UNITED STATES
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Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
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UNDER THE SECURITIES EXCHANGE ACT OF 1934
February 21, 2023
BHP GROUP
LIMITED
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule
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21 February 2023
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RESULTS PRESENTATION
FOR THE HALF YEAR ENDED 31 DECEMBER 2022
Attached are the presentation slides for BHP’s HY2023 Results Presentation by the Chief Executive
Officer and Chief Financial Officer.
A video of this presentation can be accessed at: https://www.bhp.com/financial-results
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
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BHP Group Limited ABN 49 004 028 077
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BHP December 2022 Half year results Escondida
Disclaimer The information in this presentation is current as at 21 February 2023. It is in summary form and is not necessarily
complete. It should be read together with the BHP Results for the half year ended 31 December 2022. Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in economic outlook;
commodity prices and currency exchange rates; demand for commodities; medium-term guidance; reserves and resources and production forecasts; operational performance; expectations; plans, strategies and objectives of management; climate scenarios;
approval of certain projects and consummation of certain transactions, including, but not limited to, our announced proposed acquisition of Oz Minerals; closure or divestment of certain assets, operations or facilities (including associated costs);
anticipated production or construction commencement dates; capital expenditure or costs and scheduling; operating costs, including unit cost guidance, and shortages of materials and skilled employees; anticipated productive lives of projects, mines
and facilities; provisions and contingent liabilities; and tax and regulatory developments. Forward-looking statements may be identified by the use of terminology, including, but not limited to, ‘intend’, ‘aim’,
‘ambition’, ‘aspiration’, ‘goal’, ‘target’, ‘prospect’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘objective’, ‘believe’,
‘expect’, ‘commit’, ‘may’, ‘should’, ‘need’, ‘must’, ‘will’, ‘would’, ‘continue’, ‘forecast’, ‘guidance’, ‘trend’ or similar
words. These statements discuss future expectations concerning the results of assets or financial conditions, or provide other forward-looking information. The forward-looking statements are based on management’s current expectations and
reflect judgements, assumptions, estimates and other the information available as at the date of this presentation and/or the date of the Group’s planning processes or scenario analysis processes. There are inherent limitations with scenario
analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenarios do not constitute definitive outcomes for us. Scenario analysis relies on assumptions that may or may not be, or prove to be, correct and may or may
not eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. Additionally, forward-looking statements in this presentation are not guarantees or predictions of future performance, and involve known and unknown
risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. BHP cautions against reliance on any
forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with the Ukraine conflict and
COVID-19. For example, our future revenues from our assets, projects or mines described in this presentation will be based, in part, upon the market price of the minerals, or metals produced, which may vary
significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing assets.
Other factors that may affect the actual construction or production commencement dates, revenues, costs or production output and anticipated lives of assets, mines or facilities include our ability to profitably produce and transport the minerals
and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals or metals we produce; activities of government authorities in the countries where we sell our products and in the
countries where we are exploring or developing projects, facilities or mines, including increases in taxes and royalties; changes in environmental and other regulations; the duration and severity of the Ukraine conflict and the COVID-19 pandemic and their impact on our business; political or geopolitical uncertainty; labour unrest; weather, climate variability or other manifestations of climate change; and other factors identified in the
risk factors discussed in section 9.1 of the Operating and Financial Review in the FY2022 Annual Report and BHP’s filings with the U.S. Securities and Exchange Commission (the ‘SEC’) (including in Annual Reports on Form 20-F) which are available on the SEC’s website at www.sec.gov. Except as required by applicable regulations or by law, BHP does not undertake to publicly update or review any forward-looking statements, whether
as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Presentation of data Unless specified otherwise: variance analysis relates to the relative performance of BHP and/or its
operations during the half year ended 31 December 2022 compared with the half year ended 31 December 2021; operations includes operated assets and non-operated assets; total operations refers to the
combination of continuing and discontinued operations; continuing operations refers to data presented excluding the impacts of Onshore US from the 2017 financial year onwards and excluding Petroleum from the 2021 financial year onwards; copper
equivalent production based on 2022 financial year average realised prices; references to Underlying EBITDA margin exclude third party trading activities; data from subsidiaries are shown on a 100 per cent basis and data from equity accounted
investments and other operations is presented, with the exception of net operating assets, reflecting BHP’s share; medium term refers to our five year plan. Queensland Coal comprises the BHP Mitsubishi Alliance (BMA) asset, jointly owned with
Mitsubishi, and the BHP Mitsui Coal (BMC) asset until our 80 per cent interest in BMC was sold to Stanmore Resources on 3 May 2022. Numbers presented may not add up precisely to the totals provided due to rounding. All footnote content
(except in the Annexures) is contained on slide 19. Non-IFRS information We use various Non-IFRS information to reflect our underlying performance. For further
information, the reconciliation of non-IFRS financial information to our statutory measures, reasons for usefulness and calculation methodology, please refer to Non-IFRS
financial information set out on pages 53 – 65 of the BHP Results for the year ended 31 December 2022. No offer of securities Nothing in this presentation should be construed as either an offer or a solicitation of an offer to buy or sell
any securities, or a solicitation of any vote or approval, in any jurisdiction, or be treated or relied upon as a recommendation or advice by BHP. No offer of securities shall be made in the United States absent registration under the U.S.
Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements. Reliance on third party information The views expressed in this presentation contain information that has been
derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a
recommendation or forecast by BHP. BHP and its subsidiaries In this presentation, the terms ‘BHP’, the ‘Company, the ‘Group’, ‘BHP Group’, ‘our business’, ‘organisation’, ‘we’,
‘us’, ‘our’ and ourselves’ refer to BHP Group Limited and, except where the context otherwise requires, our subsidiaries. Refer to note 28 ‘Subsidiaries’ of the Financial Statements in the FY2022 Annual Report and
Form 20-F for a list of our significant subsidiaries. Those terms do not include non-operated assets. This presentation covers BHP’s functions and assets (including
those under exploration, projects in development or execution phases, sites and closed operations) that have been wholly owned and/or operated by BHP or that have been owned as a joint venture1 operated by BHP (referred to in this presentation as
‘operated assets’ or ‘operations’) during the period from 1 July 2022 to 31 December 2022. BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to in this presentation
as ‘non-operated joint ventures’ or ‘non-operated assets’). Notwithstanding that this release may include production, financial and other information
from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to
our operated assets unless stated otherwise. 1. References in this presentation to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not intended to
characterise the legal relationship between the owners of the asset. Financial results 21 February 2023 2
BHP Financial results Half year ended 31 December 2022 Mike Henry Chief Executive Officer Western Australia Iron Ore
H1 performance Colleague tragically lost in fatal incident at WAIO in February 2023 Operating performance remains steady Strong
financial performance and shareholder returns Production guidance held and coal cost guidance revised Accelerating studies for growth options, OZL proposed acquisition on track Note: WAIO – Western Australia Iron Ore; OZL – OZ Minerals
Limited. Financial results 21 February 2023 4
H1 FY23 operational and financial performance A strong set of results despite increased external pressures 20% Unit Controlling costs
Safety Cost guidance for Escondida and WAIO unchanged, Decline in high-potential injury (HPI) frequency from costs and BMA and NSWEC cost guidance increased largely H1 FY221 due to significant wet weather impacts and inflation4 Reliable performance
US$13.2 bn Production Record H1 performance at WAIO2; EBITDA Group guidance ranges unchanged with Escondida Underlying EBITDA at 54% margin and BMA trending to the low end of ranges3 Progressing our options Shareholder 90 US cps Growth Jansen Stage
1 and WAIO debottlenecking to returns Interim dividend determined, equivalent to US$4.6 bn >300 Mtpa, accelerating other studies Note: WAIO – Western Australia Iron Ore; BMA – BHP Mitsubishi Alliance; NSWEC – New South Wales Energy
Coal. Financial results 21 February 2023 5
H1 FY23 social value highlights Making significant contributions where we operate and putting our Social Value Framework into action
Taxes and US$7.5 bn Female > 33% royalties representation female representation across the Group, paid to Governments through taxes and royalties5ï,“ 16% points since FY16 Operational On track Indigenous ï,“ 111% GHG US$141 m
in H1 FY23, up from US$67 m in H1 FY22, to meet our FY30 target, 24% decline between our FY20 procurement emissions supporting local employment opportunities to help build baseline6 and FY22, with further reduction in H1 FY23 long-term business
capability8 Biodiversity 50% Value chain 17% of global steel production and completion of Important Biodiversity and Ecosystems emissions emissions reduction partnerships now with six leading ecosystems baseline mapping for all land and water areas,
on track for full completion by the end of FY237 steelmakers representing 17% of global steel production9 Financial results 21 February 2023 6
BHP Financial results Half year ended 31 December 2022 David Lamont Chief Financial Officer Escondida
Financial performance Strong earnings at a 54% underlying EBITDA margin and 29.4% ROCE Summary financials One of the highest HY earnings
in the last decade(i) H1 FY23 % change10 (US$ billion) (US cents per share) Underlying EBITDA 13.2 28% 300 Underlying EBITDA margin 54% 250 Underlying EBIT 10.8 31% Adjusted effective tax rate11 29.5% 200 Adjusted effective tax rate incl.
