Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2008)
85 slides from Bhp's shareholder meeting presentation, Nov 27, 2008
Slide 1: Annual General Meeting
For personal use only Annual General Meeting BHP Billiton Limited 27 November 2008
Slide 2: Don Argus, Chairman
For personal use only Don Argus Chairman Annual General Meeting 27 November 2008
Slide 3: Disclaimer
Disclaimer By v iewing this presentation y ou agree to be bound by the following conditions. For personal use only The directors of BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") accept responsibility for the information contained in this presentation. Hav ing taken all reasonable care t
Slide 4: Disclaimer continued
Disclaimer continued No statement concerning expected cost sav ings, rev enue benef its (and resulting incremental EBITDA) and EPS accretion in this presentation should be interpreted For personal use only to mean that the future earnings per share of the enlarged BHP Billiton group for current and
Slide 5: Your Board
Your Board For personal use only 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 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 5
Slide 6: Mr M J Kloppers
Mr M J Kloppers For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 6
Slide 7: Mr P M Anderson
Mr P M Anderson For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 7
Slide 8: Dr J G S Buchanan
Dr J G S Buchanan For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 8
Slide 9: Mr C A S Cordeiro
Mr C A S Cordeiro For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 9
Slide 10: Mr D A Crawford
Mr D A Crawford For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 10
Slide 11: The Hon E G de Planque
The Hon E G de Planque For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 11
Slide 12: Dr D A L Jenkins
Dr D A L Jenkins For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 12
Slide 13: Mr J Nasser
Mr J Nasser For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 13
Slide 14: Dr J M Schubert
Dr J M Schubert For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 14
Slide 15: Mr A L Boeckmann
Mr A L Boeckmann For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 15
Slide 16: Dr D R Morgan
Dr D R Morgan For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 16
Slide 17: Mr K C Rumble
Mr K C Rumble For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 17
Slide 18: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 18
Slide 19: Led by an experienced senior management team
Led by an experienced senior management team For personal use only Marius Kloppers Alberto Calderon Marcus Randolph Chief Executive Officer Chief Commercial Officer Chief Executive Ferrous and Coal Group Management Committee Alex Vanselow Karen Wood Michael Yeager Andrew Mackenzie Chief Financial Of
Slide 20: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 20
Slide 21: Agenda
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 21
Slide 22: FY2008 financial snapshot
FY2008 financial snapshot For personal use only Attributable Profit(a) Underlying EBIT (US$bn) (US$bn) 12% 21% 16 15 25 24 14 20 20 12 15 8 10 4 5 0 0 FY2007 FY2008 FY2007 FY2008 a) Attributable profit: Excluding exc epti onal items. BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 2
Slide 23: Strong return on capital employed and reduced gearing
Strong return on capital employed and reduced gearing For personal use only Capital and exploration expenditure ROCE Gearing (US$bn) (%) (%) 15 50 80 Acquisitions (LHS) Capitalised Exploration (LHS) 70 Capex (LHS) 12 40 ROCE (RHS) 60 50 9 30 40 6 20 30 25 20 18 3 10 10 0 0 0 FY2004 FY2005 FY2006 FY2
Slide 24: Delivering superior returns to shareholders
Delivering superior returns to shareholders For personal use only Ordinary dividends per share (US cents per share) 70 70 60 50 47 H2 40 36 30 28 26 20 15 13 H1 10 0 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Note: Two i nterim di vidends were paid in FY2004. BHP Billiton 2008 Annual General M
Slide 25: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 25
Slide 26: Recent declines in commodity prices – Copper
Recent declines in commodity prices – Copper For personal use only LME Copper Cash Price (US$/t) LME copper cash price performance 10,000 1 12 month to 21-Oct-08 (-43%) 2 1 month to 21-Nov-08 (-23%) 8,000 6,000 4,000 2,000 1 2 0 Oct-07 Dec-07 Feb-08 Apr-08 May-08 Jul-08 Sep-08 Nov-08 Sourc e: London
Slide 27: Market capitalisation and debt levels
Market capitalisation and debt levels For personal use only 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 As at 21-Nov-2008 298 300 300 200 200 87 100 100 84 78 0 0 Market Net Debt Market Net Debt Capitalisation Capitalis
Slide 28: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 28
Slide 29: Agenda
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 29
Slide 30: Marius Kloppers, Chief Executive Officer
For personal use only Marius Kloppers Chief Executive Officer Annual General Meeting 27 November 2008
Slide 31: Our assets
Our assets For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 31
Slide 32: Production highlights
