Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (May 2008)
38 slides from Bhp's merger presentation, May 6, 2008
Slide 1: Filed by BHP Billiton Pursuant to Rule 425
Filed by: BHP Billiton Plc and BHP Billiton Limited Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Rio Tinto plc Commission File No.: 001-10533 The following are slides comprising an investor presentation that was first given on April 30, 2008, and was subsequently amended to
Slide 2: BHP Billiton – Strength, Stability and Growth
BHP 2008 May Billiton – Strength, Stability and Growth
Slide 3: Disclaimer
Disclaimer agree the and Billiton representation use omissions constitute aof jurisdiction US distributed Information This professional or timing capacity, speak “targets”, uncertainties regarding Tinto those ability regulatory successful political, results BHP ended unknown forward Billiton’s which
Slide 4: Disclaimer (continued)
Disclaimer years estimated BHP shareholders any U. HOLDERS ANY Investors the Holders statement made foreign Information may directors themselves You privately Slide PROSPECTUS None also Registration negotiated be “Registration 3AMENDMENTS will inbe your Prospectus of for issuers References future (h
Slide 5: BHP Billiton Today
BHP Billiton Today: Slide 4 The world’s – Strength, leading Stability diversified and Growth mining company Our past: A proven track record Our future: The outlook is exciting The offer for Rio Tinto
Slide 6: Today: The world's leading diversified mining company
Today:5 The world’s leading diversified mining company Slide
Slide 7: A diversified portfolio of global businesses
Metallurgical #1 traded Energy #4 export Petroleum A and Aluminium Diamonds Note: Slide diversified significant global production 6Location metallurgical thermal Coal supplier Aluminium &Base Iron oil Specialty global Coal coal of business and Metals Ore dots of Base of portfolio coal gas seaborne S
Slide 8: The world's largest diversified mining companies by market capitalisation
The Tinto Top (Market Australian 240 BHP Rio Vale China Norilsk Xstrata Freeport Anglo Barrick Sources: Slide 180 10 world’s Billiton 7Shenhua American Platinum metals Gold Nickel capitalisation 120 McMoRan Bloomberg, (a) head largest 60and 0office mining diversified Datastream. as Non-Australian at
Slide 9: Led by an experienced management team
Led Don Chairman Marius Group Alex Marcus Alberto •Chief Chairman 15 19 31 9Previously 27years Michael Karen •Chief Andrew •Chiefby years Argus Notes: was Slide Yet 30 Vanselow 8Commercial Financial Executive Management an Kloppers 27Randolph Previously Chief years to Calderon at resources years and
Slide 10: Maintaining a consistent strategy focus
Maintaining Large, Portfolio Maintenance Focus Overriding Employer Slide 9on low-cost, diversified the export ofcommitment our choice, extraction of aorientated commitment expandable deep by anddiversified commodity, ofto a upstream preferred products ethics, assets to our safety, inventory customer
Slide 11: A unique diversified portfolio
A unique 24,000 CY2007 FY2002 23,623 4,677 Non Metallurgical Carbon Underlying (CY2007, Diamond 34% Energy Petroleum Aluminium Stainless 52% Base Note: 12 Slide months Ferrous Specialty Materials Metals 10 Historical 18,000 Petroleum Coal Manganese Steel diversified &12 75% ending EBITDA 43% Special
Slide 12: Overriding commitment to sustainable development
Overriding Sustainable – We www.bhpbilliton.com/bb/sustainableDevelopment.jsp Slide A Improves Our aim track 11 reputation torecord be commitment the development a business ability of as being an to ethical, that to attract valued isethics, fundamental creates responsible and bysafety, our retain a
Slide 13: Our past: A proven track record
Our past: Slide 12 A proven track record
Slide 14: BHP Billiton has completed projects invested in growth
BHP Billiton Completed Antamina FY2008 (US$bn) WAIO—Area NWS Escondida Spence Genghis Historical FY2008YTD FY2007 FY2006 FY2005 FY2004 FY2003 FY2002 22.7 16.0 14.6 13.1 3.9 2.1 1.0 Source: Slide 13 Train BMA BHP Khan Typhoon completed Phase Norte projects 4 Billiton invested ROD Phase CAtlantis Mt P