royalties11 40.2% Underlying attributable profit 6.6 32% 150 Net exceptional items (0.1) 100 Attributable profit 6.5 Underlying basic earnings per share 130.3 US cps 32% 50 Dividend per share12 90 US cps 40% Net operating cash flow 6.8 41% 0 FY18
FY19 FY20 FY21 FY22 FY23 Capital and exploration expenditure 3.0 5% Net debt13 6.9 13% Underlying basic EPS (H1) Underlying basic EPS (H2) (i) Presented on a total operations basis. Financial results 21 February 2023 8
Group EBITDA waterfall Strong controllable cost performance, lower prices and external inflation the biggest drivers Underlying EBITDA
variance (US$ billion) External US$(4.5) billion Controllable US$(0.2) billion 20 18.5 18.0 15 0.4 0.7 13.5 13.2 (3.9) (1.0) (0.5) (0.4) Inflationary pressures by category Largely due to the unfavourable impacts of 10 (US$ bn) inventory movements
0.0 (0.4) (0.8) (1.2) 5 Diesel Explosives CPI17 and other 0 H1 FY22 Price15 Foreign Inflation16 Baseline Volumes Controllable18 Other 19 H1 FY23 exchange costs Note: US$0.5 bn ceased and sold operations impact14, predominantly the contribution of
BHP Mitsui Coal (BMC) prior to divestment of our 80% interest on 3 May 2022. Financial results 21 February 2023 9
Segment performance Iron ore Nickel EBITDA: US$7.6 bn EBITDA: US$0.1 bn EBITDA margin: 65% EBITDA margin: 10% WAIO unit cost20:
US$18.30/t Slower ramp up of refinery following planned maintenance WAIO C1 unit cost21: US$15.50/t Copper Potash EBITDA: US$2.8 bn Jansen Stage 1 continues to be on time and on budget EBITDA margin: 44% Stage 1: 16% complete Escondida unit cost20:
US$1.44/lb Construction and equipment procurement progressing US$2.5 bn in contracts awarded to date Metallurgical coal Energy coal22 BMA EBITDA: US$1.4 bn NSWEC EBITDA: US$1.2 bn BMA EBITDA margin: 40% NSWEC EBITDA margin: 62% BMA unit cost20:
US$100.23/t NSWEC unit cost20: US$101.07/t Note: WAIO – Western Australia Iron Ore; BMA – BHP Mitsubishi Alliance; NSWEC – New South Wales Energy Coal. Financial results 21 February 2023 10
BHP Business update Half year ended 31 December 2022 Mike Henry Chief Executive Officer Jansen
Portfolio positively leveraged to megatrends Built to compete in a complex but opportunity-rich environment Portfolio Copper Nickel Iron
Ore Metallurgical Coal Potash Largest endowment23 Second largest Lowest cost iron ore Leading met coal Large-scale resource supports sulphide resources24 producer25 supplier up to 100 years of operation26 TRADITIONAL COST SUPPLY DECARBONISATION
DEMAND COMPETITIVENESS HEADWINDS Demand amplification, Steeper cost curves, margin Tighter balances, Attractive fundamentals rising material intensity expansion for best operators durable inducement pricing Population growth Climate-positive land
use End-to-end logistics Lack of new discoveries Urbanisation Decarbonising power Economies of scale Changing societal expectations Industrialisation Electrifying
transport Operational decarbonisation Geological inflation Living standards Electrifying buildings Operational productivity Regulatory uncertainty Capital stock turnover Decarbonising industry Managing labour challenges Geopolitical risk Financial
results 21 February 2023 12
Near term growth Projects at WAIO and Jansen are underway and on track Growth to >300 Mtpa, studying options for 330 Mtpa Stage 1 on
track, Stage 2 studies accelerated Rail and port debottlenecking and optimisation to deliver >300 Mtpa at WAIO Jansen Stage 1 project execution at 16% and running to plan and budget, targeting first production by the end of CY26 with 81% of
engineering Studies for growth to 330 Mtpa to be completed in FY25 complete and 85% of procurement orders placed Ability to leverage existing infrastructure (e.g. Yandi) and beneficiation will be Stage 2 feasibility study commenced, now expected to
be completed in FY24 key considerations Financial results 21 February 2023 13
Accelerating our future facing options We are accelerating studies across a range of organic growth options in copper, nickel and potash
Organic opportunities in copper Longer term opportunities Jansen Stages 3-4 (Potash) Accelerating options Escondida Brownfield Options (Copper) Escondida and Pampa Norte 1.2 Mtpa medium term production
