Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton — Shareholder Meeting (November 2010)

74 slides from Bhp's shareholder meeting presentation, Nov 16, 2010

1. Slide 1: Annual General Meeting 2010

   Escondida, Chile For personal use only Annual General Meeting 2010 BHP Billiton Limited 16 November 2010

2. Slide 2: Jac Nasser, Chairman

   TEMCO, Australia For personal use only Jac Nasser Chairman Annual General Meeting 16 November 2010

3. Slide 3: Disclaimer

   For personal use only Disclaimer Reliance on third party information This document contains 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 such infor

4. Slide 4: Jansen, Canada

   Jansen, Canada For personal use only Annual General Meeting BHP Billiton Limited

5. Slide 5: Presence in Western Australia

   For personal use only Presence in Western Australia Newman Pyrenees Worsley Port Hedland Nickel West BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 5

6. Slide 6: Purarrka Indigenous Mining Academy

   For personal use only Purarrka Indigenous Mining Academy BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 6

7. Slide 7: Marius Kloppers, Chief Executive Officer

   For personal use only Marius Kloppers Chief Executive Officer BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 7

8. Slide 8: John Schubert

   For personal use only John Schubert Chairman Sustainability Committee Member Remuneration Committee Member Nomination Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 8

9. Slide 9: David Crawford

   For personal use only David Crawford Chairman Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 9

10. Slide 10: Carlos Cordeiro

    For personal use only Carlos Cordeiro Member Remuneration Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 10

11. Slide 11: Alan Boeckmann

    For personal use only Alan Boeckmann Member Remuneration Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 11

12. Slide 12: John Buchanan

    For personal use only John Buchanan Senior Independent Director BHP Billiton Plc Chairman Remuneration Committee Member Nomination Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 12

13. Slide 13: Wayne Murdy

    For personal use only Wayne Murdy Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 13

14. Slide 14: Keith Rumble

    For personal use only Keith Rumble Member Sustainability Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 14

15. Slide 15: Carolyn Hewson

    For personal use only Carolyn Hewson Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 15

16. Slide 16: Malcolm Broomhead

    For personal use only Malcolm Broomhead Member Sustainability Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 16

17. Slide 17: Alex Vanselow, Chief Financial Officer

    For personal use only Alex Vanselow Chief Financial Officer Chairman Investment Committee Chairman Financial Risk Management Committee BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 17

18. Slide 18: Jane McAloon, Group Company Secretary

    For personal use only Jane McAloon Group Company Secretary BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 18

19. Slide 19: Middleburg, South Africa

    Middleburg, South Africa For personal use only Annual General Meeting BHP Billiton Limited

20. Slide 20: Group Management Committee

    For personal use only Group Management Committee Alberto Calderon Andrew Mackenzie Marcus Randolph Chief Commercial Chief Executive Chief Executive Officer Non Ferrous Ferrous and Coal Alex Vanselow Karen Wood Michael Yeager Chief Financial Chief People and Chief Executive Officer Public Affairs Off

21. Slide 21: BMA, Australia

    BMA, Australia For personal use only Annual General Meeting BHP Billiton Limited

22. Slide 22: Our contribution to a developing world

    For personal use only Our contribution to a developing world BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 22

23. Slide 23: GEMCO, Australia

    GEMCO, Australia For personal use only Annual General Meeting BHP Billiton Limited

24. Slide 24: Taxes and royalties payments

    For personal use only Taxes and royalties payments  $7.1 billion paid in Taxes & royalty payments on a country by country basis(a) (FY2010) company taxes 6,000 Taxes collected by BHP Billiton (b)  $850 million in taxes 5,000 Taxes borne by BHP Billiton (c) collected on behalf of our employees 4,00

25. Slide 25: Pyrenees, Australia

    Pyrenees, Australia For personal use only Annual General Meeting BHP Billiton Limited

26. Slide 26: Diversification delivers healthy margins despite significant volatility

    Diversification delivers healthy margins For personal use only despite significant volatility EBIT margin(a) (%) (b) (b) (a) Calculated on the basis of UKGAAP for periods prior to FY05, except for the exclusion of PRRT from Petroleum and BHP Billiton Group results for all periods. All periods exclud

27. Slide 27: Financial results

    For personal use only Financial results  Underlying EBIT increased by 8% to US$19.7 billion  Profit (excluding exceptionals) increased 16% to US$12.5 billion  Net operating cash flow of US$17.9 billion reducing net debt to $3.3 billion  20 projects in growth pipeline  US$15 billion expected inv

28. Slide 28: Creating considerable wealth for shareholders

    Creating considerable wealth for For personal use only shareholders BHP Billiton Limited(a) ($) 60,000 Dividends Reinvested Value of 1,000 BHP Billiton Limited Shares (b) 50,000 ASX 200 40,000 30,000 20,000 10,000 0 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun

