Bhp Group Ltd · ASX:BHP
Bhp — H1 FY2025 Earnings Presentation
33 slides from Bhp's earnings presentation, Feb 18, 2025
Slide 1: Financial results for the December 2024 half year
Financial results for the December 2024 half year Presentation & speech 18 February 2025
Slide 2: December 2024 half year results
BHP INVESTOR Mike Henry Slide 1: December 2024 half year results Hello and thank you for joining us to hear about BHP’s results for the first half of the 2025 financial year. I am joined by our Chief Financial Officer, Vandita Pant. 1
Slide 3: Disclaimer
BHP INVESTOR Slide 2: Disclaimer 2
Slide 4: Performance summary
BHP INVESTOR Slide 3: Performance summary This half, we have delivered another strong six months of operational and financial performance. Our focus on operational excellence is part of our simple, clear strategy, and it’s a competitive advantage. Coupled with our distinctive approach to social valu
Slide 5: A winning strategy
BHP INVESTOR Slide 4: A winning strategy We have been executing this strategy for some time. We’ve built a focused portfolio of the best large, long-life assets… in stable jurisdictions… in commodities the world will need as it seeks to develop, digitalise and decarbonise. This deliberate reshaping
Slide 6: A strong start to FY25
BHP INVESTOR Slide 5: A strong start to FY25 We’ve made an excellent start to the financial year. By the end of the financial year, we expect to have grown copper production by 24%1 over a 3-year period. That includes the 10% growth we’ve delivered this half.2 Our ongoing focus on controlling cost e
Slide 7: Driving improved safety
BHP INVESTOR Slide 6: Driving improved safety On safety, we continue our efforts to eliminate serious injuries and fatalities at all our operations. Nothing is more important than the safety of our people. To support this, we have continued to embed our Fatality Elimination Program, with a focus on
Slide 8: Financial performance
BHP INVESTOR Vandita Pant Slide 7: Financial performance Thanks, Mike. We have delivered a very strong set of results for the December 2024 half year. 7
Slide 9: Financial performance
BHP INVESTOR Slide 8: Financial performance We achieved Underlying EBITDA of US$12.4 billion, and a healthy margin of 51%. Our average margin over the past 15 years is more than 50% – an industry-leading performance. After an adjusted effective tax rate (including royalties) of 44%, our Underlying a
Slide 10: Group earnings waterfall
BHP INVESTOR Slide 9: Group earnings waterfall As you can see on the slide, the 11% decline in EBITDA was due to external drivers. Prices for iron ore and steelmaking coal were both down over 20%. And while we received a net benefit from foreign exchange rates, this was largely offset by the impact
Slide 11: Segment performance
BHP INVESTOR Slide 10: Segment performance Our strong performance was demonstrated across the business. Western Australia Iron Ore proved once again to be the leading iron ore business in the world. It delivered an EBITDA margin of more than 60%. The successful completion of the Port Debottlenecking
Slide 12: Delivering consistent cash flows
BHP INVESTOR Slide 11: Delivering consistent cash flows We delivered net operating cash flow of more than US$8 billion this half. On a run-rate basis, this continues our track record of generating more than US$15 billion per year in all bar one of the past 15 years. While our industry is cyclical, t
Slide 13: Samarco Brazilian settlement agreement
BHP INVESTOR Slide 12: Samarco Brazilian settlement agreement As Mike mentioned, in October we signed a comprehensive agreement with the Public Authorities3 in Brazil in relation to the Samarco dam failure.4 The total financial value of this agreement is R$170 billion (in 100% terms) and this includ
Slide 14: A more resilient business with a strong balance sheet
BHP INVESTOR Slide 13: A more resilient business with a strong balance sheet In recent years, we have strengthened both our business and our balance sheet. Today our portfolio is more resilient, with a higher exposure to future-facing commodities… our cash flows are more consistent… and our balance
Slide 15: Higher capital spend to unlock organic growth
BHP INVESTOR Slide 14: Higher capital spend to unlock organic growth In terms of delivering this growth, we have a strong and expanding pipeline of attractive organic growth opportunities in front of us. Mike will take you through some of these shortly. This half, we spent US$5.2 billion on capital
Slide 16: Disciplined capital allocation enables our strategy
BHP INVESTOR Slide 15: Disciplined capital allocation enables our strategy As a reminder, our top priorities under our Capital Allocation Framework are to: • Maintain our assets – to support safe and reliable operations – and progress our decarbonisation plans; • Secure our balance sheet strength –
Slide 17: Business update
BHP INVESTOR Mike Henry Slide 16: Business update Thanks, Vandita. I want to spend a few minutes on how we see our operating environment in the near term. We expect global economic growth to remain around 3% for 2025 and 2026. Growth in developed economies is expected to gradually recover, as intere
Slide 18: Commodities positively leveraged to global megatrends
BHP INVESTOR Slide 17: Commodities positively leveraged to global megatrends In the longer term, the case for our key commodities remains compelling. A growing population, increasingly urbanised, and seeking higher standards of living. More infrastructure, more consumer goods, more and better food.
