Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2014)
61 slides from Bhp's shareholder meeting presentation, Nov 20, 2014
Slide 1: Annual General Meeting 2014
For personal use only Newman Australia Newman Australia Annual General Meeting 2014 BHP Billiton Limited 20 November 2014
Slide 2: Welcome to Country
For personal use only Olympic Dam Australia Welcome to Country
Slide 3: Jac Nasser, Chairman
For personal use only Escondida Chile Jac Nasser Chairman Annual General Meeting 20 November 2014
Slide 4: Disclaimer: Forward-looking statements
Disclaimer Forward-looking statements For personal use only This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divest
Slide 5: Disclaimer: Non-IFRS financial information
Disclaimer Non-IFRS financial information For personal use only BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This presentation may also include certain non-IFR
Slide 6: Jac Nasser, Chairman
For personal use only Escondida Chile Jac Nasser Chairman Annual General Meeting 20 November 2014
Slide 7: Our commitment to South Australia
Our commitment to South Australia For personal use only Olympic Dam Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 7
Slide 8: Directors
Directors For personal use only Jac Nasser Andrew Mackenzie Malcolm Brinded Malcolm Broomhead Sir John Buchanan Carlos Cordeiro David Crawford Pat Davies Carolyn Hewson Lindsay Maxsted Wayne Murdy Keith Rumble John Schubert Baroness Shriti Vadera BHP Billiton Limited Annual General Meeting, 20 Novem
Slide 9: Malcolm Brinded
Malcolm Brinded For personal use only • Director of BHP Billiton • Member of the Sustainability Committee • Director Royal Dutch Shell plc from 2002 to 2012 • Director of CH2M Hill Companies Limited since July 2012 • Director of Network Rail Infrastructure Limited since October 2010 • Vice President
Slide 10: David Crawford
David Crawford For personal use only • Director of BHP Billiton • Chairman of the Finance Committee • Chairman of Australia Pacific Airports Corporation Limited since May 2012 • Chairman of Lend Lease Corporation Limited since May 2003 • Former Chairman and former Director of Foster’s Group Limited
Slide 11: Keith Rumble
Keith Rumble For personal use only • Director of BHP Billiton • Member of the Sustainability Committee • Previously Chief Executive Officer of SUN Mining • Former Chief Executive Officer of Impala Platinum (Pty) Limited • Former Chief Executive Officer of Rio Tinto Iron and Titanium Inc in Canada •
Slide 12: Directors
Directors For personal use only Jac Nasser Andrew Mackenzie Malcolm Brinded Malcolm Broomhead Sir John Buchanan Carlos Cordeiro David Crawford Pat Davies Carolyn Hewson Lindsay Maxsted Wayne Murdy Keith Rumble John Schubert Baroness Shriti Vadera BHP Billiton Limited Annual General Meeting, 20 Novem
Slide 13: Group Management Committee
Group Management Committee For personal use only Andrew Mackenzie Peter Beaven Tim Cutt Tony Cudmore Dean Dalla Valle Mike Fraser Geoff Healy Mike Henry Jane McAloon Daniel Malchuk Jimmy Wilson BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 13
Slide 14: Graham Kerr
Graham Kerr For personal use only • Chief Executive Officer designate of the new company • Former Chief Financial Officer of BHP Billiton from November 2011 to October 2014 • Former President of Diamonds and Specialty Products, BHP Billiton • Former Chief Financial Officer of Stainless Steel Materia
Slide 15: Forum on Corporate Responsibility
Forum on Corporate Responsibility For personal use only Greg Bourne Mick Dodson Cristina Echavarria Tommy Garnett Simon Longstaff Australia Australia Colombia Sierra Leone Australia Yaa Ntiamoa-Baidu Ray Offenheiser Phil Vernon Changhua Wu Ghana United States United Kingdom China BHP Billiton Limite
Slide 16: Our Charter
Our Charter For personal use only • Sustainability • Integrity • Respect • Performance • Simplicity • Accountability BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 16
Slide 17: Safety
Safety For personal use only Total Recordable Injury Frequency (TRIF) (number of recordable injuries per million hours worked) 10 8 down 51% 6 4 2 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 17
Slide 18: Our results at a glance
Our results at a glance For personal use only Attributable profit – excluding exceptional items Taxes and royalties paid1 (US$ billion) (US$ billion)2 US$9.9 billion 25 14 US$13.4 billion 12 20 10 15 8 6 10 4 5 2 0 0 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Note: Calculated on the basis of
Slide 19: Full year dividends
