Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — International Copper Symposium – ICDC (March 2004)
14 slides from Bhp's conference presentation, Mar 11, 2004
Slide 1: BHP Billiton Base Metals: India on the global map?
BHP Billiton Base Metals India on the global map? International Copper Symposium – ICDC The Emergence of India on the Global Map 11th March 2004
Slide 2: Mining & metals companies have traditionally destroyed value
Mining & metals companies have traditionally destroyed value EVA (US$ million) and EROC (%) - All Mining and Metals 15000 6 Cumulative EVA (US$56B) Economic Value Added (EVA) - US$M Economic Return on Capital (EROC) - %) 10000 Net Assets (2001) US$223B 4 EV (2001) US$289B 5000 EROC (1991-2001) (2.7)
Slide 3: This presentation addresses two high level aspects of copper demand
This presentation addresses two high level aspects of copper demand… 1. Intensity of use 2. India’s growth path compared to China
Slide 4: Copper intensity of global GDP has increased again since the 1980s
Copper intensity of global GDP has increased again since the 1980s World Copper Consumption and GDP Per Capita Despite unpredictable 1950-2003 major global economic 130 Emerging Market economic growth. China’s shocks, copper 2000 120 industrialisation gathers pace intensity of GDP Post-WWII emergenc
Slide 5: Industrialising countries have followed two distinctive intensity paths
Industrialising countries have followed two distinctive intensity paths…which path are they following today? Copper Demand Intensity of GDP (1950-2002) 30 Refined Cu Consumption per Capita USA 25 Japan 20 (kg/person) 15 10 5 0 0 5000 10000 15000 20000 25000 30000 35000 40000 GDP per Capita (2002 US$
Slide 6: Industrialising countries have followed two distinctive intensity paths
Industrialising countries have followed two distinctive intensity paths…which path are they following today? Copper Demand Intensity of GDP (1950-2002) 30 Refined Cu Consumption per Capita USA 25 South Korea Taiwan Japan 20 (kg/person) 15 10 5 0 0 5000 10000 15000 20000 25000 30000 35000 40000 GDP p
Slide 7: Industrialising countries have followed two distinctive intensity paths
Industrialising countries have followed two distinctive intensity paths…which path are they following today? Copper Demand Intensity of GDP (1950-2002) 30 USA Refined Cu Consumption per Capita 25 South Korea Taiwan Japan 20 (kg/person) 15 10 5 India’s 0 position 0 5000 10000 15000 20000 25000 30000
Slide 8: India's copper consumption has grown strongly but not matched China
Although India’s copper consumption has grown strongly in recent years, it has not matched China Asia, excluding Japan, is responsible for virtually all of the growth in world refined copper consumption (‘first use’ of copper) in the past 20 years, driven by Korea and Taiwan…and more recently China
Slide 9: Is India another China waiting in the wings?
Is India another China waiting in the wings? Similar land area and population…but India’s economy not yet at ‘lift off’ and dominated by Agriculture and Services… India China Population (mill.) 1,031 1,283 GDP (US$B) 515 1,281 GDP Per Capita (US$) 500 1,000 Average % p.a. GDP Growth (10 Years) 6 9 G
Slide 10: How does India compare? Export focus and manufacturing
How does India compare? Export focus and manufacturing India’s manufacturing sector contributing less than 16% of GDP – little change in 20 years… Source: UBS Asian Economic Perspectives …and with a relatively low export orientation compared to China and the Asian Tigers. High levels of protection (
Slide 11: How does India compare? Barriers to manufacturing market development
How does India compare? Barriers to manufacturing market development… Poor Infrastructure… Regional Ranking on Power and Other Infrastructure 10 India lags China in power, transport, and EIU Rating out of 10 other key infrastructure required to 9 support industrial development. Telecom sector has be
Slide 12: How does India compare? Management…pros and cons
How does India compare? Management…pros and cons More prudent capital management? Source: UBS – Asian Economic Perspectives But further reform needed… Cutting of import duties slowly under way…simplifying and cutting indirect taxes…opening up reserved industries to benefit from economies of scale, m
Slide 13: This presentation addresses two high level aspects of copper demand
This presentation addresses two high level aspects of copper demand… 1. Intensity of use • Continued growth depends on China and India • It is still unclear how these markets will develop 2. India’s growth path compared to China X India’s manufacturing is less export orientated than China’s X Infras
Slide 14: This presentation addresses two high level aspects of copper demand
This presentation addresses two high level aspects of copper demand… 1. Intensity of use • Continued growth depends on China and India • It is still unclear how these markets will develop 2. India’s growth path compared to China X India’s manufacturing is less export orientated than China’s X Infras
BHP Billiton — International Copper Symposium – ICDC (March 2004) on 6ix