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
August 22, 2012
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter) |
| VICTORIA, AUSTRALIA | ENGLAND AND WALES | |||
| (Jurisdiction of incorporation or organisation) | (Jurisdiction of incorporation or organisation) | |||
| 180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA |
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM | |||
| (Address of principal executive offices) | (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
|
Newman
Preliminary results Year ended 30 June 2012
Marius Kloppers Chief Executive Officer Graham Kerr Chief Financial Officer
22 August 2012
bhpbilliton
resourcing the future
|
Disclaimer
bhpbilliton
resourcing the future
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 certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments.
Forward looking statements can be identified by the use of terminology such as ‘intend’, ‘aim’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, ‘expect’, ‘may’, ‘should’, ‘will’, ‘continue’ or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements.
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. Readers are cautioned not to put undue reliance on forward looking statements.
For example, our future revenues from our operations, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations.
Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton’s filings with the US Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC’s website at www.sec.gov.
Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward looking statements, whether as a result of new information or future events.
Non-IFRS financial information
BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This presentation also includes certain non-IFRS measures including Attributable profit excluding exceptional items, Underlying EBITDA interest coverage, Underlying effective tax rate, Underlying EBIT margin and Underlying return on capital. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.
UK GAAP financial information
Certain historical financial information for periods prior to FY2005 has been presented on the basis of UK GAAP, which is not comparable to IFRS or US GAAP. Readers are cautioned not to place undue reliance on UK GAAP information.
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.
Reliance on third party information
The views expressed in this presentation 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.
Preliminary results, 22 August 2012 Slide 2
|
Escondida
Preliminary results Year ended 30 June 2012
Marius Kloppers Chief Executive Officer
bhpbilliton
resourcing the future
|
Key themes
bhpbilliton
resourcing the future
• Strong operating performance and robust financial results
• Targeting a significant reduction in operating costs
• Disciplined investment has established strong momentum in our major businesses
• Our projects in execution are expected to create substantial value for our shareholders
• A commitment to further simplify the portfolio
• Sector leading shareholder returns
Preliminary results, 22 August 2012 Slide 4
|
Robust financial results
bhpbilliton
resourcing the future
• Total Recordable Injury Frequency improved by 6%
• Underlying EBITDA of US$33.7 billion, down 9%
• Underlying EBIT of US$27.2 billion, down 15%
• Attributable profit (excluding exceptional items) of US$17.1 billion, down 21%
• Attributable profit of US$15.4 billion included net exceptional charges of US$1.7 billion
• Net operating cash flow of US$24.4 billion, down 19%
• Gearing of 26% following the acquisition of Petrohawk Energy Corporation
• Full year dividend of 112 US cents per share, up 11%
Note: Variance relates to the relative performance of BHP Billiton during the 2012 financial year compared with the 2011 financial year.
Preliminary results, 22 August 2012
Slide 5
|
Strong operating performance
bhpbilliton
resourcing the future
• Record production at 10 operations
– Western Australia Iron Ore (WAIO) shipments rose to a rate of 179mtpa (100% basis) in the June 2012 quarter
• Temporary operational challenges
– industrial action and the remnant effects of wet weather at Queensland Coal
– deferral of high margin non-operated crude oil and condensate production in the Gulf of Mexico
– industrial action at Escondida
• Release of this substantial latent capacity in FY13 will underpin strong, low-risk momentum in our major businesses
1. Excludes assets where major projects are in commissioning phase or in the process of ramp-up (Worsley, Antamina, WAIO and NSW Energy Coal). Excludes the non-operated Richards Bay Minerals operation, the EKATI diamond mine (both part of the D&SP CSG) and Onshore US (Petroleum CSG). Spence and Cerro Colorado capacity based on forecast annualised production as reported in the BHP Billiton 2011 Annual Report; Manganese Ore and South Africa Coal capacity adjusted for available rail allocation; and Queensland Coal adjusted for the closure of Norwich Park.
