Slide 1: Results presentation cover letter to ASX and NYSE
For personal use only 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 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: Financial results, year ended 30 June 2015
For personal use only Yandi Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer Peter Beaven Chief Financial Officer 25 August 2015
Slide 3: Disclaimer: forward-looking statements
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
Spence Escondida For personal use only Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer 25 August 2015
Slide 5: Our unique portfolio will create value and underpin dividends through the cycle
Our unique portfolio will create value and underpin dividends through the cycle For personal use only • Asset quality and operating performance support margins and cash flow – net operating cash flow of US$17.8 billion and EBITDA margin of 50% – US$4 billion productivity target achieved two years ah
Slide 6: The health and safety of our people is our priority
The health and safety of our people is our priority For personal use only Despite our goal to achieve zero fatalities, tragically we lost five colleagues in FY15 Total Recordable Injury Frequency (TRIF) (number of recordable injuries per million hours worked1) 10 8 6 down 53% 4 2 0 FY06 FY07 FY08 FY
Slide 7: Strong margins underpin robust cash flow
Strong margins underpin robust cash flow For personal use only Underlying EBITDA Leading margins through the cycle (Underlying EBITDA margin2, %) • US$21.9 billion, down 28% 60 Underlying attributable profit • US$6.4 billion, down 52% 50 Net operating cash flow • US$17.8 billion, down 25% 40 Capital
Slide 8: Record production volumes
Record production volumes For personal use only • Production1 from our core portfolio2 grew by Production growth from our key commodities 27% over the last two years (production volumes, % change, FY15 versus FY14) – record Western Australia Iron Ore production of 254 Mt3 Petroleum liquids – record
Slide 9: Sustainably lowering unit costs
Sustainably lowering unit costs For personal use only • Over US$10 billion of annualised productivity-led Unit costs continue to fall rapidly3 gains1 delivered so far (US$ per copper equivalent tonne) – US$4 billion target achieved two years ahead of schedule – unit costs reduced by >30% from their
Slide 10: Financial results, Peter Beaven
For personal use only Macedon Financial results Year ended 30 June 2015 Peter Beaven Chief Financial Officer 25 August 2015
Slide 11: Resilient in a challenging environment
Resilient in a challenging environment For personal use only Underlying EBIT variance (US$ billion) 27.0 Uncontrollable (-US$14.0 billion) Controllable (+US$3.8 billion) 22.1 18.0 0.5 2.7 (1.3) 11.9 1.2 1.8 (1.1) 9.0 1.6 8.1 (0.4) (15.2) 0.0 Growth volumes energy FY14 Exchange FY15 Price¹ Sub-total
Slide 12: Petroleum: strong operating performance
Petroleum: strong operating performance For personal use only • Production increased by 4% to a record 256 MMboe, supported by a 67% increase in Onshore US liquids • The rise in non-cash costs reflects higher depreciation and amortisation charges in Onshore US and impairment charges associated with
Slide 13: Copper: improved efficiencies and lower costs
Copper: improved efficiencies and lower costs For personal use only • A 14% decline in unit cash costs1 at our operated copper assets partially offset price weakness • Higher non-cash charges largely reflected a US$199 million impairment at Cerro Colorado, higher depletion of capitalised stripping a
Slide 14: Iron Ore: exceptional margins through the cycle
Iron Ore: exceptional margins through the cycle For personal use only • WAIO production increased by 13% to a record 254 Mt1 reflecting the ramp-up of Jimblebar and productivity gains across the supply chain • WAIO unit cash costs2 fell 31% to less than US$19 per tonne for the year, and to US$17 per
Slide 15: Coal: profitable in a tough environment
Coal: profitable in a tough environment For personal use only • Queensland Coal production increased by 13% to a record 43 Mt supported by the ramp-up of Caval Ridge and records at six other operations • A reduction in labour, contractor and maintenance costs contributed to a 23% reduction in Queens
Slide 16: Other items affecting profitability
