Wrap Text
BHP Billiton Results for the Year Ended 30 June 2015
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
25 August 2015
For Announcement to the Market
Name of Companies: BHP Billiton Limited (ABN 49 004 028 077) and
BHP Billiton Plc (Registration No. 3196209)
Report for the year ended 30 June 2015
This statement includes the consolidated results of the BHP Billiton Group, comprising BHP Billiton Limited and BHP Billiton
Plc, for the year ended 30 June 2015 compared with the year ended 30 June 2014 and the year ended 30 June 2013.
The results are prepared in accordance with IFRS and are presented in US dollars.
Headline Earnings
In accordance with the JSE Listing Requirements, Headline Earnings is presented below.
Year ended Year ended Year ended
30 June 30 June 30 June
2015 2014 2013
US$M US$M US$M
Restated(1) Restated(1)
Earnings attributable to ordinary shareholders(2) 1,910 13,832 11,223
Adjusted for:
Gain on sale of PP&E, Investments and Operations (9) (624) (3,176)
Impairments/(reversal of impairments) 3,968 444 3,268
Recycling of re-measurements from equity to the income statement - (10) (3)
Tax effect of above adjustments (1,180) 58 (500)
Net loss on demerger after taxation(3) 2,154 - -
Subtotal of Adjustments 4,933 (132) (411)
Headline Earnings 6,843 13,700 10,812
Diluted Headline Earnings 6,843 13,700 10,812
Basic earnings per share denominator (millions) 5,318 5,321 5,322
Diluted earnings per share denominator (millions) 5,333 5,338 5,340
Headline Earnings per share (US cents) 128.7 257.5 203.2
Diluted Headline Earnings per share (US cents) 128.3 256.6 202.5
1) Comparative amounts for the year ended 30 June 2014 and year ended 30 June 2013 have been restated for the effect of the
application of IFRS 5/AASB 5 “Non-current Assets Held for Sale and Discontinued Operations’ following the demerger of
South32.
2) Includes (loss)/profit after taxation from discontinued operations attributable to ordinary shareholders.
3) Net loss on demerger after taxation is included in (loss)/profit after taxation from discontinued operations attributable to ordinary
shareholders.
NEWS RELEASE
Release Time IMMEDIATE
Date 25 August 2015
Number 17/15
BHP BILLITON RESULTS FOR THE YEAR ENDED 30 JUNE 2015
Information in this report has been presented on a continuing operations basis to exclude the contribution from
assets that were demerged with South32, unless otherwise noted. The contribution of the South32 assets to the
Group’s results are disclosed as discontinued operations within the Group’s financial statements.
• The health and safety of our people is our first priority. After no fatalities in the 2014 financial year,
we tragically lost five colleagues this year. It is our ongoing goal to have a workplace free from
fatalities and serious injury and we have implemented a company-wide program to improve
performance.
• Underlying EBITDA(1) of US$21.9 billion and an Underlying EBITDA margin(2) of 50% for the
2015 financial year demonstrate the quality of our portfolio and its resilience in challenging markets.
Underlying EBIT(1) declined by 46% to US$11.9 billion.
• Our focus on best-in-class performance delivered productivity gains of US$4.1 billion(3), two years
ahead of target. We expect further cost reductions in the 2016 financial year across all businesses.
• Capital and exploration expenditure(4) decreased by 24% to US$11.0 billion in the period and is
expected to decline to US$8.5 billion in the 2016 financial year and US$7.0 billion in the 2017
financial year.
• Improved operating and capital productivity combined with the flexibility of our investment program
supported free cash flow(2) of US$6.3 billion.
• We maintained our solid A credit rating(5) and finished the period with net debt(2) of US$24.4 billion,
a decline of US$1.4 billion.
• Our commitment to the progressive dividend is unchanged. Our full-year dividend increased by 2%
to 124 US cents per share.
Year ended 30 June 2015 2014 Change
US$M US$M %
Statutory
Profit from operations (EBIT) – continuing operations 8,670 22,649 (61.7%)
Attributable profit 1,910 13,832 (86.2%)
Basic earnings per share (cents) 35.9 260.0 (86.2%)
Dividend per share (cents) 124.0 121.0 2.5%
Net operating cash flow 19,296 25,364 (23.9%)
Continuing operations
Underlying EBITDA(1) 21,852 30,292 (27.9%)
Underlying EBIT(1) 11,866 22,098 (46.3%)
Underlying attributable profit(1) 6,417 13,263 (51.6%)
Underlying basic earnings per share (cents)(2) 120.7 249.3 (51.6%)
Net operating cash flow 17,794 23,640 (24.7%)
Capital and exploration expenditure(4) 11,040 14,608 (24.4%)
Total operations
Attributable profit excluding exceptional items(2) 7,109 13,447 (47.1%)
Results for the 2015 financial year
BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “We are all deeply saddened by the tragic loss of
five colleagues over the past year. These fatalities have had a permanent impact on our Company and on the
families and friends of those who died. The health and safety of our people must come first and we are making an
even greater effort to improve our performance as we strive for a fatality-free workplace. Across BHP Billiton we
have held a series of safety interventions to reaffirm our commitment to focus on the things that matter most.
“The success of our productivity initiatives generated strong cash flow which supported our dividend commitment,
funded continued investment in growth and enabled a reduction in net debt, despite the dramatic fall in
commodity prices. And while we recorded a sector-leading EBITDA margin of 50 per cent, we will cut costs
further and exercise our growing capital flexibility to improve our competitiveness and support our progressive
dividend policy through the cycle.
“In the short term we expect ongoing economic reforms in China to contribute to periods of market volatility. And,
while we remain confident in the long-term outlook for commodities demand as emerging economies continue to
urbanise and industrialise, we have lowered our forecast of peak Chinese steel demand to between 935 million
tonnes and 985 million tonnes in the mid 2020’s. This backdrop will favour low-cost producers with economies of
scale.
“Importantly, we do not require the same level of investment to grow as in the past. Improved productivity can
further stretch the capacity of our existing operations to increase volumes at very low cost. For example, in
Western Australia Iron Ore we can increase the capacity of our system from 254 million tonnes today to 290
million tonnes over time with minimal investment, while making more than US$20 per tonne margin at today’s
prices. Beyond this, we continue to reduce development costs within our project portfolio. However, we remain
focused on value and will only approve projects when the time is right.”
The health and safety of our people is core to our values
The health and safety of our people is our first priority. After no fatalities in the 2014 financial year, we tragically
lost five colleagues this year. It is our ongoing goal to have a workplace free from fatalities and serious injury and
we are making an even greater effort to improve our performance. This includes launching a company-wide
safety intervention with more than 40,000 of our people having participated in sessions so far.
During the 2015 financial year, BHP Billiton reported a Total Recordable Injury Frequency of 4.1 per million hours
worked(6), a two per cent improvement compared with the 2014 financial year.
Delivered strong cash flow, funded the dividend, invested in growth and reduced net debt
BHP Billiton delivered Underlying EBITDA of US$21.9 billion in the 2015 financial year, down 28 per cent, as
lower realised prices reduced earnings by US$16.4 billion and more than offset the substantial productivity gains
that continue to be achieved across the portfolio. Non-cash charges increased by US$1.3 billion and contributed
to a 46 per cent decline in Underlying EBIT to US$11.9 billion.
Despite the significant decline in commodity prices, we generated US$6.3 billion of free cash flow during the
period as we further improved both operating and capital productivity and exercised the flexibility in our
investment program. In this regard, we invested US$11.0 billion in capital projects and exploration(4) during the
year.
We maintained our solid A credit rating, finishing the period with net debt of US$24.4 billion, a decline of
US$1.4 billion, and a gearing ratio(2) of 25.7 per cent (2014: 23.2 per cent). We remain committed to our strong
balance sheet which allows us to maintain our progressive dividend and invest through the cycle.
In line with our progressive dividend policy, we increased our full-year dividend by two per cent to 124 US
cents per share.
Early delivery of our productivity target provides a strong platform to generate further improvements
BHP Billiton’s focus on operational excellence continued to yield significant results in the 2015 financial year. We
reduced costs faster than expected in all our major businesses, with unit cash costs down by 31 per cent at
Western Australia Iron Ore, 23 per cent at Queensland Coal, eight per cent at Escondida(7) while Black Hawk
well costs fell 19 per cent. This contributed to the delivery of US$4.1 billion(3) of productivity gains during the
period, two years ahead of our 2017 target, comprising a reduction in controllable cash costs of US$2.7 billion,
productivity-led volume efficiencies of US$1.2 billion and a US$142 million reduction in capitalised exploration
expenditure.
Following the successful demerger of South32, BHP Billiton is almost exclusively focused on its exceptionally
large, long-life petroleum, copper, iron ore, coal and potash assets. With a significantly simpler portfolio, we are
even better placed to achieve further productivity improvements in the assets that underpin the value of the
Company.
Historical costs and guidance for the 2016 financial year are summarised in the following table:
Year ended 30 June 2012 2013 2014 2015 2016(i) 2016e vs
guidance 2015
Black Hawk drilling cost per well (US$ million) 4.7 5.0 4.2 3.4 2.5 (26%)
Escondida unit cost(7) (US$ per pound) 1.47 1.15 1.16 1.07 1.18 10%
Escondida grade-adjusted unit cost(7) (US$ per 1.21 1.16 1.08 1.07 0.91(ii) (15%)
pound)
Western Australia Iron Ore unit cost (US$ per tonne) 30 29 27 19 15 (20%)
Queensland Coal unit cost (US$ per tonne) 148 115 84 65 61 (6%)
(i) 2016 financial year guidance is based on exchange rates of AUD/USD 0.74 and USD/CLP 674.
(ii) Guidance is presented on a grade-equivalent basis relative to the 2015 financial year. Grades are expected to decline by 27 per cent in
the 2016 financial year.
Capital productivity, the release of latent capacity and our high-quality growth options will create value
The successful ramp-up of the Jimblebar mining hub and growth in Onshore US liquids volumes increased
Underlying EBIT by US$1.8 billion in the 2015 financial year. Improved capital productivity and the flexibility of our
investment program, allowed us to reduce capital and exploration expenditure(4) by 24 per cent to
US$11.0 billion during the period and is expected to lead to a 23 per cent reduction to US$8.5 billion in the 2016
financial year. We forecast capital and exploration expenditure will further reduce to US$7.0 billion in the 2017
financial year.
Over the short to medium term, the release of latent capacity across the portfolio will deliver production growth at
low capital cost.
• Better productivity will be the sole source of volume growth at Western Australia Iron Ore in the
2016 financial year and will contribute to an increase in system capacity to 290 Mtpa over time.
• As we improve the efficiency of our capital, we expect to maintain aggregate Black Hawk and Permian
volumes in the 2016 financial year despite cutting shale investment by over 50 per cent. We retain the option
to rapidly ramp-up Onshore US production, however we will continue to monitor market conditions to
optimise value. In addition, we now see the potential of the Permian field at over 150 kboe/d.
• At Escondida, our three concentrator strategy with the commissioning of the desalination plant, is expected
to offset grade decline and support a strong recovery in production post the 2016 financial year.
Our medium and longer-term development options are expected to support our production growth rates over the
cycle and generate strong returns on investment.
• In Copper, we recently filed two Environmental Impact Statements in relation to the Spence Growth Option
project and continue to progress the Olympic Dam underground expansion option.
• In Petroleum, Mad Dog 2 and Haynesville present excellent development options.
• We continue to make good progress in shaft excavation at the Jansen potash project.
Outlook
Economic outlook
The global economy grew at a modest rate in the 2015 financial year with a mild improvement in developed
economies offsetting a moderation in emerging markets. In the short to medium term, we expect moderate
growth of the global economy. In the longer term, urbanisation and industrialisation will remain the primary drivers
of commodity demand. The transition to consumption-led growth in emerging economies should provide
particular support for industrial metals, energy and fertilisers.
In China, a slowdown in the property sector and fixed asset investment led to lower economic growth following
policy tightening in the 2014 calendar year. Consumer spending remained resilient reflecting the continued
rebalancing of the economy. A number of interest rate reductions, cuts in bank reserve requirements, boosts to
infrastructure spending and administrative measures supporting the property market are likely to buttress growth
over the remainder of the 2015 calendar year. In line with our expectations, the economy is growing more slowly,
though off a higher base, as it matures over the medium term and the government’s reform program promotes
domestic consumption over investment. We expect near-term volatility to continue as the authorities press ahead
with reform in a cautious but sustained manner as they seek to improve the efficiency of capital allocation in the
economy while maintaining support for employment. However, our robust longer-term outlook for China remains
intact as the economy transitions.
The United States economy continued to improve despite weakness in the March 2015 quarter caused by severe
weather in the North-East and a stronger US dollar. Ongoing strength in the labour market, rising disposable
incomes, higher equity markets and improved housing prices supported consumer demand. After a period in
which businesses failed to respond to improved economic conditions and higher levels of profitability, corporate
investment has begun to show signs of recovery. The Federal Reserve is expected to begin increasing interest
rates in the first half of the 2016 financial year.
The European Central Bank began a program of quantitative easing in March 2015, which appears to be driving a
modest pick-up in economic growth. Activity has improved across the Eurozone, with the exception of Greece,
reflecting a broad-based lift in domestic demand and we expect the improvement in growth to continue in the
2016 financial year.
Japan’s economy saw growth improve in annualised terms as the year progressed, supported by the Bank of
Japan’s quantitative easing and a weaker yen. Growth should be supported by stronger business investment into
the 2016 financial year. A longer-term, sustainable recovery is contingent on the scale and speed of structural
reform.
Commodities outlook
Commodity prices generally trended down in the 2015 financial year, with prices for most of our commodities
notably lower going into the new financial year.
Chinese steel production declined by 1.3 per cent in the second half of the 2015 financial year versus the
corresponding period in 2014, triggered largely by a slowing construction sector. New construction starts were
lower this year due to considerable levels of existing stock. Although China’s steel exports are at an all-time high,
we expect subdued crude steel production growth over the remainder of the 2015 calendar year with some
upside potential should the construction sector recover. However with steel stock per capita still well below that of
developed nations, we expect moderate but sustainable growth in Chinese steel production over the next decade.
An extended view on the life cycle of steel usage has resulted in a lower but longer plateau for crude steel
production, peaking between 935 Mt and 985 Mt in the middle of the next decade. The implications for pig iron
demand, and therefore iron ore and metallurgical coal, are mitigated in the medium term by lower scrap
availability as the scrap cycle in China will take longer to develop. Outside China, steel production growth is
improving steadily driven by India, the Middle East and South-East Asia.
The supply of most steelmaking raw materials has grown faster than demand. In iron ore, we estimate that
approximately 100 Mt of incremental lower cost seaborne supply will enter the market in the 2015 calendar year,
outweighing demand growth. In this context, higher cost Chinese domestic production, along with high-cost
seaborne exports, continues to exit the market. Private mines in China have seen their operating rates fall from
approximately 90 per cent in the 2011 calendar year to approximately 35 per cent today. Many producers have
also cut their costs. As a result, the iron ore cost curve has both flattened and fallen from previous levels.
In metallurgical coal, while uneconomic high-cost supply has slowly withdrawn from the seaborne market, prices
remain subdued as industry-wide cost reductions and weaker producer currencies against the US dollar support
continued production from marginal suppliers. Recent quality restrictions have also weakened China’s import
demand but this was partially offset by growth in traditional markets. The long-term outlook remains robust as the
supply of premium hard coking coals becomes scarce.
Depreciating currencies have sustained Indonesian and Australian thermal coal exports, prolonging the weak
pricing environment. Despite healthy seaborne demand growth from India, China’s import demand has
weakened, limiting prospects for price recovery in the near term.
In copper, prices were affected by weaker than expected consumption and the strengthening US dollar. In the
near term, new supply under development is expected to keep the market well supplied. However, a deficit is
expected to emerge at the end of this decade as grade decline, rising costs and a scarcity of high-quality future
development opportunities are likely to constrain the industry’s ability to meet attractive demand growth.
Global crude oil demand growth was outpaced by supply growth putting pressure on prices throughout the year.
Despite strong demand growth, liquids supply exceeded demand by 2.6 MMboe/d in the second half of the
2015 financial year. We expect prices to remain range bound in the short term due to available supply capacity
from the United States and OPEC. The long-term demand outlook remains healthy, underpinned by the transport
sector, notably in the Asian region.
US natural gas prices declined during the year as production growth was only partially offset by increased
consumption in the power sector. In the longer term, demand is expected to benefit from increasing industrial
use, growth in gas-fired power generation and the start of LNG exports. As core acreage is depleted, less
productive and higher-cost shale areas will be required to meet growing demand. In the LNG market, weaker
North Asian end-user demand and ample supply have kept prices subdued.
