Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Global Iron Ore & Steel Forecast Conference 2016
16 slides from Bhp's conference presentation, Mar 8, 2016
Slide 1: ASX cover note: Global Iron Ore and Steel Forecast Conference
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: News release: Building on productivity leadership and a strong asset base
NEWS RELEASE Release Time IMMEDIATE For personal use only Date 8 March 2016 Release Number 9/16 BUILDING ON PRODUCTIVITY LEADERSHIP AND A STRONG ASSET BASE BHP Billiton is meeting the challenges of the global iron ore market through a focus on productivity and a “relentless pursuit of the basics” in
Slide 3: News release continued
“Our productivity drive has supported an EBITDA margin of over 50 per cent at WAIO despite the iron ore price halving since 2012,” he said. "Through the new Operating Model we will deliver faster replication of leading practices and improved technologies across all of BHP Billiton's global operation
Slide 4: Media and investor relations contacts
Media Relations Investor Relations Australia and Asia Australia and Asia Emily Perry Tara Dines Tel : +61 3 9609 2800 Mobile +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 Email : Emily.Perry@bhpbilliton.com Email: Tara.Dines@bhpbilliton.com For personal use only Eleanor Colonico Andre
Slide 5: Global Iron Ore & Steel Forecast Conference
For personal use only Eastern Ridge Safe. Productive. Efficient. Global Iron Ore & Steel Forecast Conference Edgar Basto Asset President Western Australia Iron Ore 8 March 2016
Slide 6: 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 7: Samarco quote from CEO Andrew Mackenzie
For personal use only “We are in this for the long term and will continue to work with Vale and the people of Samarco to make sure there is a strong future for the region.” Andrew Mackenzie, BHP Billiton CEO Edgar Basto, Asset President Western Australia Iron Ore 8 March 2016 Slide 3
Slide 8: Key themes
Key themes For personal use only • The health and safety of our people and the communities in which we operate always come first • China’s steel demand growth slowing as the country transitions to the next phase of development • The cost curve will continue to flatten in the medium-term as low-cost
Slide 9: Short-term market outlook remains challenging
Short-term market outlook remains challenging For personal use only • Steel demand growth in China will remain weak in the short term Steel intensity per capita (kg crude steel per capita, per annum) – current cyclical downturn primarily driven by an oversupplied 1,000 property market 750 – Chinese
Slide 10: Prolonged period of market rebalancing
Prolonged period of market rebalancing For personal use only • The cost curve will continue to flatten in the medium term as Manufacturing-led growth in Chinese steel demand low-cost supply exceeds demand growth (%) – the marginal cost of supply continues to decline 100 • Iron ore contestable demand
Slide 11: Safe and sustainable operations above all else
Safe and sustainable operations above all else For personal use only • Continued focus on culture of safety WA Iron Ore Team – managing and controlling fatal risks – eliminating serious injuries across our business • Simple approach to productivity enables continuous safe and sustainable improvement
Slide 12: Relentless pursuit of the basics
Relentless pursuit of the basics For personal use only • Equipment productivity is driving further volume growth MAC OHP2 availability1 (index, January 2014 = 100) – better coordination of major plant shuts 120 – improved shutdown practices 10% increase 110 – extended and optimised wear life of majo
Slide 13: Continuing to deliver exceptional performance
Continuing to deliver exceptional performance For personal use only • Our resource position enables sustained delivery of a high-quality, FOB unit cost comparison low-cost product over the long-term (US$/wmt1) 30 • WAIO delivered strong results in H1 FY16, despite significantly down 47% weaker price
Slide 14: Productivity will be expedited under our simplified organisational structure
Productivity will be expedited under our simplified organisational structure For personal use only • BHP Billiton will have two regional units; Minerals Australia and Simplified organisation structure1 Minerals Americas; and Petroleum as a third unit Executive Leadership Team – Western Australia Iro
Slide 15: Key themes
Key themes For personal use only • The health and safety of our people and the communities in which we operate always come first • China’s steel demand growth slowing as the country transitions to the next phase of development • The cost curve will continue to flatten in the medium-term as low-cost
Slide 16: For personal use only
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