Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2009)
90 slides from Bhp's shareholder meeting presentation, Nov 26, 2009
Slide 1: Annual General Meeting, BHP Billiton Limited
For personal use only Annual General Meeting BHP Billiton Limited 26 November 2009
Slide 2: Don Argus, Chairman
For personal use only Don Argus Chairman Annual General Meeting 26 November 2009
Slide 3: BMA Operations
BMA Operations For personal use only BHP Billiton 2009 Annual General Meeting Slide 3
Slide 4: Disclaimer
Disclaimer For personal use only Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of
Slide 5: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 6: Marius Kloppers, Chief Executive Officer
Marius Kloppers For personal use only Chief Executive Officer BHP Billiton 2009 Annual General Meeting Slide 6
Slide 7: Jac Nasser, Chairman Elect
Jac Nasser For personal use only Chairman Elect BHP Billiton 2009 Annual General Meeting Slide 7
Slide 8: Alan Boeckmann
Alan Boeckmann For personal use only BHP Billiton 2009 Annual General Meeting Slide 8
Slide 9: John Buchanan
John Buchanan For personal use only BHP Billiton 2009 Annual General Meeting Slide 9
Slide 10: Carlos Cordeiro
Carlos Cordeiro For personal use only BHP Billiton 2009 Annual General Meeting Slide 10
Slide 11: David Crawford
David Crawford For personal use only BHP Billiton 2009 Annual General Meeting Slide 11
Slide 12: Keith Rumble
Keith Rumble For personal use only BHP Billiton 2009 Annual General Meeting Slide 12
Slide 13: John Schubert
John Schubert For personal use only BHP Billiton 2009 Annual General Meeting Slide 13
Slide 14: Wayne Murdy
Wayne Murdy For personal use only BHP Billiton 2009 Annual General Meeting Slide 14
Slide 15: David Jenkins
David Jenkins For personal use only BHP Billiton 2009 Annual General Meeting Slide 15
Slide 16: David Morgan
David Morgan For personal use only BHP Billiton 2009 Annual General Meeting Slide 16
Slide 17: Paul Anderson
Paul Anderson For personal use only BHP Billiton 2009 Annual General Meeting Slide 17
Slide 18: Gail de Planque
Gail de Planque For personal use only BHP Billiton 2009 Annual General Meeting Slide 18
Slide 19: Alberto Calderon, Chief Commercial Officer
Alberto Calderon For personal use only Group Executive, Chief Commercial Officer BHP Billiton 2009 Annual General Meeting Slide 19
Slide 20: Marcus Randolph, Ferrous and Coal
Marcus Randolph For personal use only Group Executive, Chief Executive of Ferrous and Coal BHP Billiton 2009 Annual General Meeting Slide 20
Slide 21: Karen Wood, Chief People Officer
Karen Wood For personal use only Group Executive, Chief People Officer BHP Billiton 2009 Annual General Meeting Slide 21
Slide 22: Mike Yeager, Petroleum
Mike Yeager For personal use only Group Executive, Chief Executive Petroleum BHP Billiton 2009 Annual General Meeting Slide 22
Slide 23: Andrew Mackenzie, Non-Ferrous
Andrew Mackenzie For personal use only Group Executive, Chief Executive Non-Ferrous BHP Billiton 2009 Annual General Meeting Slide 23
Slide 24: Alex Vanselow, Chief Financial Officer
Alex Vanselow For personal use only Group Executive, Chief Financial Officer BHP Billiton 2009 Annual General Meeting Slide 24
Slide 25: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 26: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 26
Slide 27: Jac Nasser, Chairman Elect
Jac Nasser For personal use only Chairman Elect BHP Billiton 2009 Annual General Meeting Slide 27
Slide 28: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 29: Commodity Price Movements
Commodity Price Movements For personal use only Commodity Price Movement (Index, Q1 FY2009 = 100) 900 750 Energy Coal Iron Ore 600 Gold Aluminium 450 Copper Zinc 300 Oil (WTI) Lead 150 Nickel 0 Q1 Q2 Q3 Q4 Q1 2009 2010 Sources: Datastream, UBS. BHP Billiton 2009 Annual General Meeting Slide 29
Slide 30: Financial Results 2009
Financial Results 2009 For personal use only Net Operating Cash Flow (US$bn) Dividend for 2009 increased 20 18.9 18 Underlying EBIT(a) margin 16 of 40% 14 12 Underlying return on capital of Organic Growth(b) nearly 25% 10 10.7 8 6 3.9 4 Dividends 2 4.6 0 FY2002 FY2009 (a) Underlying EBIT is ea
Slide 31: The Strength Of Our Strategy
The Strength Of Our Strategy For personal use only EBIT Margin (%) 70 60 Petroleum 50 Base Metals Aluminium 40 D&SP SSM 30 Iron Ore Manganese 20 Met Coal Energy Coal BHP Billiton 10 0 FY 2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 BHP Billiton 2009 Annual General Meeting Slide 31
Slide 32: Delivering Value To Shareholders
