Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — FY2006 Earnings Presentation
50 slides from Bhp's earnings presentation, Aug 23, 2006
Slide 1: Preliminary Results 30 June 2006
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Slide 3: Preliminary Results 30 June 2006
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Slide 5: Preliminary Results 30 June 2006
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Slide 7: Underlying EBIT by sector group
i i i EEE NNN te ee ee ee i erga MN a i nh Ml Ml Ml Ml q i is . NONI ODE SILI LU IO UN EAS, Ves ce s ; Ze : l a vy a uy a 7 OE } ssa] S i ( Loy ae yy) I i) su VY ‘. is Petroleum Aluminium Base. Metals 2,395 959 +24 +24 +149 | v / 7 | 2,171 2,800 560 ie 887 — » ia) rl. ae eis oT! Sten - 8 i Mate 2 oe
Slide 8: Petroleum
Petroleum Project pipeline of nine major projects with investment of US$6.2 billion. FY2007. production in line with FY 2006, assuming Atlantis firstoil in Q1-CY2007. Atantis sail out in early August... FY2007 exploration expenditure Atantis - 16 August 2006
Slide 9: Aluminium
nin Aluminium 1,191 Fourth consecutive aluminium production record. Worsley expansion and new ship loading: berth both. commissioned. Alumar refinery expansion approved. Worsley Efficiency & Growth project
Slide 10: Base Metals
a IT Base Metals 5,400 Record production of copper and molybdenum. Escondida Norte and Sulphide Leach completed to - schedule.and in line with local currency budgets. Spence on target-for first production in December 2006. Cannington full production expected
Slide 11: Carbon Steel Materials
Carbon Steel Materials 4,503 2,800 Record iron ore production. Project pipeline of 7 projects with investment of US$4.0 billion. RGP2 commissioned to schedule. Queensland Coal: BMA Phase 1.expansion completed, BMA Phase 2 and Poitrel on target for late 02006 Hay Bonk expansion:
Slide 12: Diamonds & Specialty Products
Han hl oi Fo ee ee asi i iaeie aun nun nin unin Hn Diamonds & Specialty Products Lower carat value reduced EBIT by approx US$200 million. : -Higher.diamond sales volumes contributed US$91 million, ~~ Koala Underground project approved. - Panda pn aa commissioned on ntincant ice momen Higher value un
Slide 13: Energy Coal
ANNE Energy Coal Record annual production at Cerrejon and New Mexico coal. Ingwe recovery plan starting to take hold. Douglas - Middelburg Optimisation project in feasibility. Sale of Koornfontein i in progress. Douglas Colliery
Slide 14: Stainless Steel Materials
Stainless Steel Materials Record nickel production. Ravensthorpe cost and schedule under review. Yabulu expansion on schedule. Yabulu gas conversion to improve unit costs. Ravensthorpe — 3 August 2006
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Slide 17: Total cost variance
Total cost variance . - US$1,340 millio
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Slide 19: Exploration expenditure
44,665 10,626 (378) (225) (3,811) 10,476 oe (5,239) Exploration expenditure STE (766) , (596) 1,089 “4,964 (2,126) 2,838
Slide 20: Preliminary Results 30 June 2006
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Slide 26: Worsley E&G
Worsley E&G
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Slide 30: iin
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Slide 33: Revenue and underlying EBITDA
vUe Revenue (with JV share of revenue) 39,099 31,150 +26 Underlying EBITDA 18,052 12,036 ing He : s vA 4 is is 14,671
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Slide 36: Gross price variance
