BHP Billiton

Merrill Lynch Australian Investment Conference 30 September 2005Marius Kloppers – Chief Commercial Officer

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DisclaimerThe views expressed here contain information derived from publicly available sources that have not been independently verified. Norepresentation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.

Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

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Noril

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BHPB

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Tinto

05

101520253035404550556065707580859095

100

Mark

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ap. o

n 19

/08/0

5 (US

$Bn)

The largest company in a consolidating sector

Market value of minerals industry US$572bnValue of Top Five US$241bnValue of BHP Billiton US$ 92bn

Source: Datastream

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The world’s largest diversified resources company

Energy CoalDiamonds & Spec Prod

Aluminium

Carbon Steel Materials

Base Metals

Petroleum

Stainless Steel Materials

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Strategic focus

People

Low Cost, High Quality Assets

Cost Savings and Efficiencies

Growth Pipeline

Bolt-onAcquisitions

M&A

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Highlights – year ended June 2005

Note – the financial results of BHP Billiton are prepared in accordance with UK generally accepted accounting principles (GAAP).

• Record full year earnings− EBITDA up 53% to US$11.4 billion− EBIT up 70% to US$9.3 billion− Attributable profit of US$6.5 billion and earnings per share of

106.4 US cents, up 86% and 89%, respectively• EBIT up across all CSGs with Group EBIT margin of 37.1%• Available cashflow up 70% to US$8.7 billion• Eight major projects commissioned since 30 June 2004• Successful US$7.2 billion acquisition of WMC Resources• Successful completion of US$2 billion capital management programme• Final dividend increased to 14.5 US cents per share, consistent with

outlook and higher earnings and cashflow

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Outstanding assetsIncreasing margins and return on capital

EBIT margins exclude exceptional i tems and third party products.

25.4%

20.5%

12.9%10.7%

37.1%

29.8%

24.3%20.3%

0%5%

10%15%

20%25%30%35%40%

2002 2003 2004 2005

Return on Capital EBIT Margin

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Outlook - 2005

EuropeSubdued domestic demand, high unemployment and strong EuroLimited improvement expected in next 12 months

Higher raw material and energy prices not materially impacting growthHigher raw material and energy prices not materially impacting growth

ChinaGDP growth rate remains s trong and sustainableFixed asset investment focussed on infrastructurede-bottleneckingRMB revaluation neutral to positiveQuality and sustainability of growth is key

JapanConfidence increasing due to domestic demandRising business confidence, capital expenditure and employment

USAImprovements in consumer spending, industrial production and employmentTightening in monetary policyHigh oil prices not impacting growth

CY01 CY02 CY03 CY04 H105 CY01 CY02 CY03 CY04 H105

CY01 CY02 CY03 CY04 H105

CY01 CY02 CY03 CY04 H105

Source: BHP Billiton, EIU

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0250

500

750

1,0001,250

1,500

1,750

2,0002,250

2,500

FY02 H1 03 H2 03 H1 04 H2 04 H1 05 H2 05Petroleum Aluminium Base Metals CSM Energy Coal SSM

China• Sales into China increasing but diversification remains• Currently 12.6% of total company revenues, up from 9.8% in FY04

US$M

431

785

1,0751,357

371

1,588

Europe

JapanOther Asia

Nth America

China

Australia

ROW2,407

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

95 96 97 98 99 00 01 02 03 0 4 05 Est.0%

5%

10%

15%

20%

25%

Chinese refin ed copperconsumption

% sha re of world refined copperconsumption (ri ght hand scale)

‘000 tonnes

Data: CRU, BH, BHP Billiton

Chinese copper, nickel, iron ore and steel demand

‘000 tonnes

‘000 tonnes

Data: CRU

0

20

40

60

80

100

120

140

160

95 96 97 98 99 00 01 02 03 04 05 H1 Est0%

2%

4%

6%

8%

10%

12%

14%

Chinese primary nickelconsumpti on

% share of world pri mary nickelconsumpti on (ri ght hand scal e)

0

50

100

150

200

250

95 96 97 98 99 00 01 02 03 04 05 YTD0%

5%

10%

15%

20%

25%

30%

35%

40%

Chi nese iron ore imports

% share of global seaborne ironore (right hand scale)

