Bhp Group Ltd · ASX:BHP

Bhp — RIO Tinto — Merger or Acquisition (May 2008)

24 slides from Bhp's merger presentation, May 14, 2008

  1. Slide 1: Rule 425 filing cover note

    Filed by: BHP Billiton Plc and BHP Billiton Limited Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Rio Tinto plc Commission File No.: 001-10533 The following are slides comprising a presentation that was first given by Alberto Calderon, Chief Commercial Officer, BHP Billiton

  2. Slide 2: Sales Desk Update

    Sales Desk Update Alberto Calderon, Chief Commercial Officer 14 May 2008

  3. Slide 3: Disclaimer

    Disclaimer Thisdocument hasbeenprepared by BHPBillitonLimitedandBHPBillitonPlc(“BHPBilliton") andcomprises thewrittenmaterials/slides fora presentation concerning BHPBilliton's offersfor RioTintoLimitedandRioTintoplc(“RioTinto”).Byreviewing/attending thispresentation youagreetobeboundby thefollowing

  4. Slide 4: Disclaimer (continued)

    Disclaimer (continued) CautionaryNotetoUSInvestors –TheSECpermitsoilandgascompanies, in theirfilingswiththeSEC,todisclose onlyprovedreserves thatacompany hasdemonstrated byactualproduction orconclusive formation teststobeeconomicallyandlegallyproducible underexistingeconomic andoperating conditions.

  5. Slide 5: Resourcing the future

    Resourcing the future • BHP Billiton Petroleum update • Merrill Lynch conference • Update on growth Page 4

  6. Slide 6: BHP Billiton Petroleum: Reserve misconceptions corrected

    BHP Billiton Petroleum Reserve misconceptions corrected • These assets can be very long life. – BHP Billiton Petroleum targets +20 year life assets • Proved Reserves 1,353 mmboePLUS probable Reserves plus 2C Contingent Resources 2,241 mmboe= Total Resources 3,594 mmboe • With capital and expertise a

  7. Slide 7: BHP Billiton Petroleum: Operating performance is strong

    BHP Billiton Petroleum Operating performance is strong • Significant improvements in safety performance Cash operating costs – 3 LTIsYTD (9 mos) 20vs in FY06 (US$/boe) 25 • Significant improvement in uptime performance 20 – 3QFY08: 93.5% 1QFY07: vs 89.0% 15 – 1% improved uptime = ~1.5 mmboe 10 Peers

  8. Slide 8: BHP Billiton Petroleum: Financial outlook is underpinned by growth and price

    BHP Billiton Petroleum Financial outlook is underpinned by growth and price • Forecast volume growth of ~10% CAGR to FY11, underpinned by projects in execution • Oilpriceenvironment expectedtoremainrobust,excellentfiscalregimes– capturesfullupside • LNG market major shift in demand-supply fundamenta

  9. Slide 9: BHP Billiton Petroleum: Inventory of future projects under design and evaluation

    BHP Billiton Petroleum Ahead: Inventory of future projects under design and evaluation OIL GAS LNG UK North West Shelf Algeria Petroleum HQ Pakistan NWS CWLH (16.67%) Replacement of FPSO and Gulf of Mexico Trinidad associated subsea facilities Mad Dog West (23.9%) Angostura Gas (45%) NWS WFGH (16.67

  10. Slide 10: BHP Billiton Petroleum: An E&P player with the power and reach of a super-major

    BHP Billiton Petroleum An E&P player with the power and reach of a super-major Market capitalisation • Credibility and stature that Petroleum could (US$ bnApril 2007) not secure in its own right Exxon Mobil Royal Dutch (1)• A unique offer to major resource holder BHP Billiton BP governments, NOC’s a

  11. Slide 11: Resourcing the future

    Resourcing the future • BHP Billiton Petroleum update • Merrill Lynch conference • Update on growth Page 10

  12. Slide 12: Merrill Lynch Conference: Diversified and balanced across high margin commodities

    Merrill Lynch Conference Diversified and balanced across high margin commodities (a) Underlying EBITDA Underlying EBITDA Margin (12 months, US$bn) (CY2007, 12 months) 23,623 Diamond & Specialty 24,000 Products Diamond and Energy Coal 34% specialty products Energy Petroleum Energy coal 23% (21%) 18,0

