Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — H1 FY2012 Earnings Presentation
38 slides from Bhp's earnings presentation, Feb 8, 2012
Slide 1: Form 6-K Report of Foreign Private Issuer
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 February 8, 2012 BHP BILLITON LIMITED BHP BILLITON PLC (ABN 49 004 028 077) (REG. NO. 3196209) (Exact name of
Slide 2: Interim results, half year ended 31 December 2011
Interim Marius Graham 8 Western February Kloppers results Australia Kerr 2012 Chief Half Chief Iron Financial year Ore Executive endedOfficer 31Officer December 2011
Slide 3: Disclaimer
Interim Disclaimer Slide Forward-Looking future statements state or materially 30 projections presentation BHP This effective Non-IFRS UK Certain undue No Nothing Reliance The warranty predictions June Offer GAAP views presentation that Billiton 2financial reliance results, historical 2011 in tax on
Slide 4: Disclaimer (mineral resources information)
Interim Disclaimer Slide Province (Mt) Western Samarco Olympic Queensland Illawarra Potash Escondida Cerro Antamina This Connell district, Spence All Billiton The Mineral presented. Table information compilers presentation Indicated Inferred 31Colorado –is 241 results, Cerro and Resources Resource (
Slide 5: Marius Kloppers, Chief Executive Officer
Interim Kloppers Marius Escondida results Half Chief yearExecutive ended 31Officer December 2011
Slide 6: Strong interim results
Strong Interim Slide •Total •Underlying •Attributable •Net •Capital •Interim •Gearing Note: operating 5Variance Recordable and results, and dividend increased predictable EBITDA EBIT exploration profit cash relates 8 February of Injury of to (excluding flow 55 US$15.7 25% of to financial US expendit
Slide 7: Robust operating performance
Robust Interim Slide •Record –WAIO –Record •Broader –Industrial –Margin Western 6 performance results, annualised Australia production half compression challenges action year 8 February and Iron production production for across inremnant lower for Ore atwo challenging nickel, 2012 the commodities gr
Slide 8: Prioritising development of liquids-rich onshore US assets
Prioritising Interim Slide •Completed •Successful •Large •Increasing •Targeting •Selectively Onshore 7 7.6 results, US20% billion development focus combination the developing 8acquisition liquids February on barrels thecontribution the high of of2012 of most high the oilreturn, Petrohawk equivalent
Slide 9: Graham Kerr, Chief Financial Officer
Interim results Graham Hotazel Kerr Chief Half Financial year endedOfficer 31 December 2011
Slide 10: Underlying EBIT variance analysis
14.8FY12 0.3 0.5 2.8 15.7 (1.9) (0.5) (0.4) 20.0 15.0 10.0 5.0 Price¹ New Sub-total Inflation Volume H1 Other Underlying EBIT Net Controllable Uncontrollable Slide Interim FY11 0.1 US$(0.2) 17.7 operations 0.0 9variance Exchange results, Costs² EBIT billion (US$ 8 February analysis billion) Half 201
Slide 11: Record volumes, volume variance by business
Record Interim Slide (493) (234) (168) (133) 31 65 76 5 0 (500) Iron 2,000 1,500 Energy Metallurgical D&SP SSM Aluminium Base Petroleum Volume (US$ US$(484) (871) 00 1,000 Ore Metals 10 million) (1,000) Coal iron results, variance 1,243 Manganese million ore Note: Coal 8production February Volume 20
Slide 12: Cost pressures and structural cost variance
Short Interim Slide (455) (400) (800) (1,200) (1,600) (1,585) (315) (218) Raw 400 Labour Structural Total Other Maintenance Underlying (US$ 1. 17% 83%Excludes materials 11 million) 0(597) term & results, contractors Non production EBIT non-cash structural 8 February cashcost constraints costvariance
Slide 13: Centralised procurement and long-term partnerships