Effective asset utilisation1 in FY12
(%)
90%
Escondida
Petroleum (non-operated)
Queensland Coal
Preliminary results, 22 August 2012 Slide 6
|
Eagle Ford
Preliminary results Year ended 30 June 2012
Graham Kerr Chief Financial Officer
bhpbilliton
resourcing the future
|
Strength in diversity
bhpbilliton
resourcing the future
• The value of our diversified strategy was reflected in the Group’s Underlying EBIT margin of 39%1
• Net operating cash flow of US$12.1 billion in H2 FY12 declined by 1% when compared with H1 FY12 and demonstrated the cash generating capacity of our business throughout the economic cycle
• Underlying return on capital was 23% or 27% excluding capital investment associated with projects not yet in production
1. Excludes third party trading activities.
2. Cash flow reflects proportional consolidation of joint ventures for FY07 and future periods. Exploration expenditure incurred which has not been capitalised has been re-classified to net operating cash flow for FY06 and future periods.
Underlying EBIT1
(%)
100
75
50
25
0
FY03 to FY12
FY12
Iron Ore
Metallurgical Coal
D&SP
Petroleum
Energy Coal
SSM
Base Metals
Manganese
Aluminium
Net operating cash flow2
(US$ billion)
32
H1
H2
24
16
8
0
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
Preliminary results, 22 August 2012 Slide 8
|
Underlying EBIT analysis
bhpbilliton
resourcing the future
EBIT variance
(FY12 versus FY11, US$ billion)
40.0
Uncontrollable (2.2)
Controllable (2.6)
32.0
0.8
29.8
1.5
30.0
(2.0)
(1.0)
(2.0)
27.2
(1.7)
(0.4)
(0.0)
20.0
10.0
0.0
FY11
Price1
Exchange
Energy costs and inflation
Sub-total
Volume2
Cash costs2
Major outages and disruptions2
Non-cash costs
Other3
FY12
1. Includes net impact of price-linked costs.
2. The impact of wet weather and industrial action at Escondida and Queensland Coal, and outages at Mad Dog, Atlantis and Hillside, are all excluded from Volume and Cash costs variance; included in Major outages and disruptions.
3. Includes new and acquired operations.
Preliminary results, 22 August 2012 Slide 9
|
Investment in high margin organic growth delivered tangible results
bhpbilliton
resourcing the future
Volume variance1
(US$ million)
3,000
2,000
1,000
0
Iron Ore
2,313
Metallurgical Coal
269
Energy Coal
152
Manganese
64
Aluminium
17
SSM
(35)
Base Metals
(138)
D&SP
(375)
Sub-total Minerals
2,267
Petroleum
(719)
Sub-total
1,548
Major outages and disruptions
(1,240)
Total
308
Note: Volume variance calculated on Underlying EBIT using previous period margin.
1. The impact of wet weather and industrial action at Escondida and Queensland Coal, and outages at Mad Dog, Atlantis and Hillside, are all excluded from the CSG Volume variance; included in Major outages and disruptions.
Preliminary results, 22 August 2012 Slide 10
|
Targeting significant cost savings in FY13
bhpbilliton
resourcing the future
The rate of cost escalation was exacerbated by a number of temporary factors
Queensland Coal and Escondida will benefit significantly as production recovers from recent challenges
Decisive action has been taken across the Group to respond to industry wide cost pressure
WAIO will fully benefit from the acquisition of the HWE mining subsidiaries in FY13
A substantial reduction of operating costs and non-essential expenditure is targeted in FY13
FY12 cash costs escalation1
(%)
+5%
Metallurgical Coal
Aluminium
Base Metals
Energy Coal
Petroleum
Labour, raw materials
and other2
Manganese
Major outages and
disruptions2
Iron Ore
SSM
1. Increase in FY12 cash costs, including Major outages and disruptions, excluding the impact of energy costs, inflation, exchange rate volatility and non-cash items, divided by FY11 cash costs. Excludes the non-operated Richards Bay Minerals operation and the EKATI diamond mine (both part of the D&SP CSG).
