2007 BHP BILLITON ANNUAL REVIEW 2007 21 It’S Our Capacity to Meet Demand
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BHP Billiton Annual Review 2007 BHP Billiton Annual Review It’s our... www.bhpbilliton.com Annual Review 2007 Contents Corporate Directory Group highlights 2007 2 Chairman’s Review 6 BHP BILLITON GROUP MARKETING OFFICES New Zealand REGISTERED OFFICES The Netherlands Computershare Investor Services Limited Chief Executive Officer’s Report 8 Level 2/159 Hurstmere Road BHP BILLITON LIMITED Verheeskade 25 2521 BE The Hague Takapuna North Shore City Our people 14 Australia Postal Address – Bag 92119 Auckland 1020 BHP Billiton Limited Telephone (31 70) 315 6666 Telephone (64 9) 488 8777 Our licence to operate 15 BHP Billiton Centre Facsimile (31 70) 315 6767 Facsimile (64 9) 488 8787 180 Lonsdale Street Singapore Our world-class assets 17 Melbourne VIC 3000 168 Robinson Road #10-01 United States Our BHP Billiton way 18 Telephone (61 3) 9609 3333 Capital Tower Computershare Investor Services Facsimile (61 3) 9609 3015 Singapore 068912 2 North LaSalle Street Our financial strength and discipline 19 Telephone (65) 6349 3333 Chicago, IL 60602 BHP BILLITON PLC Facsimile (65) 6349 4000 Postal Address – PO Box 0289 Our project pipeline 22 United Kingdom Chicago, IL 60690-9569 Neathouse Place Belgium Telephone 1 888 404 6340 Our growth options 23 London SW1V 1BH BHP Billiton Diamonds (Belgium) N.V. (toll-free within US) Hoveniersstraat 30 Telephone (44 20) 7802 4000 Facsimile (1 312) 461 4331 2018 Antwerp Customer Sector Group highlights 24 Facsimile (44 20) 7802 4111 Telephone (32 3) 201 1090 ADR Depositary, Transfer Agent and Registrar BHP Billiton locations 26 Company Secretaries Citibank Shareholder Services PO Box 43077 Jane McAloon (Group Company Secretary) Board of Directors 28 SHARE REGISTRARS AND Providence, RI 02940-5000 Robert Franklin (Company Secretary TRANSFER OFFICES USA Group Management Committee 32 – BHP Billiton Plc) Australia Telephone (1 781) 575 4555 (outside of US) Corporate Governance Statement 33 BHP Billiton Limited Registrar 1 877 248 4237 (1-877-CITIADR) (toll-free BHP BILLITON Computershare Investor Services within US) Remuneration Report 46 CORPORATE CENTRES Pty Limited Facsimile enquiries: (1 201) 324 3284 Yarra Falls, 452 Johnston Street Email enquiries: Directors’ Report 60 South Africa Abbotsford VIC 3067 [email protected] 6 Hollard Street Postal Address – GPO Box 2975 Website: www.citibank.com/adr Summary Financial Report 68 Johannesburg 2001 Melbourne VIC 3001 Telephone (27 11) 376 9111 Shareholder Information 82 Telephone 1300 656 780 (within Australia) Facsimile (27 11) 838 4716 (61 3) 9415 4020 (outside Australia) Other details provided to assist shareholders. Glossary 83 Chile Facsimile (61 3) 9473 2460 Avenida Americo Vespucio Sur # 100, Email enquiries: Germany Information for Shareholders 84 9th Floor [email protected] Trustee Las Condes Deutsche Boerse Clearing AG Corporate Directory IBC United Kingdom Santiago BHP Billiton Plc Registrar Dividend-paying bank Telephone (56 2) 330 5000 Computershare Investor Services PLC Deutsche Bank AG Facsimile (56 2) 207 6520 The Pavilions, Bridgwater Road Switzerland About this report United States Bristol BS99 7NH Trustee Postal Address – SEGA Schweizerische The BHP Billiton Strategic 1360 Post Oak Boulevard, Suite 150 Annual General Meetings Houston, TX 77056-3020 PO Box 82 Bristol BS99 7NH Effekten-Giro AG Framework comprises seven Telephone (44 870) 889 3148 Dividend-paying bank The Annual General Meeting of BHP Billiton Plc strategic drivers: People, our Telephone (1 713) 961 8500 Facsimile (1 713) 961 8400 Facsimile (44 870) 703 6103 UBS AG will be held at the Licence to Operate, World-class Email enquiries: Credit Suisse First Boston Queen Elizabeth II Conference Centre, Assets, the BHP Billiton Way, [email protected] Financial Strength and Broad Sanctuary, Westminster, South Africa London SW1P 3EE, UK on Discipline, our Project Pipeline Receive your Annual Report electronically. and Growth Options. Each of BHP Billiton Plc branch register Thursday, 25 October 2007 Mailing Address The BHP Billiton Group produces an Annual these drivers is discussed in commencing at 10.30am. Computershare Investor Services 2004 Review and an Annual Report, which are this Annual Review. The (Pty) Limited posted on the internet. Shareholders are The Annual General Meeting of BHP Billiton Limited Annual Review contains PO Box 61051 encouraged to visit www.bhpbilliton.com to key information about the will be held at the Adelaide Hilton Centre, Marshalltown 2107 inspect the electronic version of the Annual BHP Billiton Group in a concise Review and Annual Report and provide 233 Victoria Square, Office Address format. More detailed financial 70 Marshall Street feedback to the Company. Adelaide, South Australia on data and information on the Johannesburg 2001 The single parent entity financial statements