Production highlights For personal use only Stronger annual production in 13 of our commodities – Petroleum – Copper – Iron Ore Record production – Manganese Ore in 7 commodities – Manganese Alloy – Alumina – Molybdenum – Crude Oil and Condensate – Uranium – Lead – Zinc – Silver – Diamonds BHP Bil
Slide 33: Total Recordable Injury Frequency Rate (TRIFR) – FY2008
Total Recordable Injury Frequency Rate (TRIFR) – FY2008 For personal use only (TRIFR) TRIFR - Monthly 8 TRIFR - 3 Month Moving Average TRIFR - 12 Month Moving Average 7 6 5 4 3 2 1 0 Sep-07 Dec-07 Mar-08 Jun-08 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 33
Slide 34: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 34
Slide 35: EBIT Margin relative to peers
EBIT Margin relative to peers For personal use only (%) 60 50 BHP Billiton 40 Peers 30 20 10 0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Sourc e: BH P Billiton and peer compani es’ annual and half year reports. Peers are Rio Ti nto, Vale, Xstrata and Anglo American. FY2005 to FY2008 are shown on the
Slide 36: Net Gearing relative to peers
Net Gearing relative to peers For personal use only (%) 60 50 40 Peers 30 20 BHP Billiton 10 0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Sourc e: BH P Billiton and peer compani es’ annual and half year reports. Peers are Rio Ti nto, Vale, Xstrata and Anglo American. FY2005 to FY2008 are shown on the
Slide 37: Spence and Western Australia Iron Ore
Spence and Western Australia Iron Ore For personal use only Spence, Chile Iron Ore, Western Australia BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 37
Slide 38: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 38
Slide 39: Don Argus, Chairman
For personal use only Don Argus Chairman Annual General Meeting 27 November 2008
Slide 40: Climate change
Climate change For personal use only 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 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide
Slide 41: Projected Primary Energy Demand – International Energy Association mid case scenario
Projected Primary Energy Demand – International Energy Association mid case scenario For personal use only 2006 2030 Renewables Renewables 13% 13% Oil Oil 30% Nuclear 34% 6% Nuclear 7% Gas 21% Gas 22% Coal Coal 23% 26% World Primary Energy Demand World Primary Energy Demand = 11,730 Mtoe = 15,483 Mt
Slide 42: Future growth of nuclear power
Future growth of nuclear power For personal use only Existing operational power plants and future development of nuclear power reactors(a),(b) Operational (power plants) – 439 reactors(b) Planned (reactors) – > 95 reactors(b) Under construction (reactors) – 36 reactors(b) Proposed (reactors) – > 230
Slide 43: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 43
Slide 44: Our communities
Our communities For personal use only Nickel West, Australia Hillside, South Africa BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 44
Slide 45: Agenda
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 45
Slide 46: How to ask a question
How to ask a question For personal use only 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 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 46
Slide 47: Jane McAloon, Group Company Secretary
For personal use only Jane McAloon Group Company Secretary Annual General Meeting 27 November 2008
Slide 48: How to vote
How to vote For personal use only FOR AGAINST 700 70% 300 30% Assumes total holding of 1000 shares BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 48
Slide 49: BHP Billiton Limited Annual General Meeting – November 08
BHP Billiton Limited Annual General Meeting – 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 49
Slide 50: Agenda
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 50
Slide 51: Agenda – Receive Financial Statements
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman’s Address ⁄ Items of Business ⁄ Receive Financial Statements ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 51
Slide 52: Voting paper
Voting paper For personal use only 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 Ma
Slide 53: Agenda – Election of Directors
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Election of Directors ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 53
Slide 54: Mr P M Anderson
Mr P M Anderson For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 54
Slide 55: Mr D R Argus
Mr D R Argus For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 55
Slide 56: Dr J G S Buchanan
Dr J G S Buchanan For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 56
Slide 57: Mr D A Crawford
Mr D A Crawford For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 57
Slide 58: Mr J Nasser
Mr J Nasser For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 58
Slide 59: Dr J M Schubert
Dr J M Schubert For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 59
Slide 60: Mr A L Boeckmann
Mr A L Boeckmann For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 60
Slide 61: Agenda – Election of Mr S Mayne
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Election of Mr S Mayne ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 61
