Wednesday 28 th , April 2010

1. Wednesday 28th, April 2010 Naguib TOIHIRI – UG4 – UB1 English Course – Oral presentation ESC Montpellier 2009/2010

2. Plan of the presentation • Presentation of BHP Billiton • History of BHP Billiton • Financial analysis • The competition • Management style • Advertising campaign • BHP Billiton's e-Business

3. Presentation of BHP Billiton • The leading global resources company, in mining industry. • The company operates a wide variety of mining and processing operations in 25 countries, employing approximately 38,000 people. • The purpose is : • to create long-term value through the discovery, • the development and conversionof natural resources, • the provision of innovative customer, • and the market-focused solutions.

4. History of BHP Billiton • Broken Hill Proprietary Company (BHP) • Billiton

5. Broken Hill Proprietary Company (BHP) • Founded in 1895 : BHP exploited mine in Broken Hill (New South Wales, Australia). • In 1915, the company ventured into steel manufacturing in Newcastle (New South Wales, Australia). • The company began petroleum exploration in the 1960s with discoveries in Bass Strait.

6. New South Wales, Australia

7. Broken Hill Proprietary Company (BHP) • BHP began to diversify offshore in a variety of projects. • For example, the “Ok Tedicopper mine” in Papua (New Guinea). • BHP was sued by the indigenous inhabitants because of the environmental degradation.

8. Billiton • A mining company whose origins stretch back to 29 September 1860. • The company acquired the rights to tin-rich islands of Banka and Billiton in the Indonesian archipelago. • Billiton's initial business included tin and lead smelting in the Netherlands, followed in the 1940s by bauxite mining in Indonesia and Suriname.

9. Billiton • Throughout the 1990s, Billiton Plc experienced considerable growth. • Its portfolio included : • Aluminum smelters (South Africa) • Nickel operations (Australia and Colombia) • Base metal mines (South America, Canada) • Coal mines (Colombia and South Africa)

10. BHP Billiton • In 2001 Billiton Plc merged with the Broken Hill Proprietary Company (BHP) to form… BHP Billiton • In 2007, BHP Billiton announced it was seeking to purchase rival mining group Rio Tinto Group in an all-share deal. • In 2008, Billiton announced that it would drop its $66 billion takeover of rival Rio Tinto Group… • In January 2010, BHP Billiton bought Athabasca Potash for $320m.

11. Key people of BHP Billiton • The CEO is Marius Kloppers, graduated with a Bachelor of Chemical Engineering and an MBA from INSEAD.

12. Key people of BHP Billiton • The Chairman of the board is Jacques Nasser (since August 2009). • Old CEO of Ford Motor Company (from 1998 until 2001).

13. Presentation of the company, by the CEO.

14. Headquarters Melbourne (BHP, main HQ) London (Billiton, second HQ) • The Australian BHP Billiton Limited and the British BHP Billiton Plc list separately with separate shareholder bodies… • …but they operate as one business with identical boards of directors and a single management structure.

15. BHP Billitons’ offices The company has other key offices in London, Johannesburg, Singapore, Shanghai…

16. Activity Sector of BHP Billiton • The company has 9 primary operational units: • Iron ore • Manganese • Petroleum • Aluminum • Base Metals (primary products) • Metallurgical Coal • Thermal Coal • Stainless Steel Materials (nickel and cobalt) • Diamonds & Specialty Products (titanium minerals)

17. Turnover of BHP Billiton in 2009 • Revenue = US$44 billion (2009) • Operating income =US$12 billion (2009) • Profit = US$6 billion (2009)

18. Turnover by products (in percentage)

19. Customer sector groups

20. Geographical distribution of the turnover (in percentage)

21. Australia’s Ranking of natural resource reserves by size

22. Recoverable world resource reserves (remaining time)

23. Share price from the last 10 years until now

24. Share price from the last 10 years until now (compared to ASX 200)

25. Share price from the last 2 years until now

26. Share price from the last 2 years until now (compared to ASX 200)

27. The competition • Since 2006, BHP is the world‘s leading mining company. • The main competitors are : • Vale • Rio Tinto • Chinalco • JECO Corp • IFC

28. Presentation of Vale company • Vale is the second-leading mining company in the world. • Brazilian mining multinational corporation. • The leading producer of iron ore,pellets, and second largest of nickel. • Revenue = US$ 29 billion (2009) • Net income = US$ 5 billion (2009) • Employees = 53,000

29. Presentation of Vale company

30. Presentation of Rio Tinto company • The company was founded in 1873. • British-Australian, multinational mining and resources group. • Rio Tinto is the leading company in the production of aluminum, iron ore, copper, uranium, coal, and diamonds. • Revenue = US$ 44 billion (2009) • Net income = US$ 5 billion (2009) • Employees = 35,000 (2007)

31. Management style • The seven strategic drivers assist BHP Billiton in achieving the objectives are : • the people; • the licence to operate; • the world-class assets; • the way of doing business; • the financial strength and discipline; • the project pipeline; • the growth options.

32. Management style Underpinning the strategic drivers are the values that guide the company.

33. Management style • The different values of the company are : • An overriding commitment to health, safety, environmental responsibility and sustainable development. • Integrity and doing what we say we will do. • A commitment to achieving superior business results and stretching our capabilities. • Having the courage to lead change in the face of adversity. • The embracing of diversity and showing respect for and trust in each other. With these elements as our foundation, BHP Billiton brings you the essential elements of everyday life.

34. Advertising campaign • BHP Billiton approached Lawrence Creative Strategy for communications advice, with several considerations : • BHP Billiton had not engaged in communications to the general public for many years. • Marius Klopperswas the newly appointed CEO. • The industrialization/urbanization of China resulted in a high demand for resources. • BHP Billiton was the ‘Official Diversified Minerals and Medals Sponsor’ of the 2008 Beijing Olympic Games. • LCS developed the positioning statement, resourcing the future.

35. Advertising campaign • The first step in refining and communicating : • who BHP Billion are globally, • what they do, • why it’s important, • how they are going about doing it. • LCS developed a creative campaign to launch resourcing the future and to communicate the BHP Billiton story. • The campaignincluded : • an internal launch, • website enhancement, • anextensive print , • and online advertising campaign in Australiaand China to communicate BHP Billiton’s sponsorship role inthe Beijing 2008 Olympic Games’.

36. Example of an advertising campaign

37. Access to BHP Billiton's e-Business • The website provides BHP Billiton's customers with the ability to conduct e-commerce transactions. • Users of BHP Billiton's e-Business websites must register with their membership database by providing : • E-mail address. • Name, company name, office name. • Business address, business phone. • Valid BHP Billiton internal contact name. • BHP Billiton will collect details in the membership database. • The company will use the registration details for demographic analysis and to personalize the website.

38. Thank you for your attention !