Positioned for GrowthPositioned for Growth/media/bhp/documents/... · Positioned for Growth, Exane BNP Paribas European Seminar, 8 June 2011 Slide 8 Escondida is an example of a tier

Escondida, Chile

Positioned for GrowthPositioned for GrowthExane BNP Paribas European Seminar

Andrew Mackenzie Chief Executive Non-Ferrous8 J 20118 June 2011

Disclaimer

Reliance on Third Party InformationThe 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 p y y p y pshould not be relied upon as a recommendation or forecast by BHP Billiton.

Forward Looking StatementsThis 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 f t re performance and in ol e kno n and nkno n risks ncertainties and other factors man of hich are be ond o r control andfuture 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.

No Offer of SecuritiesNothing 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 InformationBHP 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.

Slide 2Positioned for Growth, Exane BNP Paribas European Seminar, 8 June 2011

Agenda

Supportive long term market fundamentals

Well positioned for growth

Concluding remarks


Supportive long term market fundamentals, but volatility to continue in the near term

Longer term, global GDP growth to Global GDP growth rate (% per annum)remain robust

Strong emerging market growth continues

(% per annum)

5

6Developed economies

Developing economiescontinues

Developed market data has improved

4

5

improved

However, economic risks remain

E i k t i fl ti 2

3

– Emerging market inflation– Sovereign debt issues

1

2

01900-1920

1920-1930

1930-1940

1940-1950

1950-1960

1960-1970

1970-1980

1980-1990

1990-2000

2000-2010

2010-2020

2020-2025

Source: 1900 to 1980 – J. Bradford De Long (“Estimates of World GDP”, 1998); 1980 to 2010 –IMF World Economic Outlook Database; 2010 to 2025 Forecast – Global Insight.


Chinese GDP is set to grow substantially to 2030

World GDP per capita1

(US$’000, real 2005 PPP)

US

50Bubble size = GDP of US$5 trillion (real 2005 PPP)

( $ , )

US

Eurozone

Japan

Australia Canada

30

40

South Korea

China 2030

US 1980 Japan

198020

China

India

Brazil

Chile Russia

South Africa

India 203010

00 200 400 600 800 1,000 1,200 1,400 1,600

Population( illi )

Source: Global Insight; BHP Billiton analysis.1. All figures for 2009 unless mentioned otherwise.

Slide 5

(million persons)

Positioned for Growth, Exane BNP Paribas European Seminar, 8 June 2011

Commodity intensity trends evolve with economic development

USA(Intensity index)( y )

ElectricityEmerging economies

Developed economies

160

180

120

140

Copper100

120

Steel60

80

GDP per capita $

400 5 10 15 20 25 30 35 40 45 50

Slide 6

Source: World Bank; Brook Hunt; CRU; IISI; Global Insight; CISA; worldsteel; JBS; IEA; BHP Billiton analysis.

(US$’000, real 2005 PPP)


A uniquely diversified portfolio to capture the demand opportunity

Underlying EBIT margin1

(H1 FY11 %)Underlying EBIT(H1 FY11 US$ billion) (H1 FY11, %)

37%

36%

Metallurgical Coal

Manganese

(H1 FY11, US$ billion)

ManganeseMetallurgical Coal

15

36%

62%

19%

Manganese

Iron Ore

SSM

Ferrous(51.2%)Iron Ore

1019%

33%

52%

SSM

D&SP

B M t lD&SPSSM

52%

1%

14%

Base Metals

Aluminium

E C l

Non Ferrous(27.8%)

Energy Coal

Base Metals

Aluminium5

14%

59%

Energy Coal

Petroleum

Energy(21.0%)

Energy Coal

Petroleum

0

1. Excludes third party trading.


What makes a tier 1 resource

Mineral Inventory

Mineral ResourceMineral Resource

Range of Potential Mineralisation xplo

ratio

n

Min

eral

isat

ion

Range of Potential Mineralisation(Based on Exploration Results)

Ore Reserve

Adv

ance

d E

x

disc

over

ed M

Und

Increasing geological knowledge and confidence

The range of Potential Mineralisation is estimated from geological information including boreholes, outcrops and geophysical information. The potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.


Escondida is an example of a tier 1 resource

820,000 m drilled during the last three years in exploration and development sa

tion

exploration and development

A significant volume of Potential Mineralisationhas been identified in Escondida, capable of

ResourcePotential Mineralisation

cove

red

Min

eral

is

Reserve

multiplying our current mineral inventory

1,550,000 m of additional drilling is planned over the next five years to test new targets and

Und

isc

over the next five years to test new targets and improve knowledge on existing inventory

This increased quantity and confidence of the

Increasing geological knowledge and confidence

Conveyor belt of Escondida concentrator capacity expansion projects (ktpd nameplate)

mineral inventory underpin the studies to grow processing capacity beyond OGP1

Escondida has the potential to remain as a

InstalledDefinition (Feasibility)Selection (Pre-Feasibility)Maximum Future OptionsMinimum Future Options

