Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (September 2003)
67 slides from Bhp's investor presentation, Sep 25, 2003
Slide 1: BHP Billiton Stainless Steel Materials
ials illiton —_ fab) ht (> = @ (ab) _ (7p) ” w = = BHP B Sta / _ i #=| (ce
Slide 2: Introduction
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Slide 3: THAT TTT See
THAT TTT See HOON i a eNO.
Slide 4: We supply primary nickel and ferrochrome products to the stainless steel industry
at «We supply primary nickel and ferrochrome products to the Stainless Steel - industry — — the fastest-growing major use of metals. * Our focus is on providing a value proposition to meet the needs of our _ customers, and value growth | for our shareholders. “Nickel business formed in 1 997, CSG in
Slide 5: Asset locations: Yabulu, Cerro Matoso, Samancor
blis’ ad p f ’ /p ay ana V a NI Yabuiu Refinery, __ 32ktpa nickel i oF i ; 7 Wij, os i i) a Zi 7 Lg) j y ys y 7 Dy : j i, _ 3 iy 7 se q . Us OLE oy miioy yi Hy yO iy, oy Ly y i j a é | UE a 7 | fi | “ Lees yy y) yy eo Ges GMI He C7 Uy Gy f | 7 Ms oo D A Wag 2 Uy ‘CorroMatoso Ly / a a Wy _ : ig : Li,
Slide 6: Growth platform and emerging strategy
row ets, anemerging * Continuous improvement of existing Nickel and Chrome operations - based on: Competitive operations. ~ A value in use offering to customers A strong market position in a high growth market An experienced, integrated business management team « Demonstrating HSEC industry robustne
Slide 7: 2S hUm6rrr—“Ci__CORN
: 2S hUm6rrr—“Ci__CORN Se i i EES; 2§ cs vec: = heed
Slide 8: Primary Nickel and Ferrochrome
NNN Primary Nickel “Ferrochrome
Slide 9: Historical growth (30 years)
i iii Kinin ma nA mi one nesnniuin I TTT Historical growth (30 years) HAN AT “cAGR 1970-2000 Mi I I I TS TS TO | | | | | | | | | | | | | | | | | | | | | | | | | L il ue il a il — — il) a il) _ il 2 TNT Lr rr re rr re re er rr rr WoT
Slide 10: Austenitic stainless steel strong growth trend
HH LLHIRATATR tt tH HATER ee ee ee ee ee a ena Austenitic Stai nies has main ned a strong growth trend. Prin Nickel and C \puts: i / proportio tionately faster as scrap eee Hutt HMRI . a OT - _. oo - ye | , _ | .. .§.8§8§=sssc ..rrCts—s—CisC*zs oo : : . ee | Doe a Bee. Pee ee Dee ea
Slide 11: i Hii icin inion
i 0 Hii icin inion +208%
Slide 12: Slide 12
Slide 13: China increasing market for seaborne imports of nickel and chrome
HI An HME Hy i T_T MMM ini i TTTTET_El_C_T_w_w_ TN | China increasing market for seaborne imports of Nickel and Chrome _. oe iyss 8 sumptions
Slide 14: ap
ap
Slide 15: ll i i UNNI INI h ) wn i) Ha nn
ll i i UNNI INI h ) wn i) Ha nn tl y il ‘ TSH By ie RES 8 oF a L ee ees ,Drr”—C~—™ a ea -_
Slide 16: LME cash price and median operating costs