Delivering Value To Shareholders For personal use only Net Gearing Organic Growth(a) Dividends per Share (%) (US$bn) (US¢) 40 12 CAGR: 21% 100 10 80 30 8 60 20 6 40 4 10 20 2 0 0 0 FY2002 FY2009 FY2002 FY2009 FY2002 FY2009 (a) Includes capital and exploration expenditures (excludes acquisitions). FY
Slide 33: Creating Considerable Wealth For Shareholders
Creating Considerable Wealth For Shareholders For personal use only BHP Billiton Limited(a) (A$) 30 June 2008 $53,330 20 November 2009 55,000 $51,172 Value of Additional Shares 29 June 2007 Value of 1,000 BHP Billiton Limited shares $42,033 44,000 30 June 2006 $34,194 33,000 22,000 30 June 2003 28 J
Slide 34: Western Australian Iron Ore Production Joint Venture
Western Australian Iron Ore Production Joint Venture For personal use only Value adding transaction for BHP Billiton and Rio Tinto Optimisation of a Tier 1 resource province Substantial and unique production and development synergies Newman, Australia Port Hedland, Australia BHP Billiton 2009
Slide 35: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 36: Economic Activity Contracted In All Countries
Economic Activity Contracted In All Countries For personal use only Global GDP Growth (%, Quarter-Over-Quarter, Annualised) 9 7 5 3 1 (1) World (3) Advanced Economies Emerging and Developing Economies (5) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009 Source: IM
Slide 37: China's Urban Population Is On Track To Reach One Billion
China’s Urban Population Is On Track To Reach For personal use only One Billion China Population by City Size China's Expected Urbanisation in 2025 (Millions of people) 926 Chinese cities will have over one million 221 people living in them – Europe has 35 today Mega 120 (10m+) 104 Big 5 (5m–10m) sq
Slide 38: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 38
Slide 39: An Extraordinary Year
An Extraordinary Year For personal use only Commodity Price Movement (Index, Q1 FY2008 = 100) 250 200 Lead Zinc Nickel 150 Oil (WTI) Copper 100 Aluminium Gold Iron Ore 50 Energy Coal 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 Sources: DataStream, GlobalCOAL, Steel Business Briefing. BHP Billiton 20
Slide 40: An Unchanged Strategy
An Unchanged Strategy For personal use only * Aluminium Base Metals Diamonds & Specialty Products * Energy Coal Iron Ore Manganese Metallurgical Coal Petroleum Stainless Steel Materials Offices * Asset sale was completed 31 July 2009 (Yabulu Refinery). * Interest transferred to joint venture partner
Slide 41: A Substantial Investment In Growth
A Substantial Investment In Growth For personal use only Market Capitalisation at 13 November 2009 (US$bn) 200 …a consistent and lasting strategy; 160 ... a simple, effective and accountable organisation; 120 ... investing for the future. 80 40 0 China Shenhua Anglo Platinum Aluminium Corp. BHP Bill
Slide 42: Net Gearing Relative To Peers
Net Gearing Relative To Peers For personal use only Net Gearing (%) 70 BHP Billiton 60 Peers 50 40 30 20 10 0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Source: BHP Billiton and peer companies’ annual and half year reports. BHP Billiton 2009 Annual General Meeting Slide 42
Slide 43: Total Recordable & Classified Injury Frequency
Total Recordable & Classified Injury Frequency For personal use only TRIF / CIF, FY2007 – Q1 FY2010 (Frequency per million hours) 8 Total Recordable Injury Frequency 7 Classified Injury Frequency 6 5 4 3 2 1 0 FY2007 FY2008 FY2009 Q1 FY2010 BHP Billiton 2009 Annual General Meeting Slide 43
Slide 44: Focused On The Long Term
Focused On The Long Term For personal use only Chinese Finished Steel Demand Chinese Copper Cathode Demand (Index, 2008 = 100) (Index, 2008 = 100) 250 250 Other Construction 200 200 150 150 100 100 50 50 0 0 2008 2025E 2008 2025E Source: BHP Billiton. BHP Billiton 2009 Annual General Meeting Slide 4
Slide 45: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 46: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 46
Slide 47: Our People
Our People For personal use only BHP Billiton 2009 Annual General Meeting Slide 47
Slide 48: Climate Change
Climate Change For personal use only BHP Billiton 2009 Annual General Meeting Slide 48
Slide 49: Power Generation Needs Will Be Met By The Broad Suite Of Fuel Sources
Power Generation Needs Will Be Met By The For personal use only Broad Suite Of Fuel Sources Aggregated Production CAGR (PW h) 2008-2025E 22 Oil (5.8)% Gas 3.6% 16 Coal 1.0% 11 5 Nuclear 4.5% Wind 12.6% Solar 20.8% Hydro 1.4% Other 1.0% 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 Source: BHP Bi
