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Stock Review: BHP Group rises for a fifth consecutive day, a five-day rise of 6.0%


Dateline: Monday September 16, 2019
BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, has risen $A1.17 (3.1%) for a fifth consecutive day on Monday. This brought its five-day rise to $A2.17 (6.0%), compared with the All Ordinaries Index which rose 21.9 points (0.3%) in the five days for a relative price increase of 5.7%. The cumulative volume in the 5 days was at about its average 5-day volume of 7.3 million shares.BHP Group's stock last traded at $A38.30. There were 12,361,818 shares worth $A473.5 million traded today.

BHP GROUP DIVIDENDS
The company paid a dividend of $A1.15 per share; the ex-dividend date was September 05.

Stock Summary
CurrencyAustralian Dollar (AUD)
1 AUD = 0.69 USD
Last$A38.30
Shares Outstanding5,180,000,000
SectorMaterials
Market Cap$A198.4 billion ($US136.4 billion)
52-Week Range($A)27.56 - 40.99
Ave Daily Volume7.3 million


INDEX

SECTION 1 THE PAST WEEK

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 8 BHP GROUP PEER GROUP ANALYSIS & RANKING

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

SECTION 10 STOCK NEWS

SECTION 11 BHP GROUP FINANCIALS

SECTION 12 BHP GROUP BOARD OF DIRECTORS

SECTION 13 CORPORATE PROFILE

SECTION 14 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: BHP Group stock was up $US2.17 or 6.0% in the past week. Volume in the week equalled average trading of 36.5 million shares. It outperformed the All Ordinaries index in 3 out of 5 days.
DayBHP GroupClose price [AUD]Price change %Relative change %Comment
FridayRises for a fourth consecutive day, a four-day rise of 2.8%37.130.40.3Price rise on rising relative strength
ThursdayHits two-month high36.970.1-0.1Price rise on rising relative strength
WednesdayAdds $A3.1 billion in MCap, top heavyweight rise in All Ordinaries Index36.921.61.3Top Rise
TuesdayHits two-month high36.320.51.0Price rise on rising relative strength
MondayDecreases36.13-0.5-0.7Steepest Fall


SECTION 2 TODAY'S BULLISH SIGNALS

2.1 Short Selling
+ The current short volume is 0.4 times its own historical average of 0.1%. It plummeted 45.5% from the previous day, plummeted 47.6% from a week ago and plummeted 66.1% from a month ago, a significant bullish indicator.

2.2 Uptrend
Price/Moving Average Price and MACD:
- The Price/MAP of 1.08 for BHP is higher than the Price/MAP for the All Ordinaries Index of 1.05.
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 36.48 minus the 26-day EMA of 36.24 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
- The price to 50-day EMAP ratio is 1.1, a bullish indicator. The 50-day EMAP has increased to $A36.64. An increase is another bullish indicator.
- The price to 200-day MAP ratio is 1.08, a bullish indicator. In the past 200 days this ratio has exceeded 1.08, 128 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of $A37.11 is higher than the 200-day MAP of $A35.54, another bullish indicator.

Past Week:
- In the past week, volume was 1.0 times average and the shares were up 6.0%. Monday's close price is at a 2.6% premium to its 5-day Volume Weighted Average Price (VWAP) of $A37.33.

Past Month:
- The present value of $A1,000 (PV1000) invested one month ago in BHP Group is $A1,092, comprising a capital gain of $A57 and dividend reinvested of $A35.
PV$10001-week1-month1-year
BHP.ASX1,0601,0921,459
All Ordinaries Index1,0051,0251,081


Past Quarter:
- Rises to Falls: In the last three months the number of rises outnumbered falls 34:30 or 1.1:1.
- In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.
- In the last 21 trading sessions there has been a net rise of 9.1%; the stock has advanced fifteen times and the biggest one day rise was 3.2% on September 16.

2.3 High Price Performance Indicators and rank of BHP Group in the Australian market:
DescriptionBHP ValueRank In Market
Today's Trading Turnover$A473.5 millionIn Top 1%
MCap$A198.4 billionIn Top 1%


2.4 Undervaluation
Dividend Yield
- The relative yield of the stock, defined by its yield of 8.7%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 6.0% is 145.3%. This suggests the stock is undervalued in dividend yield terms.
MCap/Total Assets
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.2. Compared with the rest of the market the stock is undervalued.

2.5 Other Bullish Signals
- Total Liabilities/EBITDA of 3.5 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.
- Return on Capital Employed of 15.1% versus sector average of 15.0% and market average of 6.7%.
- Market Capitalization has increased by $A115.9 billion from $A82.5 billion to $A198.4 billion in the last 13 years. This increase comprises cumulative retained earnings (RETE) of $A53.9 billion and Created Market Value of $A62 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is exemplary at $A2.15.

SECTION 3 TODAY'S BEARISH SIGNALS

3.1 Overvaluation
Price/Earnings
- Price/Earnings of 37.8 versus sector average of 11.8 and market average of 18.0.
Price/Sales
- Price/Sales of 3.12 versus sector average of 1.9 and market average of 1.9. We estimate the shares are trading at a current year Price/Sales of 2.6 and a forward year Price/Sales of 2.2.
Price to Book
- The Price to Book of 2.3 higher than average of 1.8 for the Materials sector. We estimate the shares are trading at a current year Price to Book of 2.1 and a forward year Price to Book of 1.3.

3.2 Other Bearish Signals
- Return on Equity of 12.8% versus sector average of 13.4%.
- Return on Assets of 6.9% versus sector average of 7.5%.
- Net profit margin has averaged 5.4% in the last 3 years. This is lower than the sector average of 17.3% and suggests a low margin of safety.
- As per the Du Pont analysis, Return on Equity of 12.8% is lower than sector average of 13.4%. This is computed as net profit margin of 17.7% times asset turnover [sales/assets] of 0.39 times leverage factor [total assets/shareholders' equity] of 1.8.

3.3 Overbought/Bearish/Resistance Signals:
- At $A38.30 the price has risen above the upper Bollinger band resistance of $A38.02, indicating a downside risk for it to fall back within the band.
- The Relative Strength Index (RSI) of 91.9 has penetrated the overbought line of 70, suggesting the price gain of 11.7% in the last 14 days is unusually high.
- The stock is overbought according to the Williams % R indicator of -18.8, suggesting the price is close to its 14-day high of $A39.34.
- The Stochastic indicator of 93.8 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Earnings yield > Bond Yield
(All figures in %)
Earnings Yield2.6
Dividend Yield8.73
Bond Yield1.23


- Earnings yield of 2.6% is 2.2 times the 10-year bond yield of 1.23%.

4.2 Increasing EBIT Margins
YearsEBIT Margins (%)
Jun 201833.8
Jun 201730.82
Jun 2016-19.73
Jun 201519.62
Jun 201440.04

EBIT margin is positive and has increased from 30.82% to 33.8% in the past year.

4.3 Dividend yield > Bond yield
(All figures in %)
Dividend Yield8.73
Bond Yield1.23
Spread7.5

The dividend yield of 8.73% is 7.1 times the triple-A bond yield of 1.23%. This is above the benchmark of 0.67 set by Benjamin Graham.

4.4 Low Debt to Equity and reducing
YearsDebt to Equity (%)
Jun 201844.18
Jun 201747.23
Jun 20168.59
Jun 201548.13
Jun 201443.7

The debt to equity ratio of 44.2% is under a safe benchmark figure of 50%. Moreover, it has improved from 47.2% a year ago.

