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Incitec PivotLimitedInvestor Presentation

JP Morgan Investment Conferences

Asia & EdinburghSeptember 2008

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Disclaimer

This presentation has been prepared by Incitec Pivot Limited for professional and sophisticated investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Incitec Pivot Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

The distribution of this document in jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe any such restrictions.

In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any “U.S. person” (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (“Securities Act”)). The securities referred to in this presentation have not been and will not be registered under the Securities Act or under the securities laws of any state in the United States. Securities may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. person, unless the securities have been registered under the Securities Act or an exemption from registration is available.

INCITEC PIVOT LIMITED ABN 42 004 080 264

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Overview

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Strategy to leverage global supply / demand dynamics

30-year investment thematic

• Chinese/Indian economies driving the mining boom

• China/India per capita GDP growth driving a step change in food consumption (quantum and source)

• Fertiliser and explosives both key “inputs” to soft and hard commodities production

• Input side returns are typically higher and less volatile (“pick and shovel” investment thesis)

• Leverage IPL’s nitrogen based manufacturing capabilities

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0.75

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1900

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1930

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1950

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1985

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1995

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Index

USA Japan China

Copper intensity of use = consumption per unit of GDP

5 01 0 01 5 02 0 02 5 03 0 03 5 04 0 04 5 0

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

C ru d e O il C o p p e r O re a n d C o n c e n tra te S o y b e a n s

Inde

xed

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umpt

ion

by v

olum

e (%

)

China Consumption

China Consumption

Copper Intensity of Use = Consumption per unit of GBP

Source: Citigroup; USGS; US Dept of Labour; GCDC; Smith Barney estimates

Source: Bloomberg and WASDE

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Fertiliser and explosives are a natural combination

• The combination is about FIT and FLEXIBILITY

• Fertilisers and explosives FIT together because of the commonality in underlying chemical processes and inputs

Nitrogen-based chemical manufacturing is a core competence

Manufacturing drives profitability

Incitec Pivot manufactured both fertiliser and explosives pre-2003

Dyno Nobel manufactures and sells fertiliser in North America

• FLEXIBILITY is about the ability to optimise production by selling into both fertiliser and explosives markets

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IPL overview

• Incitec Pivot is a leading global chemicals company with nitrogen manufacturing at its core

• World scale, bottom of the cost curve ammonium phosphate manufacturing

• ASX top 30 listed company (IPL.AU); market capitalisation of A$9.7bn(1)

• Leader in its chosen downstream markets:

• Fertiliser: #1 position in Australian market

• Explosives: #1 position in North America, #2 in Australia, #2 globally

• Well positioned for growth based on exposure to global demand for both soft & hard commodities

• Investment grade balance sheet & credit metrics

• Experienced management team with track record of delivery

(1) As at 29 August 2008. 60,861,528 shares, at A$159.62 per share

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IPL history & evolution

Transition of business exposure

Antecedent companies of Incitec Fertilizers established

1919

Established as the Phosphate Co-operative Company of Australia

1920 2006

Acquisition of Southern Cross for A$155.3m and exit of Orica Limited as majority shareholder

Incitec Pivot admitted to the S&P/ASX 200 index

2007

Incitec Pivot admitted to the S&P/ASX 100 index

2008

Incitec Pivot announces merger with Dyno Nobel (A$3.6bn)

2003

Merger with Incitec Fertilizers Limited

Listed on the Australian Securities Exchange

Incitec Pivot acquires 13.2% stake in DynoNobel

1920

Incitec Pivot admitted to the S&P/ASX 50 index

Prior to the Southern Cross and DynoNobel acquisitions, Incitec Pivot was an Australian based manufacturer and distributor of fertiliser products…

….Now strategically positioned as a low cost manufacturer of fertilisers, explosives, and related products and services, with international trading and distribution capability

Manufacturing45%

Distribution / Trading

55%

2005

Manufacturing80%

Distribution / Trading

20%

2007Distribution / Trading

19%

Manufacturing 81%

EBIT Evolution

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IPL corporate strategy

Underpinned by performance culture and strong financial discipline

Lowest Cost BasePosition the business to generate acceptable returns in all conditions

Supply ChainHandling of millions of tonnes of bulk commodities per annum generates opportunities to magnify efficiency savings across a large base

Trade / DiversifyReduce volatility of returns by increasing exposure to more products and markets and increasing scale

Own the Product / Own the ResourceGenerate exposure to the most profitable part of the industry value chain – manufacturing –while maintaining financial disciplineTrade /

Diversify

Lowest Cost Base

Own the Product / Own the Resource

Supply Chain

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How are fertilisers & explosives made?

