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BHP Billiton is the world's largest diversified resources company, with a portfolio of high-quality, long-life assets and a significant pipeline of growth projects. The Company has some 34 800 employees, working in more than 100 operations and offices in 26 countries (see BHP Billiton Locations).
The Company was created in 2001 through the Dual Listed Companies (DLC) merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc). Headquartered in Melbourne, the Group has primary listings on the Australian and London Stock Exchanges and has a business model created around seven Customer Sector Groups (CSGs). These are based on customer-oriented groupings of commodities, reflecting our focus on the needs of our customers.
Each of the CSGs is a substantial business in its own right, and several are leaders in their respective fields. They have autonomy to optimise their businesses, with clear accountabilities.
The CSGs are:
- Aluminium (mining of bauxite, refining to alumina and smelting to produce aluminium)
- Base Metals (mining of copper, lead, zinc, gold, and silver, processing of copper)
- Carbon Steel Materials (mining and processing of iron ore, mining of metallurgical coal and mining and smelting of manganese)
- Diamonds and Specialty Products (mining and processing of diamonds and titanium minerals, metals distribution, Exploration and Technology)
- Energy Coal (mining of thermal coal)
- Petroleum (onshore and offshore processing of oil, gas, liquefied natural gas, liquefied petroleum gas)
- Stainless Steel Materials (mining and processing of nickel, cobalt and chrome).
Volumes of production for some of our most significant commodities are in the order of:
- 1 million tonnes of aluminium and 4 million tonnes of alumina
- 0.9 million tonnes of copper
- 70 million tonnes of iron ore
- 35 million tonnes of metallurgical coal
- 80 million tonnes of thermal coal
- 4 million carats of diamonds
- 70 million barrels of crude oil and condensate
- 300 billion cubic feet of natural gas
- 0.1 million tonnes of nickel.
Our key markets downstream are refiners and processors of raw materials, for example, steelworks, smelters, petroleum refiners, thermal power stations, diamond cutters, and so on.
During the year, the following operations were demerged, divested or closed:
- BHP Steel, Australia/Asia (demerged)
- BHP Billiton stake in Alumbrera, Argentina (divested)
- Delmas Colliery, South Africa (divested)
- Tower Colliery, Australia (closed)
- Pering Mine, South Africa (closed).
This will be the first year that our HSEC Report does not include data for these operations. Due to the significance of contributions from BHP Steel, the Report identifies where information has been provided to facilitate year-to-year comparison of performance without BHP Steel.
BHP Billiton has an annual turnover of US$17.5 billion, attributable profit of approximately US$1.9 billion and an enterprise value of US$35 billion (at 30 June 2003). Summary financial information for the Group is presented in Figure 1.
Figure 1. Summary Financial Information for the BHP Billiton Group
| $US million (Year ending 30 June) | 2002/03 | 2001/02 |
|---|---|---|
| Turnover 1,2 | 17 506 | 15 228 |
| EBIT 1,2,3,4 | 3 481 | 3 102 |
| Earnings before tax excluding exceptional items | 2 944 | 2 866 |
| Attributable profit 1,2,3 | 1 920 | 1 866 |
| Net operating assets 1 | 20 578 | 20 146 |
| Taxation paid (net of refunds) 1 | 1 002 | 518 |
| Government royalties paid and payable | 352 | 294 |
| Dividends paid | 900 | 784 |
R&D expenditure |
40 | 30 |
| EBITDA to interest cover (times) 1,2,3,4,5 | 12.7 | 10.9 |
| Debt to equity or gearing ratio 6 | 31.9% | 35.0% |
| Profit and loss account at end of year 7 | 8 496 | 7 461 |
1. From continuing operations, excluding the results of the Group's Steel business, which was demerged in July 2002.
2. Including the Group's share of joint ventures and associates.
3. Excluding exceptional items.
4. EBIT is earnings before interest and tax. EBITDA is EBIT before depreciation and amortisation of Group companies of US$1648 million for the year ended 30 June 2003.
5. For this purpose, net interest includes capitalised interest and excludes the effect of discounting on provisions and exchange differences arising from net debt.
6. Gearing as at 30 June 2002 includes the Group's Steel business, which was demerged in July 2002.
7. Movement in retained earnings is represented by movement in cumulative
profit and loss accounts.
Our shareholder base is widely diversified, with approximately 39 per cent of shares held in Australia, 30 per cent in the UK and Europe, 18 per cent in North America, 8 per cent in South Africa and 5 per cent in Asia.
The diversification extends to our markets and countries of operation, enhancing the stability of our cash flows and capacity to invest and grow throughout the business cycles. This stability also enables us to take a longer-term approach to all aspects of our business, including financial, social and environmental perspectives, improving our ability to deliver value for all our key stakeholders.
