Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Shareholder Meeting (November 2011)
88 slides from Bhp's shareholder meeting presentation, Nov 17, 2011
Slide 1: Annual General Meeting 2011
Nickel West, Stainless Steel Materials For personal use only Annual General Meeting 2011 BHP Billiton Limited 17 November 2011
Slide 2: Jac Nasser, Chairman
Escondida, Base Metals For personal use only Jac Nasser Chairman Annual General Meeting 17 November 2011
Slide 3: Disclaimer
Disclaimer For personal use only 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
Slide 4: Disclaimer: Exploration Targets and Mineral Resources
Disclaimer For personal use only Exploration Targets and Mineral Resources This presentation includes information on Exploration Targets (Potential Mineralisation) and Mineral or Coal Resources. Mineral Resources are compiled by: P Whitehouse (MAusIMM) – Western Australian Iron Ore (WAIO), S O’Conne
Slide 5: Hillside, Aluminium
For personal use only Hillside, Aluminium BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 5
Slide 6: Marius Kloppers, Chief Executive Officer
Marius Kloppers For personal use only Chief Executive Officer BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 6
Slide 7: John Schubert
John Schubert For personal use only Chairman Sustainability Committee Member Remuneration Committee Member Nomination Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 7
Slide 8: John Buchanan
John Buchanan For personal use only Senior Independent Director BHP Billiton Plc Chairman Remuneration Committee Member Nomination Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 8
Slide 9: Carolyn Hewson
Carolyn Hewson For personal use only Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 9
Slide 10: Carlos Cordeiro
Carlos Cordeiro For personal use only Member Remuneration Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 10
Slide 11: David Crawford
David Crawford For personal use only Retired as Risk and Audit Committee Chairman September 2011 BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 11
Slide 12: Lindsay Maxsted
Lindsay Maxsted For personal use only Chairman Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 12
Slide 13: Shriti Vadera
Shriti Vadera For personal use only Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 13
Slide 14: Malcolm Broomhead
Malcolm Broomhead For personal use only Member Sustainability Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 14
Slide 15: Keith Rumble
Keith Rumble For personal use only Member Sustainability Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 15
Slide 16: Wayne Murdy
Wayne Murdy For personal use only Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 16
Slide 17: Alex Vanselow, Chief Financial Officer
Alex Vanselow For personal use only Chief Financial Officer Chairman Investment Committee Chairman Financial Risk Management Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 17
Slide 18: Jane McAloon, Group Company Secretary
Jane McAloon For personal use only Group Company Secretary BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 18
Slide 19: Port Hedland, Iron Ore
Port Hedland, Iron Ore For personal use only BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 19
Slide 20: Andrew Mackenzie, Chief Executive Non-Ferrous
Andrew Mackenzie For personal use only Chief Executive Non-Ferrous BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 20
Slide 21: Mike Yeager, Chief Executive Petroleum
Mike Yeager For personal use only Chief Executive Petroleum BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 21
Slide 22: Marcus Randolph, Chief Executive Ferrous and Coal
Marcus Randolph For personal use only Chief Executive Ferrous and Coal BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 22
Slide 23: Karen Wood
Karen Wood For personal use only Chief People and Public Affairs Officer BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 23
Slide 24: Alberto Calderon, Chief Commercial Officer
Alberto Calderon For personal use only Chief Commercial Officer BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 24
Slide 25: Spence, Base Metals
For personal use only Spence, Base Metals BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 25
Slide 26: Outstanding performance
Outstanding performance For personal use only Attributable profit1 (US$ billion) 25 74% 20 15 10 5 0 FY2007 FY2008 FY2009 FY2010 FY2011 1. Excluding exceptional items. BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 26
Slide 27: Progressive dividend policy
Progressive dividend policy For personal use only Dividends1 FY2002-FY2011 (US cents per share) CAGR : 26% 60 H1 22% H2 Dividend rebase 40 52% 46% 20 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 1. Dividends declared in respect of the period. Source: BHP Billiton. BHP Billiton Limited Annual G
Slide 28: Delivering superior dividend growth
Delivering superior dividend growth For personal use only Dividends – Australian cents per share1 (%, compound annual growth rate) 20 17% 15 10 8% BHP Billiton 5 ASX20 0 FY2002 – FY2011 Source: Datastream. 1. ASX constituents as at 30 June 2011. Weighted average dividend for each year based on the m
