Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (October 2014)
52 slides from Bhp's shareholder meeting presentation, Oct 24, 2014
Slide 1: Annual General Meeting 2014
For personal use only Newman Australia Newman Australia Annual General Meeting 2014 BHP Billiton Plc 23 October 2014
Slide 2: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divest
Slide 3: Disclaimer (continued)
Disclaimer (continued) For personal use only Non-IFRS financial information BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This presentation may also include cer
Slide 4: Jac Nasser, Chairman – Annual General Meeting
For personal use only Escondida Chile Jac Nasser Chairman Annual General Meeting 23 October 2014
Slide 5: Directors
Directors For personal use only Jac Nasser Andrew Mackenzie Malcolm Brinded Malcolm Broomhead Sir John Buchanan Carlos Cordeiro David Crawford Pat Davies Carolyn Hewson Lindsay Maxsted Wayne Murdy Keith Rumble John Schubert Baroness Shriti Vadera BHP Billiton Plc Annual General Meeting, 23 October 2
Slide 6: Malcolm Brinded
Malcolm Brinded For personal use only • Director of BHP Billiton • Member of the Sustainability Committee • Director Royal Dutch Shell plc from 2002 to 2012 • Director of CH2M Hill Companies Limited since July 2012 • Director of Network Rail Infrastructure Limited since October 2010 • Vice President
Slide 7: David Crawford
David Crawford For personal use only • Director of BHP Billiton • Chairman of the Finance Committee • Chairman of Australia Pacific Airports Corporation Limited since May 2012 • Chairman of Lend Lease Corporation Limited since May 2003 • Former Chairman and former Director of Foster’s Group Limited
Slide 8: Keith Rumble
Keith Rumble For personal use only • Director of BHP Billiton • Member of the Sustainability Committee • Previously Chief Executive Officer of SUN Mining • Former Chief Executive Officer of Impala Platinum (Pty) Limited • Former Chief Executive Officer of Rio Tinto Iron and Titanium Inc in Canada •
Slide 9: Directors
Directors For personal use only Jac Nasser Andrew Mackenzie Malcolm Brinded Malcolm Broomhead Sir John Buchanan Carlos Cordeiro David Crawford Pat Davies Carolyn Hewson Lindsay Maxsted Wayne Murdy Keith Rumble John Schubert Baroness Shriti Vadera BHP Billiton Plc Annual General Meeting, 23 October 2
Slide 10: Group Management Committee
Group Management Committee For personal use only Andrew Mackenzie Peter Beaven Tim Cutt Tony Cudmore Dean Dalla Valle Mike Fraser Geoff Healy Mike Henry Jane McAloon Daniel Malchuk Jimmy Wilson BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 10
Slide 11: Graham Kerr
Graham Kerr For personal use only • Chief Executive Officer designate of the new company • Former Chief Financial Officer of BHP Billiton from November 2011 to October 2014 • Former President of Diamonds and Specialty Products, BHP Billiton • Former Chief Financial Officer of Stainless Steel Materia
Slide 12: Forum on Corporate Responsibility
Forum on Corporate Responsibility For personal use only Greg Bourne Mick Dodson Cristina Echavarria Tommy Garnett Simon Longstaff Australia Australia Colombia Sierra Leone Australia Yaa Ntiamoa-Baidu Ray Offenheiser Phil Vernon Changhua Wu Ghana United States United Kingdom China BHP Billiton Plc An
Slide 13: Our Charter
Our Charter For personal use only • Sustainability • Integrity • Respect • Performance • Simplicity • Accountability BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 13
Slide 14: Safety
Safety For personal use only 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 BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 14
Slide 15: Our results at a glance
Our results at a glance For personal use only Attributable profit – excluding exceptional items Taxes and royalties paid1 (US$ billion) (US$ billion)2 US$9.9 billion 25 14 US$13.4 billion 12 20 10 15 8 6 10 4 5 2 0 0 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Note: Calculated on the basis of
Slide 16: Full year dividends
Full year dividends For personal use only Dividends1 FY04 – FY14 (US cents per share (cps)) CAGR USD: 17% USD: 121 cps CAGR GBP: 18% GBP: 73 pps 125 USD: 4% GBP: (3%) 100 75 50 USD: 26 cps GBP: 15 pps 25 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1. Dividends declared in respect of the
Slide 17: Existing BHP Billiton portfolio
Existing BHP Billiton portfolio For personal use only Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Nickel West Worsley Alumar Aluminium Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US New Mexico Coal Mozal GEMCO Hotazel Shenzi Angostura Pyrenees Mace
Slide 18: Total shareholder return
Total shareholder return For personal use only Total Shareholder Return (TSR)1 (%) BHP Billiton TSR 424% 450 BHP Billiton Plc dividends BHP Billiton Plc price FTSE100 dividends FTSE100 price 300 FTSE100 TSR 117% 150 0 FY05 - FY14 FY05 – FY14 Source: Datastream. 1. TSR calculated in pence from 30 Jun
Slide 19: Evolution of our portfolio
Evolution of our portfolio For personal use only BHP Billiton core portfolio Proposed new company Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Worsley Alumar Aluminium Mozal Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US GEMCO Hotazel TEMCO Metalloy
Slide 20: Proposed new company
Proposed new company For personal use only • Keep your BHP Billiton shares • Continue to receive dividends in line with our policy without any reset • Entitlement to shares in the new company in equal proportion to your BHP Billiton shareholding • Primary listing on the Australian Securities Exchang
Slide 21: Our strategy
Our strategy For personal use only Newman BMA Escondida Shenzi Jansen Australia Australia Chile United States Canada BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 21
Slide 22: Role of our commodities
Role of our commodities For personal use only BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 22
Slide 23: Our diversity is our strength
Our diversity is our strength For personal use only Newman BMA Escondida Shenzi Jansen Australia Australia Chile United States Canada BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 23
Slide 24: Our action on climate change