4.5 MCap: 5-Year Increase
In the past 5 years Market Capitalization has increased by $A12.9 billion from $A185.5 billion to $A198.4 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.
  PriceMCap (AUD B)MCap (US$ B)
Last$A38.30198.4136.4
1 Year ago$A28.93169.4121.2
2 Years ago$A23.65145.8117
3 Years ago$A16.59106.580.5
4 Years ago$A19.25126.289.4
5 Years ago$A27.32185.5169


4.6 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 17.3%. The Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in BHP would have produced a return of 43.9%.
BHPClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Sep 1638.33.3432.411.643.9
1 Yr ago28.931.5622.36.628.9
2 Yrs ago23.651.0642.66.449.0
3 Yrs ago16.590.41(13.8)2.1(11.7)
4 Yrs ago19.251.67(29.5)6.1(23.5)


Close 5 years ago $A27.32

4.7 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %1 yr3 yrs5 yrs10 yrs20 yrs30 yrs
BHP.ASX45.940.913.79.214.612

The annualised period-based Total Shareholder Returns [TSR %] for 1 yr, 3 yrs, 5 yrs, 10 yrs, 20 yrs and 30 yrs has consistently exceeded 9.1%.

4.8 Present Value of AUD1,000 invested 30 years ago
- The present value of AUD1,000 (PV1000) invested thirty years ago in BHP Group is $A30,946, including a capital gain of $A14,823 and dividend reinvested of $A15,123.
- 30 years Multiplier in AUD = 30.946x
- Annualized Total Shareholder Returns (TSR) in AUD = 12.0%

4.9 Present Value of USD1,000 invested 30 years ago
- The present value of USD1,000 (PV1000) invested thirty years ago in BHP Group is $US26,826, including a capital gain of $US13,128 and dividend reinvested of $US12,698.
- 30 years ago AUD 1 equalled USD 0.7699
- 30 years Multiplier in USD = 26.826x
- Annualized Total Shareholder Returns (TSR) in USD = 11.5%

- The average annual compound return on the share price in the last 5 years was 13.7%, exceeding the average annual compound return on the All Ordinaries Index of 4.5%.

4.10 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Turnover in Quarter$A15.6 billionIn Top 1%
MCap$US136.4 billionIn Top 1%
Annual Revenue$US43.6 billionIn Top 1%
Dividend Yield %8.7%In Top 8%


4.11 Increased ADVT past five years
Avg. Daily Volume Traded 12 months ended Sep 16, million shares
YearADVT
20197.3
20186.7
20178.3
201610.6
20157.0

In the past five years, Average Daily Volume of Trading (ADVT) has increased 3.9% to 7.3 million shares.

4.12 Increased VWAP
Past five years, 12 months ended Sep 16 (AUD)
YearHigh PriceVWAPLow Price
201940.9933.6527.56
201831.2326.5322.06
201723.8620.6616.5
201620.9215.4211.41
201527.6422.7217.56

In the past five years Volume Weighted Average Price (VWAP) has increased by 48.1% to $US33.65. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

4.13 Increased Average Daily Turnover
Past five years, 12 months ended Sep 16 (AUD million)
YearAverage Daily Turnover
2019245.8
2018178.3
2017172.2
2016166.5
2015162.3

In the past five years, average daily share turnover has increased 51.4% to $US245.8 million. This suggests increased liquidity.

4.14 Satisfies four criteria of Benjamin Graham
- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 2.7% is 2.2 times the triple-A bond yield of 1.2%.
- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 7.1 times the triple-A bond yield of 1.2%.
-"Total debt less than tangible book value"; total debt of USD26.8 Billion is less than tangible book value of USD59.9 Billion.
-"Current ratio of two or more"; current assets are 2.5 times current liabilities.

4.15 Satisfies 6 out of 9 criteria of Joseph Piotroski [pass mark 5]
- Positive net income.
- Positive operating cashflow.
- Return of Assets improvement [from 5.7% to 6.9%].
- Good quality of earnings [operating cashflow exceeds net income].
- Improvement in current ratio from 1.9 to 2.5.
- Total shares on issue unchanged.

4.16 Year-over-year (%) change in dividend:
PeriodendingFY 2018FY 2019
Dividend (AUD Cents)86.0115.0

Final dividend for FY 2019 was $US1.15. The year-on-year change was up 33.7% from 86.0c in the previous corresponding period FY 2018.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Low Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Price/Earnings37.8In Bottom Quartile
P/E * P/NTA86.18In Bottom Quartile


SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

6.1 YTD Aggregate Volumes

+ASX: BHP.ASX year-to-date volume is 1,128,684,399; volume 96.95% of aggregate. Average daily volume is 6,270,469.
Year-to-date (YTD) Volume Weighted Average Price (VWAP): $A37.0.
+OTCBB: BHPLF.OTCBB year-to-date volume is 34,673,691; volume 2.98% of aggregate. Average daily volume is 279,627.
Year-to-date (YTD) VWAP: $US26.0.
Using the current exchange rate of USD1 equals 1.4558AUD, the shares are at a 2.3% premium to the year-to-date VWAP on ASX.
+Frankfurt: BHP1.FRA year-to-date volume is 838,717; volume 0.07% of aggregate. Average daily volume is 6,819.
Year-to-date (YTD) VWAP: EUR23.0.
Using the current exchange rate of EUR1 equals 1.6119AUD, the shares are at a 0.2% premium to the year-to-date VWAP on ASX.
+YTD Aggregate volume: there were 1,164,196,807 shares of BHP Group worth AUD43.5 billion traded year-to-date.

6.2 The Best 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Sep 02-063.30.82.50.8
Aug 26-302.51.31.20.9
Sep 09-132.30.41.90.8

In the past quarter the week beginning Monday September 02 saw the highest weekly rise of 3.3% for a relative price increase of 2.5%.

6.3 The Worst 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Jul 29-Aug 02-5.1-0.5-4.60.8
Aug 05-09-3.8-2.7-1.21.1
Aug 12-16-3-2.7-0.31

In the past quarter the steepest fall of 5.1% took place in the week beginning Monday July 29.

6.4 Stock Trading Volume and Turnover in the past 3 months
TurnoverUS$10.7 billion
Avg daily turnoverUS$162.3 million
Volume403,404,451
Avg daily volume6,112,189


6.5 Period-based Price Change %
3-Year price change of 130.9% for BHP outperformed the change of 27.1% in the All Ordinaries index for a relative price change of 103.8%.
Price Change %QuarterYear3 Years
BHP-1.932.4130.9
Materials-1.6-5.925.6
All Ordinaries index2.28.127.1


6.6 Total Shares on Issue: Steady over 5 Years
In the past 5 years total shares on issue have been steady at 5.3 billion.

Year End (Jun 30)Total Shares on Issue
20185,323,000,000
20175,323,000,000
20165,322,000,000
20155,318,000,000
20145,321,000,000
20135,322,000,000


6.7 Beta & Standard Deviation
The Beta of this stock is 0.8. A Beta lower than 1 suggests this is a lower risk, lower return stock with volatility less than that of the market.
SD is a statistical measure of deviation from the mean. The SD of 1.4% gives it a percentile rank of 9 meaning that 9% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Beta0.8Lower risk, lower return
Standard Deviation1.4Less volatile

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

7.1 Past Quarter
The stock rose 34 times (51.5% of the time), fell 30 times (45.5% of the time) and was unchanged 2 times (3% of the time). The aggregate volume was 0.8 times average trading of 7.3 million shares. The value of $A1,000 invested 3 months ago is $A1,014 [vs $A1,038 for the All Ordinaries Index], including a capital loss of $A19 and dividend reinvested of $A32.

