Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2012)
63 slides from Bhp's shareholder meeting presentation, Nov 29, 2012
Slide 1: Annual General Meeting 2012
For personal use only Newman, Iron Ore Australia Annual General Meeting 2012 BHP Billiton Limited 29 November 2012
Slide 2: Jac Nasser, Chairman
For personal use only Neptune, Gulf of Mexico, Petroleum United States Jac Nasser Chairman Annual General Meeting 29 November 2012
Slide 3: Disclaimer
Disclaimer For personal use only Reliance on Third Party Information The views expressed herein contain certain information that has been derived from publicly available sources that has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliab
Slide 4: Jac Nasser, Chairman
For personal use only Jac Nasser Chairman Annual General Meeting 29 November 2012
Slide 5: Donna Ingram, Metropolitan Local Aboriginal Land Council
Donna Ingram Metropolitan Local Aboriginal Land Council For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 5
Slide 6: Mt Arthur, Energy Coal
Mt Arthur, Energy Coal Australia For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 6
Slide 7: Pat Davies, Member Remuneration Committee
Pat Davies For personal use only Member Remuneration Committee BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 7
Slide 8: Group Management Committee
Group Management Committee For personal use only Marius Kloppers Graham Kerr Alberto Calderon Mike Henry Andrew Mackenzie Marcus Randolph Karen Wood J Michael Yeager BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 8
Slide 9: Forum on Corporate Responsibility
Forum on Corporate Responsibility For personal use only Cristina Echavarria Yaa Ntiamoa-Baidu Tommy Garnett Phil Vernon Malini Mehra Colombia Ghana Sierra Leone United Kingdom United Kingdom/India Simon Longstaff James Ensor Greg Bourne Mick Dodson Australia Australia Australia Australia BHP Billito
Slide 10: Port Hedland, Iron Ore
Port Hedland, Iron Ore Australia For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 10
Slide 11: GDP growth in OECD
GDP growth in OECD For personal use only Contribution to growth in world real GDP per capita (%) 15 10 5 0 (5) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Euro area United States Advanced economies Source: IMF Global Economic Outlook database. BHP Billiton Limited Annual General Meeting, 29 No
Slide 12: GDP growth in OECD and non-OECD countries
GDP growth in OECD and non-OECD countries For personal use only Contribution to growth in world real GDP per capita (%) 15 10 5 0 (5) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Euro area United States China Advanced economies Emerging market and developing economies Source: IMF Global Economi
Slide 13: GDP growth in OECD and non-OECD countries
GDP growth in OECD and non-OECD countries For personal use only Contribution to growth in world real GDP per capita (%) 15 Forecast 10 5 0 (5) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Euro area United States China Advanced economies Emerging market and developing ec
Slide 14: Olympic Dam, Base Metals
Olympic Dam, Base Metals Australia For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 14
Slide 15: China's development
China’s development For personal use only Shanghai, China BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 15
Slide 16: Broken Hill circa 1900, Indonesia circa 1920
Broken Hill circa 1900 Indonesia circa 1920 BHP Billiton For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 16
Slide 17: Bass Strait and Shenzi, Petroleum
Bass Strait, Petroleum Shenzi, Gulf of Mexico, Petroleum Australia United States For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 17
Slide 18: Escondida and Spence, Base Metals
Escondida, Base Metals Copper, Spence, Base Metals Chile Chile For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 18
Slide 19: Eagle Ford, Petroleum
Eagle Ford, Petroleum United States For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 19
Slide 20: Jansen Potash, Canada
Potash, Jansen Potash, Jansen Canada Canada For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 20
Slide 21: Escondida, Base Metals
Escondida, Base Metals Chile For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 21
Slide 22: Strong performance
Strong performance For personal use only Profit attributable to shareholders1 Net operating cash flow2 (US$ billion) (US$ billion) 25 35 30 20 25 15 20 15 10 10 5 5 0 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012 1. Including exceptional items. 2. Net operating cash flows a
Slide 23: Full year dividends
Full year dividends For personal use only Dividends1 FY2003 – FY2012 FY2012 (US cents per share (cps)) CAGR USD: 26% Full year dividend CAGR AUD: 18% 112 cps 120 Full year dividend 11% 100 80 60 40 20 0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1. Dividends declared in re
Slide 24: Delivering superior shareholder returns over years