2. The impact of wet weather and industrial action at Escondida and Queensland Coal, and the outage at Hillside, are excluded from Labour, raw materials and other; included in Major outages and disruptions.
Preliminary results, 22 August 2012 Slide 11
|
Major projects in our core products underpin near term growth and returns
bhpbilliton
resourcing the future
Major projects currently in execution1
(capital expenditure, US$ billion)
Iron Ore
Metallurgical Coal
D&SP
Petroleum
Energy Coal
SSM
Base Metals
Manganese
Aluminium
£ US$500m US$501m-US$5bn
FY12 FY13e FY14e FY15e FY16e
NWS CWLH
WAIO RGP 5
Worsley E&G
Escondida Ore Access
FY12 FY13 FY14 FY15 FY16
Antamina Exp
MAC RX1
Kipper2
WAIO Inner Harbour
WAIO Orebody 24
Macedon
NWS Nth Rankin B
Turrum
Daunia
Broad- meadow
WAIO Jimblebar
Cerrejon P40
NTP Exp 3
Caval Ridge
HPX3
Oxide Leach
Samarco 4
WAIO Port and Rail
Escondida OGP1
Appin Area 9
EKATI Misery
NWS GWF-A
1. Only includes major projects in execution as at 22 August 2012.
2. Facilities ready for first production pending resolution of mercury content.
(timing of first production)
Preliminary results, 22 August 2012 Slide 12
|
Disciplined management of our capital
bhpbilliton
resourcing the future
Our priorities for capital are unchanged
–first: invest in high return growth
opportunities throughout the
economic cycle
– second: maintain a solid A credit rating
– third: grow our progressive dividend
– fourth: return excess capital to
shareholders
Our strong balance sheet provides flexibility
Progressive dividend has grown at a CAGR
of 26% over the last ten years
Strong balance sheet
(net gearing, %)
40
30
20
10
0
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
Substantial capital returned to shareholders
(US$ billion)
15
Dividends
Share buy-backs
10
5
0
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
Preliminary results, 22 August 2012 Slide 13
|
Royalties, taxes and exceptional items
bhpbilliton
resourcing the future
US$11.9 billion was distributed in the form of federal taxes, state taxes and production royalties representing 44% of Underlying EBIT
Attributable profit of US$15.4 billion included exceptional items of US$1.7 billon1
– non-cash tax credit of US$637 million related to the passage of Australia’s MRRT and PRRT extension into legislation
– non-cash impairments of US$2.5 billion
– insurance proceeds of US$199 million
Approximately US$1 billion2 invested in the communities in which we operate over the last five years
BHP Billiton supported the construction of a new school library in Toconao, Chile
1. Exceptional items after tax.
2. As part of our community commitment, we voluntarily invest 1% of our pre-tax profit, calculated on the average of the previous three years’ pre-tax profit, in community programs.
Preliminary results, 22 August 2012 Slide 14
|
Mt Arthur Coal
Preliminary results Year ended 30 June 2012
Marius Kloppers Chief Executive Officer
bhpbilliton
resourcing the future
|
Our positive long term view remains unchanged
bhpbilliton
resourcing the future
Concerns surrounding the Eurozone and the slowdown in China have led to significant volatility
Measured improvement in the external environment anticipated, beginning in H2 CY12
– growth in China is expected to strengthen, beginning in H2 CY12
– encouraging signs have emerged in the United States
In the longer term, urbanisation and industrialisation will remain the primary drivers of economic growth
Chinese GDP is forecast to almost triple by CY25 with growth equivalent to 25% of current global GDP
Source: Global Insight.
