Slide 1: UBS Global Basic Materials Conference - BHP Billiton
UBS - Global Basic Materials Conference Alberto Calderon, Chief Commercial Officer BHP Billiton 11 June 2008
Slide 2: Disclaimer
Disclaimer This document has been prepared by BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") and comprises the written materials/slides for a presentation concerning BHP Billiton's offers for Rio Tinto Limited and Rio Tinto plc (“Rio Tinto”). By reviewing/attending this presentation you
Slide 3: Disclaimer (continued)
Disclaimer (continued) None of the statements concerning expected cost savings, revenue benefits (and resulting incremental EBITDA) and EPS accretion in this presentation should be interpreted to mean that the future earnings per share of the enlarged BHP Billiton group for current and future financ
Slide 4: Industry Outlook
Resourcing the future Industry Outlook Strategy and Growth BHP Billiton & Rio Tinto – Unlocking value together
Slide 5: Socio-economic forces driving China / India growth and higher energy prices
There are powerful socio-economic forces driving China / India growth, but what will be the impact of higher energy prices? Finished steel consumption (kg/capita) Source: World Bank; Government Statistics for Taiwan; IISI Note: The shape of the arrow shows the general trend among countries for finis
Slide 6: Energy – GDP per capita vs energy use per capita
Energy – GDP per capita vs energy use per capita Primary Energy Use (t oil equiv./Capita) Source: World Bank; Government Statistics for Taiwan; IISI Note: The shape of the arrow shows the general trend among countries for primary energy use as GDP per capita increases and is not to scale GDP/Capita
Slide 7: China's annual power output growing like a major European country
China’s annual power output is growing at a rate equivalent to a major European country Power output added from previous year UK’s total power output today China’s Growing Power Output (in billion kWh) Source :National Bureau of Statistics of China (Yearbook), China Electricity Council, and Digest o
Slide 8: China is industrialising, India following
China is industrialising, India following Source: IMF and BHP Billiton estimates. a) Sales volume converted to copper equivalent units. 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 • China’s rate of industrialisation is strong and growing • India’s GDP currently 10-15 years behind China • B
Slide 9: Strategy and Growth
Resourcing the future Industry Outlook Strategy and Growth BHP Billiton & Rio Tinto – Unlocking value together
Slide 10: Maintaining our commitment to our core strategy
Maintaining our commitment to our core strategy • Focus on Tier 1 assets that are large, low-cost, expandable and consistently profitable • Upstream focus and export-oriented commodities • A deep inventory of growth options • Portfolio diversified by commodity, geography and customer • Overriding co
Slide 11: Escondida demonstrates the true value of Tier 1 assets
Escondida demonstrates the true value of Tier 1 assets Escondida Norte + Sulphide Leach Phase IV + Laguna Seca Concentrator Oxide Plant Expansion Phase 3.5 + Oxide Plant Phase III Phase I + II Original plan: 320kt of copper a year Copper production at Escondida (Tonnes, 000) Source: BHP Billiton est
Slide 12: Diversified and balanced across high margin commodities
Diversified and balanced across high margin commodities Underlying EBITDA (12 months, US$bn) Underlying EBITDA Margin (a) (CY2007, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Billiton’s half-year financial report for the half-year en
Slide 13: Scarcer commodities tend to show greater price movement
Scarcer commodities tend to show greater price movement 552% 512% 337% Met. Coal Manganese Iron Ore 421% 228% 90% Copper Nickel Aluminium 491% 346% 163% Uranium Oil Energy Coal a) Hard coking coal based on Peak Downs/Goonyella/Hay Point FOB. JFY2008 forecast prices calculated based on 206-240% incre
Slide 14: BHP Billiton's growth profile is diverse
BHP Billiton’s growth profile is diverse Copper Equivalent Tonnes '000 Production in copper equivalent tonnes Estimated & unrisked Note: Copper equivalent units calculated using BHP Billiton (BHPB) estimates for BHPB production. Production volumes exclude BHPB’s Speciality Products operation and all
Slide 15: Capital cost and risk matter
Capital cost and risk matter Growth in Copper Equivalent Tonnes (CY’07-12) Production growth from existing operations, brownfield expansions and greenfield development 1,000 1,500 2,000 2,500 3,000 3,500 BHB Billiton Rio Tinto Existing Brownfield Greenfield 85% 80% 20% 15% Source: BHP Billiton analy
Slide 16: Slide 16
Slide 17: Slide 17
Slide 18: Slide 18
Slide 19: Slide 19
Slide 20: BHP Billiton & Rio Tinto – Unlocking value together
Resourcing the future Industry Outlook Strategy and Growth BHP Billiton & Rio Tinto – Unlocking value together
Slide 21: Keys to unlocking value
Keys to unlocking value 1 3 2 Optimising mineral basin positions and infrastructure – Lower cost, more efficient production – Unlocking volume through matching reserves with infrastructure Enhanced platform for future growth – Deployment of scarce resources to highest value opportunities – Greater a
Slide 22: Conclusion – Strength, stability and growth
Conclusion – Strength, stability and growth • BHP Billiton’s core strategy remains unchanged • BHP Billiton is focused on producing volumes from its low cost assets to take advantage of the strong market conditions • A combination of BHP Billiton and Rio Tinto can generate substantial additional val
Slide 23: BHP Billiton – resourcing the future
Mm PY | bhpobilliton resourcing the future