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. We have around 35 000 employees working in more than 100 operations and offices in 26 countries (see BHP Billiton Locations PDF 156KB).

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.

We have adopted a business model based on customer-oriented groupings called Customer Sector Groups (CSGs). This structure reflects our focus on the needs of our customers. In March 2004, we announced that we had modified our organisation structure to streamline reporting and maximise the operational effectiveness of the Company. As a result, the existing CSGs were brought together under three broadly related business areas of Non-Ferrous Materials, Carbon Steel Materials and Energy. The existing CSG structure has been very effective and will be continued within the new structure.

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:

The CSGs are supported by marketing ‘hubs’ located in The Hague and Singapore.

Annual attributable volumes of production for some of our most significant commodities have been in the order of:

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, there were no mergers or acquisitions that have materially affected our results. The only site that was closed during the year was our Selbaie zinc and copper operation located in Canada.

BHP Billiton has an annual turnover of US$24.9 billion, attributable profit (excluding exceptional items) of approximately US$3.5 billion and net operating assets of US$21.5 billion (at 30 June 2004). Summary financial information for the Group is presented in the following table.

Summary financial information for the BHP Billiton Group
US$ million (Year ending 30 June)		 2003/04 2002/03 2001/02
Turnover 1 24 943 17 506 15 228
EBIT 1 2 3 5 488 3 481 3 102
Earnings before tax 1 2 4 986 2 944 2 866
Attributable profit 1 2 3 510 1 920 1 866
Net operating assets 1 21 510 20 656 20 160
Taxation paid (net of refunds) 1 337 1 002 515
Government royalties paid or payable 421 352 294
Dividends paid or payable 1 617 900 784
R&D expenditure 19 40 30
EBITDA to interest cover (times) 1 2 3 4 21.1 13.3 11.2
Debt to equity or gearing ratio 5 24.9% 31.7% 35.0%
Profit and loss account at end of year 6 10 461 8 580 7 475
  • From continuing operations, including the Group’s share of joint ventures and associates.
  • Excluding exceptional items.
  • EBIT is earnings before interest and tax. EBITDA is EBIT before depreciation, impairments and amortisation of both Group companies and Joint Ventures and Associates.
  • For this purpose, net interest includes capitalised interest and excludes the effect of discounting on provisions and exchange differences arising from net debt.
  • Gearing as at 30 June 2002 includes the Group’s Steel business which was demerged in July 2002.
  • Movement in retained earnings is represented by movement in cumulative profit and loss accounts.

Our shareholder base is widely diversified, with approximately 60 per cent of shares held in Australia and Asia, 29 per cent in the UK and Europe, and 11 per cent in Africa.

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.

 

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