7.2 Year-to-Date
BHP Group lifts 25% in 2019
BHP Group Limited (ASX:BHP), lifted $A7.68 (or 25.1%) year-to-date (YTD) in 2019 to close at $A38.30 today. Compared with the All Ordinaries Index which has risen 18.8% YTD, this is a relative price increase of 6.3%.

7.3 Past Year
BHP Group climbs 32% in past year
BHP Group Limited (ASX:BHP), climbed $A9.37 (or 32.4%) in the past year to close at $A38.30 today. Compared with the All Ordinaries Index which has risen 8.1% over the same period, this is a relative price increase of 24.3%.
The stock rose 132 times (52.2% of the time), fell 115 times (45.5% of the time), was unchanged 5 times (2% of the time) and was untraded 1 time (0.4% of the time). The value of $A1,000 invested a year ago is $A1,459 [vs $A1,081 for the All Ordinaries Index], including a capital gain of $A324 and dividend reinvested of $A136.

7.4 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]
PV$A1,0003 mo ago1 yr ago3 yrs ago
BHP.ASX$A1,014$A1,459$A2,827
Materials sector$A976$A941$A1,257
All Ordinaries Index$A1,038$A1,081$A1,257


SECTION 8 BHP GROUP PEER GROUP ANALYSIS & RANKING

8.1 Global Peer Group (all figures in USD): Key Financials
In its Global Peer Group of 9 companies BHP is ranked first by MCap, second by Revenue, Total Assets, fourth by Net Profit, fifth by PV$1000 and sixth by Relative Strength.
Name (Code)Relative Str.
(6 mo)
MCapPV $1000
(1 yr)
RevenueNet ProfitTotal Assets
Rank of BHP615242
BHP Group (BHP)66136.4B1,396.843.6B3.7B112B
Rio Tinto (RIO)6989.1B1,493.940.5B13.9B90.9B
China Shenhua Energy - A Share (601088)5755.5B1,140.037.3B6.2B83B
Glencore (GLEN)3843.7B931.4219.8B3.4B128.7B
GMK Norilsk Nickel (GMKN)8838.3B1,844.111.7B3.1B15.3B
Anglo American (AAL)5733.8B1,376.727.6B3.5B52.2B
Barrick Gold (ABX)9130.3B1,773.37.2B(1.5B)22.6B
China Steel Preference (2002A)7324.9B1,190.311.3B680.9M21B
Rio Tinto (RIO)6924B1,497.740.5B13.6B90.9B

Global Peer Group: Relative Value Indicators
BHP is ranked fifth by P/Book, sixth by P/S, Turnover Rate and seventh by P/E.
CodeCountry CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
Rank of BHP  7656 
BHPAUAUDA38.3036.73.02.233.79.4
RIOGBGBX4,425.506.92.21.956.78.4
601088CNCNY19.729.81.51.320.45.5
GLENGBGBX261.3513.40.21.188.519.4
GMKNRURUB15,694.012.43.311.519.25.4
AALGBGBX1,985.608.81.21.381.510.9
ABXCACAD22.85 3.93.857.814.2
2002ATWTWD48.80     
RIOAUAUDA94.118.10.6 121.210.6


8.2 BuySellSignals Fundamentals Valuation Ranking: BHP Group vs Australian Market
Out of 1,433 stocks and 26 units in the Australian Market, BHP Group is ranked first by Market Cap $A, first by Revenue, first by Free Cash Flow and Thirty-fifth by Yield.
 Australian AvgBHPRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.6 B198.4 B1198.4 B BHP144.6 B CBA104.4 B CSL58,480 MAN
Revenue $A553.8 M63.5 B163.5 B BHP59 B RIO57 B WOW 
Free Cash Flow(123 M)17.9 B117.9 B BHP12.8 B WBC10.6 B CBA 
Yield (%)5.78.73518.99 JMS14.8 WHC13.1 YAL0.1 WTC
EBITDA Margin15.833.812189.1 EGF89.1 WAX88.7 CVC(88.6) NZM
ROE (%)10.612.8273  102.9 SIO-
ROA (%)2.036.9315 115.9 SIL53.7 UBI0.04 AMP
P/Earnings18.03x37.8x4312.2x GXY2.3x OLH2.3x GRR-
Total Debt/Equity1.8x0.4x605EOLTNETGO11.1x CTP
Price/Net Tangible Assets2.6x2.3x6200.1x SBR0.1x ALC0.1x C6C-
Premium to 52-Wk Low (%)23.238.987780.7 FSF1.3 GOW1.4 HXG2400 SPX
Discount to 52-Wk High (%)6.86.6137997.8 SF193.9 SIL92.7 BNO0.3 GMA

Negative values are shown in brackets.

8.3 Market Share
BHP Group vs Materials sector [Materials sector Total in Brackets]
Revenue of $US63.5 billion[26.9% of aggregate sector revenue of $A237.7 billion; up from 24.9% in the previous year.]
Net Profit of $US5.4 billion [14.2% of aggregate sector net profit of $A37.7 billion; down from 30.8% in the previous year.]
EBIT of $US21.5 billion [32.4% of aggregate sector EBIT of $A66.1 billion; down from 35.8% in the previous year.]

8.4 Share in Index
BHP Group is a constituent of the following indices. Its market capitalisation accounts for 53.0% of the combined MCap of the S&P/ASX 300 Metals and Mining (Industry).
Index NameMCap of Index (USD B)MCap as % of Index
S&P/ASX 300 Metals and Mining (Industry)258 53.0
S&P/ASX 200 Materials Index293 46.6
S&P/ASX 200 Resources323 42.2
S&P/ASX 20 Index774 17.6
S&P/ASX All Australian 501,032 13.2
S&P/ASX 50 Index1,036 13.2
S&P/ASX 100 Index1,239 11.0
S&P/ASX All Australian 2001,331 10.2
S&P/ASX 200 Index1,378 9.9
S&P/ASX 300 Index1,428 9.6
All Ordinaries Index1,494 9.1


8.5 Global Rank [out of 47,247 stocks] and Rank of BHP Group in the Asia Pacific Region [out of 2,048 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)136.4B651
Total Assets (US$)112B4946
Revenue (US$)43.6B2601
Net Profit (US$)3.7B2997
Return on Equity %12.89,322291
Net Profit Margin %17.76,665291
Price to Book2.224,605904
Price/Earnings36.718,129569
Yield %9.01,73443
PV1000 (1Year) USD*1,3974,666278
US$* Change (1Year) %24.86,510358


* 1 year ago AUD 1 = USD 0.72
Sep 16, 2019: AUD 1 equals USD 0.69

8.6 Rank of BHP Group in the All Ordinaries Index [out of 477 stocks], in the Total Australian Market [out of 1822 stocks] and in the Materials sector [out of 554 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Materials sector
MCap (AUD)198.4B111
Total Assets (AUD)163B661
Revenue (AUD)63.5B111
Net Profit (AUD)5.4B772
Return on Equity %12.816326149
Net Profit Margin %17.712726243
Price to Book2.3181874324
Price/Earnings37.829552277
Yield %8.7224316
PV1000 (1Year) AUD1,45978251103


