Bhp Group Ltd · ASX:BHP
Bhp — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2017
14 slides from Bhp's conference presentation, May 16, 2017
Slide 1: Delivering value and returns
Delivering value and returns Andrew Mackenzie Chief Executive Officer 16 May 2017 Yandi
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or
Slide 3: Value and returns are at the centre of everything we do
Value and returns are at the centre of everything we do Simple portfolio Distinctive enablers Shareholder value and Charter Values and Diversified commodities returns culture of connectivity Safety, productivity and Tier 1 upstream assets operational excellence Technology and Attractive geographies
Slide 4: Disciplined and transparent capital allocation
Disciplined and transparent capital allocation • Our Capital Allocation Framework is embedded in every capital Operating Capital decision we make productivity productivity – facilitates optimal balance between value accretive Net operating cash flow investments and cash returns • Framework aligned w
Slide 5: Delivery of our plans has increased base value
Delivery of our plans has increased base value • Our actions have increased the base value1 of our operations over Our actions increased base value by over 17% at spot prices the past 12 months (Value at spot prices2) >17% – at spot prices, we have added over 17% – at consensus prices, we have added
Slide 6: Broad suite of opportunities to deliver further gains
Broad suite of opportunities to deliver further gains • Our plans offer the potential to grow base value by 50% Broad suite of opportunities offer 50% potential upside to current base value – further cost reductions support 10% value uplift (Value at consensus prices3) – latent capacity options equi
Slide 7: Cost efficiencies – focused on further gains
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Cost efficiencies – focused on further gains • US$11 billion productivity gains embedded from FY12 to FY16 Future cost efficiencies underpin significant value creation (Value at consensus prices4) • Further cost redu
Slide 8: Latent capacity – attractive returns, limited risk
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Latent capacity – attractive returns, limited risk • Latent capacity options among our most attractive opportunities Highly capital efficient latent capacity options Note: Bubble size (Returns2, %) represents value4
Slide 9: Onshore US – value and flexibility
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Onshore US – value and flexibility • Price and timing of entry were not optimal and initial pace of Incremental investment scenario at consensus prices1,2 investment was too rapid (ROIC on incremental capital1, %) (M
Slide 10: Growth projects – timed for value and returns
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Growth projects – timed for value and returns • Rich opportunity set across commodities and time periods Strong pipeline of growth options aligned with market windows (Returns2, %) – aggregate unrisked value of US$25
Slide 11: Exploration – positive results reduces risk of future wells
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Exploration – positive results reduces risk of future wells • Highly prospective exploration program Significant exploration potential over the next three years (Value1, BHP share) – multi-billion barrel risked poten
Slide 12: Technology – lowers costs and unlocks resource
Cost efficiencies Latent capacity Onshore US Growth projects Exploration Technology Technology – lowers costs and unlocks resource • We have a broad suite of technology initiatives to lower costs, Technology presents a significant opportunity to create further value unlock resource and improve safet
Slide 13: Value and returns are at the centre of everything we do
Value and returns are at the centre of everything we do • Our plans have delivered value and increased returns over the We expect our plans to drive significant improvement in returns past year (ROCE1, nominal %) 30 – increased the base value of our operations by 12% to 17% – significant improvement
Slide 14: Slide 14
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