Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (February 2009)
85 slides from Bhp's shareholder meeting presentation, Feb 24, 2009
Slide 1: Annual General Meeting
Annual General Meeting BHP Billiton Limited 27 November 2008
Slide 2: Don Argus, Chairman
Don Argus Chairman Annual General Meeting 27 November 2008
Slide 3: Disclaimer
Disclaimer By viewing this presentation you agree to be bound by the following conditions. The directors of BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton”) accept responsibility for the information contained in this presentation. Having taken all reasonable care to ensure that such is the
Slide 4: Disclaimer continued
Disclaimer continued No statement concerning expected cost savings, revenue benefits (and resulting incremental EBITDA) and EPS accretion in this presentation should be interpreted to mean that the future earnings per share of the enlarged BHP Billiton group for current and future financial years wi
Slide 5: Your Board
Your Board Don Argus Paul Anderson Alan Boeckmann John Buchanan Carlos Cordeiro David Crawford Gail de Planque David Jenkins Marius Kloppers David Morgan Jac Nasser Keith Rumble John Schubert
Slide 6: Mr M J Kloppers
ae bhpbilliton Mr M J Kloppers
Slide 7: Mr P M Anderson
ae bhpbilliton Mr P M Anderson
Slide 8: Dr J G S Buchanan
ae bhpbilliton Dr J G S Buchanan
Slide 9: Mr C A S Cordeiro
ae bhpbilliton Mr C A S Cordeiro
Slide 10: Mr D A Crawford
ae bhpbilliton Mr D A Crawford
Slide 11: The Hon E G de Planque
ae bhpbilliton The Hon E G de Planque
Slide 12: Dr DAL Jenkins
ae bhpbilliton Dr DAL Jenkins
Slide 13: Mr J Nasser
ae bhpbilliton Mr J Nasser
Slide 14: Dr J M Schubert
ae bhpbilliton Dr J M Schubert
Slide 15: Mr A L Boeckmann
ae bhpbilliton Mr A L Boeckmann
Slide 16: Dr D R Morgan
ae bhpbilliton Dr D R Morgan
Slide 17: Mr K C Rumble
ae bhpbilliton Mr K C Rumble
Slide 18: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 19: Led by an experienced senior management team
Led by an experienced senior management team Marius Kloppers Chief Executive Officer Alberto Calderon Chief Commercial Officer Marcus Randolph Chief Executive Ferrous and Coal Group Management Committee Alex Vanselow Chief Financial Officer Karen Wood Chief People Officer Michael Yeager Chief Execut
Slide 20: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 21: Agenda
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Questions
Slide 22: FY2008 financial snapshot
FY2008 financial snapshot Attributable Profit(a) (US$bn) FY2007 FY2008 12% Underlying EBIT (US$bn) FY2007 FY2008 a) Attributable profit: Excluding exceptional items.
Slide 23: Strong return on capital employed and reduced gearing
Strong return on capital employed and reduced gearing Capital and exploration expenditure (US$bn) Acquisitions (LHS) Capitalised Exploration (LHS) Capex (LHS) ROCE (RHS) ROCE (%) FY2004 FY2005 FY2006 FY2007 FY2008 Gearing (%) FY2007 FY2008 Note: FY2004 and FY2005 are shown on the basis of UKGAAP. Su
Slide 24: Delivering superior returns to shareholders
Delivering superior returns to shareholders Ordinary dividends per share (US cents per share) H1 H2 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Note: Two interim dividends were paid in FY2004.
Slide 25: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 26: Recent declines in commodity prices – Copper
Recent declines in commodity prices – Copper LME Copper Cash Price (US$/t) 10,000 8,000 6,000 4,000 2,000 Oct-07 Dec-07 Feb-08 Apr-08 May-08 Jul-08 Sep-08 Nov-08 LME copper cash price performance 12 month to 21-Oct-08 (-43%) 1 month to 21-Nov-08 (-23%) Source: London Metal Exchange (LME).