Projects
Historical capital and exploration expenditure and guidance for the 2016 and 2017 financial years are
summarised in the following table:
Year ended 30 June 2017e 2016e 2015 2014
US$B US$B US$M US$M
Capital expenditure (purchases of property, plant and equipment) 7.0 8.9 11,947 15,224
Add: exploration expenditure 0.8 0.9 816 986
Capital and exploration expenditure (cash basis) 7.8 9.8 12,763 16,210
Add: equity accounted investments 0.4 0.5 434 871
Less: capitalised deferred stripping(i) (0.7) (0.8) (815) (1,275)
Less: non-controlling interests (0.5) (1.0) (1,342) (1,198)
Capital and exploration expenditure (BHP Billiton share) – continuing 7.0 8.5 14,608
operations 11,040
Capital and exploration expenditure (BHP Billiton share) – discontinued operations - - 541 573
Capital and exploration expenditure (BHP Billiton share) – total operations 7.0 8.5 11,581 15,181
(i) Capitalised deferred stripping includes US$142 million attributable to non-controlling interests in the 2015 financial year (2014:
US$243 million).
During the 2015 financial year, three major projects achieved first production, namely: Escondida Oxide Leach
Area Project, BMA Hay Point Stage Three Expansion and Escondida Organic Growth Project 1. At the end of the
period, BHP Billiton had four major projects under development with a combined budget of US$7.0 billion.
Projects completed or which delivered first production during the 2015 financial year
Business Project and Capacity(i) Capital Date of initial
ownership expenditure production
US$M(i)
Actual(ii) Budget Actual Target
Copper Escondida Oxide Leach New dynamic leaching pad and mineral 899 933(iii) Q4CY14 H2CY14(iii)
Area Project (Chile) handling system. Maintains oxide leaching
57.5% capacity.
Escondida Organic Growth New concentrator with 152 ktpd capacity. 4,279 4,199(iii) Q2CY15 H1CY15
Project 1 (Chile)
57.5%
Coal Hay Point Stage Three Increases port capacity from 44 Mtpa to 1,505 1,505(iii)(iv) Q1CY15 H1CY15(iii)
Expansion (Australia) 55 Mtpa and reduces storm vulnerability.
50%
6,683 6,637
Projects in execution at the end of the 2015 financial year
Business Project and ownership Capacity(i) Capital Date of initial
expenditure production
US$M(i)
Budget Target
Petroleum North West Shelf Greater To maintain LNG plant throughput from the 400 CY16
Western Flank-A North West Shelf operations.
(Australia)
16.67% (non-operator)
Bass Strait Longford Gas Designed to process approximately 520 CY16
Conditioning 400 MMcf/d of high CO 2 gas.
Plant (Australia)
50% (non-operator)
Copper Escondida Water Supply New desalination facility to ensure 3,430 CY17
(Chile) continued water supply to Escondida.
57.5%
4,350
Other projects in progress at the end of the 2015 financial year
Business Project and ownership Scope Capital
expenditure
US$M(i)
Budget
Potash Jansen Potash (Canada) Investment to finish the excavation and lining of 2,600
100% the production and service shafts, and to
continue the installation of essential surface
infrastructure and utilities.
(i) Unless noted otherwise, references to capacity are on a 100 per cent basis, references to capital expenditure from subsidiaries are
reported on a 100 per cent basis and references to capital expenditure from joint operations are reported on a proportionate consolidation
basis.
(ii) Amount subject to finalisation.
(iii) As per revised budget and/or schedule.
(iv) Excludes announced pre-commitment funding.
Income statement
To provide clarity into the underlying performance of our operations, Underlying attributable profit and Underlying
EBIT are set out in the following tables:
Year ended 30 June 2015 2014
US$M US$M
Underlying attributable profit 6,417 13,263
Attributable loss – discontinued operations (1,573) 184
Exceptional items (after taxation) – refer to pages 10 and 42 (2,946) 385
Minority interest in exceptional items 12 -
Attributable profit 1,910 13,832
Year ended 30 June 2015 2014
US$M US$M
Underlying EBIT 11,866 22,098
Exceptional items (before taxation) – refer to pages 10 and 42 (3,196) 551
Profit from operations (EBIT) 8,670 22,649
Underlying EBIT
The following table and commentary describes the approximate impact of the principal factors that affected
Underlying EBIT for the 2015 financial year compared with the 2014 financial year:
US$M
Underlying EBIT for the year ended 30 June 2014 22,098
Net price impact:
Change in sales prices (16,433)
Price-linked costs 1,209
(15,224)
Change in volumes:
Productivity 1,220
Growth 1,822
3,042
Change in controllable cash costs:
Operating cash costs 2,678
Exploration and business development 29
2,707
Change in other costs:
Exchange rates 1,567
Inflation (433)
Fuel and energy 518
Non-cash (1,304)
One-off items (456)
(108)
Asset sales (72)
Ceased and sold operations 22
Other items (599)
Underlying EBIT for the year ended 30 June 2015 11,866
The following table reconciles relevant factors with the Group’s productivity gains:
Year ended 30 June 2015
US$M
Change in controllable cash costs 2,707
Change in volumes attributed to productivity 1,220
Total productivity gains in Underlying EBIT 3,927
Change in capitalised exploration 142
Total benefits attributable to productivity initiatives 4,069
Prices
Lower realised prices reduced Underlying EBIT by US$16.4 billion in the 2015 financial year. A 41 per cent
decline in the average realised price of iron ore was the major contributor and reduced Underlying EBIT by
US$9.5 billion. Weaker average realised prices for our Petroleum, Copper and Coal businesses decreased
Underlying EBIT by US$4.2 billion, US$1.6 billion and US$1.1 billion, respectively. A reduction in price-linked
costs increased Underlying EBIT by US$1.2 billion and primarily reflected lower royalty charges in our Iron Ore
business.
The average realised prices achieved for our major commodities are summarised in the following table:
Half year Half year
ended ended Year ended Year ended
30 June 31 Dec 30 June 30 June FY15 vs June H15 vs June H15 vs
Average realised prices(i) 2015 2014 2015 2014 FY14 June H14 Dec H14
Oil (crude and condensate) (US$/bbl) 52 85 68 102 (33%) (49%) (39%)
Natural gas (US$/Mscf) 3.29 4.21 3.77 4.35 (13%) (33%) (22%)
US natural gas (US$/Mscf) 2.59 3.89 3.27 4.10 (20%) (46%) (33%)
LNG (US$/Mscf) 9.40 13.76 11.65 14.67 (21%) (36%) (32%)
Copper (US$/lb)(ii) 2.61 2.98 2.78 3.22 (14%) (16%) (12%)
Iron ore (US$/wmt, FOB) 53 70 61 103 (41%) (45%) (24%)
Hard coking coal (US$/t) 99 110 105 131 (20%) (18%) (10%)
Weak coking coal (US$/t) 85 92 88 111 (21%) (18%) (8%)
Thermal coal (US$/t)(iii) 56 61 58 74 (22%) (21%) (8%)
Nickel metal (US$/t) 13,688 16,905 15,301 15,273 0% (18%) (19%)
(i) Prices exclude third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF
and CFR), unless otherwise noted.
(ii) Includes third party product and the impact of provisional pricing and finalisation adjustments which decreased EBIT by US$382 million
in the 2015 financial year (2014: US$73 million increase).
(iii) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.
Volumes
Productivity-led volume efficiencies and the ramp up of major projects underpinned a US$3.0 billion increase in
Underlying EBIT. Western Australia Iron Ore (WAIO) was the major contributor as the improved performance of
our integrated supply chain and the successful ramp up of the Jimblebar mining hub supported a US$1.9 billion
increase in Underlying EBIT. A doubling of liquids production from both Black Hawk and Permian supported a
further US$799 million volume-related increase in Petroleum’s Underlying EBIT.
Controllable cash costs
Operating cash costs
Our focus on best-in-class performance underpinned a US$2.7 billion reduction in operating cash costs during
the 2015 financial year.
A reduction in labour, contractor and maintenance costs increased Underlying EBIT by US$1.5 billion during the
period. This was most evident in WAIO where the standardisation of our equipment and maintenance systems,
and the insourcing of third party services facilitated a step change in the performance of our mining operations.
Mining-related efficiencies contributed to a further US$580 million reduction in cash costs and largely reflected
improved productivity at Escondida.
Exploration and business development
The Group’s exploration and business development expenditure was broadly in line with the 2014 financial year.
Our exploration program remains focused on greenfield copper targets within Chile, Peru and the South-West
United States, and petroleum liquids opportunities in the Gulf of Mexico, Western Australia and Trinidad and
Tobago.
Other costs
Exchange rates
A stronger US dollar increased Underlying EBIT by US$1.6 billion during the period. This included the
restatement of monetary items in the balance sheet which increased Underlying EBIT by US$637 million relative
to the 2014 financial year.
The following exchange rates have been applied:
Average Average
Year ended Year ended As at As at As at
30 June 30 June 30 June 30 June 30 June
2015 2014 2015 2014 2013
Australian dollar(i) 0.84 0.92 0.77 0.94 0.92
Chilean peso 604 532 635 551 504
(i) Displayed as US$ to A$1 based on common convention.
Inflation
The impact of inflation reduced Underlying EBIT by US$433 million during the period. This was most notable in
Australia and Chile, which accounted for over 85 per cent of the total variance.
Fuel and energy
A reduction in diesel prices across our minerals businesses supported a US$518 million increase in Underlying
EBIT.
Non-cash
An increase in non-cash charges reduced Underlying EBIT by US$1.3 billion during the period.
An US$839 million increase in non-cash charges in our Copper business reflects: higher ore mined which
resulted in increased depletion of stripping capitalised in previous periods in line with mine plans at Escondida;
increased depreciation following the completion of the Escondida Oxide Leach Area Project; and a US$199
million impairment driven by a lower copper price and permitting uncertainty for the proposed mine life extension
at Cerro Colorado.
A US$639 million increase in non-cash charges in our Petroleum business reflects: US$316 million of higher
depreciation and amortisation charges in Onshore US following the ramp-up of liquids production at Black Hawk
and the progressive development of our Permian acreage; and US$328 million of impairment charges associated
with the divestment of assets in North Louisiana and the Pecos field in the Permian. During the period, a
US$79 million impairment of Neptune was also recognised as the fall in near-term oil prices has affected its value
due to its short field life.
The decrease in non-cash charges in our Potash business relates to a mine site rehabilitation provision charge
recognised in the 2014 financial year for the Group’s North American closed mines.
One-off items
One-off items recognised during the period comprise a US$268 million expense related to the mill outage at
Olympic Dam and a US$188 million cost associated with the implementation of the Escondida Voluntary
Redundancy Program.
Asset sales
The contribution of asset sales to Underlying EBIT decreased by US$72 million from the 2014 financial year
which included the sale of Liverpool Bay.
Ceased and sold operations
Underlying EBIT from ceased and sold operations increased by US$22 million in the 2015 financial year. This
largely reflected an unfavourable US$143 million adjustment to the Browse divestment proceeds, due to
unitisation changes subsequent to the completion of sale, offset by the closure of the Nickel West Leinster
Perseverance underground mine, both during the 2014 financial year.
Other items
Lower average realised prices received by our equity accounted investments more than accounted for the
US$599 million decrease in Underlying EBIT reported in other items.
Net finance costs
Net finance costs decreased by US$300 million to US$614 million. The decrease reflected foreign exchange
gains on finance leases and the early redemption of the Petrohawk Energy Corporation Senior Notes in August
2014, which resulted in a gain on redemption and lower interest expense.
Taxation expense
The Group’s adjusted effective tax rate(2), which excludes the influence of exchange rate movements,
remeasurement of deferred tax assets associated with the Minerals Resource Rent Tax (MRRT) and exceptional
items, was 31.8 per cent (2014: 32.2 per cent). The adjusted effective tax rate is expected to be in the range of
33 per cent to 37 per cent for the 2016 financial year. This anticipated increase reflects the expected higher
proportion of profit from Australian petroleum assets (which are subject to a higher rate of tax due to the
Petroleum Resource Rent Tax) in the Group’s overall profit, and finalisation of MRRT balances in the 2015
financial year.
Total taxation expense, including royalty-related taxation, exceptional items and exchange rate movements, was
US$3.7 billion, representing a statutory effective tax rate of 45.5 per cent (2014: 31.2 per cent).
Government imposed royalty arrangements calculated by reference to profits are reported as royalty-related
taxation. An exceptional item of US$698 million tax expense (2014: US$ nil) was recognised on a continuing
operations basis for the derecognition of deferred tax assets upon the repeal of the MRRT legislation in Australia.
Exchange rate movements increased taxation expense by US$339 million (2014: decrease of US$34 million).
Year ended 30 June 2015 2014
Profit Profit
before Income tax before Income tax
taxation expense taxation expense
US$M US$M % US$M US$M %
Statutory effective tax rate 8,056 (3,666) 45.5% 21,735 (6,780) 31.2%
Adjusted for:
Exchange rate movements – 339 – (34)
Remeasurement of deferred tax assets
associated with the MRRT – – – (170)
Exceptional items 3,196 (250) (551) 166
Adjusted effective tax rate 11,252 (3,577) 31.8% 21,184 (6,818) 32.2%
Other royalty and excise arrangements which are not profit based are recognised as operating costs within Profit
before taxation. These amounted to US$1.7 billion during the period (2014: US$2.4 billion).
Exceptional items
Year ended 30 June 2015 Gross Tax Net
US$M US$M US$M
Exceptional items by category
Impairment of Onshore US assets (2,787) 829 (1,958)
Impairment of Nickel West assets (409) 119 (290)
Repeal of Minerals Resource Rent Tax legislation(i) – (698) (698)
(3,196) 250 (2,946)
(i) Includes amounts attributable to non-controlling interests of US$(12) million.
Impairment of Onshore US assets
The Group recognised an impairment charge of US$2.0 billion (after tax benefit) in relation to its Onshore US
assets. The gas-focused Hawkville field accounts for the substantial majority of this charge reflecting its
geological complexity, product mix, acreage relinquishments and amended development plans. The remainder
relates to the impairment of goodwill associated with the Petrohawk acquisition.
Impairment of Nickel West assets
On 12 November 2014, the Group announced that the review of its Nickel West business was complete and the
preferred option, the sale of the business, was not achieved on an acceptable basis. As a result of operational
decisions made subsequent to the conclusion of this process, an impairment charge of US$290 million (after tax
benefit) was recognised in the 2015 financial year.
Repeal of Minerals Resource Rent Tax legislation
The legislation to repeal the MRRT in Australia took effect on 30 September 2014. As a result, the Group
derecognised a MRRT deferred tax asset of US$809 million, and corresponding taxation charges of US$698
million related to continuing operations and US$111 million related to discontinued operations were recognised in
the 2015 financial year.
Discontinued operations
On 25 May 2015 the Group announced that it completed the demerger of a selection of its aluminium, coal,
manganese, nickel and silver assets to create an independent metals and mining company, South32.
South32’s contribution to BHP Billion’s 2015 financial year results comprised a US$753 million profit after taxation
excluding exceptional items. Exceptional items comprised a tax expense of US$111 million related to the repeal
of the MRRT and a net loss on demerger of US$2.2 billion (after tax benefit). This contribution has been included
in attributable loss after taxation from discontinued operations of US$1.6 billion.
Cash flows
Free cash flow, comprising net operating cash flows less net investing cash flows, decreased by US$2.2 billion to
US$6.3 billion during the 2015 financial year.
Net operating cash flows after interest and tax decreased by 25 per cent to US$17.8 billion during the 2015
financial year. The major contributor was the US$7.7 billion decrease in cash generated from operations (after
changes in working capital balances), which was partially offset by a decrease of US$2.1 billion in net tax paid.
Net investing cash outflows decreased by US$3.6 billion to US$11.5 billion during the 2015 financial year and
reflected a US$3.4 billion reduction in capital and exploration expenditure. Expenditure on growth projects totalled
US$9.3 billion, including US$4.5 billion on Petroleum projects and US$4.8 billion on Minerals projects. Sustaining
capital expenditure and other items totalled US$2.6 billion. Exploration expenditure was US$816 million, including
US$670 million classified within net operating cash flows.
Net financing cash outflows increased by US$1.6 billion to US$8.1 billion. A decrease in proceeds from interest
bearing liabilities of US$2.6 billion, a decrease in contributions from non-controlling interests of US$1.4 billion and
higher dividends paid to non-controlling interests of US$435 million were partially offset by a decrease in
repayments of interest bearing liabilities of US$2.9 billion during the 2015 financial year.
Net debt, comprising interest bearing liabilities less cash, finished the 2015 financial year at US$24.4 billion, a
decrease of US$1.4 billion compared to the net debt position at 30 June 2014.
Dividend
BHP Billiton has a progressive dividend policy. The aim of this policy is to steadily increase or at least maintain
the dividend per share in US dollar terms at each financial half year. Our Board today determined to pay a final
dividend of 62 US cents per share. The final dividend to be paid by BHP Billiton Limited will be fully franked for
Australian taxation purposes.
Events in respect of the final dividend Date
Last day to trade cum dividend on JSE Limited (JSE) and currency conversion into rand 4 September 2015
Ex-dividend Date JSE 7 September 2015
Ex-dividend Date Australian Securities Exchange (ASX) and New York Stock Exchange (NYSE) 9 September 2015
Ex-dividend Date London Stock Exchange (LSE) 10 September 2015
Record Date (including currency conversion and currency election dates for ASX and LSE) 11 September 2015
Payment Date 29 September 2015
BHP Billiton Plc shareholders registered on the South African section of the register will not be able to
dematerialise or rematerialise their shareholdings between the dates of 7 and 11 September 2015 (inclusive), nor
will transfers between the UK register and the South African register be permitted between the dates of 4 and 11
September 2015 (inclusive). American Depositary Shares (ADSs) each represent two fully paid ordinary shares
and receive dividends accordingly.
