Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — H1 FY2006 Earnings Presentation
49 slides from Bhp's earnings presentation, Feb 15, 2006
Slide 1: Results - Interim
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Slide 3: Results - Interim
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Slide 5: Results - Interim
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Slide 6: Revenue, Underlying EBITDA and EBIT
Revenue (with JV share of revenue) Underlying EBITDA die EBIT —Profit:-fromo A Sarees ie
Slide 7: Underlying EBIT by Customer Sector Group
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Slide 10: Total cost variance - US$(795) million
Total cost variance - US$(795) million
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Slide 12: Underlying EBIT to profit reconciliation
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Slide 13: Results - Interim
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Slide 14: Industry cost pressures and skills shortage headlines
TO MH6§$§. (‘itis iin “Show us the money: workers cash in on skills crisis” is « “No relief in site for miners — project vs delays and cost pressures unlikely to “Australia....has $420 billion worth) eee case inthe short term” of projects in the pipeline” “Developing new «OKs metals deposits |» J Sk
Slide 15: CY2006
fia CY2006
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Slide 19: Aseria nn
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Slide 23: Cash flow
Net interest paid Available cash flow Capital expenditure Exploration expenditure ~
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Slide 29: H1 FY2006 comparison
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Slide 32: Projects delivered
projects delivered since JL tll tik: Oe LY a ay hee, Ye eT cn 29 projects + 2 bolt on 7 — / acquisitions ——=—~«||_~=s«;US$279 millionsavings__ _ US$67 billion LLL
Slide 33: Projects under development
Nl: iy ) gre CH na AON MN MIN Hoo ii Worsey development capil (Australia) — 86% Alumar Refinery Expansion i i Th On time and (Brazil) - 36% Alumina Mid CY08 2 million tpa budget Escondida Sulphide Leach (Chile; 480,000 ipa copper On time and 75K (Chie) | Copper H2CY06 cathode budget Spence (Chile) ~
Slide 34: Projects under development: coal and nickel
Blackwater Coal preparation plant (Australia) — 50% Met Coal Mid CY06 New coal handling and processing facility to replace the ree existing plants Six months behind schedule. On revised budget (*) BMA Phase 2 (Australia) - 50% Met Coal H2 CY06 2 million tpa clean coal On time and budget Ravens thorp
Slide 35: Projects under development: petroleum
Atlantis South (US) -— 44% Oil/gas review () 200,000 barrels per day and 180 million cubic feet gas per day Schedule under review. On revised budget Zamzama Phase 2 (Pakistan) - 38.5% Gas Q3 CY07 150 million cubic feet gas per day per day On time and budget Neptune (US) - 35% Oil/Gas End CY07 50,000
Slide 36: Projects under development: later start-ups
Mi Linn i Douglas-Middleburg Optimisation — wocyo7 | Optimisation of existing reserve Energy Coal base Koala Underground (Canada) — 80% Worsley Efficiency and Growth . (Australia) - 86% Alumina H2 CY08 800,000 tpa Maruwai (Indonesia) - 100% MetCoal H1 CY09 5 million tpa clean coal Western Australia
Slide 37: Project delivery record: budget vs actual
Our Share of Capex Initial Production Date Project Budget Actual Budget Actual USSM USSM Antamina (Peru) - 33.75% Q2 CY01 Q2 CY01 Typhoon (US) - 50% Q3 CY01 Q3 CY01 Tintaya Oxide (Peru) - 99.9% Q2 CY02 Q2 CY02 _| Escondida Phase IV (Chile) - 57.5% Q3 cY02 Q3 CY02 | San Juan Underground (US) - 100% Q
Slide 38: Project delivery record: budget vs actual
Project WA Iron Ore accelerated expansion (Australia) — 85% Our Share of Capex Budget USSM Actual US$M Initial Production Date Budget Q2 CY04 Actual Q2 CY04 NWS Train 4 (Aus tralia) - 16.7% Mid CY04 Mid CY04 ROD (Algeria) - 36% Q4 CY04 Q4 CY04 GoM Pipelines Infrastructure (US) — 22/25% Q4 CY04 Q4 CY
Slide 39: Price sensitivities
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Slide 40: Underlying EBIT and EBITDA
A TN NA i iit TINTING —O a US$ milion FY2006(1} FY2005 (1) FY2004 FY2003 FY2002 Ht H1 H2 H4 H2 H1 H2 H1 H2 Underlying EBIT 6671 4665 5,256 2,183 3,306 1,659 1,822 1,596 Depreciation & Amortisation 1,300 954 ; 945 1,073 876 1,006 872 Underlying EBITDA 7,971 619 3,128 4,378 2535 2,828 2,468 US$ millio
Slide 41: Non-GAAP measures by business
Hi or ar measures used within this oresentatior iH ne US$ milion ~ H1 2006 (1) Petroleum Base Metals Energy Coal Tumover 2,980 4,031 1,768 Underlying EBIT 14% 1,893 205 Underlying EBIT margin @ } 48.5 47.0 11.6 Tumover from third party poductactivities 587 481 370 EBIT from third party product activ
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Slide 44: A$1.5bn off-market buy-back
A$1.5bn (c. US$1.1bn) Represents 1.9% of BHP Billiton Ltd issued share capital (1.2% of DLC)! Flexibility to vary size depending on shareholder demand and the Buy-Back Price Shareholders may tender their shares at 7 specified discounts from 8% to 14% inclusive (at 1% intervals) to the Market Price o
Slide 45: Buy-back tender period and tax value
3 week tender period opens 13 March 2006 and closes at 7pm, 31 March 2006 Shares acquired on or before 16 February 2006 will generally comply with the 45- day rule (qualify for the benefit ofdividend franking) Shareholders will be able to buy shares in BHP Billiton Ltd on or after the ex-date of Mon
Slide 46: Buy-back eligibility and scale back
Shares acquired before the Buy-Back ex-date (Monday, 20 February 2006) will confer an entitlement to participate in the Buy-Back Ineligible shareholders - US and Canadian shareholders, other Excluded Foreign Persons ADRs and Restricted Employee Shares are noteligible to be tendered into the Buy-Back
Slide 47: Buy-back timetable
Cutoff date for franking credit entitement under 45-day rule’ Ex-date for Buy-Back entitlement? Buy-Back Record Date Mail-out of Buy-Back booklet and tender forms completed by Buy-Back tender period opens Buy-Back tender period closes (7pm Melbourne time) Announcement of Buy-Back Price and any scale
Slide 48: Illustrative tax consequences
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