Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (August 2008)
31 slides from Bhp's merger presentation, Aug 6, 2008
Slide 1: BHP Billiton: Resourcing the Future
BHP Billiton: Resourcing the Future UBS Sharing Insights - Resources Marius Kloppers, Chief Executive Officer 12 June 2008
Slide 2: Disclaimer
Disclaimer This document has been prepared by BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") and comprises the written materials/slides for a presentation concerning BHP Billiton's offers for Rio Tinto Limited and Rio Tinto plc (“Rio Tinto”). By reviewing/attending this presentation you
Slide 3: 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
Slide 4: BHP Billiton: Resourcing the future
BHP Billiton: Resourcing the future • Today: The world’s leading diversified resources company • Our past: A proven track record • Our future: The outlook is exciting • The offer for Rio Tinto
Slide 5: A diversified global portfolio
With a diversified global portfolio Stainless Steel Materials #3 global nickel producer Iron Ore #3 global supplier of seaborne iron ore Manganese #1 global supplier of seaborne manganese ore Metallurgical Coal #1 global supplier of seaborne traded metallurgical coal Base Metals #3 global producer o
Slide 6: The world's largest diversified resources company
The world’s largest diversified resources company Sources: Bloomberg, Datastream. a) Rio Tinto undisturbed market cap as at 31-Oct-2007. Top 10 metals and mining companies (Market capitalisation as at 30-May-2008, US$bn) Vale China Shenhua Anglo American Xstrata Norilsk Nickel Freeport McMoRan Anglo
Slide 7: Led by an experienced senior management team
Led by an experienced senior management team Chairman and Chief Executive Officer Group Management Committee Notes: a) Andrew Mackenzie’s appointment to BHP Billiton was announced on 20-Nov-2007, he has not yet commenced his new role at BHP Billiton. He previously worked at Rio Tinto where he was Ch
Slide 8: Maintaining our commitment to our core strategy
Maintaining our commitment to our core strategy • Focus on Tier 1 assets that are large, low-cost and expandable • Focus on the extraction of upstream natural resources • Portfolio diversified by commodity, customer and geography reducing the volatility of cash flows • Maintenance of a deep diversif
Slide 9: Commitment to ethics, safety, environmental practice and community engagement
With an overriding commitment to ethics, safety, environmental practice and community engagement • Sustainable development is fundamental to our success • Our licence to operate depends on responsibly operating our business: – A track record of being valued by our communities will contribute to us b
Slide 10: Our past: A proven track record
Our past: A proven track record
Slide 11: A unique diversified portfolio balanced across high margin commodities
A unique diversified portfolio balanced across high margin commodities Underlying EBITDA (CY2007, 12 months, US$bn) Underlying EBITDA Margin (a) (CY2007, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Billiton’s half-year financial repo
Slide 12: Significant EPS and DPS growth delivered for shareholders
Significant EPS and DPS growth delivered for shareholders Earnings per share (a) (US$ per share) Note: (a) BHP Billiton’s EPS represents reported underlying EPS for the financial year ending 30-June. EPS in FY2002 excludes the results of BHP Billiton’s Steel business which was demerged in July 2002.
Slide 13: Creating considerable wealth for our shareholders
Creating considerable wealth for our shareholders Source: Bloomberg, Iress as at 30-May-2008. a) Dividends/distributions assumes that the dividends are reinvested in BHP Billiton Ltd. Includes the value of shares distributed in Bluescope Steel to BHP Billiton Ltd shareholders. A holder of 1,000 BHP
Slide 14: Our future: The outlook is exciting
Our future: The outlook is exciting
Slide 15: Chinese growth is driving global materials demand
Chinese growth is driving global materials demand China USA Other Notes: Seaborne iron ore demand based on import statistics – CRU data for 2007, IISI data for 1997. Energy consumption is all uses of coal, gas, oil and nuclear, expressed as millions tonnes of oil equivalent, 2007 data not yet availa
Slide 16: India – the journey has begun
India – the journey has begun GDP (US$ billion) BHP Billiton copper equivalent sales volume units (100=FY2002 sales to China) FY 2002 FY 2007 China India 1,000 China India Equity Basis 100% Basis Source: World Bank, Focus Economics, BHP Billiton. a) Note: Converted to copper equivalent units using B
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Slide 20: A deep diversified inventory of growth options
BHP Billiton has a deep diversified inventory of growth options, many of which are brown field expansions Boffa/Santou Refinery As at 2 May 2008 Proposed capital expenditure <$500m $501m-$2bn $2bn+ SSM Energy Coal D&SP Iron Ore Base Metals Petroleum Met Coal CSG Manganese Aluminium Execution Pyrenee
Slide 21: An attractive growth profile of significant scale
BHP Billiton has an attractive growth profile of significant scale 2,000 4,000 6,000 8,000 10,000 12,000 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 (Copper Equivalent Tonnes '000s) Production in copper equivalent tonnes Note: Copper equivalent units calculated using BHP Billiton estimates for product
Slide 22: The offer for Rio Tinto
The offer for Rio Tinto
Slide 23: Summary of the offer for Rio Tinto
Summary of the offer for Rio Tinto • BHP Billiton has made a pre-conditional offer for Rio Tinto, it will be capable of acceptance by shareholders following regulatory approvals and posting of offer documents • The offer is being made direct to the shareholders of Rio Tinto • Rio Tinto shareholders
Slide 24: Overlapping mineral basin positions. US$3.7bn of synergies
Overlapping mineral basin positions. US$3.7bn of synergies Selected existing BHP Billiton and Rio Tinto assets, projects and concessions.
Slide 25: 3.4:1 offer represents a 45% premium
3.4:1 offer represents a 45% premium Source: Datastream (as of 30-May-08). a) Exchange ratio assumes 100% BHP Billiton Ltd shares for each Rio Tinto Ltd share and BHP Billiton shares for each Rio Tinto plc share consisting of 80% BHP Billiton Plc shares and 20% BHP Billiton Ltd shares. b) Pre-approa
Slide 26: Conclusion
Conclusion • The core strategy remains unchanged • Focused on producing volumes from low cost assets • BHP Billiton on a standalone basis has a bright future • Combining with Rio Tinto can generate substantial additional value for shareholders – we are a natural fit • In addition to the synergies, c
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Slide 29: Appendix: Marius Kloppers Profile
Appendix: Marius Kloppers Profile Marius Kloppers – Chief Executive Officer Age: Professional qualifications: • BE (Chem), MBA, PhD (Materials Science) • Bachelor of Chemical Engineering (University of Pretoria (South Africa)) • PhD from Massachusetts Institute of Technology (MIT) (USA) • MBA from I
Slide 30: Appendix: Don Argus Profile
Appendix: Don Argus Profile Don Argus – Chairman Term of office: • Chairman of BHP Billiton Limited and BHP Billiton Plc since June • Chairman of BHP Limited since April 1999 • Director of BHP Limited since November 1996 Other directorships and offices (current and recent): • Director of Australian
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