Slide 1: Preliminary Results 30 June 2009
Spence, Chile Preliminary Results 30 June 2009 Marius Kloppers Chief Executive Officer Alex Vanselow Chief Financial Officer 12 August 2009
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: Preliminary Results 30 June 2009
BMA, Australia Preliminary Results 30 June 2009 Marius Kloppers Chief Executive Officer
Slide 4: Financial Results
Financial Results Underlying EBITDA of $22.3 billion, down 20.5% Underlying EBIT of $18.2 billion, down 25.0% Attributable profit (excluding exceptionals) of $10.7 billion, down 30.2% Record cash flow of $18.9 billion Earnings per share (excluding exceptionals) 192.7 US cents Final divid
Slide 5: Operating Performance
Operating Performance Safety Volume adjustments in the face of weak demand Delivered capacity growth from 6 new projects • Shenzi • Neptune Gulf of Mexico Drilling • North West Shelf Train 5 • North West Shelf Angel • Atlantis North • Gemco Continue to invest in the business: 4 projects appr
Slide 6: Western Australian Iron Ore Joint Venture
Western Australian Iron Ore Joint Venture Value adding transaction for BHP Billiton and Rio Tinto Optimisation of a Tier 1 resource province Substantial and unique production and development synergies Newman Iron Ore, Australia Preliminary Results Presentation, 12 August 2009 Slide 6
Slide 7: Preliminary Results 30 June 2009
Shenzi Platform, Gulf of Mexico Preliminary Results 30 June 2009 Alex Vanselow Chief Financial Officer
Slide 8: The Strength of Our Strategy
The Strength of Our Strategy EBIT Margin(a) (%) 70 60 Petroleum Aluminium 50 Base Metals D&SP 40 SSM Iron Ore 30 Manganese Met Coal 20 Energy Coal BHP Billiton 10 0 FY 2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 (a) FY2002 to FY2005 are calculated under UKGAAP, except for the exclusion of
Slide 9: Underlying EBIT by Customer Sector Group
Underlying EBIT by Customer Sector Group Year Ended June (US$m) 2009 2008 Change Petroleum 4,085 5,485 (25.5)% Aluminium 192 1,465 (86.9)% Base Metals (including Uranium) 1,292 7,989 (83.8)% Diamonds & Specialty Products 145 189 (23.3)% Stainless Steel Materials (854) 1,275 (167.0)% Iron Ore 6,229 4
Slide 10: Exceptional Items
Exceptional Items Gross Tax Net Year Ended 30 June 2009 US$m US$m US$m Exceptional Items by Category Suspension of Ravensthorpe nickel operations (3,615) 1,076 (2,539) Announced sale of Yabulu refinery (510) (175) (685) Withdrawal or sale of other operations (665) (23) (688) Deferral of projects and
Slide 11: Underlying EBIT Analysis Year Ended June 2009 vs June 2008
Underlying EBIT Analysis Year Ended June 2009 vs June 2008 (US$bn) 30.0 3.0 25.0 24.3 20.0 (7.0) 2.5 0.3 18.2 (2.4) 15.0 (1.9) (0.6) 10.0 5.0 0.0 Jun 2008 H1 Net H2 Net Volume H1 Costs H2 Costs Exchange Other Jun 2009 Price (a) Price (a) (a) Including impact of price-linked costs. Preliminary Result
Slide 12: Lower Rate of Cost Increase
Lower Rate of Cost Increase Operating Cost Increase Relative to Preceding Half Year (%) 15.0 Total Excluding Non-Cash 12.2 12.0 10.5 9.0 7.3 6.1 6.0 4.1 3.5 3.0 2.2 1.7 0.0 H1 FY2008 H2 FY2008 H1 FY2009 H2 FY2009 Note: Calculated under IFRS. All periods excluded third party trading. Preliminary Resu
Slide 13: Strong Cash Flow – Delivering Value to Shareholders
Strong Cash Flow – Delivering Value to Shareholders Net Operating Cash Flow Organic Growth(a) (US$bn) (US$bn) 20 CAGR: 25% 12 CAGR: 21% 18 9 6 16 3 14 0 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 12 10 8 Return to Shareholders (US$bn) 6 Dividends 9 Share Buy Backs CAGR: 30% 4 Dividends
Slide 14: Preliminary Results 30 June 2009
Preliminary Results 30 June 2009 Marius Kloppers Chief Executive Officer
Slide 15: Restocking in China Now Complete, Developed Economy Restocking Has Commenced
