Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2007)
90 slides from Bhp's shareholder meeting presentation, Nov 28, 2007
Slide 1: BHP Billiton Limited Annual General Meeting
BHP Billiton Limited Annual General Meeting For personal use only 28 November 2007
Slide 2: Disclaimer
For personal use only Disclaimer This document has been prepared by BHP Billiton Ltd and BHP Billiton Plc (“ BHP Billiton") and comprises the written materia ls/slides for a presentation concerning BHP Billiton given at the Annual General Meeting of BHP Billiton Ltd held on Wednesday 28 November 200
Slide 3: Disclaimer (Continued)
For personal use only Disclaimer (Continued) In connection with BHP Billiton's proposed combin atio n with Rio Tinto Ltd and Rio Tinto plc ("Rio Tin to") by way of the proposed Schemes of Arrangement (the "Schemes"), the new BHP Billiton shares to be issued to Rio Tinto shareholders under the terms
Slide 4: Don Argus – Chairman
For personal use only BHP Billiton Limited Annual General Meeting 28 November 2007 Don Argus – Chairman
Slide 5: Directors
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 5
Slide 6: Mr Paul Anderson
Mr Paul Anderson For personal use only Slide 6
Slide 7: Dr John Buchanan
Dr John Buchanan For personal use only Slide 7
Slide 8: Mr Carlos Cordeiro
Mr Carlos Cordeiro For personal use only Slide 8
Slide 9: Mr David Crawford
Mr David Crawford For personal use only Slide 9
Slide 10: The Hon Gail de Planque
The Hon Gail de Planque For personal use only Slide 10
Slide 11: Dr David Jenkins
Dr David Jenkins For personal use only Slide 11
Slide 12: Mr Jac Nasser
Mr Jac Nasser For personal use only Slide 12
Slide 13: Dr John Schubert
Dr John Schubert For personal use only Slide 13
Slide 14: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 14
Slide 15: Dr David Brink
Dr David Brink For personal use only Slide 15
Slide 16: Agenda
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business • Questions Slide 16
Slide 17: FY 2002 vs FY 2007 results
For personal use only FY 2002 vs FY 2007 results(1) 547% 607% 629% 402% EBIT Attributable EPS(2) Market Profit(2) Capitalisation 20,067 13,675 233.9 165 US$ million US$ million US$ million US$ billion 3,102 32.9 1,934 32.1 FY 2002 FY 2007 FY 2002 FY 2007 FY 2002 FY 2007 FY 2002 FY 2007 1. EBIT, attr
Slide 18: Strong Cash Flow - delivering value to shareholders
Strong Cash Flow - delivering value to shareholders Net Operating Cash Flow Organic Growth For personal use only (exclude acquisitions) US$m 9000 US$m 8000 16000 7000 6000 5000 14000 4000 3000 12000 2000 1000 10000 0 FY02 FY03 FY04 FY05 FY06 FY07 8000 Return to Shareholders Dividends paid and Share
Slide 19: Total Shareholder Return to a holder of 1000 BHP Billiton Ltd shares
Total Shareholder Return to a holder of 1000 BHP Billiton Ltd shares on 28 June 2001 A$ Value at 31 October 2007 For personal use only 50,000 Shares: $46,100 Dividends: $3,450 45,000 Steel: $2,120 40,000 Value at 30 June 2006 35,000 Shares: $29,000 30,000 25,000 Value at 30 June 2002 Shares: $9,628
Slide 20: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 20
Slide 21: Chip Goodyear
For personal use only BHP Billiton Limited Annual General Meeting 28 November 2007 Chip Goodyear
Slide 22: Mr Chip Goodyear
Mr Chip Goodyear For personal use only Slide 22
Slide 23: Agenda
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business • Questions Slide 23
Slide 24: Marius Kloppers – Chief Executive Officer
For personal use only BHP Billiton Limited Annual General Meeting 28 November 2007 Marius Kloppers – Chief Executive Officer
Slide 25: Growth delivered since July 2001
Growth delivered since July 2001 BROW NFIELD For personal use only Acquisition - $7. 2bn Cerrejon WMC Resources Zona Norte Prod & Cap Expansion San Juan UG WAIO WAIO BMA Tintaya Bream Gas Dendrobium WAIO Mt Mt Arthur Arthur RGP RGP RGP 22 Phase 2 Oxide Pipeline North Paranam North BMA Phase 1 WAIO E
Slide 26: Deep inventory of growth projects