8.7 Independent Ratings
+ Top 40 Miners:
BHP Group Limited is the largest by MCap among the PwC Top 40 Miners.
+ IHS Energy 50:
It was ranked 44 in IHS Energy's list of Top 50 Energy Companies 2013; a deterioration over a year from rank 23 in 2012.
+ PwC 100:
It was ranked 54 by MCap as at March 31, 2015 by PwC in the Top 100 Global companies; a deterioration over 6 years from rank 19 as at March 31, 2009.
+ FT 500:
It is the 76th largest by revenue in the FT Global 500.
+ Fortune 500:
It was ranked 350 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 168 in 2016.
+ Newsweek 500:
It was ranked 226 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 7.5% in Waste productivity, 7.3% in Water productivity and 5.2% in Carbon productivity.
+ Industryweek 1000:
It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 77.
+ Forbes 2000:
It is the 130th largest by revenue in the Forbes Global 2000.
+ BuySellSignals/News Bites:
It is placed 284/1366 in BuySellSignals News Bites' ranking of Australian performers in the past year, a percentile ranking of 79.
+ Vanguard Total World Stock ETF 7636:
The stock was one of 7636 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 2,557 shares in the period Jun 30, 2019 to Jul 31, 2019 worth $US105,253 at an estimated Volume Weighted Average Price (VWAP) of $US41.16. As at Jul 31, 2019, the Vanguard Total World Stock ETF held 974,609 shares worth $US27,667,487 or 0.15% by value of the ETF's portfolio [Ranked 94 out of 7636 by value and 2 out of 243 for Australia].

8.8 Long-Term Fundamental Ranking: 5 out of 5 [5 is best]
BHP Group is ranked number 1 out of 636 listed materials companies in the Australia with a market capitalization of $A198.4 billion.

The company paid a dividend of $A3.34 in the last twelve months. The dividend yield is high at 8.7%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

BHP Group Limited, the ADR market's largest Mining company by market cap, jumped $US10.87 (or 26.5%) in the trailing 12 months to September 13, 2019 to close at $US51.92. This means the ADR has outperformed 91% of NYSE-listed ADRs in the same period. Compared with the Bank of New York Mellon Composite ADR Index which has fallen 1.5% over the same period, this is a relative price increase of 28.0%. Average daily volume of 2.3 million ADRs in the trailing year was 0.9 times average daily volume in the previous year.

9.1 ADR Summary
SymbolBHP
PriceUSD 51.92
% Change YTD18.1
ISINUS0886061086
CUSIP088606108
Ratio1 ADR equals 2 ordinary shares
TypeSponsored
Avg. Daily Volume2,278,393


SECTION 10 STOCK NEWS

10.1 BHP Group Corporate Wires

10.1.1 Changes in Board (TTM)
March 19: BHP Group will appoint Independent Non-Executive Director
BHP Group will appoint Ian Cockerill as Independent Non-Executive Director. The effective date is Monday, April 01.

March 19: BHP Group will appoint Independent Non-Executive Director
BHP Group will appoint Susan Kilsby as Independent Non-Executive Director. The effective date is Monday, April 01.

February 28: BHP Group appoints Director
BHP Group has appointed Andrew Mackenzie as a Director. The effective date is Thursday, February 28.

January 22: BHP Group Company Secretary will resign
BHP Group Margaret Taylor,Company Secretary will resign. The effective date is Friday, March 01.

November 20 2018: Change of name to BHP Group
Following shareholder approval, BHP Billiton Limited and BHP Billiton Plc have changed their names to BHP Group Limited and BHP Group Plc, respectively, effective 19 November 2018.
BHP Group Plc's ticker on each of the LSE and JSE will change to "BHP" on 2 3 November 2018.
In connection with the name change, on 23 November 2018, BHP Group Plc's ISIN will change to GB00BH0P3Z91 and SEDOL will change to BH0P3Z9.
Source: Australian Securities Exchange

10.1.2 Dividends
August 21: BHP Group announces dividend
BHP Group today announced a final dividend of $A1.15 per share, franked to 100%. The ex dividend date is Thursday, September 05, 2019 and the record date is Friday, September 06, 2019 and it is payable on Wednesday, September 25.

10.1.3 Performance
July 17: BHP Group: Quarterly Activities Report
Exceeded full year production guidance for petroleum and met revised guidance for copper and iron ore. Metallurgical coal and energy coal production marginally below guidance predominantly as a result of lower than expected wash plant yield s and adverse weather impacts during the June 2019 quarter.
Source: Australian Securities Exchange

April 17: BHP Group: Quarterly Activities Report
Production guidance for the 2019 financial year remains unchanged for petroleum, copper, metallurgical coal and energy coal. Iron ore production guidance decreased to between 26 5 and 27 0 Mt (100% basis), reflecting impacts of Tropical Cyclone Veronica.
Source: Australian Securities Exchange

January 22: BHP Group: Quarterly Activities Report
Production guidance for the 2019 financial year remains unchanged for petroleum, iron o re, metallurgical coal and e nergy c oal. Total copper production guidance increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.
Source: Australian Securities Exchange

October 17 2018: BHP Billiton: Quarterly Activities Report
Group copper equivalent production increased by 2 % in the September 2018 quarter despite maintenance across a number of operations. Volumes for the 2019 financial year are expected to be broadly in line with last year (1).
Full year production guidance remains unchanged for petroleum, iron ore, metallurgical coal and energy coal. Total copper production guidance reduced by approximately 3% to between 1,62 0 and 1,705 kt reflecting lower volumes now expected at Spence ( electro - winning plant outage ) and Olympic Dam ( acid plant outage).
Source: Australian Securities Exchange

September 18 2018: BHP US Annual Report (Form 20-F) 2018
Please find attached a copy of BHP's 2018 US Annual Report (Form 20-F), which has been filed with the United States Securi ties and Exchange Commission.
This document has been prepared in accordance with t he requirements of the Un ited States Securities and Exchange Commission and, as such, does not co mply with the reporting requirements under the Australasian Code for Reporting of Exploration Resu lts, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).
Source: Australian Securities Exchange

10.1.4 Press Releases
June 07: BHP Group: Tailings Facilities Management Presentation
BHP will be hosting an investor briefing today on the management of tailings storage facilities across the portfolio.
The purpose of the briefing is to provide an update on BHP's approach to tailings storage facilities ' management and to give further information on the number, design and classification of tailings faci lities.
Source: Australian Securities Exchange

February 13: BHP Group: Conventional petroleum update
The BHP Board has today approved US$696 million (BHP share) in funding to develop the Atlantis Phase 3 p roject in the US Gulf of Mexico. This follows sanction by BP, as the O perator, of the Atlantis Phase 3 project, announced in January 2019.
Source: Australian Securities Exchange

November 27 2018: BHP copper exploration program update
BHP today confirmed identification of a potential new iron oxide, copper, gold ( IOCG ) mineralised system, located 65 kilometres to the south east of BHP's operations at Olympic Dam in South Australia
Source: Australian Securities Exchange

November 21 2018: BHP Billiton: Capital Allocation Briefing
BHP will be holding an investor and analyst briefing today in Melbourne on BHP's Capital Allocation Framework.
The purpose of the briefing is to provide greater detail in relation to BHP's capital allocation processes, and greater transparency on BHP's approach to capital allocation and investment decisions.
Source: Australian Securities Exchange