Slide 19: Premium assets in the most attractive commodities
BHP INVESTOR Slide 18: Premium assets in the most attractive commodities Within these commodities, the quality of our assets and the way we operate them is a competitive advantage. You can see our focus on operational excellence shine through most clearly in our iron ore business – where we are the
Slide 20: WAIO: the world's leading iron ore business
BHP INVESTOR Slide 19: WAIO: the world’s leading iron ore business Western Australia Iron Ore is a great example of what BHP is able to achieve. It’s an asset with significant structural advantages. 30 billion tonnes12 of Pilbara iron ore – 95% of it within 50 kilometres of existing infrastructure.
Slide 21: Copper: a compelling pipeline of organic growth options
BHP INVESTOR Slide 20: Copper: a compelling pipeline of organic growth options We also have a great story to tell in copper. We think global copper demand will be over 50 million tonnes a year by 2050, around 70% higher than 2021 levels. And there’s just not enough production planned to supply it. W
Slide 22: Vicuña: emerging copper district with world class potential
BHP INVESTOR Slide 21: Vicuña: emerging copper district with world class potential Just last month we completed our agreement with Lundin Mining to establish a new joint venture called Vicuña to develop the combined Filo del Sol and Josemaria projects in Argentina. We believe that Vicuña has the pot
Slide 23: Jansen: a top tier asset set for strong cash flow
BHP INVESTOR Slide 22: Jansen: a top tier asset set for strong cash flow Potash is another commodity with a promising future. Our Jansen project in Canada is on track for first production by the end of next calendar year. This is a Tier 1, long life asset that is expected to sit in the first quartil
Slide 24: Continue to be a leader on project delivery
BHP INVESTOR Slide 23: Continue to be a leader on project delivery So, you can see that we have an exciting pipeline of growth projects ahead. Our focus is on delivering them efficiently and effectively. And this is an area in which we have a very positive track record. This slide shows how we compa
Slide 25: Attractive internal options to grow in copper for value
BHP INVESTOR Slide 24: Attractive internal options to grow in copper for value This track record in project delivery, combined with our Capital Allocation Framework – which drives competition among projects and ensures only the best get through – underpins the competitiveness of our organic growth o
Slide 26: Investment proposition
BHP INVESTOR Slide 25: Investment proposition Before I close, I’d like to briefly mention our Chair succession. Ken MacKenzie’s time as Chair of BHP has been impactful, marked by: • Disciplined allocation of capital – underpinned by the implementation of our Capital Allocation Framework; • Value-dri
Slide 27: Appendix
BHP INVESTOR Slide 27: Footnotes Appendix 26
Slide 28: Capital spend by commodity; Return on Capital Employed
BHP INVESTOR Slide 29: Capital spend by commodity Slide 30: Return on Capital Employed 27
Slide 29: Samarco delivering on Brazilian Agreement
BHP INVESTOR Slide 31: Samarco delivering on Brazilian Agreement Slide 32: Understanding the Samarco Brazilian agreement 28
Slide 30: Social value highlights
BHP INVESTOR Slide 33: Social value highlights Slide 34: Safety and social value indicators 29
Slide 31: Balance sheet; BHP guidance
BHP INVESTOR Slide 35: Balance sheet Slide 36: BHP guidance 30
Slide 32: BHP guidance (continued); Key Underlying EBITDA sensitivities
BHP INVESTOR Slide 37: BHP guidance (continued) Slide 38: Key Underlying EBITDA sensitivities 31
Slide 33: Competent Person Statement: Iron ore Mineral Resources
BHP Competent Person Statement: Iron ore Mineral Resources ‘Compiled iron ore Mineral Resources as at 30 June 2024 Measured Resources Indicated Resources Inferred Resources Total Resourcé BHP interest Depos Ore Type Tonnes (Mt) Fe Tonnes (Mt) % Fe Tonnes (Mt) Yo Fe Tonnes (Mt) 3,180 606 4,950 59.5 1