guidance at Escondida Resolution (Copper) Options to add production including concentrator strategy and leaching Pampa Norte Brownfield Options (Copper) Nickel West Olympic Dam and Oak Dam Expansion Studying two stage smelter at Olympic Dam (Nickel)
Olympic Dam & Oak Dam Growth Further drilling at Oak Dam towards initial resource definition (Copper) OZ Minerals integration post completion of proposed acquisition27 Antamina Life Extension (Copper) Note: Completion of the proposed OZL
acquisition is subject to the Scheme becoming effective in accordance with the Scheme Implementation Deed27. Financial results 21 February 2023 14
Innovative and agile in our approach We are creating and accelerating longer term options Metals Exploration Ventures Innovative machine
learning to define next Investing in emerging technology Dedicated to accelerating innovative, generation of targets under cover; 15 new companies with the potential to unlock early-stage mineral exploration concepts by Areas of Interest in Chile
for copper, 5 in decarbonisation pathways and future offering candidates funding, in-kind services, Australia for nickel. Further roll-out in Peru growth opportunities
for BHP mentorship and coaching, and more and the United States underway Screened >1,200 opportunities to date, Hundreds of applications, seven selected New partnerships in Canada and Serbia invested in more than 20 high-quality expanding option
set holdings in three years Focus areas: Nickel Decarbonising our operations 20% H1 FY23 Growth in our resource base Greenfield Exploration Spend Growth along our value chain Copper Seeding new potential business platforms 80% Financial results
21 February 2023 15
OZ Minerals proposed acquisition progressing South Australian copper basin BHP tenements Acquisition of 100% of OZL OZL tenements Agreed
terms To be executed by way of a scheme of arrangement Producing asset Project Cash price of A$28.25 per OZL share (A$9.8 billion28)29 Major road Power transmission(i) Benefits to In BHP’s view it provides an attractive premium and cash
certainty OZL Unanimous recommendation from the OZL Board to vote in favour30 Prominent Hill hareholders Olympic Dam ~180km Increased exposure to future facing commodities Benefits to BHP Attractive potential synergies hareholders ~180km Pipeline of
potential growth opportunities Oak Dam Carrapateena Scheme booklet to OZL shareholders: early March 2023 Indicative OZL shareholder Scheme meeting: April 2023 transaction timetable Implementation date: late April / early May 2023 (subject to
satisfaction of South conditions including regulatory approvals) Australia (i) Figures represent the approximate distance of each power transmission line. Note: Transaction timetable is indicative only and subject to change. cial results ruary
2023 16
Investment proposition Attractive returns underpinned by operational excellence, capital allocation discipline and Social Value
commitment Operational Disciplined Value and returns excellence capital allocation World class Driving Agile decision Strong Embedded A framework Commitment to Increasing Exceptional assets improvement making and balance Capital for growth Social
Value exposure to shareholder in culture and strategic sheet Allocation with an active and future facing returns capability flexibility Framework pursuit of sustainability commodities opportunities Financial results 21 February 2023 17
BHP
Footnotes 1. Slide 5: There were zero fatalities during the December 2022 half. A fatal incident occurred subsequently at our WAIO
operations in February 2023. 2. Slide 5: WAIO achieved record production of 146 Mt (100% basis) for the half year. 3. Slide 5: Production guidance for the 2023 financial year remains unchanged, with Escondida and BMA trending to the low end of their
respective guidance ranges. 4. Slide 5: Full year unit cost guidance for BMA and NSWEC has been increased, largely reflecting production impacts from significant wet weather and inflationary pressures. 2023 financial year unit cost guidance:
Escondida US$1.25-1.45/lb, WAIO US$18-19/t, BMA US$100-105/t and NSWEC US$84-91/t; based