Details of the currency exchange rates applicable for the dividend will be announced to the relevant stock
exchanges following conversion and will appear on the Group’s website.
Debt management and liquidity
During the 2015 financial year, the Group issued a three tranche Euro denominated bond under its Euro Medium
Term Note Programme, comprising EUR600 million Floating Rate Notes due 2020 paying interest at 3 month
Euribor plus 35 basis points, EUR650 million 0.75 per cent bonds due 2022 and EUR750 million 1.50 per cent
bonds due 2030. The Group also priced a five year A$1.0 billion note issue under its Australian Medium Term
Note Program, paying interest at 3.00 per cent due 2020.
In August 2014, the Group redeemed all outstanding Petrohawk Energy Corporation 7.25 per cent Senior Notes
due August 2018 and 6.25 per cent Senior Notes due June 2019 at the applicable call prices. The aggregate
principal value of the notes redeemed was approximately US$1.8 billion.
The Group has a US$6.0 billion commercial paper program backed by a US$6.0 billion revolving credit facility.
The facility expires in May 2020 and has a one-year extension option. As at 30 June 2015, the Group had US$nil
outstanding in the US commercial paper market and the Group’s cash and cash equivalents on hand were
US$6.8 billion.
Corporate governance
As announced on 1 May 2015, Margaret Taylor was appointed Group Company Secretary effective 1 June 2015
to coincide with the resignation of Jane McAloon from the position.
On 22 May 2015, we confirmed the retirement of Keith Rumble as an independent, Non-executive Director,
effective from that date. On 14 July 2015, we advised the passing of Sir John Buchanan on 13 July 2015, who
was up until the time of his death an independent, Non-executive Director and Senior Independent Director of
BHP Billiton Plc.
On 14 August 2015, we announced the appointment of Anita Frew to the Board as an independent, Non-
executive Director, effective 15 September 2015. We also announced that Carlos Cordeiro would be retiring from
the Board at the conclusion of the BHP Billiton Limited Annual General Meeting in November 2015, and that Shriti
Vadera had been appointed as the Senior Independent Director of BHP Billiton Plc and as a member of the
Nomination and Governance Committee.
The current members of the Board’s committees are:
Risk and Audit Nomination and Governance Remuneration Sustainability
Committee Committee Committee Committee
Mr L Maxsted (Chair) Mr J Nasser (Chair) Ms C Hewson (Chair) Dr J Schubert (Chair)
Mr M Broomhead Dr J Schubert Mr C Cordeiro Mr M Broomhead
Mr W Murdy Baroness S Vadera Mr P Davies Mr M Brinded
Baroness S Vadera Baroness S Vadera Mr P Davies
Business summary(i)
A summary of the performance of the businesses for the 2015 and 2014 financial years is presented below.
Year ended Profit from Net
30 June 2015 Underlying Exceptional operations operating Capital Exploration Exploration
US$M Revenue(ii) EBIT(iii) items (EBIT) assets expenditure gross(iv) to profit(v)
Petroleum and Potash 11,447 1,802 (2,787) (985) 36,287 5,359 570 532
Copper 11,453 3,353 - 3,353 23,701 3,822 90 90
Iron Ore 14,753 6,932 - 6,932 23,954 1,930 118 38
Coal 5,885 348 - 348 11,769 729 20 20
Group and unallocated
items (vi) 1,469 (569) (409) (978) 33 107 18 18
Inter-segment adjustment (371) - - - - - - -
BHP Billiton Group 44,636 11,866 (3,196) 8,670 95,744 11,947 816 698
Year ended Profit from Net Capital
30 June 2014 Underlying Exceptional operations operating expenditure Exploration Exploration
(Restated) Revenue(ii) EBIT(iii) items (EBIT) assets gross(iv) to profit(v)
US$M
Petroleum and Potash 14,833 5,287 - 5,287 39,514 6,423 647 544
Copper 12,789 4,668 551 5,219 21,997 3,697 111 111
Iron Ore 21,356 12,102 - 12,102 23,390 2,949 169 56
Coal 6,563 575 - 575 11,909 1,971 29 29
Group and unallocated
items (vi) 1,696 (534) - (534) 1,232 184 30 30
Inter-segment adjustment (475) - - - - - - -
BHP Billiton Group 56,762 22,098 551 22,649 98,042 15,224 986 770
(i) Group and business level information is reported on a statutory basis which, in relation to Underlying EBIT, includes net finance costs
and taxation expense related to equity accounted investments.
(ii) Revenue is based on Group realised prices and includes third party products. Sale of third party products by the Group contributed
revenue of US$1,179 million and Underlying EBIT of US$14 million (2014: US$1,717 million and US$15 million).
(iii) Underlying EBIT includes the Group’s share of net finance costs and taxation expense of US$418 million related to equity accounted
investments (2014: US$528 million).
(iv) Includes US$146 million capitalised exploration (2014: US$288 million).
(v) Includes US$28 million of exploration expenditure previously capitalised, written off as impaired (included in depreciation and
amortisation) (2014: US$72 million).
(vi) Comprises Group Functions, other unallocated operations including Nickel West (previously disclosed in the former Aluminium,
Manganese and Nickel business), consolidation adjustments and external sales of freight and fuel to third parties.
Profit from Net
Underlying Underlying Exceptional operations operating Capital
Nickel West (US$M) Revenue EBITDA D&A(1) EBIT items (EBIT) assets expenditure
Year ended 30 June 2015 1,393 38 112 (74) (409) (483) (82) 103
Year ended 30 June 2014 1,605 (91) 117 (208) - (208) 534 163
Petroleum and Potash
Petroleum
Underlying EBIT for Petroleum decreased by US$3.9 billion to US$1.9 billion in the 2015 financial year.
US$M
Underlying EBIT for the full year ended 30 June 2014 5,870
Net price impact(i) (4,079)
Change in volumes: growth 799
Change in controllable cash costs 35
Change in other costs:
Inflation (27)
Non-cash (639)
Other(ii) (20)
Underlying EBIT for the full year ended 30 June 2015 1,939
(i) Average realised price: crude and condensate oil US$68/bbl (2014: US$102/bbl); US natural gas US$3.27/Mscf (2014: US$4.10/Mscf);
LNG US$11.65/Mscf (2014: US$14.67/Mscf).
(ii) Other includes: exchange rates; asset sales; ceased and sold operations; other items. Also includes Onshore US rig termination
charges of US$123 million (2014: US$75 million).
Total petroleum production increased by four per cent in the 2015 financial year to a record 256 MMboe. A 17 per
cent increase in liquids production to 125 MMboe was supported by a 67 per cent increase in Onshore US liquids
volumes and strong uptime performance in the Gulf of Mexico. Natural gas production declined by six per cent to
787 bcf due to weaker seasonal demand at Bass Strait, along with lower Onshore US gas volumes as a result of
the decision to defer development activity for longer-term value.
Petroleum production is forecast to decrease by seven per cent in the 2016 financial year to 237 MMboe
(Conventional: 125 MMboe; Onshore US: 112 MMboe). In Onshore US, further improvements in drilling and
completions efficiency will support stable volumes in the liquids-rich Black Hawk and Permian despite lower
capital spend in the 2016 financial year. However, we anticipate a 19 per cent decline in the combined production
of the predominantly gas-rich, and currently lower-margin Haynesville, Fayetteville and Hawkville fields as we
continue to defer development of these assets for longer-term value. Conventional volumes are expected to
decrease as a result of planned maintenance programs and natural field decline.
The increase in non-cash costs includes: US$316 million of higher depreciation and amortisation charges in
Onshore US following the ramp-up of liquids production at Black Hawk and the progressive development of our
Permian acreage; and US$328 million of impairment charges associated with the divestment of conventional
assets in North Louisiana (Haynesville) and unconventional gas assets in the Pecos field (Permian). The rate of
depreciation in Onshore US will continue to rise as the proportion of currently higher-margin liquids volumes
increase relative to gas. During the period, a US$79 million impairment of Neptune was also recognised as the
fall in near-term oil prices has affected its value due to its short field life.
Petroleum capital expenditure declined by 15 per cent to US$5.0 billion in the 2015 financial year. This included
US$3.7 billion of Onshore US drilling and development expenditure. We continued to realise significant
improvements in shale drilling efficiency during the period as spud to sales timing in the Black Hawk improved by
17 per cent and drilling costs declined by 19 per cent to US$3.4 million per well. In the 2016 financial year, we
expect to reduce drilling costs even further to US$2.5 million per well, lower than our previous guidance of
US$2.9 million per well.
Black Hawk (US$M) H2 FY15 H1 FY15 FY15 FY14
Drilling cost per well 2.9 3.7 3.4 4.2
In our Conventional business, investment remained focused on high-return infill drilling opportunities in the Gulf of
Mexico and life extension projects at Bass Strait and North West Shelf.
Petroleum capital expenditure of approximately US$3.1 billion is planned in the 2016 financial year. Onshore US
capital expenditure is expected to account for US$1.5 billion of this and support a development program of 10
operated rigs. Completions activity will continue to be tailored to market conditions and we will exercise further
flexibility should there be greater value in deferral. Drilling activity will be focused on our liquids-rich Black Hawk
and Permian acreage with our dry-gas development program in Haynesville and Fayetteville deferred for longer-
term value.
2015 financial year Liquids focused areas Gas focused areas
(2014 financial year) Eagle Ford Permian Haynesville Fayetteville Total
Capital expenditure(i) US$ billion 2.3 (3.1) 0.8 (0.5) 0.4 (0.4) 0.2 (0.2) 3.7 (4.2)
Rig allocation At period end 7 (17) 3 (4) 0 (3) 0 (0) 10 (24)
Net wells drilled and completed(ii) Period total 188 (262) 45 (43) 25 (38) 45 (71) 303 (414)
Net productive wells(iii) At period end 836 (647) 75 (57) 395 (899) 1,070 (1,023) 2,376 (2,626)
(i) Includes land acquisition, site preparation, drilling, completions, well site facilities, mid-stream infrastructure and pipelines.
(ii) Can vary between periods based on changes in rig activity and the inventory of wells drilled but not yet completed at period end.
(iii) Change in productive well count includes reduction associated with the divestment of assets in North Louisiana (Haynesville) and
Pecos (Permian).
Petroleum exploration expenditure for the 2015 financial year was US$567 million, of which US$481 million was
expensed. Activity for the period was largely focused on the Gulf of Mexico, Western Australia and Trinidad and
Tobago. A US$600 million exploration program is planned for the 2016 financial year, largely focused on acreage
access and seismic data acquisition.
On 16 February 2015, BHP Billiton signed an agreement with Tri-Resources, a subsidiary of the Hashoo Group,
for the sale of our gas business in Pakistan. The transaction is subject to regulatory approval.
Potash
Potash recorded an Underlying EBIT loss of US$184 million in the 2015 financial year. The excavation and lining
of the Jansen Potash project shafts is steadily progressing and the pre-development project was 46 per cent
complete at the end of the period. We expect to spend approximately US$350 million in the 2016 financial year.
With our investment premised on the attractive longer-term market fundamentals for potash, we will continue to
review the appropriate pace and level of development activity and capital expenditure for the project.
Financial information for the Petroleum and Potash business for the 2015 and 2014 financial years is presented
below.
Year ended Net
30 June 2015 Underlying Underlying operating Capital Exploration Exploration
US$M Revenue(i) EBITDA D&A EBIT assets expenditure gross(ii) to profit(iii)
Australia Production Unit(iv) 1,003 862 337 525 1,091 44
Bass Strait 1,291 1,025 127 898 3,055 328
North West Shelf 1,899 1,351 186 1,165 1,400 135
Atlantis 1,071 904 368 536 2,146 354
Shenzi 973 868 287 581 1,399 268
Mad Dog 175 87 34 53 581 101
Eagle Ford(v) 2,932 1,792 2,172 (380) 10,754 2,315
Permian(v)(vi) 263 69 502 (433) 1,096 773
Haynesville(v)(vi) 532 13 554 (541) 5,916 411
Fayetteville(v) 448 162 195 (33) 2,960 183
Trinidad/Tobago(iv) 220 159 28 131 827 10
Algeria 309 247 38 209 97 23
Exploration - (481) 48 (529) 733 -
Other(vii)(viii) 276 98 342 (244) 2,518 78
Total Petroleum 11,392 7,156 5,218 1,938 34,573 5,023 567 529
Potash - (178) 6 (184) 2,684 336 3 3
Other(ix) - 47 - 47 (970) - - -
Total Petroleum and Potash
from Group production 11,392 7,025 5,224 1,801 36,287 5,359 570 532
Third party products 69 1 - 1 - -
Total Petroleum and Potash 11,461 7,026 5,224 1,802 36,287 5,359 570 532
Statutory adjustments(x) (14) (3) (3) - - - - -
Total Petroleum and Potash 11,447 7,023 5,221 1,802 36,287 5,359 570 532
statutory result
Year ended
30 June 2014 Net
(Restated) Underlying Underlying operating Capital Exploration Exploration
US$M Revenue(i) EBITDA D&A EBIT assets expenditure gross(ii) to profit(iii)
Australia Production Unit(iv) 1,418 1,220 309 911 1,464 419
Bass Strait 1,885 1,555 132 1,423 2,864 259
North West Shelf(xi) 2,432 1,599 175 1,424 1,691 193
Atlantis 1,535 1,407 335 1,072 2,272 385
Shenzi 1,430 1,281 243 1,038 1,598 210
Mad Dog 217 171 16 155 461 68
Onshore US(v) 4,264 2,270 2,426 (156) 23,377 4,226
Trinidad/Tobago(iv) 273 374 52 322 709 8
Algeria 465 396 30 366 104 19
Exploration - (369) 113 (482) 464 -
Other(vii)(viii)(xii) 491 220 426 (206) 3,264 92
Total Petroleum 14,410 10,124 4,257 5,867 38,268 5,879 600 497
Potash - (211) 74 (285) 2,255 544 47 47
Other(ix) - (298) - (298) (1,009) - - -
Total Petroleum and Potash
from Group production 14,410 9,615 4,331 5,284 39,514 6,423 647 544
Third party products 437 3 - 3 - -
Total Petroleum and Potash 14,847 9,618 4,331 5,287 39,514 6,423 647 544
Statutory adjustments(x) (14) (3) (3) - - - - -
Total Petroleum and Potash 14,833 9,615 4,328 5,287 39,514 6,423 647 544
statutory result
(i) Petroleum revenue from Group production includes: crude oil US$6,592 million (2014: US$8,645 million), natural gas US$2,489 million
(2014: US$3,119 million), LNG US$1,366 million (2014: US$1,614 million), NGL US$665 million (2014: US$916 million) and other
US$266 million (2014: US$102 million).
(ii) Includes US$86 million of capitalised exploration (2014: US$231 million).
(iii) Includes US$48 million of exploration expenditure previously capitalised, written off as impaired (included in depreciation and
amortisation) (2014: US$128 million).
(iv) Australia Production Unit includes Macedon, Pyrenees, Minerva and Stybarrow. Comparative period has been restated to report
Australia Production Unit and Trinidad/Tobago separately from Other.
(v) Onshore US is now reported separately between Eagle Ford, Permian, Haynesville and Fayetteville.
(vi) Includes US$328 million of impairments associated with the divestment of assets in North Louisiana (Haynesville) and the Pecos field
(Permian).
(vii) Predominantly divisional activities, business development, Pakistan, UK, Neptune, Genesis and ceased and sold operations. Also
includes the Caesar oil pipeline and the Cleopatra gas pipeline which are equity accounted investments and are reported on a
proportionate consolidation basis (with the exception of net operating assets).
(viii) Goodwill associated with Onshore US of US$3,026 million is included in Other net operating assets (2014: US$3,568 million).
(ix) Includes closed mining and smelting operations in Canada and the United States.
(x) Includes statutory adjustments for the Caesar oil pipeline and the Cleopatra gas pipeline to reconcile the proportionately consolidated
business total to the statutory result.
(xi) Includes an expense of US$143 million incurred in May 2014 related to the purchase price adjustment for the Browse asset sale
completed in the 2013 financial year.
(xii) Includes an expense of US$112 million incurred in November 2013 related to the closure of the UK pension plan. Also includes a gain
of US$120 million related to the sale of the Liverpool Bay asset in March 2014.
Copper
Underlying EBIT for the 2015 financial year decreased by US$1.3 billion to US$3.4 billion.
US$M
Underlying EBIT for the full year ended 30 June 2014 4,668
Net price impact(i) (1,566)
Change in volumes: productivity 341
Change in controllable cash costs 1,015
Change in other costs:
Exchange rates 359
Inflation (191)
Non-cash (839)
One-off items (218)
Other(ii) (216)
Underlying EBIT for the full year ended 30 June 2015 3,353
(i) Average realised price: copper US$2.78/lb (2014: US$3.22/lb).
(ii) Other includes: fuel and energy; asset sales; ceased and sold operations; other items.
