Slide 1: Half year results
December 2024 Half year results Western Australia Iron Ore
Slide 2: Disclaimer
Disclaimer The information in this presentation is current as at 18 February 2025. It is in summary form and is not necessarily complete. It should be read together with the BHP Results for the half year ended 31 December 2024. Forward-looking statements This presentation contains forward-looking st
Slide 3: Performance summary
Performance summary Half year ended 31 December 2024 Mike Henry Chief Executive Officer Escondida
Slide 4: A winning strategy
A winning strategy A focused portfolio, operational excellence and a distinctive approach to social value provide an enduring competitive advantage BHP has large, high-quality, long-life assets… …in commodities positively leveraged to global megatrends Jansen GHG Spence WAIO Population Urbanisation
Slide 5: A strong start to FY25
A strong start to FY25 Continued operational excellence delivers copper growth and solid financial results On track for FY25 production guidance at all assets; Copper SA revised 10% copper production growth YoY in HY25; 19% growth across FY22-245 Cost control delivers sector leading margins, strong
Slide 6: Driving improved safety
Driving improved safety Nothing is more important at BHP than improving the safety and wellbeing of our workforce Performance: High-potential injury frequency (HPIF) (Frequency rate) • No high-potential injuries in Q2 FY25 0.40 • ~33% reduction in H1 FY25 HPIF YoY 0.35 • ~54% reduction in H1 FY25 HP
Slide 7: Financial performance
Financial performance Vandita Pant Chief Financial Officer BMA
Slide 8: A strong set of results
Financial performance A strong set of results Summary financials Income statement (US$ bn, Underlying) • Underlying EBITDA of US$12.4 bn 30 ‒ Underlying EBITDA margin of 51.1% 25.2 ‒ 20.4% ROCE 25 Taxes and royalties: US$4.8 bn • Adjusted effective tax rate of 36.4%6 20 ‒ Adjusted effective tax rate
Slide 9: Group earnings waterfall
Group earnings waterfall Strong operational performance offset by weaker prices Earnings variance and drivers (US$ bn) Year on year comparison Current year reconciliation 20 External US$(1.8) bn Controllable US$0.3 bn HY25 income statement impacts 15 13.9 1.1 0.4 12.4 12.1 (0.6) (0.2) (1.9) (0.3) 10
Slide 10: Segment performance
Segment performance Iron ore Production: 130.9 Mt BHP Operating System (BOS) EBITDA margin: 63% and our approach to operational excellence is delivering Copper ✓ On track to hit production guidance at all assets. Production: 987 kt BMA and NSWEC on track to deliver production in EBITDA margin: 5
Slide 11: Delivering consistent cash flows
Delivering consistent cash flows Sector leading cash flow generation allows for allocation to both growth and returns Our sector leading margins and consistent cash flow generation… Consistent and strong net operating cash flows16 (Net operating cash flow, US$ bn) (Underlying EBITDA margin, %) • Str
Slide 12: Samarco Brazilian settlement agreement
Samarco Brazilian settlement agreement Comprehensive agreement with Public Authorities in Brazil with a total financial value of R$170 bn on a 100% basis17 Includes (on a 100% basis): BHP outflows related to Samarco obligations FY25-27 (US$ bn, on a 50% basis)18 R$38 bn 2.0 Spent on remediation and
Slide 13: A more resilient business with a strong balance sheet
A more resilient business with a strong balance sheet Our leverage and gearing remains low thanks to disciplined application of the Capital Allocation Framework Since FY22 revision of net debt target Net debt and net debt target range BHP has low leverage vs. the sector19 range: (Net debt, US$ bn) (
Slide 14: Higher capital spend to unlock organic growth
Higher capital spend to unlock organic growth Increasing growth spend on future facing commodities with continued flexibility to adjust spend for value Future-facing commodities form majority of growth spend20 (US$ bn, nominal) (Capital in future-facing commodities, %) FFC major capital Copper: Esco
Slide 15: Disciplined capital allocation enables our strategy
Disciplined capital allocation enables our strategy Generates healthy returns for shareholders and enables more investment in attractive projects The Capital Allocation Framework sits at the core of BHP Allocation of capital since its introduction in FY16 Balance Portfolio sheet Operating Capital pr
Slide 16: Business update
Business update Half year ended 31 December 2024 Mike Henry Chief Executive Officer Copper SA
Slide 17: Commodities positively leveraged to global megatrends
Commodities positively leveraged to global megatrends Population growth, urbanisation, higher living standards and the energy transition create opportunities for commodities long-term Our portfolio has exposure to forecast megatrend growth from today to 2050 (Indexed growth: 100 = 2021 level) Commod
Slide 18: Premium assets in the most attractive commodities
Premium assets in the most attractive commodities A simple portfolio of assets with strong growth potential underpinned by distinctive sources of competitive advantage Lowest cost Premium priced product Iron ore Steelmaking coal Lowest cost producer globally21 Leading producer of higher-quality coal
Slide 19: WAIO: the world's leading iron ore business
WAIO: the world’s leading iron ore business Stronger free cash flow generation than peers, helping to drive shareholder returns and growth Consistent superior free cash flow (FCF) generation (Iron ore FCF, US$/dmt)24 (C1 unit cost US$/t) Operational excellence coupled with structural advantages 120
Slide 20: Copper: a compelling pipeline of organic growth options
Copper: a compelling pipeline of organic growth options Unlocking the world’s largest copper endowment with an aspirational pathway towards over 2 Mtpa of attributable copper production25 Chilean copper projects have potential to grow production26 Copper SA growth pathway capturing US$1.5 bn in pote