Slide 15: Most major projects delivered on budget and schedule
Most Major 120% Over Time Budget Under Mozal Notes:a) for budget Slide theBudget 14 developments 100% minerals Budget 2status and Hillside Selected 136% 80% Behind ofAhead development the 3of 60% projects Escondida Ravensthorpe have the Schedule of40% Schedule initial been >US$100m 20% projects Esco
Slide 16: Delivering superior earnings growth for shareholders
Delivering Earnings (US$ 50% US$ BHP Note: FY2007 FY2006 FY2005 FY2004 FY2003 FY2002 Slide0.31 0.56 1.06 1.68 2.34 CAGR Billiton’s 15 per per share) superior share EPS EPS represents growthreported for shareholders… underlying EPS for the financial year ending 30-June. EPS in FY2002 excludes the res
Slide 17: Ordinary dividends per share growth
… 45 Ordinary (US 50 Full 29% increase 29.0 20.0 17.5 13.5 16.5 7.0 6.5 47.0 36.0 28.0 26.0 14.5 13.0 FY2002 Note: Slide and cents year CAGR 16 Two 40 dividend 45% FY2003 35 dividend dividends per interim 30in share) 25 dividend growth, FY2004 20 Interim dividends per 15share 10 with interim FY2005
Slide 18: Creating considerable wealth for shareholders
Creating A BHP 60,000 (A$) Dividends/Distributions 18 A$48,928 28 Value 30 Jun-01 Source: Slide shareholders. holder April June Billiton 17 atDec-01 50,000 Bloomberg, 2002 2004 2006 2001 2003 2005 2007 2008 considerable of 1,000 Ltd(a) A$10,561 A$13,445 A$32,318 A$10,372 A$9,098 A$19,848 A$39,727 40
Slide 19: Our future: The outlook is exciting
Our future: Slide 18 The outlook is exciting
Slide 20: Chinese demand driving global consumption growth
7 Chinese Change (%, 64 50 88 16 96 36 %1997-2007(a)) 57 (14)% Seaborne (2)% Nickel (4)% China Energy Notes: % in growth equivalent, between Slide 19 USA global Copper Seaborne years Iron 2007isiron Other Ore consumption endeddriving data 1997 ore global not demand yet materials andavailable. 2007,
Slide 21: China appears to have a long way to go
.and Finished China (kg/capita) 1,200 0 GDP/Capita Source: Slide 5,000 industrialisation 20 1,000 Germany 10,000 World steel 800 (Jan consumption Bank; 15,000 India 600 2008400 and Government Japan 20,000 Constant 200 urbanisation Korea, 025,000 USStatistics Rep. Dollars) 30,000 in United China for
Slide 22: Sales by geography and China revenue
SalesAmerica 5,500 (US$m) FY02 Base BHP 5,013 5,293 3,999 3,611 2,946 2,407 1,588 1,357 1,075 785 431 371 Nth China Australia ROW Other Slide Europe Japan Billiton Metals 21 to Asia 5,000 H1China 034,500 Iron H2 revenue sales currently 03 Ore 4,000 revenue H1SSM from 04 represent 3,500 H2 China geog
Slide 23: India: the China journey has begun
India (US$ GDP BHP (100=FY2002 [Graphic China 500 FY Traded Equity Source: Slide China 450 Billiton –22 billion) India Basis 100% the World 400 Appears 2002 journey 1996 350 copper Basis sales Bank, FY300 2006 Here] has India toequivalent Focus 250 China) begun 2007 200 Economics, 150 sales 100volum
Slide 24: Our deep diversified growth project inventory
2 Our CMSA NWSatdeep 1 Wards Life Stage LNG GEMCO SWR 5 Alumina Pyrenees 2013 Future As < $ Energy Aluminium CSG Met Base Iron Slide SSM Manganese D&SP Petroleum $501m—$ $2bn+ <$ Coal Ext Ore Heap & WA $500mdiversified Metals 2010 DRC Quantum 23 29 RGP 2NWS Worsley Iron Options MKO Coal Nth Kipper P
Slide 25: Example: exposure to commodity price growth
Example: •– Indexed (100 700 JFY2003 Metallurgical Iron Note: a) 2008. benchmark Slide With BHP #3 #1 Metallurgical 600 Ore(c) global =24 Historical b) Billiton significant JFY2003) historical 500 Manganese JFY2004 Exposure FOB supplier JFY2008: 400 Coal(a) has coal nominal prices. 300 future commod
Slide 26: The offer for Rio Tinto
The offer Slide 25 for Rio Tinto
Slide 27: Overlapping mineral positions and synergies
Overlapping Ekati Resolution, Mineral WA Hunter Queensland BHP Rio Selected Joint Slide Tinto Iron Billiton 26 and Valley Sands existing Ore Diavik Pinto Coal mineral Coal BHP Valley basin Billiton andpositions. Kennecott and RioUS$3.7bn Tinto assets, of synergies projects and concessions.
