Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (October 2015)
25 slides from Bhp's investor presentation, Oct 14, 2015
Slide 1: ASX cover letter: Creating value through marketing excellence
For personal use only BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: News release: Creating value through marketing excellence
NEWS RELEASE For personal use only Release Time IMMEDIATE Date 14 October 2015 Number 20/15 CREATING VALUE THROUGH MARKETING EXCELLENCE BHP Billiton President Marketing, Arnoud Balhuizen today outlined how the Company’s Marketing organisation is uniquely positioned to create value for shareholders b
Slide 3: Media and investor relations contacts
Media Relations Investor Relations Australia Australia Emily Perry Tara Dines Tel: +61 3 9609 2800 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 For personal use only email: Emily.Perry@bhpbilliton.com email: Tara.Dines@bhpbilliton.com Paul Hitchins Andrew Gunn Tel: + 61 3 960
Slide 4: Creating value through marketing excellence
Singapore Port For personal use onlyHedland IR looking at alternate pictures Coloso Creating value through marketing excellence Arnoud Balhuizen President Marketing 14 October 2015
Slide 5: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of
Slide 6: Creating value through marketing excellence
Creating value through marketing excellence For personal use only Sustainability Marketing Productivity Value Drivers Portfolio Our people, culture and highly centralised model Arnoud Balhuizen, President Marketing, 14 October 2015 Slide 3
Slide 7: Our journey: Leading transformation in commodity markets
Our journey Leading transformation in commodity markets For personal use only BHP and Launch of Shift to index pricing Launch of Launch of Billiton merger globalCOAL (bulks and freight) globalORE globalCOAL (thermal coal) (met coal) 2001 2003 2005 2007 2009 2011 2013 2015 Dual hub marketing model In
Slide 8: Our simpler centralised organisation
Our simpler centralised organisation Accelerating best practice For personal use only • We connect the resource to market • Post-demerger, we continue to maximise the advantages of our centralised structure – aggregating and driving efficiency – optimising our global book – applying best-in-class ri
Slide 9: Our locations: Global footprint with strength in diversity
Our locations Global footprint with strength in diversity For personal use only London Tokyo Houston Hub Delhi Shanghai Singapore Hub Marketing diversity Brisbane 50% Female Santiago Perth Adelaide Different 34 nationalities Bubble indicates marketing office locations. Bubble size indicative of # pe
Slide 10: Safety is our first priority
Safety is our first priority Sustainability Marketing is accountable for product stewardship For personal use only • In FY15 we had no significant HSE events as we Port Hedland – moved ~220 Mt of freight1,2 – chartered over 1,710 vessels2 – handled hazardous materials • We drive the continuous impro
Slide 11: Revenue enhancement
Revenue enhancement Productivity We deliver a competitive revenue line For personal use only • Optimise product placement to customers Indexation created price transparency in iron ore.. through deep technical understanding of (US$/dmt1,2) 200 – our customer’s operations 150 – the value of our produ
Slide 12: Resource maximisation
Resource maximisation Productivity Driving value maximisation of our Tier 1 resource base For personal use only • We translate our customer needs into clear actions for our operations, to enable optimisation of mine planning… • … and debottlenecking of the supply chain for end-to-end efficiency (min
Slide 13: Cost reduction
Cost reduction Productivity We maximise Group returns by minimising our cost base For personal use only • Capital is allocated to the highest return Superior working capital management options in our portfolio (inventory/total revenue2) 0.13 – no ownership of vessels1 0.11 – trading of third party p
Slide 14: Continuous improvement
Continuous improvement Productivity Building on our achievements For personal use only • In a highly competitive and cyclical industry, Marketing contributes to business productivity1 continuous improvement is essential (cumulative contribution to free cash flow, US$ million) • We are ‘hard-wired’ t
Slide 15: Strategic insight about commodity markets
Portfolio Portfolio Strategic insight about commodity markets For personal use only • We leverage our global footprint and diverse knowledge base to inform our outlook on commodity markets • Our holistic approach to analysis ensures integrated views across commodities – global and regional economic
Slide 16: Creating value through marketing excellence
Creating value through marketing excellence For personal use only Sustainability Marketing Productivity Value Drivers Portfolio Our people, culture and highly centralised model Arnoud Balhuizen, President Marketing, 14 October 2015 Slide 13
Slide 17: Case studies
For personal use only Case studies
Slide 18: Case Study: RightShip
Case Study: RightShip Sustainability Setting the standard for vessel safety For personal use only • Prior to 2001, there was no visibility of vessel Hay Point Coal Terminal performance based on a common set of vetting standards • BHP Billiton led efforts with key industry peers in October 2001 to fo
Slide 19: Case Study: Metallurgical coal
Case Study: Metallurgical coal Productivity Growing the high-value tonnes For personal use only • The coal market comprises multiple product PMV1 volume placement FY14 vs FY15 qualities, each with its own intrinsic value to (share of customer purchases, %) our customers 100 • Our product placement s
Slide 20: Case Study: Copper
Case Study: Copper Productivity Optimising value-in-use based on customer requirements For personal use only • The value of Escondida’s concentrate to Delivering premium prices for Escondida concentrate customers depends on individual smelter (Escondida TCRC premium or discount at various smelters1)
Slide 21: Case Study: US condensate
Case Study: US condensate Productivity Creating market access For personal use only • Processed condensate is distilled to remove Eagle Ford condensate export uplift light hydrocarbons, differentiating it from US (US$/bbl1) non-exportable ‘crude oil’ • Working with regulators, BHP Billiton was the 8
Slide 22: Case Study: Iron Ore
Case Study: Iron Ore Productivity Debottlenecking the port For personal use only • Our operations at Port Hedland are a critical WAIO direct to ship loading link in our Western Australia Iron Ore (WAIO) (% of inflow loaded direct to vessels without yard stacking) supply chain 50 • Marketing has work
Slide 23: Case Study: Freight
Case Study: Freight Productivity A competitive cost advantage For personal use only • We are a significant player in global freight Freight book for Iron Ore shipments (% of methodology) – ~7% of world seaborne dry bulk volumes 100 – chartered over 1,710 vessels1 in FY15 80 45 40 60 • Based on our d
Slide 24: Case Study: Portfolio
Case Study: Portfolio Portfolio Understanding future commodity trends For personal use only • We have exposure to bulk commodities, Copper demand analysis – driver tree metals and energy markets across our diverse portfolio China Power Distribution Incremental Demand infrastructure cable length F GD
Slide 25: For personal use only
cdl bhpbilliton resourcing the future