Deep inventory of growth projects BROW NFIELD As at 22 August 2007 For personal use only $US $US Size of bubble in dicates proposed capital expenditure; 200m 200m Pinto Atlantis bold outer border signifies sanctioned project. Valley Koala Koala North Klipspruit Klipspruit UG UG NWS NWS T5 T5 NWS Dou
Slide 27: Deep inventory of projects and options
Deep inventory of projects and options As at 22 August 2007 For personal use only Proposed capital expenditure WA WA Iron Iron Ore Ore Saraji Saraji NWS NWS <$500m <$500m $501m-$2bn $501m-$2bn $2bn+ $2bn+ Quantum Quantum 11 WFG WFG Shenzi Nth Angola Angola Canadian Canadian DRC CMSA && DRC CMSA Heap
Slide 28: Our assets…
For personal use only Slide 28 Our assets…
Slide 29: Proposal to combine BHP Billiton & Rio Tinto
Proposal to combine BHP Billiton & Rio Tinto For personal use only • Founded on widely acknowledged rationale and logic • Will accelerate resource development to meet increasing demand • Unique synergies between the two companies • Unlocks value for shareholders of BHP Billiton & Rio Tinto Slide 29
Slide 30: Don Argus – Chairman
For personal use only BHP Billiton Limited Annual General Meeting 28 November 2007 Don Argus – Chairman
Slide 31: Our sustainability…
For personal use only Our sustainability… Slide 31
Slide 32: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 32
Slide 33: Growth in use of energy sources
For personal use only Growth in use of energy sources 200 190 Fuel inputs used in the production of electricity 2004 = 100 180 Gas 170 Coal 160 150 Electricity (output) 140 Renewables 130 Nuclear 120 110 Oil 100 90 2004 2010 2015 2020 2025 2030 Source: International Energy Agency Slide 33
Slide 34: Olympic Dam
For personal use only Slide 34 Olympic Dam
Slide 35: Range of total greenhouse gas emissions from electricity production chains
Range of total greenhouse gas emissions from electricity production chains gCeq/kWh For personal use only 350 Indirect Direct 300 64 250 28 200 150 26 247 100 205 128 50 52 19 12 9 4 0 Coal Oil Gas Solar Hydroelectric Biomass Wind Nuclear Source: International Atomic Energy Agency Slide 35
Slide 36: Olympic Dam
For personal use only Slide 36 Olympic Dam
Slide 37: Our communities…
Our communities… For personal use only Slide 37
Slide 38: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 38
Slide 39: GDP growth compared – India and China
GDP growth compared – India and China GDP US$bn For personal use only 3500 3000 2500 2000 1500 1000 500 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 19911992 1993 19941995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 India China Slide 39 Source: World Bank, Focus Economics
Slide 40: Agenda
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business • Questions Slide 40
Slide 41: How to ask a question
For personal use only 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 41
Slide 42: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 42
Slide 43: How to vote
For personal use only How to vote FOR AGAINST 700 70% 300 30% Assumes total holding of 1000 shares Slide 43
Slide 44: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 44
Slide 45: Agenda
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business • Questions Slide 45
Slide 46: Agenda – Receive Financial Statements
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Receive Financial Statements • Questions Slide 46
Slide 47: Voting paper
For personal use only Voting paper BHP Billiton Plc BHP Billiton Ltd ITEM NUMBER FOR AGAINST FOR AGAINST 1 & 2 To receive the Financial Statements and Reports To elect Directors: 3 & 4 Mr D A Crawford 5 & 6 Mr D R Argus 7 & 8 Mr C A S Cordeiro 9 & 10 The Hon E G de Planque 11 & 12 Dr D A L Jenkins 1
Slide 48: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 1 To receive the Financial 1,352,508,393 2,985,466 5,022,835 94,936,454* Statements & Reports of BHP Billiton Plc (92.93%) (0.21%) (0.35%) (6.52%) Item 2 To receive the Financial 1,
Slide 49: Agenda – Election of Directors
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Election of Directors • Questions Slide 49
Slide 50: Mr D A Crawford
Mr D A Crawford For personal use only Slide 50