Slide 29: Delivering superior shareholder returns
Delivering superior shareholder returns For personal use only Total Shareholder Return (TSR)1 (%) BHP Billiton 400 TSR 388% BHP Billiton Ltd dividends BHP Billiton Ltd price ASX20 dividends 300 ASX20 price 200 ASX20 100 TSR 89% 0 FY02 - current FY2002 – current Source: Datastream. 1. TSR calculated
Slide 30: Diversification strategy
Diversification strategy For personal use only Base Metals Iron Ore Shale Gas Potash Metallurgical Coal BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 30
Slide 31: The power of our diversified strategy
The power of our diversified strategy For personal use only EBIT margin¹ (%) 75 Petroleum Aluminium 50 Base Metals D&SP SSM Iron Ore 25 Manganese Metallurgical Coal Energy Coal Total 0 FY2002² FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009² FY2010 FY2011 1. Calculated on the basis of UKGAAP for pe
Slide 32: Disciplined approach to capital management
Disciplined approach to capital management For personal use only Sources and uses of cash¹ Underlying return on capital (US$ billion) (%) 40 Underlying return on capital 40 Acquisitions 35 Capital management 35 Cash dividends 30 Capital and exploration expenditure 30 Net operating cash flow 25 25 20
Slide 33: Growth projects
Growth projects For personal use only Base Metals Iron Ore Shale Gas Potash Metallurgical Coal BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 33
Slide 34: Olympic Dam
Olympic Dam For personal use only Olympic Dam is a world-class multi-mineral ore body and is the fourth largest known copper and gold deposit and the largest known uranium deposit . BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 34
Slide 35: Commodity price volatility
Commodity price volatility For personal use only IMF primary commodity prices: 1980 – 2011 (monthly, 1983=100) 1,600 Copper Nickel 1,200 Oil 800 400 0 Jan 1980 Dec 1987 Nov 1995 Oct 2003 Sep 2011 Source: IMF commodity prices. BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 35
Slide 36: Long term demand underpinned by emerging economic growth
Long term demand underpinned by emerging economic growth For personal use only Global GDP growth rate (% per annum) 6 Developed economies Developing economies 5 4 3 2 1 0 1900- 1920- 1930- 1940- 1950- 1960- 1970- 1980- 1990- 2000- 2010- 2020- 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 20
Slide 37: Industrialisation and urbanisation
Industrialisation and urbanisation For personal use only New Delhi Kolkata Mumbai Chennai Shanghai Beijing São Paulo Shenzhen BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 37
Slide 38: Urbanisation – China and India
Urbanisation – China and India For personal use only Urbanisation in China Urbanisation in India (million people) (million people) 1,000 1,000 930 +272m 750 750 +361m 658 +240m 600 500 500 +135m 297 360 250 250 225 0 0 1990 2010 2030 1990 2010 2030 Source: Population Division of the Department of Ec
Slide 39: Commodity intensity evolves with economic development
Commodity intensity evolves with economic development For personal use only Demand index1 250 Emerging Developed Economies Economies Corn and soybean 200 Meat Electricity 150 Copper 100 Steel 50 0 5 10 15 20 25 30 35 40 45 50 GDP per capita (2005 real US$’000, PPP basis) Source: World Bank; Brook Hu
Slide 40: Composition of exports
Composition of exports For personal use only Composition of exports (A$ billion) 400 Resources Rural Service exports 300 Manufactures Other goods 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 Source: Australian Bureau of Statistics; Reserve Bank of Australia. BHP Billiton Limited Annual General
Slide 41: Australian exports by destination
Australian exports by destination For personal use only Exports by destination (% of total) 30 2000 2010 25 20 15 10 5 0 Germany Hong Singapore Italy New United United India Korea Japan China Kong Zealand Kingdom States Source: International Monetary Fund. BHP Billiton Limited Annual General Meeting
Slide 42: Australia's employment – mining and agriculture
Australia’s employment – mining and agriculture For personal use only Base case employment requirements in commodity sectors1 (Thousand Full Time Employees) 1,600 Soft commodities 1,400 Mining 1,200 1,000 800 600 400 200 0 2010 2015 2020 2025 2030 1. Assumes zero labour productivity gains. Does not
Slide 43: Angostura Gas Project, Petroleum
Angostura Gas Project, Petroleum For personal use only BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 43
Slide 44: Growth challenges
Growth challenges For personal use only ‘Indigenous Trees Zamzama, Pakistan for Life Program’, South Africa Xiamen City, China BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 44
Slide 45: Hotazel, Manganese
Hotazel, Manganese For personal use only BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 45
Slide 46: Our Charter