i. dic gine of cover tive _ e heir c ae ile ag) al rnin pita LME cash price median C1 operating cost median C3 operating a oe c : a. Oo . a oe 8 Po a a J ; a . 1985 Lo ey > — = oo @+}@23§»=»=»——er—e co | a = ee _ ee oe _ oo _. _SOUice | Brook Hunt oe oo. . _ a _ . Ge — oo. aes co . 2 ee i a a
Slide 17: Demand outlook
RTT CVn Upp dema f 2) En on : is the ]200 I) i) Ml) il iM ill i i mn 200 05-|2 2010 2 LLG ag) ge er 8 co Co a _ _ a 1 Ne. 2 _ _ Ly furnaces te - | 2 | one a a _ ce = ul ae _ _ Der annum | _ a 24 2 == _. - oc S 8 ] | Dh a Le _ _ ~~ . - 2 oo i oe a. 7 L ae
Slide 18: LY:
LY:
Slide 19: Customer centric marketing strategy
i Ml lea eee mn xt iii BHP E il i ton S Strat re egic alue “i Dr ii ver N iy SM Customer r Ce er Centric Marketing Strate ey y Le Sell more re product ey se 7 “at Hohe margins ... | ee Meat . whilst reducing ris eee VE EE ie ne ia OLE isis sii ee oe
Slide 20: Customer focused marketing (Strategic Value Driver)
rated Customer focused marketing (Strategic Value Driver) ao MEL | = a . a - _
Slide 21: Clear focus on benchmark, not only history
Clear focus on benchmark, not only history Customer recognition as a preferred supplier Margin improvement (premia and costs) Improved supply chain management Cross BHP Billiton CSG opportunities Ability to add more volume and products to ~ portfolio
Slide 22: ic tw!”!”DLDLULU™UCOC~C~—t—CCSS
ic tw!”!”DLDLULU™UCOC~C~—t—CCSS i Source: BHP Billiton ee Ue me ye oe Ls
Slide 23: baa
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Slide 24: oni Lean NN
oni Lean NN
Slide 25: lll ia
TA lll ia eGelh inflat ton bute ta sign ite ponte contri 4). Pen TE a, am ") Lc Knit ee _ Lo HP Bt _ coe . - ce i a. a oe . oo i _
Slide 26: Slide 26
Slide 27: Samancor
Samancor
Slide 28: = feo
oe =tV—_ i... = feo SF — —. sf pte Sel a :
Slide 29: TRA RATTT
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Slide 30: Increasing business maturity
nn icturing 0 ____ Increasing business maturity
Slide 31: Slide 31
Slide 32: - _ _ — _ —- _- _ = = = = _ =
- _ _ — _ —- _- _ = = = = _ = ee
Slide 33: wn Mu Si
wn Mu Si es
Slide 34: Cerro Matoso improvement and expansion under strategy
latoso § rovement and expansion under < Straieg) -_institutionalisation of a continuous improvement philosophy
Slide 35: HATA
HATA NM iN 0000
Slide 36: Yabulu continuing improvement
a Ne le TT UCL aaa ay een ee ieseeonabayptalbe r nickel produ stl LLANES RN ee eT a} in CC ned all i late _ Ing Improvemel TD il !!) )) ) ll) TT | 1) ij il 1) I! a I! OO ) a cnn i We ue l ! ae 2 - - . ey el _ - oda i ae | . | . oe oe . oo - CU | oo . — ee Pee ee eee Z _
Slide 37: Ee eee eee ee =
Ee eee eee ee = CG ONG ie k —_— A | | 4 | 4 | | 4 f= = .