+ CarbonDioxide Urea Fertiliser /

Industrial

+ PhosphoricAcid

AmmoniumPhosphate (AP) Fertiliser

+ Sulphur AmmoniumSulphate Fertiliser

+ Nitric Acid AmmoniumNitrate (AN)

Fertiliser /ExplosivesNatural /

SyntheticGas

Ammonia

Fertiliser

Additive Finished Product End MarketFertiliser / Industrial

Urea /Ammonium Nitrate

(UAN)

Ammonia

Nitrogen chemistry is at the core of IPL’s business

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IPL business structure

Global nitrogen based manufacturing core to IPL strategy

GLOBAL MANUFACTURING Australia (7 plants)• MAP and DAP – Phosphate Hill (QLD)• Sulphuric Acid – Mt. Isa (QLD) • Urea, Ammonia, Ammonium Sulphate

– Gibson Island (QLD) • Ammonium Nitrate – 50% JV, QNP

(QLD) • Superphosphate – Cockle Creek

(NSW), Geelong (VIC), Portland (VIC)

North America (6 plants)• Urea – St Helens (OR)• Ammonium Nitrate – Cheyenne (WY),

Battle Mountain (NV), Maitland (ON), Lomo (MO), Donora (PA)

Global IS (6 plants)• US: Carthage (MO), Wolf Lake (IL),

Graham (KY), Port Ewen (NY), Simsbury (CT)

• Mexico: Dinamita

GLOBAL TRADING BUSINESS• Global trading platform• Optimises product and raw material

sourcing and product sales

AUSTRALIAN FERTILISER BUSINESS• No 1 distributor of fertiliser in

Australia• East Coast Australian market share

of approximately 60%• Manufacturing assets in close

proximity to key agricultural markets• Balanced exposure to Australian

agriculture

GLOBAL EXPLOSIVES BUSINESS• No 1 – US explosives market• No 1 – Canadian explosives market• No 2 – Australian explosives market• Other major markets include –

Mexico, South Africa, Indonesia, Turkey and China

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Extensive manufacturing platformNameplate Capacity

Core manufacturing - phosphates & nitrogen

MAP/DAP 970ktpa • Bottom of the global cost curve― low cost rock deposit― low cost sulphuric acid― low cost long term A$ gas

contract

• Global MAP/DAP price leverage – no forward price contracts

• Low cost inputs• Global and local market

Product Comment Value drivers

Nitrogen Urea AmmoniaAmmonium Sulphate

280ktpa300ktpa 200ktpa

• Back to gas Urea production― low cost long term A$ gas

contract

• Nitrogen fertiliser demand• Local weather conditions

SuperphosphateGeelong Portland Cockle Creek

450ktpa 250ktpa 250ktpa

• Located close to footprint demand • Phosphate fertiliser prices• Local weather conditions

• Back to gas ammonium nitrate production • JV with CSBP (division of Wesfarmers Ltd)

• Coal mining activity― North Bowen Basin

coalfields

Ammonium Nitrate

Ammonium Nitrate Cheyenne Lomo Maitland Battle Mountain Donora St Helens UreaUAN

520stpa 300stpa 220stpa 150stpa 150stpa 111111 150stpa 70stpa

• Strategically located near Powder River Basin and Apache Coal Basin

• Linked to 23 bulk emulsion facilities

• Coal mining activity

Phosphate Hill (Queensland)

Gibson Island (Queensland)

Newcastle, Geelong, Portland (NSW, Victoria)

QNP JV (50%) (Queensland)

North America (AN and Urea)

Global IS Initiation systemsCarthage, Wolf Lake, Graham, Port Ewen, Simsbury, Dinamita

N/A • Global mining activity• Complementary value adding to bulk AM

300ktpa

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Dyno Nobel integration

Dyno Nobel integration is on track

Rationale

Leader in chosen markets

Strong growth profile – leverages IPL to soft and hard commodities

Diversification of earnings mix

Creates scale & centre of excellence for nitrogen chemical manufacturing

Enhanced financial strength / increased investor relevance

Integration Progress

Dyno Nobel’s manufacturing operations have been combined with Incitec Pivot’s manufacturing operations

Dyno Nobel’s marketing, sales & distribution businesses, regional operations, explosives services and R&D activities have been combined into a single unit in Salt Lake City

Merger Summary

Approved by Dyno Nobel shareholders on 22 May 2008

Completed 16 June 2008

75% script / 25% cash

Approximately A$3.6 billion total consideration

Meets IPL’s 15% IRR target

Combined Business

Pro-forma 2008 consensus (1) (2):