November 01 2018: BHP completes sale of Onshore US assets
BHP has completed the sale of its intere sts in the Eagle Ford, Haynesville and Permian Onshore US oil and gas assets to BP America Production Company (a subsidiary of BP Plc) ( BP ) for a gross considerat ion of US$10.5 billion.
Source: Australian Securities Exchange

October 04 2018: BHP Billiton: Samarco Compensation Programs
BHP notes recent media reports concerni ng an agreement with the State Prosecutor of Mariana in the State of Minas Gerais in relation to compensation for the impacts of the Samarco dam failure on 5 November 2015.
The agreement outlines the process and principles for the negotiation and implementation by the Renova Foundation of the formal compensation program for impacted people in Mariana, Minas Gerais.
Source: Australian Securities Exchange

SECTION 11 BHP GROUP FINANCIALS

11.1 Financials Summary
Year endedJun 2018Jun 2017Jun 2016
Sales (USD B)43.636.130.9
Pretax (USD B)14.811.1(7.3)
Net (USD B)3.75.9(6.4)
EPS (USD)0.6961.107(1.2)

+ Net profit was down 37.1% from US$5.9 billion in 2017 to US$3.7 billion in 2018.
+ Earnings Per Share (EPS) was down 37.1% from $US1.11 to 69.60c.
11.2 Half-Yearly Report: Key Parameters
Interim Report (Half Year) Analysis H2 2018: BHP Group reports 87% rise in Half-Yearly Net Profit

BHP Group (ASX:BHP), announced net profit of $US3.8b for the half year-ended 31 December 2018, up 86.8% from the previous corresponding period.

Compared with the previous corresponding period [PCP; H/31 Dec 2017], year-over-year [y.o.y.] Revenue was up 1.1% and Net Profit was up 86.8%.
Half year-ended31 Dec 201831 Dec 2017
EPS, c71.038.0
PCP growth in EPS %86.84-36.67
Net Profit$US3.8b$US2.0b
PCP growth in Net Profit %86.8-37.11


Major changes compared with previous corresponding period [Year-on-Year]:
Favourable Changes:
- Net profit up 86.8% from $US2.0b to $US3.8b
- EBIT to Sales up from 35.3% to 36.5%
- Profit before tax to Sales up from 31.7% to 32.8%
- Profit after tax to Sales up from 9.8% to 18.1%
Unfavourable Changes:
- Interest expenses to Sales up from 3.6% to 3.7%

11.3 Financial Results as reported (Annual)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In $US Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED
Description$US Million$US Million 
Jun 3020182017Change %
Continuing operations   
Revenue43,63836,135Up 20.8
Other income247662Down 62.7
Expenses excluding net finance costs-28,036-24,515Deterioration 14.4
Profit/(loss) from equity accounted investments related impairments and expenses147272Down 46.0
Profit from operations15,99612,554Up 27.4
Financial expenses-1,567-1,560Deterioration 0.4
Financial income322143Up 125.2
Net finance costs-1,245-1,417Improved 12.1
Profit before taxation14,75111,137Up 32.5
Income tax expense-6,879-4,276Deterioration 60.9
Royalty-related taxation (net of income tax benefit)-128-167Improved 23.4
Total taxation expense-7,007-4,443Deterioration 57.7
Profit/(loss) after taxation from Continuing operations7,7446,694Up 15.7
Discontinued operations   
Loss after taxation from Discontinued operations-2,921-472Deterioration 518.9
Profit/(loss) after taxation from Continuing and Discontinued operations4,8236,222Down 22.5
Attributable to non-controlling interests1,118332Up 236.7
Attributable to BHP shareholders3,7055,890Down 37.1
Basic earnings/(loss) per ordinary share (cents)69.60c$US1.11Down 37.1
Diluted earnings/(loss) per ordinary share (cents)69.40c$US1.10Down 37.1
Basic earnings/(loss) from Continuing operations per ordinary share (cents)$US1.25$US1.20Up 4.3
Diluted earnings/(loss) from Continuing operations per ordinary share (cents)$US1.25$US1.20Up 4.3
Weighted average number of shares5,323,000,0005,323,000,000Steady
Weighted average number of shares5,337,000,0005,336,000,000Up


BALANCE SHEET AS REPORTED
Description$US Million$US Million 
Jun 3020182017Change %
ASSETS   
Current assets   
Cash and cash equivalents15,87114,153Up 12.1
Trade and other receivables3,0962,836Up 9.2
Other financial assets20072Up 177.8
Inventories3,7643,673Up 2.5
Assets held for sale11,939  
Current tax assets106195Down 45.6
Other154127Up 21.3
Total current assets35,13021,056Up 66.8
Non-current assets   
Trade and other receivables180803Down 77.6
Other financial assets9991,281Down 22.0
Inventories1,1411,095Up 4.2
Property plant and equipment67,18280,497Down 16.5
Intangible assets7783,968Down 80.4
Investments accounted for using the equity method2,4732,448Up 1.0
Deferred tax assets4,0415,788Down 30.2
Other6970Down 1.4
Total non-current assets76,86395,950Down 19.9
Total assets111,993117,006Down 4.3
LIABILITIES   
Current liabilities   
Trade and other payables5,9775,551Up 7.7
Interest bearing liabilities2,7361,241Up 120.5
Liabilities held for sale1,222  
Other financial liabilities138394Down 65.0
Current tax payable1,7732,119Down 16.3
Provisions2,0251,959Up 3.4
Deferred income118102Up 15.7
Total current liabilities13,98911,366Up 23.1
Non-current liabilities   
Trade and other payables35Down 40.0
Interest bearing liabilities24,06929,233Down 17.7
Other financial liabilities1,0931,106Down 1.2
Non-current tax payable137  
Deferred tax liabilities3,4723,765Down 7.8
Provisions8,2238,445Down 2.6
Deferred income337360Down 6.4
Total non-current liabilities37,33442,914Down 13.0
Total liabilities51,32354,280Down 5.4
Net assets60,67062,726Down 3.3
EQUITY   
Share capital - BHP Billiton Limited1,1861,186Steady
Share capital - BHP Billiton Plc1,0571,057Steady
Treasury shares-5-3Deterioration 66.7
Reserves2,2902,400Down 4.6
Retained earnings51,06452,618Down 3.0
Total equity attributable to BHP shareholders55,59257,258Down 2.9
Non-controlling interests5,0785,468Down 7.1
Total equity60,67062,726Down 3.3