Slide 28: Summary of the offer for Rio Tinto
Summary Rio The of BHP Notes: Slide BHP Tinto 3.4:1 offer Billiton 27a)Billiton Based is shareholders offer ofconditional being the has believes represents and on offer made made the Rio for this volume are aon direct Tinto pre-conditional Rio aoffer being more material Tinto which to weighted istha
Slide 29: Indexed share price performance and TSR
(Index: 600 Jun-01 (Price 500 BHP 0 Rio Source: Assumes Slide Oct-2007. 100 Tinto 500 400 Billiton 28 200 performance May-02 Jun-2001 IRESS. 400 300 Bluescope CAGR Indexed 300300 200 and CAGR Ltd Indexed 400 Apr-03 a)100 200 24% and vs = Rio Share For 500 100) relative Rio Steel 30% 100 0 Rio Tinto’
Slide 30: Offer exchange ratio and premium to Rio Tinto
3.4:1 Rio 06-Feb-2008 12-Nov-2007 45% Pre 3.6 Jul-2007 Source: BHP the Billiton’s Slide Rio :approach Tinto 1premium Billiton’s Billiton represents 293.4 Tinto Datastream Aug-2007 approach vs : 1BHP Plc fair Board 3.2 (c) offer proposal ashares :value 45% Billiton 1to Sep-2007 (as (01-Nov-2007). for
Slide 31: Conclusion
•?Conclusion Slide A The Focused In BHP An Unique Capable combination addition Australian 30 core process support Billiton inon of strategy –character; to delivering producing Strength, has ofbelieves on the champion of retail a synergies, remains BHP long standalone shareholders stability the super
Slide 32: Questions and Answers
Questions Slide 31 and Answers
Slide 33: Senior Executive Profiles
Senior32Executive Profiles Slide
Slide 34: Appendix: Don Argus profile
Appendix: Don Term Other (current Directors Distinctions finance, —Griffiths •Other: Slide Awarded Chairman Director Member Former Honorary Harvard Fellow Co-Patron Argus 33 of directorships • Senior and office: of Director Managing Chairman University of the Don –University Degrees:—Monash Certifie
Slide 35: Appendix: Marius Kloppers profile
Appendix: Marius Age: Professional Previous – •Other Slide Bachelor PhD MBA Chief Prior Led Sasol Mintek Variety Group Chief General 46 34 the work from to –Marketing Commercial from Kloppers Executive Operating Executive –BHP petrochemicals of team the Manager, of Marius materials Massachusetts exp
Slide 36: Backup Slides
Backup Slide 35Slides
Slide 37: Offer price relative to Rio Tinto and BHP Billiton share prices
Thethe 06-Feb-2008 3.6 Jul-2007 12-Nov-2007 45% Pre 155 Feb-2008 Rio $138.2 $147.63 Source: plc BHP for Slide share :approach Tinto 150 3.4:1 1premium Billiton’s 363.4 month Datastream 145 Aug-2007 consisting vs Limited offer Mar-2008 : 1BHP 140 fair 3.2 prior (c) offer proposal approach represents
Slide 38: Slide 37
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