Dyno Nobel (DNL) Investor Update summary

Strategic update and transaction status

• Negotiations for the sale of the fertilizer business to PT Pupuk Kalimantan Timur have ended due to value and timing risks, with no active negotiations underway.

• Focus has shifted to capital management and a share buyback, while structural separation of Dyno Nobel and the fertilizer business remains a strategic priority, though a demerger is not being pursued.

• Management teams are now largely dedicated to their respective businesses, with minimal overlap.

• The company remains open to future opportunities to maximize value for the fertilizer business and will continue to assess options for structural separation.

Capital management and buyback

• Announced commencement of an on-market share buyback program of up to AUD 900 million, prioritizing shareholder returns.

• Buyback is enabled by the conclusion of the sale process and is consistent with prior commitments following the Waggaman transaction.

• Balance sheet will be managed to maintain investment grade and net debt/EBITDA at 1.5x.

• Capital allocation will prioritize the buyback, with organic growth initiatives for Dyno Nobel also supported.

• Inorganic growth opportunities will be considered only after the buyback and transformation project are executed.

Operational and financial outlook

• Fiscal year 2024 earnings outlook remains in line with previous half-year statements.

• Fertilizer distribution business continues to improve margins and market share; full-year production volumes expected at the lower end of guidance.

• Phosphate Hill plant is profitable at current spot DAP and gas prices, with gas cost position improved by AUD 30 million year-on-year.

• Sulfuric acid supply for Phosphate Hill is secured through 2030, unaffected by Glencore closures.

• Dyno Nobel business performance remains consistent and strong, as previously reported.