EBIT A$884 million

NPAT A$579 million

(1) Consensus as at 2 September 2008(2) Dyno Nobel acquired June 2008

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Geographic & product diversification

Diversified earnings base

EBIT Geographical diversification(1)

Product diversification(2)

(1) Based on IPL FY08 EBIT mid-point of guidance (6 March 2008). Dyno Nobel FY08 EBIT based on analyst consensus(2) Product diversification based on actual FY2007 revenues for IPL and Dyno Nobel; A$/US$0.813

Australia100%

North America72%

Australia/ Asia28%

Australia/Asia76%

North America

24%

Incitec Pivot Dyno Nobel Combined

=+

sification2

Fertiliser100%

Fertiliser6%

Explosives94%

Fertiliser48%

Explosives52%=+

Increase in revenue from fertilisersattributable to step change in fertiliserpricing and increase in volume (e.g., Cheyenne expansion in 2008)F

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Australian Fertiliser Business

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Incitec Pivot is Australia’s largest integrated fertilisermanufacturer and distributor

Australian Fertiliser Business – overview

Incitec Pivot’s fertiliser business is based on three core platforms:• Manufacturing - the operation of seven manufacturing facilities, which generated 81% of Incitec Pivot’s

EBIT in FY2007- Phosphate Hill (MAP and DAP)- Mount Isa (sulphuric acid)- Gibson Island (ammonia, urea, ammonium sulphate)- Geelong, Portland and Newcastle (single superphosphate)- Fertiliser manufacturing contribution to profit enhanced following the acquisition of Dyno Nobel

and the inclusion of the St Helens and Cheyenne plants• Distribution – Australian manufactured and imported fertiliser products are sold through an extensive

eastern Australian distribution network, where pricing based upon import parity• Trading – established as a wholly owned subsidiary in 2007, Southern Cross International is IPL’s

trading arm focused on:- Sales to Australian distributors & importers of fertilisers- Export sales to Asia-Pacific, India, Indo-China & Latin America- Procuring raw materials for Incitec Pivot’s manufacturing plantsF

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Leveraging low cost manufacturing assets

Incitec Pivot is the only domestic manufacturer of ammonium phosphates and urea

Note:•

Cockle Creek:Superphosphate: 250ktpa

Kooragang Island:Bagging & distribution

Geelong:Superphosphate: 450ktpa

Portland:Superphosphate: 250ktpa

1. Intensive horticulture & sugar

3. Broadacre& cotton

2. Improved Pasture

Southern Cross Fertilisers:Phosphate Hill: 970ktpa MAP & DAPMt Isa: 1,000ktpa Sulphuric AcidTownsville: MAP & DAP distribution & export facilityGibson Island:- Urea: 280ktpa- Ammonia: 300ktpa- Ammonium Sulphate: 200ktpa

•••

••

•

Major Manufacturing and Distribution SitesDistribution Sites•

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World scale ammonium phosphate production at Phosphate Hill

• World scale asset

• Bottom of the global cost curve

• Low cost rock deposit

• Low cost sulphuric acid

• Low cost ammonia (underpinned by long term gas contract)

• Nameplate capacity 970,000 tonnes per annum

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A balanced exposure to the Fertiliser business

Fertiliser Sales by Agricultural Sector

Fertiliser Sales by Region

3,400,000Total Sales1,000,000Total Imported200,000Potash300,000Ammonium Sulphate500,000Urea

Imported Products

2,400,000Total Manufactured780,000Single Superphosphate270,000Ammonium Sulphate100,000Ammonia (anhydrous)280,000Urea970,000Ammonium Phosphate

Manufactured Products

3,400,000Total Sales1,000,000Total Imported200,000Potash300,000Ammonium Sulphate500,000Urea

Imported Products

2,400,000Total Manufactured780,000Single Superphosphate270,000Ammonium Sulphate100,000Ammonia (anhydrous)280,000Urea970,000Ammonium Phosphate

Manufactured Products(1)

(1) Nameplate capacity and SSP footprint demand

Export

QLD

NSWVIC

SATAS Export

QLD

NSWVIC

SATAS

Extensive Pasture

Intensive Pasture

HorticultureSugarWinter Crops

Summer CropsExtensive Pasture

Intensive Pasture

HorticultureSugarWinter Crops

Summer Crops

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Fertiliser distribution

Distribution Channel Description

Independent agent / Dealer Network

(~ 65% of revenue(1))

Comprises over 800 outlets throughout Eastern Australia

7 out of 10 farmers prefer to purchase through independent agents and dealers which have longstanding relationships with farmers