Full year dividends For personal use only Dividends1 FY04 – FY14 CAGR USD: 17% (US cents per share (cps)) CAGR AUD: 14% 140 USD: 121 cps USD: 4% AUD: 131 cps AUD: 9% 120 100 80 60 40 USD: 26 cps AUD: 36 cps 20 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1. Dividends declared in respect
Slide 20: Existing BHP Billiton portfolio
Existing BHP Billiton portfolio For personal use only Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Nickel West Worsley Alumar Aluminium Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US New Mexico Coal Mozal GEMCO Hotazel Shenzi Angostura Pyrenees Mace
Slide 21: Total shareholder return
Total shareholder return For personal use only Total Shareholder Return (TSR)1 (%) BHP Billiton TSR 267% 300 BHP Billiton Ltd dividends BHP Billiton Ltd price ASX 200 dividends ASX 200 price 200 ASX 200 TSR 137% 100 0 FY05 - FY14 FY05 – FY14 Source: Datastream. 1. TSR calculated in Australian dollar
Slide 22: Evolution of our portfolio
Evolution of our portfolio For personal use only BHP Billiton core portfolio* Proposed new company Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Worsley Alumar Aluminium Mozal Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US GEMCO Hotazel TEMCO Metallo
Slide 23: Proposed new company
Proposed new company For personal use only • Keep your BHP Billiton shares • Continue to receive dividends from BHP Billiton without any reset • Entitled to shares in the new company in equal proportion to your BHP Billiton shareholding • Primary listing on the Australian Securities Exchange • Secon
Slide 24: Demerger – key milestones
Demerger – key milestones For personal use only November 2014 • Regulatory approvals received from the Australian Foreign Investment Review Board and Australian Taxation Office • Other required approvals progressing well March 2015 • Expected release of all shareholder documentation including Shareh
Slide 25: Our strategy
Our strategy For personal use only Newman BMA Olympic Dam Shenzi Jansen Australia Australia Australia United States Canada BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 25
Slide 26: Role of our commodities
Role of our commodities For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 26
Slide 27: Our diversity is our strength
Our diversity is our strength For personal use only Newman BMA Olympic Dam Shenzi Jansen Australia Australia Australia United States Canada BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 27
Slide 28: Our action on climate change
Our action on climate change For personal use only Produced public Introduced independent Established Implemented Committed US$300 million to Set target to environment assessment of Carbon energy GHG reduction and energy maintain total GHG report detailing environmental data in Pricing conservation
Slide 29: Global growth by region
Global growth by region For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Limited Annual Gener
Slide 30: Global growth by region – United States
Global growth by region – United States For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Limi
Slide 31: Global growth by region – European Union
Global growth by region – European Union For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Lim
Slide 32: Global growth by region – Japan
Global growth by region – Japan For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Limited Annu
Slide 33: Global growth by region – China
Global growth by region – China For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Limited Annu
Slide 34: Global growth by region – Australia
Global growth by region – Australia For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Australia Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Limited
Slide 35: Resources continue to drive economic growth
Resources continue to drive economic growth For personal use only NelsonWest North Point Shelf Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 35
Slide 36: Supporting economic growth
Supporting economic growth For personal use only Shanghai China BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 36
Slide 37: Australia is a world leader in resources
Australia is a world leader in resources For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 37
Slide 38: Delivering long-term sustainable value
Delivering long-term sustainable value For personal use only Sustainability Integrity Respect Performance Simplicity Accountability BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 38
Slide 39: Andrew Mackenzie, Chief Executive Officer
For personal use only Newman Australia Andrew Mackenzie Chief Executive Officer Annual General Meeting 20 November 2014
Slide 40: Our commitment to sustainability