GDP change between 2011 and 2025
(2005 real PPP US$ trillion)
30
China
GDP CAGR: 7.2%
25
20
European
USA
Union
15
India
10
Japan
5
Russia
Brazil
South Korea
Australia
0
0
20
40
60
GDP per capita
(2005 real PPP
US$’000s)
Preliminary results, 22 August 2012
Slide 16
|
Demand is only one side of the price equation
bhpbilliton
resourcing the future
Demand growth alone is not a good indicator of price performance
– inducement pricing: the copper price was very well supported as supply struggled to keep pace with modest demand growth
– marginal cost pricing: the aluminium price remained depressed as plentiful supply more than satisfied robust demand growth
– scarcity pricing: iron ore benefited from strong demand growth and an insufficient supply response
Cumulative demand growth
Price
(% growth relative to 2000)
(US$ per metric tonne)
80
10,000
Copper
60
7,500
Demand CAGR: 2.0%
Price CAGR:
15.4%
40
5,000
20
2,500
0
0
80
10,000
Aluminium
60
7,500
Demand CAGR:
4.5%
Price CAGR:
4.0%
40
5,000
20
2,500
0
0
CY00 CY01 CY02 CY03
CY04 CY05 CY06 CY07
CY08
CY09
CY10
CY11
Source: BHP Billiton analysis; LME.
Preliminary results, 22 August 2012 Slide 17
|
Pricing will be partly driven by the pace of the supply response
bhpbilliton
resourcing the future
Robust aluminium demand will continue to be met by strong supply
The low cost iron ore supply response is well advanced
In copper, declining ore grades and rising costs will continue to constrain the supply response and support a relatively steep cost curve
The requirement for significant new capacity in potash suggests prices will be sustained at a level high enough to induce new supply
Forecast supply additions relative to anticipated 20 year demand growth (2000 to 2020)
(%)
100
80
Supply required
to meet demand
growth
60
Low cost supply
40
response expected
between CY11 and
CY15
20
Low cost supply
delivered to end
CY11
0
Aluminium1
Iron ore
Copper
Potash
Source: BHP Billiton analysis; Wood Mackenzie; Fertecon.
Note: Supply refers to low cost mine supply for copper, potash and iron ore; and in the case of aluminium, capacity.
1. Indicates that aluminium demand growth to 2020 can be fully supplied from capacity additions by 2015.
Preliminary results, 22 August 2012 Slide 18
|
Prioritising low risk, high return growth
bhpbilliton
resourcing the future
Our diversified strategy delivers superior margins and returns
Our 20 major projects are largely low risk expansions of existing operations that will deliver first production before end FY15
Current investment in organic growth is expected to create substantial value for our shareholders
No major projects are expected to be approved in FY13
As we complete the current suite of projects in execution, we will allocate future capital to those options that maximise shareholder value
Asset
turnover1
(%)
70
60
50
40
BHP Billiton bubble size
represents return on assets 1
30
10
15
20
25
30
Profit
margin1
(%)
1. Financial metrics presented on a FY12 basis. Peer group based on LSE constituents: Rio Tinto, Anglo American and Xstrata. Return on assets (ROA) ratio calculated as follows: Total sales divided by total assets (Asset turnover) multiplied by net income excluding exceptionals divided by total sales (Profit margin).
Preliminary results, 22 August 2012 Slide 19
|
Maximising our inner harbour capacity in WAIO
bhpbilliton
resourcing the future
•Our major projects are on schedule and budget
–completion of the Port Hedland Inner Harbour Expansion project in H2 CY12 takes our port capacity to 220mtpa1
–first production from the Jimblebar Mine Expansion in Q1 CY14 will increase its capacity to 35mtpa1
–capital investment associated with these projects will peak in FY13
•WAIO production in FY13 is forecast to increase by approximately 5%
| WAIO system capacity |
||||||
| (mtpa, 100% basis) |
||||||
| 300 |
||||||
| +220mtpa | ||||||
| 250 |
Jimblebar |
Debottlenecking | ||||
| Car |
||||||
| 200 |
||||||
| 150 |
||||||
| 100 |
||||||
| FY11 |
FY12 |
FY13e FY14e FY15e FY16e | ||||
1. 100% basis.
Note: Dates are indicative of first production or commissioning of infrastructure.
