Slide 1: BHP HY2025 Results Presentation
Exchange release 18 February 2025 BHP HY2025 Results Presentation Attached are the presentation slides for BHP’s HY2025 Results Presentation by the Chief Executive Officer and Chief Financial Officer. For personal use only The presentation slides and a video of this presentation are available at: ht
Slide 2: Contacts
Contacts Media Investor Relations media.relations@bhp.com investor.relations@bhp.com Australia and Asia Australia and Asia Josie Brophy John-Paul Santamaria +61 417 622 839 +61 499 006 018 For personal use only Europe, Middle East and Africa Europe, Middle East and Africa Gabrielle Notley James Bell
Slide 3: Half year results
For personal use only December 2024 Half year results Western Australia Iron Ore
Slide 4: Disclaimer
Disclaimer The information in this presentation is current as at 18 February 2025. It is in summary form and is not necessarily complete. It should be read together with the BHP Results for the half year ended 31 December 2024. Forward-looking statements This presentation contains forward-looking st
Slide 5: Performance summary
For personal use only Performance summary Half year ended 31 December 2024 Mike Henry Chief Executive Officer Escondida
Slide 6: A winning strategy
A winning strategy A focused portfolio, operational excellence and a distinctive approach to social value provide an enduring competitive advantage BHP has large, high-quality, long-life assets… …in commodities positively leveraged to global megatrends For personal use only Jansen GHG Spence WAIO Po
Slide 7: A strong start to FY25
A strong start to FY25 Continued operational excellence delivers copper growth and solid financial results For personal use only On track for FY25 production guidance at all assets; Copper SA revised 10% copper production growth YoY in HY25; 19% growth across FY22-245 Cost control delivers sector le
Slide 8: Driving improved safety
Driving improved safety Nothing is more important at BHP than improving the safety and wellbeing of our workforce Performance: High-potential injury frequency (HPIF) For personal use only (Frequency rate) • No high-potential injuries in Q2 FY25 0.40 • ~33% reduction in H1 FY25 HPIF YoY 0.35 • ~54% r
Slide 9: Financial performance
For personal use only Financial performance Vandita Pant Chief Financial Officer BMA
Slide 10: A strong set of results
Financial performance A strong set of results Summary financials Income statement (US$ bn, Underlying) For personal use only • Underlying EBITDA of US$12.4 bn 30 ‒ Underlying EBITDA margin of 51.1% 25.2 ‒ 20.4% ROCE 25 Taxes and royalties: US$4.8 bn • Adjusted effective tax rate of 36.4%6 20 ‒ Adjus
Slide 11: Group earnings waterfall
Group earnings waterfall Strong operational performance offset by weaker prices Earnings variance and drivers (US$ bn) For personal use only Year on year comparison Current year reconciliation 20 External US$(1.8) bn Controllable US$0.3 bn HY25 income statement impacts 15 13.9 1.1 0.4 12.4 12.1 (0.6
Slide 12: Segment performance
Segment performance Iron ore Production: 130.9 Mt BHP Operating System (BOS) For personal use only EBITDA margin: 63% and our approach to operational excellence is delivering Copper ✓ On track to hit production guidance at all assets. Production: 987 kt BMA and NSWEC on track to deliver producti
Slide 13: Delivering consistent cash flows
Delivering consistent cash flows Sector leading cash flow generation allows for allocation to both growth and returns Our sector leading margins and consistent cash flow generation… Consistent and strong net operating cash flows16 For personal use only (Net operating cash flow, US$ bn) (Underlying E
Slide 14: Samarco Brazilian settlement agreement
Samarco Brazilian settlement agreement Comprehensive agreement with Public Authorities in Brazil with a total financial value of R$170 bn on a 100% basis17 Includes (on a 100% basis): BHP outflows related to Samarco obligations FY25-27 For personal use only (US$ bn, on a 50% basis)18 R$38 bn 2.0 Spe
Slide 15: A more resilient business with a strong balance sheet