on exchange rates of AUD/USD 0.72 and USD/CLP 830. 5. Slide 6: We paid US$7.5 billion in taxes and royalties to governments in the December 2022 half year. 6. Slide 6: For our baseline year of FY20, our operational GHG emissions were 14.5 Mt CO2-e, adjusted for discontinued operations (Onshore US assets and Petroleum) and the divestment of BMC, and for methodological changes (use of Intergovernmental Panel on Climate Change Assessment Report 5 AR5
Global Warming Potentials and move to facility-specific emissions calculation methodology for fugitives at Caval Ridge). These adjustments have also been applied to the GHG emissions to aid comparability. The use of carbon offsets will be governed
by BHP’s approach to carbon offsetting described at bhp.com/climate. Data is indicative and is subject to non-financial assurance reviews. 7. Slide 6: Baseline mapping of Important Biodiversity and
Ecosystems (IBEs) in the Minerals Australia region is complete, and on track to complete in the Minerals Americas region by the end of the 2023 financial year. This will be used to identify priority areas for action to meet our 2030 goal of creating
nature positive outcomes by having at least 30 per cent of the land and water we steward under conservation, restoration or regenerative practices. 8. Slide 6: Global Indigenous procurement spend. On track to achieve FY23 target of
US$269 million purchases from Indigenous vendors, which is an 80% increase on FY22 and more than triple our spend in FY21. 9. Slide 6: BHP has partnerships with global majors POSCO, China Baowu, JFE Steel, HBIS Group, TATA Steel and
ArcelorMittal. These companies account for more than 17 per cent of reported global steel production, based on CY21 data from the World Steel Association. 10. Slide 8: Relative to H1 FY22 on a continuing operations basis. 11. Slide 8: Adjusted
effective tax rate and Adjusted effective tax rate incl. royalties: excludes the influence of exchange rate movements and exceptional items. 12. Slide 8: Dividend per share refers to cash dividends. 13. Slide 8: Relative to H1 FY22 on a total
operations basis. 14. Slide 9: Total H1 FY22 underlying EBITDA (on a continuing operations basis) of $18.5bn adjusted for $0.5bn ceased and sold operations impact. This is predominantly the contribution from BMC prior to divestment of our
80 per cent interest in BMC to Stanmore SMC Holdings Pty Ltd, a wholly owned entity of Stanmore Resources Limited, on 3 May 2022. 15. Slide 9: Price: net of price-linked costs. 16. Slide 9: Inflation: includes CPI increases across the cost
base, and price increases for consumable costs including diesel and explosives. 17. Slide 9: CPI is exclusive of any CPI relating to diesel, explosives and other consumable materials. 18. Slide 9: Controllable costs: Largely due to the unfavourable
impacts of inventory movements: at WAIO, to support supply chain performance amidst lower labour availability (US$241 million); and at Olympic Dam, following a stock build during SCM21 in the prior period (US$165 million). Higher costs at Escondida
and Spence primarily reflected one-off contractor costs and higher consumables costs. Higher costs at BMA resulted from the production impacts of significant wet weather. 19. Slide 9: Other includes the
recovery of lower freight costs caused by movements in the freight index on consecutive voyage charter (CVC) voyages and lower profit at Antamina largely driven by lower realised copper prices. 20. Slide 10: Average realised exchange rates for H1
FY23 of AUD/USD 0.67 (FY23 guidance rate AUD/USD 0.72) and USD/CLP 920 (FY23 guidance rate USD/CLP 830). 21. Slide 10: WAIO C1 cost: excludes royalties (government and third party royalties), exploration expenses, depletion of production stripping,
demurrage, exchange rate gains/losses, net inventory movements and other income. 22. Slide 10: Total revenue from thermal coal sales, including NSWEC and BHP’s share of BMA, was US$2,123 million (H1 FY22: US$1,175 million). 23. Slide 12:
Largest copper endowment on a contained metal basis, equity share. Peers include: Anglo American, Antofagasta, Codelco, First Quantum Minerals, Freeport, Glencore, Rio Tinto, Southern Copper and Teck. Source peers: Wood Mackenzie Ltd, Q1 2022.
Source BHP data: FY2021 BHP Annual Report. 24. Slide 12: Second largest nickel sulphide resources on a contained metal basis, equity share. Source peers: MinEx Consulting Global Ni Database, July 2022. Source BHP data: FY2022 BHP Annual Report. 25.