Slide 51: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 3 To elect 1,350,990,714 4,757,886 4,525,500 95,179,088* Mr D A Crawford as a Director of (92.82%) (0.33%) (0.31%) (6.54%) BHP Billiton Plc Item 4 To elect 1,351,192,411 4,739,662 4
Slide 52: Mr D R Argus
For personal use only Slide 52 Mr D R Argus
Slide 53: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 5 To elect 1,347,291,118 7,815,263 5,232,167 95,114,640* Mr D R Argus as a Director of (92.57%) (0.54%) (0.36%) (6.54%) BHP Billiton Plc Item 6 To elect 1,347,572,228 7,822,848 5,04
Slide 54: Mr C A Cordeiro
For personal use only Mr C A Cordeiro Slide 54
Slide 55: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 7 To elect 1,352,583,547 2,738,304 4,614,226 95,517,071* Mr C A Cordeiro as a Director of (92.93%) (0.19%) (0.32%) (6.56%) BHP Billiton Plc Item 8 To elect 1,352,915,672 2,715,980 4
Slide 56: The Hon E G de Planque
For personal use only The Hon E G de Planque Slide 56
Slide 57: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 9 To elect The Hon E G 1,351,835,983 3,016,787 4,958,037 95,642,341* de Planque as a Director of (92.88%) (0.21%) (0.34%) (6.57%) BHP Billiton Plc Item 10 To elect The Hon E G 1,352
Slide 58: Dr D A Jenkins
Dr D A Jenkins For personal use only Slide 58
Slide 59: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only For Against Abstain Discretionary Item 11 To elect Dr D A Jenkins 1,351,627,193 3,010,000 5,274,760 95,541,195* as a Director of BHP Billiton Plc (92.87%) (0.21%) (0.36%) (6.56%) Item 12 To elect Dr D A Jenkins 1,351,855
Slide 60: Agenda – Reappointment of Auditor
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Reappointment of Auditor • Questions Slide 60
Slide 61: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 13 To re-appoint KPMG Audit Plc as the auditor of BHP Billiton Plc For Against Abstain Discretionary 1,353,387,446 1,641,427 5,028,517 95,395,758* (92.99%) (0.11%) (0.35%) (6.55%) * Includes 84,264,938 votes to the
Slide 62: Agenda – Authority to Allot Shares
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Authority to Allot Shares • Questions Slide 62
Slide 63: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 14 To renew the Directors’ authority to allot shares in BHP Billiton Plc For Against Abstain Discretionary 1,336,437,637 15,990,417 7,153,637 95,867,115* (91.82%) (1.10%) (0.49%) (6.59%) * Includes 84,539,680 votes
Slide 64: Agenda – Disapplication of Pre-emption Rights
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Disapplication of Pre-emption Rights • Questions Slide 64
Slide 65: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 15 To renew the disapplication of pre-emption rights in BHP Billiton Plc For Against Abstain Discretionary 1,341,978,168 8,268,294 8,896,474 96,310,212* (92.20%) (0.57%) (0.61%) (6.62%) * Includes 84,993,082 votes t
Slide 66: Agenda – Authority to Repurchase Shares
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Authority to Repurchase Shares • Questions Slide 66
Slide 67: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 16 To approve the repurchase of shares of BHP Billiton Plc For Against Abstain Discretionary 1,347,529,927 3,764,177 6,309,377 97,842,160* (92.59%) (0.26%) (0.43%) (6.72%) * Includes 86,568,114 votes to the Chairman
Slide 68: Agenda – Cancellation of BHP Billiton Plc shares
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Cancellation of BHP Billiton Plc shares held by BHP Billiton Limited • Questions Slide 68
Slide 69: Proxy Position
Proxy Position For personal use only Proxies from BHP Billiton Ltd shareholders Item 17 To approve the cancellation of shares in BHP Billiton Plc held by BHP Billiton Limited For Against Abstain Discretionary i) 31 December 2007 1,346,167,527 2,285,481 9,883,661 97,114,348* ii) 15 February 2008 1,34
Slide 70: Agenda – Remuneration Report
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Remuneration Report • Questions Slide 70
Slide 71: Executive Remuneration – Fixed and At Risk Components