29. Slide 29: Long term global economic environment

    For personal use only Long term global economic environment BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 29

30. Slide 30: Emerging markets – drivers of growth

    For personal use only Emerging markets – drivers of growth Copper consumption Copper consumption CAGR FY2000 – FY2010 (Total World FY2010: 18,792kt) (%) 15 Rest of World Latin America 7% 12 4% Japan 9 5% China 39% 6 North America 10% 3 0 Western Europe 16% (3) Asia ex. Japan (6) 19% China Asia Latin

31. Slide 31: A diversified global portfolio

    For personal use only A diversified global portfolio UK/Europe China $13.2bn / 25% Japan $9.9bn / 19% $5.3bn / 10% North America $5.6bn / 11% Aluminium Other Asia Base Metals $9.8bn / 19% Diamonds & Specialty Products Energy Coal Iron Ore Manganese Metallurgical Coal Rest of World Petroleum $4.5bn /

32. Slide 32: China, Japan and India

    For personal use only China, Japan and India 2010 Second quarter GDP (annualised) 2009 GDP per capita (US$ trillion at market Fx) (US$ at market Fx) 6 40,000 5 30,000 4 3 20,000 2 10,000 1 0 0 Japan China India Japan China India Source: Global Insight. BHP Billiton Limited Annual General Meeting, 16

33. Slide 33: Social licence to operate

    For personal use only Social licence to operate BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 33

34. Slide 34: Safety

    For personal use only Safety BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 34

35. Slide 35: Colleagues who lost their lives

    For personal use only Colleagues who lost their lives James Lungu (1964 – 2009) Minerals Exploration, Zambia Greg Goslett (1982 – 2009) Energy Coal, South Africa Sifiso Mnisi (1981 – 2010) Energy Coal, South Africa Francisco Percic (1967 – 2010) Base Metals, Chile Wayne Ross (1964 – 2010) Stainless

36. Slide 36: Social responsibility

    For personal use only Social responsibility BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 36

37. Slide 37: Environmental sustainability

    For personal use only Environmental sustainability BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 37

38. Slide 38: Climate change

    For personal use only Climate change  Human activities are having a negative impact on our climate  More than adequate evidence to warrant action  Limit global warming to no more than 2 degrees Celsius above pre-industrial global average temperature BHP Billiton Limited Annual General Meeting, 16

39. Slide 39: Energy mix

    For personal use only Energy mix BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 39

40. Slide 40: Potash, Canada

    Potash, Canada For personal use only Annual General Meeting BHP Billiton Limited

41. Slide 41: Olympic Dam, Australia

    For personal use only Olympic Dam, Australia Annual General Meeting BHP Billiton Limited

42. Slide 42: Agenda

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 42

43. Slide 43: New economic powers are emerging

    For personal use only New economic powers are emerging Russia China China India Brazil BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 43

44. Slide 44: Megacities driving economic growth

    For personal use only Megacities driving economic growth Delhi Kolkata Mumbai Chennai Shanghai Beijing Sao Paulo Shenzhen BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 44

45. Slide 45: Emerging economies are growing at a faster rate than developed economies

    Emerging economies are growing at a For personal use only faster rate than developed economies 1999 – 2009 Average GDP growth rate (%) 10 BRICs 8 6 4 2 0 Netherlands Switzerland Turkey Indonesia Belgium Germany Russia South Korea China India Australia Brazil France Spain Canada Mexico Japan USA UK I

46. Slide 46: Emerging economies are rising in importance

    Emerging economies are rising in For personal use only importance 2009 GDP at market exchange rates (US$ trillions) 15 BRICs 12 9 6 3 0 Netherlands Switzerland Italy Turkey Indonesia Belgium Germany South Korea Russia China India Australia Brazil France Spain Canada Mexico Japan UK USA Source: Globa

47. Slide 47: Continued reduction in injury frequency

    For personal use only Continued reduction in injury frequency Total Recordable Injury Frequency (TRIF) Occupational illnesses (Frequency per million hours) (Number of cases per year) 8 250 7 200 6 5 150 4 100 3 2 50 1 0 0 FY2007 FY2008 FY2009 FY2010 FY2007 FY2008 FY2009 FY2010 Source: BHP Billiton,

48. Slide 48: Lower carbon emissions and energy use

    For personal use only Lower carbon emissions and energy use Greenhouse gas emissions(a) Energy use – total (Million tonnes CO2-e) (Petajoules, PJ) 60 350 300 50 250 40 200 30 150 20 100 10 50 0 0 FY2007 FY2008 FY2009 FY2010 FY2007 FY2008 FY2009 FY2010 (a) Measured according to the World Resources In

49. Slide 49: Climate change policy design principles

    For personal use only Climate change policy design principles Clear price signal Ensuring that the carbon price signal reaches consumers such that consumption is reduced Revenue neutral Returning revenues raised to individuals and businesses impacted by the carbon price Trade friendly Rebating emiss