Slide 62: Dr D R Morgan
Dr D R Morgan For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 62
Slide 63: Mr K C Rumble
Mr K C Rumble For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 63
Slide 64: Agenda – Reappointment of Auditor
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Reappointment of Auditor ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 64
Slide 65: Agenda – Authority to Allot Shares
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Authority to Allot Shares ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 65
Slide 66: Authorised and Issued Share Capital
Authorised and Issued Share Capital BHP Billiton Plc For personal use only (million shares) 3,500 3,000 Requested Limit at AGMs 2,500 up to Authorised Capital 2,000 1,500 Issued Share Capital 1,000 500 0 FY2006 FY2007 FY2008 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 66
Slide 67: Agenda – Disapplication of pre-emption rights
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Disapplication of pre-emption rights ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 67
Slide 68: Agenda – Authority to buy back shares
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Authority to buy back shares ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 68
Slide 69: BHP Billiton – Buy Back history
BHP Billiton – Buy Back history For personal use only Cumulative Share Buybacks(a) (US$ million) (million shares) 14,000 BHP Billiton Plc 700 BHP Billiton Ltd 12,000 Cumulative number of shares 600 repurchased 10,000 500 From FY2005, 680 million 8,000 shares repurchased, 400 representing 11.3% of to
Slide 70: Agenda – Cancellation of BHP Billiton Plc shares
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Cancellation of BHP Billiton Plc shares held by BHP Billiton Limited ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 70
Slide 71: Agenda – Remuneration Report
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Remuneration Report ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 71
Slide 72: CEO pay/performance comparison
CEO pay/performance comparison For personal use only 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 25,000 50,000 20,000 40,000 15,000 30,000 Value at Value at 21 November 2008 A$26,997 10
Slide 73: BHP Billiton CEO Remuneration
BHP Billiton CEO Remuneration For personal use only Fixed Short Term Long Term Remuneration Incentives Incentives US$ US$ No. of Shares Target Cash Award Base Salary Performance Shares $1,385,650 373,855(b) $1,979,500 Deferred Shares(a) Retirement Benefits (Vest in 2013 subject to $1,385,650 $791,80
Slide 74: Agenda – Approval of Remuneration Report
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Approval of Remuneration Report ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 74
Slide 75: Agenda – Amendments to the Rules of the Group Incentive Scheme
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Amendments to the Rules of the Group Incentive Scheme ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 75
Slide 76: Amendments to Rules of Group Incentive Scheme
Amendments to Rules of Group Incentive Scheme For personal use only Current Rules Proposed Rules Target Bonus: Target Bonus: 140% of Base Salary 160% of Base Salary Maximum Bonus: Maximum Bonus: 1.5 x Target 2 x Target BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 76
Slide 77: Agenda – Grant of Awards to Mr M J Kloppers
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Grant of Awards to Mr M J Kloppers ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 77
Slide 78: Five year required out-performance of peers
Five year required out-performance of peers For personal use only Total Shareholder Return (TSR) performance (%) 90 80 BHP Billiton TSR 70 30.7% 60 50 Peer Median TSR 40 30 20 10 5.5% 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 78
Slide 79: Grants under the GIS and the LTIP
Grants under the GIS and the LTIP For personal use only 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
Slide 80: Agenda – Non-executive Directors' maximum aggregate fees
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Non-executive Directors’ maximum aggregate fees ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 80
Slide 81: Agenda – Articles of Association and Constitution
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Articles of Association and Constitution ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 81
Slide 82: Agenda – Questions
Agenda For personal use only ⁄ Chairman's Address ⁄ CEO’s Address ⁄ Chairman's Address ⁄ Items of Business ⁄ Questions BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 82
Slide 83: BHP Billiton Limited – Annual General Meeting November 08
BHP Billiton Limited – Annual General Meeting 27 November 2008 For personal use only BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 83
Slide 84: Thank you
For personal use only Remember to place the voting papers in the ballot box as you leave Thank you BHP Billiton 2008 Annual General Meeting, 27 November 2008 Slide 84
Slide 85: For personal use only
édl ohpbilliton ourcing the future