Wednesday 28th, April 2010

Naguib TOIHIRI – UG4 – UB1 English Course – Oral presentation

ESC Montpellier 2009/2010

Plan of the presentationPlan of the presentation

Presentation of BHP BillitonHistory of BHP BillitonFinancial analysis The competitionManagement styleAdvertising campaignBHP Billiton's e-Business

Presentation of BHP Presentation of BHP BillitonBillitonThe 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 conversion of natural

resources,◦ the provision of innovative customer,◦ and the market-focused solutions.

History of BHP BillitonHistory of BHP Billiton

Broken Hill Proprietary Company (BHP)

Billiton

Broken Hill Proprietary Broken Hill Proprietary Company (BHP)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.

New South Wales, New South Wales, AustraliaAustralia

Broken Hill Proprietary Broken Hill Proprietary Company (BHP)Company (BHP)

BHP began to diversify offshore in a variety of projects.

For example, the “Ok Tedi copper mine” in Papua (New Guinea).

BHP was sued by the indigenous inhabitants because of the environmental degradation.

BillitonBillitonA 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.

BillitonBillitonThroughout 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)

BHP BillitonBHP BillitonIn 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.

Key peopleKey people of BHP of BHP BillitonBillitonThe CEO is Marius Kloppers, graduated with a Bachelor of Chemical Engineering and an MBA from INSEAD.

Key peopleKey people of BHP of BHP BillitonBilliton

The Chairman of the board is Jacques Nasser (since August 2009).

Old CEO of Ford Motor Company (from 1998 until 2001).

Presentation of the Presentation of the company, by the CEO.company, by the CEO.

HeadquartersHeadquartersMelbourne (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.

BHP Billitons’ officesBHP Billitons’ offices

The company has other key offices in London, Johannesburg, Singapore, Shanghai…

Activity Sector of BHP Activity Sector of BHP BillitonBillitonThe 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)

TurnoverTurnover of BHP Billiton of BHP Billiton in 2009in 2009

Revenue = US$ 44 billion (2009)

Operating income = US$ 12 billion (2009)

Profit = US$ 6 billion (2009)

Turnover by products Turnover by products (in percentage)(in percentage)

Customer sector Customer sector groupsgroups

Geographical distribution Geographical distribution of the turnover (in of the turnover (in percentage)percentage)

Australia’s Ranking of Australia’s Ranking of natural resource reserves natural resource reserves by sizeby size

Recoverable world Recoverable world resource reserves resource reserves (remaining time)(remaining time)

Share price from Share price from the last 10 years until the last 10 years until nownow

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

Share price from Share price from the last 2 years until nowthe last 2 years until now

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

The competitionThe competitionSince 2006, BHP is the world‘s

leading mining company.

The main competitors are : ◦Vale ◦Rio Tinto◦Chinalco◦JECO Corp◦IFC

Presentation of Vale Presentation of Vale companycompanyVale 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

Presentation of Vale Presentation of Vale companycompany

Presentation of Rio Tinto Presentation of Rio Tinto companycompanyThe 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)

Management styleManagement styleThe 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.

Management styleManagement style

Underpinning the strategic drivers are the values that guide

the company.

Management styleManagement 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.

Advertising campaignAdvertising 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 Kloppers was 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.

Advertising campaignAdvertising 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 campaign included :◦ an internal launch, ◦ website enhancement,◦ an extensive print ,◦ and online advertising campaign in Australia and

China to communicate BHP Billiton’s sponsorship role in the Beijing 2008 Olympic Games’.

Example of an advertising Example of an advertising campaigncampaign

Access to BHP Billiton's Access to BHP Billiton's e-Businesse-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.

Thank you for your Thank you for your attention !attention !