Slide 12: Based on published unit costs by major iron ore producers, as reported at 31 December 2022. 26. Slide 12: Based on a Reserve life of 94 years as reported in BHP’s 17 August 2021 news release, available to view on
www.bhp.com, with further optionality from Jansen’s 5,230 Mt Measured Resource base. 27. Slide 14: BHP has entered into a Scheme Implementation Deed with OZ Minerals Limited (OZL) to acquire 100% of OZL by way of a scheme of arrangement for a
cash price of A$28.25 per OZL share (Scheme). The implementation of the Scheme is subject to satisfaction of certain conditions including receipt of approvals from regulators in relevant jurisdictions (including Brazil, now received, and Vietnam),
an independent expert concluding that the Scheme is in the best interests of OZL shareholders, OZL shareholder approval, Australian court approval, no material adverse change in relation to OZL and no prescribed occurrences occurring. 28. Slide 16:
On a fully diluted enterprise value basis, updated for OZL net debt of A$254 million as at 31 December 2022. 29. Slide 16: Less the amount of any dividend declared and to be paid by OZL. 30. Slide 16: In the absence of a superior proposal
and subject to an independent expert concluding that the Scheme is in the best interests of OZL shareholders. Financial results 21 February 2023 19
BHP Appendix
Safety and social value indicators We are making good progress on our safety and social value targets/goals Key safety indicators1 H1
FY23 FY22 H1 FY22 Target/Goal Fatalities 0 0 0 Zero work-related fatalities High Potential Injury (HPI) frequency (per million hours worked) 0.13 0.14 0.17 Year-on-year
improvement of HPI frequency Total Recordable Injury Frequency (TRIF) (per million hours worked) 4.1 4.0 3.8 Year-on-year improvement in TRIF Key social value
indicators1,2 H1 FY23 FY22 H1 FY22 Target/Goal Operational greenhouse gas (GHG) emissions (Mt CO2-e) 5.0 11.0 5.9 Reduce operational GHG emissions by at least 30% from FY20 levels3 by FY30 2030 goal to support
industry to develop technologies and pathways capable of 30 per cent emissions intensity Value chain emissions: Steelmaking P P P reduction in integrated steelmaking, with widespread adoption expected post-2030 Value chain emissions: Maritime
transportation P P P 2030 goal to support 40 per cent emissions intensity reduction of BHP-chartered shipping of BHP products Community and social investment (US$ million) 41.1 186.4 46.9 At least one per
cent of pre-tax profit4 Indigenous procurement spend (US$ million) 141.3 149.9 67.0 Purchases from Indigenous vendors of US$269 million in FY23 Female workforce participation (%) 33.6 32.3 30.6
Aspirational goal for gender balance by the end of FY255 Australia6 Indigenous workforce participation (%) 8.3 8.3 8.0 Aim to achieve 9.7% by the end of FY27 Chile7 Indigenous workforce participation (%) -7
8.7 8.5 Aim to achieve 10% by the end of FY25 Canada8 Indigenous workforce participation (%) 6.7 7.2 5.2 Aim to achieve 20% by the end of FY26 1. All data points are presented on a total operations basis, unless otherwise noted, and are indicative
and subject to non-financial assurance reviews. FY22 data for safety, social investment and workforce participation includes the operated assets in our Petroleum business up to the date of the merger (1 June
2022) and BMC up to the date of completion of the sale (3 May 2022). 2. Includes selection of key social value framework metrics. Additional metrics will be included annually in BHP’s Annual Report. 3. For our baseline year of FY20, our
operational GHG emissions were 14.5 Mt CO2-e, adjusted for Discontinued operations (US Onshore and Petroleum) and the divestment of BMC, and for method changes (use of Intergovernmental Panel on Climate Change
Assessment Report 5 AR5 Global Warming Potentials and the move to a facility-specific emissions calculation methodology for fugitives at Caval Ridge). These adjustments have also been applied to the GHG emissions stated in this table to aid
comparability. The use of carbon offsets will be governed by BHP’s approach to carbon offsetting described at bhp.com/climate. 4. Prior to FY23, our voluntary social investment has been calculated as 1 per cent of the average of the
previous three years’ pre-tax profit. For FY23—FY30, our social investment will be assessed as a total over the seven-year goals period to FY30, rather than calculated as an average of the previous
three years’ pre-tax profit. 5. We define gender balance as a minimum 40 per cent women and 40 per cent men in line with the definitions used by entities such as the International Labour
Organisation and HESTA. 6. Minerals Australia operations employees in Australia. 7. Minerals Americas operations employees in Chile. H1 FY23 data not yet available due to a change in the data compilation process. The new process is not expected to
result in a significant variation to progress against the target. 8. Jansen Potash project and operations employees in Canada. Financial results 21 February 2023 21
Creating an equitable and sustainable future for people and planet A charitable organisation working with partner organisations to help
solve the world’s most complex social and environmental challenges. The independent work of the BHP Foundation’s portfolio complements BHP’s Social Value approach, addressing these challenges on a national and global scale. Program
outcomes and impact 10 Deserts: Second Chance Education: Open Contracting: Internet of Water: IdeoDigital: RISE Ukraine: The world’s largest 67,000+ women from 60% of medicines purchased Building modern water data 3,800 students in 80+ public A