Restocking in China Now Complete, Developed Economy Restocking Has Commenced Monthly Crude Steel Production (% YoY) 20 China ex-China 10 0 (10) (20) (30) (40) Nov 2008 Jan 2008 Jun 2008 Jan 2009 Jun 2009 Jul 2008 Feb 2008 Mar 2008 Apr 2008 May 2008 Aug 2008 Sep 2008 Oct 2008 Dec 2008 Feb 2009 Mar 20
Slide 16: Chinese Supply is Responsive to Price
Chinese Supply is Responsive to Price China Imported Iron Ore and Domestic Concentrate Production (% Share) (mt) 80 Domestic Iron Ore (62% Fe Equiv) Imported Iron Ore 700 Domestic Ore Share Imported Ore Share 69% 600 70 500 60 400 50 300 40 200 30 31% 100 20 0 CY2000 2001 2002 2003 2004 2005 2006 20
Slide 17: Longer Term Fundamentals Remain Strong
Longer Term Fundamentals Remain Strong China Finished Steel Demand Growth By Source 2008 vs 2025 (Index, %) 225 200 175 150 125 100 75 50 25 0 2008 Construction Sector Machinery Sector Auto Sector Other (a) 2025 (a) Includes infrastructure, metal goods, consumer durables, ships and other miscellaneo
Slide 18: BHP Billiton Long Term Value Creation Based On…
BHP Billiton Long Term Value Creation Based On… Market Capitalisation at 31 July 2009 (US$bn) 180 …a consistent and lasting strategy; 150 ... a simple, effective and accountable organisation; 120 ... investing for the future. 90 60 30 0 Rio Tinto (a) China Shenhua (b) Xstrata Southern Copper BHP Bil
Slide 19: Delivering Strong Results
Delivering Strong Results Strong operating cash flows from a high margin portfolio Made necessary adjustments to the business Maintaining a strong balance sheet Continuing to invest in value adding growth Port Hedland, Australia Preliminary Results Presentation, 12 August 2009 Slide 19
Slide 20: bhpbilliton
édl bhpbilliton ourcing the future
Slide 21: Appendix
Appendix cdl bhpbilliton 1e future
Slide 22: Financial Highlights
Financial Highlights Year Ended June (US$m) 2009 2008 Change Revenue 50,211 59,473 (15.6)% Underlying EBITDA 22,275 28,031 (20.5)% Underlying EBIT 18,214 24,282 (25.0)% Attributable Profit (excluding exceptionals) 10,722 15,368 (30.2)% Attributable Profit 5,877 15,390 (61.8)% Net Operating Cash Flow
Slide 23: Cash Flow
Cash Flow Year Ended June (US$m) 2009 2008 Operating Cash Flow and Dividends 25,212 25,199 Net Interest Paid (314) (630) Tax Paid (a) (6,035) (6,752) Net Operating Cash Flow 18,863 17,817 Capital Expenditure (9,492) (7,558) Exploration Expenditure (1,243) (1,350) Purchases of Investments and Other A
Slide 24: Net Interest and Tax
Net Interest and Tax Year Ended June (US$m) 2009 2008 Change Net Interest Expense 543 662 (18.0)% Taxation Expense/(Income) Income Tax Expense 4,784 6,798 (29.6)% Royalty Related Taxation 495 723 (31.5)% Foreign Exchange Impacts 444 (229) 293.9% Underlying Effective Rate 31.4% 30.4% Preliminary Resu
Slide 25: Summary of Key FX Components in Tax Expense/(Income)
Summary of Key FX Components in Tax Expense/(Income) June 2009 June 2008 Restatement of Expense / (Income) Expense / (Income) US$m US$m Current Tax Payable (807) 424 Deferred Tax Balances on Fixed Assets 1,498 (998) Deferred Tax Balances on US$ Debt (156) 335 Deferred Tax Balances on Timing Differen
Slide 26: Key Net Profit Sensitivities
Key Net Profit Sensitivities Approximate Impact(a) on FY2010 Net Profit After Tax of Changes of US$m US$1/t on Iron Ore Price 80 US$1/bbl on Oil Price 35 US$1/t on Metallurgical Coal Price 20 US¢1/lb on Aluminium Price 25 US¢1/lb on Copper Price 20 US$1/t on Energy Coal Price 20 US¢1/lb on Nickel Pr
Slide 27: Impact of Major Commodity Price Movements
Impact of Major Commodity Price Movements Year Ended June 2009 vs June 2008 Total Price Variance – US$(3,982) million(a) (US$m) 5,000 Met Coal 3,779 3,000 Iron Ore 871 Manganese 1,000 658 Energy Coal 224 (1,000) Other Petroleum (681) Aluminium (923) (1,162) Nickel (3,000) (1,996) (5,000) Copper (4,7
Slide 28: Impact of Major Volume Changes
Impact of Major Volume Changes Year Ended June 2009 vs June 2008 Total Volume(a) Variance – US$(2,365) million (US$m) 400 Iron Ore 200 151 00 Nickel Other (200) (102) Energy Coal (106) (152) (400) Petroleum (267) (600) (800) Manganese (725) (1,000) (1,200) Copper (1,164) (1,400) (a) Volume variances