Slide 27: Market capitalisation and debt levels
Market capitalisation and debt levels BHP Billiton and Rio Tinto combined market capitalisation and net debt, post a US$30bn buy back (US$bn)(a) As at 05-Feb-2008 Market Capitalisation Net Debt As at 21-Nov-2008 Market Capitalisation Net Debt a) Combined market capitalisation represents the addition
Slide 28: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 29: Agenda
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Questions
Slide 30: Marius Kloppers, Chief Executive Officer
Marius Kloppers Chief Executive Officer Annual General Meeting 27 November 2008
Slide 31: Our assets
dl bhpbilliton Our assets
Slide 32: Production highlights
Production highlights Stronger annual production in 13 of our commodities Petroleum Copper Iron Ore Manganese Ore Manganese Alloy Alumina Molybdenum Crude Oil and Condensate Uranium Lead Zinc Silver Diamonds Record production in 7 commodities
Slide 33: Total Recordable Injury Frequency Rate (TRIFR) – FY2008
Total Recordable Injury Frequency Rate (TRIFR) – FY2008 (TRIFR) TRIFR—Monthly TRIFR—3 Month Moving Average TRIFR—12 Month Moving Average Sep-07 Dec-07 Mar-08 Jun-08
Slide 34: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 35: EBIT Margin relative to peers
EBIT Margin relative to peers (%) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 BHP Billiton Peers Source: BHP Billiton and peer companies’ annual and half year reports. Peers are Rio Tinto, Vale, Xstrata and Anglo American. FY2005 to FY2008 are shown on the basis of IFRS. Prior periods are calculated u
Slide 36: Net Gearing relative to peers
Net Gearing relative to peers (%) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 BHP Billiton Peers Source: BHP Billiton and peer companies’ annual and half year reports. Peers are Rio Tinto, Vale, Xstrata and Anglo American. FY2005 to FY2008 are shown on the basis of IFRS. Prior periods are calculated u
Slide 37: Spence and Western Australia Iron Ore
Spence and Western Australia Iron Ore Spence, Chile Iron Ore, Western Australia
Slide 38: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 39: Don Argus, Chairman
Don Argus Chairman Annual General Meeting 27 November 2008
Slide 40: Climate change
Climate change Our objective is to continue to meet global demand for resources while helping to address the challenges of safety, climate change and the environment generally West Cliff Colliery, NSW, Australia
Slide 41: Projected Primary Energy Demand – IEA mid case scenario
Projected Primary Energy Demand – International Energy Association mid case scenario 2006 Oil Coal Gas Nuclear Renewables 2006 6% 21% 13% 34% 26% World Primary Energy Demand = 11,730 Mtoe 2030 Oil Coal Gas Nuclear Renewables 30% 23% 22% 7% 13% World Primary Energy Demand = 15,483 Mtoe Source: Intern
Slide 42: Future growth of nuclear power
Future growth of nuclear power Existing operational power plants and future development of nuclear power reactors(a),(b) Operational (power plants) – 439 reactors(b) Under construction (reactors) – 36 reactors(b) Planned (reactors) – > 95 reactors(b) Proposed (reactors) – > 230 reactors(b) Notes: a)
Slide 43: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 44: Our communities
Our communities Nickel West, Australia Hillside, South Africa
Slide 45: Agenda
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Questions
Slide 46: How to ask a question
How to ask a question Go to the question point Show your green or yellow admission card Give the attendant your name Wait until you have been introduced to the meeting
Slide 47: Jane McAloon, Group Company Secretary
Jane McAloon Group Company Secretary Annual General Meeting 27 November 2008
Slide 48: How to vote
How to vote FOR 70% AGAINST 30% Assumes total holding of 1000 shares
Slide 49: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting – 27 November 2008
Slide 50: Agenda
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Questions
Slide 51: Agenda – Receive Financial Statements
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Receive Financial Statements Questions
Slide 52: Voting paper
Voting paper BHP Billiton Plc BHP Billiton Limited ITEM NUMBER FOR AGAINST FOR AGAINST 1&2 To receive the Financial Statements and Reports 3-22 To elect Directors: Paul Anderson, Don Argus, John Buchanan, David Crawford, Jacques Nasser, John Schubert, Alan Boeckmann, Stephen Mayne, David Morgan, Kei
Slide 53: Agenda – Election of Directors
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Election of Directors Questions
Slide 54: Mr P M Anderson
ae bhpbilliton Mr P M Anderson
Slide 55: Mr D R Argus
ae bhpbilliton Mr DR Argus
Slide 56: Dr J G S Buchanan
ae bhpbilliton Dr J G S Buchanan
