BHP Group Limited — Annual Report 2016

Aug 17, 2016

6-K 1 d229248d6k.htm FORM 6-K FORM 6-K

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 16, 2016

BHP BILLITON LIMITED	BHP BILLITON PLC
(ABN 49 004 028 077)	(REG. NO. 3196209)
(Exact name of Registrant as specified in its charter)	(Exact name of Registrant as specified in its charter)
VICTORIA, AUSTRALIA	ENGLAND AND WALES
(Jurisdiction of incorporation or organisation)	(Jurisdiction of incorporation or organisation)
171 COLLINS STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA	NEATHOUSE PLACE, 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

BHP Billiton Limited	BHP Billiton Plc
171 Collins Street	Neathouse Place
Melbourne Victoria 3000 Australia	London SW1V 1LH UK
GPO BOX 86	Tel +44 20 7802 4000
Melbourne Victoria 3001 Australia	Fax + 44 20 7802 4111
Tel +61 1300 55 47 57 Fax +61 3 9609 3015	bhpbilliton.com
bhpbilliton.com

16 August 2016

To:
New York Stock Exchange

RESULTS PRESENTATION YEAR ENDED 30 JUNE 2016

Attached are the presentation slides for a presentation that will be given by the Chief Executive Officer and Chief Financial Officer shortly.

The Webcast for this presentation can be accessed at:

http://edge.media-server.com/m/p/fga4tpfi

Further information on BHP Billiton can be found at www.bhpbilliton.com.

●
Rachel Agnew
Company Secretary

BHP Billiton Limited ABN 49 004 028 077	BHP Billiton Plc Registration number 3196209
Registered in Australia	Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000	Registered Office: Neathouse Place, London SW1V 1LH United Kingdom

The BHP Billiton Group is headquartered in Australia

bhpbilliton Financial results Year ended 30 June 2016 Olympic Dam

Disclaimer 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’, ‘annualised’ 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, 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. Past performance cannot be relied on as a guide to future performance. 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 release may also include certain non-IFRS and other financial measures including Adjusted effective tax rate, Free cash flow, Gearing ratio, Net debt, Net operating assets, Underlying attributable profit, Underlying basic (loss)/earnings per share, Underlying EBIT margin and Underlying EBITDA margin. 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 and other financial measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. Presentation of data Unless specified otherwise: all data is presented on a continuing operations basis to exclude the contribution from assets that were demerged with South32; references to Underlying EBITDA margin exclude third party trading activities; data from subsidiaries is shown on a 100 per cent basis and data from equity accounted investments and other operations is shown on a proportionate consolidation basis. Queensland Coal comprises the BHP Billiton Mitsubishi Alliance (BMA) asset, jointly operated with Mitsubishi, and the BHP Billiton Mitsui Coal (BMC) asset, operated by BHP Billiton. Numbers presented may not add up precisely to the totals provided due to rounding. 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, or be treated or relied upon as a recommendation or advice by BHP Billiton. 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. Financial results 16 August 2016 2 bhpbilliton

bhpbilliton Financial results Year ended 30 June 2016 Andrew Mackenzie Chief Executive Officer South Walker Creek

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 conventional petroleum volumes Offset by anticipated Escondida grade decline and deferral of Onshore US activity Cost Unit cash costs across the Group down 16% from FY151 Productivity gains of US$437 million (gains of US$2.0 billion excluding Escondida grade decline) Financial Underlying EBITDA of US$12.3 billion; Underlying EBITDA margin of 41% results Underlying attributable profit of US$1.2 billion; Attributable loss of US$6.4 billion Cash Net operating cash flow of US$10.6 billion flow Free cash flow2 of US$3.4 billion Balance Net debt of US$26.1 billion sheet Liquidity of US$16.3 billion and long-dated maturity profile Dividend Final dividend of US$0.14 per share Total FY16 dividend determined of US$0.30 per share 1. Presented on a continuing operations basis excluding BHP Billiton’s share of volumes from equity accounted investments; operating cost per copper equivalent tonne calculated using FY16 realised prices. 2. Free cash flow: net operating cash flows less net investing cash flows. Financial results 16 August 2016 4 bhpbilliton

