Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (June 2008)
16 slides from Bhp's merger presentation, Jun 3, 2008
Slide 1: Filed by BHP Billiton Pursuant to 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 presentation that was given by Alberto Calderon, Chief Commercial Officer, BHP Billiton on Jun
Slide 2: Lehman Brothers - Alberto Calderon, BHP Billiton
Lehman Brothers Alberto Calderon, Chief Commercial Officer BHP Billiton 3 June 2008
Slide 3: Disclaimer
Disclaimer Thisdocument hasbeenprepared by BHPBillitonLimitedandBHPBillitonPlc(“BHPBilliton") andcomprises thewrittenmaterials/slides fora presentation concerning BHPBilliton's offersfor RioTintoLimitedandRioTintoplc(“RioTinto”).Byreviewing/attending thispresentation youagreetobeboundby thefollowing
Slide 4: Disclaimer (continued)
Disclaimer (continued) Cautionary Note to US Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing
Slide 5: Resourcing the future
Resourcing the future Some implications in a sustained high energy price world BHP Billiton’s future growth outlook Page 4
Slide 6: Socio-economic forces driving China / India growth and the impact of higher energy prices
There are powerful socio-economic forces driving China / India growth, but what will be the impact of higher energy prices? Finished steel consumption (kg/capita) China India 1,200 Japan Korea, Rep. United States Taiwan 1,000 800 600 400 200 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Slide 7: High oil prices forecast to impact world GDP growth, China less than developed countries
High oil prices forecast to impact world GDP growth, but China impacted less than developed countries Revised 2009 GDP growth Factors impacting growth Real GDP Growth % 10.0 • Higher energy prices • Commodities price inflation • US Housing market Initial Revised April 2008 China World Advanced Econo
Slide 8: Sustained higher oil prices will reinforce the value of Tier 1 bulk commodity assets
A period of sustained higher oil prices will reinforceof the value bulk commodity Tier 1 assets Generic delivered bulk commodity cash cost curveImpact of sustained higher oil prices Oil price impacts operations and shift in high oil price environment freight (Cash cost $/t) Combination lifts and ste
Slide 9: High oil prices enhance relative value of Tier 1 bulk assets close to Asian markets
In a world of high oil prices, the relative value of Tier commodity 1 bulk assets that are close to Asian growth markets is enhanced Transparent pricing Iron Ore cost FOBDelivered vs to Asia • In a transparent pricing market the ($/dmt) value to customer of two identical 140 products is fixed, and t
Slide 10: $10 oil price increase could generate net ~$640m EBIT uplift
At FY08 volumes, $10 increase in the price of oil could generate a net ~$640m BHP Billiton EBIT uplift (1) The BHP Billiton energy hedge Net EBIT impact of $10 oil price increase $MM on FY08 Forecast production • Petroleum business creates a ~$770 hedge against petroleum products ~$130 cost increase
Slide 11: BHP Billiton Petroleum: Production growing to 170mmboe/yr, high EBIT margin
BHP Billiton Petroleum: Production growing to 170mmboe/yr, high EBIT margin per barrel and strong resource base EBIT(1) margin per barrel at different price levels ($/boe) Reference Oil Price(2) $90 $100 $110 $120 EBIT $42 $48 $54 $59 Production Growth Attributable Reserves and Resources (3) (3) (mm
Slide 12: Resourcing the future
Resourcing the future Some implications in a sustained high energy price world BHP Billiton’s future growth outlook Page 11
Slide 13: BHP Billiton has an attractive growth profile of significant scale
BHP Billiton has an attractive growth profile of significant scale Production in copper equivalent tonnes Simple Copper Equivalent Copper Equivalent Tonnes '000 • Focused on deliverable Estimated & growth over the next five 14,000 unrisked years BHP Billiton • Commence from CY07, a 12,000 year of kn
Slide 14: Growth capital expenditure is focused on high margin commodities
BHP Billiton’s growth capital expenditure is focused on high margin commodities Carbon Steel MaterialsNon-Ferrous Energy Margins matter • Cu equivalent production is based on implied revenue • $1 million of revenue from energy coal calculates to the same tonnage of copper equivalent as $1 million of
Slide 15: Future options portfolio is deep and diversified
Beyond our 5 year growth plans, the future options portfolio is deep and diversified CMSA Heap Angola CMSA Heap Perseverance NWS Nth WA Iron Ore WA Iron Ore DRC Leach 2 Olympic Dam & DRC Macedon Leach 1 Deeps Rankin B RGP 4 Quantum 2 Smelter Expansion 1 Maruwai NWS KNS Cerrejon Angostura Stage 2 Atl
Slide 16: Page 15
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