Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — FY2004 Earnings Presentation
56 slides from Bhp's earnings presentation, Aug 18, 2004
Slide 1: Preliminary Results 30 June 2004
30 June 2004 2) = = ® aa Im / Prel — — $8237 = =) SS SOC eo 6S a= 2. SS = oOo = == &£ _ i #=| (ce
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Slide 3: Preliminary Results
—— eee errr ee - 4 PE a 30 June 2004 Results iminary / Prel _ i #=| (ce
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Slide 5: Preliminary Results June 2004
|. F—S—ia==s c— rr—“—“_OCS—S—SS = (ee pag 30 June 2004 ” = = @ O inary Im / . Preli
Slide 6: Turnover, EBITDA, EBIT and attributable profit
Turnover! 1 24,943 EBITDAM(2) 7,506 EBITO) 5,488 Attrib profit(1@) 3,510 Exceptional items et (131) Attrib, prof it (incl exce tionals 3,379 5,235 4,769 56.4 21.1 26.0
Slide 7: EBIT by business, year ended June
ended 30 J LE GNaE: ANSE ae iy Lei Hii) 206 ‘i Ni ee Do wd MIVA La i | TT. iii GIN TOM Te Nt Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Products i = ae — ay if +18, | xploratior ‘ae ovate 2 in _ en ——eee—————eee . is sii i / Le | a ; . | (oo ié@= _ oo . i 7 a / ==. . L po
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Slide 10: Total price variance
T_T _ Total price variance + US$3,145 million
Slide 11: Total volume variance
Total volume variance + US$180 million _ ile:
Slide 12: Profit before tax to net profit, tax expense
- | , taxa . Cont lal Ue! ON Sah Sa Noa’ ax expense _ a : ' _ . —— [ i | “Discounting of provisions/Capitalised interest Profit before tax - _ a Miiiiiiiin ee lona 5,488 (355) (133) (14) 4,986 (1,317) _ oe 7 ic / . 7 a Co 7 Ny) 3,481 (403) (140) 74) a ce a
Slide 13: SIMI
SIMI
Slide 14: Exceptional items
is an hh a : Fe ee Tn i ine ml iil : WW fi HN | nN a = ) ON 1) )) y oo !) 1) i mooi ”) 1) NN) wih Lee aa Le i) SSM — ao a — : 2 | “ yu lan 0 DVI ; gon _ Le — , i sas ies Ly Le, a? dl leet, Dedcl ‘iat EE eM Een IE NEALE I I) “Closure mans Petroleum litigation settlement Australian tax consolidation r
Slide 15: Closure and remediation costs
Pe ’ jl il i! wi Mn nna AIM ))) )) )) I )) )) i; i Ti il AA !) i Mi aan a An Le yy, ae ye y ; | y ‘isin ini a “i ay Pee i Capital works (eg. earthworks & demolition) Other adjustments Ongoing costs (eg. water management & site maintenance) -Risked costs ee 1 otal: Southwest Goppeh cman LL i L220 LE
Slide 16: Operating cash flow and JV dividends
Operating cash flow and JV dividends Net interest paid Tax paid Available cash flow Capital expenditure
Slide 17: Merger benefits and cost savings
Cost related merger benefits Non cost related merger benefits Total merger benefits Cost savings and efficiency gains Operating Excellence ; ~ Strategic sourcing Portfolio mix -
Slide 18: Preliminary Results June 2004
pF a 30 June 2004 = SS SS —”—~—r———C i) = = ® oc iminary / ve _ .=—_—_OOL_OCrmmYi (ce
Slide 19: Growth from deep inventory of projects
rowth From Deep In Pad as dui sienenmn ns siti Up REARS MUU 1110 (Itt irs iii nse I) Ee MTT} KN ‘if : GEO Lid Lj WG, YU), _ a —Too Si NOD tory of Pr cts AEE
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Slide 23: Projects delivered since July 2001
ae ee ojects d live ince July 200° LUMI Es ee Ontime delivery. 7 | uss300mition savings |
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Slide 26: Inventory of growth projects
He ee ee eee ee aoa i aa Hi ee HU | inventory of arowth ae i) MA MANNII. NII NINN, A G0 NI Ne i ee ill OO Ti MN
Slide 27: al | oo Anni ina ini
al | oo Anni ina ini ae - Co. CO eo ea a | | — - _- _. oF - a E Hee z ee: ee ee _—
Slide 28: iit
iit