Total copper production(8) for the 2015 financial year was unchanged at 1.7 Mt. Escondida copper production
increased by six per cent to 1.23 Mt as an 11 per cent improvement in truck utilisation and higher grades more
than offset the impact of severe wet weather, water restrictions, industrial action and a power outage throughout
Northern Chile. Pampa Norte copper production increased by seven per cent to 250 kt as Spence benefited from
higher recoveries. Olympic Dam copper production decreased by 32 per cent to 125 kt following an electrical
failure which caused a mill outage in January 2015. Antamina copper production decreased by 25 per cent to 108
kt as lower grades more than offset record mill throughput.
Total copper production is forecast to decrease by 12 per cent in the 2016 financial year to 1.5 Mt. Escondida
copper production of approximately 940 kt is forecast as increased throughput, enabled by the completion of the
Escondida Organic Growth Project 1 (OGP1) and further productivity improvements, partly offset an anticipated
27 per cent decline in grade. Pampa Norte production is forecast to remain at a similar level for the 2016 financial
year. At Olympic Dam, an increase in full-year production is anticipated following the full ramp-up of the mill at the
end of July 2015. Higher average copper grades at Antamina are expected to support an increase in copper
volumes in the 2016 financial year.
During the 2015 financial year, the Escondida Oxide Leach Area Project delivered first production while OGP1
achieved mechanical completion and is now in the commissioning phase. The commissioning of the Escondida
Water Supply (EWS) project remains on schedule to commence in the 2017 calendar year. In the medium term,
completion of the EWS project and the life extension of Los Colorados will allow the use of three concentrators at
Escondida to offset grade decline and support a strong recovery in production. At Olympic Dam, we will continue
with our low-cost underground transition into the higher-grade Southern Mining Area. This high-grade ore will
release latent capacity within our existing operations and lay the foundation for the longer-term underground
expansion.
Unit cash costs at our operated copper assets declined by 14 per cent during the 2015 financial year. At
Escondida, the improvement in truck utilisation and significant costs savings resulted in an eight per cent
decrease to US$1.07 per pound excluding one-off costs. The one-off costs primarily reflect the implementation of
the Escondida voluntary redundancy program which is expected to reduce employee head count by more than 20
per cent.
Escondida unit costs (US$M) H2 FY15 H1 FY15 FY15 FY14
Revenue 4,099 3,720 7,819 8,085
Underlying EBITDA 1,937 2,127 4,064 4,754
Cash costs (gross) 2,162 1,593 3,755 3,331
Less: one-off items 188 - 188 -
Less: freight 56 61 117 139
Less: treatment and refining charges 263 211 474 341
Cash costs (net)(i) 1,655 1,321 2,976 2,851
Sales (kt, equity share)(ii) 696 563 1,259 1,116
Sales (Mlb, equity share)(ii) 1,534 1,241 2,775 2,460
Cash cost per pound (US$) 1.08 1.06 1.07(iii) 1.16
(i) Royalties are reported within taxation expense.
(ii) Sales volumes adjusted to exclude intercompany sales and purchases.
(iii) Unit cost including one-off items is US$1.14 per pound in the 2015 financial year.
In the 2016 financial year, despite an anticipated increase in material moved to mitigate grade decline, a further
step change in unit cost performance is expected as additional benefits from our productivity agenda are realised.
In this context, Escondida unit costs are expected to decline by 15 per cent to US$0.91 per pound on a grade-
adjusted basis(9).
The increase in non-cash costs largely reflects: increased ore mined resulting in higher depletion of stripping
capitalised in previous periods in line with mine plans at Escondida; increased depreciation following the
completion of the Escondida Oxide Leach Area Project; and a US$199 million impairment driven by a lower
copper price and permitting uncertainty for the proposed mine life extension at Cerro Colorado.
On 24 July 2015, Spence filed two Environmental Impact Statements (EIS) in relation to the Spence Growth
Option project (Spence Hypogene). The first EIS contemplates the development of a 95 ktpd concentrator and
the second is for the development of an 800 litre per second desalination plant. While this project has the
potential to extend the life of the operation by 50 years, it remains subject to Board approval.
Financial information for the Copper business for the 2015 and 2014 financial years is presented below.
Year ended Net
30 June 2015 Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Escondida(i) 7,819 4,064 920 3,144 13,909 3,273
Pampa Norte(ii) 1,437 762 669 93 1,926 242
Antamina(iii) 854 420 107 313 1,379 163
Olympic Dam 1,244 280 253 27 6,665 307
Other(iii)(iv) - (152) 11 (163) (178) -
Total Copper from
Group production 11,354 5,374 1,960 3,414 23,701 3,985
Third party products 953 23 - 23 - -
Total Copper 12,307 5,397 1,960 3,437 23,701 3,985 91 91
Statutory adjustments(v) (854) (192) (108) (84) - (163) (1) (1)
Total Copper
statutory result 11,453 5,205 1,852 3,353 23,701 3,822 90 90
Year ended
30 June 2014 Net
(Restated) Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Escondida(i) 8,085 4,754 760 3,994 11,779 3,186
Pampa Norte(ii) 1,796 785 429 356 2,575 336
Antamina(iii) 1,261 818 84 734 1,341 262
Olympic Dam 1,777 299 265 34 6,320 167
Other(iii)(iv) 101 (193) 7 (200) (18) 13
Total Copper from
Group production 13,020 6,463 1,545 4,918 21,997 3,964
Third party products 1,030 8 - 8 - -
Total Copper 14,050 6,471 1,545 4,926 21,997 3,964 113 113
Statutory adjustments(v) (1,261) (344) (86) (258) - (267) (2) (2)
Total Copper
statutory result 12,789 6,127 1,459 4,668 21,997 3,697 111 111
(i) Escondida is consolidated under IFRS 10 and reported on a 100 per cent basis.
(ii) Includes Spence and Cerro Colorado.
(iii) Antamina and Resolution are equity accounted investments and are reported on a proportionate consolidation basis (with the
exception of net operating assets).
(iv) Predominantly comprises divisional activities, greenfield exploration, business development and ceased and sold operations. Includes
Pinto Valley and Resolution. Pinto Valley was sold effective 11 October 2013.
(v) Includes statutory adjustments for Antamina and Resolution to reconcile the proportionately consolidated business total to the statutory
result. Statutory Underlying EBIT includes net finance costs and taxation expense of US$84 million (2014: US$258 million).
Iron Ore
Underlying EBIT for the 2015 financial year decreased by US$5.2 billion to US$6.9 billion.
US$M
Underlying EBIT for the full year ended 30 June 2014 12,102
Net price impact(i) (8,650)
Change in volumes: productivity 823
Change in volumes: growth 1,027
Change in controllable cash costs 1,163
Change in other costs:
Exchange rates 499
Inflation (101)
Other(ii) 69
Underlying EBIT for the full year ended 30 June 2015 6,932
(i) Average realised price: iron ore US$61/wmt, FOB (2014: US$103/wmt, FOB).
(ii) Other includes: fuel and energy; non-cash; asset sales; other items.
Total iron ore production increased by 14 per cent in the 2015 financial year to a record 233 Mt, exceeding full-
year guidance. Western Australia Iron Ore (WAIO) production increased by 13 per cent to a record 254 Mt (100
per cent basis) as a result of continued improvement in the performance of our integrated supply chain and the
successful ramp-up of the Jimblebar mining hub. Continued optimisation of the port facilities and an increase in
direct to ship ore resulted in record sales volumes at WAIO of 256 Mt (100 per cent basis). Samarco production
increased by 33 per cent to 29 Mt (100 per cent basis) as the fourth pellet plant ramped up to full capacity.
Total iron ore production is forecast to increase by six per cent in the 2016 financial year to 247 Mt. WAIO
production is forecast to increase to approximately 270 Mt (100 per cent basis) as a result of improved efficiency
at Mining Area C, Newman and our rail and port operations.
Further productivity improvements and the low-cost expansion of the Jimblebar mining hub(10), which comprises
the installation of a new primary crusher and additional conveying capacity, are expected to deliver an increase in
system capacity to 290 Mtpa over time. Costs associated with the Jimblebar expansion, as well as the investment
to purchase additional tugs and construct a new tug harbour at Port Hedland, are expected to be included within
WAIO’s average sustaining capital expenditure budget of approximately US$5 per tonne.
WAIO unit cash costs declined by 31 per cent to US$19 per tonne, underpinned by reductions in labour,
contractor and maintenance costs, lower diesel prices and a stronger US dollar. In the 2016 financial year, unit
costs are expected to fall even further to US$15 per tonne(9).
WAIO unit costs (US$M) H2 FY15 H1 FY15 FY15 FY14
Revenue 6,245 8,193 14,438 20,883
Underlying EBITDA 3,519 4,778 8,297 12,966
Cash costs (gross) 2,726 3,415 6,141 7,917
Less: freight 397 658 1,055 1,274
Less: royalties 425 554 979 1,497
Cash costs (net) 1,904 2,203 4,107 5,146
Sales (kt, equity share) 111,916 108,245 220,161 190,843
Cash cost per tonne (US$) 17.01 20.35 18.65 26.96
Our WAIO operations continue to underpin substantial free cash flow generation, despite the iron ore price
moving towards its historical long-term average. Importantly, the quality of our ore bodies and their concentrated
geographic footprint, combined with a low strip ratio, remains a competitive advantage.
Financial information for the Iron Ore business for the 2015 and 2014 financial years is presented below.
Year ended Net
30 June 2015 Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Western Australia Iron Ore 14,438 8,297 1,713 6,584 22,804 1,911
Samarco(i) 1,406 695 118 577 1,044 170
Other(ii) 135 (8) 3 (11) 106 19
Total Iron Ore from
Group production 15,979 8,984 1,834 7,150 23,954 2,100
Third party products(iii) 180 (10) - (10) - -
Total Iron Ore 16,159 8,974 1,834 7,140 23,954 2,100 118 38
Statutory adjustments(iv) (1,406) (326) (118) (208) - (170) - -
Total Iron Ore 14,753 8,648 1,716 6,932 23,954 1,930 118 38
statutory result
Year ended
30 June 2014 Net
(Restated) Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Western Australia Iron Ore(v) 20,883 12,966 1,427 11,539 22,223 2,947
Samarco(i) 1,634 846 56 790 1,072 424
Other(ii)(v) 130 (32) 2 (34) 95 -
Total Iron Ore from
Group production 22,647 13,780 1,485 12,295 23,390 3,371
Third party products(iii) 343 (3) - (3) - -
Total Iron Ore 22,990 13,777 1,485 12,292 23,390 3,371 169 56
Statutory adjustments(iv) (1,634) (246) (56) (190) - (422) - -
Total Iron Ore
statutory result 21,356 13,531 1,429 12,102 23,390 2,949 169 56
(i) Samarco is an equity accounted investment and is reported on a proportionate consolidation basis (with the exception of net operating
assets).
(ii) Predominantly comprises divisional activities, towage services, business development and ceased operations.
(iii) Includes inter-segment and external sales of contracted gas purchases.
(iv) Includes statutory adjustments for Samarco to reconcile the proportionately consolidated business total to the statutory result. Statutory
Underlying EBIT includes net finance costs and taxation expense of US$208 million (2014: US$190 million).
(v) The comparative period has been restated to reallocate towage services from Western Australia Iron Ore to Other.
Coal
Underlying EBIT for the 2015 financial year decreased by US$227 million to US$348 million.
US$M
Underlying EBIT for the full year ended 30 June 2014 575
Net price impact(i) (1,027)
Change in volumes: productivity 38
Change in volumes: growth (4)
Change in controllable cash costs 418
Change in other costs:
Exchange rates 406
Inflation (71)
Other(ii) 13
Underlying EBIT for the full year ended 30 June 2015 348
(i) Average realised price: hard coking coal US$105/t (2014: US$131/t); weak coking coal US$88/t (2014: US$111/t); thermal coal US$58/t
(2014: US$74/t).
(ii) Other includes: fuel and energy; non-cash; asset sales; ceased and sold operations; other items.
Metallurgical coal production increased by 13 per cent in the 2015 financial year to a record 43 Mt. Record
production and sales volumes at Queensland Coal were supported by the successful ramp-up of the Caval Ridge
mine and continued productivity improvements. An increase in equipment and wash-plant utilisation rates
underpinned record volumes at six other operations.
Energy coal production for the 2015 financial year decreased by five per cent to 41 Mt as anticipated. Lower
production reflected drought conditions and the need to manage dust emissions at Cerrejón, as well as reduced
demand for our Navajo Coal product.
Metallurgical coal production is forecast to decrease in the 2016 financial year to 40 Mt as operations at Crinum
are expected to cease in the first quarter of the 2016 calendar year as the mine approaches the end of its
economic reserve life. Energy coal production is forecast to remain broadly unchanged in the 2016 financial year
at 40 Mt(11).
Queensland Coal unit cash costs declined by 23 per cent to US$65 per tonne, supported by increased equipment
and wash-plant utilisation rates, a continued reduction in labour, contractor and maintenance costs and a
favourable currency movement. In the 2016 financial year, unit costs are expected to decline to US$61 per
tonne(9) as the benefits from embedded productivity initiatives and a stronger US dollar, more than offset the
removal of low-cost Crinum volumes and the expenses associated with its closure.
Queensland Coal unit costs (US$M) H2 FY15 H1 FY15 FY15 FY14
Revenue 1,970 2,251 4,221 4,666
Underlying EBITDA 528 478 1,006 949
Cash costs (gross) 1,442 1,773 3,215 3,717
Less: freight 63 111 174 237
Less: royalties 144 146 290 331
Cash costs (net) 1,235 1,516 2,751 3,149
Sales (kt, equity share) 20,861 21,428 42,289 37,461
Cash cost per tonne (US$) 59.20 70.75 65.05 84.06
The Hay Point Stage Three Expansion project was successfully completed during the 2015 financial year. As a
result of a significant improvement in capital productivity, average sustaining capital expenditure of approximately
US$6 per tonne is anticipated over the next five years.
On 2 July 2015, BHP Billiton announced that the sale agreement for the San Juan Mine to Westmoreland Coal
Company (WCC) had been executed. Subject to regulatory approval, the transaction is expected to be completed
at the end of this calendar year with WCC assuming full operation of the mine from 1 January 2016.
Financial information for the Coal business for the 2015 and 2014 financial years is presented below.
Year ended Net
30 June 2015 Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Queensland Coal 4,221 1,006 719 287 9,154 599
New Mexico 531 134 47 87 173 20
New South Wales Energy
Coal (i) 1,225 303 161 142 1,322 121
Colombia(i) 719 231 105 126 924 73
Other(ii) - (91) 1 (92) 196 17
Total Coal from Group
production 6,696 1,583 1,033 550 11,769 830
Third party products 7 - - - - -
Total Coal 6,703 1,583 1,033 550 11,769 830 20 20
Statutory adjustments(iii) (818) (341) (139) (202) - (101) - -
Total Coal
statutory result 5,885 1,242 894 348 11,769 729 20 20
Year ended
30 June 2014 Net
(Restated) Underlying Underlying operating Capital Exploration Exploration
US$M Revenue EBITDA D&A EBIT assets expenditure gross to profit
Queensland Coal 4,666 949 514 435 9,115 1,790
New Mexico 520 105 46 59 202 26
New South Wales Energy
Coal(i) 1,350 324 150 174 1,392 170
Colombia(i) 814 305 85 220 1,037 133
Other(ii) - (166) 2 (168) 162 34
Total Coal from Group
production 7,350 1,517 797 720 11,908 2,153
Third party products 27 - - - 1 -
Total Coal 7,377 1,517 797 720 11,909 2,153 29 29
Statutory adjustments(iii) (814) (259) (114) (145) - (182) - -
Total Coal
statutory result 6,563 1,258 683 575 11,909 1,971 29 29
(i) Newcastle Coal Infrastructure Group and Cerrejón are equity accounted investments and are reported on a proportionate consolidation
basis (with the exception of net operating assets).
(ii) Predominantly comprises divisional activities and greenfield projects.
(iii) Includes statutory adjustments for Newcastle Coal Infrastructure Group and Cerrejón to reconcile the proportionately consolidated
business total to the statutory result. Statutory Underlying EBIT includes net finance costs and taxation expense of US$126 million (2014:
US$80 million).
Group and unallocated items
Underlying EBIT expense increased by US$35 million to US$569 million in the 2015 financial year, as a US$238
million self insurance claim related to the mill outage at Olympic Dam more than offset a reduction in controllable
costs and a favourable exchange rate movement at Nickel West.
Reserves and resources changes
BHP Billiton has confirmed major changes to Petroleum and Escondida reserves and Western Australia Iron Ore
resources since the previous estimates as at 30 June 2014. These changes are set out on pages 55 to 60.
The financial information on pages 29 to 54 has been prepared in accordance with IFRS. This news release including the financial
information is unaudited. Variance analysis relates to the relative financial and/or production performance of BHP Billiton and/or its
operations during the 2015 financial year compared with the 2014 financial year, unless otherwise noted.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); barrels of oil equivalent (boe);
cost and freight (CFR); cost, insurance and freight (CIF), dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t);
kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million barrels of oil equivalent per day
(MMboe/d); thousand cubic feet equivalent (Mcfe); million cubic feet per day (MMcf/d); million pounds (Mlb); million tonnes (Mt); million
tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard
cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric
tonnes (wmt).
