Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investment Analysts' Society presentation, September 2005
14 slides from Bhp's conference presentation, September 2005
Slide 1: BHP Billiton Presentation to Investment Analysts' Society
BHP Billiton Presentation to Investment Analysts’ Society Chip Goodyear, Chief Executive Officer September 2005
Slide 2: Disclaimer
Disclaimer The views expressed here contain information 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. Any forward looking information in this presentation ha
Slide 3: Top companies in the sector – March 2001
Top 20 companies in the sector – March 2001 70 Market value of minerals industry US$179bn 65 Value of Top Five US$116bn 60 Value of BHP Billiton US$ 28bn Market cap. on 16/03/01 (US$bn) 55 50 45 40 BHP Billiton 35 Alcoa Rio Tinto 30 Anglo 25 20 Alcan Phelps Dodge 15 Amplats Placer Dome CVRD Falconbr
Slide 4: Top companies in the sector today
Top 20 companies in the sector today 100 BHPB Market value of minerals industry US$595bn 95 90 Value of Top Five US$248bn 85 Value of BHP Billiton US$ 94bn 80 Market Cap. on 07/09/05 (US$Bn) 75 70 65 60 Rio Tinto Anglo American 55 50 CVRD 45 40 35 30 Shenhua Alcoa Newmont Peabody Energy Phelps Dodge
Slide 5: The world's largest diversified resources company
The world’s largest diversified resources company Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials Slide 5
Slide 6: Strategic focus
Strategic focus M&A Bolt-on Acquisitions Growth Pipeline Cost Savings and Efficiencies Low Cost, High Quality Assets People Slide 6
Slide 7: Highlights – year ended June 2005
Highlights – year ended June 2005 • Record full year earnings − EBITDA up 53% to US$11.4 billion − EBIT up 70% to US$9.3 billion − Attributable profit of US$6.5 billion and earnings per share of 106.4 US cents, up 86% and 89%, respectively • EBIT up across all CSGs with Group EBIT margin of 37.1% •
Slide 8: China
China • Sales into China increasing but diversification remains • Currently 12.6% of total company revenues, up from 9.8% in FY04 US$M 2,500 2,407 ROW 2,250 Australia Europe 2,000 China 1,750 1,588 1,500 Nth America Japan 1,357 Other Asia 1,250 1,075 1,000 785 750 500 371 431 250 0 FY02 H1 03 H2 03
Slide 9: Chinese copper, nickel, aluminium and iron ore demand and its % share of world demand
Chinese copper, nickel, aluminium and iron ore demand and its % share of world demand ‘000 tonnes % ‘000 tonnes % 4,000 25% 160 16% 3,500 140 14% Chinese refined copper Chinese primary nickel consumption 20% 3,000 consumption 120 12% % share of world refined copper % share of world primary nickel 2,
Slide 10: Commodity price cycle – 200 year view
Commodity price cycle – 200 year view US Commodity Price Index adjusted for CPI 1.70 WWI 1.50 Industrial Rise of electric Revolution/ power and Steam power communications 1.30 War of Post WWII Vietnam & 1812 Cold War 1.10 Post Civil War 0.90 Illiquidity/ Rise of the Contraction of service economy 0.
Slide 11: Deep inventory of growth projects
Deep inventory of growth projects BROWNFIELD Koala UG NWS NWS T5 T5 BMA Phase 2 Atlantis North NWS Samarco Samarco Angel Paranam Yabulu Yabulu Esc’da Esc’da BMA Worsley Sulphide Sulphide Esc’da WA WA Iron Iron Ore Ore Phase 1 WA WA Iron Ore CPR Iron Ore WA WA Iron Iron Ore Ore RGP RGP 4+ 4+ RGP RGP
Slide 12: Acquisition of WMC delivers further growth options
Acquisition of WMC delivers further growth options • 100% ownership achieved on 2 August 2005 • Fully aligned with corporate strategy: – Access to Tier 1 assets, and the optionality they provide – Value focussed – No change to normal valuation methodology or pricing protocols • Grows BHP Billiton’s
Slide 13: Summary
Summary • Continuing to deliver on strategy • Strong production performance leading to record financial results • Outlook remains positive – Continued strong demand 9 Emerging economies remain buoyant, offsetting slowing growth in OECD 9 Chinese GDP growth rate remains strong and sustainable – Low i
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BHP Billiton — Investment Analysts' Society presentation, September 2005 on 6ix