Most efficient services and last mile logistics to farmers

Corporate Dealers(~ 30% of revenue(1))

Includes sales to RuralCo, Elders, Landmark, ABB Grain and affiliated independent dealers operating under corporate banner arrangement

Typically bulk sales direct from the Company’s distribution facilities

Provide a full range of agri-business services

Direct to farmers in Tasmania (~ 5% of revenue(1))

Where retailers alone cannot deliver the most efficient service

Based on longstanding individual relationships with farmers

Distribution network pulls through manufactured product(1) Revenue of the Australian Fertiliser business

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Global Explosives Business

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Global Explosives Business – Dyno Nobel Overview

• A global leader in the supply of commercial explosives

• # 1 in North America (worlds largest market)

• # 2 in Australia (3rd largest market)

• Development, production and distribution of full range of explosives products and services through 36 manufacturing and operations facilities in North America, Australia, Mexico, Indonesia & PNG

• 2007 sales of US$ 1.398 billion

• Over 3,600 employees worldwide

• Active in major markets (U.S., Canada, Mexico, Australia, Indonesia, South Africa, Turkey and China)

Offers exposure to global hard commodities

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Growing demand for explosives

Sustained global drivers for mineral consumption

Note: * 1 January 2008 real US dollarsSources of data: CRU Quarterly Reports (January 2008); Brook Hunt Aluminium Metal Service (February 2008); IISI – Steel Statistical Yearbook (December 2007); World Bank (World Development Indicators Online Database, February 2008); BHP Billiton analysis

US$ expenditure (per capita)

10

20

30

40

50

GDP per capita (US$’000)*

10 20 30 40

Aluminium

Copper

Iron Ore

Coking Coal

China: $2,000 per capita

Mineral consumption increases with GDP

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Dyno Nobel is number 1 in the North American market

Strategically Located Facilities

2007 Market Revenue: ~ US$2.0 – US$2.5bn

2007 Market Demand: ~ 2.9m tonnes

Powder River Basin

Appalachian Coal Basin

• 5 AN plants service key markets (~ 1.3m tonnes pa)

• 1 Urea/UAN plant• 6 initiation systems facilities• Broad packaged product offering• Extensive internal logistics operations • Five distribution channels

Market Leader• North America is one of the largest

explosives market in the world• No.1 in USA & Canada• North American revenue, by:

- Geography: 16% Canada, 84% USA/Mexico

- Product: 60% AN based explosives, 23% Initiation systems products, 9% boosters and dynamite, 5% packaged products & 3% other

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Explosives - North America

Ammonium Nitrate Manufacturing in North America – short tonnes

The market leader North America explosives

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Dyno Nobel is number 2 in the Australian market

2007 market revenue ~ US$1.1bn

2007 market demand ~ 1.1 – 1.2m tonnes

Pilbara (Iron ore)

Hunter Valley(Coal)

Bowen Basin (Coal)

Surat Basin (Coal)

Goldfields (Gold, Nickel)

Strategically located facilitiesStrong second player

• Third largest explosives market in the world

• Serviced by two key players

• No.2 market position in consolidating industry

• Customers supportive of a second strong player

• Strong demand for products and services

• Moranbah AN project to underpin competitive position in Australia

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Explosives revenue analysis

2007 North American Revenue End User Segment

2007 North American Revenue Product Category

Quarry &

Construction, 38%

Private Label, 2.5%

International Other, 4.5%

Metals Mining, 12%

Agricultural Chemicals, 8%

Coal Mining, 35%Quarry &

Construction, 38%

Private Label, 2.5%

International Other, 4.5%

Metals Mining, 12%

Agricultural Chemicals, 8%

Coal Mining, 35%

Ammonium Nitrate, 60%

Other, 3%

Packaged, 5%

Boosters & Dynamite, 9%

IS, 23%

Ammonium Nitrate, 60%

Other, 3%

Packaged, 5%

Boosters & Dynamite, 9%

IS, 23%

2007 Asia Pacific Revenue End User Segment

2007 Asia Pacific Revenue Product Category

Coal Mining, 35%

Metals Mining, 65%

Ammonium Nitrate, 64%

IS, 15%

Boosters, 4%

Packaged, 2%

Other, 15%

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Moranbah AN project

• Compelling strategic fit– Nitrogen based chemistry– AN sales into both explosives and fertiliser markets

• Located in the heart of large existing and new coal projects

• Exposure to high growth ‘Met’ coal from Bowen Basin in Queensland

• Fully integrated back-to-gas ammonia, nitric acid and AN complex

• Fully costed A$935m project (mechanical completion Q1 calendar 2010)