The following footnotes apply to this profit release:
(1) Underlying attributable profit, Underlying EBIT and Underlying EBITDA are used to reflect the underlying performance of BHP
Billiton. Underlying attributable profit is Attributable profit excluding discontinued operations and any exceptional items.
Underlying EBIT is earnings before net finance costs, taxation, discontinued operations and any exceptional items. Underlying
EBITDA is Underlying EBIT before depreciation, impairments and amortisation of US$9,986 million for the year ended 30 June
2015 and US$8,194 million for the year ended 30 June 2014. We believe that Underlying attributable profit, Underlying EBIT and
Underlying EBITDA provide useful information, but should not be considered as an indication of, or as an alternative to,
Attributable profit as an indicator of actual operating performance or as an alternative to cash flow as a measure of liquidity.
Underlying EBIT is reported net of net finance costs and taxation expense related to equity accounted investments of US$418
million (2014: US$528 million).
Underlying EBITDA is reported net of net finance costs and taxation expense, depreciation, impairments and amortisation related
to equity accounted investments of US$786 million (2014: US$787 million).
(2) Non-IFRS measures are defined as follows and exclude discontinued operations unless otherwise stated:
• Adjusted effective tax rate – comprises Total taxation expense excluding remeasurement of deferred tax assets associated with
the Minerals Resource Rent Tax (MRRT), exceptional items and exchange rate movements included in taxation expense divided
by Profit before taxation and exceptional items.
• Attributable profit excluding exceptional items – comprises Profit after taxation attributable to members of BHP Billiton Group less
exceptional items as described in note 2 to the financial information. It includes Attributable profit from discontinued operations
excluding any exceptional items from discontinued operations as described in note 6 to the financial information.
• Free cash flow – comprises net operating cash flows less net investing cash flows.
• Gearing ratio – represents the ratio of net debt to net debt plus net assets.
• Net debt – comprises Interest bearing liabilities less Cash and cash equivalents for the total operations within the Group at the
reporting date.
• Net operating assets – represents operating assets net of operating liabilities including the carrying value of equity accounted
investments and predominantly excludes cash balances, interest bearing liabilities and deferred tax balances. The carrying value
of investments accounted for using the equity accounted method represents the balance of the Group’s investment in equity
accounted investments, with no adjustment for any cash balances, interest bearing liabilities and deferred tax balances of the
equity accounted investment.
• Underlying attributable profit – comprises Profit after taxation attributable to members of BHP Billiton Group less exceptional
items as described in note 2 to the financial information.
• Underlying basic earnings per share – represents basic earnings per share excluding any exceptional items.
• Underlying EBIT margin – comprises Underlying EBIT excluding third party product profit from operations, divided by revenue
excluding third party product revenue.
• Underlying EBITDA margin – comprises Underlying EBITDA excluding third party product EBITDA, divided by revenue excluding
third party product revenue.
• Underlying EBITDA interest coverage – for the purpose of deriving interest coverage, net interest comprises Interest on bank
loans and overdrafts, Interest on all other borrowings, Finance lease and hire purchase interest less Interest income.
• Underlying return on capital – represents net profit after tax, excluding exceptional items and net finance costs (after tax), divided
by average capital employed. Capital employed is net assets before net debt.
(3) Represents productivity-led volume efficiencies, operating cash cost efficiencies and exploration and business development
savings on a continuing operations basis. Productivity-led volume efficiencies refer to volume increases, excluding volume
increases from major capital projects, multiplied by the prior period Underlying EBIT margin. Operating cash cost efficiencies refer
to the reduction in costs, excluding the impact of volume, price-linked costs, exchange rates, inflation, fuel and energy, non-cash
costs, one-off items, ceased and sold operations and other items. Exploration and business development savings refers to the
reduction in total exploration and business development costs including capitalised exploration.
(4) Represents the share of capital and exploration expenditure attributable to BHP Billiton shareholders on a cash basis. Includes
BHP Billiton proportionate share of equity accounted investments; excludes capitalised deferred stripping and non-controlling
interests.
(5) BHP Billiton has an A+ credit rating with Standard & Poor’s on negative outlook and an A1 credit rating with Moody’s on stable
outlook. The solid A credit rating target refers to A+ or A from Standard & Poor’s or A2 and above from Moody’s.
(6) Total Recordable Injury Frequency for the 2015 financial year includes 10 months contribution from assets that were demerged
with South32.
(7) Movement in Escondida unit cost excludes one-off items.
(8) Excludes Pinto Valley which was sold during the 2014 financial year.
(9) WAIO and Queensland Coal unit cash costs exclude freight and royalties; Escondida unit cash costs exclude freight and
treatment and refining charges. Escondida grade-adjusted unit cost is on a 2015 financial year grade-equivalent basis. 2016
financial year guidance is based on exchange rates of AUD/USD 0.74 and USD/CLP 674.
(10)Subject to approvals process.
(11)Guidance assumes a full year of production from the San Juan mine.
Forward-looking statements
This release 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 release. Readers are cautioned not to put undue reliance on forward-looking statements.
For example, our future revenues from our operations, projects or mines described in this release 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 U.S. 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 measures including Adjusted
effective tax rate, Attributable profit excluding exceptional items, Free cash flow, Gearing ratio, Net debt, Net operating assets, Underlying
attributable profit, Underlying basic earnings per share, Underlying EBIT margin, Underlying EBITDA margin, Underlying EBITDA interest
coverage and Underlying return on capital. 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 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 release 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 release 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
release should not be relied upon as a recommendation or forecast by BHP Billiton.
No financial or investment advice – South Africa
BHP Billiton does not provide any financial or investment 'advice' as that term is defined in the South African Financial Advisory and
Intermediary Services Act, 37 of 2002, and we strongly recommend that you seek professional advice.
Sponsor: Merrill Lynch South Africa Proprietary Limited
Further information on BHP Billiton can be found at: www.bhpbilliton.com
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BHP Billiton Group
Financial Information
For the year ended 30 June 2015
Contents Page
Financial Information
Consolidated Income Statement 31
Consolidated Statement of Comprehensive Income 32
Consolidated Balance Sheet 33
Consolidated Cash Flow Statement 34
Consolidated Statement of Changes in Equity 35
Notes to the Financial Information 38
The financial information included in this document for the year ended 30 June 2015 is unaudited and has been
derived from the draft financial report of the BHP Billiton Group for the year ended 30 June 2015. The financial
information does not constitute the Group’s full statutory accounts for the year ended 30 June 2015, which will be
approved by the Board, reported on by the auditors, and subsequently filed with the UK Registrar of Companies
and the Australian Securities and Investments Commission.
The financial information set out on pages 29 to 54 for the year ended 30 June 2015 has been prepared on the
basis of accounting policies and methods of computation consistent with those applied in the 30 June 2014
financial statements contained within the Annual Report of the BHP Billiton Group except for the adoption of:
• IFRIC 21 ‘Levies’ which confirms that a liability to pay a levy is only recognised when the activity that
triggers the payment occurs; and
• Amendments to IAS 32/AASB 132 ‘Financial Instruments: Presentation’ which clarifies the criteria for
offsetting financial assets and liabilities.
The adoption of IFRIC 21 and the amendments to IAS 32 did not have a material impact on the BHP Billiton
Group and therefore no restatements have been made to the prior year financial statements.
The comparative figures for the financial years ended 30 June 2014 and 30 June 2013 are not the statutory
accounts of the BHP Billiton Group for those financial years. Those accounts have been reported on by the
company’s auditor and delivered to the Registrar of Companies. The reports of the auditor were (i) unqualified, (ii)
did not include a reference to any matters to which the auditor drew attention by way of emphasis without
qualifying the reports and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act
2006.
All amounts are expressed in US dollars unless otherwise stated. The BHP Billiton Group’s presentation currency
and the functional currency of the majority of its operations is US dollars as this is the principal currency of the
economic environment in which it operates. Amounts in this financial information have, unless otherwise
indicated, been rounded to the nearest million dollars.
Where applicable, comparative periods have been adjusted to disclose them on the same basis as the current
period figures. The financial information for the years ended 30 June 2014 and 30 June 2013 has been restated
for the effects of the application of IFRS 5/AASB 5 ‘Non-current Assets Held for Sale and Discontinued
Operations’ following the demerger of South32. The nature of each change reflected in the restated financial
information is as follows:
• All income and expense items relating to South32 have been removed from the individual line items in the
Consolidated Income Statement. The post-tax (loss)/profit of South32 is presented as a single amount in
the line item entitled “(Loss)/Profit after taxation from discontinued operations”; and
• All cash flows and other items relating to South32 have been removed from the individual line items in the
Consolidated Cash Flow Statement. The net cash flows attributable to the operating, investing and
financing activities of South32 and the cash disposed of on demerger of South32 are each disclosed in
single amount in each section of the Consolidated Cash Flow Statement.
The Consolidated Balance Sheet, the Consolidated Statement of Comprehensive Income and the Consolidated
Statement of Changes in Equity for these periods are not required to be restated.
Consolidated Income Statement for the year ended 30 June 2015
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Notes Restated Restated
Continuing operations
Revenue
Group production 43,457 55,045 52,637
Third party products 1,179 1,717 1,223
Revenue 1 44,636 56,762 53,860
Other income 496 1,225 3,804
Expenses excluding net finance costs (37,010) (36,523) (36,829)
Share of operating profit of equity accounted investments 3 548 1,185 1,142
Profit from operations 8,670 22,649 21,977
Comprising:
Group production 8,656 22,634 21,913
Third party products 14 15 64
8,670 22,649 21,977
Financial expenses (702) (995) (1,229)
Financial income 88 81 80
Net finance costs 4 (614) (914) (1,149)
Profit before taxation 8,056 21,735 20,828
Income tax expense (2,762) (6,266) (5,646)
Royalty-related taxation (net of income tax benefit) (904) (514) (1,050)
Total taxation expense 5 (3,666) (6,780) (6,696)
Profit after taxation from continuing operations 4,390 14,955 14,132
Discontinued operations
(Loss)/profit after taxation from discontinued operations 6 (1,512) 269 (1,312)
Profit after taxation 2,878 15,224 12,820
Attributable to non-controlling interests 968 1,392 1,597
Attributable to members of BHP Billiton Group 1,910 13,832 11,223
Basic earnings per ordinary share (cents) 7 35.9 260.0 210.9
Diluted earnings per ordinary share (cents) 7 35.8 259.1 210.2
Basic earnings from continuing operations per ordinary share 7 65.5 256.5 238.6
(cents)
Diluted earnings from continuing operations per ordinary share 7 65.3 255.7 237.8
(cents)
Dividends per ordinary share – paid during the period (cents) 8 124.0 118.0 114.0
Dividends per ordinary share – determined in respect of the period 8 124.0 121.0 116.0
(cents)
The accompanying notes form part of this financial information.
Consolidated Statement of Comprehensive Income for the year ended 30 June 2015
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Profit after taxation 2,878 15,224 12,820
Other comprehensive income
Items that may be reclassified subsequently to the income statement:
Available for sale investments:
Net valuation losses taken to equity (21) (15) (101)
Net valuation gains transferred to the income statement (115) (14) (1)
Cash flow hedges:
(Losses)/gains taken to equity (1,797) 681 223
(Losses)/gains transferred to the income statement 1,815 (678) 73
Exchange fluctuations on translation of foreign operations taken to equity (2) (1) 2
Tax recognised within other comprehensive income 29 3 (76)
Total items that may be reclassified subsequently to the income statement (91) (24) 120
Items that will not be reclassified to the income statement:
Actuarial (losses)/gains on pension and medical schemes (28) 57 61
Tax recognised within other comprehensive income (17) 12 (16)
Total items that will not be reclassified to the income statement (45) 69 45
Total other comprehensive (loss)/income (136) 45 165
Total comprehensive income 2,742 15,269 12,985
Attributable to non-controlling interests 973 1,392 1,599
Attributable to members of BHP Billiton Group 1,769 13,877 11,386
The accompanying notes form part of this financial information.
Consolidated Balance Sheet as at 30 June 2015
30 June 2015 30 June 2014
US$M US$M
ASSETS
Current assets
Cash and cash equivalents 6,753 8,803
Trade and other receivables 4,321 6,741
Other financial assets 83 87
Inventories 4,292 6,013
Current tax assets 658 318
Other 262 334
Total current assets 16,369 22,296
Non-current assets
Trade and other receivables 1,499 1,867
Other financial assets 1,159 2,349
Inventories 466 463
Property, plant and equipment 94,072 108,787
Intangible assets 4,292 5,439
Investments accounted for using the equity method 3,712 3,664
Deferred tax assets 2,861 6,396
Other 150 152
Total non-current assets 108,211 129,117
Total assets 124,580 151,413
LIABILITIES
Current liabilities
Trade and other payables 7,389 10,145
Interest bearing liabilities 3,201 4,262
Other financial liabilities 251 16
Current tax payable 207 919
Provisions 1,676 2,504
Deferred income 129 218
Total current liabilities 12,853 18,064
Non-current liabilities
Trade and other payables 29 113
Interest bearing liabilities 27,969 30,327
Other financial liabilities 1,031 303
Deferred tax liabilities 4,542 7,066
Provisions 7,306 9,891
Deferred income 305 267
Total non-current liabilities 41,182 47,967
Total liabilities 54,035 66,031
Net assets 70,545 85,382
EQUITY
Share capital – BHP Billiton Limited 1,186 1,186
Share capital – BHP Billiton Plc 1,057 1,069
Treasury shares (76) (587)
Reserves 2,557 2,927
Retained earnings 60,044 74,548
Total equity attributable to members of BHP Billiton Group 64,768 79,143
Non-controlling interests 5,777 6,239
Total equity 70,545 85,382
The accompanying notes form part of this financial information.
Consolidated Cash Flow Statement for the year ended 30 June 2015
US$M Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
Restated Restated
Operating activities
Profit before taxation 8,056 21,735 20,828
Adjustments for:
Non-cash or non-operating exceptional items 3,196 (551) (331)
Depreciation and amortisation expense 9,158 7,716 6,067
Net gain on sale of non-current assets (9) (73) (17)
Impairments of property, plant and equipment, financial assets and intangibles 828 478 344
Employee share awards expense 247 247 210
Net finance costs 614 914 1,149
Share of operating profit of equity accounted investments (548) (1,185) (1,142)
Other 265 (79) 5
Changes in assets and liabilities:
Trade and other receivables 1,431 (349) 904
Inventories 151 (158) (276)
Trade and other payables (990) 238 (239)
Net other financial assets and liabilities (8) (90) 89
Provisions and other liabilities (771) 475 (565)
Cash generated from operations 21,620 29,318 27,026
Dividends received 17 14 6
Dividends received from equity accounted investments 723 1,250 710
Interest received 86 120 112
Interest paid (627) (915) (960)
Income tax refunded 348 848 -
Income tax paid (3,225) (6,123) (6,921)
Royalty-related taxation refunded - 216 -
Royalty-related taxation paid (1,148) (1,088) (956)
Net operating cash flows from continuing operations 17,794 23,640 19,017
Net operating cash flows from discontinued operations 1,502 1,724 1,137
Net operating cash flows 19,296 25,364 20,154
Investing activities
Purchases of property, plant and equipment (11,947) (15,224) (21,104)
Exploration expenditure (816) (986) (1,321)
Exploration expenditure expensed and included in operating cash flows 670 698 1,026
Purchase of intangibles (98) (192) (380)
Investment in financial assets (15) (1,168) (455)
Investment in equity accounted investments (71) (44) (84)
Cash outflows from investing activities (12,277) (16,916) (22,318)
Proceeds from sale of property, plant and equipment 66 66 2,274
Proceeds from sale of intangibles 8 - -
Proceeds from financial assets 445 904 221
Proceeds from divestment of subsidiaries, operations and joint operations, net of their
cash 256 812 502
Proceeds from sale or partial sale of equity accounted investments - - 1,700
Net investing cash flows from continuing operations (11,502) (15,134) (17,621)
Net investing cash flows from discontinued operations (1,066) (700) (1,105)
Cash disposed of on demerger of South32 (586) - -
Net investing cash flows (13,154) (15,834) (18,726)
Financing activities
Proceeds from interest bearing liabilities 3,440 6,000 9,143
(Settlements)/proceeds from debt related instruments (33) 37 14
Repayment of interest bearing liabilities (4,135) (7,048) (1,902)
Proceeds from ordinary shares 9 14 12
Contributions from non-controlling interests 53 1,435 73
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts (355) (368) (445)
Dividends paid (6,498) (6,387) (6,167)
Dividends paid to non-controlling interests (554) (119) (778)
Net financing cash flows from continuing operations (8,073) (6,436) (50)
Net financing cash flows from discontinued operations (203) (32) (148)
Net financing cash flows (8,276) (6,468) (198)
Net (decrease)/increase in cash and cash equivalents from continuing
operations (1,781) 2,070 1,346
Net increase/(decrease) in cash and cash equivalents from discontinued
operations 233 992 (116)
Cash and cash equivalents, net of overdrafts, at beginning of period 8,752 5,667 4,454
Cash disposed of on demerger of South32 (586) - -
Foreign currency exchange rate changes on cash and cash equivalents (5) 23 (17)
Cash and cash equivalents, net of overdrafts, at end of period 6,613 8,752 5,667
The accompanying notes form part of this financial information.