CASH FLOW AS REPORTED
Description$US Million$US Million 
Jun 3020182017Change %
Operating activities   
Profit before taxation14,75111,137Up 32.5
Adjustments for:   
Depreciation and amortisation expense6,2886,184Up 1.7
Impairments of property plant and equipment financial assets and intangibles333193Up 72.5
Net finance costs1,2451,417Down 12.1
(Profit)/loss from equity accounted investments related impairments and expenses-147-272Improved 46.0
Other597194Up 207.7
Changes in assets and liabilities:   
Trade and other receivables-662267Deterioration
Inventories-182-687Improved 73.5
Trade and other payables719512Up 40.4
Provisions and other assets and liabilities7-333Recovery
Cash generated from operations22,94918,612Up 23.3
Dividends received709636Up 11.5
Interest received290164Up 76.8
Interest paid-1,177-1,148Deterioration 2.5
Settlement of cash management related instruments-292-140Deterioration 108.6
Net income tax and royalty-related taxation refunded17337Down 95.0
Net income tax and royalty-related taxation paid-4,935-2,585Deterioration 90.9
Net operating cash flows from Continuing operations17,56115,876Up 10.6
Net operating cash flows from Discontinued operations900928Down 3.0
Net operating cash flows18,46116,804Up 9.9
Investing activities   
Purchases of property plant and equipment-4,979-3,697Deterioration 34.7
Exploration expenditure-874-966Improved 9.5
Exploration expenditure expensed and included in operating cash flows641610Up 5.1
Net investment and funding of equity accounted investments204-234Recovery
Proceeds from sale of assets89529Down 83.2
Proceeds from divestment of subsidiaries operations and joint operations net of their cash 187 
Other investing-141-153Improved 7.8
Net investing cash flows from Continuing operations-5,060-3,724Deterioration 35.9
Net investing cash flows from Discontinued operations-861-437Deterioration 97.0
Net investing cash flows-5,921-4,161Deterioration 42.3
Financing activities   
Proceeds from interest bearing liabilities5281,577Down 66.5
(Settlements)/proceeds from debt related instruments-21836Deterioration
Repayment of interest bearing liabilities-4,188-7,114Improved 41.1
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts-171-108Deterioration 58.3
Dividends paid-5,220-2,921Deterioration 78.7
Dividends paid to non-controlling interests-1,582-575Deterioration 175.1
Net financing cash flows from Continuing operations-10,851-9,105Deterioration 19.2
Net financing cash flows from Discontinued operations-40-28Deterioration 42.9
Net financing cash flows-10,891-9,133Deterioration 19.2
Net increase in cash and cash equivalents from Continuing operations1,6503,047Down 45.8
Net (decrease)/increase in cash and cash equivalents from Discontinued operations-1463Deterioration
Cash and cash equivalents net of overdrafts at the beginning of the financial year14,10810,276Up 37.3
Foreign currency exchange rate changes on cash and cash equivalents56322Down 82.6
Cash and cash equivalents net of overdrafts at the end of the financial year15,81314,108Up 12.1


Margins %
Jun 3020182017
EBITDA Margin33.830.8
Earnings from Cont. Ops. Margin33.830.8
Net Income Margin17.718.5


11.4 Annual Report: Key Parameters
FY2018 Annual Report: BHP Billiton profits hit by 37.1% fall

BHP Billiton (ASX:BHP) reported net profit for the year-ended 30 June 2018 of $US3.7b, down 37.1% from $US5.9b in the previous year.

Major changes compared with previous year:
Favourable Changes:
- EBIT Margin up from 30.8% to 33.8%
- EBIT to total assets up from 9.5% to 13.2%
- Total revenue to total assets up from 0.3 to 0.4
- Profit before tax to Sales up from 30.8% to 33.8%
- Interest revenue to Sales up from 0.4% to 0.7%
- Debt to Equity down 6.4% from 0.5 to 0.4
- Current ratio up 35.7% from 1.9 to 2.5
- Total current assets to Total Assets up from 18% to 31.4%
- Total Liabilities to EBITDA of 3.5 compares favourably with the Joseph Piotroski benchmark of <5. This ratio has improved by 28.5% from the previous year's ratio of 4.9.
- Total Liabilities to Operating Cash Flow of 2.8 compares favourably with the Joseph Piotroski benchmark of <4. This ratio has improved by 13.9% from the previous year's ratio of 3.2.
Unfavourable Changes:
- Net profit slumps 37.1% from $US5.9b to $US3.7b
- EPS slumps 36.9% from 111.0c to 70.0c
- Total non-current assets to Total Assets down from 82% to 68.6%
- Fixed Assets to Total Assets down from 68.8% to 60%
- Future income tax benefit to Total Assets down from 4.9% to 3.6%
Note:
- Retained earnings to total assets steady at 45.6%
- Current Inventory to Total Assets up from 3.1% to 3.4%
- Net tangible assets per share steady at $US11.25

Annual Report [Year-on-year comparison: 2018 vs 2017]
Company Name : BHP Billiton Limited (BHP)   
June 3020182017Change
Description$US m$US m(%)
Sales Revenue43,63836,135Up 20.8
EBITDA14,75111,137Up 32.5
EBIT14,75111,137Up 32.5
Pre-Tax Profit/(Loss)14,75111,137Up 32.5
Profit/(Loss) after Tax3,7055,890Slumps 37.1
Current Assets35,13021,056Up 66.8
Current Liabilities13,98911,366Up 23.1
Shareholders' Funds60,67062,726Down 3.3
Total Liabilities51,32354,280Down 5.4
Total Assets111,993117,006Down 4.3
Non-Current Debt24,06929,233Down 17.7
Total Debt26,80529,627Down 9.5
Operating Cash Flow18,46116,804Up 9.9
Net Assets60,67062,726Down 3.3
Net Tangible Assets59,89258,758Up 1.9
AuditorKPMG  


Year-on-year comparison of Per Share figures
June 3020182017Change (%)
Description$US $US  
Sales8.26.8Up 20.8
EBIT2.82.1Up 32.5
EBITDA2.82.1Up 32.5
Cash32.7Up 13
Shareholders' Funds11.411.8Down 3.3
Total Liabilities9.610.2Down 5.4
Total Assets2122Down 4.3
Non-Current Debt4.55.5Down 17.7
Total Debt55.6Down 9.5
Net Tangible Assets11.211Up 1.9
EPS Final70c111 cSlumps 36.9
   EPS Factor*1.0  

* EPS Factor = Net Profit change/ EPS change

Year-on-year comparison of Performance Ratios
June 3020182017Change (%)
Return on Equity (%)12.810.7Up 19.6
Return on Assets (%)6.95.7Up 21.1
Total debt to net tangible assets (%)44.850.4Down 11.1
Total Liabilities to EBITDA3.54.9Down 28.5
Total Liabilities to Operating Cash Flow2.83.2Down 13.9
Debt/Equity0.40.5Down 6.4
Total Liabilities/Total Assets (Steady % from 0.46 to 0.46)0.50.5Steady
Current Ratio2.51.9Up 35.7
Common Size Ratios by Assets %   
Total non-current assets to Total Assets 68.6 82.0 Down 16.3
Fixed Assets to Total Assets 60.0 68.8 Down 12.8
Total current assets to Total Assets 31.4 18.0 Up 74.5
Future income tax benefit to Total Assets 3.6 4.9 Down 27.2
Current Inventory to Total Assets 3.4 3.1 Up 8.3
Common Size Ratios by Sales %   
Profit before tax to Sales 33.8 30.8 Up 9.7
Interest revenue to Sales 0.7 0.4 Up 76.9
Tax expenses to Sales (16.1) (12.3) Down 30.9


5-year record of growth and performance:
In the last 5 years Total Revenue averaged $US43B, EBITDA averaged $US13.6B and Net Profit averaged $US4.8B. Compound Annual Growth Rate (CAGR) averaged -9.3% for Total Revenue, -19.9% for Net Profit and -12.1% for EBITDA.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
Total Revenue43.643(9.3)
EBITDA14.813.6(12.1)
Operating Profit14.810.3(6.9)
Net Profit3.74.8(19.9)


