Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton — Exane BNP Paribas 11th European Seminar (June 2009)

24 slides from Bhp's conference presentation, Jun 10, 2009

1. Slide 1: Stability Throughout the Cycle

   Iron Ore, Newman, Australia Stability Throughout the Cycle Exane BNP Paribas – 11th European Seminar Alberto Calderon, Chief Commercial Officer 10 June 2009

2. Slide 2: Disclaimer

   Disclaimer The views expressed in this presentation are based on information derived from publicly available sources that have not been independently verified. No representation, warranty or undertaking, express or implied, is made or given as to the fairness, accuracy, completeness or reliability o

3. Slide 3: Agenda

   Agenda An Unchanged Strategy Current Economic Conditions and Our Response Exane BNP Paribas 11th European Seminar, June 2009 Slide 3

4. Slide 4: An Unchanged Strategy

   An Unchanged Strategy Seaborne Iron Ore Cost Delivered to China – 2015 (US¢/dmtu, CFR) ƒ Large, low-cost, long-life Tier 1 assets 300 ƒ Export oriented 250 200 ƒ Upstream focused 150 BHP Billiton ƒ Diversified by commodity, customer weighted average 100 Environmental 2015Rehabilitation cost Norwich

5. Slide 5: A Balanced Portfolio

   A Balanced Portfolio Steelmaking Non-Ferrous Energy Materials Products Products ƒ Iron Ore ƒ Copper ƒ Petroleum ƒ Metallurgical ƒ Aluminium ƒ LNG Coal ƒ Nickel ƒ Energy Coal ƒ Manganese ƒ Diamonds ƒ Uranium Exane BNP Paribas 11th European Seminar, June 2009 Slide 5

6. Slide 6: Low Operational Leverage from Low Cost Assets

   Low Operational Leverage from Low Cost Assets EBIT Margin (%) 50 BHP Billiton 40 Key Peers 30 20 10 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Source: Company interim and annual reports of BHP Billiton and its key peers. EBIT excludes exceptional items,

7. Slide 7: Tier Assets: A Preference for Basin Plays

   Tier 1 Assets: A Preference for Basin Plays ƒ Invest for the long term ƒ Ability to benefit from scale Two Examples ƒ Iron Ore: Pilbara, Western Australia ƒ Potash: Saskatchewan & Manitoba, Canada Exane BNP Paribas 11th European Seminar, June 2009 Slide 7

8. Slide 8: Iron Ore: A Significant Resource Position

   Iron Ore: A Significant Resource Position BHP Billiton Resource and Potential Mineralisation (bt, 100% basis) N Roy Hill 0 5 10 20 30 40 50km Scale 1: 1 000 000 Central Pilbara: 7bt Resource + 12-20bt potential mineralisation Yandi Hub RGP5 Upper Marillana Yandi Marillana Central Hub East Pilbara: 5

9. Slide 9: Industry Leading Cost Position

   Industry Leading Cost Position Seaborne Iron Ore Cost Delivered to China – 2015 (US¢/dmtu, CFR) 300 Low operating costs driven by: 250 ƒ Large, Tier 1 high grade ore bodies concentrated around key 200 infrastructure and developed as integrated mining hubs 150 ƒ First class infrastructure BHP Billito

10. Slide 10: Iron Ore: The Ability to Achieve Scale

    Iron Ore: The Ability to Achieve Scale Western Australia Iron Ore Growth Path (100% basis) 145 mtpa 350 mtpa Planning Construction Completed 50 mtpa 26 mtpa 129 mtpa Installed Capacity RGP4 RGP5 Studies (a) (a) All studies and estimated capacity remain under review until they are approved for execut

11. Slide 11: Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin

    Iron Ore: Unlocking Scale Benefits from a World Class Resource Basin ƒ Exciting new joint venture with Rio Tinto announced on 5 June ƒ In principle agreement to form 50:50 joint venture of Pilbara iron ore [Map of BHP/Rio Pilbara assets] assets to leverage benefits of scale Expected benefits include