A more resilient business with a strong balance sheet Our leverage and gearing remains low thanks to disciplined application of the Capital Allocation Framework Since FY22 revision of net debt target Net debt and net debt target range BHP has low leverage vs. the sector19 For personal use only range
Slide 16: Higher capital spend to unlock organic growth
Higher capital spend to unlock organic growth Increasing growth spend on future facing commodities with continued flexibility to adjust spend for value Future-facing commodities form majority of growth spend20 For personal use only (US$ bn, nominal) (Capital in future-facing commodities, %) FFC majo
Slide 17: Disciplined capital allocation enables our strategy
Disciplined capital allocation enables our strategy Generates healthy returns for shareholders and enables more investment in attractive projects The Capital Allocation Framework sits at the core of BHP Allocation of capital since its introduction in FY16 For personal use only Balance Portfolio shee
Slide 18: Business update
For personal use only Business update Half year ended 31 December 2024 Mike Henry Chief Executive Officer Copper SA
Slide 19: Commodities positively leveraged to global megatrends
Commodities positively leveraged to global megatrends Population growth, urbanisation, higher living standards and the energy transition create opportunities for commodities long-term Our portfolio has exposure to forecast megatrend growth from today to 2050 (Indexed growth: 100 = 2021 level) Commod
Slide 20: Premium assets in the most attractive commodities
Premium assets in the most attractive commodities A simple portfolio of assets with strong growth potential underpinned by distinctive sources of competitive advantage For personal use only Lowest cost Premium priced product Iron ore Steelmaking coal Lowest cost producer globally21 Leading producer
Slide 21: WAIO: the world's leading iron ore business
WAIO: the world’s leading iron ore business Stronger free cash flow generation than peers, helping to drive shareholder returns and growth Consistent superior free cash flow (FCF) generation For personal use only (Iron ore FCF, US$/dmt)24 (C1 unit cost US$/t) Operational excellence coupled with stru
Slide 22: Copper: a compelling pipeline of organic growth options
Copper: a compelling pipeline of organic growth options Unlocking the world’s largest copper endowment with an aspirational pathway towards over 2 Mtpa of attributable copper production25 Chilean copper projects have potential to grow production26 Copper SA growth pathway capturing US$1.5 bn in pote
Slide 23: Vicuña: emerging copper district with world class potential
Vicuña: emerging copper district with world class potential Transaction close was an important step towards the development of both the Filo del Sol and Josemaria projects Transaction closed on 15 January 2025 For personal use only • A long-term strategic alliance between BHP and Lundin Mining • 50/
Slide 24: Jansen: a top tier asset set for strong cash flow
Jansen: a top tier asset set for strong cash flow Designed to be a first quartile cost potash producer that is expected to be resilient through the cycle For personal use only Potash is an attractive future-facing commodity • Exposure to global megatrends • Leverage to population growth and higher l
Slide 25: Continue to be a leader on project delivery
Continue to be a leader on project delivery We have consistently delivered better outcomes on our projects vs. our competitors For personal use only BHP Industry average29 Disciplined and differentiated approach Global experience Safety (TRIF) 1.4 2.8 Connected global Projects Centre of Excellence (
Slide 26: Attractive internal options to grow in copper for value
Attractive internal options to grow in copper for value Our organic projects benchmark well vs. current market valuations of listed copper producers Capital intensity of Chilean growth vs. listed copper producer valuations (US$k/tpa CuEq production) For personal use only Average ~US$50k/t Project Or
Slide 27: Investment proposition