Slide 29: Growth from deep inventory of projects
By i, Growth From Deap inventory of Projects Midi i E LLL
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Slide 31: Asia
Oth Asia
Slide 32: an Hi
an Hi
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Slide 35: Mt tii iii nnn n nen
Mt tii iii nnn n nen
Slide 36: Outstanding assets, operating excellence, growth
. Outs tanding assets Operating excellence Improve HSEC statis tics Community - 1% of pre- tax profits Cut operating costs by 2%pa Return on capital >15% by 2006 sified jury Frequen y Rate improved by 8% Work related illness down by 13% Generation of hazardous waste down by 12% 1.3% US$175 million 2
Slide 37: Petroleum, innovation and organisation effectiveness
V. The Petroleum CSG Value adding growth Low discovery costs Growing reserves and production Puma discovery and appraisal of Shenzi and Neptune in the Gulf of Mexico Stybarrow and Pyrenees exploration success in Western Australia Total production increase of 1% Further production growth in FY05 with
Slide 38: Major projects under development
Paranam refinery expansion ) ~ 45% Alumina Q3 CY05 ‘Increase capacity 2.2 million tpa (100%) Ahead of schedule | Worsley Development Capital (Aus tralia) — 86% Alumina Q1 CY06 250,000 tpa (100%) On fme | WA Iron Ore Rapid Growth Project (Aus tralia) - 85% Iron ore Q4 CcY04 Increase system capaci 110
Slide 39: Petroleum projects schedule and capacity
eTe_oEe EE ee Behind original ROD (Algeria) - 36% Q4 CY04 28,800 boe/day schedule of Q1 CcY04 Mad Dog (US) — 23.9% End CY04 20,700 boe/day On time Atlantis (US) — 44% Q3 CY06 79,200 boe/day On time Capacities of Oil — 450,000 bbliday GoM Pipelines Infrastructure (US) - 22/25% Q4 CY04 (100%) Gas - 50
Slide 40: Projects in pipeline for future delivery
Spence (Chile) — 100% iio) Project dese 200,000 tonnes per annum Escondida Course Particle Recovery (Chile) — 57.5% 54,000 tpa (100%) Western Aus tralia iron ore loni term expansion (Australia) — 85% Late 2007 35 million tonnes per annum (100%) Klipspruit (South Africa) - 100% Energy Coal Mid 2006 6
Slide 41: Completed projects 2001-2003
Mozal 2 (Mozambique) - 47.1% Q4 2003 Q2 2003 Zamzama (Pakistan) - 38.5% Q3 2003 Q2 2003 Bream Gas Pipeline (Australia) - 50% Q2 2003 Q4 2002 Escondida Phase IV (Chile) - 57.5% Q3 2002 Q3 2002 San Juan underground (USA) — 100% Q3 2002 Q3 2002 Tintaya Oxide (Peru) - 99.9% Q2 2002 Q2 2002 Typhoon (USA)
Slide 42: Completed projects and capacity expansion
Products & Capacity Expansion (Australia) - 4 85% Q2 2004 Area C (Australia) ~ 85% Q4 2003 MtArthur North (Aus tralia) — 100% Q4 2003 Q4 2003 Hillside 3 (South Africa) - 100% Q2 2004 Q4 2003 Ohanet (Algeria) - 45% Q4 2003 Q4 2003 WA Iron Ore accelerated expansion (Australia) - 85% Q2 2004 Q2 2004 Ce
Slide 43: Currency exposures
_. September 11. | SA Rand A$ slond ie : entre Atta
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Slide 45: Sustaining capital
es AE a i )) ae MW 2 a 3. iis (OF. ii Oe 2 7 oo a I J ae) ) . Ty Oy, i ye ey ae = Hae eee Hae Ge Me Ai. Lo LE Lo Ae Me ee _ 2 yo 2 iti a PoP ie — wy iil il Vy o AC all He Owe ca EE sane: Sustaining capital i L DLL LL a _ y y oe sat n sls aS pes 450 = oo ae Lo ae : oe i: _ _ : Loo soe
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Slide 47: Gulf of Mexico petroleum assets
oft m= Producing | A. Discovery © Development West Cameron Green Canyon 1860 Genesis Atlantis
Slide 48: Exploration permits and retention leases
iii itt iinet. A |ESKDALE-2 cs STICKLE-1 0 oi : / | Retention Lease O Exploration Permit
Slide 49: ie in | i La Ce _ —. . a . : . .