50. Slide 50: We are committed to having a positive impact in the communities in which we operate

    We are committed to having a positive impact For personal use only in the communities in which we operate BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 50

51. Slide 51: Enablers of BHP Billiton growth

    For personal use only Enablers of BHP Billiton growth Long Term Value Creation Talented people Simple company Simple portfolio of focused on what is structure world class assets important Unchanged Strategy BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 51

52. Slide 52: Portfolio of fewer, larger assets that are low cost and expandable

    Portfolio of fewer, larger assets that are For personal use only low cost and expandable Aluminium Base Metals Diamonds & Specialty Products Energy Coal Iron Ore Manganese Metallurgical Coal Petroleum Stainless Steel Materials Uranium Offices BHP Billiton Limited Annual General Meeting, 16 November

53. Slide 53: Worsley, Australia

    Worsley, Australia For personal use only Annual General Meeting BHP Billiton Limited

54. Slide 54: Agenda

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 54

55. Slide 55: Spence, Chile

    For personal use only Spence, Chile Annual General Meeting BHP Billiton Limited

56. Slide 56: Agenda

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 56

57. Slide 57: Agenda: Item 1

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 1: Receive financial statements and reports BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 57

58. Slide 58: Agenda: Items 2-8

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 2-8: Election of Directors BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 58

59. Slide 59: Agenda: Item 9

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 9: Reappointment of auditor of BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 59

60. Slide 60: Agenda: Item 10

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 10: General authority to issue shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 60

61. Slide 61: Agenda: Item 11

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 11: Issuing shares in BHP Billiton Plc for cash BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 61

62. Slide 62: Agenda: Item 12

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 12: Repurchase of shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 62

63. Slide 63: Agenda: Item 13

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 13: Remuneration report BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 63

64. Slide 64: CEO remuneration

    For personal use only CEO remuneration CEO remuneration 2010(a) 28% Fixed Salary, Long Term pension & Incentive other (EV) benefits 2,864,636 2,921,506 Short Term Incentive 4,661,054 72% At Risk (a) Annualised view of CEO remuneration. Salary ($2,038,885). Pension contribution ($815,554). Other bene

65. Slide 65: Alignment of STI with profit performance

    For personal use only Alignment of STI with profit performance Profit attributable – excluding exceptional items Average STI payment (US$ billion) (% of maximum award) 16 Profit attributable 100 Average STI payment 80 12 60 8 40 4 20 0 0 FY2006 FY2007 FY2008 FY2009 FY2010 BHP Billiton Limited Annual

66. Slide 66: BHP Billiton outperformance over 2005 LTIP cycle

    BHP Billiton outperformance over 2005 For personal use only LTIP cycle BHP Billiton outperformance of Index over the 2005 LTIP cycle (%, US$ billion) $59.2 billion of value created over and above peer group average 74.1% = BHP Billiton outperformance of Index TSR $34.7 billion 30.7% = +5.5% p.a. $24

67. Slide 67: Agenda: Item 14

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 14: Amendments to the Long Term Incentive Plan BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 67

68. Slide 68: Key findings of LTIP review

    For personal use only Key findings of LTIP review  Plan remains robust 1. Keep the 5 year performance period ‒ consistent with our business cycle 2. Highly geared ‒ potential for extended ‘all or nothing’ outcomes ‒ not aligned with our lower-risk / diversified strategy BHP Billiton Limited Annual

69. Slide 69: Proposed LTIP amendments

    For personal use only Proposed LTIP amendments Review findings Proposed LTIP amendments  Introduce 25% vesting where performance 1. Highly geared equals comparator group average  Allow for more than one comparator group 2. Comparator groups  Amend ‘Median TSR’ to enable TSR to be calculated for m

70. Slide 70: Agenda: Item 15

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Item 15: Approval of grants to Executive Director BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 70

71. Slide 71: Item 15: Grants to Executive Director

    For personal use only Item 15: Grants to Executive Director  Group Incentive Scheme: ‒ 56,649 Deferred Shares(a) or ‒ 226,596 Options(a) or ‒ a combination of both  Long Term Incentive Plan (maximum award): ‒ 334,118 Performance Shares(b) under existing rules or ‒ 252,520 Performance Shares(b) und

72. Slide 72: Agenda: Items 16 & 17

    For personal use only Agenda  Chairman's address  CEO’s address  Questions  Items of business ‒Items 16 & 17: Amendments to the Constitution and the Articles of Association BHP Billiton Limited Annual General Meeting, 16 November 2010 Slide 72

73. Slide 73: Annual General Meeting

    Escondida, Chile Worsley, Australia For personal use only Annual General Meeting BHP Billiton Limited

74. Slide 74: BHP Billiton resourcing the future

    6dl Ohpbilliton resourcing the future

BHP Billiton — Shareholder Meeting (November 2010) on 6ix