Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — H1 2007 Earnings Presentation
66 slides from Bhp's earnings presentation, Feb 7, 2007
Slide 1: Interim Results
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Slide 3: Interim Results
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Slide 5: Interim Results
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Slide 7: Customer Sector Groups
A i ))) i NN i nN NN Petroleum Aluminium Base Metals. Diamonds & Specialty Products. H _ Stainless Steel Materials 7 Iron Ore ‘a an a a 7 777 DLC =
Slide 8: Petroleum
Ti TTT TTT TTT TTT Petroleum Half year production in line with previous “period despite the sale of some operations and no.new major project startups. ~ Improved operational uptime mitigating mature natural field declines.
Slide 9: Aluminium
oy NAAN Ai UN) T wh Tn i Aluminium +107 Half year record EBIT contribution. Half year record production ofaluminium : : ~ Worsley | and alumina. Half year record sales of alumina.
Slide 10: Base Metals
ITS pa Base Metals 2,905 1,893 « Half year record EBIT contribution. Spence completed ahead of-schedule and in line with local currency budget... Spence first cathode harvest Continued ramp up of Escondida Sulphide Leach Project. _ Cannington full production 2¥2007
Slide 11: Diamonds & Specialty Products
Diamonds & Specialty Products Outstanding operational performance from RBM. Higher value Ekati underground « production to increase EBIT over the next few years.
Slide 12: Stainless Steel Materials
Stainless Steel Materials ¢ Record contribution to EBIT. +. Production in line with record ~-.-corresponding-half year. 21 day Kwinana refinery statutory outage in H2 FY2007. Yabulu.expansio mechanically. 374 +284 Ravensthorpe - November 2006 | a
Slide 13: Iron Ore
L000 0 NM NNN LNA NNN LN NNN NNN NNN NNN NINN Iron Ore * Half year record EBIT contribution. Record iron ore production and sales in response {o continuing strong customer demand. Rapid Growth Project 3¢ on bucgetand Tt WA Iron Ore —- RGP-3 Area C
Slide 14: Manganese and Metallurgical Coal
Nenana Te ll TT a 1) — ie OS) ) ee ee Gs LON MUA Moelle ee J / “ oon Asoo iMh eye ~~, I wilaius oN Cc ce ine en net anit t fin MMMM A TN _ Manganese 105 Record manganese ore production. Groote Eylandt expansion in feasibility. ] . The ne cased sas volime ee mR Hay Point Coal Terminal expansion. rr :
Slide 15: Energy Coal
Met nn Energy Coal « Increased EBIT due to higher export prices driven by strong demand. Hunter Valley.Coal achieved record half year production. 3. new projects i in feasibility - the _ Navajo South Mine Extension. Mount Arthur Coal |
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Slide 17: LN (IL FE BI Twa_«« iets:
LN (IL FE BI Twa_«« iets: R 1: ve 4 |
Slide 18: ini wi \ TG ie
ini wi \ TG ie i] | en Il a mn Ailveat aided Dent 0.06 vs Half year nded De - _- US§(530) 1 million a AE: c )) 1 Mae I A: ws ANN: (ott
Slide 19: Underlying EBIT to profit reconciliation
ie . . i 1) wee BG Le ELD Cs ee Underlying EBIT JV net finance costs JV tax expense EBIT - Profit from operations Net a costs Je = ca Ce Ce Xt ense (in / ng roya i ity rel : ce | iG ated tax; Ly a 2006 : Tee yy a ANN ee yyy tuing iii a ee Lg) ahi !) I) Wy i) I) DON i. 9,134 (79) (536) (222) 8,297 (2
Slide 20: Organic Growth and Return to Shareholders
Organic Growth") US$22.7bn_ Return to Shareholders? US$13.8bn
Slide 21: mn
mn
Slide 22: Interim Results
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Slide 23: iii iene
iii iene NN OI Total oo” ExciNon Cash a i “as Bt 5.1% @ a 2005 = z2008 += toe"! 42.2008 | 12007
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Slide 26: w_ cin
w_ cin
Slide 27: aN
aN
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Slide 29: i ee ll
i HT i ee ll ww — TT CY2007 Hi Ni)
Slide 30: Pea eee oo
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Slide 32: Sc TT
Sc TT
Slide 33: Nuclear growth
we ie Mii MMMM inn inti nonin in nin niin enc innniiee ll WWH!!!H_?___._ Mii NNN NN NNN NN NANA NNN uclear growth will be especia A ASIA IN Wee mae Pe ii Ct Ioteinatianal Neclear Safety Cent — ee 3 oe
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Slide 38: Financial summary
UUG Revenue (with JV share of revenue) 22,113 18,080 Underlying EBITDA 10,494 7,971 EBIT — Profit from operati 8,519 6,259 ans us 7,018 103.9 46.7
