Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (March 2008)
22 slides from Bhp's merger presentation, Mar 25, 2008
Slide 1: Don Argus AO, Chairman, BHP Billiton
Mr Don Argus AO Chairman, BHP Billiton
Slide 2: Disclaimer
Disclaimer Slide This document has been prepared by BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") and comprises the written materials/slides for a presentation concerning the resources sector. By reviewing/attending this presentation you agree to be bound by the following conditions. Th
Slide 3: Disclaimer (continued)
Disclaimer (continued) Slide Information Relating to the US Offer for Rio Tinto plc BHP Billiton plans to register the offer and sale of securities it would issue to Rio Tinto plc US shareholders and Rio Tinto plc ADS holders by filing with the SEC a Registration Statement (the “Registration Stateme
Slide 4: Today's discussion
Today’s discussion Slide • Introduction • BHP Billiton – yesterday, today and tomorrow • Summary of the offer for Rio Tinto
Slide 5: Introduction
Introduction Slide • Joined the board November 1996,Chairman April 1999. • Chairman of BHP Billiton Limited and BHP Billiton Plc since formation • Market capitalisation grown from ~US31bn in 2001 to ~US167bn in 2008 • Four CEO’s in that period – Paul Anderson – Brian Gilbertson – Chip Goodyear – Mar
Slide 6: Today's discussion
Today’s discussion Slide • Introduction • BHP Billiton – yesterday, today and tomorrow • Summary of the offer for Rio Tinto
Slide 7: BHP Billiton's track record in production growth and value growth speaks for itself
BHP Billiton’s track record in production growth and value growth speaks for itself Slide Notes: a) Source: Rio Tinto production numbers sourced from 2006 Annual and 2007 Half-Year Reports. Note: Production shown for the comparable 12 months ending 30-June for both BHP Billiton and Rio Tinto. Conver
Slide 8: A record of growth driven from a unique diversified portfolio
A record of growth driven from a unique diversified portfolio, balanced across high margin commodities… Slide Underlying EBITDA (12 months, US$bn) Underlying EBITDA Margin (a) (CY2007, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Bill
Slide 9: Strong cash flow - delivering value growth through reinvestment and return
… which generates strong cash flow - delivering value growth through reinvestment and return to shareholders Slide 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 H1 H2 1500 3000 4500 6000 7500 9000 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007
Slide 10: BHP Billiton's future is assured
BHP Billiton’s future is assured Slide Boffa/Santou Refinery 2010 As at 29 February 2008 Proposed capital expenditure <$500m $501m-$2bn $2bn+ SSM Petroleum D&SP Energy Coal Aluminium Iron Ore Base Metals Met Coal Manganese CSG 2008 Execution Pyrenees Samarco Neptune Shenzi WA Iron Ore RGP 4 NWS T5 A
Slide 11: BHP Billiton is the largest diversified global mining company
BHP Billiton is the largest diversified global mining company Slide Sources: Bloomberg, Datastream as at 20-Mar-2008. Note: (a) Rio Tinto undisturbed market cap as at 31-Oct-2007 Top 15 metals and mining companies (Market capitalisation as at 20-Mar-2008, US$bn) (a)
Slide 12: ...and has created considerable wealth for global investors so far...
…and has created considerable wealth for global investors so far… Slide BHP Billiton Plc (a) (GBP) Source: Bloomberg, Datastream as at 20-Mar-2008 a) Dividends/distributions assumes that the dividends are received in cash and reinvested in BHP Billiton. Includes the value of bonus shares distributed
Slide 13: Our message to BHP Billiton shareholders
Our message to BHP Billiton shareholders Slide • BHP Billiton is a strong company today and will be with or without Rio Tinto – A superior track record of delivering shareholder value – A deep and diversified portfolio of resources assets – Excellent management of those assets – Genuinely global ope
Slide 14: Today's discussion
Today’s discussion Slide • Introduction • BHP Billiton – yesterday, today and tomorrow • Summary of the offer for Rio Tinto
Slide 15: Unlocking value: Why a combination with Rio Tinto?
Unlocking value: Why a combination with Rio Tinto? 1 2 3 4 5 Slide Combined entity will have a unique portfolio of tier 1 assets – Highly complementary large-scale, low-cost, long-life assets – Strengthened asset portfolio and superior future growth options Unparalleled exposure to overlapping miner
Slide 16: BHP Billiton's 45% premium is a substantial value uplift
BHP Billiton’s 45% premium is a substantial value uplift, prior to the pro rata share of synergies… Slide Source: Datastream as at 20-Mar-2008 a) Exchange ratio assumes 100% BHP Billiton Ltd shares for each Rio Tinto Ltd share and BHP Billiton shares for each Rio Tinto plc share consisting of 80% BH
Slide 17: ...and the market is setting Rio Tinto's price in line with our offer terms
...and the market is setting Rio Tinto’s price in line with our offer terms Slide Source: Datastream as at 20-Mar-2008 a) Implied offer value between 08-Nov-2007 and 05-Feb-2008 assumes an exchange ratio of 3.0 BHP Billiton Ltd shares for each Rio Tinto Ltd share and 3.0 BHP Billiton shares for each
Slide 18: Legitimate questions for Rio Tinto shareholders
Legitimate questions for Rio Tinto shareholders Slide • Assuming a satisfactory regulatory outcome, Rio Tinto shareholders will be faced with 2 choices: – Accept BHP Billiton’s offer, which is priced at a 45% premium to the pre- approach trading valuations of the two companies; or – Reject BHP Billi
Slide 19: bhpbilliton
édé bhpbilliton @ bhpbilliton
Slide 20: bhpbilliton
iy sé bhpbilliton
Slide 21: Slide 21
Slide 22: Slide 22