Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Corporate Update (October 2013)
15 slides from Bhp's corporate update, Oct 3, 2013
Slide 1: China: Looking forward
China: Looking forward Mike Henry, President HSEC, Marketing and Technology BHP Billiton October 2013 bhpbilliton resourcing the future
Slide 2: Disclaimer
bhp billiton resourcing the future Disclaimer Forward-looking statements This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events, conditions, circumstances and the future financial performance of BH
Slide 3: Content
bhpbilliton resourcing the future Content China economic outlook Implications for Australia BHP Billiton Marketing, ANCRE, October 2013 Slide 3
Slide 4: Relative to previous decades, the pace of growth in China is expected to moderate
bhpbilliton resourcing the future Relative to previous decades, the pace of growth in China is expected to moderate GDP growth (YoY %) 16 14 12 10 8 6 4 2 0 1997 2000 2003 2006 2009 2012 Real GDP growth rates (YoY % - 5 year moving averages) 12 10 8 6 4 2 0 T-15 T-10 T-5 T T+5 T+10 T+15 T+20 China (
Slide 5: Manufacturing will become less significant over time
bhpbilliton resourcing the future Manufacturing will become less significant over time Share of manufacturing (% GDP) 35 30 25 20 15 10 5 0 China US Japan South Korea 1997 2000 2003 2006 2009 2012 Share of industry 2012 (% GDP) 50 40 30 20 10 0 China South Korea Japan US Source: IHS - Global Insight
Slide 6: Investment is trending down however it continues to be a key cyclical support
bhpbilliton resourcing the future Investment is trending down however it continues to be a key cyclical support China investment (% YoY YTD) 40 30 20 10 0 (10) (20) Manufacturing Water & environment Transportation Total FAI Jul 10 Jul 11 Jul 12 Jul 13 Share of investment 2012 (% GDP) 50 40 30 20 10
Slide 7: Increasing urbanisation will change the source of future economic growth
bhpbilliton resourcing the future Increasing urbanisation will change the source of future economic growth Urbanisation rate (%) 80 70 60 50 40 30 20 10 0 2005 2010 2015 2020 2025 2030 Industry, service and agriculture (% GDP) 60 50 40 30 20 10 0 Industry Service Agriculture 1992 1997 2002 2007 2012
Slide 8: Consumption underpins long term potential
bhpbilliton resourcing the future Consumption underpins long term potential GDP per capita (2005 PPP $US) (US=100) 100 90 80 70 60 50 40 30 20 10 0 1952 1962 1972 1982 1992 2002 2012 Japan South Korea Malaysia China India US Private consumption 2012 (US$ thousand 2005 PPP/capita) 35 30 25 20 15 10 5
Slide 9: China will continue to increase its share of global energy and metals demand
bhpbilliton resourcing the future China will continue to increase its share of global energy and metals demand Intensity trends evolve with economic development (US intensity index1) 200 150 100 50 0 10 20 30 40 50 GDP per capita (2005 real US$’000, PPP basis) Emerging economies Developed economies
Slide 10: Content
Content bhpbilliton resourcing the future China economic outlook Implications for Australia BHP Billiton Marketing, ANCRE, October 2013 Slide 10
Slide 11: Endowment and geography have provided relative advantage in some commodities
Endowment and geography have provided relative advantage in some commodities bhpbilliton resourcing the future Iron ore reserves 2012 (Bt contained iron) Australia Brazil Russia China India Venezuela Ukraine Canada Sweden US Iran Kazakhstan Mauritania South Africa Other 0 5 10 15 20 Source: USGS Min
Slide 12: Current operations impacted by structural cost escalation and policy changes
Current operations impacted by structural cost escalation and policy changes bhpbilliton resourcing the future Cash Operating Costs – Australian Mining Operations (% of production by cost curve quartile*, Mt production) Quartile 1 Quartile 2 Quartile 3 Quartile 4 100 75 50 25 0 152 206 89 120 1.76 2
Slide 13: Future mining investment requires improved project costs and productivity
Future mining investment requires improved project costs and productivity bhpbilliton resourcing the future Construction All-in Wage Rate (Mean) (US$) Brazil Middle East US1 Canada Australia 0 50 100 150 1. US refers to US Gulf Coast. Source: Independent Projects Analysis Inc., Engineering Procureme
Slide 14: Summary
Summary bhpbilliton resourcing the future Chinese economic growth is expected to be 7-8% in the short to medium term Urbanisation and consumption will support economic growth as manufacturing declines Commodity consumption patterns will evolve, providing robust energy and metals demand Restoring Aus
Slide 15: 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: October 3, 2013 By: /