Slide 50: Reliance On Nuclear Energy
Reliance On Nuclear Energy For personal use only Nuclear Share by Country (%) 100 75 Other 50 Nuclear 25 0 France Belgium South Sweden Switzerland Japan Germany Finland USA Korea Sources: World Nuclear Agency, International Atomic Energy Agency. BHP Billiton 2009 Annual General Meeting Slide 50
Slide 51: Climate Change – Key Planks
Climate Change – Key Planks For personal use only We consider there are four key planks: An effective global effort by both the developed and developing world Solution is a combination of emissions reduction, behaviours and lifestyle changes An examination of alternative low cost, low carbon e
Slide 52: Climate Change – Steps Being Taken
Climate Change – Steps Being Taken For personal use only For our part, BHP Billiton is taking a range of steps including: Setting ambitious energy and greenhouse gas efficiency targets for our operations Working to achieve a meaningful reduction in our internal energy use and our greenhouse gas
Slide 53: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 54: 11th Largest Company In The World By Market Cap
For personal use only 50 100 150 200 250 300 350 400 Petrochina (US$bn) Exxon Mobil Ind & Comm Bank of China Microsoft China Const Bank Sources: Citi, Bloomberg, BHP Billiton. BHP Billiton 2009 Annual General Meeting HSBC Wal-Mart Petrobras Shell Market Capitalisation at 13 November 2009 China Mobil
Slide 55: Remuneration Policy Principles
Remuneration Policy Principles For personal use only Remuneration policy principles: To provide competitive rewards to attract, motivate and retain highly-skilled executives willing to work around the world To set demanding key performance indicators including financial and non-financial measure
Slide 56: CEO Remuneration
CEO Remuneration For personal use only CEO Remuneration 2009(a) ~30% Fixed Long Salary, Term pension Incentive & other (EV) benefits 2,750,000 2,880,465 Short Term Incentive 3,413,531 ~70% At Risk (a) Salary is current annualised amount ($2,038,885). Short term incentive includes FY 2009 cash award,
Slide 57: CEO Remuneration
CEO Remuneration For personal use only 4 year US$ 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 compound annual growth Base Salary 1,312,500 1,580,000 1,777,500 1,850,000 2,038,885 - Benefits 60,801 65,930 100,762 74,288 40,598 - Pension Contribution 630,000 758,400 853,200 671,215 800,982 - Tot
Slide 58: Five Year Required Outperformance Of Peers
Five Year Required Outperformance Of Peers For personal use only TSR Performance ILLUSTRATIVE (%) 90 BHP Billiton TSR required for full 80 vesting Maximum vesting requires an 70 outperformance of 5.5% per annum compound for 5 years producing a total outperformance of 30.7% 30.7% 60 50 Index TSR The
Slide 59: CEO Remuneration: LTIP Awarded & Vested
CEO Remuneration: LTIP Awarded & Vested For personal use only F/Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Long Term Incentive Plan Subject to Number of 225,000 225,000 225,000 333,327 500,000 Shareholder Awards Approval Must satisfy Must satisfy Must satisf
Slide 60: Five Year Outperformance
Five Year Outperformance For personal use only 5-year TSR Performance of BHP Billiton (Measured against the Comparator Group - Rebased in US$) 600 BHP Billiton Ltd 500 BHP Billiton Plc Median of Pre-2007 Comparator Group 400 Median of Post-2007 Comparator Group 300 200 100 Jul 2004 Jun 2005 Jun 2006
Slide 61: Value of Outperformance
Value of Outperformance For personal use only BHP Billiton Outperformance of Index TSR (%, Over the 2004 LTIP Cycle) 160 $80.6bn Excess BHP Billiton Value Creation 148.2% = BHP Billiton 140 outperformance Index + 5.5% p.a. of Index TSR 120 $63.9bn 100 80 60 40 30.7% = +5.5% p.a. $16.7bn 20 outperfor
Slide 62: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 63: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 63
Slide 64: Jane McAloon, Group Company Secretary
For personal use only Jane McAloon Group Company Secretary Annual General Meeting 26 November 2009
Slide 65: How To Vote
How To Vote For personal use only FOR AGAINST ABSTAIN 70% 700 30% 300 Assumes total holding of 1,000 shares BHP Billiton 2009 Annual General Meeting Slide 65
Slide 66: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 67: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 67
Slide 68: Agenda – Item 1: Receive Financial Statements
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 1: Receive Financial Statements Questions BHP Billiton 2009 Annual General Meeting Slide 68
