Incitec Pivot : 2021 AGM Addresses

For personal use only

	ABN 42 004 080 264
	Level 8, 28 Freshwater Place
	Southbank, Victoria 3006
	GPO Box 1322
	Melbourne, Victoria 3001
	T: 61 3 8695 4400
	F: 61 3 8695 4419
17 December 2021	www.incitecpivot.com.au
The Manager
Market Announcements Office
Australian Securities Exchange

ELECTRONIC LODGEMENT

Dear Sir or Madam

2021 Annual General Meeting

In accordance with the Listing Rules, attached are copies of the addresses to be given at the AGM by Incitec Pivot Limited's:

• Chairman;
• Managing Director & CEO; and
• Chairman of the Remuneration Committee.

A copy of the slides accompanying the Managing Director & CEO's address are also attached.

Authorised by: Richa Puri, Company Secretary

For personal use only

ASX RELEASE

2021 ANNUAL GENERAL MEETING - 17 DECEMBER 2021

CHAIRMAN'S ADDRESS, BRIAN KRUGER

Our business once again successfully navigated the challenges of the global pandemic and produced a strong overall performance, while also advancing our strategic agenda.

Crucially, this has included a significant emphasis on sustainability and, during Fiscal 21 we released our first Climate Change Report which sets out our Ambition to be Net Zero by 2050, or sooner if practicable. I will talk in detail about our actions on climate change soon.

We had a core focus throughout the year on the safety of our people, customers and communities, enabling us to continue to safely operate and service our resources and agricultural customers.

Overall, our company reported a 51% increase in Earnings Before Interest and Tax excluding Individually Material Items (or IMIs) to $566m.

Our Net Profit after Tax - excluding IMIs - of $359m, was up 91% compared to Fiscal 20, as we benefited from a significant improvement in commodity pricing during the year.

Our premium technology offering in our Dyno Nobel explosives business is continuing to gain traction with our customers and our explosives business proved resilient in Fiscal 21.

A standout in the result was our Fertilisers business which benefited from improved commodity pricing and a strong agricultural season.

We've reduced our net debt and maintained an investment grade credit profile, with a reduction in our Net Debt/EBITDA ratio from 1.4x to 1.1x at year end.

Our improved earnings performance, strong cash generation and balance sheet strength, resulted in a final dividend of 8.3 cents per share, taking our total dividend to 9.3 cents per share.

We continue to focus on improving our after tax return on invested capital, which increased to 5.8%.

Looking to the future, we're committed to ensuring we have an appropriate capital structure to support the opportunities ahead for our business, as well as delivering strong returns for shareholders.

And in Fiscal 22, we will continue to prioritise capital light, high return investment opportunities.

As I mentioned, climate change has been a significant area of focus and we are accelerating our efforts in exploring opportunities to help create a more sustainable world.

We will continue to listen and respond to the valuable input of our shareholders and broader stakeholders, and I acknowledge the two shareholder requisitions before you today.

For personal use only

The Board has carefully considered both of these.

Regarding Resolution 6A - the Board does not believe changing the company's constitution will enhance our ability to understand the views of our shareholders and broader stakeholders.

We already have a number of avenues available for shareholders and stakeholders to tell us what they think, including how we are doing on important issues such as our response to climate change.

At the same time, we are committed to evolving our climate change and sustainability disclosures to reflect stakeholder expectations and interests.

And at our Annual General Meeting next year, we intend to provide our shareholders with the opportunity to have an advisory 'Say on Climate' vote on our climate change management strategy.

We released for the first time this year a stand-alone Climate Change Report, fully aligned to the Task Force on Climate-Related Financial Disclosures guidelines.

This Report describes our pathway and ambition to reach Net Zero by 2050. It also sets out our short term 5% absolute greenhouse gas reduction target - which we brought forward to 2025 - and our commitment to a new, medium term target of 25% by 2030, both against our 2020 baseline.

Resolution 6B calls for these short and medium term targets, along with a Scope 3 target, to be aligned with the Paris Agreement.

Our Net Zero ambition by 2050 is aligned with the Paris Agreement and while our short and medium targets are not yet fully Paris-aligned, we will continue to investigate how we may achieve this, and as soon as possible.

A method for the Chemicals sector to set Science Based, Paris aligned, targets is currently being developed by the Science Based Target initiative. Our targets will be evaluated against this as soon as it is published.

Jeanne will outline next some specific projects that we are progressing as we look to accelerate our targets.

We have also outlined our opportunities to develop Scope 3 targets.

As part of our climate change strategy, we will continue to leverage our leading technology and manufacturing expertise to produce more sustainable products, with lower emissions, for our customers.

