Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (May 2008)
26 slides from Bhp's merger presentation, May 19, 2008
Slide 1: Sales Desk Update
Sales Desk Update Alberto Calderon, Chief Commercial Officer 14 May 2008 Sales Desk Update Alberto Calderon, Chief Commercial Officer 14 May 2008
Slide 2: Disclaimer
Disclaimer Page 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 BHP Billiton's offers for Rio Tinto Limited and Rio Tinto plc (“Rio Tinto”). By reviewing/attending this presentation
Slide 3: Disclaimer (continued)
Disclaimer (continued) Page Cautionary Note to US Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under exis
Slide 4: BHP Billiton Petroleum update
Resourcing the future BHP Billiton Petroleum update Merrill Lynch conference Update on growth Page
Slide 5: BHP Billiton Petroleum: Reserve misconceptions corrected
BHP Billiton Petroleum Reserve misconceptions corrected Bass Strait NWS Page • These assets can be very long life – BHP Billiton Petroleum targets +20 year life assets • Proved Reserves 1,353 mmboe PLUS probable Reserves plus 2C Contingent Resources 2,241 mmboe = Total Resources 3,594 mmboe • With c
Slide 6: bhpbilliton
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Slide 7: Financial outlook is underpinned by growth and price
BHP Billiton Petroleum Financial outlook is underpinned by growth and price Liquid Gas Page FY07 FY08E FY09E FY10E FY11E BHP Billiton net production forecast (mmboe/yr) Gas and LNG contracts pricing structure (Contract breakdown) • Forecast volume growth of ~10% CAGR to FY11, underpinned by projects
Slide 8: Inventory of future projects under design and evaluation
BHP Billiton Petroleum Ahead: Inventory of future projects under design and evaluation Mad Dog West (23.9%) Puma (29.8%) Shenzi N (44%) Neptune N (35%) Knotty Head (25%) Macedon (71.43%) Thebe (100%) Scarborough (50%) Browse LNG (10.5%) Angostura Gas (45%) OIL GAS LNG Turrum (50%) NWS CWLH (16.67%)
Slide 9: An E&P player with the power and reach of a super-major
BHP Billiton Petroleum An E&P player with the power and reach of a super-major Page Market capitalisation (US$ bn April 2007) • Credibility and stature that Petroleum could not secure in its own right • A unique offer to major resource holder governments, NOC’s and other potential partners – The cor
Slide 10: Merrill Lynch conference: Update on growth
Resourcing the future BHP Billiton Petroleum update Merrill Lynch conference Update on growth Page
Slide 11: Diversified and balanced across high margin commodities
Merrill Lynch Conference Diversified and balanced across high margin commodities Page Underlying EBITDA (12 months, US$bn) Underlying EBITDA margin (a) (CY07, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Billiton’s half-year financial
Slide 12: Significant price increases across all product groups
Merrill Lynch Conference Significant price increases across all product groups Page 552% 512% 337% Met. Coal Manganese Iron Ore 421% 228% 90% Copper Nickel Aluminium 491% 346% 163% Uranium Oil Energy Coal a) Hard coking coal based on Peak Downs/Goonyella/Hay Point FOB. JFY2008 forecast prices calcul
Slide 13: Our Carbon Steel Materials assets are Tier 1
Merrill Lynch Conference Our Carbon Steel Materials assets are Tier 1 27.4 103.5 62.5 1.1 0.6 3.0 Page Source: BHP Billiton 2007 Annual Report, 2008 Interim Financial Results Announcement, Goldman Sachs JBWere Research. a) Iron equivalent production base d on coking coal and manganese production con
Slide 14: Escondida demonstrates the true value of Tier 1 assets
Merrill Lynch Conference Escondida demonstrates the true value of Tier 1 assets Page 1,000 1,200 1,400 1,600 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Escondida Norte + Sulphide Leach Phase IV + Laguna Seca Concentrator Oxide Plant Expansion Phase 3.5
Slide 15: Staged development of Olympic Dam appears the key
Merrill Lynch Conference Staged development of Olympic Dam appears the key 71 6 33 180 150 190 190 730 Copper kt p.a. Gold koz p.a. Expansion stages 1.2&1.3 1.1 2.0 3.0 Today Full produc- tion Page a) Does not include silvers approximate $1 per tonne. Source: Resources, metal grades and recover rate
Slide 16: Update on growth
Resourcing the future BHP Billiton Petroleum update Merrill Lynch conference Update on growth Page
Slide 17: Copper equivalent: care required for future projections
Update On Growth Copper equivalent: care required for future projections Page Approach • Converting all production to a common basis allows volumes of different commodities to be aggregated and compound annual growth rates per annum (CAGR) to be calculated • Copper equivalent conversion achieves thi
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Slide 22: BHP Billiton has an attractive growth profile of significant scale
Update On Growth BHP Billiton has an attractive growth profile of significant scale Page 2,000 4,000 6,000 8,000 10,000 12,000 14,000 CY07 CY08 CY09 CY10 CY11 CY12 Copper Equivalent Tonnes '000 Production in copper equivalent tonnes Simple Copper Equivalent • Focused on deliverable growth over the n
Slide 23: Growth capital expenditure is focused on high margin commodities
Update On Growth BHP Billiton’s growth capital expenditure is focused on high margin commodities Page Source: BHP Billiton analysis. EBIT margin excludes third party trading. Note: BHP Billiton margins are actual CY07 margins. Carbon Steel Materials Non-Ferrous Energy Margins matter • Cu equivalent
Slide 24: Growth capital expenditure is focused on high margin commodities
Update On Growth BHP Billiton’s growth capital expenditure is focused on high margin commodities Page 64% 61% 47% 47% 37% Copper Petroleum Nickel Iron Ore Aluminium EBIT Margin % EBIT Margin % 20% 46% 63% 41% 14% Aluminium Iron Ore Copper Uranium Energy Coal Source: BHP Billiton analysis. Note: BHP
Slide 25: Capital cost and risk matter
Update On Growth Capital cost and risk matter Page Growth in Copper Equivalent Tonnes (CY07-12) Production growth from brownfield expansions vs greenfield development 1,000 1,500 2,000 2,500 3,000 BHB Billiton Rio Tinto Brownfield Greenfield 82% 78% 22% 18% Source: BHP Billiton analysis. Rio Tinto e
Slide 26: bhpobilliton
Mm PY | bhpobilliton resourcing the future