Centralised •Centralised •Long •Our •Transition Mar Sep May Jul Jan Slide Interim Average Source: (months) Escondida 11 12 07 06 10 six 12term results, BHP mining project to partnerships procurement procurement Billiton owner 8hubs truck February operator are analysis. lead with and fully oftime 201
Slide 14: Uniquely diversified portfolio, EBIT margin
406uniquely 2 0 (2) 1 8 A 16 14 12 Interim Slide 27% 59% (3%) (0%) 13% 33% 14% 35% 65% Underlying SSM (H1 29% Energy 11% Non-ferrous 60% Ferrous Metallurgical D&SP Petroleum Manganese Base Iron 1.Excludes Aluminium BHP 44% FY12, Ore Billiton Metals 13Coal results, %) US$ third diversified EBIT EBIT1
Slide 15: US$27 billion growth projects in execution
US$27 Interim Slide Non-ferrous 1.As 2.BHP Outer 1 0 Spent Committed 30 20 Current 37% (US$ Worsley Caval Kipper Samarco Daunia HPX3 Port WAIO Turrum Macedon Harbour Laguna Escondida Broad- Misery EKATI Antamina Cerrejon NWS NTP MAC Exp GEMCO Projects 0 2and Exp at 14 billion) Nth GWF-A Harbour to R
Slide 16: Disciplined capital management and gearing
Disciplined Interim Slide 1 0 H1 FY11 FY10 FY09 FY08 FY07 FY06 FY05 FY04 FY03 FY02 40 30 20 Net Cash Capital Sources Acquisitions (US$ 1.Calculated (%) Gearing has 0 FY12 not operating dividends 15 billion) been and management results, andexploration and uses capitalised on cash 8the predictable Feb
Slide 17: Marius Kloppers, Chief Executive Officer
Interim Kloppers Marius Spence results Half Chief yearExecutive ended 31Officer December 2011
Slide 18: Structural demand drivers and outlook
Structural Slide •Cautious •No •The •Commodities •As Chinese ?(% < 8-9% Source: Interim 10% 8%year asimple longer 17 uniquely results, EIU, on GDP on drivers year, solution term the BHP growth demand diversified 82010) short structural February ofBilliton for demand by term will the province resourc
Slide 19: Predictability of strategy and earnings
Predictability Interim Slide •Unchanged •Our –Strong –Greater –Lower –Facilitates •We •The Consensus (index, Strong 2 0 (%) 40 FY09² FY08 FY07 FY06 FY05 FY04 FY03 FY02² H1 FY11 1.Calculated trading 2.Negative 80 70 120 110 100 Apr Jul Oct Jan Note: Source: BHP 0 90 60 11 FY12² 11 12 11 11 prioritise
Slide 20: Strong Western Australia Iron Ore performance
Strong Interim Slide •WAIO •Prior •Well BHP (H1 Western Targeted Other (mtpa, 1 0 FY10 FY09 250 FY15e FY12e 25 FY12) Billiton 19 placed FY11 FY12 100% growth results, annualised Australia growth production to basis) Underlying in8achieve in our February Iron production WAIO Western Ore aguidance EBI
Slide 21: Substantial growth in petroleum, copper and coal
Substantial Interim Slide •A •Queensland •Development Escondida 400 Queensland (index Base Future Debottlenecking 1 0 H1 FY11 FY10 FY09 200 1.Includes FY15e 2.Includes 3.H1 00substantial FY12³ operations production 20 H1 FY10 annualised growth results, FY12³ volumes production1 low Coal Coal increas
Slide 22: Options for growth in high margin assets
The options Oxide Potash Jansen Saskatchewan Caval Hay Daunia Broadmeadow BMC BMA Queensland WAIO Execution: Central Port Western Feasibility: Pre-feasibility: Olympic Slide Interim Note: with Point and Hedland further 21 All Wards Red Ridge Leach Expansion Stage Stages Port results, Pilbara Austral
Slide 23: A global selection of iron ore deposits
25,000 5 0 75 65 55 A 20,000 15,000 10,000 Global (average selection Source: •WAIO •Targeting •Longer Iron Cumulative Interim Slide BHP Western (million Resource Bubble Note: large, 35ore Billiton 22 45iron size results, US$779 Macquarie low cost Australia tonnes) tonnes, term Fe ofBoard ore iron vo
Slide 24: Leading metallurgical coal position
The Source: US$150/t 2. •Leading •Projects •Numerous •Preferred 0 Global 8,000 6,000 (by New Bowen Europe Russia Mozambique Mongolia Canada selection Seaborne BHP Metallurgical Resource Bubble Note: Cumulative (million 2,000 BHP basin) leading South Billiton Based metallurgical Basin Queensland size
