Bhp Group Ltd · ASX:BHP
Bhp — RIO Tinto — Merger or Acquisition (April 2008)
36 slides from Bhp's merger presentation, Apr 30, 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.
Slide 2: BHP Billiton 2008 – Strength, Stability and Growth
BHP Billiton April bhpbilliton 2008 – Strength, Stability and Growth
Slide 3: Disclaimer
Disclaimer Rio presentation Subject no or connection of from Neither restricted Information This Markets (iii) Certain development limitation, only could The operate There results Billiton transaction, additional combinations forward-looking year-ended website expressed London reflect Slide bhpbilli
Slide 4: Disclaimer (continued)
Disclaimer None earnings actual “Registration Registration U.S. PROSPECTUS AMENDMENTS Investors (http://www.sec.gov), BHP shareholders The of States Information It officers be You References purchases. Slide bhpbilliton may the difficult Rio should INVESTORS Billiton 3of United estimated companies.
Slide 5: Today, Our past, Our future, The offer
•BHP Slide bhpbilliton Today: The OurBilliton 4offer past: future: TheA forThe world’s proven –Rio Strength, outlook Tinto track leading Stability isrecord exciting diversified and Growth mining company
Slide 6: Today: The world's leading diversified mining company
Today:5 The world’s leading diversified mining company Slide bhpbilliton
Slide 7: A significant diversified global portfolio
#1significant #3 A #4 EKATI Diamonds Metals Base Aluminium Energy Iron Metallurgical Manganese Stainless Petroleum Slide Offices Note: bhpbilliton diversified global Ore Metals 6Location Coal Diamond Steel supplier nickel producer & oil Specialty global Coal Materials ofproducer and Mine dots of ofp
Slide 8: The world's largest diversified mining company
The Top (Market B 0 60 120 180 240 Rio Vale China Norilsk Xstrata Freeport Anglo Barrick Australian Non-Australian Sources: a) Slide bhpbilliton HP Rio Tinto 10 world’s Billiton 7Shenhua American Tinto Platinum metals Gold Nickel capitalisation McMoRan Bloomberg, (a) head largest undisturbed and hea
Slide 9: Led by an experienced management team
Led Don Chairman Marius Group Alex Alberto Karen Marcus Michael Andrew •Chief a) Notes: Executive, Slide bhpbilliton Yet Chairman 15 719 931 227 30 Previously Andrew years by years Argus to Vanselow 8Executive Financial Commercial People Wood Management an Kloppers start Randolph Calderon Mackenzie(
Slide 10: Maintaining a focused core strategy
Maintaining Large, Portfolio Maintenance Focus Overriding Employer Slide bhpbilliton 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, invent
Slide 11: A unique diversified portfolio
AMetallurgical 24,000 18,000 12,000 6,000 0 FY2002 Underlying (CY2007, Diamond Energy Petroleum Aluminum Stainless Base Metallurgical Manganese Iron Note: 12 Slide bhpbilliton unique months Ore Materials 10 Historical 4,677 Aluminum 23,623 Petroleum Coal CY2007 52% Steel diversified &12 75% ending 4
Slide 12: Overriding commitment to sustainable development
Overriding Sustainable A Improves Our 2007 We www.bhpbilliton.com/bb/sustainableDevelopment.jsp A+ GRI BEST environmental STOREBRAND Dow Sustainability Member Slide bhpbilliton track aim licence reputation REPORT CHECKED Jones sustainability 11 IN record to2007/08 CLASS the be commitment development
Slide 13: Our past: A proven track record
Our past: Slide bhpbilliton 12 A proven track record
Slide 14: Completed growth projects
BHP2.1 Completed (US$bn) Antamina Typhoon Tintaya Mozal Zamzama WAIO Panda BMA Dendrobium 1.0 FY2002 Historical Source: Note: Slide bhpbilliton Billiton 13 Total Phase UG 2Acc -3.9 Oxide BHP Prod FY2003 Ohanet San Cerrejon Escondida completed Yabulu 13.1 projects Exp represents 1Billiton invested Ju
Slide 15: Most major projects on or under budget
Most Major Over Time Budget 0% 20% 40% 60% 80% 100% 120% Under Mozal Hillside Escondida Mount Spence MAC WAIO a) Notes: Ravensthorpe b) was Slide bhpbilliton Selected BHP 212% Budget 14 developments & minerals Budget 2RGP3 RGP1 RGP2 Arthur Billiton 3PACE of Phase Norte Sulphide projects Behind the N
Slide 16: Delivering superior earnings growth
Delivering Earnings (US$ 50% US$ BHP Note: FY2007 FY2006 FY2005 FY2004 FY2003 FY2002 Slide bhpbilliton 0.31 0.56 1.06 1.68 2.34 CAGR Billiton’s 15 per per share) superior share EPS EPS represents growthreported for shareholder... underlying EPS for the financial year ending 30-June. EPS in FY2002 ex
Slide 17: Ordinary dividend growth
...3.0 Ordinary (US 1 0 5 10 15 20 25 30 35 40 45 50 29% 14.5 45% 29.0 47.0 36.0 28.0 26.0 Note: FY2008 FY2007 FY2006 FY2005 FY2004 FY2003 FY2002 20.0 17.5 13.5 16.5 7.0 6.5 Slide bhpbilliton andcents CAGR increase 16 Two dividend dividends per interim in share) growth, interim dividends per share d
Slide 18: Creating considerable wealth for shareholders
Creating A BHP D 0 10,000 20,000 30,000 40,000 50,000 60,000 (A$) 18 A$48,928 A$32,318 A$39,727 A$13,445 A$10,561 A$19,848 28 Value A$10,372 30 Jun-01 A$9,098 Source: a) Slide bhpbilliton ividends/Distributions holder Dividends/distributions April June Billiton 17 ofDec-01 at Bloomberg, 2006 2007 20