Preliminary results, 22 August 2012 Slide 20
|
Delivering low risk growth in Base Metals
bhpbilliton
resourcing the future
•Antamina expansion project delivered first production in the March 2012 quarter
–generates a high rate of return
–forecast copper production growth of 32% in CY12
•Escondida major projects are on track
–Escondida Ore Access achieved first production in the June 2012 quarter
–Laguna Seca debottlenecking (LSD) project adds 15ktpd1 of processing capacity
–forecast copper production growth of 20% in FY13
–Organic Growth Project 1 (OGP1) will add 32ktpd1 of processing capacity from H1 CY15
| Antamina throughput capacity |
||||
| (ktpd, 100% basis) |
||||
| 150 |
36 |
130 | ||
| 94 |
||||
| 100 |
||||
| 50 |
||||
| 0 |
||||
| Base |
Expansion |
Post expansion | ||
Escondida throughput capacity
| (ktpd, 100% basis) |
||||||||
| 300 |
32 |
277 | ||||||
| 230 |
15 |
245 |
||||||
| 200 |
||||||||
| 100 |
||||||||
| Base |
LSD |
Post LSD |
OGP1 |
Post OGP1 |
1. 100% basis.
Preliminary results, 22 August 2012 Slide 21
|
Significant latent capacity in Metallurgical Coal
bhpbilliton
resourcing the future
•Industrial action and wet weather severely constrained production at Queensland Coal
•Strong Australian dollar, general inflationary pressure and soft demand placed further pressure on operating margins
•In response, we have chosen not to commence the 2.5mtpa1 expansion of Peak Downs associated with the Caval Ridge mine development
•The 5.5mtpa1 Caval Ridge mine and 11mtpa1 Hay Point Stage Three Expansion remain on schedule to deliver new capacity in CY14
•By end CY142 the capacity of our leading Queensland Coal business will be 50% higher than the production rate recorded in the recent 12 month period
Queensland Coal production capacity3
(mtpa, 100% basis)
80
10 66
12
44
40
0
FY12 production FY12 nominal capacity Projects in execution FY15e capacity
Hay Point throughput capacity
(mtpa, 100% basis)
80
11
55
12
40
32
0
FY12 throughput FY12 nominal capacity Hay Point Stage Three Expansion FY15e capacity
1. 100% basis.
2. The Daunia and Broadmeadow Life Extension projects also remain on schedule for completion in CY13.
3. Includes major projects in execution; excludes Norwich Park nominal capacity.
Preliminary results, 22 August 2012 Slide 22
|
Accelerating development of our liquids rich shale assets
bhpbilliton
resourcing the future
•Prioritise development of the oil and liquids rich Eagle Ford shale with appraisal drilling in the Permian Basin
•Investment in the Eagle Ford offers particularly high rates of return with payback typically within one year
•Onshore US capital expenditure to rise to approximately US$4 billion in FY13
•Onshore US production to increase to approximately 100MMboe in FY13
•Development plans will remain flexible and aligned with the external environment
| Onshore US capital expenditure |
||
| (US$ billion) |
||
| 4.5 |
||
| 3.0 |
||
| 1.5 |
||
| 0.0 |
||
| FY12 |
FY13e |
Drilling activity in FY13
(number of rigs1)
Permian
Haynesville
Fayetteville
Eagle Ford
1. Plan based on 40 drilling rigs.
Preliminary results, 22 August 2012 Slide 23
|
Strong near term momentum in our major businesses
bhpbilliton
resourcing the future
•Growth in WAIO production rate to +220mtpa1 before end FY15
•Escondida copper production to increase to over 1.3mt1 in FY15
•Completion of the Hay Point Stage Three Expansion and associated mine developments to increase Queensland Coal capacity to 66mtpa1 by end CY14
•The high margin Atlantis and Mad Dog facilities resumed production in August 2012
•Production in the Eagle Ford shale to increase to over 200Mboe/day in FY15
Forecast production2
(index=100)
150 150
100 100
50 50
0 0
FY12 FY15e FY12 FY15e
WAIO Escondida
200 500
100 250
0 0
FY12 FY15e FY12 FY15e
Queensland Coal Eagle Ford
1. 100% basis.