Slide 38: A ATCHTHRTEMTHTTARTTTTCRHTR
A ATCHTHRTEMTHTTARTTTTCRHTR “nn avin
Slide 39: Horizons: establishing the foundation
STRATA TTT AACA A a A | Horizons 1 + 2: Establishing the foundation - improved safetyand i prodi ction pe: eT a oo | : a = | - gee. lrL lr rl ee : Source ce oe Cc _ —r”r~—~—”—C—C—”CC'7V—W"m'"| oe ee ee oe De
Slide 40: Horizons: improved cost efficiency
"Horizons 1 + 2: Establishing the f an - improved co e -efficier CIES 0 emons rate Ya ( ) i TTT''TT1''TC'T''T' A Ty, eee ee TT Mihi i —TT__O_ST_—Xi«X¥ iii - 2. . ie ie ie Normalised to FY03 Actual Costs: ial : i LME $3.4. US$/A$ 0.58 »-. Oil AS300A i LMB $7.3 Naphtha A$730/ - - - ooo ee cE 7 Fo RYO
Slide 41: Co ae
oe ek . To co Co ae a ie PO — — _ e _ i - Fate fficient mine and | i - Y -— - : : Ll oe . oo _ . 7 _. oo ee _ : _— _— : : _ - - - a a. . DEBE eee) Bee gee ee ee Do i On i i) i ‘iii Co . 7
Slide 42: Expansion
FATA “i OO EEE lll cena cie ie isle — NAN NN ii i LM TT i) i) LO | TT TT TT Expansion,
Slide 43: i
i
Slide 44: PSS Se eee eS
PSS Se eee eS Be e—O—COSOSOCisSE=S= = GR Sees Qo ig
Slide 45: Development programmes
pment ~a ye i ay ons 7 Vee 7 Lys yee i _ ye ve y |... Vi | a oo a oo. ay Ii, _ oo _ a a Nome of ey Vi WEE e a Ve yy a evelopment f oni TA ha Mn: rogrammes , 7 7, j Hy J L7, jg y Wy _— - |... _ _ . _ _. - _ - ce a a ~~—CCsCson a a yy y a Wi We i. hs ty jy _ LL ae, is By . Va iy WEE Wy og / yy _ Ly 7
Slide 46: Bottom of cost curve
TRAIT ATTARRTT CAT LA AA A il i tal r Bottom of curve
Slide 47: Capex estimate
i Wn Ny LACAN Ui Wi i) Du Mt [ iil || July 03 Falco . | Estimate excluding Estimate i power piant |_| Capex estimate to concentrate ont
Slide 48: Slide 48
Slide 49: Tiss Ay . ig Jt nn
‘|| Cn Tiss Ay . ig Jt nn OO il !) i i) M))))) !) a u a |) a | ) il il cn = i . ic oo. “200: | ok — _ oe | Asi oe . i : Te co MSM a — aE _ - ooo . - Ce - i a oo Loo (oe _ ce a 7 _. |. . _ — @ #= 9 . _ ] Coe Q ee a . oo _ coo . 2 - _
Slide 50: Slide 50
Slide 51: — rr——“C‘<‘COSCOC‘CO(‘#;:SS]
— rr——“C‘<‘COSCOC‘CO(‘#;:SS] or ”—~—“C oLrrS———™—“—C Se === - i= c— ###3§7;=& CC (cc
Slide 52: Slide 52
Slide 53: Slide 53
Slide 54: Slide 54
Slide 55: Performance
AVM II Han EH a Perio ‘ormance icici MCT | a oe DO Re Oo estat fee = Oe : ea ee ee
Slide 56: Slide 56
Slide 57: Slide 57
Slide 58: Reserve build up
HAHA MO Reserve Build up
Slide 59: Stainless steel and IP % change
TTT! TTTiiii ii nnn en Ye TT TT —— WW Stainless Steel % change (left scale) —— WW IP.% change (right scale)
Slide 60: Stainless steel growth by region
3% 2% . Europe 4% 5% lapan 2% 4% ther WW, 15% 13% “World 3% 5% W. Europe USA
Slide 61: Risks to cost
i ‘i Ce oT Gis a CT i On isks to cost / nis Electricity Wy oa
Slide 62: Slide 62
Slide 63: HAAN
HAAN liv ii we TT: ae le i a | Sting) | | Mites: wn TTT CTT il a a ee MN HT i, Ll , 1) | 1) 1) / | 1) 1 Ml) 1) 1 | 1) 1) / i) 7 7 / ill ) i ee oo | - : ae a ne ee De ee ee
Slide 64: Slide 64
Slide 65: Slide 65
Slide 66: Se Me
Oo = Se Me wD & eS
Slide 67: Strong, experienced management team
J il Nighi —__EE |management team Mae strong, experienced managemen i a a i iz 1 | : - — ee AE 0 al i il i ) l oc (|| —TTTTTIiiin ) 0 ) Li ay Wy) ae 7 TT We ey Bee “a Lo Ce ea a es Lo j j Lo A ae oo al retin dae BEVeIG pale nt eting | Officer Le BEE aoe, ay 7 LD Uy . aa Cia ide hot iy oe a HeLa, EL
BHP Billiton — Investor Presentation (September 2003) on 6ix