Slide 69: Voting Paper
Voting Paper For personal use only BHP Billiton Limited ITEM NUMBER FOR AGAINST ABSTAIN 1 To receive the Financial Statements and Reports 2-7 To elect Directors: Carlos Cordeiro, David Crawford, Gail de Planque, Marius Kloppers, Don Argus, Wayne Murdy 8 Reappointment of auditor of BHP Billiton Plc 9
Slide 70: Agenda – Items 2-7: Election Of Directors
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Items 2-7: Election Of Directors Questions BHP Billiton 2009 Annual General Meeting Slide 70
Slide 71: Item 2: Re-election Of Carlos Cordeiro
Item 2: Re-election Of Carlos Cordeiro For personal use only BHP Billiton 2009 Annual General Meeting Slide 71
Slide 72: Item 3: Re-election Of David Crawford
Item 3: Re-election Of David Crawford For personal use only BHP Billiton 2009 Annual General Meeting Slide 72
Slide 73: Item 4: Re-election Of Gail de Planque
Item 4: Re-election Of Gail de Planque For personal use only BHP Billiton 2009 Annual General Meeting Slide 73
Slide 74: Item 5: Re-election Of Marius Kloppers
Item 5: Re-election Of Marius Kloppers For personal use only BHP Billiton 2009 Annual General Meeting Slide 74
Slide 75: Item 6: Re-election Of Don Argus
Item 6: Re-election Of Don Argus For personal use only BHP Billiton 2009 Annual General Meeting Slide 75
Slide 76: Item 7: Election Of Wayne Murdy
Item 7: Election Of Wayne Murdy For personal use only BHP Billiton 2009 Annual General Meeting Slide 76
Slide 77: Agenda – Item 8: Re-appointment of Auditor
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 8: Re-appointment of Auditor of BHP Billiton Plc Questions BHP Billiton 2009 Annual General Meeting Slide 77
Slide 78: Agenda – Item 9: Authority to Issue Shares
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 9: Authority to Issue Shares in BHP Billiton Plc Questions BHP Billiton 2009 Annual General Meeting Slide 78
Slide 79: Agenda – Item 10: Disapplication of Pre-emption Rights
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 10: Disapplication of Pre-emption Rights in BHP Billiton Plc Questions BHP Billiton 2009 Annual General Meeting Slide 79
Slide 80: Agenda – Item 11: Authority to Repurchase Shares
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 11: Authority to Repurchase Shares in BHP Billiton Plc Questions BHP Billiton 2009 Annual General Meeting Slide 80
Slide 81: BHP Billiton – Buy Back History
BHP Billiton – Buy Back History For personal use only Cumulative Share Buy Backs(a) (US$ million) (million shares) 14,000 BHP Billiton Plc 700 BHP Billiton Ltd 12,000 600 Cumulative number of shares repurchased 10,000 500 From FY2005, 680 million shares 8,000 repurchased, 400 6,000 representing 11.3
Slide 82: Agenda – Item 12: Cancellation of Plc Shares
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 12: Cancellation of BHP Billiton Plc Shares held by BHP Billiton Limited Questions BHP Billiton 2009 Annual General Meeting Slide 82
Slide 83: Agenda – Item 13: Approval of Remuneration Report
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 13: Approval of Remuneration Report Questions BHP Billiton 2009 Annual General Meeting Slide 83
Slide 84: Agenda – Item 14: Approval of Grants to Executive Director
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business – Item 14: Approval of Grants to Executive Director Questions BHP Billiton 2009 Annual General Meeting Slide 84
Slide 85: Item 14: Grants Under the GIS and the LTIP
Item 14: Grants Under the GIS and the LTIP For personal use only Group Incentive Scheme: – 55,932 Deferred Shares(a) or – 223,729 Options(a) or – a combination of both Long Term Incentive Plan: – 424,612 Performance Shares(b) a) Figures are estimates, based on share price and exchange rate as at
Slide 86: Agenda
Agenda For personal use only Chairman's Address CEO’s Address Chairman's Address Items of Business Questions BHP Billiton 2009 Annual General Meeting Slide 86
Slide 87: How to Ask a Question
How to Ask a Question For personal use only Go to one of the designated microphones Show your green or yellow entry card Give the attendant your name Wait until you have been introduced to the meeting BHP Billiton 2009 Annual General Meeting Slide 87
Slide 88: Annual General Meeting
Annual General Meeting BHP Billiton Limited For personal use only 26 November 2009
Slide 89: Thank you
For personal use only Remember to place the voting papers in the boxes beside the exit as you leave Thank you BHP Billiton 2009 Annual General Meeting Slide 89
Slide 90: For personal use only
édl bhpbilliton resourcing the future