Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton — CLSA Investors' Forum 2010

15 slides from Bhp's conference presentation, Sep 14, 2010

  1. Slide 1: CLSA Investors' Forum

    Newman, Australia CLSA Investors’ Forum Alberto Calderon Chief Commercial Officer 14 September 2010

  2. Slide 2: Disclaimer

    Disclaimer Reliance on third party information This document contains information, including information relating to PotashCorp, that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or

  3. Slide 3: Agenda

    Agenda ƒ BHP Billiton – A year in review ƒ PotashCorp – A compelling offer for a Tier 1 business CLSA Investors’ Forum, 14 September 2010 Slide 3

  4. Slide 4: OECD debt levels remain a fundamental issue

    OECD debt levels remain a fundamental issue US borrowing flows by sector (annualised) (US$ billion) 3,000 Government Business Household 2,000 1,000 0 (1,000) Q1 99 Q1 00 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Annualised borrowing calculated from the quarterly change in debt outs

  5. Slide 5: China is also slowing its economy near term

    China is also slowing its economy near term Money supply (M1) and credit growth (YoY %) 40 M1 Loan growth 30 20 10 0 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Source: CEIC. CLSA Investors’ Forum, 14 September 2010 Slide 5

  6. Slide 6: A uniquely diversified portfolio

    A uniquely diversified portfolio Underlying EBIT(a) Underlying EBIT margin(a) (FY10, US$ billion) (FY10, %) 21 Metallurgical Coal 34% Metallurgical Coal 18 Manganese Manganese 33% Ferrous 15 (43.5%) Iron Ore 54% Iron Ore SSM 20% 12 SSM D&SP D&SP 38% 9 Non Ferrous Base Metals (30.6%) Base Metals 49%

  7. Slide 7: Successful execution of a well defined and simple strategy

    Successful execution of a well defined and simple strategy Diversified peer production comparison – June 2010 (Copper equivalent units(a) – Indexed to 100, for the quarter ended September 2008) 120 BHP Billiton Peer group 100 80 60 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 (a) Copper e

  8. Slide 8: A strong balance sheet creates opportunities

    A strong balance sheet creates opportunities 1 Return on capital and EBIT margin 2 Net operating cash flow (%) (US$ billion) CAGR: 21% 50 Return on capital 20 H1 EBIT margin H2 25 10 0 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 3 Balance sheet 4 Inves

  9. Slide 9: Agenda

    Agenda ƒ BHP Billiton – A year in review ƒ PotashCorp – A compelling offer for a Tier 1 business CLSA Investors’ Forum, 14 September 2010 Slide 9

  10. Slide 10: All cash offer for PotashCorp

    All cash offer for PotashCorp ƒ All cash offer of US$130 per share for PotashCorp ƒ Attractive premium, immediate liquidity and certainty of value regarding the Compelling offer to company’s growth potential PotashCorp ƒ Fully financed with committed credit facilities shareholders ƒ Minimum tender c

  11. Slide 11: Potash mining is attractive for BHP Billiton

    Potash mining is attractive for BHP Billiton ƒ Attractive industry fundamentals Arable land per capita vs. population (World population, bn) (Arable land, ha/person(a)) – Increasing demand for food 10 0.5 – Decreasing arable land per capita 8 0.4 6 0.3 – Shift to higher protein diets 4 0.2 – Need fo

  12. Slide 12: PotashCorp has a Tier 1 asset portfolio

    PotashCorp has a Tier 1 asset portfolio ƒ High quality mining portfolio World’s largest potash company (2009 capacity, mmt) – Large, long-life 12 – Well positioned on the cost curve 9 6 – Expandable 3 – Export-oriented 0 Silvinit ICL Intrepid Potash PotashCorp Belaruskali Uralkali Agrium SQM K+S QSL

  13. Slide 13: Further diversifies a scalable organisation

    Further diversifies a scalable organisation Combined Combined operations operations Houston ƒ Attractive new commodity Brisbane ƒ New set of customers in North and South America Vancouver ƒ More significant operating position in Canada, an attractive investment Santiago destination Perth ƒ Multiple,

  14. Slide 14: We are well positioned

    We are well positioned ƒ The baseline strategy is unchanged ƒ We have delivered another strong set of results ƒ Our unique portfolio positions us to deliver superior margins and returns ƒ The acquisition of PotashCorp is consistent with our strategy Port Hedland, Australia CLSA Investors’ Forum, 14

  15. Slide 15: bhpbilliton

    édl bhpbilliton resourcing the future

BHP Billiton — CLSA Investors' Forum 2010 on 6ix