Delivering superior shareholder returns over 10 years For personal use only Total Shareholder Return (TSR)1 (%) 400 BHP Billiton Limited dividends BHP Billiton TSR 342% BHP Billiton Limited price ASX200 dividends 300 ASX200 price 200 ASX200 TSR 117% 100 0 FY03 - current FY2003 – current Source: Data
Slide 25: FY2012 attributable profit and exceptional items
FY2012 attributable profit and exceptional items For personal use only Attributable profit (US$ billion) 20 17.1 0.1 15.4 15 (1.8) 10 5 0 Attributable profit - excluding Fayetteville impairment Other exceptional items¹ Attributable profit - including exceptional items exceptional items 1. Other exce
Slide 26: Eagle Ford, Petroleum
Eagle Ford, Petroleum United States For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 26
Slide 27: Diversification strategy
Diversification strategy For personal use only Escondida, Base Metals Port Hedland, Iron Ore BMA, Metallurgical Coal Chile Australia Australia Jansen, Potash Eagle Ford, Petroleum Canada United States BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 27
Slide 28: Performance since 2007
Performance since 2007 For personal use only Total Recordable Injury Frequency Greenhouse gas emissions (TRIF) (kilotonnes CO2-e) 8 60,000 Reduced by 36% Reduced by 19% 6 45,000 4 30,000 2 15,000 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Production Underlying EBIT EBIT margin1
Slide 29: Community
Community For personal use only Artists working on Minyipuru (Seven Sister) as part Installing solar panels in local homes, Spence of Yiwarra Kuju: The Canning Stock Route Project Base Metals, Chile Mozal Community Development Trust Newman Primary School Aluminium, Mozambique Iron Ore, Australia BHP
Slide 30: Improving maternal and child health in southern Africa
Improving maternal and child health in southern Africa For personal use only ‘Window of Opportunity’ project in partnership with Program for Appropriate Technology in Health (PATH) BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 30
Slide 31: Community
Community For personal use only Regional Science Fair, Illawarra Students at a Sujag Sansar Organization school Metallurgical Coal, Australia Petroleum, Pakistan School Library Toconao, Foundation of Escondida Pre-prep program at Blackwater Primary School, BMA Base Metals, Chile Metallurgical Coal,
Slide 32: BMA, Metallurgical Coal
BMA, Metallurgical Coal Australia For personal use only BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 32
Slide 33: Agenda
Agenda For personal use only Chairman's address CEO's address Questions Items of business BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 33
Slide 34: Marius Kloppers, Chief Executive Officer
Port Hedland, Iron Ore, Australia For personal use only Marius Kloppers Chief Executive Officer Annual General Meeting 29 November 2012
Slide 35: Overview
Overview For personal use only Port Hedland, Shenzi, Iron Petroleum Ore • Safety • Financial Performance • Current market conditions and economic outlook • Our response to the challenges facing the industry BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 35
Slide 36: Robust financial results
Robust financial results For personal use only Attributable profit1 Underlying EBIT2 • Attributable profit of US$15.4 billion (US$ billion) (US$ billion) included net exceptional charges of 25 35 US$1.7 billion 30 20 25 15 • Attributable profit (excluding exceptional 20 items) of US$17.1 billion, do
Slide 37: Production records
Production records For personal use only Angostura Antamina Alumar refinery Cerrejón Coal GEMCO Petroleum Base Metals Aluminium & Nickel Energy Coal Manganese Trinidad and Tobago Peru Brazil Colombia Australia Hotazel Illawarra New South Wales Spence Western Australia Manganese Metallurgical Coal En
Slide 38: Our robust returns enable investment in our core commodities
Our robust returns enable investment in our core commodities throughout the cycle For personal use only Major projects currently in execution1 Iron Ore Metallurgical Coal D&SP (capital expenditure, US$ billion) Petroleum Energy Coal SSM Base Metals Manganese Aluminium ≤ US$500m US$501m-US$5bn FY12 F
Slide 39: We are committed to our communities
We are committed to our communities For personal use only Drinking water program, Zamzama Literacy program, BMA Petroleum, Pakistan Metallurgical Coal, Australia School Library Toconao, Foundation of Escondida Nelson Mandela Secondary School Base Metals, Chile Aluminium, Mozambique BHP Billiton Limi
Slide 40: Prices have been volatile over the short term
Prices have been volatile over the short term For personal use only Iron ore prices Steel mill inventory US Fed asset purchases Copper price (US$/t, 62% Fe, (Days of inventory) (US$ billion) (US$/t) CIF China) 150 40 15 9,000 Iron ore prices 135 35 10 QE3 8,500 Announcement 120 30 5 105 25 0 8,000 9
Slide 41: China's GDP growth
China’s GDP growth For personal use only • Over the past decade China grew Chinese GDP growth rapidly as investment facilitated (%) urbanisation 16 • China’s slowdown is directionally in 14 line with expectations 12 • Over the next decade, urbanisation and industrialisation will continue to 10 be th