Investment proposition Attractive returns underpinned by operational excellence, capital allocation discipline and social value commitment For personal use only Operational Disciplined Value and returns excellence capital allocation World class Differentiated Agile decision Strong Capital A framewor
Slide 28: For personal use only
For personal use only
Slide 29: Footnotes
Footnotes 1. Slide 4: BHP Underlying EBITDA margin (excluding third party products). Peer data compiled from publicly available information (e.g. company reports). Peers include: Anglo American, Glencore (exc. Marketing), Rio Tinto, Vale. 2. Slide 4: See slide 11 demonstrating consistent net operati
Slide 30: Appendix
For personal use only Appendix
Slide 31: Capital spend by commodity
Capital spend by commodity Increasing growth spend with continued flexibility to adjust spend for value Future-facing commodities form majority of growth spend For personal use only (US$ bn, nominal) 12.5 10.0 On average medium-term spend is split across: – Maintenance, improvement and decarb capita
Slide 32: Return on Capital Employed
Return on Capital Employed ROCE of 20.4% for HY25 ROCE ROCE by asset (%) (%) For personal use only 55 70 50 60 45 40 50 35 40 30 Antamina1 25 30 Escondida 20 WAIO 20 15 10 Pampa 10 Norte Copper 5 BMA South Australia 0 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 0 10 20 30 40 50 Average capital employed Hal
Slide 33: Samarco delivering on Brazilian Agreement
Samarco delivering on Brazilian Agreement First instalment paid, new compensation systems being initiated Obligation • To be paid by Samarco in 20 instalments, weighted to early years For personal use only to Pay • R$5 bn paid December 2024 • Next instalment (R$6 bn) to be paid June 2025 R$100 bn •
Slide 34: Understanding the Samarco Brazilian agreement
Understanding the Samarco Brazilian agreement The settlement agreement addresses remaining obligations under the Framework Agreement, but residual risks remain Agreement resolves and settles: Disclosed previously as contingent liabilities, settlement does not resolve: For personal use only • TTAC Fr
Slide 35: Social value highlights
Social value highlights Driving shareholder value through access to resource, talent and partners - and shared prosperity for people and planet Our social value framework For personal use only Decarbonisation Healthy Indigenous Safe, inclusive Thriving, Responsible environment partnerships and futur
Slide 36: Safety and social value indicators
Safety and social value indicators We continue to emphasise the safety culture that must be present every day to eliminate fatalities and serious injuries at BHP Key safety indicators1 Target/Goal HY25 FY24 HY24 Fatalities Zero work-related fatalities 0 1 0 High-potential injury (HPI) frequency2 Yea
Slide 37: Balance sheet
Balance sheet Net debt of US$11.8 bn and gearing of 19.2% Movements in net debt Debt maturity profile2 For personal use only (US$ bn) (US$ bn) 16 8 0.3 11.8 6 12 1.1 3.9 9.1 (2.6) 4 8 2 4 0 H2 FY25 FY26 FY27 FY28 FY29 FY30 FY31 - Post FY41 0 FY40 FY24 Free cash Dividends Dividends Other H1 FY25 US$
Slide 38: BHP guidance
BHP guidance Group FY25e Capital and exploration expenditure (US$ bn) ~10 Cash basis. For personal use only Split by category: Maintenance and decarbonisation capital 3.0 Includes non-discretionary spend for deferred development and production stripping; risk reduction, compliance and asset integrit
Slide 39: BHP guidance (continued)
BHP guidance (continued) Copper FY25e Medium-term Copper production (kt) 1,845 – 2,045 Escondida: 1,180 – 1,300 kt; Spence: 240 – 270 kt; Copper South Australia: 300 – 325 kt; Antamina: 115 – 135 kt (zinc 90 – 110 kt). Escondida For personal use only Copper production (kt, 100% basis) 1,180 – 1,300
Slide 40: Key Underlying EBITDA sensitivities
Key Underlying EBITDA sensitivities Approximate impact1 on HY25 Underlying EBITDA of changes of: US$ m For personal use only US$1/t on iron ore price2 116 US$1/t on steelmaking coal price 5 US¢1/lb on copper price2 20 US$1/t on energy coal price2,3 7 AUD (US¢1/A$) operations4 83 CLP (US¢0.10/CLP) op
Slide 41: For personal use only
For personal use only