Slide 29: Bulk of the Costs Skewed Towards First Half
Bulk of the Costs Skewed Towards First Half Total Cost Variance – US$(2,528) million (US$m) 400 Structural Operating Non Structural Improvements Shipping 188 200 & Demurrage 60 0 (200) Non Cash Maintenance (153) Other (215) (249) (400) Mining / Grade (419) (600) Labour One-offs Fuel, Energy (561) &
Slide 30: Maturity Profile Analysis
Maturity Profile Analysis Debt Balances(a) (US$m(b)) 2,800 2,400 2,000 1,600 1,200 800 400 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Post 2020 US$ Euro Bank CP Jointly Controlled Bonds Bonds Debt Issuance Entities(c) Subsidiaries(d) % of Portfolio 56% 30% 0% 0% 11% 3% Capital Markets 86% B
Slide 31: We are in a Unique Position
We are in a Unique Position Net Gearing Interest Cover (%) (Times) 40 Net Gearing (LHS) 100 Underlying EBITDA Interest Cover 30 75 20 50 10 25 0 0 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Moody’s Investment Services A3 A2 A1 A1 Standard & Poor’s A- A A+ A+ Underlying Gearing an
Slide 32: Strong Return On Capital Employed
Strong Return On Capital Employed Capital and Exploration Expenditure ROCE (US$bn) (%) 12 Acquisitions (LHS) 40 Organic Growth (a) (LHS) 35 10 ROCE (RHS) 30 8 25 6 20 15 4 10 2 5 0 0 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 (a) Includes capital expenditure and capitalised exploration.
Slide 33: Diversification Remains for Sales into China
Diversification Remains for Sales into China 20% of total company revenues in FY2009 FY2009 Revenue by Location of Customer (US$m) ROW 7,000 Europe 6,657 Australia 6,000 5,293 China 5,013 4,922 Japan 4,951 5,000 Petroleum 3,999 4,000 North America 3,611 Aluminium Other Asia Base Metals 2,946 3,000
Slide 34: India – The Journey Has Begun
India – The Journey Has Begun Sales volume GDP (Cu Equivalent Units Rebased to 100)(a) (US$bn) 350 Equity 1,500 Traded 280 1,200 210 900 140 600 70 300 0 0 China FY2002 India FY2009 (b) China 2002 India 2009 (a) Sales volume converted to copper equivalent units. (b) Rebased against FY2002 sales to C
Slide 35: Capital & Exploration Expenditure
Capital & Exploration Expenditure US$bn FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010F Growth 1.9 2.0 1.7 2.6 4.0 5.5 6.1 7.3 6.5 Sustaining and Other 0.8 0.7 0.9 1.3 2.1 1.6 1.8 2.0 1.9 Exploration(a) (b) 0.4 0.3 0.5 0.5 0.8 0.8 1.4 1.3 1.1 Total 3.1 3.0 3.1 4.4 6.9 7.9 9.3 10.6 9.
Slide 36: Maintenance of a Deep Diversified Inventory of Growth Options
Maintenance of a Deep Diversified Inventory of Growth Options Future Options(a) Feasibility Execution Atlantis Atlantis NWS NWS N2 Newcastle WA WA Iron Iron Ore Ore Yeelerie Yeelerie N2 CWLH CWLH RGP Thebe Thebe Browse Browse Third Port Exp RGP 44 Saraji Saraji Exp Exp Potash Potash -- Other Other L
Slide 37: Provisional Pricing
Provisional Pricing LME – Copper, Grade A Cash US$/lb – A.M. Official (US$) 5.00 3 Month 3 Month 3 Month 3 Month 4.50 4.00 3.50 3.00 LME Q3 2008 ave US$3.49/lb LME Q4 2008 ave LME Q2 2009 ave 2.50 US$1.77/lb US$2.12/lb 2.00 LME Q1 2009 ave US$1.55/lb 1.50 1.00 0.50 0.00 Nov 2008 Jun 2008 Jul 2008 Ja
Slide 38: Universally Attractive
Universally Attractive Value Income Growth Market Capitalisation Growth Ordinary dividends per share 49 projects completed since the (% Growth FY2002 – FY2009)(a) (US¢) merger in 2001 with a value of US$20bn 500 90 82 435 In FY2009 4 projects were 400 approved with a value of US$5.9bn 60 300 4
Slide 39: Delivering Value to Shareholders
Delivering Value to Shareholders Net Operating Cash Flow Net Gearing Dividends per Share (US$bn) (%) (US¢) 20 40 90 18.9 82 18 35 35 80 16 70 30 14 60 25 12 Organic 50 10 Growth(a) 20 10.7 40 8 15 12 30 6 10 3.9 20 4 13 Dividends 5 10 2 4.6 0 0 0 FY2002 FY2009 FY2002 FY2009 FY2002 FY2009 (a) Include