• Compelling competitive position– 15 year, low cost gas supply contract– Lowest cash cost position in plant footprint– Bottom of the global cost curve

• Project exceeds IPL’s strict financial criteria

Low risk, controllable shareholder value creation

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Industry supply balance

Forecast growth of 9% = a balanced AN market by 2013

Queensland AN Demand & Supply Balance - 2000 to 2020

-

250

500

750

1,000

1,250

1,500

1,750

2,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tonn

es, 0

00's

QNP Moranbah Yarwun Demand Growth at 9% Demand Growth at 12%

Longer-term supply deficit

Note: Based on nameplate capacity

Queensland AN Demand & Supply Balance – 2000 to 2020

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Industry pricing

A step change in AN pricing

Spot AN Import Parity PriceFree-in-store Moranbah

$500

$550

$600

$650

$700

$750

$800

$850Ja

n-05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

A$ AN/t

weekly spot price Calendar year average

Spot price 24/7/08: A$821/t

Source: IPL - constructed IPP price based on Fertecon AN Baltic/BlackSea FOB

Spot AN Parity Price Free in-Store Moranbah

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Global TradingBusiness

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Trading business

Fertiliser marketsAustraliaAsia PacificIndian subcontinentIndo ChinaLatin AmericaOther

Other Fertilisermanufacturers

Explosive marketsNorth AmericaAustraliaChina/South East AsiaSouth AfricaOther markets

Southern Cross International

Product

Product

Raw materials

Raw materials

Product

Manufacturing

The Trading business, Southern Cross International, focuses on optimising product and raw material sourcing and product sales

Product sourcing and sales are optimised to key markets

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Outlook -Global Fertiliser Demand

“ the 4 F’s

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Fertiliser demand is growing

• Fertiliser demand is being driven by the “4 F’s”:

• Food

• Fibre

• Feed

• Fuel

• Population growth and economic prosperity in developing countries is increasing demand for food

• Step change in quantity and quality of food consumption as income increases to US$3-5k per capita

Demand is growing

World Nutrient Demand through to 2010

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Food

0

2

4

6

8

10

2007 2050

Bill

ion

peop

le

Developing

Developed

• Population growth and economic prosperity in developing countries is increasing demand for food

• Global net population growth ~200,000 people per day

• Step change in quantity and quality of food consumption as GDP/capita increases to between US$3k - US$5k

Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat (2007), Incitec Pivot

Strong population growth in developing countries….

….and increasing economic prosperity

China 9.8% 9.0%India 7.7% 7.0%Argentina 6.0% 3.5%Indonesia 5.8% 5.5%Brazil 4.6% 3.6%Source: Economist Intelligence Unit

Country 2008 GDP Forecast

2009 GDP Forecast

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Fibre

• Demand for plant fibres will continue to be strong

• Cotton production is forecast to stay at the currently elevated levels

Cotton Consumption (million tonnes)

Source: UNCTAD, based on: "Cotton: World Statistics - International Cotton Advisory Committee (ICAC)"

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Feed

Source: China Agriculture University, Beijing, 100094 P.R.CHINA

0

500

1000

1500

2000

2500

3000

3500

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

0

100

200

300

400

500

600

total Production of Grain (106t)

total Production of meat (105t)

total Production of milk (104t)

total Production of egg (104t)

Compared to 1980, grain production increased by 89%, while the production of meat, egg and milk increased 6.4, 11.2 and 20.8 times respectively in 2005

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Feed

Source: China Agriculture University, Beijing, 100094 P.R.CHINA

Demand for grains used for animal production may not be met in tDemand for grains used for animal production may not be met in the future he future ––different scenariosdifferent scenarios

1950 1960 1970 1980 1990 2000 2010 2020

1LU=1000kg live animal weight

0

2

4

6

8

10

12

(108

LU

)

year

Limitation by resources Chinese nutrition standard

U.S. Scenarios

4.1

7.6

6.6

10.6

2003 yr2003 yr

9.2 Develop as current speed

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FeedF

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Feed

• Meat consumption in developing world lags developed world average

• Rising per capita income drives demand for complex protein (meat)

• Meat producing animals consume a lot of grain

• Chinese meat consumption has tripled in past 7 years

Meat Consumption Per Capita

0 10 20 30 40 50 60 70 80 90 100 110 120 130

Africa

Asia

Developing World

World

Latin America

Developed World

North America

kg / person / year

Usable Protein Yield Per Acre of Land

356

261

211

192

138

82

78

45

20

0 50 100 150 200 250 300 350 400

Soybeans

Rice

Corn

Other Legumes

Wheat

Milk

Eggs

Meat (all types)