Slide 42: Strength in diversity
Strength in diversity For personal use only • The value of our diversified strategy was Underlying EBIT1 reflected in the Group’s Underlying EBIT (%) margin of 39%1 100 75 • Net operating cash flow of US$12.1 50 billion in H2 FY12 declined by 1% when 25 compared with H1 FY12 and 0 demonstrated the c
Slide 43: The power of our diversified model
The power of our diversified model For personal use only EBIT margin¹ (%) 80 Petroleum 60 Aluminium Base Metals D&SP 40 SSM Iron Ore Manganese Metallurgical Coal 20 Energy Coal Total 0 FY02² FY03 FY04 FY05 FY06 FY07 FY08 FY09² FY10 FY11 FY12² 1. Calculated on the basis of UKGAAP for periods prior to
Slide 44: Decisive actions in a challenging market
Decisive actions in a challenging market For personal use only • Despite the rate of cost escalation being FY12 cash costs escalation1 exacerbated by a number of temporary (%) factors, we are targeting significant cost +5% reductions in FY13 Metallurgical Coal • Decisive action, including site closu
Slide 45: Superior returns throughout the cycle
Superior returns throughout the cycle For personal use only • Our proven strategy has delivered sector Total shareholder returns over 10 years2 leading returns (%) 700 • With 19 major, largely brownfield projects currently in execution, we are on track to 600 continue to deliver industry leading ret
Slide 46: Marius Kloppers, Chief Executive Officer
Port Hedland, Iron Ore, Australia For personal use only Marius Kloppers Chief Executive Officer Annual General Meeting 29 November 2012
Slide 47: Jac Nasser, Chairman
For personal use only Jac Nasser Chairman Annual General Meeting 29 November 2012
Slide 48: Agenda
Agenda For personal use only Chairman's address CEO's address Questions Items of business BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 48
Slide 49: Questions
Port Hedland, Iron Ore Australia For personal use only Questions
Slide 50: Item 1: Receive financial statements and reports
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 1: Receive financial statements and reports BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 50
Slide 51: Items 2-14: Election of Directors
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Items 2-14: Election of Directors BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 51
Slide 52: Pat Davies, Member Remuneration Committee
Pat Davies For personal use only Member Remuneration Committee BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 52
Slide 53: Items 2-14: Election of Directors
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Items 2-14: Election of Directors BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 53
Slide 54: Item 15: Reappointment of auditor
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 15: Reappointment of auditor of BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 54
Slide 55: Item 16: General authority to issue shares
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 16: General authority to issue shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 55
Slide 56: Item 17: Issuing shares for cash
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 17: Issuing shares in BHP Billiton Plc for cash BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 56
Slide 57: Item 18: Repurchase of shares
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 18: Repurchase of shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 57
Slide 58: Item 19: Remuneration Report
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 19: Remuneration Report BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 58
Slide 59: STI, LTI and Company Performance
STI, LTI and Company Performance For personal use only Average STI reward for current GMC members Value of US$100 invested over the vs profit attributable to shareholders 2007 LTIP cycle (excluding exceptional items) (with dividends reinvested) 24 100 $250 BHP Billiton Limited Profit attributable –
Slide 60: CEO Remuneration Mix
CEO Remuneration Mix For personal use only Total CEO Remuneration (US$ million) 2011 12 US$11.06m Long-term 10 incentive (expected value) 8 2012 Short-term At risk US$6.63m incentive 6 (deferred shares) Long-term Short-term incentive At risk incentive (expected value) 4 (cash) 2 Salary, pension Sala
Slide 61: Item 19: Remuneration Report
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 19: Remuneration Report BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 61
Slide 62: Item 20: Approval of Long-Term Incentive performance shares
Agenda For personal use only Chairman's address CEO’s address Questions Items of business Item 20: Approval of Long-Term Incentive performance shares to Executive Director BHP Billiton Limited Annual General Meeting, 29 November 2012 Slide 62
Slide 63: BHP Billiton: resourcing the future
édl bhpbilliton resourcing the future