Committed to Samarco Rehabilitation progressing well - Germano and Santarem Dams reinforcement works continue - 90% of the 41 work programs initiated - community resettlement ongoing Foundation established - Framework Agreement is the appropriate long-term response Expect findings of the external investigation into the cause of the dam failure to be released shortly Preparation for the wet season a priority Technical studies indicate Samarco can restart safely - completion of stabilisation work, range of permits and community support required Samarco infrastructure Santarem Dam, November 2015 Environment Barra Longa, November 2015 Rebuilt Santarem Dam, March 2016 River stabilisation at Barra Longa, May 2016 Financial results 16 August 2016 5 bhpbilliton

Safety is paramount The health and safety of our people and communities always come first - tragically 19 lives were lost following the Samarco dam failure Strong safety performance at BHP Billiton operated sites - zero fatalities in FY16 - TRIF of 4.3 per million hours worked - 20% reduction in high potential safety events - better investigation quality and learning from past events Total Recordable Injury Frequency at operated sites (number of recordable injuries per million hours worked1) 10 8 6 4 2 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1. FY06 to FY14 presented on a total operations basis. Financial results 16 August 2016 bhpbilliton 6

bhpbilliton Financial results Year ended 30 June 2016 Peter Beaven Chief Financial Officer Shenzi

Asset quality and operating performance drive margins Underlying EBITDA of US$12.3 billion - Underlying EBITDA margin of 41% - 16% reduction in unit costs Underlying EBIT of US$3.5 billion Underlying attributable profit of US$1.2 billion - Attributable loss of US$6.4 billion - US$7.7 billion of exceptional items (after tax) Leading margins through the cycle (Underlying EBITDA margin1, %) 60 35 10 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 BHP Billiton Peer group range Petroleum 240 MMboe Conventional cost: US$ 8.53/boe EBITDA: US$3.7 billion EBITDA margin: 54% Copper 1,580 kt Cost: US$1.20/lb EBITDA: US$2.6 billion EBITDA margin: 35% Iron Ore 227 Mt Cost2: US$15/t EBITDA2: US$5.5 billion EBITDA2 margin: 53% Metallurgical Coal 43 Mt Cost2: US$55/t EBITDA2: US$584 million EBITDA2 margin: 17% 1. BHP Billiton data for FY06 to FY14 presented on a total operations basis. Peer group comprises Anglo American, Rio Tinto and Vale. 2. Unit cost, EBITDA and EBITDA margins refer to Western Australia Iron Ore and Queensland Coal. Financial results 16 August 2016 8 bhpbilliton

Group EBITDA waterfall Underlying EBITDA variance (US$ billion) 24 21.9 External (US$9.9 billion) Controllable US$0.3 billion 16 1.1 0.2 12.3 12.0 1.4 0.2 (0.3) (0.3) (10.7) (0.4) (0.8) 8 0 FY15 Price1 Foreign exchange Inflation Sub-total Growth volumes Productivity volumes Controllable cash costs Fuel & energy Non-cash2 Other3 FY16 1. Net of price-linked costs. 2. Non-cash includes deferred stripping depletion. 3. Other includes ceased and sold operations, asset sales, one-off items and other items (including profit/loss from equity accounted investments). Financial results 16 August 2016 9 bhpbilliton

Financial impact of Samarco dam failure Investment in Samarco written down to US$nil at 31 December 2015 US$1.2 billion provision at 30 June 2016 reflects uncertainty around potential restart - equivalent to 50% share of current estimate of Samarco’s funding obligations under terms of Framework Agreement - US$134 million funding support to Foundation’s reparatory and compensatory programs will be offset against provision Direct costs incurred by BHP Billiton1 of US$70 million Samarco financial support made available for remediation and stabilisation work and to support operations - short-term funding facility of US$116 million for restart and working capital will be released only as required - safe restart is an important priority, along with the restructure of Samarco’s debt Equity accounted investment in Samarco Income statement impacts H1 H2 (US$ million) FY16 FY16 FY16 Share of loss relating to dam failure & impairment of carrying value of the (1,180) - (1,180) investment in Samarco BHP Billiton Brasil provision - (1,200) (1,200) Costs incurred directly by BHP Billiton1 (8) (62) (70) in relation to the Samarco dam failure Total pre-tax Samarco dam failure exceptional expense (1,188) (1,262) (2,450) Income tax benefit / (expense) 330 (77) 253 Total Samarco dam failure (858) (1,339) (2,197) exceptional expense Balance sheet impacts H1 H2 (US$ million) FY15 FY16 FY16 FY16 Investment in Samarco 1,0442 - - - BHP Billiton Brasil provision - - (1,200) (1,200) 1. Includes BHP Billiton Brasil and other BHP Billiton entities. 2. Excludes US$136 million representing share of operating profit prior to the dam failure on 5 November 2015. Financial results 16 August 2016 10 bhpbilliton