Slide 21: Vicuña: emerging copper district with world class potential
Vicuña: emerging copper district with world class potential Transaction close was an important step towards the development of both the Filo del Sol and Josemaria projects Transaction closed on 15 January 2025 • A long-term strategic alliance between BHP and Lundin Mining • 50/50 JV structure enable
Slide 22: Jansen: a top tier asset set for strong cash flow
Jansen: a top tier asset set for strong cash flow Designed to be a first quartile cost potash producer that is expected to be resilient through the cycle Potash is an attractive future-facing commodity • Exposure to global megatrends • Leverage to population growth and higher living standards • Supp
Slide 23: Continue to be a leader on project delivery
Continue to be a leader on project delivery We have consistently delivered better outcomes on our projects vs. our competitors BHP Industry average29 Disciplined and differentiated approach Global experience Safety (TRIF) 1.4 2.8 Connected global Projects Centre of Excellence (PCoE) brings experienc
Slide 24: Attractive internal options to grow in copper for value
Attractive internal options to grow in copper for value Our organic projects benchmark well vs. current market valuations of listed copper producers Capital intensity of Chilean growth vs. listed copper producer valuations (US$k/tpa CuEq production) Average ~US$50k/t Project Organic growth is attrac
Slide 25: Investment proposition
Investment proposition Attractive returns underpinned by operational excellence, capital allocation discipline and social value commitment Operational Disciplined Value and returns excellence capital allocation World class Differentiated Agile decision Strong Capital A framework Commitment Increasin
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Slide 27: Footnotes
Footnotes 1. Slide 4: BHP Underlying EBITDA margin (excluding third party products). Peer data compiled from publicly available information (e.g. company reports). Peers include: Anglo American, Glencore (exc. Marketing), Rio Tinto, Vale. 2. Slide 4: See slide 11 demonstrating consistent net operati
Slide 28: Appendix
BHP Appendix
Slide 29: Capital spend by commodity
Capital spend by commodity Increasing growth spend with continued flexibility to adjust spend for value Future-facing commodities form majority of growth spend (US$ bn, nominal) 12.5 10.0 On average medium-term spend is split across: – Maintenance, improvement and decarb capital of ~US$4.7 bn p.a. 7
Slide 30: Return on Capital Employed
Return on Capital Employed ROCE of 20.4% for HY25 ROCE ROCE by asset (%) (%) 55 70 50 60 45 40 50 35 40 30 Antamina1 25 30 Escondida 20 WAIO 20 15 10 Pampa 10 Norte Copper 5 BMA South Australia 0 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 0 10 20 30 40 50 Average capital employed Half year results (total)
Slide 31: Samarco delivering on Brazilian Agreement
Samarco delivering on Brazilian Agreement First instalment paid, new compensation systems being initiated Obligation • To be paid by Samarco in 20 instalments, weighted to early years to Pay • R$5 bn paid December 2024 • Next instalment (R$6 bn) to be paid June 2025 R$100 bn • 12 eligible municipali
Slide 32: Understanding the Samarco Brazilian agreement
Understanding the Samarco Brazilian agreement The settlement agreement addresses remaining obligations under the Framework Agreement, but residual risks remain Agreement resolves and settles: Disclosed previously as contingent liabilities, settlement does not resolve: • TTAC Framework Agreement obli
Slide 33: Social value highlights
Social value highlights Driving shareholder value through access to resource, talent and partners - and shared prosperity for people and planet Our social value framework Decarbonisation Healthy Indigenous Safe, inclusive Thriving, Responsible environment partnerships and future ready empowered supp
Slide 34: Safety and social value indicators
Safety and social value indicators We continue to emphasise the safety culture that must be present every day to eliminate fatalities and serious injuries at BHP Key safety indicators1 Target/Goal HY25 FY24 HY24 Fatalities Zero work-related fatalities 0 1 0 High-potential injury (HPI) frequency2 Yea
Slide 35: Balance sheet
Balance sheet Net debt of US$11.8 bn and gearing of 19.2% Movements in net debt Debt maturity profile2 (US$ bn) (US$ bn) 16 8 0.3 11.8 6 12 1.1 3.9 9.1 (2.6) 4 8 2 4 0 H2 FY25 FY26 FY27 FY28 FY29 FY30 FY31 - Post FY41 0 FY40 FY24 Free cash Dividends Dividends Other H1 FY25 US$ Euro Sterling Bank 1 f
Slide 36: BHP guidance
BHP guidance Group FY25e Capital and exploration expenditure (US$ bn) ~10 Cash basis. Split by category: Maintenance and decarbonisation capital 3.0 Includes non-discretionary spend for deferred development and production stripping; risk reduction, compliance and asset integrity; and decarbonisation
Slide 37: BHP guidance (continued)
BHP guidance (continued) Copper FY25e Medium-term Copper production (kt) 1,845 – 2,045 Escondida: 1,180 – 1,300 kt; Spence: 240 – 270 kt; Copper South Australia: 300 – 325 kt; Antamina: 115 – 135 kt (zinc 90 – 110 kt). Escondida Copper production (kt, 100% basis) 1,180 – 1,300 900 – 1,000 Medium-ter
Slide 38: Key Underlying EBITDA sensitivities
Key Underlying EBITDA sensitivities Approximate impact1 on HY25 Underlying EBITDA of changes of: US$ m US$1/t on iron ore price2 116 US$1/t on steelmaking coal price 5 US¢1/lb on copper price2 20 US$1/t on energy coal price2,3 7 AUD (US¢1/A$) operations4 83 CLP (US¢0.10/CLP) operations4 15 1. EBITDA
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