Slide 1: Third Quarter Results
THIRD QUARTER RESULTS 1 May 2002 Chris Lynch Chief Financial Officer Charles Goodyear Executive Director & Chief Development Officer BHP Billiton Third Quarter Results presentation is (a) provided for the information of shareholders and does not constitute an invitation or inducement to such persons
Slide 2: Highlights – quarter ended 31 March 2002
Highlights – quarter ended 31 March 2002 • Sound quarterly result in the face of difficult market conditions • Turnover US$4.3 billion, EBITDA US$1.2 billion, attributable profit US$406 million • Financial year to date turnover US$13.2 billion, EBITDA US$3.7 billion, attributable profit US$1.6 billi
Slide 3: Results highlights - excluding exceptionals
Results highlights - excluding exceptionals Quarter Ended March Nine Mths Ended March (US$M) 2002 2001 2002 2001 Turnover* 4,282 4,674 13,176 14,070 EBITDA* 1,184 1,397 3,698 4,077 EBIT* 761 970 2,412 2,840 Attributable profit 406 604 1,604 1,762 EPS (US cents) 6.7 10.1 26.6 29.7 EBITDA interest cov
Slide 4: EBIT by CSG - excluding exceptionals
EBIT by CSG - excluding exceptionals Quarter Ended March Nine Mths Ended March (US$M) 2002 2001 2002 2001 Aluminium 133 135 324 353 Base Metals 52 117 120 370 Carbon Steel Materials 266 241 831 663 Stainless Steel Materials 12 - (24) 61 Energy Coal 112 109 462 266 Explor’n, Tech & New Business 43 12
Slide 5: EBIT analysis
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 March 01 US$M 1,000 970 761 800 (180) 600 400 200 0 Quarter Prices Inflation Price Exch Acquisitions Expln Costs Volume Sold Other Quarter ended impact on linked rates & new ops ended March costs costs operations (incl BHP March 2001 Steel)
Slide 6: Impact of major commodity price changes on EBIT
Impact of major commodity price changes on EBIT Quarter ended 31 March 02 v quarter ended 31 March 01 US$M Met 100 Coal Energy 51 Coal 50 29 0 Others Chrome -50 (5) (7) Nickel Diamonds (16) (34) Aluminium -100 (52) -150 Petroleum (146) Excludes impact of price linked costs, which had a favourable im
Slide 7: EBIT analysis
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 March 01 US$M 1,000 970 70 20 15 55 (10) (30) 761 800 (180) (60) (40) (49) 600 400 200 0 Quarter Prices Inflation Price Exch Acquisitions Expln Costs Volume Sold Other Quarter ended impact on linked rates & new ops ended March costs costs op
Slide 8: Net interest, taxation & attributable profit
Net interest, taxation & attributable profit Excluding exceptionals Quarter Ended March Nine Mths Ended March (US$M) 2002 2001 2002 2001 EBIT 761 970 2,412 2,840 Net interest expense (77) (165) (348) (463) Exchange impact on debt (22) 59 220 154 Profit before tax 662 864 2,284 2,531 Tax expense (245
Slide 9: Issues for June 2002 quarter
Issues for June 2002 quarter • Economic conditions remain difficult – little sign of increases in demand for many of our products • Cuts to South Africa export energy coal production reflecting weakening European market • Tax rate for June quarter expected to be in line with year to date figure of 3
Slide 10: Issues for June 2002 quarter (continued) – net profit sensitivities
Issues for June 2002 quarter (continued) Key net profit sensitivities Approximate impact on forecast June quarter net profit after tax of changes of: (US$M) US$1/bbl on oil price 11 US$50/t on aluminium price 8 USc1/lb on copper price 3 USc10/lb on nickel price 3 US$1/t on energy coal price 7 Third
Slide 11: Issues for June 2002 quarter (continued) – currency sensitivities
Issues for June 2002 quarter (continued) Key net profit sensitivities Approximate impact on forecast June quarter net profit after tax of changes of: (US$M) Australian dollar (USc1/A$) Operations (net of hedging)(1) 12 Net monetary liabilities(2) 24 South African Rand (0.2 Rand/US$) Operations(1) 3
Slide 12: Growth – New projects committed since January 2002
Growth – New projects committed since January 2002 Zamzama gas Mad Dog oil & gas and GoM pipelines Hillside 3 aluminium Colombian coal acquisition Brownfield Greenfield Mining Area C, Port expansion & Yandi Third Quarter Results Slide 12 1 May 2002 lump
Slide 13: Steel Demerger - Plc bonus issue calculation
Steel Demerger - Plc bonus issue calculation • Assumptions for the purposes of this calculation: – BHP Steel VWAP*: A$3.45 per share – Shares distributed to Ltd shareholders on a 1 for 5 basis – Plc VWAP*: 400p – £/A$: 2.71 • Ltd shareholders receive value of A$0.69 per Ltd share (A$3.45/5) • Plc sh
Slide 14: Third Quarter Results Slide 14 1 May 2002
Third Quarter Results Slide 14 1 May 2002
Slide 15: Backup Slides
THIRD QUARTER RESULTS BACKUP SLIDES
Slide 16: EBIT analysis – quarter ended March v December 2001
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 Dec 01 US$M 900 25 10 5 730 30 26 761 10 (10) (5) (10) (50) 600 300 0 Quarter Prices Inflation Price Exch Other Expln Costs Acquisitions Sold Volume Quarter ended impact on linked rates & new ops ended December costs costs operations (incl B
Slide 17: A deep inventory of growth projects
A deep inventory of growth projects BROWNFIELD Mozal Mozal 22 Bream Gas Yabulu Yabulu R’thorpe R’thorpe Mount Mount Pipeline Intercor Arthur Arthur North North Esc’da Esc’da Escondida Zamzama FFD CdC CdC Norte Norte Escondida Exp’n Dendrobium Phase Phase IV IV Exp’n Hillside Hillside 33 San San Mini
Slide 18: Third quarter results under Australian GAAP
Third quarter results under Australian GAAP Quarter ended 31 March 2002 A$M US$M Revenue from ordinary activities 7,534 3,903 Profit from ordinary activities before tax 1,182 612 Tax expense (396) (205) Net profit 786 407 Outside equity interests in net profit (22) (11) Net profit attributable to me