Free cash flow provides optionality Free cash flow of US$3.4 billion - net operating cash flow of US$10.6 billion - capital and exploration expenditure of US$7.7 billion1 - working capital release of US$0.2 billion - ~40% reduction in Group overheads over 4 years2 Balance sheet is strong - net debt of US$26.1 billion - average debt maturity of 9 years - liquidity of US$16.3 billion - ‘A’ credit rating maintained3 Capital and exploration expenditure (cash basis) (US$ billion) 24 12 0 FY12 FY13 FY14 FY15 FY16 FY17e Movements in net debt (US$ billion) 28 3.3 0.0 25.9 1.4 26.1 24.4 (0.6) 0.9 0.1 24 (1.2) (2.2) 20 FY15 Free cash flow Dividends paid Other movements4 Non-cash movement5 H1 FY16 Free cash flow Dividends paid Other Movements4 Non-cash movement5 FY16 1. Cash basis. Capital and exploration expenditure of US$6.4 billion on a BHP Billiton share basis. 2. Excludes Samarco and Group capital expenditure. 3. Current credit rating of A (S&P) and A3 (Moody’s). We manage to a solid A credit rating through the cycle. 4. Includes purchase of shares by Employee Share Ownership Plan Trusts. 5. Non-cash movements include non-cash foreign exchange variance due to the revaluations of local currency denominated debt offset by non-cash fair value adjustment on hedged debt. Financial results 16 August 2016 11 bhpbilliton

Disciplined capital allocation Our Capital Allocation Framework balances value creation, shareholder returns and balance sheet strength - ‘A’ credit rating maintained1 - total dividends paid of US$4.1 billion - growth capital and exploration expenditure of US$5.7 billion Board will consider additional cash returns over minimum 50% payout at every reporting period US$0.30 per share dividend determined in FY16 - H1: US$0.16 per share (US$0.04 plus US$0.12 additional) - H2: US$0.14 per share (US$0.08 plus US$0.06 additional) Capital allocation in FY16 (US$ billion) H1 H2 FY16 5.3 5.3 10.6 Net operating cash flow 1.0 1.0 2.0 maintenance capital Solid A credit rating through the cycle balance sheet 3.32 0.2 3.5 minimum dividend paid 1.0 4.1 5.1 Excess cash (2.3) 1.3 (0.9) balance sheet Maximise returns and value 3.4 2.3 5.7 organic growth investment - 0.6 0.6 additional dividend amount - - - buy-backs (0.1) (0.2) (0.3) acquisitions/(divestments) 1. Current credit rating of A (S&P) and A3 (Moodys). We manage to a solid A credit rating through the cycle. 2. Final dividend determined under progressive dividend policy in August 2015. Financial results 16 August 2016 12 bhpbilliton

bhpbilliton Financial results Year ended 30 June 2016 Andrew Mackenzie Chief Executive Officer Eastern Ridge

Well placed for the conditions we expect Near-term is difficult - well-supplied markets across our commodity suite - ineffective monetary policy, political uncertainty, populist rejection of free trade suppressing business confidence Fundamentals to return as markets rebalance over the medium term Robust longer-term demand outlook - China’s industrial output and fixed investment solid - urbanisation, industrialisation and freer trade will lift demand from other emerging markets

	Commodity market outlook to 2025
	Petroleum1
Supply opportunity by 2025 (versus 2015)	Copper
	Potash
	Energy coal
	Iron ore
	Metallurgical coal
	Time until expected market rebalance

Source: Wood Mackenzie, BHP Billiton analysis. 1. Includes crude and US gas. Financial results 16 August 2016 14 bhpbilliton