ie in | i La 7 Ce _ —. . a . : . . . ee ee ——r—C—C—C—C—C i
Slide 50: Net debt movement and interest
ain MV ft a ‘i i i CG Net payables, receivables & _ employee provisions _ To opi Pane as F expos i )) si) il I i) INN ii !) ) i mn mo ii a os Bepeyn if Le ss i Cli seis a a 500) ( 50) EB IT / dita LEE age, va UE Gea Interest r . 2g 950) > : o P8 . 7 i oe ft ie 2 ie _ 1. cc oo i _. 0 / i i So see ge
Slide 51: Commodity price sensitivities
ite nimi TOM WAT ea PPI AAG Hi Cc ah im ee A _ oo D i. eee 27 . UO I7 yy DO LY Bg ____US$4/ on iron ore price ~ US$4/bbl on oil price _-US$tit on metallurgical coal price oe on aluminium price Pe - TE SL Ge ae coo i us so er a 5 Lo 19) coal al jielivbeli piety pines i . | - _ 7 i a oe _. | i L it _
Slide 52: Currency sensitivities
ema a ic a i a , 7 7: - / / / 4 / _ / - / _ - / / _ C _ - i - . / . - ) / / / ‘ui aii | soils it se ccc nar nian Z : . fe : 7 Clee HOGS OF, i Le ee ae oe LB gy ne eee. Tee aes Ne eee ee NNN NNN ANIKI HNN MTOM NMA UNNMNONIUNN Australian dollar (USc1/A$) - Operations") 35 Net monetary liabilities 15 ~
Slide 53: Australian GAAP year-end results
LL NANI vn i oll “ane re yearend Sune Australian GAAP i in Uae Gq ihe 200 04: hit a ding i) iil I. yy), TM cae yD i i ii i ii i. ii ii i i i 15,608 Profit before tax 2,783 ae ‘| ee HL apunecaney Profit after tax attributable to members 1,860 2S ie) LL Se i) iE iD | [EPS | (US nts) ee ( oo 30. i ae ;
Slide 54: EBIT and third party product activities
iil on i FY2002 FY2001 H1 FY 1,596 3,605 4, Depreciation & Amortisation 872 1,804 EBITDA 2468 FY2004 FY2003 Net Profit afer Tax 3,510 1,920 Restatement of debt and net monetary liablities (278) (380) Net Profit after Tax excluding restaements US$ milion 3,788 FY2004 FY2003 FY2002 | Turnover 24,943 1
Slide 55: Turnover and EBIT by business segment
anni | US$ million — FY2004 Petroleum Carbo) wglerials less el Materials Turnover 5,558 4,857 1,749 EBIT 1,391 1137 571 EBIT margin (%)} 25.0 23.4 327 Turnover from third party product activities 2331 102 EBIT fromthird party product activities (22) (9) 3,227 4,755 | Turnover excluding third party p
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