2. Includes volumes related to minor unapproved capital projects.
Preliminary results, 22 August 2012 Slide 24
|
Longer term development options
bhpbilliton
resourcing the future
Olympic Dam Project
•Following a major capital review, BHP Billiton has decided to study an alternative, less capital intensive design of the Olympic Dam open pit expansion that involves new technologies
•This design has the potential to substantially improve the economics of the project
•As a result, the Group is not ready to approve development at Olympic Dam before the Indenture agreement deadline of 15 December 2012
Jansen potash
•BHP Billiton has established a major presence in the Saskatchewan potash basin
•Two underground shafts that will support an 8mtpa operation at Jansen are well advanced and will be fully excavated by end FY14
•Completed more than 25 kilometres of exploration drilling in the wider Saskatchewan basin in FY12
Jansen
Preliminary results, 22 August 2012 Slide 25
|
Longer term development options
bhpbilliton
resourcing the future
Permian Basin
•440,000 acres with a significant appraisal program underway
•Encouraging results indicate potential for a 100Mboe/day shale liquids business
•More than 60 wells are planned for FY13
WAIO growth beyond 240mtpa
•WAIO has invested US$19 billion1 over a 10 year period
•Opportunities have been identified that could release significant latent capacity beyond 240mtpa2
•Increasing the productivity of our existing infrastructure could deliver material volume growth and unlock substantial value
1. Includes major projects and sustaining capital expenditure; BHP Billiton share.
2. 100% basis.
WAIO
Preliminary results, 22 August 2012 Slide 26
|
Committed to further simplify the portfolio
bhpbilliton
resourcing the future
•Our business generates more cash per unit of product and a higher level of cash flow per employee
•The sale of our 37% non-operated interest in Richards Bay Minerals is well advanced
•The review of our diamonds business is continuing
•Assets must earn their right to remain in the portfolio
•Other targeted divestments are being considered
Cash margin1
(US$ per copper equivalent unit)
3,500
3,000
2,500
2,000 BHP Billiton bubble size represents Underlying EBITDA margin1
1,500
0
150
300
450
600
Simplicity1
(Net operating cash flow per employee, US$’000)
Source: Datastream; annual reports; press releases; BHP Billiton analysis.
1.Financial metrics presented on a FY12 basis and employee numbers (excluding contractors) presented on a FY12 basis for BHP Billiton and a CY11 basis for peers. Cash margin is calculated as net operating cash flow per copper equivalent unit. Copper equivalent units based on FY12 average prices where available. Peer group based on LSE constituents: Rio Tinto, Anglo American and Xstrata.
Preliminary results, 22 August 2012 Slide 27
|
Superior returns throughout the cycle
bhpbilliton
resourcing the future
•Our proven strategy has delivered sector leading returns
•We have returned US$53.8 billion1 to shareholders over the last 10 years
•The unique diversification of our high quality asset portfolio means we are very well placed for the inevitable evolution of commodities demand
| Total shareholder returns2 |
||||||
| (%) |
||||||
| 700 |
||||||
| 600 |
||||||
| 500 |
||||||
| 400 |
||||||
| 300 |
||||||
| 200 |
||||||
| 100 |
||||||
| 0 |
||||||
| BHP Billiton |
Peer 1 |
Peer 2 |
Peer 3 | |||
Source: Datastream; annual reports; press releases; BHP Billiton analysis.
1. Refers to the period FY03 to FY12; includes buy-backs and dividends.
2. Peer group based on LSE constituents: Rio Tinto, Anglo American and Xstrata. TSR assumptions include: US dollar terms and weighted average for dual listed companies; calculated over the period 30 June 2002 until 30 June 2012.