Focused portfolio and simplified operating model Optimal portfolio after divestments and demerger - well-capitalised, low-cost, long-life assets with expansion options - diversified across the right commodities - favourable geographic concentration New operating model accelerates productivity gains - assets focused solely on safety, volume and cost - globally integrated functions co-located with the assets - centres of excellence for maintenance, projects and geoscience - new structure has lowered overheads through fewer layers and increased spans of control Tier 1 portfolio (FY16 Underlying EBITDA margin, %) 80 Note: Bubble size represents FY16 copper equivalent production1 Iron ore Petroleum 60 40 Copper Energy coal 20 Metallurgical coal 0 1st 2nd 3rd 4th Cost curve position2 (quartile) Source: AME; Wood Mackenzie; BHP Billiton analysis. 1. Copper equivalent production based on FY16 realised prices. 2. Based on weighted average equity share of production using quality-adjusted operating cost curves versus contestable demand in the markets in which our assets operate. Financial results 16 August 2016 15 bhpbilliton

Broad suite of opportunities offers significant upside We have made significant progress to capture valuation upside and improve returns

Productivity	On track to deliver US$2.2 billion of gains over two years to end FY17
	Absorbed US$1.6 billion impact of grade decline at Escondida in FY16
Latent	Latent capacity options equate to >10% of current production at a capital cost of ~US$1.5 billion
capacity	Los Colorados Extension approved; Spence Recovery Optimisation ramping up; new Jimblebar capacity
	by December; Queensland Coal capacity creep; Olympic Dam on track for 230 ktpa by 2021
Shale	Onshore US free cash flow positive in FY17 at consensus prices
	Launched hedging program to unlock resource in the Haynesville
Projects	Mad Dog 2 investment decision expected in the next 12 months
	Spence Growth Option due for Board review in H2 CY17;
	Olympic Dam Brownfield Expansion (BFX) now at concept study phase
Exploration	Counter cyclical investment to accelerate oil and copper exploration
	Exploration wells currently drilling in the Gulf of Mexico and Trinidad & Tobago
Technology	Ongoing investment in technology to lower costs and unlock resources
	IROC for Coal approved; Olympic Dam heap leach trials moved to next stage

Financial results 16 August 2016 16 bhpbilliton

Momentum builds into the new financial year Steady volumes FY17 copper equivalent volume growth of up to 4% (ex-Onshore US) Onshore US will respond to market conditions lower costs productivity gains of US$1.8 billion expected in FY17 unit costs expected to reduce by 12%1 and higher capital productivity FY17 capital and exploration expenditure of US$5.4 billion2 biased to latent capacity and low-cost growth will drive free cash flow and lower debt free cash flow of over US$7 billion in FY17 at spot prices3 FY16 net debt of US$26.1 billion expected to be the peak this cycle Lowest unit operating costs in a decade expected in FY17 (Mt, operating cost per copper equivalent tonne)

FY07	FY10
Volumes1	Operating cost per copper equivalent tonne¹

1. Presented on a continuing operations basis excluding BHP Billiton’s share of volumes from equity accounted investments; operating cost per copper equivalent tonne calculated using FY16 realised prices. 2. On a cash basis. Capital and exploration expenditure of US$5.0 billion on BHP Billiton share basis. 3. Spot prices at 8 August 2016. Financial results 16 August 2016 17 bhpbilliton

Positioned to grow value and returns The right commodities optimal diversification with petroleum and copper markets expected to rebalance first the right assets optimal portfolio of well-capitalised, low-cost, long life assets the right structure 12 operated assets, 4 commodities, 3 operating groups to maximise free cash flow1 free cash flow of over US$7 billion in FY17 at spot prices2 The right capital allocation framework balances value creation, shareholder returns and balance sheet strength to drive value and returns strong progress on suite of opportunities to grow value and improve ROIC We have opportunities to significantly increase returns (Return on Capital Employed3 at consensus prices, nominal) (Years) 1. Free cash flow: operating cash flow less capital expenditure and exploration. 2. Spot prices at 8 August 2016. 3. Assumes all latent capacity and growth options (including Onshore US) proceed. Financial results 16 August 2016 18 bhpbilliton

