BHP Group Limited — Investor Presentation 2017

Mar 28, 2017

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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

29 March 2017

To: Australian Securities Exchange London Stock Exchange

cc: New York Stock Exchange JSE Limited

GLOBAL IRON ORE AND STEEL FORECAST CONFERENCE

BHP Billiton Asset President, Western Australia Iron Ore, Edgar Basto, will present at the Global Iron Ore and Steel Forecast Conference, in Perth, Western Australia today.

A copy of the presentation is attached.

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

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Rachel Agnew Company Secretary

BHP Billiton Limited ABN 49 004 028 077

Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000

BHP Billiton Plc Registration number 3196209 Registered in England and Wales Registered Office: Neathouse Place, London SW1V 1LH United Kingdom

The BHP Billiton Group is headquartered in Australia

NEWS RELEASE

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Release Time IMMEDIATE Date 29 March 2017 Release Number 12/17

OUR CULTURE TO DRIVE VALUE AND RETURNS AT WAIO

Speaking at the 20[th] Annual Global Iron Ore and Steel Forecast Conference, BHP Billiton Western Australia Iron Ore (WAIO) Asset President, Edgar Basto, said that while the growth of low-cost seaborne iron ore supply is expected to outpace incremental demand, the Company is well-positioned to continue to grow value and returns.

“Our drive for increased performance focuses on operational discipline and the involvement of front line personnel, and is delivering ongoing improvements in our business,” Mr Basto said.

WAIO achieved record production of 136 million tonnes (100 per cent basis) in the December 2016 half year. The completion of the rail renewal and maintenance program in the last quarter of the 2017 financial year, which is running six months ahead of schedule, coupled with the ramp-up of additional capacity at the Jimblebar mining hub and ongoing productivity improvements, are expected to deliver an increase in WAIO system capacity to 290 million tonnes per annum (Mtpa) in the 2019 financial year.

BHP Billiton’s new operating model is also supporting improved performance, with additional opportunities identified to improve rail cycle times, truck availability and fuel consumption, as well as to increase equipment reliability and extend equipment life, thereby lowering operating costs further.

Mr Basto also outlined the sustaining investment options currently being considered.

“Our Yandi mine, located in the central Pilbara, is currently operating at 80 Mtpa but will be depleted over the next five to 10 years. We are looking at options to replace this production. South Flank is the preferred long-term solution, subject to Board approval being obtained. The investment case for using this high-grade deposit for replacement tonnes is strong, given BHP Billiton’s ability to utilise existing infrastructure at the Mining Area C operation where possible,” Mr Basto said.

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

Media Relations

Investor Relations

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BHP Billiton Limited ABN 49 004 028 077 LEI WZE1WSENV6JSZFK0JC28 Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015

BHP Billiton Plc Registration number 3196209 LEI 549300C116EOWV835768 Registered in England and Wales Registered Office: Neathouse Place London SW1V 1LH United Kingdom Tel +44 20 7802 4000 Fax +44 20 7802 4111

Members of the BHP Billiton Group which is headquartered in Australia

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Global Iron Ore & Steel Forecast Our culture to drive value in the Pilbara

Edgar Basto Asset President Western Australia Iron Ore 29 March 2017

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 and other financial information

BHP Billiton results are reported under International Financial Reporting Standards (IFRS). This release may also include certain non-IFRS and other measures including Underlying EBIT, Underlying EBITDA (all references to EBITDA refer to Underlying EBITDA), Adjusted effective tax rate, Free cash flow, Gearing ratio, Controllable cash costs, Net debt, Net operating assets, Underlying return on capital, Underlying attributable profit, Underlying basic earnings/(loss) per share and Underlying EBITDA margin. These measures are used internally by management to assess the performance of our business and segments, make decisions on the allocation of our resources and assess operational management. Non-IFRS and other 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.

No offer of securities

Nothing in this presentation should be construed as either an offer 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.

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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Key themes

• The health and safety of our people and the communities in which we operate always come first

• China and Emerging Asia expected to support steel demand growth

• Our tier 1 assets and focus on productivity support strong and sustainable returns

• South Flank is our preferred option to sustain volumes

• The new organisational structure facilitates continuous improvement at all levels

• Inclusion and diversity are core to our success

• Partnering with our local communities to create shared value

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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China and Emerging Asia expected to support steel demand growth

Gap to close in emerging market steel stock

Accumulated stock of steel per capita

(t)

• China’s accumulated steel stock per capita still lags developed economies

• Chinese steel demand is expected to grow despite a moderation in the growth rate

• India and South East Asian economies have strong growth potential

• Geopolitical uncertainty and protectionism inhibit international trade and investment

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15
10
5
0
2000 2015 2020e 2025e 2030e 2035e
Emerging Asia (excl. China)¹ China US Europe
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Source: World Steel Association; BHP Billiton analysis.

