Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investment Analysts Society of South Africa presentation (September 2004)
19 slides from Bhp's conference presentation, Sep 16, 2004
Slide 1: BHP Billiton – Presentation to Investment Analysts Society of South Africa
BHP Billiton Presentation to Investment Analysts Society of South Africa Chris Lynch – Chief Financial Officer 16 September 2004
Slide 2: Disclaimer
Disclaimer The views expressed here contain information 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 the information. Any forward looking information in this presentation ha
Slide 3: BHP Billiton – Presentation to Investment Analysts Society of South Africa
BHP Billiton Presentation to Investment Analysts Society of South Africa Chris Lynch – Chief Financial Officer 16 September 2004
Slide 4: The largest company in a consolidating sector
The largest company in a consolidating sector BHPB 60 Market value of minerals industry US$427 bn 55 Value of Top Five US$173 bn 50 Value of BHP Billiton US$ 58 bn Market Cap. on 14/09/04 (US$Bn) 45 Anglo American 40 Rio Tinto 35 30 Alcoa Newmont 25 20 Alcan Phelps Dodge Norilsk Anglogold Placer Dom
Slide 5: A global footprint
A global footprint Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials Page 5
Slide 6: EBIT by Customer Sector Group
EBIT by Customer Sector Group Year ended 30 June 2003 - EBIT US$3,481 million 2004 – EBIT US$5,488 million 10% 4% 25% 5% 4% 8% 7% 31% 28% 16% 20% 14% 8% Petroleum 20% Aluminium Base Metals Carbon Steel Materials Diamonds & Spec. Prod. Energy Coal Stainless Steel Materials Page 6
Slide 7: Highlights – year ended June 2004
Highlights – year ended 30 June 2004 • Record EBITDA, up 40% to US$7.5 billion and record EBIT, up 58% to US$5.5 billion. • EBIT up across all CSGs. • Record attributable profit of US$3.5 billion and earnings per share of 56.4 US cents. • Including other efficiency gains, the total merger benefits a
Slide 8: Strategic focus
Strategic focus M&A Bolt-on Acq. Growth Pipeline Savings and Efficiencies Low Cost, High Quality Assets Page 8
Slide 9: Increasing margins and return on capital
Increasing margins and return on capital Return on Capital EBIT margin 35% 29.8% 30% 24.3% 25% 21.4% 20.3% 20% 15% 13.4% 10.9% 10% 5% 0% 2002 2003 2004 EBIT margins exclude exceptional items and third party products Page 9
Slide 10: Growth projects delivered since July 2001
Growth projects delivered since July 2001 Ekati * Zamzama Mt PACE Arthur Ohanet North Typhoon Aluminium San Juan Base Metals Cerrejon * Carbon Steel Mozal II Energy Coal Diamonds Antamina Area C Petroleum Tintaya Oxide Hillside III Escondida IV Bream Gas Accelerated Pipeline expansion 17 projects On
Slide 11: Volume growth
Volume growth Year ended 30 June 2001 to year ended 30 June 2004 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Natural Gas Aluminium Alumina Copper Silver Iron Ore Manganese Nickel Ferrochrome Ore Page 11
Slide 12: Deep inventory of growth projects
Deep inventory of growth projects BROWNFIELD Broadmeadow Yabulu Yabulu Klipspruit GoM Infrastr. Panda UG Escondida Alumar Blackwater CPR Dendrobium CPP WAIO RGP Esc’da Esc’da Sulphide Sulphide WA WA Iron Iron Ore Ore Worsley Long Long Term Term Expansion Expansion NWS NWS Esc’da Esc’da Paranam Norte
Slide 13: BEE Equity ownership and Joint Ventures
BEE Equity ownership and Joint Ventures • The Act covers Ingwe, Smancor Cr and Mn and RBM, but not aluminium smelters at Richards Bay. • 15% in 5 years and 26% in 10 years • The objective is to create Black mining house through skills development, Mentoring and sale/JV of business or assets. • Trans
Slide 14: Major SA Capital Expenditure: 1993-2004
Major SA Capital Expenditure: 1993-2004 Project / Expansion Date US$ Hillside 1 & 2 1993 - February 1996 1.1 billion Richards Bay Minerals - Mining Plant 'E' Up to July 1999 181 million Mozal 1 July 1998 - June 2000 1.2 billion Eyesizwe Coal - Empowerment June 2000 48 million Mozal 2 June 2001 860 m
Slide 15: China's growth is not a short term phenomenon
China’s growth is not a short term phenomenon (but it is cyclical) China GDP growth (%) 15.2 14.2 13.5 13.5 12.6 11.611.3 10.9 10.5 9.2 9.6 9.1 8.8 8.8 9.1 7.8 7.8 8.0 8.0 7.1 7.5 5.2 4.1 3.8 1980 1985 1990 1995 2000 Source: China Statistics Yearbook, Global Insight Page 15
Slide 16: China is a large consumer but is short of resources
China is a large consumer but is short of resources China’s % of world production and consumption in 2003 41 40 Demand Supply Balance 37 37 29 27 23 20 20 10 12 5 6 7 5 -1 -2 -4 -6 -10 -15 -29 Met. Coal Thermal Seab. Iron Crude Copper Alumina Nickel Oil Coal Ore Steel Source: CRU, IEA, BHP Billiton
Slide 17: China – growth translates to opportunity for BHP Billiton
China – growth translates to opportunity for BHP Billiton • Sales into China increasing but diversification remains • Currently 9.8% of total company revenues, up from 6.9% in FY03 • We expect China to continue to be a large and sustainable consumer of imported raw materials BHP Billiton is position
Slide 18: Outlook
Outlook • China – Growth rates expected to ease modestly – Will remain a large and sustainable consumer of raw materials and resources in coming years – But will be subject to ‘ups and downs’ • Asia – Benefiting from China • Japan – Strongest momentum in a decade • USA – Recovery continuing • Europe
Slide 19: Ohpodilliton
6dl Ohpodilliton
BHP Billiton — Investment Analysts Society of South Africa presentation (September 2004) on 6ix