Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — H1 FY2003 Earnings Presentation
32 slides from Bhp's earnings presentation, Feb 24, 2003
Slide 1: Interim Results
a = —_l oS ep) in oc = oO Lu Re 2 _ i #=| (ce
Slide 2: Highlights – half year ended 31 December 2002
Slide 3: aii j
aii j i Np _ _— a - ie oo. _ a a
Slide 4: eee eee ee eS
eee eee ee eS — 0 0|§=————r—“—OOOSCSS ee (ep) st _ _ op) LL aa = (aa LL aa =
Slide 5: AARNE ;
ae | “at AARNE ; I) He oa rendee a NNN NNN NAN NNNINM NI yyy eg | 2001. icin fit (inc | exceptional =e Ale 0 La Ls tae ML] co | i ad | sninung
Slide 6: | NNN
| NNN ew cm ima | me nded 31 Deoemt o TT iN Petroleum +15 Aluminium +39 Base Metals +20 Carbon Steel Materials... -10 Diamonds & Spec Products _ 43 Energy Coal ‘Stainless Steel Materials i (3 Co : La loratio & Tech ology Ba ees)
Slide 7: Impact of major commodity price changes on EBIT
Slide 8: taxa
taxa ee ions Net interest expense Exchange impact on debt Discounting of provisions/Capitalised interest og |
Slide 9: ene
2 ene TAH Vest oie e i He lu onetar I HES e iii at ) r ee HMM: TT i ie J y iy Way in) fey ‘ atthioes enol atana lvnd hal ab cust es ie ag ae ie 1,659 20 245) (58) 23) 242 _ . y ede oa yt 7 y Coe J | a ] oo 2 _ a
Slide 10: Cash flow
yash bhi - lll al NNN EN CUCL agg L er 6 cc iii Operating cash flow and JV dividends Net interest paid Capital ex expenditure ure 8 investment - € dep osals OO Co 4 (icine ~~ 2002° 1,969 (170) (540) 1,259 (1,200) 272 7 a 2,000 (242) (396) 1,362 oo, 103).
Slide 11: Merger benefits - US$270M by end FY03
TT i) ci ey FY i 0 i ue Merger benefits - US$270M by end FYO oo TOO cd i cnntaicn Revenue enhancement _ Marketing operations EBIT synergies Operational ongoing Operating Excellence ee eels Dy A LMM) Gs Le i i - i ae
Slide 12: Strategic framework US$500m unit cost reduction target
Le aes * en TTT La iI) ae en gic framework US$500m unit cost reduction target _ _ . a . : _ _ _ . o. _- — _ oo i _ oe UE Co . ee ‘a 5 is ne We: Se Be a LC | fi geet Excellence ee _— - . eo
Slide 13: Sp) me —l = ) im aa = (ag Lu ‘ae Z
Sp) me —l = ) im aa = (ag Lu ‘ae Z
Slide 14: Petroleum and Aluminium
PETROLEUM. © 21% (US$. Beibh)) increase in average realised oll prices. to US$27.19/bbl ALUMINIUM * 1.3% (US$17 per tonne) reduction in average LME price for alumi inium to US$1,332 per tonne higher p duction f m sting Excellence programs il
Slide 15: Base Metals and Carbon Steel Materials
BASE METALS © 46% (USSO. 03/Ib) increase in- average realised copper prices to US$0. 68 per Ib. CARBON STEEL MATERIALS ‘ Record iron ore production-and shipments + Increased demand for Samarco pellets
Slide 16: Diamonds & Specialty Products and Energy Coal
HOU OL DIAMONDS & SPECIALTY PRODUCTS * 28% reduction in average realised diamond prices due to product mix ENERGY COAL * Lower-export prices ° Lower volumes due to sale of PT Arutmi in and closure of Reitsprut
Slide 17: Stainless Steel Materials