Gross price variance US$6,690 million
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Slide 40: Major projects under development
MMi i iii TKN tani Alumar Refinery Expansion F F ar On ime ‘and Brazil) — 36% Alumina Mid CY08 2 million tpa budget On time and aacyos | 700,000 acopper | budget excluding FX impacts) ROP s (Ave Yale) Iron Ore Iron Ore 4 CYO7 20 milion pa On deer ane phd Pellet Plant Iron Ore H1 CY08 7.6 million tpa
Slide 41: Major projects under development
ee ss Up to 50,000 tpa Revised costand Ravens thorpe (Aus tralia) - 100% Nickel Q2 CY07 contained nickel in schedule under concentrate review Yabulu (Australia) - 100% Nickel Q3 CY07 45,000 tpa nickel One and 200,000 barrels and 180 Costand million cubic feet gas per | schedule under day review Unde
Slide 42: Major projects under development
Atlantis North (US) -44% Oil/Gas End CY07 Tie-back to Atlantis South On time and budget Stybarrow (Australia) - 50% Oil'Gas Q1 CY08 80,000 barrels per day On time and budget North West Shelf 5th Train (Australia) - 16.67% LNG Late CY08 LNG processing capacity 4.2 million toa Costand schedule under r
Slide 43: Major projects under development
iii WA isan TTT TTT Annan opment project Worsley E ficiency and Growth : (Australia) — 86% End CY09 Western Aus tralia fron Ore RGP 4+ (Australia) — 85% Iron Ore Increase system capacity fo Ha CYi0 152 million tpa Maruwai (Indonesia) - 100% MetCoal H1 CY09 5 million tpa clean coal GEMCO (Australia)
Slide 44: Completed projects: budget versus actual
Project Antamina (Peru) — 33.75% Our Share of Capex Budget USSM Actual US$M Initial Production Date Budget Q2CY01 Actual Q2 CY01 Typhoon (US) ~ 50% Q3 CY01 Q3 CY01 Tintaya Oxide (Peru) - 99.9% Q2 CY02 Q2 CY02 Escondida Phase IV (Chile) - 57.5% Q3 CY02 Q3 CY02 San Juan Underground (US) - 100% Q3 CY02
Slide 45: Completed projects: budget versus actual
WA Iron Ore Accelerated Expansion (Australia) - 85% Our Share of Capex Budget USSM Actual US$M Initial Production Date Budget Q2 CY04 Actual Q2 CY04 NWS Train 4 (Aus tralia) ~ 16.7% Mid CY04 Mid CY04 ROD (Algeria) - 36% Q4 CY04 Q4 CY04 GoM Pipelines Infrastructure (US) ~ 22/25% Q4 CY04 Q4 CY04 | Wes
Slide 46: Completed projects: budget versus actual
Our Share of Capex Initial Production Date Project Budget Actual Budget Actual USSM USSM Escondida Sulphide Leach (Chile) ~ 57.5% H2 CY06 Q2 CY06 Western Australia lron Ore RGP2 (Australia) — 85% H2 CY06 Q2 CY06
Slide 47: Commodity price sensitivities
enim : a cc Y opepcr | aig Way oes — " a6 Ag ae ieee ate 3 SE MMMM re Te 7 US$1/t on iron ore price _USSt/bbI on oil price _USSiI on metallurgical eee price wee on copper price = | USStonenergycoalprice = HC Ibonnickelprice oo. eN . NNSA Co
Slide 48: Underlying EBIT and EBITDA
ili ili i US$ million FY2006 (1) FY20065 (1) FY2004 FY2002 FY2001 Hi Ht H2 H2 H1 Underlying EBIT 6,671 A 4.665 5,256 3,305 1596 Depreciation & Amortisation 1,300 c 1,073 872 Underlying EBITDA 7,971 305 4.378 2,468 US$ milfion FY 2006 (1) FY2005 (1) FY2003 Turnover 39,099 31,150 17,506 Underlying EBI
Slide 49: Underlying EBIT by sector group
ni ae Ha 0 TAD aa a _ | | ] a 1d 'Gi foi } Zo 4 Ni \ ii) p } dations 25 = 2 2 -| r pedomance. US$ milion ~ FY2008 8 0) Petroleum Base Metals Energy Coal Tumover 5,876 10,284 f 3,319 Underying EBIT 2,988 5,400 , 327 Underying EBIT margin (4 } 50.8 62.5 ; 99 Tumover from thied party poductactivities 1
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