Slide 1: Preliminary results 2014 financial year
Jimblebar Preliminary results 2014 financial year Andrew Mackenzie Chief Executive Officer Graham Kerr Chief Financial Officer 19 August 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer
Disclaimer bhpbilliton resourcing the future Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 3: Preliminary results 2014 financial year
New South Wales Energy Coal Preliminary results 2014 financial year Andrew Mackenzie Chief Executive Officer 19 August 2014 bhpbilliton resourcing the future
Slide 4: Delivering on our commitments
Delivering on our commitments bhpbilliton resourcing the future Exceeded production guidance for a number of our core commodities Another US$2.9 billion of productivity-led gains embedded with more to come Capital and exploration expenditure declined by 32% to US$15.2 billion By maintaining financia
Slide 5: Keeping our people and operations safe
Keeping our people and operations safe bhpbilliton resourcing the future 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 Preliminary results, 19 August 2014 Slide 5
Slide 6: Strong financial results
Strong financial results bhpbilliton resourcing the future Underlying EBITDA of US$32.4 billion, up 7% Underlying attributable profit of US$13.4 billion, up 10% Net operating cash flow of US$25.4 billion, up 26% Capital and exploration expenditure1 of US$15.2 billion, down 32% Free cash flow increas
Slide 7: Exceeded guidance for our core commodities
Exceeded guidance for our core commodities bhpbilliton resourcing the future Group production1 increased by 9% in FY14 – record Western Australia Iron Ore (WAIO) production of 225 Mt2 significantly exceeded full-year guidance – record Queensland Coal production of 37.6 Mt exceeded full-year guidance
Slide 8: Positioned for another year of record production
Positioned for another year of record production bhpbilliton resourcing the future The ramp-up of major growth projects and our productivity agenda will deliver another year of record performance in FY15 – iron ore production of 225 Mt, up 11% – copper production of 1.8 Mt, up 5%1 – petroleum produc
Slide 9: Seeking a continual improvement in performance
Seeking a continual improvement in performance bhpbilliton resourcing the future Unique systems, processes and our organisational design allow us to deploy best practice across the Group We are generating and analysing common data across our global portfolio – real-time benchmarking – definition of
Slide 10: Targeting low-cost growth at WAIO
Targeting low-cost growth at WAIO to 290 Mtpa bhpbilliton resourcing the future We have more than doubled annual iron ore production in the Pilbara over the last decade through a series of major investments We now have the opportunity to unlock significant low-cost capacity and plan to grow WAIO pro
Slide 11: Preliminary results 2014 financial year
Shenzi Preliminary results 2014 financial year Graham Kerr Chief Financial Officer 19 August 2014 bhpbilliton resourcing the future
Slide 12: Other items affecting underlying profitability
Other items affecting underlying profitability bhpbilliton resourcing the future Other items (US$ million) Underlying EBIT Tax 600 FY14 H1 FY14 300 170 0 (300) (300) (156) (143) (51) (26) (600) (797) (900) Impairments Mine site Closure costs2 Redundancies3 Other 4 Balance sheet Remeasurement rehabil
Slide 13: Successfully managing the factors we control
Successfully managing the factors we control bhpbilliton resourcing the future Underlying EBIT variance (US$ billion) 30.0 20.0 10.0 0.0 22.9 (3.4) 1.8 (0.8) 20.5 1.9 1.0 1.9 (0.1) (0.0) (2.1) (0.2) 22.9 FY13 Price Exchange Inflation Sub-total Growth volumes Productivity volumes Controllable cash co
Slide 14: Petroleum & Potash: growing liquids production
Petroleum & Potash: growing liquids production bhpbilliton resourcing the future The average realised price of natural gas across our portfolio increased by 16% Significant growth at Onshore US and Atlantis contributed to an 18% increase in high-margin liquids production The rise in non-cash charges
Slide 15: Copper: lowering unit costs despite grade decline
Copper: lowering unit costs despite grade decline bhpbilliton resourcing the future Weaker base metal prices, including a 5% decline in the average realised price of copper, significantly impacted profitability Insourcing initiatives and the optimisation of contractor activities contributed to a 6%
Slide 16: Iron Ore: delivering capital efficient growth
Iron Ore: delivering capital efficient growth bhpbilliton resourcing the future Our average realised price of iron ore declined by 6% to US$103 per wet metric tonne (FOB) in FY14 WAIO achieved a fourteenth consecutive annual production record and exported 223 Mt1 of high-quality product A 12% reduct
Slide 17: Coal: moving sharply down the cost curve
Coal: moving sharply down the cost curve bhpbilliton resourcing the future A 24% reduction in unit cash costs at Queensland Coal largely offset the impact of lower prices, which included a 20% decline for our hard coking coal products Non-cash charges include an impairment at Energy Coal South Afric
Slide 18: Aluminium, Manganese & Nickel: leading the way on productivity
Aluminium, Manganese & Nickel: leading the way on productivity bhpbilliton resourcing the future Nickel and aluminium prices rallied towards the end of FY14 but remained lower on average for the period We continued to debottleneck our operations while reducing headcount and consumable costs Within O
Slide 19: Another US$2.9 billion of productivity-led gains
Another US$2.9 billion of productivity-led gains bhpbilliton resourcing the future Productivity-led volume and cost efficiencies (US$ billion) 4.0 Target We exceeded our target by US$1.1 billion 0.7 2.9 3.0 0.4 2.0 0.4 1.8 0.8 1.0 0.6 0.0 Productivity volumes Operating cash costs Exploration & busin
Slide 20: Selective investment and strong growth in free cash flow
Selective investment and strong growth in free cash flow bhpbilliton resourcing the future We successfully completed six major capital projects in FY14 – expansion of Jimblebar mining and processing capacity to 35 Mtpa delivered six months ahead of schedule – 5.5 Mtpa Caval Ridge hard coking coal pr
Slide 21: Our balance sheet is strong and getting stronger
Our balance sheet is strong and getting stronger bhpbilliton resourcing the future We achieved a US$1.7 billion reduction in net debt in FY14 to US$25.8 billion – finance leases totaling US$757 million were brought to account in H2 FY14 We continued to optimise our debt facilities – issued bonds tot
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Slide 23: Appendix
Appendix bhpbilliton resourcing the future
Slide 24: Key net profit sensitivities
Key net profit sensitivities bhpbilliton resourcing the future Approximate impact1 on FY15 net profit after tax of changes of US$ million US$1/t on iron ore price 135 US$1/bbl on oil price 50 US¢1/lb on copper price 30 US$1/t on metallurgical coal price 30 US¢10/MMbtu on US gas price 25 US¢1/lb on a
Slide 25: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: August 19, 2014 By: /