Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Macquarie Conference May 2010
23 slides from Bhp's conference presentation, May 2010
Slide 1: Prerequisites for Metallurgical Coal Growth
Illawarra Illawarra Coal, Coal, Australia Australia Prerequisites for Metallurgical Coal Growth Hubie van Dalsen President – Metallurgical Coal May 2010
Slide 2: Disclaimer
Disclaimer Reliance on Third Party Information The views expressed here contain information 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 reliability of the information. This
Slide 3: 4th largest company in the world by Market Capitalisation
4th largest company in the world by Market Capitalisation Market Capitalisation at 31 March 2010 (US$bn) 350 300 Other Diversified 250 Miners 200 150 100 50 Johnson and Johnson AT&T Inc BHP Billiton Exxon Mobil Rio Tinto* General Electric Anglo American Shell JP Morgan Chase Nestle Wells Fargo Walma
Slide 4: Industry leader in all three steelmaking materials
Industry leader in all three steelmaking materials Petroleum Aluminium Base Metals A significant oil and gas exploration #4 global producer of bauxite and #4 aluminium #3 global producer of copper, and production business company based on net third party sales silver and lead Diamonds & Specialty Pr
Slide 5: BHP Billiton Metallurgical Coal
BHP Billiton Metallurgical Coal Metallurgical Coal BHP Billiton BHP Mitsui Coal Indonesian Mitsubishi Alliance Illawarra Coal (BMC) Coal Project (BMA) 100% 80% 100%* 50% Blackwater Poitrel Appin Coal Contracts of Work: Broadmeadow South Walker Creek Dendrobium Juloi Gregory Crinum West Cliff Lahai G
Slide 6: Selected prerequisites for growth
Selected prerequisites for growth Demand for our product Resources to mine Capital Capacity to implement projects, including people Infrastructure Stability and competitiveness of the tax system Macquarie, May 2010 Slide 6
Slide 7: China's urban population to reach one billion
China’s urban population to reach one billion China’s urban population by city size China's expected urbanisation in 2025 (Millions of people) 926 Chinese cities will have over one million 221 people living in them – Europe has 35 today Mega 120 (10m+) 104 Big 5 (5m–10m) square metres of road will b
Slide 8: Steel intensity per capita grows strongly as a nation industrialises and urbanises
Steel intensity per capita grows strongly as a nation industrialises and urbanises Industrial development & finished steel consumption growth (kg/capita) China/India steel intensity 1,200 Other country steel intensities Possible path range for China by 2025 South Korea 1,000 800 China 600 today Japa
Slide 9: Sustainability of Chinese coking coal demand
Sustainability of Chinese coking coal demand Coastal focus on growth coupled with push for larger blast furnaces 65% steel capacity and >65% planned steel capacity growth is in coastal provinces of China Steel mills are building larger blast furnaces to improve productivity and reduce costs La
Slide 10: Chinese imports fundamentally changed the industry
Chinese imports fundamentally changed the industry 2009 Global hard coking coal supply Chinese net coking coal imports (mt) 40 Coking Coal Imports Coal in Coke Exports 30 Coking Coal Exports Other(a) Net Imports 20 10 0 China China Seaborne (10) (20) (30) (40) 2002 2003 2004 2005 2006 2007 2008 2009
Slide 11: China and India will account for the bulk of global demand growth
China and India will account for the bulk of global demand growth Global Metallurgical Coal Demand (mtpa) CAGR 5.5% 2000 Other India China 2009 Other India China 2025 Source: BHP Billiton analysis. Macquarie, May 2010 Slide 11
Slide 12: Market Evolution
Market Evolution Liquidity Stages of Pricing Mechanism Evolution China is a huge liquid market that will enhance the efficiency of the traditional market Financial settlement against physical delivery CY 2009 China imports represented 15% of seaborne volume, with nearly all being sold on Termina
Slide 13: We are well positioned in the Bowen Basin
We are well positioned in the Bowen Basin Abbot Point FY09 Measured, Indicated Wards & Inferred Resource(a) (c) Well 12 Resource Life (years)(b) (c) Goonyella Riverside Dalrymple Bay Broadmeadow Hay Point Coal UG Red Hill 75 91 South Walker Creek Nov 2006: Poitrel Export tax Daunia imposed 34 Saraji
Slide 14: Illawarra Coal
Illawarra Coal FY09 Measured, Indicated Coal Resources mt (30 June 2009) – All mines & Inferred Resource(a) (b) Measured Indicated Inferred Total Appin Wollongong 256 207 733 1,196 Douglas Park Appin West Wilton Cliff Cordeaux Dendrobum Pit tops Town Wollongong CBD Mt Kembla Main Centre Highways Por
Slide 15: Indonesian Coal Project
Indonesian Coal Project Coal Resources mt (30 June 2009) – All CCoWs Measured Indicated Inferred Total SM Ratah aha Sumber 83 33 658 774 Kalteng Barito EAST KALIMANTAN kam Maruwai Pari Juloi Lahai CENTRAL KALIMANTAN River from Landsat Province boundary S Barito Maruwai Project CCoWs (After Relinquis
Slide 16: Strong Balance Sheet supports growth
Strong Balance Sheet supports growth Net Gearing Interest Cover (%) (Times) 40 100 Net Gearing (LHS) Underlying EBITDA Interest Cover 30 75 20 50 10 25 0 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 1H10 Moody’s Investment Services A3 A2 A1 A1 Standard & Poor’s A- A A+ A+ Underlying Gearing and Un
Slide 17: Project Hub to deliver projects
Project Hub to deliver projects Multiple projects are studied and executed centrally from a newly created Project Hub in Brisbane Managed by Metallurgical Coal Benefits include standardisation, continuity of people, processes and standards Crinum North in Execution; Hay Point coal terminal e
Slide 18: Bowen Basin opportunities
Bowen Basin opportunities Multiple “Tier One” projects – Daunia (4 mtpa) – Caval Ridge (8 mtpa - includes Peak Downs Expansion) – Hay Point coal terminal expansion (44 mtpa staged to 75 mtpa(a)) US$267 million (BHP Billiton share) of pre-approval capital for Caval Ridge and Hay Point coal termin
Slide 19: BMA and BMC Growth options
BMA and BMC Growth options BMA/BMC growth potential (mtpa, 100% basis) 115 105 Saraji East 95 Deep inventory of growth options Goonyella – Goonyella 85 Caval Ridge – Peak Downs – Saraji 75 Daunia – Wards Well BMA/BMC ‘creep’ 65 – Blackwater 55 Current operations 45 Note: Estimated production capac
Slide 20: Industry leading infrastructure options
Industry leading infrastructure options A range of infrastructure options Abbot Point Coal Terminal Recently secured capacity on the Northern Missing Link Project and Abbot Point Coal Terminal (X50) Dalrymple Bay Coal Terminal Northern Hay Point Coal Terminal South Lead role in the coal indust
Slide 21: BHP Billiton disappointed with proposed new Australian Mining Tax
BHP Billiton disappointed with proposed new Australian Mining Tax Stability and competitiveness of the tax system are central to the investment in resources in Australia. These proposals seriously threaten Australia’s competitiveness and jeopardise future investments. It will adversely impact th
Slide 22: Conclusion
Conclusion Metallurgical coal market – China and India driving demand Market clearance pricing – Progress made Growth projects to capture market demand – Premier resource basins – Established projects hub to execute expansion – Balance sheet and cash flow to invest through the cycle Stabilit
Slide 23: bhpbilliton - resourcing the future
édl bhpbilliton resourcing the future