Slide 1: Record first half earnings
BHP Record first half earnings Half year ended 31 December 2021 Mike Henry Chief Executive Officer Escondida
Slide 2: Disclaimer
Disclaimer The information in this presentation is current as at 15 February 2022. It is in summary form and is not necessarily complete. It should be read together with the BHP Results for the half year ended 31 December 2021. Forward-looking statements This presentation contains forward-looking st
Slide 3: Financial results: Half year ended 31 December 2021
BHP Financial results Half year ended 31 December 2021 Mike Henry Chief Executive Officer Olympic Dam
Slide 4: Continued strong performance
Continued strong performance Record results despite a challenging backdrop Fatality free for the third consecutive year Strong performance at WAIO and Petroleum Record first half earnings and strong shareholder returns Cost control and capital discipline maintained, new net debt range Portfolio chan
Slide 5: H1 FY22 operational highlights
H1 FY22 operational highlights We were safe, more reliable and delivered solid production despite a challenging operating environment Safety Zero fatalities HPI 10% compared to FY211 Production A strong half guidance unchanged for iron ore, copper, energy coal and nickel; met coal lowered on weather
Slide 6: H1 FY22 financial highlights
H1 FY22 financial highlights Higher shareholder returns enabled by a strong set of results Earnings per share 211 US cps 77%, on a total operations basis EBITDA margin 64% 4% points Free cash flow US$8.5 bn 43% Net debt US$6.1 bn 49% Shareholder returns 150 US cps interim dividend determined, payout
Slide 7: H1 FY22 social value and sustainability highlights
H1 FY22 social value and sustainability highlights We have made significant progress across our goals and targets Operational GHG emissions 16% since H1 FY21, on track to reduce by at least 30% by FY302 Climate Transition Action Plan >85% support for our Say on Climate vote, includes our net zero by
Slide 8: Financial results: Half year ended 31 December 2021
BHP Financial results Half year ended 31 December 2021 David Lamont Chief Financial Officer Western Australia Iron Ore
Slide 9: Financial performance
Financial performance Operational excellence supported EBITDA margin of 64%(i), ROCE of 43%(i), strong earnings per share and record interim dividend Summary income statement H1 FY22 % change (US$ billion) Continuing Operations Underlying EBITDA 18.5 † 33% Underlying EBITDA margin 64% Underlying EBI
Slide 10: Group EBITDA waterfall
Group EBITDA waterfall Solid underlying performance and strong cost control but inflation an increasing headwind Underlying EBITDA variance (US$ billion) External US$5.7 billion H1 FY21 Price 6 Foreign exchange Inflation 7 Sub-total Volumes Other 8 H1 FY22 Financial results 15 February 2022 Controll
Slide 11: Segment performance
Segment performance Strong cost control delivered despite impacts of inflation, weather and COVID-19 Iron ore EBITDA: EBITDA margin: WAIO unit cost10: WAIO C1 unit cost11: US$11.2 bn 71% US$16.15/t US$14.74/t Copper EBITDA: EBITDA margin: Escondida unit cost10: US$4.3 bn 62% US$1.29/lb Metallurgical
Slide 12: Continued capital allocation discipline
Continued capital allocation discipline Maintaining our commitment to the Capital Allocation Framework and a strong balance sheet with revised net debt target range H1 FY22 Operating Capital productivity productivity Net operating cash flow Maintenance capital Strong balance sheet Minimum 50% payout
Slide 13: Framework promotes discipline in all capital decisions
Framework promotes discipline in all capital decisions Embedded approach towards evaluation of both internal projects and potential external growth options H1 FY22 Operating Capital productivity productivity Net operating cash flow Maintenance capital(i) Strong balance sheet Minimum 50% payout ratio
Slide 14: Business update
BHP Business update Half year ended 31 December 2021 Mike Henry Chief Executive Officer Olympic Dam
Slide 15: Opportunity amid complex environment
Opportunity amid complex environment BHP is ready to navigate the opportunities and challenges confronting us in the near term Two years into the pandemic, the general macro climate is complex as are the conditions specific to the resources sector Financial results 15 February 2022 Viral uncertainty
Slide 16: Longer term: power of scale and compound growth
Longer term: power of scale and compound growth Population growth, decarbonisation and rising living standards will drive demand for energy, metals and fertilisers for decades Population growth 7.7 billion 2030 8.5 billion 2050 ~ 10 billion of which urban 4.3 billion 2030 5.2 billion 2050 ~ 7 billio
Slide 17: Delivering on our objectives
Delivering on our objectives We continue with the implementation of strategic priorities A clear vision for our portfolio Assets that are large, long-life, with steep cost curves, have optionality and are in large markets. Focus on increasing exposure to future facing commodities leveraged to global
Slide 18: Social value embedded in our approach
Social value embedded in our approach Delivering on our commitment to ESG Environmental Committed to material positive impact on the environment in our sector • Climate Change • Water stewardship • Biodiversity • Tailings management • Closure Social Supporting community development, engagement and g
Slide 19: Sector leading assets across our commodities
Sector leading assets across our commodities We are actively managing our portfolio for long-term value creation through the cycle Maximising value Iron ore Lowest cost major globally12, no new hubs needed for at least a decade Metallurgical coal Petroleum World class resource with high-quality coal
Slide 20: Woodside and Petroleum merger on track