Slide 19: Our future: The outlook is exciting
Our future: Slide bhpbilliton 18 The outlook is exciting
Slide 20: Chinese growth is driving demand
Chinese Change (%, 64 36 88 96 57 50 16 7 Copper (14)% (2)% (4)% China Notes: equivalent, between Slide bhpbilliton %%1997-2007(a)) 19 USA Seaborne Nickel in growth years global 2007 Other ended Seaborne isiron data consumption driving 1997 ore notIron demand yet global andavailable. Ore 2007, mater
Slide 21: China appears to have a long way to go
...and Finished China (kg/capita) 0 200 400 600 800 1,000 1,200 GDP/Capita Source: Slide bhpbilliton 5,000 20 industrialisation Germany 10,000 World steel(Jan consumption Bank; 15,000 India 2008Government Japan and 20,000 Constant urbanisation Korea, 25,000 USStatistics Rep. Dollars) 30,000 inUnited
Slide 22: China sales currently represent 20% of revenue
Sales BHP B 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 (US$m) (H1 Nth China Australia ROW Other FY02 371 431 785 1,075 1,357 1,588 2,407 2,946 3,611 3,999 5,013 5,293 Europe Japan Base Slide bhpbilliton HPAmerica 08, Billiton Metals 21 to Asia H1US$bn) China 03 Iron H2 revenue
Slide 23: India's journey has begun
India GDP (US$ 5 600 800 1,000 1 0 50 100 150 200 250 300 350 400 450 Equity China 1996 Source: a) Slide bhpbilliton 00Note: 00% BHP 2006 –22 billion) Basis India Basis the World Converted Billiton FY journey China (100=FY2002 2002 Bank, India copper has toFY Focus copper begun 2007 equivalent Econo
Slide 24: Our deep inventory of growth options
OuratIron WA NWS CMSA Mad Cerrejon Blackwater Stage Hallmark 2013 Future As Proposed <$500m Aluminium CSG Base D&SP Slide bhpbilliton deep Dog Metals 2010 23 29 WFG 1Manganese Options Pyro Newcastle February $501m-$2bn ore Opt diversified capital RBM SWR 2008 UG Energy Thebe Iron Expansion Quantum E
Slide 25: Example: Exposure to commodity price movement
Example: BHP – With Indexed (100 M 0 100 200 300 400 500 600 700 Manganese(b) Iron JFY2008: JFY2003 Note: a) b) 2008. c) Slide bhpbilliton #3 #1 etallurgical Metallurgical Iron Manganese Ore(c) global =Billiton significant 24 Historical JFY2003) ore historical JFY2004 Exposure +206-240% +408% +65-71
Slide 26: The offer for Rio Tinto
The offer Slide bhpbilliton 25 for Rio Tinto
Slide 27: Overlapping assets and US$3.7bn synergies
Overlapping Ekati Robe Queensland BHP Selected Slide bhpbilliton Billiton 26 Diavik River existing Hamersley Coal mineral Ekati Rio BHP Hail Tinto and basin Creek Billiton Diavik IO Joint Mt positions. Goonyella Goldsworthy Kennecott and RioUS$3.7bn Tinto Riverside Pinto Yandi assets, Valley ofMt Br
Slide 28: Summary of the offer
Summary Rio The industrial BHP Notes: Slide bhpbilliton Tinto 3.4:1 offer Billiton 27a) Based is logic shareholders offer ofconditional being the has believes represents of on offer made conducted the made thedeal for this volume are aon direct pre-conditional Rio aoffer being more material global T
Slide 29: Share price performance and TSR
J(Index: 600 (Price 1 0 100 Rio 500 400 300 200 BHP Source: a) Steel b) Slide bhpbilliton un-01 00For Tinto Billiton shares 28 performance the May-02 Jun-2001 IRESS. CAGR Indexed period received and CAGR Ltd Indexed Apr-03 29-Jun-2001 24% and vs = Rio Share 100) relative Rio 30% by Rio Tinto’s Share
Slide 30: Offer premium and exchange ratio
3.4:1 Rio 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 Jul-2007 06-Feb-2008 BHP 12-Nov-2007 45% Pre Source: a) Billiton b) of c) Slide bhpbilliton Exchange Based Pre-approach 31-Oct-2007. :approach Tinto 1premium Billiton’s represents 29Datastream Ltd Aug-2007 on vsshares. the BHP ratio fair (c) offer proposal v
Slide 31: Conclusion
Conclusion Focused A In Unique Capable An BHP The Slide bhpbilliton combination addition Australian core process support Billiton 30inof on strategy character; delivering to –producing has ofbelieves on Strength, the champion retail ofasynergies, remains BHP long standalone shareholders superior the
Slide 32: Q&A
Slide 31 Q&A’s bhpbilliton
Slide 33: Senior Executive Profiles
Senior32Executive Profiles Slide bhpbilliton
Slide 34: Appendix: Marius Kloppers profile
Appendix: Marius Age: Professional BE Bachelor PhD MBA Previous Prior Group Chief General Variety Played Led Other McKinsey Sasol Mintek Melbourne, Residence: Slide bhpbilliton (Chem), the from 46 to 33 –Operating Commercial Marketing Executive from BHP work President, Executive aKloppers of –petroc
Slide 35: Appendix: Marcus Randolph profile
Appendix: Marcus Age: Professional Bachelor Previous President Prior Other Chief Mining Director General Mine Melbourne, Residence: Slide bhpbilliton 52 to 34 Operating Organisation Development Strategic Executive work and Randolph the Manager, of BHP of Diamonds Marcus Acquisitions formation experi
Slide 36: Slide 35 bhpbilliton
Slide 35 bhpbilliton