coalition of Indigenous-led connected Indigenous, refugee, up to 80% more cheaply infrastructure systems schools in Chile access 40+ organisations designing conservation network, displaced and low-income through public procurement across eight US states computer science education Ukraine’s reconstruction spanning 35% of the groups access learning, reform in Chile, saving to enable more equitable to
build the digital skills as a model of integrity, Australian continent, entrepreneurship and government ~US$9M and sustainable water required for jobs of the future sustainability and efficiency creating jobs, maintaining employment in in the first
year management to deliver modern, culture, and keeping India, Mexico, Chile, people-centred infrastructure Australia’s deserts healthy Australia and Cameroon for Ukrainian citizens Complementary BHP Social Value pillars: Safe, inclusive and
Thriving, empowered Decarbonisation Healthy environment Indigenous partnerships Responsible supply chains future ready workforce communities Financial results 21 February 2023 22
Samarco and Renova Foundation Significant contribution to local economy: >20,000 jobs, R$28.1 billion spent on reparation and
compensation programs Renova Resettlement Samarco ~410,000 people have received indemnification ~70% of resettlement cases completed across ~12,000 direct and indirect jobs created by and emergency financial aid so far, totalling the region, with a
further ~15% in progress Samarco, and R$2.3 billion in taxes estimated R$13.6 billion paid to affected people since restart in December 2020 R$3.4 billion spent on resettlement 42 programs to restore the environment and Filling and
commissioning of Candonga1 Hydro The new communities of Bento Rodrigues and re-establish affected communities Power Plant is complete with operational restart Paracatu de Baixo are expected to be ready to
scheduled in February 2023 More than 9,600 direct and indirect jobs created receive residents from the first quarter of 2023 by Renova Força Local Program: approximately R$1.0 billion spent with local suppliers in Minas Gerais and
Espirito Santo states 1. Candonga is the Risoleta Neves Hydro Power Plant impacted by the dam failure. Note: Resettlement cases completed includes completed construction (handover to families in progress) or cash payment solution. R$2.3 billion
in taxes until December 2022 includes taxes generated from Samarco’s value chain activities. Financial results 21 February 2023 23
Continued capital allocation discipline Our balance sheet is strong H1 FY23 Operating Capital productivity productivity Net operating
cash flow US$6.8bn Maintenance capital US$1.1 bn Strong balance sheet Minimum 50% payout ratio dividend US$5.8bn Excess cash US$(0.9) bn Additional Organic Acquisitions/ Balance sheet
Buy-backs dividends development (Divestments) US$(5.6) bn US$2.9 bn US$0.0 bn US$1.9 bn US$(0.1) bn US$1.2 bn improvement US$0.1 bn major capital in steel making US$0.5 bn major capital in future facing
commodities (FFC) US$0.2 bn exploration Note: Excess cash includes total net cash outflow of US$0.8 billion (H1 FY22: US$1.4 billion) which comprises dividends paid to non-controlling interests of
US$0.5 billion (H1 FY22: US$1.3 billion); net investment and funding of equity accounted investments of US$0.4 billion (H1 FY22: US$0.2 billion) and an adjustment for exploration expenses of US$(0.1) billion (H1 FY22: US$(0.1) billion)
which is classified as organic development in accordance with the Capital Allocation Framework. Financial results 21 February 2023 24
Return on Capital Employed ROCE of 29.4% for H1 FY23 ROCE ROCE by asset (%) (%) 55 60 50 45 50 40 40 35 Antamina1 30 30 BMA WAIO
Escondida 25 20 20 15 10 Pampa Olympic Norte 10 Dam Nickel West 0 5 Potash 0 (10) FY18 FY19 FY20 FY21 FY22 FY23 0 10 20 30 40 50 Half year results (total) Full year results (total) Average capital employed (US$ billion) Note: ROCE represents profit
after tax excluding exceptional items and net finance costs (after tax), which are 1. Antamina: average capital employed represents BHP’s equity interest. annualised for half year results, divided by average capital employed. Average capital
employed is net assets less net Note: NSWEC has not been shown as ROCE is distorted by negative capital employed due to the debt for the last two reporting periods. rehabilitation provision being the primary balance remaining on Balance Sheet
following previous impairments. Financial results 21 February 2023 25
Balance sheet Net debt of US$6.9 billion and gearing of 12.9% Movements in net debt Debt maturity profile2 (US$ billion) (US$
billion) 6 8 0.6 6.9 0.3 0.5 6 8.7 4 4 2 0.3 (3.5) 2 0 (2) 0 (4) FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31—Post FY22 Free cash flow Dividends paid Dividends paid Lease Other H1 FY23 FY40 FY41 to NCI 1 additions movements US$ Euro Sterling C$
Bonds3 Bonds3 Bonds3 Bonds Subsidiaries 34% 27% 17% 5% 17% % of portfolio Capital markets 83% Asset financing 17% 1. NCIs: dividends paid to non-controlling interests of US$0.5 billion predominantly
relate to Escondida. 2. Debt maturity profile: all debt balances are represented in notional USD inception values and based on financial years; as at 31 December 2022; subsidiary debt is presented in accordance with IFRS 10 and IFRS 11. 3. Debt
maturity profile: includes hybrid bonds (2% of portfolio, in Euro) with maturity shown at first call date. Financial results 21 February 2023 26
BHP guidance Capital and exploration expenditure (US$ bn) 7.6 Cash basis. Including: Maintenance capital 3.5 Includes non-discretionary capital expenditure to maintain asset integrity, reduce risks, and meet compliance requirements. Improvement capital 2.6 Major capital in steel making 0.2 Major capital in FFC 1.0 Includes Jansen.
