Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Bank of America Merrill Lynch Metals, Mining & Steel Conference 2014
24 slides from Bhp's conference presentation, May 14, 2014
Slide 1: News Release: Andrew Mackenzie presents at BofA Merrill Lynch conference
NEWS RELEASE For personal use only Release Time IMMEDIATE 1 Date 13 May 2014 Number 09/14 ANDREW MACKENZIE PRESENTS AT THE BANK OF AMERICA MERRILL LYNCH METALS, MINING & STEEL CONFERENCE BHP Billiton’s CEO, Andrew Mackenzie, today reaffirmed the Company’s commitment to creating a simpler, more produ
Slide 2: Further information and contacts
“Over the past 10 years, we have built a strong track record of capital management. Today, our balance sheet is strong, and getting stronger. We have a solid A credit rating and our progressive base dividend is comfortably covered by free cash flow.” For personal use only Further information on BHP
Slide 3: Growing shareholder value and returns
Newman For personal use only Growing shareholder value and returns Andrew Mackenzie Chief Executive Officer 13 May 2014
Slide 4: Disclaimer
Disclaimer For personal use only Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certa
Slide 5: We are delivering on our commitments
We are delivering on our commitments For personal use only Sustainable productivity gains: • Productivity gains to increase to US$4.9 billion now embedded US$5.5 billion by the end of FY14 Capital and exploration expenditure: • Capital and exploration expenditure to To decline by 25% in FY14 Selec
Slide 6: Maintaining strong momentum within our pillars: iron ore
Maintaining strong momentum within our pillars For personal use only • Strong operating performance underpinned by Accelerated delivery of high-margin tonnes continued productivity gains (WAIO production1, Mt) 225 • Full-year guidance upgraded for a number of our highest margin products – WAIO produ
Slide 7: Maintaining strong momentum within our pillars: metallurgical coal
Maintaining strong momentum within our pillars For personal use only • Strong operating performance underpinned by Accelerated delivery of low-cost tonnes continued productivity gains (metallurgical coal production, Mt) 45 • Full-year guidance upgraded for a number of our highest margin products – W
Slide 8: Maintaining strong momentum within our pillars: copper
Maintaining strong momentum within our pillars For personal use only • Strong operating performance underpinned by A strong fourth quarter anticipated continued productivity gains (copper production, Mt) 2.0 • Full-year guidance upgraded for a number of our highest margin products – WAIO production
Slide 9: Maintaining strong momentum within our pillars: petroleum
Maintaining strong momentum within our pillars For personal use only • Strong operating performance underpinned by Strong outlook for liquids production continued productivity gains (FY14 petroleum production, MMboe) 260 • Full-year guidance upgraded for a number of our highest margin products – WAI
Slide 10: Sustainable productivity-led gains: truck fleet utilisation
Sustainable productivity-led gains are now embedded and there is more to come For personal use only • We are changing the way we work and Truck fleet utilisation1 raising our level of performance in a (overall equipment utilisation2, %) 8% sustainable manner – our unique structure, systems and cultu
Slide 11: Sustainable productivity-led gains: digging fleet utilisation
Sustainable productivity-led gains are now embedded and there is more to come For personal use only • We are changing the way we work and Digging fleet utilisation1 raising our level of performance in a (overall equipment utilisation2, %) 10% sustainable manner – our unique structure, systems and cu
Slide 12: Sustainable productivity-led gains: drilling time per well
Sustainable productivity-led gains are now embedded and there is more to come For personal use only • We are changing the way we work and Drilling time per well1 raising our level of performance in a (Eagle Ford, days) 17% reduction in days sustainable manner – our unique structure, systems and cult
Slide 13: Productivity-led cost and volume efficiencies
Sustainable productivity-led gains are now embedded and there is more to come For personal use only • We are changing the way we work and Productivity-led cost and volume efficiencies1 raising our level of performance in a (US$ billion) sustainable manner 6.0 0.6 5.5 – our unique structure, systems
Slide 14: Selective investment will maximise shareholder returns
Selective investment will maximise shareholder value and returns For personal use only • Our rigorous process considers all alternatives for capital – continued investment in our business – portfolio simplification – the growth rate of our dividend – investment in our own shares • Our high-quality,
Slide 15: Capital expenditure to decline by 25% in FY14
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Eagle Ford FY14 before declining again next year • By maintaining strict financial discipline we have created intense competition for capital and a cultural shift in beha
Slide 16: Capital and exploration expenditure: maintenance
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Capital and exploration expenditure1 FY14 before declining again next year (US$ billion) 25 • By maintaining strict financial discipline we have created intense competiti
Slide 17: Capital and exploration expenditure: exploration
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Capital and exploration expenditure1 FY14 before declining again next year (US$ billion) 25 • By maintaining strict financial discipline we have created intense competiti
Slide 18: Capital and exploration expenditure: petroleum
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Capital and exploration expenditure1 FY14 before declining again next year (US$ billion) 25 • By maintaining strict financial discipline we have created intense competiti
Slide 19: Capital and exploration expenditure: major approved projects
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Capital and exploration expenditure1 FY14 before declining again next year (US$ billion) 25 • By maintaining strict financial discipline we have created intense competiti
Slide 20: Capital and exploration expenditure: competition for capital
Selective investment will maximise shareholder value and returns For personal use only • Capital expenditure to decline by 25% in Capital and exploration expenditure1 FY14 before declining again next year (US$ billion) 25 • By maintaining strict financial discipline we have created intense competiti
Slide 21: We will continue to simplify our portfolio
We will continue to simplify our portfolio For personal use only • We have been progressively simplifying our Focus on our major basins portfolio for more than a decade (%) 50 • Our major iron ore, copper, coal, and petroleum assets demand our focus 40 – generate the highest margins and deliver a su
Slide 22: A strong track record of capital management
A strong track record of capital management For personal use only • US$62 billion returned through dividends and buy-backs over the last decade – underlying payout ratio of Return excess Strong balance capital to sheet and solid approximately 50% shareholders A credit rating • Our solid A balance sh
Slide 23: Growing shareholder value and returns: summary
Growing shareholder value and returns For personal use only • Productivity gains will increase to US$5.5 billion by the end of FY14 • Capital and exploration expenditure expected to decline again in FY15 • Competition for capital has increased the average rate of return for our low-risk, largely bro
Slide 24: BHP Billiton: resourcing the future
édl bhpbilliton resourcing the future
BHP Billiton — Bank of America Merrill Lynch Metals, Mining & Steel Conference 2014 on 6ix