Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (June 2008)
25 slides from Bhp's merger presentation, Jun 5, 2008
Slide 1: Melbourne Mining Club - Marius Kloppers, CEO BHP Billiton
Melbourne Mining Club Marius Kloppers Chief Executive Officer, BHP Billiton 5 June 2008
Slide 2: Disclaimer
Disclaimer Slide 1 This document has been prepared by BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") and comprises the written materials/slides for a presentation concerning BHP Billiton and its offer for Rio Tinto Limited and Rio Tinto plc (“Rio Tinto”). By reviewing/attending this pres
Slide 3: Disclaimer (continued)
Disclaimer (continued) Slide 2 cause actual results, performance and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements are based on numerous assumptions regarding BHP
Slide 4: Disclaimer (continued)
Disclaimer (continued) Slide 3 Information for US Holders of Rio Tinto Limited Shares BHP Billiton Limited is not required to, and does not plan to, prepare and file with the SEC a registration statement in respect of the Rio Tinto Limited Offer. Accordingly, Rio Tinto Limited shareholders should ca
Slide 5: Resourcing the future: Industry outlook and growth
Resourcing the future Industry outlook and growth Slide 4 BHP Billiton: strategy and approach BHP Billiton: growth Conclusion
Slide 6: Demand growth expected to continue
Demand growth expected to continue Slide 5 Finished steel consumption (kg/capita) Source: World Bank; Government Statistics for Taiwan; IISI GDP/Capita (Jan. 2008 Constant US Dollars) 1,000 1,200 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 China India Japan Korea, Rep. Unite
Slide 7: China's resource demand is not limited to steel
China's resource demand is not limited to steel China USA Other Slide 6 1,000 1,200 1,400 2,000 4,000 6,000 8,000 10,000 12,000 3,000 6,000 9,000 12,000 15,000 18,000 Copper consumption (kt) Nickel consumption (kt) Imported Iron ore (mt) Energy consumption (mtoe) Notes: Seaborne iron ore demand base
Slide 8: Industry challenges
Industry challenges Slide 7 Demand outstripping supply Shortage of skilled labour Infrastructure constraints Rising costs Longer lead times for delivery of large scale projects
Slide 9: Less regulation gives more expansion more quickly
Less regulation gives more expansion more quickly 8 30 30 5 28 Slide 8 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Time required for investment Years Scale of expansion Percent of existing capacity DBCT NCIG* Abbott Point Hay Point Gladstone Size of bubble = expansion in mtpa Unregulated Regulated *
Slide 10: Infrastructure constraints in practice
Infrastructure constraints in practice Photo: The Australian Slide
Slide 11: Resourcing the future: BHP Billiton strategy and approach
Resourcing the future BHP Billiton: strategy and approach Slide Industry outlook and growth BHP Billiton: growth Conclusion
Slide 12: Maintaining our commitment to our core strategy
Maintaining our commitment to our core strategy Slide • Focus on Tier 1 assets that are large, low-cost, expandable and consistently profitable • Upstream focus and export-oriented commodities • A deep inventory of growth options • Portfolio diversified by commodity, geography and customer • Overrid
Slide 13: A simple, effective organisation with global talent
Corporate Centre Business Units A simple, effective organisation with global talent Slide • Corporate centre focuses on the things that matter • Ensures delivery of key directives including Zero Harm, reputation & ethics • Monitors and measures business performance • Responsible for managing operati
Slide 14: A globally diversified workforce
A globally diversified workforce Office location GMC Business Presidents Slide • …located in offices across the world • Our leadership team is diversified across a wide range of nationalities…
Slide 15: A strong track record of growth and delivery
A strong track record of growth and delivery % Period Ended Total BHP Shareholder Return (b) Slide Production Growth 2001-2007 ( a ) ( Index : FY2001 production = 100 ) BHP Billiton Ltd ( b ) ( Index : Jun - 2001 = 100 ) FY05 FY04 FY03 FY07 FY02 FY06 BHP Billiton CAGR 8% Source: BHP Billiton product
Slide 16: Resourcing the future: BHP Billiton growth
Resourcing the future BHP Billiton: growth Slide Industry outlook and growth BHP Billiton: strategy and approach Conclusion
Slide 17: Our portfolio is diversified and balanced across high margin commodities
Our portfolio is diversified and balanced across high margin commodities Slide Underlying EBITDA (12 months, US$bn) Underlying EBITDA Margin (a) (CY2007, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Billiton’s half-year financial repo
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Slide 21: Our Tier 1 project growth pipeline is attractive
Our Tier 1 project growth pipeline is attractive Slide 17 Boffa/Santou Refinery As at 2 May 2008 Proposed capital expenditure SSM Energy Coal D&SP Iron Ore Base Metals Petroleum Met Coal CSG Manganese Aluminium Execution Pyrenees Samarco Neptune Shenzi Alumar Atlantis North Klipspruit GEMCO Zamzama
Slide 22: BHP Billiton has an attractive growth profile of significant scale
BHP Billiton has an attractive growth profile of significant scale CAGR 6.9% Slide 2,000 4,000 6,000 8,000 10,000 12,000 14,000 CY 07 CY 08 CY 09 CY 10 CY 11 CY 12 Copper Equivalent Tonnes '000 Production in copper equivalent tonnes Source: BHP Billiton analysis. Similar methodology as per Rio Tinto
Slide 23: Resourcing the future: Conclusion
Resourcing the future Conclusion Slide Industry outlook and growth BHP Billiton: strategy and approach BHP Billiton: growth
Slide 24: Conclusion – Strength, stability and growth
Conclusion – Strength, stability and growth Slide • Strong pricing fundamentals due to increased demand and lagging supply • BHP Billiton’s strategy is unchanged - a diversified upstream portfolio of Tier 1, large, low-cost, expandable assets • BHP Billiton is well positioned to continue to create s
Slide 25: cdl
cdl bhpbilliton resourcing the future