Beef

Pounds of useable protein

Source: USDA: FAO/WHO/UNICEF Protein Advisory Group (2004) Diet for a New America (John Robbins)

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Feed

0.0

5.0

10.0

15.0

20.0

25.0

1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09F

Surplus

Squeeze

Cereal stocks are at record lows, equivalent to just 8 weeks’ production

Source: FAO, British Sulphur Consultants

13 weeks

10 weeks

8 weeks

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Fuel

• Recent dislocation in nutrient demand has been driven by biofuel

• Latest US official data still projects dramatic increase in corn used for ethanol

• Government mandates underpinning demand for renewable fuels

• Corn, sugar, palm oil are nutrient intensive crops

US Corn used for Ethanol Production

Note: Planting year starting September 01 - Source: USDA, Feb 2008

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Billion Bushels

0%

5%

10%

15%

20%

25%

30%

35%

40%

Actual Projection % of Total Core Use

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Constraints – arable land

0

1

2

3

4

5

6

7

8

9

1950 1960 1970 1980 1990 2000 2010 2020 2025 2030

Wor

ld p

opul

atio

n (b

illio

ns)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Ara

ble

land h

a/pers

on

• Arable land per capita is declining as population increases

• Crop yields must increase to meet increased demand for food

• Increased fertiliser consumption will support increased yields

49

7585

117

157 161182 189 194

0

50

100

150

200

250

Australia NZ

IndiaBrazil US

ChileFra

nceChina UK

Fertiliser Consumption Per Hectare (kg)

(kg

/h

a)

Population Growth & Arable Land Per Capita

Source: IFA

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49

75

85

117

157

161

182

189

194

Australia

New Zealand

India

Brazil

US

Chile

France

China

UK

27

45

96

169

116

132

188

58

44

31

42

60

88

81

160

Argentina

Canada

China

India

EU

Russia

US

Brazil

Used Potential

Maximum Potential Farm Land Fertiliser Consumption per Harvest Area(millions of hectares) (kilograms of fertiliser per hectare)

Source: IFASource: Yara

Australian Fertiliser Demand vs Rest of World

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Improvement in land use efficiency

Population Supporting capacities in Developing Countries

Location Million Acres

Africa 7,109 780 2,488 12,867

Southwest Asia 1,672 265 301 318

South America 4,372 393 1,399 12,373

Central America 672 215 289 1,297

South East Asia 2,218 1,937 2,462 6,343

TOTAL 16,043 3,590 6,939 33,198

Sustainable Increase in Population 3,349 29,608

Source: Compiled by Economic Reserch Service (1996)

Low Inputs High Inputs

Potential Population(Millions)

Potential Population(Millions)

2000 Population

MillionsTotal Land Area

Current Inputs

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Outlook –Ammonium Phosphate

Supply

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Top five rock exporters = 76% of global trade

There is a high concentration in the phosphate rock / phosphoric acid/ammonium phosphates, particularly in the export markets

Source: British Sulphur Consultants – A Division of CRU

0%

10%

20%

30%

40%

50%

60%

70%

80%

OCP,Morocco

JPMC,Jordan

Gecopham,Syria

Ferphos,Algeria

Phosagro,Russia

shar

e of

glo

bal r

ock

expo

rts

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Fertiliser supply - global ammonium phosphate industry

World scale ammonium phosphate production at Phosphate Hill

Major producers & exporters(1)

Mosaic (USA)(2) 9.5mt OCP (Morocco) 3.8mtPhos Agro (Russia)(3) 3.0mtCF Industries (USA) 2.2mtGCT (Jordan) 2.0mtChina(4) 15.4mt

Notes (1) 2007 global industry production(2) Formed in 2004–merger of IMC & Cargill fertilisers(3) 8.5% export tax announced Q1 2008(4) 135% export tariff Apr-Sep 08. 120% export tariff for Oct-Dec 08

72%Local

Conversion

28%Traded Volume

Industry volume:Approx 63MTPA

Lead time for new capacity:Approx 4 years

Industry Production(1)

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UREA and DAP – historic prices

Step change in fertiliser pricing

US$/tonne US$/tonne (calendar year average)

Source: Fertecon

DAP (ex Tampa) Granular Urea (ex Middle East)

Source: Fertecon

DAPex Tampa

150

350

550

750

950

1,150

1,350

2005 2006 2007 2008

US$/tonne

$/tonne FOBGranular Urea ex Middle East

100

200

300

400

500

600

700

800

2005 2006 2007 2008

US$/tonne

$/tonne FOB

US$/tonne US$/tonne (calendar year average)