Consolidated Statement of Changes in Equity for the year ended 30 June 2015
For the year ended 30 June 2015 Attributable to members of the BHP Billiton Group
US$M Share Share Treasury Reserves Retained Total equity Non- Total
capital capital shares earnings attributable controlling equity
– BHP – BHP to members interests
Billiton Billiton of BHP
Limited Plc Billiton
Group
Balance as at 1 July 2014 1,186 1,069 (587) 2,927 74,548 79,143 6,239 85,382
Profit after taxation - - - - 1,910 1,910 968 2,878
Other comprehensive income:
Net valuation (losses)/gains on available for
sale investments taken to equity - - - (27) - (27) 6 (21)
Net valuation gains on available for sale
investments transferred to the income
statement - - - (115) - (115) - (115)
Losses on cash flow hedges taken to equity - - - (1,797) - (1,797) - (1,797)
Losses on cash flow hedges transferred to the
income statement - - - 1,815 - 1,815 - 1,815
Exchange fluctuations on translation of foreign
operations taken to equity - - - (2) - (2) - (2)
Actuarial losses on pension and medical
schemes - - - - (28) (28) - (28)
Tax recognised within other comprehensive
income - - - 30 (17) 13 (1) 12
Total comprehensive income - - - (96) 1,865 1,769 973 2,742
Transactions with owners:
Shares cancelled - (12) 501 12 (501) - - -
Purchase of shares by ESOP Trusts - - (355) - - (355) - (355)
Employee share awards exercised net of
employee contributions and other adjustments - - 363 (461) 101 3 - 3
Employee share awards forfeited - - - (13) 13 - - -
Accrued employee entitlement for unexercised
awards - - - 247 - 247 - 247
Distribution to option holders - - - (1) - (1) (1) (2)
Dividends - - - - (6,596) (6,596) (639) (7,235)
In specie dividend on demerger - refer to Note
6 Discontinued operations - - - - (9,445) (9,445) - (9,445)
Equity contributed - - - 1 - 1 52 53
Transfers within equity on demerger - - - (59) 59 - - -
Conversion of controlled entities to equity
accounted investments - - 2 - - 2 (847) (845)
Balance as at 30 June 2015 1,186 1,057 (76) 2,557 60,044 64,768 5,777 70,545
The accompanying notes form part of this financial information.
Consolidated Statement of Changes in Equity for the year ended 30 June 2015 (continued)
For the year ended 30 June 2014 Attributable to members of the BHP Billiton Group
US$M Share Share Treasury Reserves Retained Total equity Non- Total
capital capital shares earnings attributable controlling equity
– BHP – BHP to members interests
Billiton Billiton of BHP
Limited Plc Billiton
Group
Balance as at 1 July 2013 1,186 1,069 (540) 1,970 66,982 70,667 4,624 75,291
Profit after taxation - - - - 13,832 13,832 1,392 15,224
Other comprehensive income:
Net valuation losses on available for sale
investments taken to equity - - - (15) - (15) - (15)
Net valuation gains on available for sale
investments transferred to the income
statement (14) (14) (14)
Gains on cash flow hedges taken to equity - - - 681 - 681 - 681
Gains on cash flow hedges transferred to
the income statement - - - (678) - (678) - (678)
Exchange fluctuations on translation of
foreign operations taken to equity - - - (1) - (1) - (1)
Actuarial gains on pension and medical
schemes - - - - 57 57 - 57
Tax recognised within other comprehensive
income - - - 3 12 15 - 15
Total comprehensive income - - - (24) 13,901 13,877 1,392 15,269
Transactions with owners:
Purchase of shares by ESOP Trusts - - (368) - - (368) - (368)
Employee share awards exercised net of
employee contributions - - 321 (221) (91) 9 - 9
Employee share awards forfeited - - - (32) 32 - - -
Accrued employee entitlement for
unexercised awards - - - 247 - 247 - 247
Distribution to option holders - - - (2) - (2) (2) (4)
Dividends - - - - (6,276) (6,276) (252) (6,528)
Equity contributed - - - 989 - 989 477 1,466
Balance as at 30 June 2014 1,186 1,069 (587) 2,927 74,548 79,143 6,239 85,382
The accompanying notes form part of this financial information.
Consolidated Statement of Changes in Equity for the year ended 30 June 2015 (continued)
For the year ended 30 June 2013 Attributable to members of the BHP Billiton Group
US$M Share Share Treasury Reserves Retained Total equity Non- Total
capital capital shares earnings attributable controlling equity
– BHP – BHP to members interests
Billiton Billiton of BHP
Limited Plc Billiton
Group
Balance as at 1 July 2012 1,186 1,069 (533) 1,912 61,892 65,526 3,789 69,315
Profit after taxation - - - - 11,223 11,223 1,597 12,820
Other comprehensive income:
Net valuation (losses)/gains on available for
sale investments taken to equity - - - (103) - (103) 2 (101)
Net valuation gains on available for sale
investments transferred to the income
statement - - - (1) - (1) - (1)
Gains on cash flow hedges taken to equity - - - 223 - 223 - 223
Losses on cash flow hedges transferred to
the income statement - - - 73 - 73 - 73
Exchange fluctuations on translation of
foreign operations taken to equity - - - 2 - 2 - 2
Actuarial gains on pension and medical
schemes - - - - 60 60 1 61
Tax recognised within other comprehensive
income - - - (117) 26 (91) (1) (92)
Total comprehensive income - - - 77 11,309 11,386 1,599 12,985
Transactions with owners:
Purchase of shares by ESOP Trusts - - (445) - - (445) - (445)
Employee share awards exercised net of
employee contributions - - 438 (243) (178) 17 - 17
Employee share awards forfeited - - - (17) 17 - - -
Accrued employee entitlement for
unexercised awards - - - 210 - 210 - 210
Issue of share options to non-controlling
interests - - - 49 - 49 - 49
Dividends - - - - (6,076) (6,076) (837) (6,913)
Equity contributed - - - - - - 73 73
Divestment of equity accounted investment - - - (18) 18 - - -
Balance as at 30 June 2013 1,186 1,069 (540) 1,970 66,982 70,667 4,624 75,291
The accompanying notes form part of this financial information.
Notes to the Financial Information
1. Segment reporting
The Group operates four Businesses aligned with the commodities which we extract and market, reflecting the
structure used by the Group’s management to assess the performance of the Group.
Reportable segment Principal activities
Petroleum and Potash Exploration, development and production of oil and gas
Potash pre-development
Copper Mining of copper, silver, lead, zinc, molybdenum, uranium and gold
Iron Ore Mining of iron ore
Coal Mining of metallurgical coal and thermal (energy) coal
The segment reporting information excludes discontinued operations, being BHP Billiton’s former interests in its
integrated Aluminium business, Manganese business and the Cerro Matoso nickel operation, Energy Coal South
Africa, Illawarra metallurgical coal and the Cannington silver-lead-zinc mine. Comparative periods have also been
restated.
Group and unallocated items includes Group Functions, other unallocated operations including Nickel West
(previously disclosed in the former Aluminium, Manganese and Nickel Business demerged with South32) and
consolidation adjustments.
Exploration and technology activities are recognised within relevant segments.
It is the Group’s policy that inter-segment sales are made on a commercial basis.
1. Segment reporting (continued)
Year ended 30 June 2015 Petroleum Copper Iron Ore Coal Group and BHP
US$M and Potash unallocated Billiton
items/ Group
eliminations
(f)
Revenue
Group production 10,912 10,500 14,438 5,878 1,395 43,123
Third party products 69 953 76 7 74 1,179
Rendering of services 199 - 135 - - 334
Inter-segment revenue 267 - 104 - (371) -
Total revenue(a) 11,447 11,453 14,753 5,885 1,098 44,636
Underlying EBITDA(b) 7,023 5,205 8,648 1,242 (266) 21,852
Depreciation and amortisation (4,744) (1,545) (1,698) (875) (296) (9,158)
Impairment (losses)/reversals (477) (307) (18) (19) (7) (828)
Underlying EBIT(b) 1,802 3,353 6,932 348 (569) 11,866
Comprising:
Group production 1,801 3,155 6,571 347 (570) 11,304
Third party products 1 23 (10) - - 14
Share of operating profit of equity
accounted investments - 175 371 1 1 548
Underlying EBIT(b) 1,802 3,353 6,932 348 (569) 11,866
Net finance costs(c) (614)
Exceptional items(d) (3,196)
Profit before taxation 8,056
Capital expenditure 5,359 3,822 1,930 729 107 11,947
Investments accounted for using the
equity method(e) 287 1,422 1,044 956 3 3,712
Total assets(e) 43,183 26,340 26,808 14,182 14,067 124,580
Total liabilities(e) 6,896 2,639 2,854 2,413 39,233 54,035
1. Segment reporting (continued)
Year ended 30 June 2014 Petroleum Copper Iron Ore Coal Group and BHP
US$M Restated and Potash unallocated Billiton
items/ Group
eliminations
(f)
Revenue
Group production 14,022 11,759 20,883 6,536 1,603 54,803
Third party products 437 1,030 130 27 93 1,717
Rendering of services 112 - 130 - - 242
Inter-segment revenue 262 - 213 - (475) -
Total revenue(a) 14,833 12,789 21,356 6,563 1,221 56,762
Underlying EBITDA(b) 9,615 6,127 13,531 1,258 (239) 30,292
Depreciation and amortisation (3,951) (1,371) (1,464) (683) (247) (7,716)
Impairment (losses)/reversals (377) (88) 35 - (48) (478)
Underlying EBIT(b) 5,287 4,668 12,102 575 (534) 22,098
Comprising:
Group production 5,288 4,222 11,498 435 (545) 20,898
Third party products 3 8 (3) - 7 15
Share of operating profit of equity
accounted investments (4) 438 607 140 4 1,185
Underlying EBIT(b) 5,287 4,668 12,102 575 (534) 22,098
Net finance costs(c) (914)
Exceptional items(d) 551
Profit before taxation 21,735
Capital expenditure 6,423 3,697 2,949 1,971 184 15,224
Investments accounted for using the equity
method(e) 115 1,386 1,069 1,079 15 3,664
Total assets(e) 47,046 24,255 27,412 14,919 37,781 151,413
Total liabilities(e) 7,532 2,258 4,022 3,010 49,209 66,031
1. Segment reporting (continued)
Year ended 30 June 2013 Petroleum Copper Iron Ore Coal Group and BHP
US$M Restated and Potash unallocated Billiton
items/ Group
eliminations
(f)
Revenue
Group production 12,951 12,472 18,331 6,566 2,098 52,418
Third party products 175 700 86 8 254 1,223
Rendering of services 98 - 121 - - 219
Inter-segment revenue - - 55 - (55) -
Total revenue(a) 13,224 13,172 18,593 6,574 2,297 53,860
Underlying EBITDA(b) 8,910 6,239 12,113 950 (103) 28,109
Depreciation and amortisation (3,068) (1,157) (917) (526) (399) (6,067)
Impairment (losses)/reversals (206) (49) (87) - (20) (362)
Underlying EBIT(b) 5,636 5,033 11,109 424 (522) 21,680
Comprising:
Group production 5,616 4,575 10,565 281 (563) 20,474
Third party products 11 3 31 2 17 64
Share of operating profit of equity
accounted investments 9 455 513 141 24 1,142
Underlying EBIT(b) 5,636 5,033 11,109 424 (522) 21,680
Net finance costs(c) (1,149)
Exceptional items(d) 297
Profit before taxation 20,828
Capital expenditure 7,675 3,891 5,979 3,136 423 21,104
Investments accounted for using the equity
method(e) 130 1,351 1,044 1,150 - 3,675
Total assets(e) 44,383 22,214 25,877 13,589 33,115 139,178
Total liabilities(e) 6,858 2,346 3,751 2,957 47,975 63,887
(a) Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from
unallocated operations described in footnote f.
(b) Underlying EBIT is earnings before net finance costs, taxation expense, discontinued operations and any exceptional items.
Underlying EBIT is reported net of the Group’s share of net finance costs and taxation expense of equity accounted investments.
Underlying EBITDA is Underlying EBIT before depreciation, impairments and amortisation.
(c) Refer to note 4 Net finance costs.
(d) Refer to note 2 Exceptional items.
(e) Total segment assets and liabilities of Businesses represents operating assets net of operating liabilities including the carrying amount
of equity accounted investments and predominantly excludes cash balances, interest bearing liabilities and deferred tax balances. The
carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity
accounted investments, with no adjustment for any cash balances, interest bearing liabilities and deferred tax balances of the equity
accounted investment.
(f) Includes other unallocated operations including Nickel West (previously disclosed in the former Aluminium, Manganese and Nickel
Business) and consolidation adjustments. Total assets, total liabilities and investments accounted for using the equity method include
discontinued operation balances for the year ended 30 June 2014 and for the year ended 30 June 2013.
2. Exceptional items
Exceptional items are those items where their nature and amount is considered material to the financial
statements. Such items included within the Group’s profit for the year from continuing operations are detailed
below and exceptional items attributable to discontinued operations are detailed in note 6 Discontinued
operations.
Year ended 30 June 2015 Gross Tax Net
US$M US$M US$M
Exceptional items by category
Impairment of Onshore US assets (2,787) 829 (1,958)
Impairment of Nickel West assets (409) 119 (290)
Repeal of Minerals Resource Rent Tax legislation(a) – (698) (698)
(3,196) 250 (2,946)
(a) Includes amounts attributable to non-controlling interests of US$(12) million.
Impairment of Onshore US assets
The Group recognised an impairment charge of US$1,958 million (after tax benefit) in relation to its Onshore US
assets. The gas focused Hawkville field accounts for the substantial majority of this charge reflecting its geological
complexity, product mix, acreage relinquishments and amended development plans. The remainder
relates to the impairment of goodwill associated with the Petrohawk acquisition.
Impairment of Nickel West assets
On 12 November 2014, the Group announced that the review of its Nickel West business was complete and the
preferred option, the sale of the business, was not achieved on an acceptable basis. As a result of operational
decisions made subsequent to the conclusion of this process, an impairment charge of US$290 million (after tax
benefit) was recognised in the year ended 30 June 2015.
Repeal of Minerals Resource Rent Tax legislation
The legislation to repeal the Minerals Resource Rent Tax (MRRT) in Australia took effect on 30 September 2014.
As a result, the Group derecognised a MRRT deferred tax asset of US$809 million and corresponding taxation
charges of US$698 million related to continuing operations and US$111 million related to discontinued operations
(refer note 6) were recognised in the year ended 30 June 2015.
Year ended 30 June 2014 Gross Tax Net
US$M US$M US$M
Exceptional items by category
Sale of Pinto Valley 551 (166) 385
551 (166) 385
Sale of Pinto Valley
On 11 October 2013, the Group announced it had completed the sale of its Pinto Valley mining operation for cash
consideration of US$653 million, after working capital adjustments. A gain on sale of US$385 million (after tax
expense) was recognised in the year ended 30 June 2014.
Year ended 30 June 2013 Gross Tax Net
US$M US$M US$M
Exceptional items by category
Sale of Yeelirrie uranium deposit 420 - 420
Sale of Richards Bay Minerals 1,212 (183) 1,029
Sale of diamonds business (97) (42) (139)
Sale of East and West Browse Joint Ventures 1,539 (188) 1,351
Impairment of Nickel West assets (1,698) 454 (1,244)
Impairment of Permian Basin assets (266) 99 (167)
Other impairments arising from capital project review (971) 291 (680)
Newcastle steelworks rehabilitation 158 (47) 111
297 384 681
Sale of Yeelirrie uranium deposit
On 27 August 2012, the Group announced the sale of its wholly owned Yeelirrie uranium deposit and the
transaction was completed on 19 December 2012. A gain on sale of US$420 million was recognised in the year
ended 30 June 2013, while the associated tax expense was offset by the recognition of deferred tax benefits on
available tax losses of US$126 million.
Sale of Richards Bay Minerals
On 7 September 2012, the Group announced it had completed the sale of its 37.76 per cent effective interest in
Richards Bay Minerals. A gain on sale of US$1,029 million (after tax expense) was recognised in the year ended
30 June 2013.
Sale of diamonds business
On 13 November 2012, the Group announced the sale of its diamonds business, comprising its interests in the
EKATI Diamond Mine and Diamond Marketing operations. The transaction was completed on 10 April 2013 for
an aggregate cash consideration of US$553 million (after adjustments). An impairment charge of US$139 million
(after tax expense) was recognised based on the final consideration.
Sale of East and West Browse Joint Ventures
On 12 December 2012, the Group signed a definitive agreement to sell its 8.33 per cent interest in the East
Browse Joint Venture and 20 per cent interest in the West Browse Joint Venture. A gain on sale of US$1,539
million was recognised in the year ended 30 June 2013. The associated tax expense of US$462 million was
partly offset by the recognition of deferred tax benefits on available tax losses of US$241 million and the
derecognition of deferred tax liabilities of US$33 million. The transaction was completed on 7 June 2013.
