Bhp Group Ltd · ASX:BHP
Bhp — Global Iron Ore & Steel Forecast Conference 2017
13 slides from Bhp's conference presentation, Mar 29, 2017
Slide 1: Global Iron Ore & Steel Forecast: Our culture to drive value in the Pilbara
Global Iron Ore & Steel Forecast Our culture to drive value in the Pilbara Edgar Basto Asset President Western Australia Iron Ore 29 March 2017 Yandi
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or
Slide 3: Key themes
Key themes • The health and safety of our people and the communities in which we operate always come first • China and Emerging Asia expected to support steel demand growth • Our tier 1 assets and focus on productivity support strong and sustainable returns • South Flank is our preferred option to s
Slide 4: China and Emerging Asia expected to support steel demand growth
China and Emerging Asia expected to support steel demand growth Gap to close in emerging market steel stock Accumulated stock of steel per capita (t) 15 • China’s accumulated steel stock per capita still lags developed economies • Chinese steel demand is expected to grow despite a 10 moderation in t
Slide 5: Seaborne suppliers continue to add low cost, high quality tonnes
Seaborne suppliers continue to add low cost, high quality tonnes Differential to Platts 62 Coking Coal Price Major producers continue to add low cost, high quality tonnes (USc/dmtu CFR) (US$/t, FOB) to market, Brazilian competition growing strongly1 (wmt) 20 350 180 10 300 0 250 120 (10) 200 (20) 15
Slide 6: Strong performance through the cycle
Strong performance through the cycle • Record H1 FY17 production of 136 Mt Strong recovery in returns (Return on Net Operating Assets, %) (Average realised FOB Price, US$/wmt) 60 120 • Reduced our unit cost2 to US$15.05/wmt FOB 90 40 60 • We have further opportunities to lower unit cost 20 30 0 0 FY
Slide 7: Three years of continuous improvement has delivered strong results
Three years of continuous improvement has delivered strong results • 11% improvement in TRIF • >5,000 improvement initiatives • 26% increase in production • 48% reduction in cost1 Note: H1 FY14 to H1 FY17 comparison. 1. FOB unit cash cost excluding freight and royalties. Edgar Basto, Asset President
Slide 8: Further strengthening our position
Further strengthening our position Improving operations to support further productivity Port Hedland inflow (Annualised Mtpa by month) • Renewal of rail infrastructure will decrease cycle times, 290 six months ahead of schedule 260 • Real time schedule optimisation across the supply chain 230 • Debo
Slide 9: New structure unlocks global sharing and learning
New structure unlocks global sharing and learning Caterpillar 793F improvement outcomes • 20% engine life improvement • 50% front suspension life improvement • 20% final drive life improvement Example: Maintenance Centre of Excellence • World leading performance • Servicing to improve reliability •
Slide 10: Inclusion and diversity are central to our success
Inclusion and diversity are central to our success Why? Safety Culture Productivity • 19% to 68% less injuries • Confident to speak up • Production forecast accuracy is 7% to 15% higher • More likely to follow safe work • Rate BHP Billiton, their job and practices and raise unsafe leader more favour
Slide 11: Western Australia Iron Ore contributing to the broader community and economy
Western Australia Iron Ore contributing to the broader community and economy Payments to 80% government1 Goods and services TOTAL sourced locally2 $2.5 billion $1.2 600 $255 100,000 billion WA in wages paid to our businesses million retail shareholders in workforce of around Western Australia in con
Slide 12: Key themes
Key themes • The health and safety of our people and the communities in which we operate always come first • China and Emerging Asia expected to support steel demand growth • Our tier 1 assets and focus on productivity support strong and sustainable returns • South Flank is our preferred option to s
Slide 13: bhpobilliton
Pf bhpobilliton
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