Bhp Group Ltd · ASX:BHP
Bhp — Bank of America Global Metals, Mining & Steel Conference 2024
18 slides from Bhp's conference presentation, May 14, 2024
Slide 1: Bank of America Global Metals, Mining & Steel Conference 2024
Bank of America Global Metals, Mining & Steel Conference 2024 Mike Henry Chief Executive Officer Western Australia Iron Ore
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSIT UTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. Forward-looking statements This presentation may contain forward-looking statements, whi
Slide 3: Successfully executing our strategy
Successfully executing our strategy Delivering value and returns, shaping BHP for the future • Sanctioned Jansen Stages 1 & 2 • Acquired OZ Minerals Winning • Petroleum merger with Woodside portfolio • Unified the dual listed structure • Rationalised metallurgical coal portfolio • Consistently highe
Slide 4: Operational excellence in action: WAIO
Operational excellence in action: WAIO Lowest cost producer, delivering >US$10/t greater free cash flow than competitors Strategic actions Low operating costs and high realised prices lead to superior FCF generation2,6 (FCF, US$/dmt) (C1 unit costs, US$/wmt) • Capital efficient growth from 240 Mtpa
Slide 5: Jansen provides a platform for high value growth
Jansen provides a platform for high value growth Jansen Stages 1 & 2 position BHP to become a major potash producer, with multiple attractive growth options beyond Stages 1 & 2 competitively positioned against peers (Average asset age in 2025) Attractive, future facing commodity 80 Note: Bubble size
Slide 6: Progressing our copper growth
Progressing our copper growth BHP is well positioned in a world where demand for copper is expected to grow strongly BHP has a number of structural advantages… … including a pipeline of multiple organic copper options under study 14 Illustrative timeline FY24 FY25 FY26 FY27 FY28 FY29 FY30+ Largest c
Slide 7: Proposal for Anglo American
Proposal for Anglo American An all-share combination to benefit both sets of shareholders Creates value from the combination of two high quality businesses Delivers immediate and ongoing value for Anglo American shareholders Combination facilitates outcomes challenging for an independent Anglo Ameri
Slide 8: Value creation from combining two quality businesses
Value creation from combining two quality businesses Confident in the delivery of incremental value from combined asset base and expanded growth pipeline Complementary asset base… Capacity to support significant growth • Long life, low cost, high margin, cash generative portfolio today • Combines st
Slide 9: Value creation from combining two quality businesses
Value creation from combining two quality businesses Potential for material synergies as we leverage the best of both organisations • Demonstrated consistency in operational excellence Assets in close proximity in key operating regions Benefits from ‒ Best delivery of production guidance vs. competi
Slide 10: BHP positioned to deliver shareholder value into the future
BHP positioned to deliver shareholder value into the future Operational excellence and exposure to the right commodities Portfolio Copper Iron ore Metallurgical coal Potash Nickel BHP’s portfolio and operating excellence generates superior margins…21 … delivering consistently strong net operating
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Slide 12: Footnotes
Footnotes 1. Slide 3: Group Underlying EBITDA margin (excluding third party products). Competitor data compiled from publicly available information (e.g. company reports). Competitors include: Anglo American, Glencore (exc. Marketing), Rio Tinto, Vale. 2. Slide 3 and 4: WAIO C1 unit cost: excludes r
Slide 13: Appendix
BHP Appendix
Slide 14: Proposal for Anglo American
Proposal for Anglo American An all-share combination to benefit both sets of shareholders We believe this is a compelling option for Anglo American… What do shareholders receive at completion? Why? Direct shareholdings, all at the same time, of: • Delivers certain and immediate value to Anglo Americ
Slide 15: A compelling and unique opportunity
A compelling and unique opportunity Combining BHP’s and Anglo American’s complementary positions • UK/Australia: Experience from DLC unification and • Delivers certainty and immediate value to Petroleum merger Anglo American shareholders Benefits to both • Ongoing exposure to highly complementary Fl
Slide 16: UK/Australia flowback expected to be manageable
UK/Australia flowback expected to be manageable Experience from Dual Listed Company unification and BHP Petroleum-Woodside merger • BHP and Anglo American are both listed on the London and Johannesburg Almost 50% active, >20% index funds (BHP shareholders by style type9) exchanges, in addition to BH
Slide 17: UK/South Africa flowback also expected to be manageable
UK/South Africa flowback also expected to be manageable Attractive demand in a sizeable and liquid South African financial market • Over ⅓ of Anglo American’s market value is represented by market AAL shareholders value in its interests in Anglo Platinum and Kumba Among Top 50, ~15% held by index fu
Slide 18: Appendix footnotes
Appendix footnotes 1. Slide 14: Pursuant to Rule 2.5 of the City Code on Takeovers and Mergers (the “Code”), BHP reserves the right to vary the form and/or mix of the offer consideration and vary the transaction structure (including in circumstances where Anglo American’s percentage holding of Anglo
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