Our commitment to sustainability For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 40
Slide 41: Sustainability
Sustainability For personal use only Arid Recovery Program Bullsbrook Volunteer Fire Service Five Rivers Conservation Project PATH Project Australia Australia Australia Mozambique BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 41
Slide 42: Delivering strong financial results
Delivering strong financial results For personal use only Attributable profit – excluding exceptional • Increased Group production1by by9% 9% items • Productivity gains of US$2.9 billion (US$ billion) 25 • US$6.6 billion of sustainable productivity gains over the past two years • Capital and explora
Slide 43: Record production
Record production For personal use only Newman BMA Escondida Eagle Ford Record production Australia Australia Chile United States BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 43
Slide 44: A disciplined systematic approach
A disciplined systematic approach For personal use only Spence Chile BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 44
Slide 45: Sustainable productivity
Sustainable productivity For personal use only Jimblebar Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 45
Slide 46: Driving productivity in our Iron Ore assets
Driving productivity in our Iron Ore assets For personal use only Train departures Travel time Train delays 28% 23% 50% BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 46
Slide 47: Continuous improvement
Continuous improvement For personal use only Perth Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 47
Slide 48: Building a step-up culture
Building a step-up culture For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 48
Slide 49: Productivity at Olympic Dam
Productivity at Olympic Dam For personal use only Olympic Dam Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 49
Slide 50: Our strategy
Our strategy For personal use only Newman BMA Olympic Dam Shenzi Jansen Australia Australia Australia United States Canada BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 50
Slide 51: Portfolio simplification
Portfolio simplification For personal use only Petroleum and Potash Copper Iron Ore Coal Aluminium, Manganese and Nickel Note: Several assets can be represented by one marker. BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 51
Slide 52: Evolution of our portfolio
Evolution of our portfolio For personal use only BHP Billiton core portfolio* Proposed new company Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Worsley Alumar Aluminium Mozal Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US GEMCO Hotazel TEMCO Metallo
Slide 53: Delivering sustainable value
Delivering sustainable value For personal use only Five Rivers Conservation Project Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 53
Slide 54: Supporting conservation
Supporting conservation For personal use only Valdivian Coast Five Rivers Conservation Project Chile Australia Photo credit: Nick Hall for The Nature Conservancy BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 54
Slide 55: Broader economic contribution
Broader economic contribution For personal use only 55% of spend with local businesses US$9.9 billion1 paid in royalties and taxes 1% pre-tax profit committed to community – US$242 million in FY14 1. Taxes borne primarily comprises income tax and royalty-related taxes paid, production-based royaltie
Slide 56: Supporting our communities
Supporting our communities For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 56
Slide 57: Community programs in South Australia
Community programs in South Australia For personal use only BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 57
Slide 58: Driving performance
Driving performance For personal use only Jimblebar Australia BHP Billiton Limited Annual General Meeting, 20 November 2014 Slide 58
Slide 59: Our productivity journey
Our productivity journey For personal use only • Delivering a 16% increase in production over two years to the end of FY15 • Targeting another $3.5 billion in annualised productivity gains by the end of FY17 • Reducing our capital expenditure by a third to $15.2 billion in FY14 • Over the past decad
Slide 60: Our commitment
Our commitment For personal use only • To maintain a strong balance sheet and solid A credit rating • To continue to selectively invest in high return diversified investment opportunities through the cycle • To extend our progressive base dividend policy • To return excess capital to shareholders co
Slide 61: For personal use only
cdl bhpbilliton resourcing the future