The emissions associated with fertiliser use make up half of our Scope 3 emissions. We will be able to set measurable targets for our lower emissions Enhanced Efficiency Fertiliser range when there is an independently accepted methodology to calculate the percentage reductions associated with these fertilisers.

For our Explosives business, we're investigating the greenhouse gas reductions associated with our world-class blasting technology Delta E, via a customer partnership. This technology continues to help customers reduce their carbon footprint and our partnership will quantify the greenhouse gas reductions associated with its use.

We recognise that we have more work to do, and in Fiscal 22 we will be enhancing our Scope 3 emission reduction strategy disclosure.

For personal use only

As we continue our pathway to Net Zero, our strategic decisions will be guided by the need to meet our targets and deliver shareholder returns.

We have put in place a robust governance structure at both a Board and executive level to do this.

Our Decarbonisation and Energy Transition Steering Committee has executive oversight of the development of our Net Zero Pathway and the implementation of projects to achieve it. Chaired by our Managing Director & CEO, the committee provides regular updates to the Board.

The committee includes key members of the Executive Team, including the Chief Strategy and Sustainability Officer - Sunil Salhotra - who joined us in October.

Our approach to decarbonisation is a just transition that will protect and sustain employment for our people and communities. And we will continue to listen and respond to the valuable input of our stakeholders, including from our shareholders here today.

Looking now at our broader strategy - and we're really pleased with our progress in what was operationally a very busy year.

In explosives, our business growth strategy has been aligned with changing customer demand profiles by segment and our market leading technology continues its momentum - including our new wireless product that has been very well received.

Our Fertilisers business has made good progress repositioning our stable distribution earnings for growth and is well placed to benefit from favourable commodity prices and agricultural conditions as it grows to a sustainable soil health company.

In manufacturing, we see a lot of potential upside from a step change in reliability, following the heavy turnaround schedule that commenced in Fiscal 21 and that will be completed in Fiscal 22.

During the year we welcomed Tonianne Dwyer as a Non-executive Director to our Board and Tonianne has been a valuable addition, bringing extensive international experience as a company director and executive. You will hear from Tonianne later in the meeting.

I would also like to thank my fellow Board members for their contribution throughout the year.

Finally, I want to thank our people for their incredible hard work and dedication. They have risen to the many challenges of COVID and been outstanding in their response.

I also want to sincerely thank Jeanne and the Executive Team for their impressive leadership.

I am now pleased to hand over to Jeanne who will speak in more detail on the Company's performance over the past financial year and our strategic agenda moving forward.

For personal use only

MANAGING DIRECTOR & CEO'S ADDRESS, JEANNE JOHNS

Thank you, Brian.

Good morning and welcome to our shareholders and others joining us for today's webcast.

Before I start, I'd like to acknowledge the traditional Custodians of the land we are coming to you from today, the peoples of the Eastern Kulin Nation. I pay my respects to their Elders past, present and emerging.

I would also like to acknowledge Chairman Brian Kruger, my fellow Directors, the executive leadership team and all our employees.

I'm delighted to be here this morning to talk with you as Managing Director and CEO about our business which has delivered strong financial results during Fiscal 21 as we continued to progress our strategy.

Our strict COVID-19 protocols and resilient supply chains enabled us to continue to safely operate and supply our resources and agricultural customers with the high-quality products, solutions and support they need.

Our number one value & our licence to operate, Zero Harm, has been especially important during a global pandemic.

We've continued to be vigilant, and our teams have done a great job adhering to our COVID safe protocols.

The additional controls with increased hazard recognition and reporting have, however, negatively impacted some of our key safety metrics and resulted in a mixed performance on Zero Harm.

We are redoubling our efforts to get back on track with targeted, site specific safety programs.

And we've also refreshed our company-wide safety training program, SafeTEAMS.

On a positive note, our efforts to reduce our impact on the environment have been reflected in our improved performance during the year.

I want to turn now to sustainability, and our climate change agenda, which we have been working to embed across our strategy and operations.

In November we released our first stand-alone Climate Change Report which is fully aligned to the Task Force on Climate-Related Financial Disclosures guidelines.

It sets out our long-term ambition to achieve Net Zero as soon as practicable and includes our potential Net Zero pathway by 2050.

As Brian explained, our pathway currently requires investigation of new and emerging technologies and we will continue to investigate opportunities to set Paris aligned targets.

As part of our work investigating key enabling technologies - we're leveraging our world class ammonia expertise to determine the commercial feasibility of green ammonia production.

We have formed two significant partnerships to do this.