Our Charter For personal use only Sustainability Integrity Respect Performance Simplicity Accountability BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 46
Slide 47: Minera Escondida Foundation School
Minera Escondida Foundation School For personal use only The Minera Escondida Foundation School in Antofagasta, Chile Minera Escondida Foundation’s Scholastic Improvement Program improves the quality of education in poorer neighbourhoods around Antofagasta, Chile. Since 2005, a social investment of
Slide 48: Improving maternal and child health in Africa
Improving maternal and child health in Africa For personal use only ‘Window of Opportunity’ project in partnership with PATH BHP Billiton Sustainable Communities made a US$25 million commitment to the new, five-year program to improve critical health and development services for up to 750,000 pregna
Slide 49: Commitment in community programs
Commitment in community programs For personal use only BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 49
Slide 50: FY2011 community commitment
FY2011 community commitment For personal use only Around US$25 billion of goods and services purchased nationally and locally US$9.9 billion paid in royalties and taxes to local, state and national governments including US$6 billion in Australia The 1% pre-tax profit committed to community was US$19
Slide 51: Our people
Our people For personal use only BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 51
Slide 52: Agenda
Agenda For personal use only Chairman's address CEO's address Questions Items of business BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 52
Slide 53: Marius Kloppers, CEO Address
Newman, Iron Ore For personal use only Marius Kloppers Chief Executive Officer Annual General Meeting 17 November 2011
Slide 54: Agenda
Agenda For personal use only • Safety • Financial performance • Short term outlook • Long term drivers of our industry • Our strategy • Petrohawk Jansen BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 54
Slide 55: Colleagues who lost their lives
Colleagues who lost their lives For personal use only Mr Thaboetsile Justice Mabale (1973 – 2010) Manganese, South Africa Mr Carel (Callie) Esterhuizen (1982 – 2011) Manganese, South Africa BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 55
Slide 56: Strong operating performance
Strong operating performance For personal use only • Record production across four commodities and ten operations – Iron Ore – Nickel matte – Manganese; and Port Hedland – Natural gas Worsley TEMCO BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 56
Slide 57: Record financial results
Record financial results For personal use only • Underlying EBIT of US$32 billion, up 62% Underlying EBIT Attributable profit1 (US$ billion) (US$ billion) 35 25 • Attributable profit (excluding exceptionals) 30 20 of US$21.7 billion, up 74% 25 15 20 15 10 • Earnings per share (excluding 10 5 5 excep
Slide 58: Emerging economies are growing at a faster rate than developed economies
Emerging economies are growing at a faster rate than developed economies For personal use only 2000-2010 Average real GDP growth rate (%) 12 BRICS 10 8 6 4 2 0 Netherlands Germany Italy Turkey Indonesia Spain United States Canada Japan India Brazil China South Africa Australia France Russia South Ko
Slide 59: A constrained supply response
A constrained supply response For personal use only • Multiple disruptions to existing supply Under delivery of production forecasts¹ (%) – Queensland metallurgical coal – Indian iron ore Copper – Chilean copper – Middle Eastern/North African oil Metallurgical coal • Under delivery of ambitious grow
Slide 60: Our tier 1, diversified resource portfolio
Our tier 1, diversified resource portfolio generates more options for shareholder value creation For personal use only Legend Saskatchewan Potash Resource 100+ years Potential Mineralisation 100+ years Onshore US Ratio (years) Petroleum¹ Minerals - Minimum Mineral Inventory life at FY11 production r
Slide 61: Resource basins supported by our 'hub based' project model
Resource basins supported by our ‘hub based’ project model For personal use only Underlying EBIT¹ (FY11) Western Australia Queensland Coal Iron Ore Execution: Daunia Hay Point Stage 3 Expansion Queensland Coal Caval Ridge Other Pre-feasibility: Saskatchewan Potash Escondida BMC Wards Well Olympic Da
Slide 62: Petrohawk – a substantial resource acquisition
Petrohawk – a substantial resource acquisition For personal use only • Total enterprise value of Acceleration of Petrohawk’s development spend ~US$15.1 billion¹ (US$ million net, real) 7,000 • Natural gas is a preferred fuel in a low carbon world 6,000 • Complements our recent Fayetteville 5,000 sha
Slide 63: A well established technology
A well established technology For personal use only First commercial Technology Development of Initial development of US shale gas US natural gas developed to lay large downhole motors the Barnett shale play production rapidly well produces diameter pipelines – accelerates – key in Fort Worth, Texas
