Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (February 2008)
32 slides from Bhp's merger presentation, Feb 21, 2008
Slide 1: Filed by BHP Billiton under Rule 425
Filed by: BHP Billiton Plc and BHP Billiton Limited Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Rio Tinto Plc Commission File No.: 001-10533 The following are slides comprising a media presentation that was first given on January 19, 2008, and was subsequently amended to e
Slide 2: BHP Billiton Iron Ore – An excellent business with an exciting future
BHPexcellent An bhpBilliton Billiton business Iron Ore with – Media an exciting Briefingfuture
Slide 3: Disclaimer
Disclaimer combination presentation Subject no Billiton This or connection of from Neither jurisdictions Order persons included sourced Certain development limitation, only could The operate Page bhpBilliton otherwise securities reliance directors forward-looking document presentation as any such 2c
Slide 4: Disclaimer (Continued)
Disclaimer There results Billiton transaction, additional combinations forward-looking year-ended Report disclaims undertaking events, None earnings actual The presentation, probable extract calculated Goldman responsible referred shareholders jurisdiction of Securities In the by filed. US PROSPECTU
Slide 5: 1. Strong Business 2. Proven Project Delivery 3. Growth Strategy
1. Growth 2. 3. Page bhpBilliton Strong Proven 4 Business Project StrategyDelivery
Slide 6: Excellent Options for Growth
Excellent Options Growth Pipeline and •(Value ‘Licence People Page bhpBilliton Large First Business High Excellent Striving Discipline 5class Added level •high •Building to Multiple business, for improvement cost Operate’ project of grade Zero Processes) equity curve aHarm ore growth development str
Slide 7: 10 Minute Site Tour VIDEO
10 Minute Site Tour VIDEO bhpBilliton
Slide 8: Very strong monthly production and sales records
Very strong Record Monthly Page bhpBilliton 7 production railing salesrecord – at and higher Yandi, in sales December than forMonthly CY 2007 monthly shipping record record at Area in December C internal expectations
Slide 9: Expansions RGP3 and RGP4 on track
Expansions RGP3 RGP RGP4 Page bhpBilliton 3: 4: 8(Rapid MAC Construction onGrowth build time complete and on Project on track budget RGP3: 3) RGP4 mainline Shipped first trackore expansion from new already Commissioning complete underway “C” Berth in October
Slide 10: Major milestones: Safety and licence to operate commitments
Major9milestones Safety Commitments Page bhpBilliton performance to FY07 in housing with continues our andrenewal people FY08 to Awarded YTD, Achieving and licence 100% Australia’s results to share operate with largest our (A$300M) leadership improve reached A$400M indigenous including contractEco V
Slide 11: Safety: WA Iron Ore Striving for Zero Harm
•Safety WA Striving 20.6 FY05 5.9 9.0 12.0 Source: Page bhpBilliton Strong Comprehensive Relentless Iron 10 FY06 isBHP for leadership Ore core ZERO focus FY07 Total Billiton to our programs •FY08 Recordable HARM •Better business Falling Safety YTD prevention • injury Statistics Increased Injury rate
Slide 12: Strong record of WA Iron Ore performance
Strong Record WA Extensive are 27 Initiatives 24 14 •8 7FY * Longer BLASOR Reducing Increasing driving Iron year production Ore trains •BHPbusiness include: strong rail proprietary on ship EBIT/ Process Maintenance Continuous 0311FY Focus bhpBilliton Source: Page 04 year *cycle loader miners FY on p
Slide 13: Strong FY07 EBITDA margin
Strong FY07 High Freight 54% 61% EBITDA Page Margin bhpBilliton FOB 12 proportion WAFY07 Margin Iron (Free-On-Board) EBITDA Ore of FOB sales EBITDA EBITDA margin on aEBITDA Margin delivered performance margin basis (~50%) removesimproves the effectport of freight scheduling sales and revenue reduces
Slide 14: FY07 financial results compared with peers
We are FY07 22 23 26 28 BHP Billiton Source: CVRD Iron Page bhpBilliton Ore Billiton Rio 13 Global the Financial Tinto BHP Results Vale industry Billiton, is Iron tonne Kumba a Presentation Statements highly Ore leader of Rio EBIT ore efficient Tinto: by onper (US EBIT ship 31-Dec-2007. Tonne 2007 b
Slide 15: 1. Strong Business 2. Proven Project Delivery 3. Growth Strategy
1. Growth 2. 3. Page bhpBilliton Strong Proven 14 Business Project StrategyDelivery
Slide 16: Project delivery against budget and schedule
Project Iron Over 120% Under 100% 60% 80% 40% •Notes: Page bhpBilliton All RGP4ore Area major 20% 15 budget budget delivery on expansion 0% Cbudget growth & Behind Ahead Accel. excellence and projects projects, schedule ofRGP1 on schedule schedule in since AUD RGP2 a hot the Budget as market RGP3 be
Slide 17: New target railed tonnes and RGP3 performance