Wednesday, 28 November 2007 at 10.30am. BHP Billiton Group’s Telephone (27 11) 373 0033 of BHP Billiton Limited are available on the performance can be found Facsimile (27 11) 688 5250 Company’s website (www.bhpbilliton.com) in our Annual Report. Holders of shares dematerialised into STRATE and are available to shareholders on request should contact their CSDP or stockbroker free of charge. Cover The ‘Nest’ – Olympic Stadium – China At BHP Billiton, we are proud to be the Official Diversified Minerals and Medals Sponsor of the 2008 Beijing Olympic and Paralympic Games. The Olympic movement ideals, such as achievement, integrity and respect, mirror BHP Billiton is a Dual Listed Company comprising BHP Billiton Limited and BHP Billiton Plc. The two entities continue to exist as separate companies but operate our own set of Charter values and commitment to sustainable development. as a combined group known as BHP Billiton. The headquarters of BHP Billiton Limited and the global headquarters of the combined BHP Billiton Group are located in Melbourne, Australia. BHP Billiton Plc is located in London, UK. Both companies have identical Boards of Directors and are run by a unified management team. Throughout this Report the Boards are referred to collectively as the Board. Shareholders in each company have equivalent economic and voting rights in the BHP Billiton Group as a whole. Throughout this Annual Report, the terms BHP Billiton, the Company and the Group refer to the combined group, including both BHP Billiton Limited and More about • About Us • Customer Centre subsidiary companies and BHP Billiton Plc and subsidiary companies. The term ‘the merger’ has a corresponding meaning. • Our Businesses • Sustainable Development How to request copies of the Annual Review and full Annual Report www.bhpbilliton.com Copies of the Annual Review and Annual Report for the Group can be found on www.bhpbilliton.com. Shareholders may also request a copy free BHP Billiton • Investors & Media • People & Employment of charge by telephoning 1300 656 780 (within Australia), (44 870) 889 3148 (within the UK) or (61 3) 9649 5020 (from elsewhere). Shareholders who wish to receive the full Annual Report and financial statements in place of the Annual Review for future financial years may do so by writing to the Group’s Share Registrar. BHP Billiton Limited. ABN 49 004 028 077. Registered in Australia. Registered office: 180 Lonsdale Street, Melbourne, Victoria 3000, Australia BHP Billiton Plc. Registration number 3196209. Registered in England and Wales. Registered office: Neathouse Place, London SW1V 1BH, UK Designed by Amanda Roach Design, printed in Australia by PMP Print. It’s our ability to discover, develop, convert and supply natural resources to meet growing global demand. PHOTO: WA IRON ORE – AUSTRALIA BHP BILLITON ANNUAL REVIEW 2007 1 Group highlights 2007 • Records achieved across all key earnings measures including Underlying Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) up 27.1 per cent to US$23.0 billion and Underlying Earnings Before Interest and Tax (EBIT) up 31.4 per cent to US$20.1 billion. • Attributable profit up 34.7 per cent to US$13.7 billion and Earnings Per Share (EPS) up 39.1 per cent, benefiting from ongoing buy-backs (both measures excluding exceptionals). • Record Underlying EBIT margin and Return on Capital Employed increased to 48.4 per cent and 38.4 per cent respectively. This is the sixth consecutive record for both measures. • Final dividend rebased to 27 US cents per share demonstrating our confidence in the outlook. This is an increase of 46 per cent on last year’s final dividend. • US$6.3 billion of a US$13.0 billion capital management program completed, representing 5.2 per cent of outstanding shares. Five Year Summary US$M 2007 (a) 2006 (a) 2005 (a) 2004 (b) 2003 (b) Revenue together with share of jointly controlled entities’ revenue (Turnover) 47,473 39,099 31,150 24,943 17,506 Underlying EBIT (c) 20,067 15,277 9,921 5,488 3,481 Attributable Profit – excluding exceptional items 13,675 10,154 6,426 3,510 1,920 Attributable Profit – including exceptional items 13,416 10,450 6,396 3,379 1,901 Net operating cash flow including dividends from jointly controlled entities and after net interest and taxation 15,595 10,476 8,374 5,100 3,631 Basic EPS – including exceptional items (US cents per share) 229.5 173.2 104.4 56.4 30.9 Basic EPS – excluding exceptional items (US cents per share) 233.9 168.2 104.9 54.3 30.6 Dividend per share (d) BHP Billiton Plc (US cents) 47.0 36.0 28.0 26.0 14.5 BHP Billiton Limited (US cents) 47.0 36.0 28.0 26.0 14.5 Underlying EBITDA Interest Coverage (c) (times) 54.0 44.3 51.7 21.1 13.3 Underlying gearing (per cent) 25.0 27.2 35.8 25.7 31.7 (a) Information for the years 2005, 2006 and 2007 is stated under IFRS. (b) Information for the years 2003 and 2004 is prepared and presented in accordance with UKGAAP and has not been restated.