Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton — Merrill Lynch Global Metals & Mining Conference, May 2009

19 slides from Bhp's conference presentation, May 12, 2009

  1. Slide 1: BHP Billiton: Strength through Diversity

    Copper, Escondida, Chile BHP Billiton: Strength through Diversity Marius Kloppers Chief Executive Officer 12 May 2009

  2. Slide 2: Disclaimer

    Disclaimer The views expressed in this presentation are based on information derived from publicly available sources that has not been independently verified. No representation, warranty or undertaking, express or implied, is made or given as to the fairness, accuracy, completeness or reliability of

  3. Slide 3: Agenda

    Agenda Industry Outlook BHP Billiton is Well Positioned Merrill Lynch Global Metals & Mining Conference, May 2009 Slide 3

  4. Slide 4: A Significant Change in Macroeconomic Conditions

    A Significant Change in Macroeconomic Conditions OECD Unemployment and GDP Growth OECD Retail Trade (%) (YOY % Change, Volumes) 10 OECD Unemployment Rate SADJ 6 GDP YOY Growth 8 4 2 6 0 4 (2) 2 (4) 0 (6) (2) (8) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 199

  5. Slide 5: OECD Economies Remain Weak

    OECD Economies Remain Weak OECD Leading Indicator OECD Industrial Production (CLI) (% Change YOY) 110 10 7 105 4 100 1 95 (2) (5) 90 (8) 85 OECD Leading Indicator (Left Axis) OECD Industrial Production (Right Axis) (11) 80 (14) 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 20

  6. Slide 6: Some Signs of Life in China

    Some Signs of Life in China Construction and Real Estate Sectors Purchasing Managers Indices (% Change YOY) (PMIs) 40 65 30 60 55 20 50 10 45 0 40 (10) EU Floor Space Completed 35 China (20) Floor Space Sold USA 30 Gross Construction Value Japan (30) 25 Jan 2007 Jul 2007 Jan 2008 Jul 2008 Jan 2009 J

  7. Slide 7: China Trade Performance Still Unclear

    China Trade Performance Still Unclear Trade Performance in China (% Change YOY) 60 Exports Imports 40 20 0 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 (20) (40) (60) Source: CEIC. Merrill Lynch Global Metals & Mining Conference, May 2009 Slide 7

  8. Slide 8: When Can We Expect a Recovery?

    When Can We Expect a Recovery? Monthly Crude Steel Production (mt) 120 100 80 60 China 40 20 Ex China 0 Jun 2000 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Jan 2009 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Mar 2009 Feb 2009 Source:

  9. Slide 9: Have Commodity Prices Bottomed?

    Have Commodity Prices Bottomed? Oil Prices Copper Prices ($/bbl, June 1991 to April 2009) ($/t, June 1991 to April 2009) 160 10,000 WTI ($/bbl) 140 9,000 Copper ($/t) 8,000 120 7,000 100 6,000 80 5,000 60 4,000 40 3,000 20 2,000 0 1,000 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Source: Bloom

  10. Slide 10: Relationship Between Prices and Production Costs

    Relationship Between Prices and Production Costs Copper Prices and Average C1 Costs(a) (US¢/lb) 300 Mthly Avg low price April 2009 average to date cash price of $2.00/lb 90th percentile 250 75th percentile Brook Hunt forecast 90th 200 percentile C1 costs to fall to ● around $1.35/lb in 2009 150 100

  11. Slide 11: Agenda

    Agenda Industry Outlook BHP Billiton is Well Positioned Merrill Lynch Global Metals & Mining Conference, May 2009 Slide 11

  12. Slide 12: An Unchanged Strategy

    An Unchanged Strategy ƒ Large, low-cost, long-life assets ƒ Export oriented ƒ Upstream focussed ƒ Diversified by commodity, customer Safety Equipment Demonstration Safety Discussion Samancor, Peak Downs,South Africa Australia and geography ƒ Deep inventory of growth options ƒ Ethics, safety, environ

  13. Slide 13: A Balanced Portfolio

    A Balanced Portfolio Steel Making Non-Ferrous Energy Materials Products Products ƒ Iron Ore ƒ Copper ƒ Petroleum ƒ Metallurgical Coal ƒ Aluminium ƒ LNG ƒ Manganese ƒ Nickel ƒ Energy Coal ƒ Diamonds ƒ Uranium Merrill Lynch Global Metals & Mining Conference, May 2009 Slide 13

  14. Slide 14: Strength through Diversity

    Strength through Diversity EBIT Margin(a) (%) 80 70 Petroleum Aluminium 60 Base Metals 50 D&SP SSM 40 Iron Ore 30 Manganese Met Coal 20 Energy Coal 10 BHP Billiton 0 H1(b) H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1(b) FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 (a) FY2002 to FY200

  15. Slide 15: Low Operational Leverage

    Low Operational Leverage EBIT Margin (%) 50 BHP Billiton 40 Key 30 Peers 20 10 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Source: Company interim and annual reports of BHP Billiton and its key peers. EBIT excludes exceptional items, third party trading

  16. Slide 16: Financially Strong

    Financially Strong ƒ Strong balance sheet • Current gearing ratio of 9.5% • EBITDA/Interest cover of 87 times ƒ Strong credit rating • Committed to a solid “A” credit rating • S&P A+ • Moody’s A1 ƒ Strong cash position • $13.1 billion net cash flows in 1H FY2009 • Significant funding capacity, inclu

  17. Slide 17: Able to Invest for Tomorrow

    Able to Invest for Tomorrow Capital and Exploration Expenditure (US$bn) 12 FY 2010F Exploration 10 Sustaining Capex Growth Expenditure 8 6 4 2 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009F FY 2010F Note: FY2005 to FY2008 have been calculated on the basis of IFRS. Prior periods h

  18. Slide 18: In Order to Consistently Deliver Value to Shareholders…

    In Order to Consistently Deliver Value to Shareholders… Relative Share Price Performance (US$) 1,000 BHP Ltd 900 ASX 200 800 FTSE 100 700 SPGSCI 600 500 400 300 200 100 0 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Source: Bloomberg. Merrill Lynch Global Metals & Mining C

  19. Slide 19: bhpbilliton

    édl bhpbilliton ourcing the future

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