Dyno Nobel (DNL) investor relations material

Strategic transformation and business focus

• Completed divestment of fertilizer business, establishing a pure-play explosives company with a focused portfolio and resilient earnings base.

• Achieved significant portfolio simplification, improved operating performance, and set a clear path for long-term shareholder value.

• On track to double EBIT from AUD 300 million in 2023 to AUD 600 million by 2028, with a new ambition of AUD 800 million by 2031.

• Transformation initiatives have delivered AUD 183 million uplift to date, targeting AUD 300 million by FY28 and AUD 500 million by FY31.

• Defense energetics identified as a compelling adjacency, with capabilities directly transferable from core business and major US government contracts secured.

Financial guidance and capital allocation

• FY26 EBIT guidance narrowed to AUD 480–490 million, with group NPAT expected at AUD 325–340 million and capex at AUD 265–285 million.

• Interest expense and effective tax rate expected to be lower than previously guided.

• High contract coverage: 80–90% of FY26 revenue under contract, providing strong earnings visibility.

• Capital allocation framework balances growth, resilience, and shareholder returns, with surplus capital returned via dividends and buybacks.

• ROIC projected to remain above WACC, with investment grade credit rating and cash conversion of 60–75%.

Growth platforms and market opportunities

• North America and Asia-Pacific are core regions, with strong market positions and robust demand in mining and infrastructure.

• Recent contract wins in Latin America and Africa, including Vale in Brazil and AngloGold Ashanti in Ghana, support international expansion.

• Modular, capital-light entry models and strategic partnerships enable disciplined expansion in emerging markets.

• Premium technology adoption (e.g., Differential Energy, Nobel Fire, Autonomous Bench) drives customer value and margin expansion.

• Defence energetics business expanding with Nitradyn JV, first TNT production at Graham, Kentucky expected in 2028, and IMX production in 2030.