Woodside and Petroleum merger on track High-quality, complementary portfolios combining high-margin oil and long-life LNG Global top 10 independent energy producer14 Merger milestones and timeline (FY21 production, MMboe) Merger milestones and timeline November 2021 Q2 CY22 Signed a binding share Wo
Slide 21: Levers to deliver value growth
Levers to deliver value growth Increasing options through productivity, internal resources and external opportunities across varying time horizons Organic opportunities Escondida Brownfield Options(Copper) Spence Brownfield Options (Copper) Olympic Dam Growth (Copper) Oak Dam (Copper) Antamina Life
Slide 22: Investment proposition
Investment proposition We grow shareholder value through operational excellence, optimal allocation of capital and sustainably creating high returns Operational excellence World class assets Continuous improvement in culture and capabilities Successful project delivery Disciplined capital allocation
Slide 23: Appendix
BHP Appendix
Slide 24: Footnotes
Footnotes 1. Slide 5: Zero fatalities at our operated assets. High-potential injuries (HPI) are recordable injuries and first aid cases where there was the potential for a fatality. 2. Slide 7: From FY20 baseline (15.9 Mt CO2-e), which will be adjusted for any material acquisitions and divestments b
Slide 25: Social value scorecard
Social value scorecard We are making good progress on our social value commitments H1 H2 H1 Category1 Key indicators FY22 FY21 FY21 FY21 FY20 Target Fatalities 0 0 0 0 0 Zero work-related fatalities High Potential Injury (HPI) frequency Safety and 0.18 0.20 0.20 0.20 0.24 Year-on-year improvement of
Slide 26: Determined to contribute to a sustainable future
Determined to contribute to a sustainable Future Overview • A charitable organisation solely funded by BHP but operates independently • Applies ‘philanthropic venture capital’ approach to pioneer bold new solutions to some of the world’s most pressing sustainable development challenges • Since 2014
Slide 27: Petroleum merger mechanics
Petroleum merger mechanics Merger with Woodside provides choice and delivers benefits for BHP shareholders New Woodside shares, representing 48% of the enlarged share capital of Woodside, will be distributed to BHP shareholders. The number of new shares issued on completion will be adjusted to refle
Slide 28: Petroleum performance and plans
Petroleum performance and plans Continued operational excellence while progressing competitive pipeline of growth options Petroleum has a strong record of performance and results… • Strong safety performance, growing production base, and good cost discipline despite impacts from COVID-19 • Advancing
Slide 29: Jansen S1 awards first major contracts
Jansen S1 awards first major contracts Project progressing to plan, well-scoped capital budget Early progress Investment spend profile Jansen S1 US$5.7 bn (C$7.5 bn) project is 3% complete (US$ billion) 1.6 following August 2021 sanction1.2 ~US$1.2 bn in contracts awarded so far, covering the port,
Slide 30: Technology driving smarter operations
Technology driving smarter operations Technology is a key lever for BHP to improve safety, increase production and reduce costs Data automation Innovation Fleet Automation ~$1 bn Leaching ~200 value unlocked by 5 Digital Centres CPY1 and ripios2 could unlock latent autonomous trucks operating global
Slide 31: Samarco and Renova Foundation
Samarco and Renova Foundation Renova accelerates remediation, compensation spend to R$19.6 billion; restart of Samarco made significant regional contribution Compensation Resettlement Samarco Indemnification and financial assistance payments 128 resettlement cases across the region Restart in Decemb
Slide 32: Continued capital allocation discipline
Continued capital allocation discipline Our balance sheet is strong H1 FY22 (on a continuing basis) Operating Capital productivity productivity Net operating cash flow US$11.5bn Maintenance capital US$1.1 bn Strong balance sheet Minimum 50% payout ratio dividend US$5.5bn Excess cash US$3.5 bn Includ
Slide 33: Return on Capital Employed
Return on Capital Employed Record ROCE of 42.9% for H1 FY22 on a continuing basis ROCE ROCE by asset H1 FY22 (%) (%) 50 80 Antamina2 45 50 40 35 40 30 WAIO1 30 Escondida QCoal 25 Nickel West 20 20 15 10 Pampa 10 Norte Olympic Dam Potash 50 (10)FY18 FY19 FY20 FY21 FY22 0 10 20 30 40 50 Half year resu
Slide 34: Balance sheet
Balance sheet Net debt of US$6.1 billion and gearing of 10.0% Movements in net debt Debt maturity profile3 (US$ billion) (US$ billion) 8 8 0.5 6.1 1.3 6 (0.1) 4.1 (9.7) 10.0 6 4 2 4.1 4 0 (2) 2 (4) (6) 0 (8) FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Post FY21 Free cash flow1 Dividends paid Divide
Slide 35: BHP guidance
BHP guidance Group (Continuing Operations) FY22e Capital and exploration expenditure (US$bn) 6.5 Cash basis. Including: Maintenance 2.8 Maintenance: Includes non-discretionary capital expenditure to maintain asset integrity, reduce risks, and meet compliance requirements. Also includes capitalised d
Slide 36: BHP guidance (continued)
BHP guidance (continued) Iron Ore FY22e Medium term Iron ore production (Mt) 249 – 259 Western Australia Iron Ore: 246 – 255 Mt; Samarco 3 -4 Mt. Capital and exploration expenditure (US$bn) 2.2 Western Australia Iron Or Iron ore production (Mt, 100% basis) 278 – 288 >290 Unit cash costs (US$/t) 17.5
Slide 37: Key Underlying EBITDA sensitivities
Key Underlying EBITDA sensitivities Approximate impact1 on H2 FY22 Underlying EBITDA of changes of: US$ million US$1/t on iron ore price2 119 US$1/bbl on oil price3 18 US$1/t on metallurgical coal price 19 US¢1/lb on copper price2 19 US$1/t on energy coal price2 7 US¢1/lb on nickel price 1 AUD (US¢1
Slide 38: BHP
BHP 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 Group Limited and BHP Group Plc Date: February 15, 2022 By: /s/ Stefanie Wilkinson Name: Stefan