Newtarget Railed Tonnes 350 RGP Q3 200 250 300 Source: Average RGP3 6000 On 5000 FY2006 4000 FY2007 Page bhpBilliton Q4 Actual equipment Design 16Target ore Q1 per BHP FY2007 FY2008 tonnes Gross performance to Q2 Performance—Non-shutdown day Rate port GLR Billiton Q3 Loading to loaded meets Q1 reach
Slide 18: Innovating and compressing capital costs
Innovating Capital Compressing 105 •57 From Source: Approved Page bhpBilliton Modular Offshore Contract 17 72Costs BHP Mt since partnerships design sourcing toinBilliton construction manage (US$/tonne, 2002 2002— 2002 to–capital 300 completed In timeframes 100% planning Mtpa costs basis) installed o
Slide 19: We commit and deliver: more than double capacity
We commit WA Accel. RGP1 RGP2 RGP3 RGP4 Area Jimblebar Yandi 200 2000 Goldsworthy Source: Page bhpBilliton Production 180 C 18 2001 will +10Mt, +8Mt +20Mt +26Mt Expansion & BHP 160 PACE Satellites 2002 more and US$575M 140 Billiton US$1529M US$2100M US$111M (Mtpa, we 2003 than +15Mt, 120 +7Mt, deliv
Slide 20: 1. Strong Business 2. Proven Project Delivery 3. Growth Strategy
1. Growth 2. 3. Page bhpBilliton Strong Proven 19 Business Project StrategyDelivery
Slide 21: We will deliver our growth pipeline
We will 300 Growth Mine Approved Existing FY07 Source: Note: Page bhpBilliton Mtpa 20 and Growth FY08 BHP Pipeline deliver Production infrastructure Capacity FY09 Billiton, Pipeline installed FY10 Expansion (108 100% subject optimisation capacity FY11 Mtpa) share to (RGP3 FY12 approvals of 300 (RGP5
Slide 22: A large resource endowment in the Pilbara
AThe Pilbara (bt, 23-34bt 16-27 11 Notes: BHP over in document Presentation, •calculation reserves Annual bhpBilliton Bar BHP Rio large the 7equity the Billiton Tinto: size measures determination 15-23 Billiton Resource resource Report 26-34bt last asrepresents can share) defined for Reserves 40 26
Slide 23: Large Pilbara deposits, Rio Tinto and BHP Billiton
Large Port Dampier Deposit Rio 0.5bt 1.0bt 2.0bt BHP Source: as from Tinto’s representative (as Industry probable calculated bhpBilliton locations defined Tinto Hedland Billiton the equity Annual Rio size Guide announced Cape reserves Identified inwithin are Tinto scale resource accordance Reserves/
Slide 24: Concentrated Pilbara mineralisation
Concentrated Pilbara Roy Central N 0 Upper Yandi Marillana Mining Jinayri Area South Coondewana Other Prairie BHP mineralisation results exploration •document reserves Annual bhpBilliton This The Source: *The 5—Infrastructure 10 Hill Billiton’s Cmeasures Pilbara: —Smaller —Product BHP Marillana 20 a
Slide 25: What is a mining hub and why is it good? VIDEO
What is a mining hub and why is it good? VIDEO bhpBilliton
Slide 26: Each hub designed for optimal mining and delivery
Each OB Whaleback Newman Northern R Brockman 20km Source: Note: Page Competitive Outer Expansions Hedland Double MAC Yandi ACWS Central Mega bhpBilliton deposit 32, 20,21,22, 17,18, 25 hub schematics Port Hub Packsaddle Newman 33 Hub Jinayri Pilbara Large, BHP flank Mega is Southern OB 19 Primary, H
Slide 27: Detailed growth path to 300Mtpa
Detailed Growth Installed 200 250 Jinayri 300 Area 150 50 100 F 0 Central Newman Source: Page bhpBilliton Y09 Newman Yandi C 26 FY14 Pilbara BHP Path resource Capacity, HubFY19 to Billiton Areas: Mega 300Mtpa plan FY24 100% East Hub to FY29 (growth terms, deliver Central (AreawMt our C, beyond West
Slide 28: Port Hedland: new channel and port capacity
Port New channel ~400Mtpa •Government BHP Notes: Study Page27Page bhpBilliton Total Port: Caninfrastructure Hedland Existing Billiton be Phase RGP5 a) potential channel expanded Alannah ~ 27 2, 320Mtpa support Berths rail Stockyards inner harbour August port •system Clear MacTiernan, planning to har
Slide 29: The port will facilitate our expansions VIDEO
The port will Schematic bhpBillitondrawing facilitate reflecting our expansions current plans VIDEOunder evaluation FINUCANE ISLAND NELSON PT
Slide 30: Plans for RGP5 development
Plans RGP5 Development Fast – Note Page29Page bhpBilliton 4Negotiations Modelling Inner Seeking new tracked 1:Alannah towill harbour Berths expand Board deliver development 29 tobeyond with date planned panamax the MacTiernan, approval aninner indicates Port additional 200Mtpa Hedland capacity harbo
Slide 31: Outer harbour channel development
Finalising Modelling Approximately Landside Ultimate Outer Berth Page bhpBilliton 30 pockets Harbour harbour outer development the shows optimised Channel potential channel harbour expansion 70% channel ofprofile will capacity dredging greater channel plans length be adjacent than are iscosts alignm
Slide 32: We understand the strategy, challenges and have the capabilities
SAFETY We PEOPLE Page bhpBilliton understand have 31 the EQUIPMENT PRODUCTION strategy, the challenges capabilities RESOURCES COST GROWTH and the assets to deliver