UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
February 16, 2011
| BHP BILLITON LIMITED | BHP BILLITON PLC | |
| (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter)
VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation)
180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
(REG. NO. 3196209) (Exact name of Registrant as specified in its charter)
ENGLAND AND WALES (Jurisdiction of incorporation or organisation)
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: x Form 20-F ¨ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ¨ Yes x No
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BHP Billiton Limited and BHP Billiton Plc | ||||||
| Date: February 16, 2011 | By: | /s/ Jane McAloon | ||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||
BMA
Interim results
31 December 2010
Marius Kloppers Chief Executive Officer
Alex Vanselow Chief Financial Officer
16 February 2011
bhpbilliton
resourcing the future
Disclaimer
bhpbilliton
resourcing the future
Reliance on Third Party Information
The views expressed herein contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.
Forward Looking Statements
This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. For more detail on those risks, you should refer to the sections of our annual report on Form 20-F for the year ended 30 June 2010 entitled “Risk factors”, “Forward looking statements” and “Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission.
Mineral Resources
This presentation includes information on Mineral Resources, which is based on information prepared by the relevant Competent Persons as named in the June 2010 Annual Report, and reported under the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). The Competent Persons verify that this report is based on and fairly reflects the information in the supporting documentation and agree with the form and context of the Mineral Resources presented. The Competent Persons are full time employees of BHP Billiton and have the required qualifications and experience to estimate and report Mineral Resources under the JORC Code. The relevant details of the Competent Persons, and the Mineral Resources broken down into Measured, Indicated and Inferred categories can be found at www.bhpbilliton.com.
No Offer of Securities
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction.
Non-GAAP Financial Information
BHP Billiton results are reported under International Financial Reporting Standards (IFRS). References to Underlying EBIT and EBITDA exclude any exceptional items. A reconciliation to statutory EBIT is contained within the profit announcement, available at our website www.bhpbilliton.com.
Interim Results, 16 February 2011
Slide 2
Interim results
31 December 2010
Marius Kloppers Chief Executive Officer
bhpbilliton
resourcing the future
Record interim financial results
bhpbilliton
resourcing the future
— Underlying EBITDA of US$17.3 billion, up 60%
— Underlying EBIT of US$14.8 billion, up 74%
— Attributable profit (excluding exceptionals) of US$10.7 billion, up 88%
— Net operating cash flow of US$12.2 billion, up 123%
— Earnings per share (excluding exceptionals) of 192.4 US cents
— Interim dividend of 46 US cents per share
— Expanded share buy-back program of US$10 billion
Interim Results, 16 February 2011
Slide 4
Operating review
bhpbilliton
resourcing the future
— Improvement in safety
— Strong operating performance across the portfolio
– WA Iron Ore ramping up to RGP4 capacity
– Record milling rates at Olympic Dam and Antamina
– First production from MAC20
– Ongoing ramp up at Alumar
– Record manganese ore production
— Impacted by significant weather events and Gulf of Mexico permitting delays
Interim Results, 16 February 2011
Slide 5
Worsley
Interim results
31 December 2010
Alex Vanselow Chief Financial Officer
bhpbilliton
resourcing the future
Underlying EBIT analysis
Half year ended December 2010 vs December 2009
bhpbilliton
resourcing the future
(US$ billion)
Uncontrollable
Controllable
20.0
15.0
10.0
5.0
0.0
8.5
8.5
(1.1)
(0.3)
15.6
0.6
(0.2)
(0.6)
(0.6)
14.8
Net US$0.4 billion
H1 FY10
Price¹
Exchange
Inflation
Sub-total
New operations
Volume
Costs²
Other
H1 FY11
1 Including the negative impact of price-linked costs.
2 Excluding the impact of inflation, foreign exchange and price-linked costs.
Interim Results, 16 February 2011
Slide 7
Strong volumes offset by the deferral of drilling in the Gulf of Mexico
bhpbilliton
resourcing the future
Volume variance
(US$ million)
US$372 million
600 300 0 (300) (600)
(464)
(39)
6
45
99
138
587
Petroleum
D&SP
Other
Energy Coal
Iron Ore
Base Metals
New operations
Note: Volume variance calculated on Underlying EBIT using previous year margin and includes new operations.