( p p )

Escondida has the potential to remain as a material copper producer for several decades

Minimum Future Options

Slide 9

Los Colorados

Laguna Seca

LSD OGP1 (net) Studies


Significant investment underpins our tier 1 growth strategy

Strong pipeline of investment(US$ billion)

80

90

(US$ billion)

E

Energy Coal

60

70

Potash

PetroleumEnergy

N f

Aluminium

Stainless Steel Materials

30

40

50

Metallurgical Coal

Copper

Non-ferrous

Manganese

10

20

30 Metallurgical Coal

Iron Ore

Ferrous

0Future options Pre-feasibility Feasibility Execution Other growth

capexTotal spend

FY11 to FY15Commodity split

Note: Excluding sustaining capital and exploration expenditure and future investment associated with the acquisition of the Fayetteville Shale.


Development activities clustered around our key hubs

Underlying EBIT(H1 FY11)

Execution: Daunia

Hay Point Stage 3 ExpansionF ibilit

Queensland CoalExecution:

DauniaHay Point Stage 3 Expansion

F ibilit

Queensland CoalWestern Australia Iron OreOther

Feasibility:Jansen Stage 1

Saskatchewan PotashFeasibility:

Jansen Stage 1

Saskatchewan Potash

Feasibility:Caval Ridge

Pre-feasibility:BMC Wards Well

Goonyella ExpansionP t d R il E i

Feasibility:Caval Ridge

Pre-feasibility:BMC Wards Well

Goonyella ExpansionP t d R il E i

Olympic Dam

EscondidaQueensland Coal

gPre-feasibility:

Jansen Stages 2 & 3 Potash Port Vancouver WA

gPre-feasibility:

Jansen Stages 2 & 3 Potash Port Vancouver WA

Port and Rail ExpansionPort and Rail Expansion

Execution:

Western Australia Iron OreExecution:

Western Australia Iron Ore

Execution:E did O A

Escondida CopperExecution:

E did O A

Escondida Copper

Execution: WAIO Expansion to +220mtpa

Pre-feasibility: Port Hedland Outer Harbour

Central Pilbara Mines

Execution: WAIO Expansion to +220mtpa

Pre-feasibility: Port Hedland Outer Harbour

Central Pilbara Mines

Escondida Ore AccessFeasibility:

Escondida Organic Growth Project 1Escondida Oxide Leach Area Project

Pre-feasibility: Escondida Bioleach Pad Extension IV

Escondida Ore AccessFeasibility:

Escondida Organic Growth Project 1Escondida Oxide Leach Area Project

Pre-feasibility: Escondida Bioleach Pad Extension IV

Feasibility:Olympic Dam Project 1

Pre-feasibility:

Olympic Dam Copper/UraniumFeasibility:

Olympic Dam Project 1Pre-feasibility:

Olympic Dam Copper/Uranium

Escondida Bioleach Pad Extension IVEscondida Bioleach Pad Extension IV Pre feasibility: Olympic Dam Project 2

Pre feasibility: Olympic Dam Project 2

Slide 11

Note: All projects remain under review until such time as they are sanctioned for execution.


Translating tier 1 resources into value for shareholders

High return tier 1 assets The stability of a diversified portfolio

50

Return on capital(%)

EBIT margin1

(%)

100Petroleum AluminiumB M t l D&SP

40

50

75

100 Base Metals D&SPSSM Iron OreManganese Metallurgical CoalEnergy Coal Total

20

30

25

50

0

10

FY06 FY07 FY08 FY09 FY10 H1 FY110

25

FY02² FY03 FY04 FY05 FY06 FY07 FY08 FY09² FY10 H1

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 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11

Peer groupBHP Billiton

Note: Peer group includes Rio Tinto, Vale, Anglo American and Xstrata.Source: Annual Reports, interim press releases and BHP Billiton analysis.

FY02 to FY05 and excluded from Diamonds and Specialty Products (D&SP).2. Negative margins are not shown as the y-axis is set at zero. Stainless Steel

Materials (SSM) had a negative EBIT margin in FY02 and FY09.


Well positioned for growth and shareholder returns

Our strategy has not changed BHP Billiton weighted average TSR (Ltd 60% and Plc 40%)

We plan to investment in excess of US$80 billion over five years

400%1,200%

1,200%

(Ltd 60% and Plc 40%)

in organic growth

We are returning cash to

300%

We are returning cash to shareholders via a progressive dividend and a US$10 billion share buy-back

200%200%

y

Our tier 1 portfolio continues to deliver superior margins and

100%

42%deliver superior margins and returns 0%

10 years¹5 years¹3 years¹

1. Period ended 31 December 2010.


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Positioned for GrowthPositioned for Growth/media/bhp/documents/... · Positioned for Growth, Exane BNP Paribas European Seminar, 8 June 2011 Slide 8 Escondida is an example of a tier