Slide 64: Marius Kloppers, CEO Address
Newman, Iron Ore For personal use only Marius Kloppers Chief Executive Officer Annual General Meeting 17 November 2011
Slide 65: Jac Nasser, Chairman
Escondida, Base Metals For personal use only Jac Nasser Chairman Annual General Meeting 17 November 2011
Slide 66: Agenda
Agenda For personal use only Chairman's address CEO's address Questions Items of business BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 66
Slide 67: Questions
BMA, Metallurgical Coal For personal use only Questions
Slide 68: Agenda: Item 1 Financial statements and reports
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 1: Receive financial statements and reports BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 68
Slide 69: Agenda: Items 2-13 Election of Directors
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 2-13: Election of Directors BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 69
Slide 70: Shriti Vadera
Shriti Vadera For personal use only Member Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 70
Slide 71: Lindsay Maxsted
Lindsay Maxsted For personal use only Chairman Risk and Audit Committee BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 71
Slide 72: Agenda: Items 2-13 Election of Directors
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 2-13: Election of Directors BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 72
Slide 73: Agenda: Item 14 Re-appointment of auditor
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 14: Re-appointment of auditor of BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 73
Slide 74: Agenda: Item 15 Authority to issue shares
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 15: General authority to issue shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 74
Slide 75: Agenda: Item 16 Issuing shares for cash
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 16: Issuing shares in BHP Billiton Plc for cash BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 75
Slide 76: Agenda: Item 17 Repurchase of shares
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 17: Repurchase of shares in BHP Billiton Plc BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 76
Slide 77: Agenda: Item 18 Remuneration report
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 18: Remuneration report BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 77
Slide 78: Remuneration and company performance
Remuneration and company performance For personal use only Average STI reward for GMC members BHP Billiton outperformance of Index over the vs profit attributable to shareholders 2006 LTIP cycle (excluding exceptional items) (%, US$ billion) Profit attributable – excluding exceptional items (US$bn)
Slide 79: Actual CEO remuneration
Actual CEO remuneration For personal use only CEO remuneration FY2011¹ (US$) 28% Fixed Long Term Salary, pension Incentive (EV) and other benefits $3.31m $3.05m Short Term Incentive 72% $4.70m At Risk 1. Annualised view of CEO remuneration. Salary ($2,114,814). Pension contribution ($845,926). Other
Slide 80: Agenda: Item 18 Remuneration report
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 18: Remuneration report BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 80
Slide 81: Agenda: Item 19 Termination benefits
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 19: Approval of termination benefits BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 81
Slide 82: BHP Billiton termination arrangements
BHP Billiton termination arrangements For personal use only Component of pay Treatment on termination Salary + pension A payment can be made in lieu of notice. Up to 12 months’ salary + pension contributions. STI Resignation or dismissal – No cash STI payment; Deferred Shares are forfeited. Retireme
Slide 83: Agenda: Item 19 Termination benefits
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 19: Approval of termination benefits BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 83
Slide 84: Agenda: Item 20 Grants to Executive Director
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 20: Approval of grants to Executive Director BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 84
Slide 85: Item 20: Grants to Executive Director
Item 20: Grants to Executive Director For personal use only • Short Term Incentive: – Deferred Shares / Options – Vest after 2 years – With a value of approximately US$2.4 million • Long Term Incentive Plan: – Performance Shares – Vest after 5 years – Subject to performance hurdles – With a value of
Slide 86: Agenda: Item 20 Grants to Executive Director
Agenda For personal use only Chairman's address CEO's address Questions Items of business Item 20: Approval of grants to Executive Director BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 86
Slide 87: Newman, Iron Ore
For personal use only Newman, Iron Ore BHP Billiton Limited Annual General Meeting, 17 November 2011 Slide 87
Slide 88: BHP Billiton – resourcing the future
cdl Obhpbilliton resourcing the future