  13. Slide 13: Merrill Lynch Conference: Significant price increases across all product groups

    Merrill Lynch Conference Significant price increases across all product groups Carbon Steel Materials Non-Ferrous Energy 552% 512% 491% 421% 337% 346% 228% 163% 90% (a) (b) (c) (d) (e) (f) (g) (h) (i) Met. Coal Manganese Iron Ore Copper Nickel Aluminium Uranium Oil Energy Coal a) Hardcokingcoalbased

  14. Slide 14: Merrill Lynch Conference: Our Carbon Steel Materials assets are Tier 1 assets

    Merrill Lynch Conference Our Carbon Steel Materials assets are Tier 1 assets • Carbon Steel Materials (Iron Iron ore equivalent(a) Underlying EBIT production (12 months, US$bn) Ore, Coking Coal and (mt) (CY 2007) Manganese) • Resource and mineralisation that supports production for 193.3 more than 5

  15. Slide 15: Merrill Lynch Conference: Escondida demonstrates the true value of Tier 1 assets

    Merrill Lynch Conference Escondida demonstrates the true value of Tier 1 assets Tier 1 Assets Copper production at Escondida • Tier 1 assets are large, long- Phase IV + (Tonnes, 000) Laguna Seca life, low-cost and expandable Concentrator Escondida resources that generate Norte + Oxide Plant Sulphide

  16. Slide 16: Merrill Lynch Conference: Staged development of Olympic Dam appears the key

    Merrill Lynch Conference Staged development of Olympic Dam appears the key Staged development concept forecast - production at each stage Gross average revenue yield by per tonne of resource (a)(US$) Gold 106 kozp.a. 100 20 280 200 200 800 Uranium 4.0 0.5 4.5 5 5 19 6 ktp.a. 29 190 190 Copper 730 kt

  17. Slide 17: Resourcing the future

    Resourcing the future • BHP Billiton Petroleum update • Merrill Lynch conference • Update on growth Page 16

  18. Slide 18: Copper equivalent: care required for future projections

    Copper equivalent: care required for future projections Approach • Converting all production to a common basis allows volumes of different commodities to be aggregated and compound annual growth rates per annum (CAGR) to be calculated. • Copper equivalent conversion achieves this in a simplistic way

  19. Slide 19: BHP Billiton has an attractive growth profile of significant scale

    BHP Billiton has an attractive growth profile of significant scale CMSA Heap Angola CMSA Heap Perseverance NWS Nth WA Iron Ore WA Iron Ore DRC Leach 2 Olympic Dam & DRC Macedon Leach 1 Deeps Rankin B RGP 4 Quantum 2 Smelter Expansion 1 Maruwai NWS KNS Cerrejon Angostura Stage 2 AtlantisAngel Kipper

  20. Slide 20: BHP Billiton has an attractive growth profile of significant scale

    BHP Billiton has an attractive growth profile of significant scale Production in copper equivalent tonnes Copper Equivalent Tonnes '000 Simple Copper Equivalent Estimated & 14,000 unrisked • Focused on deliverable growth over the next five BHP Billiton 12,000 years. 10,000 • Commence from CY ’07, a

  21. Slide 21: BHP Billiton's growth capital expenditure is focused on high margin commodities

    BHP Billiton’s growth capital expenditure is focused on high margin commodities Carbon Steel Materials Non-Ferrous Energy Margins matter • Cu equivalent production is based on implied revenue. • $1 million of revenue from energy coal calculates to the same tonnage of copper equivalent as $1 million

  22. Slide 22: BHP Billiton's growth capital expenditure is focused on high margin commodities

    BHP Billiton’s growth capital expenditure is focused on high margin commodities Top 5 Divisional CY07 EBIT Margin by Commodity BHP Billiton CY07 Rio Tinto CY07 EBIT Margin % EBIT Margin % (a) 64% Aluminium 20% Copper 61% Ranked by Iron Ore 46% Petroleum order of contribution to 47% Copper 63% Nickel

  23. Slide 23: Capital cost and risk matter

    Capital cost and risk matter Production growth from brownfield expansions vs Brownfield greenfield development • Expansions or additional Growth in Copper Equivalent Tonnes (CY’07-12) developments of, or around existing operations • Lower cost and lower risk 18% • BHP Billiton 82% of growth in coppe

  24. Slide 24: Resourcing the future

    po cdl bhpbilliton resourcing the future

RIO Tinto — Merger or Acquisition (May 2008) on 6ix