Slide 25: Large, low cost copper resources
Large Interim Slide •Escondida •Olympic –Targeting 0.00 4 0 1.00 0.80 0.60 Global 12,000 8,000 (Cu Source: slide 1. resources C1 (US Olympic Spence Antamina Escondida Cerro Cumulative (million ,000 Based cash grade cents 0.20 324 Colorado and as copper results, Annual Brook cost tonnes) on Dam prese
Slide 26: Developing a world class potash business at Jansen
Developing •Three •US$1.2 •Targeting •Planned Interim Slide BHP Export (2020, (million Billiton 25US$ billion cost results, tonnes) billion capacity Board curve per a Jansen world tonne 8tonne committed February approval ofclass resource 8FOB) mtpa presence for 2012 toSource: with delineated date th
Slide 27: Consistent and predictable growth strategy
Consistent Interim •Strong •Substantial, •We have will results, and live taken execution predictable low within 8action risk February our of volume tofinancial ameans address well 2012 growth defined asSlide results industry we is look 26 strategy anticipated wide to exercise challenges at key our w
Slide 28: BHP Billiton, resourcing the future
phpbillition resourcingthe future
Slide 29: Appendix
Appendix bhpbillition resourcingthe future
Slide 30: Impact of major commodity price movements
Impact Slide 1,322 (106) 50 160 (350) (700) Petroleum 1,400 1,050 700 350 SSM Aluminium D&SP 1. Total (US$ Includes Manganese price 29 million) 0(223) 927 of major 927 Metallurgical variance1 negative (673) 391 commodity Base impact Metals Coal of price Iron price movements Ore linked Energy costs.
Slide 31: Operating cost and inflation impact
Rate6.0 9.0 5.3 3.0 0.0 (3.0) 10.1 4.8 (0.8) 9.8 FY08 FY07 12.0 Excluding Total 1.Excludes 2.Variance Slide Interim 4.9 of 30 FY09 10.5 9.0 cost results, non-cash relates the 4.2 change FY10 impact 85.0 February to FY11 Operating theofDecember H1 inflation, 2012 FY12² cost foreign 2011 movement half
Slide 32: Summary of key tax components
Summary Interim Slide Restatement US$ Current Deferred Other Total million 70 31 items results, tax (1,127) tax ofpayable (38) December of key balances December 8 (2) FX February (123) components on2010 fixed US$ timing 391 2011 2012 expense/(income) debt assets expense/(income) differences in151 ta
Slide 33: Capital and exploration expenditure
Capital Slide US$ Total 5 0 0 15billion Note: 1 FY02 20 FY10 FY09 FY08 FY07 3.1 32and Sustaining1.9 Exploration FY12F Growth 3.0 and 2.0 exploration FY02 0.4 3.1Other Calculated FY03 FY11 1.7 0.3 4.4 expenditure capex FY04 FY03 on2.6 0.5 6.9 0.8 FY05 the4.0 (US$0.5 expenditure 7.9 FY04 0.7 5.5 0.8 b
Slide 34: Capital projects pipeline
Browse Burr Project Appin Queensland An Caroona Non-ferrous As Proposed Worsley US$5bn+ US$501m-US$5bn ?US$500m Olympic Outer Kipper Samarco Gabon Daunia HPX3 Cerro Harbour Heap Port WAIO Turrum Macedon Laguna Broad- Misery EKATI Antamina Boodarie Stage Jansen Wards Nimba Scarborough Young West Melv
Slide 35: Debt maturity profile
Maturity Interim Slide Debt (US$ 2 0 Post FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 6,000 4,000 2.The 3.Jointly 4.Subsidiary % 17% 61% 12% 0% CP US$ Euro Bank Capital Jointly 2% 8% Subsidiaries4 ,000 ofIssuance2 FY20 Bonds portfolio Bonds repayments1 34 Debt Supported million) US$4.0 Controlled Market
Slide 36: Key sensitivities
Key Interim Slide Approximate US$1/bbl US$1/t US¢1/lb AUD RAND 1. 2. Assumes Impact net 35 (US¢1/A$) (0.2 on results, profit on based on iron energy metallurgical total aluminium copper nickel Rand/US$) oil impact1 sensitivities ore 8on price volumes February operations2 coal price price average 40
Slide 37: BHP Billiton, resourcing the future
phpbillition resourcingthe future
Slide 38: Signatures
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 Billiton Limited and BHP Billiton Plc Date: February 8, 2012 By: /s/ Jane McAloon Name: Jane McAloo