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Non-integrated ammonium phosphate producer - cost curve underpins the global price

Ownership of raw material inputs = value leverageNote - 4 Sep 08 cost comprises CFR spot costs for: phosphate rock US$480/t + sulphur US$590/t + ammonia US$765/t + conversion US$50/t

DAP Composition+ 1.7t Phosphate

Rock (Morocco)+ 0.44t Sulphur+ 0.22t Ammonia+ Conversion

(labour/Overhead)

$816$680

$145 $145 $340

$260$264

$168

$132

$1,294

$1,126

$282 $310

$520

0

200

400

600

800

1,000

1,200

1,400

Sep 06 Mar 07 Sep 07 Mar 08 Sep 08Spot

$US/t

ConversionAmmoniaSulphurPhosphate Rock

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Escalating cost of new capacity

• Higher construction costs coincide with hard commodity boom

• Higher long-term commodity prices required to generate required rates of return

Note - Construction cost index includes completed projects only

Chemical Engineering Plant Cost Index(CEPCI)

396 402

444

468

500

525

350

400

450

500

550

2002 2003 2004 2005 2006 2007

Index

0%

2%

4%

6%

8%

10%

12%

% change(year on year)

CEPCI Index % Change - year on year change

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Summary

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Investment highlights

• Strong market dynamics in terms of supply and demand

• Leading market positions in key products

• Diversity by product and geography

• World scale, bottom of the cost curve ammonium phosphate manufacturing

• Strong organic growth opportunities

• Experienced management with proven track record

• Disciplined capital management & investment criteria

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Appendix

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Financial highlights

Notes* Not restated for AIFRS (1) 12 month rolling, excludes individually material items(2) Excludes debt to fund shareholding investment in Dyno Nobel(3) EBIT divided by Interest expense excluding non-cash unwinding of discounts

Financial Year / A$m 2004* 2005 2006 2007 H1 Mar 07 H1 Mar 08

Sales Revenue 1,135.6 1,073.9 1,111.2 1,373.2

348.6

312.5

202.5

22.8%

Underlying Net Debt / EBITDA(2) N/A 0.9x 1.7x 0.5x 1.9x 0.5x

Underlying Interest Cover(3) 22.5x 8.3x 9.8x 10.9x 6.0x 20.1x

749.3

EBITDA(1) 167.2 108.4 159.4

543.6

102.1

83.9

49.6

269.0

15.4%

EBIT(1) 121.9 77.9 126.2 250.0

NPAT(1) 80.9 47.9 82.8 171.1

EBIT Margin 10.7% 7.3% 11.4% 33.4%

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Profit & Loss

Financial Year, $m 2004 2005 2006 2007 H1 Mar 07 H1 Mar 08

Sales Revenue 1,135.6 1,073.9 1,111.2 1,373.2

348.6

312.5

Net Borrowing Costs (5.4) (9.4) (12.9) (28.8) (16.4) (16.7)

Tax (35.6) (20.5) (30.5) (81.2) (17.9) (62.2)

NPAT(1) 80.9 47.9 82.8 202.5 49.6 171.1

205.3

749.3

EBITDA(1) 167.2 108.4 159.4

543.6

102.1

83.9

269.0

57.2

EBIT(1) 121.9 77.9 126.2 250.0

NPAT(2) 75.0 14.5 46.7 169.8

(1) excluding individually material items(2) including individually material items F

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Balance Sheet

Financial Year, A$m 2004 2005 2006 2007 H1 Mar 07 H1 Mar 08

Total Current Assets 460.9 358.6 597.4 909.0

730.3

1,639.3

1,104.3

535.0

824.2

Total Non-Current Assets 510.4 486.6 707.1

530.1

722.6

1,252.7

860.3

999.6

392.4

Total Assets 971.4 845.2 1,304.5 1,823.8

Total Liabilities 339.9 285.3 924.5 1,249.4

Total Equity 631.5 560.0 380.0 574.4

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Pro-forma Financial Summary

A$mIncitec Pivot

pro-formaDyno Nobelpro-forma

Pro-formaAdjustments

Merged Group pro-forma

Sales Revenue 1,429.3 1,666.7 - 3,096.0

EBITDA 387.3 275.9 - 663.2

Depreciation & Amortisation (1) (36.1) (61.6) - (97.7)

Net Borrowing Costs (2) (189.0) (189.0)

Tax (3) (113.0) (113.0)

EBIT 351.2 214.3 - 565.5

NPAT - 263.5

Summary Pro Forma Results for the Year ended 31 December 2007 (as disclosed in Dyno Nobel Scheme Booklet, March 2008)

