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Year Ended June 30 Financial Results – BHP Billiton Limited

BHP Billiton Limited · Jun 30, 2016 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 1
    Financial results Year ended 30 June 2016 Olympic Dam
  2. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 2
    Spence Escondida Financial results Year ended 30 June 2016 Andrew Mackenzie Chief Executive Officer South Walker Creek
  3. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 3
    Solid performance in a challenging year Safety Committed to addressing consequences of the Samarco tailings dam failure Zero fatalities at BHP Billiton operated sites Volume Record WAIO and metallurgical coal production; strong…
  4. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 4
    Committed to Samarco Rehabilitation progressing well Samarco infrastructure Germano and Santarem Dams reinforcement works continue 90% of the 41 work programs initiated community resettlement ongoing Foundation established…
  5. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 5
    Safety is paramount The health and safety of our people and communities always Total Recordable Injury Frequency at operated sites come first (number of recordable injuries per million hours worked1) 10 tragically 19 lives were lost…
  6. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 6
    Financial results Year ended 30 June 2016 Peter Beaven Chief Financial Officer Shenzi
  7. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 7
    Asset quality and operating performance drive margins Underlying EBITDA of US12.3 billion Leading margins through the cycle (Underlying EBITDA margin1, %) Underlying EBITDA margin of 41% 60 16% reduction in unit costs Underlying…
  8. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 8
    Group EBITDA waterfall Underlying EBITDA variance (US billion) 24 21.9 External (US9.9 billion) Controllable US0.3 billion 16 1.1 0.2 0.2 12.3 12.0 1.4 (0.3) (0.3) (10.7) (0.4) (0.8) 8 0 FY15 Price Foreign Inflation…
  9. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 9
    Financial impact of Samarco dam failure Investment in Samarco written down to USnil at Equity accounted investment in Samarco 31 December 2015 Income statement impacts H1 H2 (US million) FY16 FY16 FY16 US1.2 billion provision at 30…
  10. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 10
    Free cash flow provides optionality Free cash flow of US3.4 billion Capital and exploration expenditure (cash basis) (US billion) net operating cash flow of US10.6 billion 24 capital and exploration expenditure of US7.7 billion1…
  11. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 11
    Disciplined capital allocation Our Capital Allocation Framework balances value Capital allocation in FY16 (US billion) creation, shareholder returns and balance sheet strength H1 H2 FY16 A credit rating maintained1 5.3 5.3 10.6 Net…
  12. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 12
    Escondida Financial results Year ended 30 June 2016 Andrew Mackenzie Chief Executive Officer Eastern Ridge
  13. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 13
    Well placed for the conditions we expect Near-term is difficult Commodity market outlook to 2025 well-supplied markets across our commodity suite ineffective monetary policy, political uncertainty, populist rejection of free trade…
  14. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 14
    Focused portfolio and simplified operating model Optimal portfolio after divestments and demerger Tier 1 portfolio (FY16 Underlying EBITDA margin, %) well-capitalised, low-cost, long-life assets with 80 expansion options Note:…
  15. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 15
    Broad suite of opportunities offers significant upside We have made significant progress to capture valuation upside and improve returns Productivity On track to deliver US2.2 billion of gains over two years to end FY17 Absorbed US1.6…
  16. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 16
    Momentum builds into the new financial year Steady volumes Lowest unit operating costs in a decade expected in FY17 (Mt, operating cost per copper equivalent tonne) FY17 copper equivalent volume growth of up to 4% (ex-Onshore US)…
  17. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 17
    Positioned to grow value and returns The right commodities We have opportunities to significantly increase returns (Return on Capital Employed3 at consensus prices, nominal) optimal diversification with petroleum and copper markets…
  18. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 18
  19. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 19
    Appendix
  20. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 20
    BHP Billiton guidance Group FY17e FY18e Capital and exploration expenditure (USbn) 5.4 6.2 Cash basis. Including: Maintenance 2.0 Exploration 0.8 0.8 US700m Petroleum and US60m Copper exploration program planned for FY17.…
  21. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 21
    BHP Billiton guidance (continued) Copper FY17e Total copper production (Mt) 1.66 Guidance for Escondida at 1.07 Mt. Pampa Norte production is expected to increase. Olympic Dam production guidance to remain unchanged. Guidance for…
  22. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 22
    Key Underlying EBITDA sensitivities Approximate impact1 on FY17 Underlying EBITDA of changes of: US million US1/t on iron ore price2 217 US1/bbl on oil price3 79 US10/MMbtu on US gas price 26 US1/t on metallurgical coal price…
  23. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 23
    Petroleum EBITDA waterfall Underlying EBITDA variance (US billion) 8.0 External (US3.7 billion) Controllable US0.2 billion 7.2 0.7 4.0 3.5 3.7 (0.0) 0.0 (3.6) (0.1) (0.0) (0.1) (0.4) 0.0 FY15 Price Foreign Inflation…
  24. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 24
    Copper EBITDA waterfall Underlying EBITDA variance (US billion) 6.0 External (US2.0 billion) Controllable (US0.6 billion) 5.2 0.3 3.2 0.0 3.0 (2.2) (0.1) 0.2 2.6 0.2 0.0 (0.9) (0.1) 0.0 FY15 Price Foreign Inflation…
  25. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 25
    Iron Ore EBITDA waterfall Underlying EBITDA variance (US billion) 10.0 External (US3.4 billion) Controllable US0.4 billion 8.6 0.1 0.3 0.3 5.6 5.2 0.1 0.0 (0.0) (0.1) 5.0 (3.6) (0.1) 0.0 FY15 Price Foreign Inflation…
  26. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 26
    Coal EBITDA waterfall Underlying EBITDA variance (US billion) 1.6 External (US0.6 billion) Controllable US0.0 billion 1.2 0.1 0.2 0.0 0.8 0.4 0.0 0.0 0.6 0.6 (0.1) (0.3) (0.9) 0.0 FY15 Price Foreign Inflation…
  27. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 27
    Other items affecting profitability Other items (US billion) Underlying Underlying EBITDA attributable profit1 Exceptional items1 0.0 (0.2) (0.2) (0.2) (0.2) (0.3) (0.6) (2.0) (2.2) (4.0) (4.9) (6.0) Redundancies and…
  28. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 28
    Debt maturity profile Debt balances1 (US billion2) 8 6 4 2 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Post FY28 US Euro Sterling A C Bonds3 Bonds 3 Bonds 3 Bonds Bonds Subsidiaries % of portfolio 46%…
  29. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 29
    We remain positive on long-term copper fundamentals Short-term overcapacity in copper remains persistent Global demand slow recently, but long run trend is still positive (Refined copper demand1, Mt) Subdued demand with slower than…
  30. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 30
    Oil and US gas markets expected to rebalance Outlook remains healthy Oil mass balance: global (Inventory change, MMbbl/d) Fundamentals tightening, as healthy demand growth intersects with slower global production growth due to falling…
  31. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 31
    Iron ore demand outlook remains modest Chinese and global steel growth to slow Global steel production break-down (Regional split %) (CAGR %) Global steel production is likely to grow modestly in the future 100 10 Chinas steel demand…
  32. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 32
    Metallurgical coal outlook supported by growing demand for high-quality product Demand improvement to be moderate, supply slowly adjusting Seaborne metallurgical coal supply and demand (Bt) Cost curve has flattened Lower prices are…
  33. Year Ended June 30 Financial Results – BHP Billiton Limited – slide 33
    Energy coal expected to remain an important part of the global energy complex Markets expected to remain oversupplied in the near term Additional seaborne supply required to meet expected demand (Bt) Chinas demand for imports is likely…

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