Preliminary results, 22 August 2012 Slide 28
|
Key themes
bhpbilliton
resourcing the future
•Strong operating performance and robust financial results
•Targeting a significant reduction in operating costs
•Disciplined investment has established strong momentum in our major businesses
•Our projects in execution are expected to create substantial value for our shareholders
•A commitment to further simplify the portfolio
•Sector leading shareholder returns
Preliminary results, 22 August 2012 Slide 29
|
bhpbilliton
resourcing the future
|
Appendix
bhpbilliton
resourcing the future
|
Impact of major commodity price movements
bhpbilliton
resourcing the future
Total price variance1
(FY12 versus FY11, US$ million)
2,000
1,504
1,000
339 246
95
0
(245)
(400)
(584)
(1,000)
(1,337)
(1,578)
(2,000)
Petroleum Metallurgical D&SP Energy Coal Aluminium Manganese SSM Iron Ore Base Metals
Coal
1. Includes net impact of price-linked costs.
Preliminary results, 22 August 2012 Slide 32
|
Summary of key exchange rate components in tax expense/(income)
bhpbilliton
resourcing the future
Restatement of FY12 expense/(income) US$ million FY11 expense/(income) US$ million
Current tax payable (91) 695
Deferred tax balances on fixed assets 59 (2,481)
Deferred tax balances on US$ debt 205 234
Deferred tax balances on timing differences 29 (3)
Other items 48 82
Total 250 (1,473)
Preliminary results, 22 August 2012 Slide 33
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Capital and exploration expenditure
bhpbilliton
resourcing the future
Minerals and conventional oil and gas capital and exploration expenditure
US$ billion FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13e
Growth 2.0 1.7 2.6 4.0 5.5 6.1 7.3 8.1 9.2 14.4
Sustaining and other 0.7 0.9 1.3 2.1 1.6 1.8 2.0 1.7 2.2 2.5
Exploration 0.3 0.5 0.5 0.8 0.8 1.4 1.3 1.3 1.2 2.1
Total 3.0 3.1 4.4 6.9 7.9 9.3 10.6 11.1 12.6 19.0 18.0
Onshore US capital and exploration expenditure
US$ billion FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13e
Growth 0.2 3.3
Exploration 0.4
Total 0.2 3.7 4.0
Note: Capital and exploration expenditure presented on an accruals basis.
Preliminary results, 22 August 2012 Slide 34
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Maturity profile analysis
bhpbilliton
resourcing the future
Debt repayments1
(US$ million)
6,000
4,000
2,000
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 Post FY20
US$ Bonds Euro Bonds Bank Debt CP Issuance2 Jointly Controlled Entities3 Subsidiaries4
% of portfolio 71% 17% 0% 4% 7% 1%
Capital Markets 88% Bank Supported 4% Asset Financing 8%
1. Based on debt balances as at 30 June 2012.
2. The US$4.0 billion revolving credit facility maturing in December 2015 acts as a backstop for the commercial paper program.
3. Jointly Controlled Entity debt represents BHP Billiton share subject to governing contractual arrangements.
4. Subsidiary debt represents BHP Billiton share of subsidiary debt based on BHP Billiton effective interest.
Preliminary results, 22 August 2012 Slide 35
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Key net profit sensitivities
bhpbilliton
resourcing the future
Approximate impact1 on FY13 net profit after tax of changes of US$ million
US$1/t on iron ore price 110
US$1/bbl on oil price 45
US¢10/MMbtu on US gas price 25
US$1/t on metallurgical coal price 25
US¢1/lb on aluminium price 25
US¢1/lb on copper price 20
US$1/t on energy coal price 25
US¢1/lb on nickel price 2
AUD (US¢1/A$) operations2 110
RAND (0.2 Rand/US$) operations2 35
1. Assumes total volume exposed to price.
2. Impact based on average exchange rate for the period.
Preliminary results, 22 August 2012 Slide 36
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bhpbilliton
resourcing the future
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: August 22, 2012 | By: | /s/ Jane McAloon | ||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||