bhpbilliton

bhpbilliton Appendix

BHP Billiton guidance Group FY17e FY18e Capital and exploration expenditure (US$bn) 5.4 6.2 Cash basis. Including: Maintenance 2.0 Exploration 0.8 0.8 US$700m Petroleum and US$60m Copper exploration program planned for FY17. Petroleum FY17e Total petroleum production (MMboe) 200 - 210 Onshore US Capital expenditure (US$bn) 0.6 Development activity tailored to market conditions. Production (MMboe) 77 - 83 We continue to balance near-term cash flow performance and long-term value maximisation. Conventional Petroleum Capital expenditure (US$bn) 0.8 Focused on life extension projects at Bass Strait and North West Shelf. Production (MMboe) 123 - 127 35 day maintenance shutdown at Atlantis in Q1 FY16, deferral of infill drilling in the Gulf of Mexico for value and natural field decline. Unit cost (US$/barrel) 10 Excludes inventory movements, freight, and third party and exploration expense. Exploration (US$bn) 0.7 Focused on Gulf of Mexico, the Caribbean and the Northern beagle sub-basin. Financial results 16 August 2016 21 bhpbilliton

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 Antamina production to decrease to 130 kt as planned mining sequence moves through lower a copper grade zone. Escondida Production (Mt, 100% basis) 1.07 Enabled by the commissioning of the Escondida Water Supply project and the ramp up of the Los Colorados Extension. Unit cash costs (US$/lb) 1.00 Excludes freight and treatment and refining charges. Net of by-product credits. Based on an exchange rate of USD/CLP 698. Iron Ore FY17e Total iron ore production (Mt) 228 - 237 Excludes production from Samarco. Western Australia Iron Ore Production (Mt, 100% basis) 265 - 275 Unit cash costs (US$/t) 14 Excludes freight and royalties; based on an exchange rate of AUD/USD 0.71. Sustaining capital expenditure (US$/t) 4 Long term average; +/- 50% in any given year. Coal FY17e Total metallurgical coal production (Mt) 44 Total energy coal production (Mt) 30 The divestment of Navajo Coal to Navajo Transitional Energy Company was completed on 29 July 2016. Queensland Coal Production (Mt) 44 Unit cash costs (US$/t) 52 Excludes freight and royalties; based on an exchange rate of AUD/USD 0.71. Sustaining capital expenditure (US$/t) 6 Long term average; +/- 50% in any given year. NSW Energy Coal Production (Mt) 19 Unit cash costs (US$/t) 38 Excludes freight and royalties; based on an exchange rate of AUD/USD 0.71. Sustaining capital expenditure (US$/t) 4 Long term average; +/- 50% in any given year. Financial results 16 August 2016 22 bhpbilliton

Key Underlying EBITDA sensitivities

Approximate impact1 on FY17 Underlying EBITDA of changes of:	US$ million
US$1/t on iron ore price2	217
US$1/bbl on oil price3	79
US¢10/MMbtu on US gas price	26
US$1/t on metallurgical coal price	42
US¢1/lb on copper price2	34
US$1/t on energy coal price2	18
US¢1/lb on nickel price	2
AUD (US¢1/A$) operations4	78

1. Assumes total volume exposed to price; determined on the basis of BHP Billiton’s existing portfolio. 2. Excludes impact of equity accounted investments. 3. Excludes impact of change in input costs across the Group. 4. Based on average exchange rate for the period. Financial results 16 August 2016 23 bhpbilliton

Petroleum EBITDA waterfall Underlying EBITDA variance (US$ billion) 8.0 External (US$3.7 billion) Controllable US$0.2 billion 7.2 0.7 4.0 3.7 3.5 (0.0) (3.6) (0.1) (0.0) 0.0 (0.1) (0.4) 0.0 FY15 Price1 Foreign exchange Inflation Sub-total Growth volumes Controllable cash costs Fuel & energy Non-cash2 Other3 FY16 1. Net of price-linked costs. 2. Non-cash includes change in deferred stripping depletion. 3. Other includes ceased and sold operations, asset sales, one-off items and other items (including profit/loss from equity accounted investments). Financial results 16 August 2016 24 bhpbilliton

Copper EBITDA waterfall Underlying EBITDA variance (US$ billion) 6.0 External (US$2.0 billion) Controllable (US$0.6 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 Price1 Foreign exchange Inflation Sub-total Growth volumes Productivity volumes Controllable cash costs Fuel & energy Non-cash2 Other3 FY16 1. Net of price-linked costs. 2. Non-cash includes change in deferred stripping depletion. 3. Other includes asset sales, one-off items and other items (including profit/loss from equity accounted investments). Financial results 16 August 2016 25 bhpbilliton