Slide 39: Cash flow
Operating cash flow and JV dividends “) Net interest paid Tax paid (2) a Net operating cash flow Capital expenditure Exploration expenditure
Slide 40: ANNAN
ANNAN
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Slide 44: EBIT variance analysis
Ie ies, el aa ia Oa Tn AHR Nec05 VS | \ Total volume variance 1e US$55 million AMM oo i o. a 1 |... a 7
Slide 45: J eT
J eT ee EDIT OMS DUN NAAN GCE EL OG Ae ee a ial . . r bet —. fF | 2 ae 2 a i aA ~ i a a _- - - - (ce cae : _— Ee ee ceils aes i eee. NES ONES TE Co i AMAA a oe . ce — OG | - c oe . ee
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Slide 50: Il ed
Il ed
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Slide 52: Projects under construction
Alumar Refinery Expansion (Brazil) — 36% Alumina Q2 CY09 2 million tpa Revised schedule and budget. Western Australia Iron Ore RGP 3 (Australia) - 85% Iron Ore Q4 CY07 20 million pa On time and budget | Samarco Third Pellet Plant (Brazil) - 50% Iron Ore H1 CY08 76 million tpa On time and budget Blac
Slide 53: Petroleum projects under construction
Atlantis South (US) - 44% Oil/gas Under review. Forecast H2 CY07 200,000 barrels and 180 million cubic feet gas per day Ln MIE NMI Revised cost and schedule under review. Genghis Khan (US) - 44% Oil/gas Mid CY07 55,000 barrels per day On time and budget. Zamzama Phase 2 (Pakistan) - 38.5% Gas Q3 CY0
Slide 54: Petroleum projects
8 HI) i) ihe Ln: eT om oleum Proj | USSM ___| North West ShelfAngel _| (Australia) - 16.67% Approved apex | Wy End CY08 ll i iii iin Tes arn Progress On time and budget. 800 million cubic feet gas per day Shenzi (US) -44% Mid CY09 400,000 barrels and 50 million cubic feet of gas per day On time and
Slide 55: Projects in feasibility
Worsley E ficiency and Growth . (Australia) - 86% Alumina End CY09™ 800,000 tpat’) Bakhuis (Suriname) - 45% Bauxite H2 CY09 6.9 million tpa bauxite Western Australia Iron Ore RGP 4+ (Australia) - 85% Iron Ore NW atywel Stage 1 (Indonesia) — Met Coal End CY08 1 million tpa clean coal Increase system
Slide 56: Projects in feasibility
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Slide 57: Commodity price sensitivities
HT I ii Hen TT iii i ii en Ly Ly LLL, ZL LL Ms Bid Hy ML ee “USStI on iron ore price 60 _ US$1/bbI on oil price 25 : _US$1/t on metallurgical coal price 20 ie : USct/Ib on aluminium price 20 USc1/b ‘on copper price 2 a ae _ i er ee ees npn aarapnanaonpannann paeassauonssuennonnene 7 Lo Ly LL i _ : i
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Slide 59: rep,
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Slide 61: Off-market share buy-back
A maximum of A$3.25bn (c. US$2.5bn) Represents 4.3% of BHP Billiton Ltd issued share capital (2.6% of DLC) ' Flexibility to vary size depending on shareholder demand and the Buy-Back Price Eligible shareholders may tender their shares at 5 specified discounts from 10% to 14% inclusive (at 1% interva
Slide 62: Buy-back tax and tender details
3 week fender period opens 5 March 2007 and closes at 7pm, 23 March 2007 Shares acquired on or before 8 February 2007 will gererally comply with the 45- day rule (qualify for the benefit ofdividend franking) Shareholders will be able buy shares in BHP Billiton Ltd on or after the ex-date of Monday,
Slide 63: Buy-back eligibility and tender terms
Shares acquired before the Buy-Back ex-date (Monday, 12 February 2007) will confer an entitlement to participate in the Buy-Back Ineligible shareholders - US and Canadian shareholders, other Excluded Foreign Persons ADRs and Restricted Employee Shares are noteligible to be tendered into the Buy-Back
Slide 64: Buy-back timetable
00 Cutoff date for franking credit entitement under 45-day rule ! Ex-date for Buy-Back entitlement 2 Buy-Back Record Date Mail-out of Buy-Back booklet and tender forms completed by Buy-Back tender period opens Buy-Back tender period closes (7pm Melbourne time) Announcement of Buy-Back Price and any
Slide 65: Illustrative tax consequences
SH Ml Ih | ie | . i lll TTT uvtetoont Nh Uy LN eee OUI NI Income Marginal tax rate Income tax consequences (deemed dividend) |Less: capital component Assumed fully franked deemed dividend ? Add: gross up for franking credits | Assessable income $27.14 Tax on assessable income ($4.07) | Tax offset ®
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