Interim Results, 16 February 2011
Slide 8
Industry wide cost pressures present an increasing challenge
bhpbilliton
resourcing the future
Cash cost variance1
(US$ million)
0
(100)
(200)
(300)
(240)
(143)
(89)
(49)
Labour & contractors
Raw materials
Maintenance
Other
1 Excluding non-cash cost variance of US$(92) million.
Interim Results, 16 February 2011
Slide 9
A weaker US dollar has ‘hidden’ implications for costs
bhpbilliton
resourcing the future
Foreign exchange gain/(loss) on balance sheet monetary items
(US$ million)
400
200
0
(200)
(400)
(600)
(800)
(213)
(115)
(94)
(83)
(40)
(34)
(164)
(743)
1,044
301
Iron Ore
Metallurgical Coal
Base Metals
Energy Coal
Stainless Steel Materials
Aluminium
Other and G&U1
EBIT
Interest and Tax
Attributable Profit
1 Includes Group and Unallocated of US$(136) million.
Interim Results, 16 February 2011
Slide 10
A uniquely diversified portfolio
bhpbilliton
resourcing the future
Underlying EBIT
(H1 FY11, US$ billion)
15
10
5
0
Metallurgical Coal Manganese
Iron Ore
SSM D&SP
Base Metals Aluminium
Energy Coal
Petroleum
Ferrous (51.2%)
Non Ferrous (27.8%)
Energy (21.0%)
Underlying EBIT margin1
(H1 FY11, %)
Metallurgical Coal
Manganese
Iron Ore
SSM
D&SP
Base Metals
Aluminium
Energy Coal
Petroleum
37%
36%
62%
19%
33%
52%
1%
14%
59%
1 Excludes third party trading.
Interim Results, 16 February 2011
Slide 11
The power of our diversified model
bhpbilliton
resourcing the future
EBIT margin1
(%)
75
50
25
0
Petroleum
Aluminium
Base Metals
D&SP
SSM
Iron Ore
Manganese
Metallurgical Coal
Energy Coal
Total
FY022 FY03 FY04 FY05 FY06 FY07 FY08 FY092 FY10 H1 FY11
1 Calculated on the basis of UKGAAP for periods prior to FY05, except for the exclusion of PRRT from Petroleum’s and BHP Billiton Group’s results for all periods. All periods exclude third party trading activities. The Exploration and Technology business has been included in BHP Billiton Group’s results from FY02 to FY05 and excluded from Diamonds and Specialty Products.
2 Negative margins are not shown as the y-axis is set at zero. SSM had a negative EBIT margin in FY02 and FY09.
Interim Results, 16 February 2011
Slide 12
Strong cash flow + a strong balance sheet = substantial flexibility
bhpbilliton
resourcing the future
Net operating cash flow
(US$ billion)
20
10
0
H2
H1
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11
Balance sheet
Net gearing (%)
40
20
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11
Note: Calculated on the basis of UKGAAP for periods prior to FY05. Cash flow reflects proportional consolidation of joint ventures for FY07 and future periods. Exploration expenditure incurred which has not been capitalised has been re-classified to net operating cash flow for FY06 and future periods.
Interim Results, 16 February 2011
Slide 13
Industry leading shareholder returns
bhpbilliton
resourcing the future
Cash dividends1
(US$ billion)
6
4
2
0
H2
H1
CAGR 23%
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11F
1 H2 FY11 payment includes dividend declared on 16 February 2011.
Five year net capital returned to shareholders2
(US$ billion)
40
30
20
10
0
(10)
29.3
16.7
2.8
(2.6)
(3.8)
BHP Peer 1 Peer 2 Peer 3 Peer 4 Billiton
2 Net capital returned to shareholders includes dividends, share buy-backs and equity raisings.
Source: Annual reports, interim press releases and BHP Billiton analysis. Note that if a company has not yet released its full year results an estimate has been used for the second half of CY10.
Interim Results, 16 February 2011
Slide 14
Olympic Dam
Interim results
31 December 2010
Marius Kloppers Chief Executive Officer
bhpbilliton
resourcing the future
Improving near term economic fundamentals
bhpbilliton
resourcing the future
— Strong emerging market growth continues
— Increasingly positive developed market data
— However, economic risks remain
– Sovereign debt issues
– Policy responses to emerging market inflation
— Supply side constraints are supporting commodity prices
Manufacturing
(PMI)
65 55 45 35 25
China India Japan US Germany Eurozone
Dec 07 Dec 08 Dec 09 Dec 10
Source: Markit PMI.