Impairment of Nickel West assets
As a result of expected continued strength in the Australian dollar and weak nickel prices, the Group recognised
an impairment charge of US$1,244 million (after tax benefit) in the year ended 30 June 2013.
Impairment of Permian Basin assets
An impairment charge of US$167 million (after tax benefit) was recognised as the performance of specific
evaluation wells in certain areas of the Permian Basin (US) do not support economic development.
Other impairments arising from capital project review
In the year ended 30 June 2013, WAIO refocused its attention on the capital-efficient expansion opportunity that
exists within the Port Hedland inner harbour and all early works associated with the outer harbour development
option were suspended. This revision to the WAIO development sequence and the change in status of other
minor capital projects across the Group has resulted in the recognition of impairment charges of US$604 million
(after tax benefit) and other restructuring costs of US$76 million (after tax benefit) in the year ended 30 June
2013.
Newcastle steelworks rehabilitation
The Group recognised a decrease of US$158 million (before tax expense) to its rehabilitation obligations in
respect of former operations at the Newcastle steelworks (Australia). This followed the completion of the Hunter
River Remediation Project and reaching agreement with the Environment Protection Authority in March 2013
regarding the necessary scope of work to repeal the Environmental Classification at Steel River.
3. Interests in associates and joint venture entities
Major shareholdings in associates Ownership interest at BHP Billiton Group Share of operating profit of equity
and joint venture entities reporting date(a) accounted investments
30 June 30 June 30 June Year ended Year ended Year ended
2015 2014 2013 30 June 2015 30 June 2014 30 June 2013
% % % US$M US$M US$M
Carbones del Cerrejon LLC 33.33 33.33 33.33 (20) 115 117
Compañia Minera Antamina SA 33.75 33.75 33.75 229 476 531
Samarco Mineração SA 50 50 50 371 607 513
Other(b) (32) (13) (19)
Total 548 1,185 1,142
(a) The ownership interest at the Group’s and the associates and joint venture entities’ reporting dates are the same. When the annual
financial reporting date is different to the Group’s, financial information is obtained as at 30 June in order to report on a basis
consistent with the Group’s reporting date.
(b) Includes the Group’s effective interest in the Newcastle Coal Infrastructure Group Pty Limited (ownership interest 35.5 per cent; 30
June 2014: 35.5 per cent; 30 June 2013: 35.5 per cent) and other immaterial equity accounted investments.
4. Net finance costs
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Financial expenses
Interest on bank loans and overdrafts 9 11 12
Interest on all other borrowings(a) 517 657 954
Finance lease and hire purchase interest 25 19 7
Discounting on provisions and other liabilities 333 338 335
Net interest expense on post-retirement employee
benefits 15 11 7
Interest capitalised(b) (148) (182) (290)
Fair value change on hedged loans 372 328 (505)
Fair value change on hedging derivatives (358) (292) 489
Fair value change on non-hedging derivatives(c) – 101 183
Exchange variations on net debt(d) (63) 4 37
702 995 1,229
Financial income
Interest income (88) (81) (80)
(88) (81) (80)
Net finance costs 614 914 1,149
(a) Interest on all other borrowings in the year ended 30 June 2015 includes net interest income of US$67 million (30 June 2014: expense
of US$116 million; 30 June 2013: expense of US$172 million) with respect to Petrohawk Senior Notes, which included gains of US$80
million on the early redemption of notes in August 2014 (30 June 2014: gains of US$24 million on the early redemption of notes in
February 2014; 30 June 2013: nil).
(b) Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or,
where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. For the
year ended 30 June 2015, the capitalisation rate was 1.94 per cent (30 June 2014: 1.82 per cent; 30 June 2013: 2.24 per cent).
(c) Fair value change on non-hedging derivatives in the year ended 30 June 2014 includes unrealised fair value changes of US$101
million on non-hedging derivatives used to manage interest rate risk (30 June 2013: US$183 million). No such derivatives existed in
the current period.
(d) Exchange variations on net debt in year ended 30 June 2015 predominantly comprises revaluations of US$109 million on non-USD
finance leases (30 June 2014: US$24 million; 30 June 2013: nil).
5. Taxation
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Taxation expense attributed to geographical jurisdiction:
UK taxation (benefit)/expense (38) (43) 83
Australian taxation expense 3,548 4,712 4,394
Overseas taxation expense 156 2,111 2,219
Total taxation expense(a) 3,666 6,780 6,696
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Total taxation expense comprises:
Income tax expense
Income tax expense 2,762 6,266 5,646
2,762 6,266 5,646
Total royalty-related taxation (net of income tax benefit)(b)
Minerals Resource Rent Tax expense/(benefit) 463 (198) 179
Other royalty-related taxation expense 441 712 871
904 514 1,050
Total taxation expense 3,666 6,780 6,696
(a) Total taxation expense including royalty-related taxation, exceptional items and exchange rate movements, was US$3,666 million,
representing an effective tax rate of 45.5 per cent (30 June 2014: 31.2 per cent; 30 June 2013: 32.1 per cent). Exchange rate
movements increased taxation expense by US$339 million, representing an increase in the effective tax rate of 4.2 per cent (30 June
2014: decrease of US$34 million and 0.2 per cent; 30 June 2013: increase of US$134 million and 0.6 per cent). Exceptional items, as
described in note 2, decreased taxation expense by US$250 million (30 June 2014: increase of US$166 million; 30 June 2013:
decrease of US$384 million).
(b) Government imposed royalty arrangements calculated by reference to profits, including MRRT, are reported as royalty-related
taxation. Total royalty-related taxation contributed to taxation expense of US$904 million resulting in an increase in the effective tax
rate of 11.2 per cent (30 June 2014: contribution of US$514 million and 2.4 per cent; 30 June 2013: contribution of US$1,050 million
and 5.0 per cent). The MRRT contributed to taxation expense of US$463 million in the period (30 June 2014: reduction of US$198
million; 30 June 2013: contribution of US$179 million). This included an exceptional item of US$698 million tax expense for the
derecognition of deferred tax assets upon the repeal of the MRRT legislation in Australia (30 June 2014: nil; 30 June 2013: nil). Refer
to note 2.
6. Discontinued operations
On 25 May 2015 the Group announced that it completed the demerger of a selection of its aluminium, coal,
manganese, nickel and silver assets to create an independent metals and mining company, South32(a). This
included BHP Billiton’s interests in its integrated Aluminium business, Manganese business and the Cerro
Matoso nickel operation, Energy Coal South Africa, Illawarra metallurgical coal and the Cannington silver-lead-
zinc mine.
The contribution of discontinued operations included within the Group’s profit until the loss of control is detailed
below.
Income statement – discontinued operations
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Revenue
Group production 7,007 9,182 10,430
Third party products 624 1,262 1,663
Revenue 7,631 10,444 12,093
Other income 225 299 143
Expenses excluding net finance costs (6,582) (9,990) (13,211)
Share of operating profit of equity accounted investments (24) 10 –
Profit/(loss) from operations 1,250 763 (975)
Comprising:
Group production 1,213 734 (1,038)
Third party products 37 29 63
1,250 763 (975)
Financial expenses (74) (278) (155)
Financial income 26 16 28
Net finance costs (48) (262) (127)
Profit/(loss) before taxation 1,202 501 (1,102)
Income tax expense (464) (272) (68)
Royalty-related taxation (net of income tax benefit) (96) 40 (142)
Total taxation expense (560) (232) (210)
Profit/(loss) after taxation from operating activities 642 269 (1,312)
Net loss on demerger of South32 after taxation (2,154) – –
(Loss)/profit after taxation (1,512) 269 (1,312)
Attributable to non-controlling interests 61 85 163
Attributable to members of BHP Billiton Group (1,573) 184 (1,475)
Basic (loss)/earnings per ordinary share (US cents) (29.6) 3.5 (27.7)
Diluted (loss)/earnings per ordinary share (US cents) (29.5) 3.4 (27.6)
The total comprehensive income attributable to members of BHP Billiton Group from discontinued operations was
a loss of US$1,685 million (2014: profit of US$164 million, 2013: loss of US$1,569 million).
(a) The legal entities that were demerged are disclosed in section 15.12 of the ASX Information Memorandum released to the exchanges on 17 March 2015.
Cash flows from discontinued operations
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Net operating cash flows 1,502 1,724 1,137
Net investing cash flows (1,066) (700) (1,105)
Net financing cash flows (203) (32) (148)
Net increase/(decrease) in cash and cash equivalents from
discontinued operations 233 992 (116)
Cash disposed of on demerger of South32 (586) – –
Net (decrease)/increase in cash and cash equivalents (353) 992 (116)
Loss on demerger of discontinued operations
Details of the net loss on demerger are described below:
2015
US$M
Assets
Cash and cash equivalents 586
Trade and other receivables 1,198
Other financial assets 470
Investments accounted for using the equity method 1,643
Inventories 1,073
Property, plant and equipment 9,622
Intangible assets 328
Deferred tax assets 142
Others 66
Total assets 15,128
Liabilities
Trade and other payables 811
Interest bearing liabilities 1,085
Provisions 1,916
Others 6
Total liabilities 3,818
Net assets demerged 11,310
Less non-controlling interest share of net liabilities disposed 1
BHP Billiton share of net assets demerged 11,311
Fair value of South32 shares - in specie dividend 9,445
Reclassification of financial asset and foreign currency translation reserves of South32 to income statement 71
Loss on demerger (1,795)
Transaction costs (586)
Loss on demerger net of transaction costs before taxation (2,381)
Income tax benefit 62
Loss on demerger net of transaction costs after taxation (2,319)
Gain on loss of control of Manganese business 2,146
Impairment of South32 assets upon classification as held for distribution (after tax benefit) (1,749)
Derecognition of deferred tax assets (232)
Net loss on demerger of South32 (2,154)
Exceptional Items – discontinued operations
Exceptional items are those items where their nature and amount is considered material to the financial
statements. Items related to discontinued operations included within the Group’s profit are detailed below.
Year ended 30 June 2015 Gross Tax Net
US$M US$M US$M
Gain on loss of control of Manganese business 2,146 – 2,146
Impairment of South32 assets upon classification as held for distribution (1,897) 148 (1,749)
Loss on demerger net of transaction costs (2,381) 62 (2,319)
Derecognition of deferred tax assets – (232) (232)
Repeal of Minerals Resource Rent Tax legislation – (111) (111)
(2,132) (133) (2,265)
Gain on loss of control of Manganese business
In contemplation of the demerger, BHP Billiton and Anglo American agreed to make certain changes to the
agreement which governs their interests in the Manganese business. The changes resulted in BHP Billiton and
Anglo American agreeing to share joint control of the Manganese business. On 2 March 2015, BHP Billiton
ceased consolidation of the Manganese business and accounted for its 60 per cent interest as an equity
accounted joint venture. The remeasurement at fair value at that date gave rise to a gain of US$2,146 million.
There were no tax consequences arising from the remeasurement of the Manganese business.
Impairment of South32 assets upon classification as held for distribution
As the fair value of South32 shares, determined by reference to the Australian Securities Exchange volume
weighted average price over the first five days of trading, was less than the book value of the assets distributed, the
Group considered whether any of the assets within South32 were impaired at the time they became held for
distribution. The Group recognised an impairment of US$1,358 million (after tax benefit) for its Manganese
business due to the fall in the price of Manganese and an impairment of US$391 million (after tax benefit) at the
Wolvekrans Middelburg complex (WMC) within Energy Coal South Africa due to a decline in export prices and a
new rail agreement negatively impacting volumes.
Loss on demerger net of transaction costs
The Group recognised the demerger in the financial statements as a dividend, reducing retained earnings by the
fair value of South32’s shares. The US$1,795 million loss on demerger is the difference between the fair value of
South32’s shares and the book value of the assets distributed and the reclassification of reserves relating to
South32 to the income statement. Transaction costs of US$524 million (after tax benefit) comprised stamp duty,
professional fees and separation and establishment costs.
Derecognition of deferred tax assets
The Group derecognised deferred tax assets as a result of internal structuring transactions of South32 assets into
the demerged entity.
Repeal of Minerals Resource Rent Tax legislation
The legislation to repeal the Minerals Resource Rent Tax (MRRT) in Australia took effect on 30 September 2014.
As a result, the Group derecognised an MRRT deferred tax asset (net of income tax consequences) of which
US$111 million related to South32 assets. A corresponding taxation charge of US$111 million was recognised in
the period.
There were no exceptional items related to discontinued operations for the year ended 30 June 2014.
Items related to discontinued operations included within the Group’s profit for the year ended 30 June 2013 are
detailed below.
Gross Tax Net
Year ended 30 June 2013 US$M US$M US$M
Impairment of Worsley assets (2,190) 559 (1,631)
Other impairments (35) – (35)
(2,225) 559 (1,666)
Impairment of Worsley assets
The Group recognised an impairment of assets at Worsley as a result of expected continued strength in the
Australian dollar and weak alumina prices. A total impairment charge of US$1,631 million (after tax benefit) was
recognised in the year ended 30 June 2013.
Other impairments
The Group reviewed the status of a minor capital project at the Cerro Matoso nickel operation which resulted in
the recognition of impairment charges of US$35 million (after tax benefit) in the year ended 30 June 2013.
7. Earnings per share
Year ended 30 June 2015 Continuing Discontinued Total
operations operations
Basic earnings/(loss) per ordinary share (US cents) 65.5 (29.6) 35.9
Diluted earnings/(loss) per ordinary share (US cents) 65.3 (29.5) 35.8
Basic earnings/(loss) per American Depositary Share (ADS) (US cents)(a) 131.0 (59.2) 71.8
Diluted earnings/(loss) per American Depositary Share (ADS) (US cents)(a) 130.6 (59.0) 71.6
Basic earnings/(loss) (US$M) 3,483 (1,573) 1,910
Diluted earnings/(loss) (US$M) 3,483 (1,573) 1,910
Year ended 30 June 2014 Continuing Discontinued Total
operations operations
Basic earnings per ordinary share (US cents) 256.5 3.5 260.0
Diluted earnings per ordinary share (US cents) 255.7 3.4 259.1
Basic earnings per American Depositary Share (ADS) (US cents)(a) 513.0 7.0 520.0
Diluted earnings per American Depositary Share (ADS) (US cents)(a) 511.4 6.8 518.2
Basic earnings (US$M) 13,648 184 13,832
Diluted earnings (US$M) 13,648 184 13,832
Year ended 30 June 2013 Continuing Discontinued Total
operations operations
Basic earnings/(loss) per ordinary share (US cents) 238.6 (27.7) 210.9
Diluted earnings/(loss) per ordinary share (US cents) 237.8 (27.6) 210.2
Basic earnings/(loss) per American Depositary Share (ADS) (US cents)(a) 477.2 (55.4) 421.8
Diluted earnings/(loss) per American Depositary Share (ADS) (US cents)(a) 475.6 (55.2) 420.4
Basic earnings/(loss) (US$M) 12,698 (1,475) 11,223
Diluted earnings/(loss) (US$M) 12,698 (1,475) 11,223
The weighted average number of shares used for the purposes of calculating diluted earnings per share
reconciles to the number used to calculate basic earnings per share as follows:
Year
ended
30 June Year ended Year ended
2015 30 June 2014 30 June
Million Million 2013 Million
Weighted average number of shares
Basic earnings per ordinary share denominator(b) 5,318 5,321 5,322
Shares and options contingently issuable under employee share ownership
plans(c) 15 17 18
Diluted earnings per ordinary share denominator(d) 5,333 5,338 5,340
(a) Each American Depositary Share represents two ordinary shares.
(b) The calculation of the number of ordinary shares used in the computation of basic earnings per share is the aggregate of the weighted
average number of ordinary shares of BHP Billiton Limited and BHP Billiton Plc outstanding during the period after deduction of the
number of shares held by the Billiton Employee Share Ownership Plan Trust and the BHP Billiton Limited Employee Equity Trust.
(c) Included in the calculation of fully diluted earnings per share are shares contingently issuable under Employee Share Ownership
Plans.
(d) Diluted earnings per share calculation excludes 160,116 of instruments (2014: 183,181; 2013: 357,498) which are considered
antidilutive.
8. Dividends
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US$M US$M US$M
Dividends paid/payable during the period
BHP Billiton Limited 3,983 3,793 3,662
BHP Billiton Plc – Ordinary shares 2,613 2,483 2,404
– Preference shares(a) – – –
6,596 6,276 6,066
Dividends determined in respect of the period
BHP Billiton Limited 3,982 3,887 3,721
BHP Billiton Plc – Ordinary shares 2,617 2,555 2,446
– Preference shares(a) – – –
6,599 6,442 6,167
Year ended Year ended Year ended
30 June 2015 30 June 2014 30 June 2013
US cents US cents US cents
Dividends paid during the period (per share)
Prior year final dividend 62.0 59.0 57.0
Interim dividend 62.0 59.0 57.0
124.0 118.0 114.0
Dividends determined in respect of the period (per share)
Interim dividend 62.0 59.0 57.0
Final dividend 62.0 62.0 59.0
124.0 121.0 116.0
Dividends are determined after period end in the announcement of the results for the period. Interim dividends
are determined in February and paid in March. Final dividends are determined in August and paid in September.