Iron Ore EBITDA waterfall Underlying EBITDA variance (US$ billion) 10.0 External (US$3.4 billion) Controllable US$0.4 billion 8.6 0.1 0.3 5.6 0.3 5.2 0.0 0.1 (0.0) (0.1) 5.0 (3.6) (0.1) 0.0 FY15 Price1 Foreign exchange Inflation Sub-total Growth volumes Productivity volumes Controllable cash costs Fuel & energy Non-cash2 Other3 FY16 1. Net of price-linked costs. 2. Non-cash includes change in deferred stripping depletion. 3. Other includes ceased and sold operations, asset sales, one-off items and other items (including profit/loss from equity accounted investments). Financial results 16 August 2016 26 bhpbilliton

Coal EBITDA waterfall Underlying EBITDA variance (US$ billion) 1.6 External (US$0.6 billion) Controllable US$0.0 billion 1.2 0.1 0.2 0.0 0.8 0.4 0.6 0.0 0.0 0.6 (0.1) (0.3) (0.9) 0.0 FY15 Price1 Foreign exchange Inflation Sub-total Growth volumes Productivity volumes Controllable cash costs Fuel & energy Non-cash2 Other3 FY16 1. Net of price-linked costs. 2. Non-cash includes change in deferred stripping depletion. 3. Other includes ceased and sold operations, asset sales, one-off items and other items (including profit/loss from equity accounted investments). Financial results 16 August 2016 27 bhpbilliton

Other items affecting profitability Other items (US$ billion) Underlying Underlying EBITDA attributable profit1 Exceptional items1 0.0 (0.3) (0.2) (0.2) (0.2) (0.2) (0.6) (2.0) (2.2) (4.0) (4.9) (6.0) Redundancies and closure costs Royalty and taxation matters Redundancies and closure costs Minor impairments Royalty and taxation matters Global taxation matters Samarco dam failure Impairment of Onshore US 1. Post tax consequences. Financial results 16 August 2016

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$ Bonds 3Euro Bonds3 Sterling Bonds3 A$ Bonds C$ Bonds Subsidiaries % of portfolio 46% 30%11%5%2%6% Capital markets 94% Asset financing 6% 1. All debt balances are represented in notional US$ values and based on financial years. As at 30 June 2016. 2. Subsidiary debt is presented in accordance with IFRS 10 and IFRS 11. 3. Includes hybrid bonds (18% of portfolio: 9% in US$, 6% in Euro, 3% in Sterling). Financial results 16 August 2016 29 bhpbilliton

We remain positive on long-term copper fundamentals Short-term overcapacity in copper remains persistent Subdued demand with slower than expected growth in China and recession in key non-Asian emerging economies Increased supply from new and expanded operations with more growth expected near term Long-term fundamentals are sound Demand growth will continue as China transitions to a consumer-driven economy, and copper-intensive renewable energy capacity and electric vehicles grow rapidly Emerging markets will recover and converge to their natural intensity curves Grade decline and mine depletions will require investment in new supply Global demand slow recently, but long run trend is still positive (Refined copper demand1, Mt) 22.5 CAGR 1.5% 22.0 21.5 CY14 China RoW CIS/ S America CY15 CY15 CY30e Continued global ore grade decline expected (Copper grades2, %) 1.5 1.3 1.1 0.9 CY00 CY05 CY10 CY15 CY20e CY25e Source: Wood Mackenzie. 1. The two upper panels are not set to the same scale. 2. Based on average grade weighted by paid copper. Financial results 16 August 2016 30 bhpbilliton