5-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2018 Net Profit Margin of 17.7% was above its 5-year Avg of 9.0%
Description20185-year Avg
EBITDA Margin33.827.7
Operating Profit Margin33.820.9
Net Profit Margin17.79
Return on Equity12.86.6
Return on Assets6.93.6
Return on Capital Employed15.19

All Figures in %

11.5 Footprint of Low Tax Subsidiaries
Corporate Tax rate of BHP Group in country of incorporation:
100% owned subsidiaries:
SubsidiaryIncorporated inCorporate Tax Rate (%)
BHP Billton Petroleum Great Britain LimitedUK19
BHP Billton Freight Singapore Pte LimitedSingapore17
BHP Billton International Services LimitedUK19
BHP Billton Marketing Asia Pte Ltd.Singapore17


11.6 Dividend History
Trailing 12 months dividend has improved from AUD0.4 in 2016 to AUD3.34 in 2019.
Date PaidValue (AUD)Type
05 Sep 20191.15Final
07 Mar 20190.78Interim
10 Jan 20191.41Special
Tr 12 Months3.34 
06 Sep 20180.86Final
08 Mar 20180.71Interim
2017 - 20181.57 
07 Sep 20170.54Final
09 Mar 20170.52Interim
2016 - 20171.06 
01 Sep 20160.18Final
10 Mar 20160.22Interim
2015 - 20160.4 
09 Sep 20150.86Final
11 Mar 20150.81Interim
2014 - 20151.67 


SECTION 12 BHP GROUP BOARD OF DIRECTORS

12.1 Board of Directors and years since appointment
NameDesignationSince Appointment
Andrew MackenzieChief Executive Officer, Director6 Yrs, 4 Mos
Ken MacKenzieChairman, Independent Non-Executive Director2 Yrs, 11 Mos
Peter BeavenChief Financial Officer4 Yrs, 11 Mos
Malcolm BroomheadDirector9 Yrs, 6 Mos
Lindsay MaxstedDirector8 Yrs, 6 Mos
Wayne MurdyDirector10 Yrs, 3 Mos
Carolyn HewsonDirector9 Yrs, 6 Mos
Anita FrewIndependent Director-
Shriti VaderaIndependent Director-
Ian CockerillIndependent Non-Executive Director5 Mos
Terry BowenIndependent Non-Executive Director1 Yr, 11 Mos
Susan KilsbyIndependent Non-Executive Director5 Mos
John MogfordIndependent Non-Executive Director1 Yr, 11 Mos


12.2 Resignations in the past 2 years
NameDesignationDate of Resignation
Margaret TaylorCompany Secretary01 March 2019
Megan PepperCompany Secretary12 September 2018
Jacques NasserChairman,Non-Executive Director01 September 2017
John SchubertDirector17 November 2016


12.3 Profiles
Andrew Mackenzie
CEO & Director
Experience:
Andrew commenced as Chief Executive Officer in May 2013. He joined BHP Billiton in November 2008 as Chief Executive Non-Ferrous. Prior to BHP Billiton, Andrew worked at Rio Tinto, where he was Chief Executive of Diamonds and Minerals, and BP, where he held a number of senior roles, including Group Vice President for Technology and Engineering, and Group Vice President for Chemicals. ​
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Director: The present value of AUD1,000 invested on the appointment date of February 28, 2019 at close price of $A35.30 is $A1,141, including a capital gain of $A85 and dividend reinvested of $A56.

Ken MacKenzie
Chairman & Independent Non-Executive Director
Ken has been a Director of BHP Billiton Limited and BHP Billiton Plc since September 2016. He was appointed Chairman with effect from 1 September 2017.
Skills and experience:
Ken has extensive global and executive experience, and a deeply strategic approach. From 2005 until 2015, he served as the Managing Director and Chief Executive Officer of Amcor Limited, a global packaging company with operations in over 40 countries. During his 23 year career with Amcor, Ken gained extensive experience across all of Amcor's major business segments in developed and emerging markets in the Americas, Australia, Asia and Europe.
Other directorships and offices (current and recent):
Former Managing Director and Chief Executive Officer of Amcor Limited (from July 2005 to April 2015).
Advisory Board member of American Securities Capital Partners LLC (since January 2016).
Advisory Board member of Adamantem Capital (since September 2016).
Former Senior Adviser to McKinsey & Company (from January 2016 to June 2017).
Board Committee memberships:
Chairman of the Nomination and Governance Committee.
Member of the Sustainability Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of September 22, 2016 at close price of $A17.65 is $A2,625, including a capital gain of $A1,170 and dividend reinvested of $A455.

Peter Beaven
CFO
Experience:
Peter was appointed Chief Financial Officer in October 2014. Previously he was the President of Copper and prior to that appointment in May 2013, President of Base Metals, President of Manganese, and Vice President and Chief Development Officer for Carbon Steel Materials. He has wide experience across a range of regions and businesses in BHP Billiton, UBS Warburg, Kleinwort Benson and PricewaterhouseCoopers. Peter holds a Bachelor of Accountancy from University of Natal, Pietermaritzburg, South Africa and is a Chartered Accountant.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as CFO: The present value of AUD1,000 invested on the appointment date of October 01, 2014 at close price of $A25.94 is $A1,966, including a capital gain of $A477 and dividend reinvested of $A490.

Carolyn Hewson
Director
Carolyn has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2010.
Skills and experience:
Carolyn is a former investment banker and has over 30 years' experience in the finance sector. She was previously an Executive Director of Schroders Australia Limited and has extensive financial markets, risk management and investment management expertise. Carolyn is a former Director of BT Investment Management Limited, Westpac Banking Corporation, AMP Limited, CSR Limited, AGL Energy Limited, the Australian Gas Light Company, South Australian Water and the Economic Development Board of South Australia.
Other directorships and offices (current and recent):
Member of Federal Government Growth Centres Advisory Committee (from January 2015).
Director of Stockland Group (since March 2009).
Trustee Westpac Foundation (since May 2015).
Former Member of Australian Federal Government Financial Systems Inquiry (from January 2014 to December 2014).
Former Member of the Advisory Board of Nanosonics Limited (from June 2007 to August 2015).
Former Director of BT Investment Management Limited (from December 2007 to December 2013).
Former Director of Australian Charities Fund Operations Limited (from June 2000 to February 2014).
Former Director and Patron of the Neurosurgical Research Foundation (from April 1993 to December 2013).
Former Trustee and Chairman of Westpac Buckland Fund (from January 2011 to December 2013) and Chairman of Westpac Matching Gifts Limited (from August 2011 to December 2013), together known as the Westpac Foundation.
Former Director of Westpac Banking Corporation (from February 2003 to June 2012).
Board Committee membership:
Chairman of the Remuneration Committee.
Member of the Nomination and Governance Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2010
In the last 5 years the average annualized return to shareholders was 13.7%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,900, a gain of $A402 and dividend reinvested of $A498.

Lindsay Maxsted
Director
Lindsay has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2011.
Skills and experience:
Lindsay is a corporate recovery specialist who has managed a number of Australia's largest corporate insolvency and restructuring engagements and, until 2011, continued to undertake consultancy work in the restructuring advisory field. He was the Chief Executive Officer of KPMG Australia between 2001 and 2007. Lindsay is the Board's nominated 'audit committee financial expert' for the purposes of the US Securities and Exchange Commission Rules, and the Board is satisfied that he has recent and relevant financial experience for the purposes of the UK Financial Conduct Authority's Disclosure and Transparency Rules and the UK Corporate Governance Code.
Other directorships and offices (current and recent):
Chairman of Westpac Banking Corporation (since December 2011) and a Director (since March 2008).
Chairman of Transurban Group (since August 2010) and a Director (since March 2008).
Director and Honorary Treasurer of Baker IDI Heart and Diabetes Institute (since June 2005).
Board Committee membership:
Chairman of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2011
In the last 5 years the average annualized return to shareholders was 13.7%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,900, a gain of $A402 and dividend reinvested of $A498.