Dividends determined are not recorded as a liability at the end of the period to which they relate. Subsequent to
year-end, on 25 August 2015, BHP Billiton determined a final dividend of 62.0 US cents per share (US$3,301
million), which will be paid on 29 September 2015 (30 June 2014: final dividend of 62.0 US cents per share –
US$3,301 million; 30 June 2013: final dividend of 59.0 US cents per share – US$3,147 million).
Each American Depositary Share (ADS) represents two ordinary shares of BHP Billiton Limited or BHP Billiton
Plc. Dividends determined on each ADS represent twice the dividend determined on BHP Billiton ordinary shares.
BHP Billiton Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per
cent.
2015 2014 2013
US$M US$M US$M
Franking credits as at 30 June 11,295 13,419 10,516
Franking (debits)/credits arising from the (refund)/payment of current tax (428) (29) 824
Total franking credits available (b) 10,867 13,390 11,340
(a) 5.5 per cent dividend on 50,000 preference shares of £1 each determined and paid annually (30 June 2014: 5.5 per cent; 30 June
2013: 5.5 per cent.
(b) The payment of the final 2015 dividend determined after 30 June 2015 will reduce the franking account balance by US$853 million.
9. Subsequent events
Other than the matters outlined elsewhere in this financial information, no matters or circumstances have arisen
since the end of the year that have significantly affected, or may significantly affect, the operations, results of
operations or state of affairs of the Group in subsequent accounting periods.
Reserves and Resources Update
Major reserves and resources changes
Petroleum reserves
BHP Billiton has confirmed a 535 MMboe decrease in proved oil, NGL and gas reserves in our Petroleum
business, comprising 261 MMboe of production and 274 MMboe of other movements, to 1,908 MMboe as at 30
June 2015. The following table describes the approximate impact of the principal factors that affected the
reserves during the 2015 financial year.
MMboe
Proved oil, NGL and gas reserves as at 30 June 2014 2,443
Production of 261 MMboe, including 5 MMboe of fuel (261)
Other movements – Australia 62
Other movements - United States (344)
Other movements - Other regions(i) 8
Proved oil, NGL and gas reserves as at 30 June 2015 1,908
(i) Other regions comprise Algeria, Pakistan, Trinidad/Tobago and UK.
The increase in Australia reserves primarily reflects better than expected performance and new project additions.
The decline in United States reserves primarily reflects the transfer of Onshore US reserves from proved to other
non-proven categories, as required by the US Securities and Exchange Commission (SEC) regulations. This
reflects lower commodity prices and the associated deferral of development activity in Onshore US,
predominantly in our gas-rich Hawkville, Haynesville and Fayetteville fields. Under SEC regulatory definitions, the
prescribed development timeframe for proved undeveloped reserves is five years.
Petroleum’s reserves are as of 30 June 2015 and have been estimated with deterministic methodology, with the exception of the North West Shelf gas
operation in Australia where probabilistic methodology has been utilised to estimate and aggregate reserves for the reservoirs dedicated to the gas project
only. The probabilistic based portion of these reserves totals 38 MMboe (total boe conversion is based on the following: 6,000 scf of natural gas equals 1
boe) and represents approximately two per cent of our total reported proved reserves. Aggregation of proved reserves beyond the field/project level has
been performed by arithmetic summation. Due to portfolio effects, aggregates of proved reserves may be conservative. The custody transfer point(s) or
point(s) of sale applicable for each field or project are the reference point for reserves.
The Petroleum Reserves Group (PRG) is a dedicated group that provides oversight of the reserves’ assessment and reporting processes. The manager of
the PRG, Abhijit Gadgil, is a full-time employee of BHP Billiton and is the individual responsible for overseeing and supervising the preparation of the
reserve estimates and compiling the information for inclusion in this Annual Report. He has an advanced degree in engineering and more than 30 years of
diversified industry experience in reservoir engineering, reserves assessment, field development and technical management and is a 30-year member of
the Society of Petroleum Engineers (SPE). He has also served on the Society of Petroleum Engineers Oil and Gas Reserves Committee. Mr Gadgil has the
qualifications and experience required to act as a qualified petroleum reserves evaluator under the Australian Securities Exchange (ASX) Listing Rules. The
estimates of petroleum reserves are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr Gadgil
and he has reviewed and agrees with the reserves information included herein and has given his prior written consent for its publication. No part of the
individual compensation for members of the PRG is dependent on reported reserves.
Escondida reserves
BHP Billiton has confirmed an 11 per cent increase in the Ore Reserves at Escondida (after mining depletion),
compared to the previous estimate as at 30 June 2014 (Table 2). The increase reflects the inclusion of 90 km of
infill drilling that has improved the geological confidence and therefore the conversion of Mineral Resources to
Ore Reserves. Whilst this includes conversion from Probable Reserves to Proved Reserves, it also incorporates
new Probable Reserves due to reclassification from Inferred Resources to Indicated Resources. The Ore
Reserves increase was further supported by the copper commodity price protocol used in the Life of Asset plan.
Additional information pertaining to the increase in Ore Reserves is contained in Appendix 1.
The Escondida Mineral Resources and Ore Reserves include the Escondida and Escondida Norte deposits that
jointly provide ore feed to a concentrator and heap leach processing complex. These neighbouring deposits are
centred on Eocene-aged feldspar porphyry bodies intruded into Palaeozoic and Mesozoic rhyolite and andesite
volcanic units. Vertically extensive hypogene mineralisation (chalcopyrite with or without bornite) has been
overprinted by sub-horizontal high-grade supergene enrichment (chalcocite with or without covellite). Oxidised
brochantite with or without chalcocite occurs above the supergene enrichment zone.
The process for estimating the Mineral Resources is mature and the estimates are updated annually. The most
recent estimates are based on a total of approximately 2,400 km of drilling in 7,600 holes. Core samples are
hydraulically split and RC chips are riffle split. Samples are crushed to 90 per cent minus 10 mesh and pulverised
to 95 per cent minus 150 mesh. Pulps (200 grams) are analysed by 3-acid digestion for total copper, iron and
arsenic with Atomic Absorption Spectrometry (AAS). Acid soluble copper is analysed by sulphuric acid digestion
and measured by AAS.
Resource estimation is performed by ordinary kriging using search criteria consistent with a geostatistical model
developed individually for a number of constituents according to the appropriate geological controls. Mineral
Resources are classified using an uncertainty model based on conditional simulation models that consider the
spatial distribution and density of drill holes, the geological framework and copper grade continuity.
Long term mine planning and reserves definition is performed on an annual basis using the updated resources
model as part of the planning cycle. The mine planning process is consistent year to year, but includes updated
operational parameters as well as revised costs and commodity prices as defined by BHP Billiton.
Proprietary software is used to define the optimal economic extraction sequence by evaluating the resource
models and incorporating economic parameters and geotechnical constraints to generate a series of nested pits
modified from the Lerchs-Grossman algorithm. Net Present Value (NPV) optimal pushback (or mining phase)
designs are developed by incorporating mine operational aspects, plant capacity, loading equipment and ore
exposure in order to produce an optimised mining production plan. The selection and design options take into
account both mines, and are based on the optimal economic sequence according to operational restrictions.
Ore Reserves classification is derived from the Mineral Resources classification, along with consideration of
modifying factors. Key modifying factors, specifically those associated with Escondida’s processing alternatives
such as metallurgical recovery and plant throughput, are estimated within the resource block model and
employed in the mine planning process. Approximate drill hole spacings, which are indicative of reserve
classification and are calculated from the Ore Reserves model, are presented in Table 1.
Table 1: Nominal drill grid spacing for Ore Reserves classification
Classification Oxide Sulphide Sulphide Leach
Proved (average) 30 x 30 m 50 x 50 m 60 x 60 m
Probable (average) 45 x 45 m 90 x 90 m 115 x 115 m
The cut-off grade used to differentiate waste from mineralisation is 0.30 per cent total copper for the Sulphide and
Sulphide Leach reserves whereas the Oxide reserves are reported above 0.20 per cent acid soluble copper.
These cut-off grades are based on break-even economic analysis and assume open-pit extraction and
concentrator, Run Of Mine (ROM) or heap leach processing alternatives as per the current operation.
Escondida operates two open pits with 15 m bench heights that jointly provide ore feed to concentrator plants and
heap leach pads. The operation is a conventional shovel-truck combination with a selective mining unit of
25 m x 25 m x 15 m. Geological dilution is considered to be incorporated into the resource estimate via the block
model. The fleet size is estimated based on the optimal production levels to maximise the NPV given the existing
infrastructure and geotechnical parameters.
Copper in sulphide mineralisation is recovered through two existing processing options: high grade is treated by
conventional flotation and concentration while lower grade is treated by a run of mine bio-leaching and
subsequent solvent extraction (SX) and electrowinning (EW). Copper in oxide mineralisation is recovered through
the existing acid leaching-SX-EW process plant. Metallurgical recoveries are estimated on a block by block basis
using geostatistical techniques to interpolate laboratory test values derived from drill hole samples and are
calibrated with operational data. Studies and operational experience both indicate that there are no deleterious
elements within the ore mineralogy which pose significant risk to the processing, recovery and saleability of the
product.
Table 2: Ore Reserves as at 30 June 2015 in 100% terms – reported in compliance with the ASX Listing Rules 2012(i)
As at 30 June 2015 As at 30 June 2014
BHP
Total Reserve Total Reserve Billiton
Deposit Ore Type Proved Reserves Probable Reserves Reserves Life(ii) Reserves Life(ii) Interest
Copper Mt %TCu Mt %TCu Mt %TCu years Mt %TCu years %
Escondida(iii) Oxide 105 0.81 42 0.63 147 0.76 54 145 0.80 52 57.5
Sulphide 3,720 0.73 1,890 0.56 5,610 0.67 5,150 0.70
Sulphide Leach 1,880 0.46 770 0.41 2,640 0.45 2,260 0.44
(i) Competent Person – A. Zuzunaga (MAusIMM).
The statement of Ore Reserves is presented on a 100 per cent basis, represents an estimate as at 30 June 2015, and is based on
information compiled by the above named Competent Person. Mr. Zuzunaga is a full time employee of Minera Escondida Ltda., is a
member of The Australasian Institute of Mining and Metallurgy, and has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity he is undertaking to qualify as Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Zuzunaga consents
to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(ii) Inherent within the Reserve Life calculation were Oxide and Sulphide Leach which have a Reserve Life of 11 and 51 years
respectively.
(iii) Tonnes and grade information has been rounded, hence small differences may be present in the totals.
Additional information is contained in Appendix 1.
Western Australia Iron Ore resources
BHP Billiton has confirmed a 15 per cent increase in the Mineral Resources at WAIO (after mining depletion)
compared to the previous estimate as at 30 June 2014 (Table 4). The increase, of which 83 per cent is Brockman
ore and 17 per cent is Marra Mamba ore, reflects the inclusion of 500 km of infill drilling which informed revised
resource estimates and maiden resources. The maiden resource estimates have contributed 92 per cent of the
increase, predominantly within the Inferred classification. BHP Billiton ownership averages 89 per cent but varies
between 85 per cent and 100 per cent. Information pertaining to the orebodies that contribute to the increase in
Mineral Resource is contained in Appendix 2.
WAIO is located within the Pilbara region of Western Australia. The geology of the region, comprising the
Hamersley and North East Pilbara Provinces, has been extensively studied and is well documented based on
mapping, exploratory drilling and mining. The Hamersley Group forms the central part of the Mt Bruce
Supergroup and contains two iron bearing stratigraphic sequences, with major bedded ores hosted by the
Brockman Iron Formation and Marra Mamba Iron Formation. The Nimingarra Iron Formation in the North East
Pilbara hosts the Yarrie-Nimingarra iron ore deposits. Another important iron bearing sequence is the Marillana
Formation which is a detrital derived Channel Iron Deposit currently mined at Yandi.
WAIO Mineral Resources contain the ore types: Brockman (BKM), Channel Iron Deposits (CID), Marra Mamba
(MM) and Nimingarra (NIM).
Mineral Resource estimates are largely based upon three metre composite samples obtained from 140 millimetre
Reverse Circulation (RC) drill holes and to a lesser extent 0.3 metre to three metre samples obtained from HQ3
and PQ3 type Diamond Drill holes and three metre samples obtained from 140 millimetre open Percussion holes.
RC and Percussion samples are either riffle or static cone split whereas diamond core is typically sampled as a
whole. Samples are crushed to 90 per cent minus 2.8 millimetres and then pulverised to 95 per cent minus 0.16
millimetres. Pulp (200 grams) is then used for chemical analysis by X-Ray Fluorescence (XRF) for Fe, SiO2,
Al2O3, P, MnO, CaO, K2O, MgO, S and TiO2 and Robotic Thermo-Gravimetric Analysis (ROBTGA) for Loss on
Ignition (LOI).
Resource estimation is typically performed by Ordinary Kriging (OK) interpolation which uses search criteria
consistent with geostatistical models separately developed for both Fe and associated deleterious elements such
as SiO2, Al2O3 and P according to the appropriate geological controls. To a lesser extent some deposits
contributing to Inferred Resources have been estimated using Inverse Distance Weighted (IDW) interpolation or
Cross Sectional Area of Influence techniques reflecting data density.
Mineral Resources have been classified considering data density, data quality, geological continuity and/or
complexity, estimation quality, weathering zones and proximity to the water table (Table 3).
Table 3. Nominal drill grid spacing for WAIO Mineral Resources category
Classification BKM CID MM NIM
Measured (average) 50x50 metres 50x50 metres 50x50 metres 30x30 metres
Indicated (average) 150x50 metres 150x50 metres 150x50 metres 120x60 metres
Inferred (maximum) 1200x100 metres 1200x100 metres 1200x100 metres 1200x120 metres
Typically, a 54 per cent Fe cut-off is used for resource reporting of Marra Mamba and Brockman Iron Formations,
a 52 per cent Fe cut-off is used for Channel Iron Deposits and a 50 or 55 per cent Fe cut-off for deposits within
the Nimingarra Formation. These cut-offs employed for the Pilbara Mineral Resources estimates are based on
break-even economic analysis and assumed open pit extraction and processing by crushing and screening. It is
reasonable to consider that all material above the Mineral Resource cut-off grade would be eligible for sale, either
now or in the future as indicated by WAIO strategic mine planning.
Table 4. Mineral Resources (inclusive of Ore Reserves) as at June 30 2015 in 100% terms – reported in compliance
with the 2012 ASX Listing Rules(i)
As at 30 June 2015 As at 30 June 2014
BHP
Billiton
Measured Resources Indicated Resources Inferred Resources Total Resources Total Resources interest
Commodity Ore % % % % % % % % % % % % % % % % % % % % % % % % % %
Deposit type Mt Fe P SiO2 Al2O3 LOI Mt Fe P SiO2 Al2O3 LOI Mt Fe P SiO2 Al2O3 LOI Mt Fe P SiO2 Al2O3 LOI Mt Fe P SiO2 Al2O3 LOI
Iron Ore
WAIO BKM 1,300 62.4 0.12 3.6 2.3 4.2 4,600 60.0 0.14 4.8 2.5 6.1 12,000 59.2 0.14 5.4 2.7 6.5 18,000 59.6 0.14 5.1 2.6 6.2 15,000 59.5 0.14 5.1 2.7 6.3 89
CID 930 56.2 0.05 6.3 1.9 10.8 360 56.4 0.06 6.3 2.3 10.3 950 54.8 0.06 6.8 2.9 11.1 2,200 55.6 0.05 6.5 2.4 10.9 2,200 55.8 0.05 6.4 2.3 10.8
MM 420 61.9 0.07 3.1 1.8 6.0 880 60.6 0.06 3.9 2.1 6.7 5,700 59.8 0.07 4.4 2.3 7.1 7,000 60.0 0.07 4.3 2.2 7.0 6,400 59.9 0.07 4.3 2.2 7.0
NIM 10 59.0 0.08 10.1 1.2 3.9 120 61.6 0.06 8.0 1.1 1.7 70 60.5 0.05 9.9 1.2 1.7 200 61.1 0.06 8.8 1.2 1.8 200 61.1 0.06 8.8 1.2 1.8
(i) Competent Persons – P. Whitehouse (MAusIMM), M. Lowry (MAusIMM), M. Smith (MAusIMM), S. Whittaker (MAusIMM), R. Stimson
(MAusIMM).
The statement of Mineral Resources is presented on a 100 per cent basis, represents an estimate as at 30 June 2015, and is based
on information compiled by the above named Competent Persons. Mr. Whitehouse, Mr. Lowry, Mr. Smith, Mr. Whittaker and Mr.
Stimson are full time employees of BHP Billiton Iron Ore Ltd, are members of The Australasian Institute of Mining and Metallurgy
(AusIMM) and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the
activity they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whitehouse, Mr. Lowry, Mr. Smith, Mr. Whittaker and Mr. Stimson
consent to the inclusion in the report of the matters based on their information in the form and context in which it appear.
Additional information is contained in Appendix 2.
Date: 25/08/2015 08:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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