For personal use only Executive Remuneration – Fixed and At Risk Components • Fixed – Base Salary – Retirement Benefits • At Risk – Short Term Incentives – Cash Award – Deferred Shares – Long Term Incentives – Performance Shares Slide 71
Slide 72: BHP Billiton CEO Remuneration
For personal use only BHP Billiton CEO Remuneration Fixed At Risk At Risk CEO Total Remuneration Short Term Long Term Target US$ Incentives Incentives Remuneration US$ No. of Shares US$ Base Salary Target Cash Award Performance Shares 8,633,958*** 1,850,000 1,295,000 400,000 ** Retirement Deferred S
Slide 73: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 73
Slide 74: CEO retirement arrangements at January 2008
For personal use only CEO retirement arrangements at 1 January 2008 Short term cash award (target) US$622,125 Short Term Incentive - Deferred Shares* - Vest on retirement (*69,140 shares subject to shareholder approval) 125,831 shares Long Term Incentive - Performance Shares** **Pro-rated amount whi
Slide 75: Agenda – Approval of Remuneration Report
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Approval of Remuneration Report • Questions Slide 75
Slide 76: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 18 To approve the Remuneration Report For Against Abstain Discretionary 1,335,209,222 14,116,045 10,154,128 95,971,652* (91.74%) (0.97%) (0.70%) (6.59%) * Includes 84,661,253 votes to the Chairman Slide 76
Slide 77: Agenda – Approvals of Awards under Incentive Schemes
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Approvals of Awards under Incentive Schemes for Mr M J Kloppers and Mr C W Goodyear • Questions Slide 77
Slide 78: Year projection TSR Performance
For personal use only 5 Year projection TSR Performance 90 80 Peer Median TSR 70 BHP Billiton TSR 30.7% TSR performance (%) 60 50 40 30 20 10 5.5% 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Slide 78
Slide 79: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 79
Slide 80: Grants under the GIS and the LTIP
Grants under the GIS and the LTIP For personal use only Mr M J Kloppers: • 46,686 Deferred Shares or • 400,000 Performance Shares • 186,744 Options or • a combination of both Mr C W Goodyear: • 69,140 Deferred Shares or • 276,560 Options or • a combination of both Slide 80
Slide 81: Agenda – Grant of Awards to Mr M J Kloppers
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Grant of Awards to Mr M J Kloppers • Questions Slide 81
Slide 82: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 19 To approve the grant of awards to Mr M J Kloppers under the GIS and the LTIP For Against Abstain Discretionary 1,307,942,047 42,345,949 10,360,139 94,811,128* (89.86%) (2.91%) (0.71%) (6.51%) * Includes 83,791,42
Slide 83: Agenda – Grant of Awards to Mr C W Goodyear
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Grant of Awards to Mr C W Goodyear • Questions Slide 83
Slide 84: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders For personal use only Item 20 To approve the grant of awards to Mr C W Goodyear under the GIS For Against Abstain Discretionary 1,231,881,249 117,611,423 11,381,747 94,576,598* (84.64%) (8.08%) (0.78%) (6.50%) * Includes 83,596,697 votes to t
Slide 85: Agenda – Amendment to Articles and Constitution
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business – Amendment to Articles of Association of BHP Billiton Plc – Amendment to Constitution of BHP Billiton Limited • Questions Slide 85
Slide 86: Proxy Position
Proxy Position Proxies from BHP Billiton Ltd shareholders Item 21 For personal use only To approve the amendment to the Articles of Association For Against Abstain Discretionary 1,342,694,729 7,177,403 9,134,673 96,444,212* (92.25%) (0.49%) (0.63%) (6.63%) Item 22 To approve the amendment to the Con
Slide 87: Agenda
For personal use only Agenda • Chairman's Address • CEO’s Address • Items of Business • Questions Slide 87
Slide 88: For personal use only
For personal use only BHP Billiton Ltd – Annual General Meeting – 28 November 2007 Slide 88
Slide 89: Thank you
For personal use only Remember to place the voting papers in the ballot boxes as you leave Thank you Slide 89
Slide 90: For personal use only
For personal use only