Wayne Murdy
Director
Wayne has been a Director of BHP Billiton Limited and BHP Billiton Plc since June 2009.
Skills and experience:
Wayne has a background in finance and accounting, where he has gained comprehensive experience in the financial management of mining, oil and gas companies during his career with Getty Oil, Apache Corporation and Newmont Mining Corporation. He served as the Chief Executive Officer of Newmont Mining Corporation from 2001 to 2007 and Chairman of Newmont from 2002 to 2007. Wayne is also a former Chairman of the International Council on Mining and Metals, a former Director of the US National Mining Association and a former member of the Manufacturing Council of the US Department of Commerce.
Other directorships and offices (current and recent):
Director of Weyerhaeuser Company (since January 2009).
Former Director of Qwest Communication International Inc (from September 2005 to April 2011).
Former Chief Executive Officer (from January 2001 to June 2007) and Chairman (from January 2002 to December 2007) of Newmont Mining Corporation.
Former Chairman of the International Council of Mining and Metals (from January 2004 to December 2006).
Former Director of the US National Mining Association (from January 2002 to December 2007).
Board Committee membership:
Member of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: June 2009
In the last 10 years the average annualized return to shareholders was 9.2%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A2,410, a gain of $A449 and dividend reinvested of $A961.

Malcolm Broomhead
Director
Malcolm has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2010.
Skills and experience:
Malcolm has extensive experience in running industrial and mining companies with a global footprint and broad global experience in project development in many of the countries in which BHP Billiton operates. He was Managing Director and Chief Executive Officer of Orica Limited from 2001 until September 2005. Prior to joining Orica, Malcolm held a number of senior positions at North Limited, including Managing Director and Chief Executive Officer and, prior to that, held senior management positions with Halcrow (UK), MIM Holdings, Peko Wallsend and Industrial Equity.
Other directorships and offices (current and recent):
Chairman of Orica Limited (since January 2016).
Chairman of Asciano Limited (since October 2009).
Former Director of Coates Group Holdings Pty Ltd (from January 2008 to July 2013).
Director of the Walter and Eliza Hall Institute of Medical Research (since July 2014).
Board Committee membership:
Member of the Sustainability Committee. Member of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2010
In the last 5 years the average annualized return to shareholders was 13.7%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,900, a gain of $A402 and dividend reinvested of $A498.

Shriti Vadera
Independent Director
Shriti has been a Director of BHP Billiton Limited and BHP Billiton Plc since January 2011 and the Senior Independent Director of BHP Billiton Plc since 14 August 2015.
Skills and experience: Shriti brings wide-ranging experience in finance, economics and public policy as well as extensive experience of emerging markets and international institutions. Shriti is Chairman of Santander UK and has been a Director of AstraZeneca since 2011. She was an investment banker with S G Warburg / UBS from 1984 to 1999, on the Council of Economic Advisers, HM Treasury 1999 to 2007, Minister in the UK Department of International Development in 2007, Minister in the Cabinet Office and Business Department 2008 to 2009 with responsibility for dealing with the financial crisis, G20 Adviser 2009 to 2010, and advised Governments, banks and investors on the Eurozone crisis, banking sector, debt restructuring and markets from 2010 to 2014.

Anita Frew
Independent Director
Anita has been a Director of BHP Billiton Limited and BHP Billiton Plc since September 2015.
Skills and experience: Anita Frew has extensive board, strategy, marketing, governance and risk management experience in the chemicals, engineering, water and finance industries. She is the Chairman of Croda International Plc and Deputy Chairman of Lloyds Banking Group. She was until recently the Chairman of Victrex Plc, Senior Independent Director of Aberdeen Asset Management Plc and IMI Plc, and a Non-executive Director of Northumbrian Water.

John Mogford
Independent Non-Executive Director
Mr Mogford has over 40 years of experience in the oil and gas sector, including 33 years at BP Plc in technical, operational and leadership roles. While at BP, Mr Mogford acquired deep experience across the oil and gas business, working in the areas of exploration, downstream, upstream, safety and technology. Mr Mogford also has private equity and strategic experience in the energy sector, holding the roles of Managing Director and Operating Partner at First Reserve Corporation from 2009 to 2015, and as a Senior Advisor to the Head of the Oil and Gas Practice at Nomura Investment Bank from 2010 to 2013.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of October 01, 2017 at close price of $A22.27 is $A1,989, including a capital gain of $A720 and dividend reinvested of $A269.

Ian Cockerill
Independent Non-Executive Director
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of April 01, 2019 at close price of $A37.81 is $A1,044, including a capital gain of $A13 and dividend reinvested of $A31.

Susan Kilsby
Independent Non-Executive Director
Mr Cockerill has extensive mining experience, in cluding in chief executive, operational, strategic and technical roles. He was former ly the Chief Executive Officer of Anglo Coal and Gold Fields Limited, and a senior executive with AngloGold Ashanti and Anglo American Group. Mr Cockerill has considerable public company board experience, including as a Non - executive Director of Orica Limited, Ivanhoe Mines Ltd and Endeavour Mining Corporation, and as Chairman of the board of Blackrock World Mining Trust plc.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of April 01, 2019 at close price of $A37.81 is $A1,044, including a capital gain of $A13 and dividend reinvested of $A31.

Terry Bowen
Independent Non-Executive Director
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of October 01, 2017 at close price of $A22.27 is $A1,989, including a capital gain of $A720 and dividend reinvested of $A269.

SECTION 13 CORPORATE PROFILE

13.1 Stock Identifiers
ISIN: AU000000BHP4
PermID: 4295856983
CUSIP: Q1498M100

13.2 Contact details
Websitehttp://www.bhpbilliton.com/
Physical AddressLevel 18, 171 Collins Street, MELBOURNE, VIC, AUSTRALIA, 3000
Phone(61) 1300 55 47 57
Fax(61 3) 9609 3015
EmailJames.Agar@bhpbilliton.com


13.3 Industry & Sector
Classification LevelName of Sector
Business SectorMineral Resources
Industry GroupMetals & Mining
IndustrySpecialty Mining & Metals
Economic SectorBasic Materials


13.4 Primary Exchange and Other Listings
ExchangeTickerLast PriceAvg. Daily VolumeVolume % of TotalVol Index*
ASXBHP$A38.307,305,45397.51.7
OTCBBBHPLF$US26.01600,6412.50.5
Total   100.00 

* 1-day (1 is avg)

13.5 Activities
BHP Group Limited (BHP, formerly BHP Billiton Limited) is a diversified natural resources company producing commodities along with substantial interests in oil and gas. BHP's principal business lines are mineral exploration and production as well as petroleum exploration, production and refining. BHP's assets, operations and interests are separated into Petroleum and Potash, Copper, Iron ore, Coal and Nickel.

SECTION 14 GLOSSARY

ADVT: Average Daily Volume of shares Traded
Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: Current Assets/Current Liabiliites (times)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
PV1000: Present value of 1000 invested 1 year/'n' years ago
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

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