12. Slide 12: Rapid Evolution to Transparent Pricing

    Rapid Evolution to Transparent Pricing Seaborne Iron Ore Spot Transacted (mt) ƒ Transparent and regular pricing allows customers to mitigate risks on short, 180 5 year CAGR 28% medium and long term contracts 160 ƒ Developments since the start of 2008: 140 54% YoY • Increased liquidity 120 • Three in

13. Slide 13: Liquidity & Transparency

    BHP Billiton is an Active Market Participant Transparency ƒ Regular and transparent market encourages the most efficient producers pricing is consistent with BHP Billiton’s strategy Financial swaps enable Liquidity & Transparency ‘price risk’ to be managed separately from ‘supply risk’ ƒ BHP Billito

14. Slide 14: Potash: Another Basin Play?

    Potash: Another Basin Play? Jansen Project Young Boulder Key target Secondary areas priority areas Exane BNP Paribas 11th European Seminar, June 2009 Slide 14

15. Slide 15: Jansen Project: A Potential Mega Mine

    Jansen Project: A Potential Mega Mine ƒ The most advanced of our project areas Jansen Drilling, July 2008 ƒ Exploration work comprising drilling and 3D seismic program has recently been completed ƒ Nearby operations in the mining corridor - favourable grades, ground conditions and infrastructure ƒ P

16. Slide 16: Agenda

    Agenda An Unchanged Strategy Current Economic Conditions and Our Response Exane BNP Paribas 11th European Seminar, June 2009 Slide 16

17. Slide 17: What does the World Look Like?

    What does the World Look Like? OECD Unemployment and GDP Growth OECD Retail Trade (%) (YoY % Change, Volumes) 10 6 OECD Unemployment Rate SADJ GDP YoY Growth 4 8 2 6 0 4 (2) 2 (4) 0 (6) (2) (8) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 1999 2000 2001 2002 2

18. Slide 18: China Trade Performance Still Unclear

    China Trade Performance Still Unclear Trade Performance in China (% Change YoY) 60 Exports Imports 40 20 0 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 (20) (40) (60) Source: CEIC. Exane BNP Paribas 11th European Seminar, June 2009 Slide 18

19. Slide 19: Why We Remain Positive on the Resources Sector in the Long Term

    Why We Remain Positive on the Resources Sector in the Long Term ƒ Urbanisation trends to continue ƒ More sophisticated manufacturing ƒ Increasing middle class wealth ƒ More commercially built flats requiring steel Chongqing, China Exane BNP Paribas 11th European Seminar, June 2009 Slide 19

20. Slide 20: China's Annual Steel Demand has Doubled from 195mt in 2002 to 426mt in 2008

    China’s Annual Steel Demand has Doubled from 195mt in 2002 to 426mt in 2008 China Finished Steel Demand by Sector 2003-08 (mt) Implied CAGR 13.9% 426 414 13 12 Others 33 367 28 Metal Goods 6 7 11 32 Consumer Durables 338 28 10 26 5 43 Transportation 22 25 45 5 Infrastructure 272 21 37 Machinery 246

21. Slide 21: Urbanisation and Industrialisation Are the Key Drivers of China's Growing Annual Steel Demand

    Urbanisation and Industrialisation Are the Key Drivers of China’s Growing Annual Steel Demand China Population Breakdown 2000-25 China GDP Breakdown 2000-25 (billion) (Real 2000 RMB trillion) 1.6 Urban Population 80 Agriculture GDP Rural Population Service GDP Industry GDP Average Real Growth (%pa)

22. Slide 22: Buildings Likely to Get Higher

    Buildings Likely to Get Higher Random sampling of newly constructed buildings within Hongkou district in downtown Shanghai. All buildings sampled are ~30+ floors in height. 35+ floor buildings expected to increase. Hefei skyline and construction activity – government imposing minimum height requirem

23. Slide 23: BHP Billiton: Stability Throughout the Cycle

    BHP Billiton: Stability Throughout the Cycle ƒ A clear strategy ƒ Tightening the organisation in uncertain times ƒ Commitment to simplicity, accountability and effectiveness ƒ Continue to invest in growth ƒ Opportunistic M&A ƒ We are well positioned to create value from long term demand growth and s

24. Slide 24: bhpbilliton

    édl bhpbilliton ourcing the future

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