Interim Results, 16 February 2011
Slide 16
Our business model delivers strong margins and returns
Underlying EBIT margin
(%)
50 40 30 20 10 0
FY06 FY07 FY08 FY09 FY10 H1 FY11
BHP Billiton
Return on capital
(%)
50 40 30 20 10 0
FY06 FY07 FY08 FY09 FY10 H1 FY11
Peer group
Note: Peer group includes Rio Tinto, Vale, Anglo American and Xstrata.
Source: Annual Reports, interim press releases and BHP Billiton analysis.
Interim Results, 16 February 2011
Slide 17
Significant capital expenditure to underpin future growth
bhpbilliton
resourcing the future
(US$ billion)
90 60 30 0
Strong pipeline of investment
Manganese SSM Energy Coal Aluminium D&SP Metallurgical Coal Base Metals Petroleum Iron Ore
Future Options Pre-Feasibility Feasibility Execution Other Growth Capex Total Spend FY11 to FY15 Commodity Split
Note: Excluding sustaining capital expenditure and exploration expenditure.
Interim Results, 16 February 2011
Slide 18
A simple business model built around Tier 1 resources
bhpbilliton
resourcing the future
50+ years Saskatchewan Potash 3.4bt resource
40+ years Escondida Copper 8.5bt resource
50+ years Pilbara Iron Ore 16.1bt resource
50+ years Bowen Basin Metallurgical Coal 12.8bt resource
100+ years Olympic Dam Copper/Uranium 9.1bt resource
Mineral Resources are stated on a 100% basis, and include Measured, Indicated and Inferred Resources. The categorised breakdown is shown in the FY10 Annual Report. The FY10 actual production has been used to estimate the minimum production life that the resource can sustain. Potash production is based on anticipated FY20 production. Realistic global mining and processing conversion factors have been used for each asset to determine this minimum production life.
Interim Results, 16 February 2011
Slide 19
Well positioned for growth and shareholder returns
bhpbilliton
resourcing the future
— Our strategy has not changed
— A record set of financial results
— Investment in organic growth exceeding US$80 billion over five years
— Returning cash to shareholders via an increased dividend and US$10 billion share buy-back
— Our tier 1 portfolio continues to deliver superior margins and returns
BHP Billiton weighted average TSR
(Ltd 60% and Plc 40%)
1,200%
200%
100%
0%
42%
200%
1,200%
3 years¹ 5 years¹ 10 years¹
1 Period ended 31 December 2010.
Interim Results, 16 February 2011
Slide 20
bhpbilliton
resourcing the future
Appendix
bhpbilliton
resourcing the future
Impact of major commodity price movements
Half year ended December 2010 vs December 2009
bhpbilliton
resourcing the future
Total price variance1
(US$ million)
5,000
4,000
3,000
2,000
1,000
0
4,276
1,379
1,147
526
318
286
244
197
158
Iron Ore Base Metals Metallurgical Coal Petroleum Energy Manganese Stainless Steel Materials Aluminium Other Coal
1 Including the negative impact of price-linked costs.
Interim Results, 16 February 2011
Slide 23
Rate of cost change
bhpbilliton
resourcing the future
Operating cost movement relative to preceding year1
(%)
14.0
10.0
6.0
2.0
(2.0)
(6.0)
Total
Excluding non-cash
2.2
1.7
7.3
6.1
12.2
10.5
3.5
4.1
(5.2)
(4.1)
5.5
2.7
4.0
3.4
1H08
2H08
1H09
2H09
1H10
2H10
1H11
1 Excluding the impact of inflation, foreign exchange, price-linked costs and third party trading.
Interim Results, 16 February 2011
Slide 24
Summary of key FX components in tax expense/(income)
bhpbilliton
resourcing the future
Restatement of December 2010 Expense / (Income) US$ million December 2009 Expense / (Income) US$ million
Current Tax Payable 391 152
Deferred Tax Balances on Fixed Assets (1,750) (900)
Deferred Tax Balances on US$ Debt 316 351
Deferred Tax Balances on Timing Differences (82) 111
Other Items (2) (20)
Total (1,127) (306)
Interim Results, 16 February 2011
Slide 25
Capital and exploration expenditure
bhpbilliton
resourcing the future
US$ billion FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11F
Growth 1.9 2.0 1.7 2.6 4.0 5.5 6.1 7.3 8.1
Sustaining and Other 0.8 0.7 0.9 1.3 2.1 1.6 1.8 2.0 1.7
Exploration 0.4 0.3 0.5 0.5 0.8 0.8 1.4 1.3 1.3
Total 3.1 3.0 3.1 4.4 6.9 7.9 9.3 10.6 11.1 15.0
(US$ billion)
18 12 6 0
Exploration Sustaining capex Growth expenditure
Note: Calculated on the basis of UKGAAP for periods prior to FY05.
