Slide 1: Stable in the Long Term… Responsive in the Short Term
Spence Copper, Chile Stable in the Long Term… Responsive in the Short Term UBS Global Basic Materials Conference 2009 Andrew Mackenzie, Chief Executive Non Ferrous 11 June 2009
Slide 2: Disclaimer
Disclaimer The views expressed in this presentation are based on information derived from publicly available sources that have not been independently verified. No representation, warranty or undertaking, express or implied, is made or given as to the fairness, accuracy, completeness or reliability o
Slide 3: Agenda
Agenda An Unchanged Strategy Current Economic Conditions and Our Response UBS Global Basic Materials Conference, June 2009 Slide 3
Slide 4: An Unchanged Strategy
An Unchanged Strategy Large, low-cost, long-life Tier 1 assets Export oriented Upstream focused A balanced portfolio Safety Safety Equipment Demonstration Discussion Environmental Rehabilitation Samancor, Peak Downs,South Africa Australia Deep inventory of growth options Norwich Park, Aust
Slide 5: A Balanced Portfolio
A Balanced Portfolio Steelmaking Non-Ferrous Energy Materials Products Products Iron Ore Copper Petroleum Metallurgical Aluminium LNG Coal Nickel Energy Coal Manganese Diamonds Uranium UBS Global Basic Materials Conference, June 2009 Slide 5
Slide 6: Responsive to Market Conditions
Responsive to Market Conditions Indefinite suspension of Ravensthorpe nickel operation, and cessation of mixed nickel cobalt hydroxide processing at Yabulu Temporary suspension of two pellet plants at Samarco Iron Ore Temporary reduction in Samancor Manganese production Suspension of copper
Slide 7: Low Operational Leverage from Low Cost Assets
Low Operational Leverage from Low Cost Assets EBIT Margin (%) 50 BHP Billiton 40 Key 30 Peers 20 10 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Source: Company interim and annual reports of BHP Billiton and its key peers. EBIT excludes exceptional items,
Slide 8: Tier 1 Assets: A Preference for Basin Plays
Tier 1 Assets: A Preference for Basin Plays Allows us to invest for the long term We can benefit from investing at scale Two Examples Iron Ore: Pilbara, Western Australia Potash: Saskatchewan & Manitoba, Canada UBS Global Basic Materials Conference, June 2009 Slide 8
Slide 9: Iron Ore: A Significant Resource Position
Iron Ore: A Significant Resource Position BHP Billiton Resource and Potential Mineralisation (bt, 100% basis) N Roy Hill 0 5 10 20 30 40 50km Scale 1: 1 000 000 Central Pilbara: 7bt Resource + 12-20bt potential mineralisation Yandi Hub RGP5 Upper Marillana Yandi Marillana Central Hub East Pilbara: 5
Slide 10: Iron Ore: The Ability to Achieve Scale
Iron Ore: The Ability to Achieve Scale Western Australia Iron Ore Growth Path (100% basis) 145 mtpa 350 mtpa Planning Construction Completed 50 mtpa 26 mtpa 129 mtpa Installed Capacity RGP4 RGP5 Studies (a) (a) All studies and estimated capacity remain under review until they are approved for execut
Slide 11: Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin
Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin Exciting new joint venture with Rio Tinto announced on 5 June In principle agreement to form 50:50 joint venture of Pilbara iron ore assets to leverage benefits of scale Expected benefits include: Substantial and unique produ
Slide 12: Potash: Another Basin Play?
Potash: Another Basin Play? Jansen Project Young Boulder Key target Secondary areas priority areas UBS Global Basic Materials Conference, June 2009 Slide 12
Slide 13: Jansen Project: A Potential Mega Mine
Jansen Project: A Potential Mega Mine The most advanced of our project areas Jansen Drilling, July 2008 Exploration work comprising drilling and 3D seismic program has recently been completed Nearby operations in the mining corridor - favourable grades, ground conditions and infrastructure P
Slide 14: Agenda
Agenda An Unchanged Strategy Current Economic Conditions and Our Response UBS Global Basic Materials Conference, June 2009 Slide 14
Slide 15: What does the World Look Like?
What does the World Look Like? OECD Unemployment and GDP Growth OECD Retail Trade (%) (YoY % Change, Volumes) 10 OECD Unemployment Rate SADJ 6 GDP YoY Growth 8 4 2 6 0 4 (2) 2 (4) 0 (6) (2) (8) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 1999 2000 2001 2002 2
Slide 16: China Trade Performance Still Unclear
China Trade Performance Still Unclear Trade Performance in China (% Change YoY) 60 Exports Imports 40 20 0 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 (20) (40) (60) Source: CEIC. UBS Global Basic Materials Conference, June 2009 Slide 16
Slide 17: China Copper Raw Material Imports & Scrap
China Copper Raw Material Imports & Scrap Trend in Chinese Raw Material Imports (kt of material) 100% Scrap 80% 60% Net Cathode 40% 20% Concentrates 0% Jan 2005 Sep 2005 Jun 2006 Feb 2007 Nov 2007 Jul 2008 Apr 2009 Source: Chinese Customs. UBS Global Basic Materials Conference, June 2009 Slide 17
Slide 18: Why We Remain Positive on the Resources Sector in the Long Term
Why We Remain Positive on the Resources Sector in the Long Term Urbanisation trends to continue More sophisticated manufacturing Increasing middle class wealth More commercially built flats requiring steel Chongqing, China UBS Global Basic Materials Conference, June 2009 Slide 18
Slide 19: BHP Billiton: Stable in the Long Term… Responsive in the Short Term
BHP Billiton: Stable in the Long Term… Responsive in the Short Term A clear strategy Tightening the organisation in uncertain times Commitment to simplicity, accountability and effectiveness Continue to invest in growth Opportunistic M&A We are well positioned to create value from long t
Slide 20: bhpbilliton
édl bhpbilliton ourcing the future