Slide 57: Mr D A Crawford
ae bhpbilliton Mr D A Crawford
Slide 58: Mr J Nasser
ae bhpbilliton Mr J Nasser
Slide 59: Dr J M Schubert
ae bhpbilliton Dr J M Schubert
Slide 60: Mr A L Boeckmann
ae bhpbilliton Mr A L Boeckmann
Slide 61: Agenda – Election of Mr S Mayne
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Election of Mr S Mayne Questions
Slide 62: Dr D R Morgan
ae bhpbilliton Dr D R Morgan
Slide 63: Mr K C Rumble
ae bhpbilliton Mr K C Rumble 4
Slide 64: Agenda – Reappointment of Auditor
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Reappointment of Auditor Questions
Slide 65: Agenda – Authority to Allot Shares
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Authority to Allot Shares Questions
Slide 66: Authorised and Issued Share Capital
Authorised and Issued Share Capital BHP Billiton Plc (million shares) FY2006 FY2007 FY2008 3,500 3,000 2,500 2,000 1,500 1,000 Requested Limit at AGMs up to Authorised Capital Issued Share Capital
Slide 67: Agenda – Disapplication of pre-emption rights
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Disapplication of pre-emption rights Questions
Slide 68: Agenda – Authority to buy back shares
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Authority to buy back shares Questions
Slide 69: BHP Billiton – Buy Back history
BHP Billiton – Buy Back history Cumulative Share Buybacks(a) (US$ million) (million shares) BHP Billiton Ltd BHP Billiton Plc Cumulative number of shares repurchased 14,000 12,000 10,000 8,000 6,000 4,000 2,000 FY2005 FY2006 FY2007 FY2008 From FY2005, 680 million shares repurchased, representing 11.
Slide 70: Agenda – Cancellation of BHP Billiton Plc shares
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Cancellation of BHP Billiton Plc shares held by BHP Billiton Limited Questions
Slide 71: Agenda – Remuneration Report
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Remuneration Report Questions
Slide 72: CEO pay/performance comparison
CEO pay/performance comparison Total Shareholder Return Relative to CEO Remuneration over Five Years (Value of 1,000 BHP Billiton Ltd shares in A$) (Remuneration received in US$’000) 60,000 50,000 40,000 30,000 20,000 10,000 25,000 20,000 10,000 5,000 FY2004 FY2005 FY2006 FY2007 FY2008 Value at 30 J
Slide 73: BHP Billiton CEO Remuneration
BHP Billiton CEO Remuneration Fixed Remuneration US$ Base Salary $1,979,500 Retirement Benefits $791,800 FIXED 29% Short Term Incentives US$ Target Cash Award $1,385,650 Deferred Shares(a) $1,385,650 (Vest in 2011) Long Term Incentives No. of Shares AT RISK Performance Shares 373,855(b) (Vest in 201
Slide 74: Agenda – Approval of Remuneration Report
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Approval of Remuneration Report Questions
Slide 75: Agenda – Amendments to Group Incentive Scheme Rules
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Amendments to the Rules of the Group Incentive Scheme Questions
Slide 76: Amendments to Rules of Group Incentive Scheme
Amendments to Rules of Group Incentive Scheme Current Rules Target Bonus: 140% of Base Salary Maximum Bonus: 1.5 x Target Proposed Rules Target Bonus: 160% of Base Salary Maximum Bonus: 2 x Target
Slide 77: Agenda – Grant of Awards to Mr M J Kloppers
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Grant of Awards to Mr M J Kloppers Questions
Slide 78: Five year required out-performance of peers
Five year required out-performance of peers Total Shareholder Return (TSR) performance (%) Year 0 Year 1 Year Year 3 Year 4 Year 5 BHP Billiton TSR Peer Median TSR 30.7% 5.5%
Slide 79: Grants under the GIS and the LTIP
Grants under the GIS and the LTIP Group Incentive Scheme: 49,454 Deferred Shares(a) or 197,817 Options(a) or a combination of both Long Term Incentive Plan: 373,855 Performance Shares(b) a) Figures are estimates, based on FY2008 average share price and exchange rate. Actual number will be dependent
Slide 80: Agenda – Non-executive Directors' maximum aggregate fees
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Non-executive Directors’ maximum aggregate fees Questions
Slide 81: Agenda – Articles of Association and Constitution
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Articles of Association and Constitution Questions
Slide 82: Agenda
Agenda Chairman’s Address CEO’s Address Chairman’s Address Items of Business Questions
Slide 83: BHP Billiton Limited – Annual General Meeting November 08
BHP Billiton Limited – Annual General Meeting 27 November 2008
Slide 84: Remember to place the voting papers in the ballot box
Remember to place the voting papers in the ballot box as you leave Thank you
Slide 85: Resourcing the future
cdl bhpbilliton esourcing the future