1. Emerging Asia includes India and countries in South Asia and North Asia, excluding China, Japan and South Korea.

Edgar Basto, Asset President Western Australia Iron Ore

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29 March 2017

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Seaborne suppliers continue to add low cost, high quality tonnes

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Differential to Platts 62 Coking Coal Price
(USc/dmtu CFR) (US$/t, FOB)
20 350
10 300
0 250
(10) 200
(20) 150
(30) 100
(40) 50
Jul 16 Sep 16 Nov 16 Jan 17 Mar 17
Metal Bulletin 58% Fines Index 65% Fines Index Argus PLV HCC
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Major producers continue to add low cost, high quality tonnes to market, Brazilian competition growing strongly[1] (wmt)

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180
120
60
0
2017 2018
Australia Brazil
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Source: Wood Mackenzie and publicly reported information.

1. Results presented on a cumulative basis.

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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Strong performance through the cycle

• Record H1 FY17 production of 136 Mt

• Reduced our unit cost[2] to US$15.05/wmt FOB

• We have further opportunities to lower unit cost

Strong recovery in returns

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(Return on Net Operating Assets, %) (Average realised FOB Price, US$/wmt)
60 120
90
40
60
20
30
0 0
1
FY13 FY14 FY15 FY16 H1 FY17
RONA US$/wmt FOB
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Disciplined and sustainable cost[2] reduction

(US$/wmt FOB)

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30
20
10
0
FY13 FY14 FY15 FY16 H1 FY17
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1. Based on WAIO H1 FY17 Underlying EBIT annualised, including third party products.

2. FOB unit cash cost excluding freight and royalties.

Edgar Basto, Asset President Western Australia Iron Ore

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29 March 2017

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Three years of continuous improvement has delivered strong results

• 11% improvement in TRIF

• >5,000 improvement initiatives

• 26% increase in production

• 48% reduction in cost[1]

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Note: H1 FY14 to H1 FY17 comparison.

1. FOB unit cash cost excluding freight and royalties.

Edgar Basto, Asset President Western Australia Iron Ore

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29 March 2017

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Further strengthening our position

Improving operations to support further productivity

• Renewal of rail infrastructure will decrease cycle times, six months ahead of schedule

• Real time schedule optimisation across the supply chain

• Debottlenecking and minor capital supports 290 Mtpa by the end of FY19

Port Hedland inflow

(Annualised Mtpa by month)

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290
260
230
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inflow 3-month moving average
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South Flank sustaining volumes

• Unlocking resources within reach of the existing Mining Area C hub, using installed capacity as much as possible

• High quality and low strip ratio

• Low capital intensity

Note: South Flank remains subject to Board approval

Edgar Basto, Asset President Western Australia Iron Ore

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Mining Area C Deposit
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South Flank Deposit

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Mining Area C
Rail
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29 March 2017

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New structure unlocks global sharing and learning

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Example: Maintenance Centre of Excellence

• World leading performance

• Value through total equipment strategies

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Caterpillar 793F improvement outcomes

• 20% engine life improvement

• 50% front suspension life improvement

• 20% final drive life improvement

• Servicing to improve reliability

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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Inclusion and diversity are central to our success

Why?

• Safety Culture Productivity

• • • • 19% to 68% less injuries Confident to speak up Production forecast accuracy is 7% to 15% higher

• • • More likely to follow safe work Rate BHP Billiton, their job and •

• practices and raise unsafe leader more favourably 10% higher adherence to conditions planned maintenance work

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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Western Australia Iron Ore contributing to the broader community and economy

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Payments to
Goods and services
government [1]
TOTAL sourced locally [2]
80%
$2.5 billion
$1.2
600 $255 100,000
billion
in wages paid to our businessesWA million retail shareholders in
workforce of around Western Australia
in contributions to our
sharing in the success
host communities
16,000 Supplying to our operations of our business
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Note: FY16 results, all AUD unless otherwise stated.

1. Include taxes and royalties.

2. WAIO operational expenditure with vendors based in Western Australia Edgar Basto, Asset President Western Australia Iron Ore

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29 March 2017

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Key themes

• The health and safety of our people and the communities in which we operate always come first

• China and Emerging Asia expected to support steel demand growth

• Our tier 1 assets and focus on productivity support strong and sustainable returns

• South Flank is our preferred option to sustain volumes

• The new organisational structure facilitates continuous improvement at all levels

• Inclusion and diversity are core to our success

• Partnering with our local communities to create shared value

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Edgar Basto, Asset President Western Australia Iron Ore 29 March 2017

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