Other items affecting profitability For personal use only Other items (US$ million) 1,000 Underlying EBIT Underlying Exceptional items: Exceptional items: 469 attributable profit continuing discontinued operations2 operations2 63 0 (123) (188) (111) (339) (290) (698) (1,000) (828) (2,000) (1,958) (2
Slide 17: Maximising free cash flow
Maximising free cash flow For personal use only • Free cash flow in FY15 of US$6.3 billion WAIO will continue to deliver strong free cash flow (Mt, 100%) (US$/t) – productivity gains of US$4.1 billion1, 300 45 two years ahead of target – capital and exploration expenditure2 reduced by 24% to US$11 b
Slide 18: Our balance sheet is strong
Our balance sheet is strong For personal use only • Remain committed to our strong Net debt fell while gearing increased balance sheet (net debt, US$ billion) (gearing, %) 30 30 – our credit rating1 is the strongest in the sector 25 25 • Net debt down by US$1.4 billion to 20 20 US$24.4 billion 15 15
Slide 19: Financial results, Andrew Mackenzie
Escondida For personal use only Caval Ridge Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer 25 August 2015
Slide 20: Emerging economies will drive long-term commodities demand growth
Emerging economies will drive long-term commodities demand growth For personal use only Short-term drivers Growth in emerging economies remains robust (% YoY) • Ongoing economic reforms in China will 9 contribute to periods of market volatility • Chinese authorities pursuing ongoing 6 reforms with s
Slide 21: Margins for low-cost bulk suppliers remain solid
Margins for low-cost bulk suppliers remain solid For personal use only • Demand growth for iron ore and metallurgical coal Chinese pig iron production remains attractive, albeit at a slower rate (Mt) – we expect China’s crude steel production to peak between 935-985 Mt in the mid 2020s – extended li
Slide 22: Copper and oil offer significant growth opportunities
Copper and oil offer significant growth opportunities For personal use only Copper Deficit to emerge in copper from CY19 (Mt) • Growth in global demand remains compelling 28 – ~2.3% CAGR CY15 to CY25 24 • Supply increasingly challenged, primarily due to grade decline 20 • Structural deficit expected
Slide 23: Delivering solid growth through the cycle
Delivering solid growth through the cycle For personal use only • We have latent capacity within each of our Volume growth options across the portfolio businesses which lowers the capital intensity of (Escondida equivalent terms2,3) 5x +20% IRR1 our near-term growth 4x – average returns greater than
Slide 24: We are committed to our progressive dividend
We are committed to our progressive dividend For personal use only • Our commitment to the progressive Capital spend falls as current projects are completed1 dividend remains unchanged (US$ billion) 20 – our progressive dividend has withstood previous cycles – the only major not to cut the dividend
Slide 25: Our unique portfolio will create value and underpin dividends through the cycle
Our unique portfolio will create value and underpin dividends through the cycle For personal use only • Asset quality and operating performance support margins and cash flow – net operating cash flow of US$17.8 billion and EBITDA margin of 50% – US$4 billion productivity target achieved two years ah
Slide 26: BHP Billiton: resourcing the future
cdl bhpbilliton resourcing the future
Slide 27: Appendix
For personal use only Appendix
Slide 28: BHP Billiton guidance
BHP Billiton guidance For personal use only Group FY16e FY17e Capital and exploration expenditure (US$bn) 8.5 7.0 Cash basis; BHP Billiton share; excludes capitalised deferred stripping and non-controlling interests; includes BHP Billiton proportionate share of equity accounted investments. Includin
Slide 29: BHP Billiton guidance (continued)
BHP Billiton guidance (continued) For personal use only Copper FY16e Total copper production (Mt) 1.5 Pampa Norte production is forecast to remain at a similar level to FY15. At Olympic Dam, an increase in full-year production is anticipated following the full ramp-up of the mill at the end of July
Slide 30: Key net profit sensitivities
Key net profit sensitivities For personal use only Approximate impact1 on FY16 net profit after tax of changes of US$ million US$1/t on iron ore price 148 US$1/bbl on oil price2 52 US¢10/MMbtu on US gas price 19 US$1/t on metallurgical coal price 25 US¢1/lb on copper price 23 US$1/t on energy coal p
Slide 31: BHP Billiton: resourcing the future
cdl bhpbilliton resourcing the future