—l ee a i niin il in Ne ALM MINNA STAINLESS STEEL MATERIALS © 29% | increase in average realised nickel price to US$3.16/lb ° 12% Increase in ferrochrome production in response to increasing market Fenn dem Oe LL cy a ee. o Increa reas as 5d se ales les efficiencies oo . . un . 4a | : . | : | i See
Slide 18: nn nnn
se nn nnn ects “init Rithorp
Slide 19: Hija /
Hija /
Slide 20: alii inn hay
]| ne alii inn hay oo | - _ oe _ oo ae _ a i _ L a i l ‘ ao co S _ a 1 ic a
Slide 21: Sy) iia
Sy) iia _— oo ol - - a ] 20 a a (2 Cl
Slide 22: Slide 22
Slide 23: Projects
ojects ee i ha | | I lll lll wT = : a2 ae a A d Ahead of initial Mozal 2 (Mozambique) - 47.1% Aluminium Q2 2003 schedule and under budget Ahead of initial schedule Hillside 3 (South A frica) - 100% Aluminium Mining Area C (Australia) ~ 85% Iron ore Port & Capacity Expansion (Australia) - 85% Iron or
Slide 24: Projects under development
lll || || || |) || || | || || || | || | || | || NN IN NINN il \\)\)) I i Ohanet (Algeria) ~ 45% Q3 2003 On time On revised ROD (Algeria) - 36% Oil/gas Q1 2004 schedule Mad Dog (US) - 23.9% Oillgas Q4 2004 On time Atlantis (US) - 44% Oil/gas ; Q3 2006 On time GoM Pipelines Infrastructure (US) - 22/25
Slide 25: EBIT analysis – Continuing operations
Slide 26: Financial ratios
i : ialratios = i i a LLL ii = L ey M)) i) Nt M ) )) MN) ))) M) My MN) NM) ) ) MN) Ml) I IN) )) II) yy ) I) MM M WM il) WM) Il MW UM Mh) Il MH Mh J) eM My) My II) ee Gs Wi ee We - Hee Me y Il, wl vl oul LY . : - 8 7 | Uy Wp . = = = = Z ili ii TTT lip = eo oy) _ Lo 7 os nnn LOO 2g iy Mi a Lo : ge L a
Slide 27: AM aa
AM aa NI TN AE ln TT TTT TT HAN na giganto lhl ell A / QL yy) I) NN Mh J) PU rag agg Na a, ee > Zo Lo CC CC Dy (oe 22... Net nayables, receivables & (400 employee provisions Tax provisions — ps a ie iui oo ae . 700 400 PR 7 P&L
Slide 28: Sensitivities
a 7 aie ANAM i BAN) ie ‘i We ADDIOKIN cele co A . Ol ME US$1/bbI on oil price US$1/t on iron ore price US$1/t on metallurgical coal price USctb on aluminium price Sc‘flb on copp nplnc CC copper price: Ln a an ane : oal orice - . . HOPED a ae i 4 . ay, _ Co Se z a oZ. Dew BC 5 oo _— a . co. . - oe .
Slide 29: Exchange rates
4) 2) (Nii . i i) ae [— e : A _ . ay Australian dollar (USc1/A$) _ Operations (net of hedging)" Net monetary liabilities) South African Rand nt 2 RandiUS$) a a Oo aN ok ee) Cc | ' Coos eel ian _ a | . 7 | ie) 4 Ly ey oe a - ee on Tae rates for ‘i Fo a v7 JS$ M) Be Magny se gf i 20 20 oo . . . perio
Slide 30: Strategic framework US$500m unit cost reduction target: cost saving methodology
Slide 31: Interim results
HH ica OH UNVWOTTTTTTTTT nim res! year en Jed 31 December Sf! OOO ao ND ; I i mi WA " eee ae , oe ‘i Lae Ieeapoaaiaoei ioe A qa Ce ; 2 Saat ie uC GCA eaciaiel G iia aterm a re cum cco iit iti iii ‘icin Sales revenue 7,056 8,067 _ Profit before tax 1,275 1,696 Profit after tax attributable to members
Slide 32: Slide 32