over the selected disclosures (‘Selected Performance Disclosures’) defined below for the year ended 30 September 2023. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe the Selected Performance Disclosures have not been prepared, in all material respects, in accordance with the Criteria defined below. What our review covered We reviewed the Selected Performance Disclosures in Orica’s Annual Report 2023 and Climate Action Report 2023 (collectively the ‘Report’) as presented in Table 1 below. Table 1 – Selected Performance Disclosures Selected Performance Disclosures Value ► Gross* Scope 1 and 2 greenhouse gas (GHG) emissions in kilotonnes of carbon dioxide equivalent (ktCO2-e) ► Gross* Scope 3 GHG emissions associated with purchased ammonium nitrate (AN) and ammonia (ktCO2-e) ► Scope 1, 2 and 3 (Scope 3 purchased volumes of AN and ammonia only) GHG emissions intensity per tonne AN product sold (tCO2-e/t) ► Gross* Scope 1 and 2 emissions reduction, from FY2019 levels (%) ► Potable water consumption intensity per tonne of AN manufactured for six material sites (kL/t) ► Women in senior leadership (%) 1,704 5,040 1.59 22 1.57 34.8 * In FY2023 gross and net emissions are equivalent. Other than as described in the preceding paragraphs, which set out the scope of our engagement, we did not perform assurance procedures on the remaining information included in the Report, and accordingly, we do not express an opinion or conclusion on this information. Criteria applied by Orica In preparing the Selected Performance Disclosures, Orica applied the following Criteria: ► National Greenhouse and Energy Reporting Act 2007 ► National Greenhouse and Energy Reporting Regulations 2008 ► National Greenhouse and Energy Reporting (Measurement) Determination, as compiled 1 July 2022 ► International Greenhouse Account Factors, equivalent to the Australian National Greenhouse Account Factors, February 2023 ► Orica's methodology for reporting Scope 3 emissions, progress against emissions reduction targets, potable water consumption intensity and women in senior leadership Key responsibilities Orica’s responsibility Orica’s management is responsible for selecting the Criteria, and for presenting the Selected Performance Disclosures in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the subject matter, such that it is free from material misstatement, whether due to fraud or error. EY’s responsibility and independence Our responsibility is to express a conclusion on the Subject Matter based on our review. We have complied with the independence and relevant ethical requirements, which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The firm applies Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our approach to conducting the review We conducted this review in accordance with the International Auditing and Assurance Standards Board’s International Standard on Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE3000’) and the terms of reference for this engagement as agreed with Orica on 18 May 2023. That standard requires that we plan and perform our engagement to express a conclusion on whether anything has come to our attention that causes us to believe that the Subject Matter is not prepared, in all material respects, in accordance with the Criteria, and to issue a report. Summary of review procedures performed A review consists of making enquiries, primarily of persons responsible for preparing the Selected Performance Disclosures and related information and applying analytical and other review procedures. Orica LimitedAnnual Report 2023Introduction and Overview

Our Business

Our Performance

Governance

Directors’ Report

Financial Report

Other Information

INDEPENDENT LIMITED ASSURANCE REPORT (CONTINUED)

191

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Page 2 The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risk of material misstatement, whether due to fraud or error. The procedures we performed included, but were not limited to: ► Conducted interviews with personnel to understand the business and reporting process ► Conducted interviews with key personnel to understand the process for collecting, collating and reporting the Subject Matter during the reporting period ► Conducted site visits to the Yarwun, Kooragang Island and Deer Park facilities ► Assessed that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the Criteria ► Undertook analytical review procedures to support the reasonableness of the data ► Identified and tested assumptions supporting calculations ► Tested, on a sample basis, underlying source information to assess the accuracy of the data ► Checked the presentation of the Subject Matter in the Report We believe that the evidence obtained is sufficient and appropriate to provide a basis for our review conclusion. Inherent limitations Procedures performed in a review engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a review engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance. While we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to assessing aggregation or calculation of data within IT systems. The greenhouse gas quantification process is subject to scientific uncertainty, which arises because of incomplete scientific knowledge about the measurement of greenhouse gases. Additionally, greenhouse gas procedures are subject to estimation and measurement uncertainty resulting from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge. Other matters We have not performed assurance procedures in respect of any information relating to prior reporting periods, including those presented in the Selected Performance Disclosures. Our report does not extend to any disclosures or assertions made by Orica relating to future performance plans and/or strategies disclosed in Orica’s Annual Report 2023, Climate Action Report 2023 and supporting disclosures online. Use of our Assurance Report We disclaim any assumption of responsibility for any reliance on this assurance report to any persons other than management and the Directors of Orica, or for any purpose other than that for which it was prepared. Our review included web-based information that was available via web links as of the date of this statement. We provide no assurance over changes to the content of this web-based information after the date of this assurance statement. Ernst & Young Melbourne, Australia 08 November 2023 Orica LimitedAnnual Report 2023CORPORATE DIRECTORY

Investor information

Share registry

Registered and head office

Orica Limited
Level 3, 1 Nicholson Street
East Melbourne, Victoria
Australia 3002

Postal address

PO Box 4311
Melbourne, Victoria
Australia 3001
P + 61 3 9665 7111

Investor relations

P +61 3 9665 7774
E investorrelations@orica.com

Stock exchange listings

If you have queries relating to your
shareholding or wish to update
your personal or payment details,
please contact the Share Registrar.

Link Market Services Limited
Level 12, 680 George Street
Sydney South NSW,
Australia 1235

Toll Free 1300 301 253 (Australia only)
International +61 1300 301 253
E orica@linkmarketservices.com.au
W www.linkmarketservices.com.au

Annual general meeting

The 2023 Annual General Meeting
of Orica Limited will be held on
Wednesday, 13 December 2023
at 10:30am (Melbourne time).

Orica’s shares are listed on the Australian
Securities Exchange (ASX: ORI)

Website

To view the FY2023 Annual Reporting Suite,
shareholder information, news announcements,
and further information on Orica visit the
company website at www.orica.com

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