Notes:(1) This excludes the amortisation of any identifiable intangible assets to be recognised on implementation of the Share Scheme and any increased depreciation of tangible assets stepped up on implementation of the Share Scheme. Further depreciation and amortisation charges are expected to arise upon completion of the Merged Group's acquisition accounting review.(2) Interest has been calculated based on estimated average borrowings for the year of A$2.1 billion against a new facility at an average interest rate of 8.99%(3) Tax has been assumed at a rate of 30%

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Pro-forma Balance Sheet

A$mIncitec Pivot

pro-forma30 Sept 2007

Dyno Nobelpro-forma

31 Dec 2007

Pro-formaAdjustments

Merged Group pro-

forma31 Dec 2007

Total Current Assets 909.0 471.0 (555.1) 824.9

Total Non-Current Assets 730.3 1,258.8 2,065.4 4,054.5

Total Assets 1,693.3 1,729.8 1,510.3 4,879.4

Total Liabilities 1,104.3 1,093.0 676.2 2,873.5

Total Equity 535.0 636.8 834.1 2,005.9

Summary Pro Forma Balance Sheet for the Year ended 31 December 2007 (as disclosed in Dyno Nobel Scheme Booklet, March 2008)

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Financial performance

(1) excluding individually material items(2) EBIT/Underlying Interest Paid (excluding interest on debt used to fund shareholding in Dyno Nobel)

Historical EBITDA Performance (1)

Historical Revenue & NPAT Performance (1)

Underlying Net Debt/ EBITDA(2)

Underlying Interest Cover (2)

1,136 1,074 1,111

1,373

749

80.9 47.9 82.8202.5 171.1

-100100300500700900

110013001500

2004 2005 2006 2007 H1 Mar 08Revenue NPAT

167.2

108.4

159.4

348.6

269

050

100150200250300350400

2004 2005 2006 2007 H1 Mar 08

0.9

1.7

0.5 0.5

N/A0

0.5

1

1.5

2

2004 2005 2006 2007 H1 Mar 08

22.5

7.210.3 11.5

20.

0

5

10

15

20

25

2004 2005 2006 2007 H1 Mar 08

1

A$, M

A$, M

Times covered

Times Covered

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Disciplined capital management

Step change in capital efficiency

TWC

to Rolling S

ales -%

Trade Working Capital TWC to Rolling Sales

335

255263

205

16%

20%

26%

29%

200

250

300

350

400

2005 2006 2007 2008

Trad

e W

orki

ng C

apita

l -A

$M

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

25146

Trade Working Capital for Southern Cross in 2007

• Strong EBITDA conversion to cash

• Increased working capital efficiency

• Comfortably inside the Net Debt / EBITDA target ceiling of 2.5x

Working capital efficiency

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$M Delivered (A$m)

Total TARDIS 1 38.0

TOTAL AS AT SEPTEMBER 07 143.1

TARDIS 1FTE 13.8

Operational Optimisation 16.2

TARDIS 2

Southern Cross 44.6

Manufacturing Efficiency 16.1

Gibson Island Gas 26.3

Supply Chain 18.1Total TARDIS 2 105.1

Quick Wins 8.0

Tardis efficiency savings

Track record of delivering on efficiency commitments

• Project Tardis is embedded throughout Inctec Pivot’s operations – a core competency

• Project Tardis has delivered a step change in efficiency

Annualised benefit of efficiency improvements achieved 2006 to 2007

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Earnings sensitivities

• +/- US$10 DAP price = A$11.9m EBIT

• +/- US$10 Urea price = A$5.5m EBIT

• +/- AUD/USD 1c ~ A$8m

Assumptions:

• Based on 2007 reported earnings (excludes Dyno Nobel earnings translation)

• 970kt DAP sales at base price US$364/t @ 81.3 cents

• 460kt urea/urea equivalent sales at base price US$264/t @ 81.3 cents

• AUD/USD base price 81.3 cents

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Share price

$0

$25

$50

$75

$100

$125

$150

$175

$200

28/07

/2003

20/10

/2003

12/01

/2004

5/04/2

004

28/06

/2004

20/09

/2004

13/12

/2004

7/03/2

005

30/05

/2005

22/08

/2005

14/11

/2005

6/02/2

006

1/05/2

006

24/07

/2006

16-O

ct-06

8/01/2

007

2/04/2

007

25/06

/2007

17/09

/2007

10/12

/2007

7/03/2

008

4/06/2

008

28/08

/2008

$/share

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Volume

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