Interim Results, 16 February 2011
Slide 26
Maintenance of a deep, diversified inventory of growth options
bhpbilliton
resourcing the future
Future options1
Potash – Jansen Phase 3
Thebe
Illawarra Coal Expansion
Potash – Young
Browse LNG
Yeelirrie
Saraji East
West Africa Exploration
IndoMet Coal
DRC Smelter
Mt Arthur Coal (MAC RX2)
Atlantis N2B
Potash – Jansen Phase 2
Knotty Head
Potash - Burr
Wards Well
WA Iron Ore Quantum 2
Olympic Dam Project 2+
Caroona
Saraji Expansion
Blackwater Expansion
RBM
Escondida OGP 1
Potash – Melville
Queensland Rail and Port Expansion
NWS GWF
Nimba
IndoMet Coal Expansion
Potash Ports
Resolution
Mt Arthur Coal (UG)
Potash - Boulder
Peak Downs Expansion
Scarborough
Saraji East Expansion
Oxide Leach
Spence Hypogene
Mad Dog Phase 2
WA Iron Ore Quantum 1
Potash - Other
Caval Ridge
Expansion
Boffa/ Santou Refinery
Goonyella Expansion
Newcastle Third Port Exp 3
Olympic Dam Project 1
Feasibility
Caval Ridge
CMSA Heap Leach 1
Samarco 4
Gabon
Escondida Ore Access
HPX3
Guinea Alumina
MAC RX1
Laguna Seca
Potash – Jansen Phase 1
Daunia
GEMCO Exp 2
EKATI
WA Iron Ore RGP 6
Cerrejon
Opt Exp
Execution
Kipper
Worsley E&G3
NWS CWLH
Newcastle Third Port Exp 2
WA Iron Ore RGP 52
Angostura Gas
Turrum
NWS Nth Rankin B
Antamina Exp
Macedon
As at 10 February 2011 Proposed capital expenditure
£$500m
$501m-$2bn
$2bn+
CSG
Petroleum Aluminium Base Metals
D&SP SSM Iron Ore
Manganese Met Coal Energy Coal
1 Placement of Future Options not indicative of project schedule.
2 Project scope currently under review.
3 Budget under review.
Interim Results, 16 February 2011
Slide 27
Maturity profile analysis
bhpbilliton
resourcing the future
Debt balances1
(US$ million2)
3,000 2,000 1,000 0
2001 2012 2013 2014 2015 2016 2017 2018 2019 2020 Post 2020
% of Portfolio
US$ Bonds 54%
Euro Bonds 32%
Bank Debt 0%
CP Issuance 0%
Jointly Controlled Entities3 12%
Subsidiaries4 2%
Capital Markets 86%
Bank Supported 0%
Asset Financing 14%
1 Based on debt balances as at 31 December 2010.
2 All debt balances are shown in US$ million and based on financial years.
3 Jointly Controlled Entity (‘JCE’) debt represents BHP Billiton share of the total JCE debt excluding debt provided by BHP Billiton.
4 Subsidiary debt represents BHP Billiton share of subsidiary debt based on BHP Billiton effective interest.
Interim Results, 16 February 2011
Slide 28
Key net profit sensitivities
bhpbilliton
resourcing the future
Approximate impact1 on FY11 net profit after tax of changes of US$ million
US$1/t on iron ore price 85
US$1/bbl on oil price 40
US$1/t on metallurgical coal price 20
US¢1/lb on aluminium price 20
US¢1/lb on copper price 20
US$1/t on energy coal price 20
US¢1/lb on nickel price 2
AUD (US¢1/A$) operations2 95
RAND (0.2 Rand/US$) operations2 35
1 Assumes total volumes exposed to price.
2 Impact based on average exchange rate for the period.
Interim Results, 16 February 2011
Slide 29