Oil and US gas markets expected to rebalance Outlook remains healthy Fundamentals tightening, as healthy demand growth intersects with slower global production growth due to falling production in the US Rate of inventory drawdown will impact price recovery - OPEC and US production remain key watch points Higher prices will be required to induce the new supply needed to offset natural field decline and meet growing demand Near-term US natural gas prices driven by storage and weather; long-term market supported by robust demand growth Mild winter, industry-wide productivity gains and resilient supply resulted in record inventory levels Inventories forecast to return to average levels by end CY16 on strong demand growth and declining production While investment in new supply sources will be required, the abundant lower-cost supply will moderate price inflation Oil mass balance: global (Inventory change, MMbbl/d) 2.0 1.0 0.0 (1.0) CY12 CY13 CY14 CY15 CY16e CY17e Gas storage: US Lower 48 (tcf) 6.0 3.0 0.0 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 5 year min/max Gas stock 5 year average Storage forecast Source: BHP Billiton analysis; US Energy Information Administration (August 2016). Financial results 16 August 2016 31 bhpbilliton

Iron ore demand outlook remains modest Chinese and global steel growth to slow Global steel production is likely to grow modestly in the future China’s steel demand growth to become more cyclical as it moves past the inflection point on its intensity curve As China slows, global steel demand growth will mostly come from emerging economies, primarily India and Southeast Asia Low-cost iron ore to continue to displace higher cost supply Supply growth will continue to outweigh demand growth in coming years Lower costs through productivity is likely to remain a long-term feature Pilbara production expected to remain highly cost competitive Global steel production break-down (Regional split %) (CAGR %) 100 10 50 5 0 0 2005 2010 2015 2020e 2025e 2030e Developed China Other EMs¹ CAGR (RHS) Seaborne iron ore exports by region (% of global market) 60 40 20 0 Australia Brazil Others 2010 2015 2030e Source: Worldsteel; BHP Billiton analysis. 1. Other emerging markets: including developing Asian countries, Middle East, Africa and Latin America. Financial results 16 August 2016 32 bhpbilliton

Metallurgical coal outlook supported by growing demand for high-quality product Demand improvement to be moderate, supply slowly adjusting Cost curve has flattened Lower prices are leading to closures and reduced investment The world continues to require steel and metallurgical coal is essential for pig iron production China expected to continue to import seaborne metallurgical coal – demand supported by coastal market access and requirement for consistent, quality product in larger blast furnaces – encouraging signs following domestic coal supply reforms Robust outlook underpinned by scarcity of high-quality resources and demand growth in emerging economies – particularly in India where we expect strong steel production growth Seaborne metallurgical coal supply and demand (Bt) Supply opportunity 2015 2020e 2025e 2030e 2035e Existing supply1 Demand range Demand Gap to close in emerging market steel stock (finished steel per capita, t) 15 10 5 0 2000 2015 2020e 2025e 2030e 2035e Emerging Asia² China US Europe Source: Wood Mackenzie; Worldsteel; BHP Billiton analysis. 1. Includes productivity improvements. 2. Emerging Asia includes India, ASEAN and other South Asia. Excludes China, Japan, Taiwan and South Korea. Financial results 16 August 2016 33 bhpbilliton

Energy coal expected to remain an important part of the global energy complex Markets expected to remain oversupplied in the near term China’s demand for imports is likely to fall further as domestic overcapacity persists, however coal supply reforms encouraging More supply rationalisation is required to balance the market Coal’s share of the fuel mix will decline but total volume will grow due to cost competitiveness in Asia Absolute demand expected to increase by 10-15% by the mid-2020s, despite a declining share in the global electricity generation fuel mix India and South East Asia have 26% of the world’s population, but still account for only 13% of global electricity generation – low-cost energy coal is expected to be a preferred fuel source Additional seaborne supply required to meet expected demand (Bt) Supply opportunity 2015 2020e 2025e 2030e 2035e Existing supply1 Demand range Demand Global electricity fuel mix2 (PWh) (coal share, %) 50 50 25 25 0 0 2013 2020e 2030e 2035e Coal Nuclear Other Oil and gas Hydro Coal share Energy coal use in electricity2 (PWh) 15 10 5 0 2013 2020e 2030e 2035e India China RoW Other non-OECD Asia Source: Wood Mackenzie; IEA; BHP Billiton analysis. 1. Includes productivity improvements. 2. Based on IEA data from WEO2015_AnnexA © OECD/IEA, www.iea.org/statistics. Licence: www.iea.org/t&c; as modified by BHP Billiton. Financial results 16 August 2016 34 bhpbilliton

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.

By:	BHP Billiton Limited and BHP Billiton Plc — /s/ Rachel Agnew
Name:	Rachel Agnew
Title:	Company Secretary