THIRD QUARTER RESULTS 1 May 2002 Chris Lynch Charles Goodyear Chief Financial Officer Executive Director & Chief Development Officer BHP Billiton presentation is (a) provided for the information of shareholders and does not constitute an invitation or inducement to such persons to enter into any investment activity relating to BHP Billiton Limited or BHP Billiton Plc securities and (b) is otherwise intended only for persons outside the UK or for persons in the UK who are investment professionals or to whom it may otherwise lawfully be communicated.
Highlights quarter ended 31 March 2002 Sound quarterly result in the face of difficult market conditions Turnover US$4.3 billion, EBITDA US$1.2 billion, attributable profit US$406 million Financial year to date turnover US$13.2 billion, EBITDA US$3.7 billion, attributable profit US$1.6 billion Final dividend of US6.5 cents to be paid on 3 July 2002 Commitment to growth US$2.4 billion in new growth projects sanctioned since the merger Little evidence of increases in demand for many of our products BHP Steel de-merger on track for completion mid year Slide 2 1 May 2002
Results highlights - excluding exceptionals Quarter Ended March Nine Mths Ended March (US$M) 2002 2001 2002 2001 Turnover* 4,282 4,674 13,176 14,070 EBITDA* 1,184 1,397 3,698 4,077 EBIT* 761 970 2,412 2,840 Attributable profit 406 604 1,604 1,762 EPS (US cents) 6.7 10.1 26.6 29.7 EBITDA interest cover 15.6x 8.6x 10.8x 8.9x *Including share of joint ventures and associates Slide 3 1 May 2002
EBIT by CSG - excluding exceptionals Aluminium Base Metals Carbon Steel Materials Stainless Steel Materials Energy Coal Explor n, Tech & New Business Other Activities Petroleum Steel Group & Unallocated BHP Billiton Group Quarter Ended March (US$M) 2002 2001 2002 2001 133 52 266 12 112 43 13 251 10 (131) 761 135 117 241-109 12 47 419 43 (153) 970 Nine Mths Ended March 324 120 831 (24) 462 85 116 827 79 (408) 2,412 353 370 663 61 266 38 152 1,125 255 (443) 2,840 Slide 4 1 May 2002
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 March 01 US$M 1,000 800 600 400 200 970 (180) 761 0 Quarter ended March 2001 Prices Inflation impact on costs Price linked costs Exch rates Acquisitions & new operations Expln Costs Volume Sold Other Quarter ops ended (incl BHP March Steel) 2002 Slide 5 1 May 2002
Impact of major commodity price changes on EBIT Quarter ended 31 March 02 v quarter ended 31 March 01 US$M 100 50 0 Met Coal 51 Energy Coal 29-50 -100 Others (5) Chrome (7) Nickel (16) Diamonds (34) Aluminium (52) -150 Petroleum (146) Excludes impact of price linked costs, which had a favourable impact of US$55M Slide 6 1 May 2002
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 March 01 US$M 1,000 800 600 400 200 970 (180) (40) 55 70 20 15 (10) (30) (60) (49) 761 0 Quarter ended March 2001 Prices Inflation impact on costs Price linked costs Exch rates Acquisitions & new operations Expln Costs Volume Sold Other Quarter ops ended (incl BHP March Steel) 2002 Slide 7 1 May 2002
Net interest, taxation & attributable profit Excluding exceptionals Quarter Ended March Nine Mths Ended March (US$M) 2002 2001 2002 2001 EBIT 761 970 2,412 2,840 Net interest expense (77) (165) (348) (463) Exchange impact on debt (22) 59 220 154 Profit before tax 662 864 2,284 2,531 Tax expense (245) (264) (647) (744) Minorities (11) 4 (33) (25) Attributable profit 406 604 1,604 1,762 Slide 8 1 May 2002