Our action on climate change For personal use only Produced public Introduced independent Established Implemented Committed US$300 million to Set target to environment assessment of Carbon energy GHG reduction and energy maintain total GHG report detailing environmental data in Pricing conservation
Slide 25: Global growth by region
Global growth by region For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Plc Annual General Meeting, 23
Slide 26: Global growth by region – United States
Global growth by region – United States For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Plc Annual Gen
Slide 27: Global growth by region – European Union
Global growth by region – European Union For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Plc Annual Ge
Slide 28: Global growth by region – Japan
Global growth by region – Japan For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Plc Annual General Mee
Slide 29: Global growth by region – China
Global growth by region – China For personal use only GDP growth rate (% per annum) 10.0 Forecast 8.0 6.0 4.0 2.0 0.0 (2.0) CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 United States European Union Japan China Source: IMF World Economic Outlook Database (October 2014). BHP Billiton Plc Annual General Mee
Slide 30: Supporting economic growth
Supporting economic growth For personal use only Shanghai China BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 30
Slide 31: Delivering long-term sustainable value
Delivering long-term sustainable value For personal use only Sustainability Integrity Respect Performance Simplicity Accountability BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 31
Slide 32: Andrew Mackenzie, Chief Executive Officer – Annual General Meeting
For personal use only Newman Australia Andrew Mackenzie Chief Executive Officer Annual General Meeting 23 October 2014
Slide 33: Our commitment to sustainability
Our commitment to sustainability For personal use only BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 33
Slide 34: Sustainability
Sustainability For personal use only BMA Bullsbrook Volunteer Fire Service Five Rivers Conservation Project PATH Project Australia Australia Australia Mozambique BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 34
Slide 35: Delivering strong financial results
Delivering strong financial results For personal use only Attributable profit – excluding exceptional • Increased Group production1by by9% 9% items • Productivity gains of US$2.9 billion (US$ billion) 25 • US$6.6 billion of sustainable productivity gains over the past two years • Capital and explora
Slide 36: Record production
Record production For personal use only Newman BMA Escondida Eagle Ford Record production Australia Australia Chile United States BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 36
Slide 37: A disciplined systematic approach
A disciplined systematic approach For personal use only Spence Chile BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 37
Slide 38: Sustainable productivity
Sustainable productivity For personal use only Eagle Ford United States BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 38
Slide 39: Driving productivity in our shale assets
Driving productivity in our shale assets For personal use only Drilling costs Drilling time Moving time Productivity Well cost 16% 18% 11% 28% 8% BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 39
Slide 40: Continuous improvement
Continuous improvement For personal use only Eagle Ford United States BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 40
Slide 41: Building a step-up culture
Building a step-up culture For personal use only BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 41
Slide 42: Our strategy
Our strategy For personal use only Newman BMA Escondida Shenzi Jansen Australia Australia Australia United States Canada BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 42
Slide 43: Portfolio simplification
Portfolio simplification For personal use only Petroleum and Potash Copper Iron Ore Coal Aluminium, Manganese and Nickel Note: Several assets can be represented by one marker. BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 43
Slide 44: A simplified portfolio
A simplified portfolio For personal use only BHP Billiton core portfolio Proposed new company Western Australia Samarco Queensland Coal NSW Energy Coal Cerrejón Worsley Alumar Aluminium Mozal Iron Ore South Africa Olympic Dam Escondida Pampa Norte Antamina Onshore US GEMCO Hotazel TEMCO Metalloys Sh
Slide 45: Delivering sustainable value
Delivering sustainable value For personal use only Five Rivers Conservation Project Australia BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 45
Slide 46: Supporting conservation
Supporting conservation For personal use only Valdivian Coast Five Rivers Conservation Project Chile Australia BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 46
Slide 47: Broader economic contribution
Broader economic contribution For personal use only 55% of spend with local businesses US$9.9 billion1 paid in royalties and taxes 1% pre-tax profit committed to community – US$242 million in FY14 1. Taxes borne primarily comprises income tax and royalty-related taxes paid, production-based royaltie
Slide 48: Supporting our communities
Supporting our communities For personal use only BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 48
Slide 49: Driving performance
Driving performance For personal use only Jimblebar Australia BHP Billiton Plc Annual General Meeting, 23 October 2014 Slide 49
Slide 50: Our productivity journey
Our productivity journey For personal use only • Delivering a 16% increase in production over two years to the end of FY15 • Targeting another $3.5 billion in annualised productivity gains by the end of FY17 • Reducing our capital expenditure by a third to $15.2 billion in FY14 • Over the past decad
Slide 51: Our commitment
Our commitment For personal use only • To maintain a strong balance sheet and solid A credit rating • To continue to selectively invest in high return diversified investment opportunities through the cycle • To extend our progressive base dividend policy • To return excess capital to shareholders co
Slide 52: BHP Billiton – resourcing the future
cde bhpobilliton resourcing the future