0

50

100

150

200

250

300

95 96 97 98 99 00 01 02 03 04 05 YTD0%

5%

10%

15%

20%

25%

30%

Chinese crude steelconsumption

% share of global crude steelconsumption (right hand scale)

Data: IISI, China Customs, CRU, Tex, Clarksons & BHP Bill iton (NB: 05 YTD is to end April) Data: IISI, China Customs, CRU, Tex, Clarksons & BHP Bill iton (NB: 05 YTD is to end April)

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‘000 tonnes

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Exchange stocks and copper, nickel, aluminium and petroleum prices

LME copper p rice – US$/tonne

Data: LME, Comex, SHFE (from 1997)

0

400

800

1,200

1,600

2,000

2,400

2,800

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05YTD

0

500

1,000

1,500

2,000

2,500Aluminium price – US$/tonne LME Aluminium stocks – ‘000 tonnes

Data: LME, IAI

LME stocks

LME cash price

1,000

1,500

2,000

2,500

3,000

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05YTD

0

200

400

600

800

1, 000

1, 200

1, 400Copper stocks – ‘000 tonnes

LME cash price

LME

Comex

SHFE

0

10

20

30

40

50

60

70

80

90

80 82 84 86 88 90 92 94 96 98 00 02 040%

5%

10%

15%

20%

25%OECD spare capacity as % of demandWTI Price US$/ bbl

Data: EIA

WTI

Nickel price – US$/tonne

Data: CRU

0

5,000

10,000

15,000

20,000

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Dec0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000Nickel stocks – tonnes

LME cash price

LME stocks

OECD spare capacity

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0.50

0.70

0.90

1.10

1.30

1.50

1.70

1801

1808

1815

1822

1829

1836

1843

1850

1857

1864

1871

1878

1885

1892

1899

1906

1913

1920

1927

1934

1941

1948

1955

1962

1969

1976

1983

1990

1997

2004

Commodities price cycle – 200 year view

Source: “US All Commodities Producer Price Index and US Consumer Price Inflation,US Bureau of the Census, His torical S tatis tics of the United States, Colonial Times to 1970”

WW-2 / Korea

War of 1812

U.SCivil War

U.S. Industrial revolution & overheating

WW-1

Cold War

Great Depression

US Commodity Price Index adjusted for CPI

Gold Rush/

Railroads

Illiquidity/ Contraction of

money and credit

Panic of 1893/ U.S. transition to

gold standardRecession/

End of Bretton Woods Turn of

cycle?

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Deep inventory of growth projectsB R O W N F I E L D

G R E E N F I E L D

SpenceSpence

Atlantis SouthAtlantis South

As at 24 August 2005Size of bubble indicates proposed capital expenditure;bold outer border signifies sanctioned project

$US 200M$US 200M

Paranam

BlackwaterCPP

Worsley

RavensthorpeRavensthorpe

BMAPhase 1

Esc’daNorte

Esc’daNorte

BMA Phase 2

WA Iron OreRGP 2

WA Iron OreRGP 2

SamarcoSamarco

NeptuneNeptune

NWS T5NWS T5

StybarrowStybarrow

NWS Angel

Koala UG

ZamzamaPhase 2

WA Iron OreRGP 4+

WA Iron OreRGP 4+

NickelPetroleum

Diamonds

Alumina

Iron OreBase Metals

Met. Coal

ShenziShenzi

AtlantisNorth

YabuluYabulu

20092007 2008CY2006 2010

Esc’daSulphideEsc’da

Sulphide

WA Iron OreRGP 3

WA Iron OreRGP 3

MaruwaiMaruwai

AlumarAlumar

Esc’daCPR

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• Strong production performance leading to record financial results• Outlook remains positive

− Strong demand− Low inventories− Supply lagging demand

• Portfolio diversification drives cash flow stability• Track record of delivering growth in line with market demand• Management will continue to exercise value accretive expansion

options to capture our share of demand growth

Summary and conclusions

Increasing Shareholder ValueIncreasing Shareholder Value

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