Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — H1 FY17 Earnings Presentation
24 slides from Bhp's earnings presentation, Feb 21, 2017
Slide 1: Interim Results Presentation
BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 For personal use only Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: Financial results: Half year ended 31 December 2016
For personal use only Financial results Half year ended 31 December 2016 Eastern Ridge
Slide 3: Disclaimer
Disclaimer For personal use only 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
Slide 4: Financial results: Andrew Mackenzie, Chief Executive Officer
For personal use only Financial results Half year ended 31 December 2016 Andrew Mackenzie Chief Executive Officer Mt Arthur Coal
Slide 5: Interim FY17 scorecard
Interim FY17 scorecard Strong cash generation drives debt reduction For personal use only Safety Despite improvements in a range of safety measures, tragically there was a fatality at Escondida 9%1 reduction in TRIF Volume One-off events and Onshore US deferrals offset underlying release of latent c
Slide 6: Safety is paramount
Safety is paramount The health and safety of our people and communities always comes first For personal use only • Tragically, there was a fatality at Escondida during the period • Total Recordable Injury Frequency (TRIF) of 3.9 is down 9%1 TRIF performance at operated sites (Number of recordable in
Slide 7: Progress at Samarco
Progress at Samarco Committed to social and environmental rehabilitation For personal use only Avenida Beira Rio – Barra Longa November 2015 October 2016 Rehabilitation Legal developments Mine restart • Renova Foundation fully functional • Constructive Preliminary Agreement with • Restart important
Slide 8: Financial results: Peter Beaven, Chief Financial Officer
For personal use only Financial results Half year ended 31 December 2016 Peter Beaven Chief Financial Officer Eagle Ford
Slide 9: Strong financial performance
Strong financial performance Diversified portfolio and simplified structure underpins superior margins For personal use only • Underlying EBITDA of US$9.9 billion, up 65% Leading margins through the cycle (Underlying EBITDA margin2, %) • Underlying EBIT of US$6.0 billion, up US$4.6 billion 60 • Attr
Slide 10: Group EBITDA waterfall
Group EBITDA waterfall Rise in EBITDA driven by commodity prices and productivity For personal use only Underlying EBITDA variance (US$ billion) External US$3.1 billion Controllable US$0.8 billion 12 1.1 0.0 0.0 9.9 3.5 9.1 0.1 (0.2) (0.3) (0.1) (0.2) 8 6.0 4 0 H1 FY16 Price¹ Foreign Inflation Sub-t
Slide 11: Productivity lifts margins
Productivity lifts margins Over US$11 billion of productivity gains delivered over past four years For personal use only • Underlying EBITDA margin of 54% Margins supported by our productivity agenda (Underlying EBITDA margin, %) – without productivity gains, margin would have been <30%1 60 • Costs
Slide 12: Strong cash flow and balance sheet
Strong cash flow and balance sheet Simpler portfolio delivers substantial conversion of higher prices into cash flow For personal use only • Net operating cash flow of US$7.7 billion Net debt and gearing (Net debt, US$ billion) (Gearing, %) – despite US$1.3 billion working capital increase reflectin
Slide 13: Disciplined capital allocation
Disciplined capital allocation With heightened uncertainty and elevated prices, we have a bias for debt reduction For personal use only H1 FY17 • Maintenance: US$0.6 billion including deferred stripping – US$1.4 billion guidance for FY17 under revised definition of Operating Capital maintenance capi
Slide 14: Financial results: Andrew Mackenzie, Chief Executive Officer
For personal use only Financial results Half year ended 31 December 2016 Andrew Mackenzie Chief Executive Officer Olympic Dam
Slide 15: Near-term uncertainty, attractive long-term fundamentals
Near-term uncertainty, attractive long-term fundamentals Copper and oil remain our preferred long-term growth commodities For personal use only Short-term Medium-term Long-term Modest Growth in Urbanisation Political Steeper economic New supply population, and new uncertainty cost curves growth weal
Slide 16: Well placed for anticipated conditions
Well placed for anticipated conditions Our diversified portfolio, strong balance sheet and competitive growth options position us well For personal use only • Simple portfolio of tier 1 assets, diversified across our preferred Tier 1 portfolio commodities (H1 FY17 Underlying EBITDA margin, %) Iron o
Slide 17: Progress on our roadmap
Progress on our roadmap We have made significant progress across a broad suite of opportunities to grow value and returns For personal use only Productivity On track for full-year productivity guidance of US$1.8 billion (excluding impact of Escondida industrial action) The benefits of our simplified
Slide 18: Emerging stronger from the downturn
Emerging stronger from the downturn We have responded to the challenges of recent years… For personal use only Progress on our roadmap of value creation and improved returns Demerger and Over US$11 billion of US$7 billion of productivity divestments improvements Added to Onshore US 40% reduction in
Slide 19: For personal use only
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Slide 20: Appendix
For personal use only Appendix
Slide 21: BHP Billiton guidance
BHP Billiton guidance For personal use only Group FY17e FY18e Capital and exploration expenditure (US$bn) 5.6 6.3 Cash basis. Including: Maintenance 1.4 Includes non-discretionary capital expenditure to maintain asset integrity, reduce risks, and meet compliance requirements. Also includes deferred
Slide 22: BHP Billiton guidance (continued)
BHP Billiton guidance (continued) For personal use only Copper FY17e Total copper production (Mt) 1.62 Guidance for Escondida at 1.07 Mt. Pampa Norte production is expected to increase. Guidance for Olympic Dam at 160 kt - 170 kt. Guidance for Antamina production at 130 kt and zinc at 90 kt. Exclude
Slide 23: Key Underlying EBITDA sensitivities
Key Underlying EBITDA sensitivities For personal use only Approximate impact1 on FY17 Underlying EBITDA of changes of: US$ million US$1/t on iron ore price2 217 US$1/bbl on oil price3 79 US¢10/MMbtu on US gas price 26 US$1/t on metallurgical coal price 42 US¢1/lb on copper price2,4 34 US$1/t on ener
Slide 24: Debt maturity profile
Debt maturity profile For personal use only Debt balances1 (US$ billion2) 8 6 4 2 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Post FY28 US$ Euro Sterling A$ C$ Bonds3 Bonds 3 Bonds 3 Bonds Bonds Subsidiaries % of portfolio 44% 31% 11% 5% 2% 7% Capital markets 93% Asset financing 7%