Issues for June 2002 quarter Economic conditions remain difficult little sign of increases in demand for many of our products Cuts to South Africa export energy coal production reflecting weakening European market Tax rate for June quarter expected to be in line with year to date figure of 33%, excluding exchange differences on net debt and UK petroleum tax increase 10% UK petroleum tax increase expected to increase June quarter tax expense by US$55 million (US$50m one-off adjustment and US$5m operational) and ongoing tax expense by approximately US$15 million per annum Petroleum crude volumes forecast to be lower mainly due to natural field decline at Bass Strait and Laminaria BHP Steel forecasts released on 24 April Slide 9 1 May 2002
Issues for June 2002 quarter (continued) Key net profit sensitivities Approximate impact on forecast June quarter net profit after tax of changes of: (US$M) US$1/bbl on oil price US$50/t on aluminium price USc1/lb on copper price USc10/lb on nickel price US$1/t on energy coal price 11 8 3 3 7 Slide 10 1 May 2002
Issues for June 2002 quarter (continued) Key net profit sensitivities Approximate impact on forecast June quarter net profit after tax of changes of: (US$M) Australian dollar (USc1/A$) Operations (net of hedging) (1) Net monetary liabilities (2) South African Rand (0.2 Rand/US$) Operations (1) Net monetary liabilities (2) Rand debt (2) 12 24 3 13 5 (1) Impact based on average exchange rate for the quarter (2) Impact based on difference in opening and closing exchange rates for the quarter Slide 11 1 May 2002
Growth New projects committed since January 2002 Zamzama gas Hillside 3 aluminium Mad Dog oil & gas and GoM pipelines Colombian coal acquisition Brownfield Greenfield Slide 12 1 May 2002 Mining Area C, Port expansion & Yandi lump
Steel Demerger - Plc bonus issue calculation Assumptions for the purposes of this calculation: BHP Steel VWAP*: A$3.45 per share Shares distributed to Ltd shareholders on a 1 for 5 basis Plc VWAP*: 400p /A$: 2.71 Ltd shareholders receive value of A$0.69 per Ltd share (A$3.45/5) Plc shareholders need to receive value of A$0.69 (25.5p) per Plc share Plc ex-rights price: 374.5p Bonus issue of 6.8% (or 1 for 14.710) 158m new Plc shares issued (total Plc shares on issue - 2,477m) Slide 13 1 May 2002 *Volume weighted average price SAMPLE ONLY PLEASE REFER TO SCHEME DOCUMENTS
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THIRD QUARTER RESULTS BACKUP SLIDES
EBIT analysis Quarter ended 31 March 02 v quarter ended 31 Dec 01 US$M 900 600 730 30 26 25 10 5 10 761 (10) (5) (50) (10) 300 0 Quarter ended December 2001 Prices Inflation impact on costs Price linked costs Exch rates Other Expln Costs Acquisitions Sold Volume Quarter & new ops ended operations (incl BHP March Steel) 2002 Slide 16 1 May 2002
A deep inventory of growth projects B R O W N F I E L D Intercor Sth BW Escondida Phase IV Tintaya Oxide Mozal 2 Mount Arthur North Zamzama FFD San Juan CdC Exp n Mining Area C Bream Gas Pipeline Esc da Norte Hillside 3 Yabulu R thorpe NWS 4th Train Dendrobium GoM Infrastr. CY 2002 2003 2004 2005 ROD Minerva Mad Dog Spence G R E E N F I E L D Note: Size of bubble indicates Third proposed Quarter capital Resultsexpenditure Slide 17 1 May 2002 $US 250m Coal Nickel Ohanet Aluminium Iron Ore Angostura Copper Oil and Gas Atlantis Kipper
Third quarter results under Australian GAAP Quarter ended 31 March 2002 Revenue from ordinary activities Profit from ordinary activities before tax Tax expense Net profit Outside equity interests in net profit Net profit attributable to members of combined BHP Billiton Group Basic earnings per share (cents) A$M 7,534 1,182 (396) 786 (22) 764 12.7 US$M 3,903 612 (205) 407 (11) 396 6.5 Slide 18 1 May 2002