Exploration 0.4 Copper production (kt) 1,635 – 1,825 Escondida: 1,080 – 1,180 kt; Pampa Norte: 240 – 290 kt; Olympic Dam: 195 – 215 kt; Antamina: 120 – 140 kt (zinc 115 – 135 kt). Capital and exploration expenditure
(US$ bn) 3.1 Includes ~US$142 million exploration expenditure. Escondida Copper production (kt, 100% basis) 1,080 – 1,180 ~1,200 FY23e low end. ~1,200 kt represents average copper production per annum over medium term. Unit cash costs
(US$/lb) 1.25 – 1.45 <1.15 Excludes freight; net of by-product credits; based on an exchange rate of USD/CLP 830. FY23e tracking towards the upper end of full year guidance (at guidance exchange
rates). Financial results 21 February 2023 27
BHP guidance (continued) Iron Ore FY23e Medium term Iron ore production (Mt) 249 – 260 Western Australia Iron Ore: 246 – 256
Mt; Samarco 3 – 4 Mt. Capital and exploration expenditure (US$ bn) 2.2 Western Australia Iron Ore Iron ore production (Mt, 100% basis) 278 – 290 >300 Unit cash costs (US$/t) 18 – 19 <17 Excludes freight and government royalties;
based on an exchange rate of AUD/USD 0.72. FY23e tracking towards the upper end of full year guidance (at guidance exchange rates). Sustaining capital expenditure (US$/t) – ~5 Medium term average; +/- 50% in any given year. Excludes costs
associated with carbon abatement and automation programs. Coal FY23e Capital and exploration expenditure (US$ bn) 0.6 BMA Production (Mt, 100% basis) 58 – 64 FY23e low end. Unit cash costs (US$/t) 100 – 105 Excludes freight and royalties;
based on an exchange rate of AUD/USD 0.72. NSWEC Production (Mt, 100% basis) 13 – 15 Over the period to 2030, when we plan to cease mining, production is expected to remain broadly in line with current levels of 13 – 15 Mtpa. Unit cash
costs (US$/t) 84 – 91 Other FY23e Nickel production (kt) 80 – 90 Other capex (US$ bn) 1.6 Includes Nickel West, Jansen and other. Including: Jansen S1 (US$ m) 860 Financial results 21 February 2023 28
Key Underlying EBITDA sensitivities Approximate impact1 on H2 FY23 Underlying EBITDA of changes of: US$ million US$1/t on iron ore
price2 116 US$1/t on metallurgical coal price 10 US¢1/lb on copper price2 19 US$1/t on energy coal price2 8 US¢1/lb on nickel price 0.8 AUD (USË~1/A$) operations3 75 CLP (US¢0.10/CLP) operations3 12 1. EBITDA sensitivities:
assumes total volume exposed to price; determined on the basis of BHP’s existing portfolio. 2. EBITDA sensitivities: excludes impact of equity accounted investments. 3. EBITDA sensitivities: based on average exchange rate for the period.
Financial results 21 February 2023 29
BHP
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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BHP Group Limited |
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| Date: February 21, 2023 |
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By: |
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/s/ Stefanie Wilkinson |
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Name: |
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Stefanie Wilkinson |
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Group Company Secretary |
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