Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Mineral Week 2009
16 slides from Bhp's conference presentation, 2009
Slide 1: Resilience, Recovery, Growth
Resilience, Recovery, Growth Marius Kloppers Chief Executive, BHP Billiton 1
Slide 2: Important Notices
Important Notices Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information
Slide 3: Agenda
Agenda • Current market conditions • Importance of resources to Australia • Outlook for the resources industry • Recovery 3
Slide 4: A significant change in macroeconomic conditions
A significant change in macroeconomic conditions OECD unemployment and GDP growth OECD retail trade (%) (YOY % change, volumes) 10 OECD unemployment rate SADJ 6 GDP YOY growth 8 4 2 6 0 4 (2) 2 (4) 0 (6) (2) (8) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 199
Slide 5: Dramatic fall in price of commodities
Dramatic fall in price of commodities Oil prices Copper prices ($/bbl, June 1991 to April 2009) ($/t, June 1991 to April 2009) 160 10,000 WTI ($/bbl) 140 9,000 Copper ($/t) 8,000 120 7,000 100 6,000 80 5,000 60 4,000 40 3,000 20 2,000 0 1,000 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Source:
Slide 6: BHP Billiton continuing to invest
BHP Billiton continuing to invest Capital and exploration expenditure (US$bn) 12 FY 2010F Exploration 10 Sustaining capex Growth expenditure 8 6 4 2 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009F FY 2010F Note: FY2005 to FY2008 have been calculated on the basis of IFRS. Prior per
Slide 7: Importance of resources to Australia
Importance of resources to Australia • 8% of Australian GDP • 130,000 direct employees (supporting further 200,000) • Significant indigenous employer • A$21 billion tax revenue • A$150 billion minerals exports Iron Ore, Western Australia 7
Slide 8: Outlook
Outlook • Conditions remain uncertain in the short and medium term • Investing throughout the cycle key to sustainable growth • Long term fundamentals remain sound • Budget provided important initiatives to support industry 8
Slide 9: OECD economies remain weak
OECD economies remain weak OECD leading indicator OECD industrial production (CLI) (% change YOY) 110 10 7 105 4 100 1 95 (2) (5) 90 (8) 85 OECD leading indicator (left axis) OECD industrial production (right axis) (11) 80 (14) 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 20
Slide 10: Some signs of life in China
Some signs of life in China Construction and Real Estate Sectors Purchasing Managers Indices (% Change YOY) (PMIs) 40 65 30 60 55 20 50 10 45 0 40 EU (10) Floor Space Completed 35 China (20) Floor Space Sold USA 30 Gross Construction Value Japan (30) 25 Jan 2007 Jul 2007 Jan 2008 Jul 2008 Jan 2009 J
Slide 11: China trade performance still unclear
China trade performance still unclear Trade performance in China (% change YOY) 60 Exports Imports 40 20 0 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 (20) (40) (60) Source: CEIC. 11
Slide 12: When can we expect a recovery?
0 20 40 60 80 100 120 (mt) Jun 2000 Dec 2000 China Jun 2001 Ex China Source: World Steel Association. Dec 2001 Jun 2002 Dec 2002 Jun 2003 Monthly crude steel production Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jan 2009 When can we expect a re
Slide 13: Next steps for the resource industry and Government
Next steps for the resource industry and Government • Manage the medium term uncertainty but look to capture long term opportunities • Live within their means; focus on balance sheet management • Government to balance between offering a fiscal stimulus whilst also allowing companies the freedom to m
Slide 14: Climate change
Climate change • High risks from unmitigated climate change • Developed world has a responsibility to do what it can and act quickly • International climate framework needed to establish binding commitments • BHP Billiton believes an effective global response should include: – An effective global ca
Slide 15: Resources industry making positive change
Resources industry making positive change • BHP Billiton contributes 1% of annual pre tax profit to community programmes: US$140 million in 2008 • Tackling climate change: resources industry expects to invest A$1.4 billion in clean technology • Developing sustainable communities often in remote loca
Slide 16: Conclusion
Conclusion • Resources industry is a significant contributor to the Australian economy • The industry must also accept its wider responsibilities; to Australia, the environment and the communities in which it operates • The sector is resilient and able to operate through these extraordinary times •