BHP : 2024 Global Metals, Mining and Steel Conference

Bank of America Global Metals, Mining & Steel Conference 2024

Mike Henry

Chief Executive Officer

Western Australia Iron Ore

Disclaimer

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

Forward-looking statements

This presentation may contain forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements other than statements of historical or present facts, including statements regarding: our strategy, our values and how we define success; our expectations of a competitive advantage for our business or certain products; our commitment to generating social value; our commitments under sustainability frameworks, standards and initiatives; our intention to achieve certain sustainability- related targets, goals, milestones and metrics; trends in commodity prices and currency exchange rates; demand for commodities; reserves and production forecasts; plans, strategies and objectives of management; climate scenarios; assumed long-term scenarios; potential global responses to climate change; the potential effect of possible future events on the value of the BHP portfolio; approval of certain projects and consummation of certain transactions; closure or divestment of certain assets, operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and supply (including 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', 'project', 'see', 'anticipate', 'estimate', 'plan', 'objective', 'believe', 'expect', 'commit', 'may', 'should', 'need', 'must', 'will', 'would', 'continue', 'annualised', 'forecast', 'guidance', 'outlook', 'prospect', 'target', 'goal', 'ambition', 'aspiration', 'trend' or similar words. These statements discuss future expectations concerning the results of assets or financial conditions, or provide other forward-looking information.

Forward-looking statements are based on management's current expectations and reflect judgments, assumptions, estimates and other 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 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.

For example, our future revenues from our assets, projects or mines which may be 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, 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 and/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; changes in environmental and other regulations; political or geopolitical uncertainty; labour unrest; and other factors identified in the risk factors discussed in section 8.1 of the Operating and Financial Review in the BHP Annual Report 2023 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 information and data

Numbers presented may not add up precisely to the totals provided due to rounding. All footnote content is contained on slide 12 (for the presentation) and slide 18 (for the appendix).

Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions and operational energy consumption under the calculation methodologies used in the preparation of such data, all GHG emissions and operational energy consumption data or references to GHG emissions and operational energy consumption volumes (including ratios or percentages) in this presentation are estimates. Emissions calculation and reporting methodologies may change or be progressively refined over time resulting in the need to restate previously reported data. There may also be differences in the manner that third parties calculate or report GHG emissions or operational energy consumption data compared to BHP, which means that third-party data may not be comparable to our data. For information on how we calculate our GHG emissions and operational energy consumption data, refer to the BHP Scopes 1, 2 and 3 GHG Emissions Calculation Methodology 2023, available at bhp.com.

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' and 'our' refer to BHP Group Limited and, except where the context otherwise requires, our subsidiaries. Refer to note 30 'Subsidiaries' of the Financial Statements in the BHP Annual Report 2023 for a list of our significant subsidiaries. Those terms do not include non-operated assets. Notwithstanding that this presentation may include production, financial and other information from non-operated assets, non-operated assets are not included in the Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless otherwise stated.

Bank of America Global Metals, Mining & Steel Conference
14 May 2024	2

Successfully executing our strategy

Delivering value and returns, shaping BHP for the future

	•	Sanctioned Jansen Stages 1 & 2
	•	Acquired OZ Minerals
Winning	•	Petroleum merger with Woodside
portfolio
	•	Unified the dual listed structure
	•	Rationalised metallurgical coal portfolio
	•	Consistently highest margin vs. competitors1
Operational	•	Lowest cost major iron ore producer for the last 4 years2
excellence
	•	Most reliable delivery of production guidance vs. competitors3
	•	Improved HPI frequency rate4; ongoing fatality elimination focus
Social	•	Increased female employee representation to >36%5
value
	•	Doubled spend with indigenous businesses HY24 vs. HY23

Note: HPI - High Potential Injury.
Bank of America Global Metals, Mining & Steel Conference
14 May 2024	3

Operational excellence in action: WAIO

Lowest cost producer, delivering >US$10/t greater free cash flow than competitors

Strategic actions

• Capital efficient growth from 240 Mtpa nameplate capacity
• Improved average product quality (Fe grade, lump)
• Improved cost position

Competitive resource endowment

• Larger mines
• Fewer processing hubs
• Low strip ratio

Value accretive growth

• Investing to grow production to >305 Mtpa in medium-term
• Progressing studies on potential growth to 330 Mtpa

Note: WAIO - Western Australia Iron Ore; FCF - free cash flow, calculated as realised price less all-in-cost.

Low operating costs and high realised prices lead to superior FCF generation2,6

(FCF, US$/dmt)				(C1 unit costs, US$/wmt)
120							30
100							25
80							20
60							15
40							10
20							5
0								0
			FY20	FY21	FY22	FY23	HY24
			BHP FCF/t			BHP C1 unit cost
			Competitor average FCF/t		Incremental competitor average C1 unit cost

Note: Competitors include Fortescue, Rio Tinto (Pilbara operations), Vale.

Bank of America Global Metals, Mining & Steel Conference
14 May 2024	4

Jansen provides a platform for high value growth

Jansen Stages 1 & 2 position BHP to become a major potash producer, with multiple attractive growth options beyond

Attractive, future facing commodity

Low end of cost curve7

High EBITDA margins8

Advantaged resource9

Long-life, expandable10

Stages 1 & 2 competitively positioned against peers

(Average asset age in 2025)

80

Note: Bubble size represents
average asset production in 2025;	Europe and
70 Jansen Stages 1 & 2 once ramped up

Middle East

60

Canada

50

CIS

40
30	China and	South America

Southeast Asia

20

10

0

1st

2nd

3rd

4th

Clusters of single assets built over time

Average asset cost curve position (2025 equivalent CRU) (quartile)

Jansen Stages 1 & 2

Peers

Bank of America Global Metals, Mining & Steel Conference 14 May 2024

Note: Bubble size for Jansen represents expected production for Jansen Stages 1 & 2 once ramped up. Jansen is forecast to achieve first quartile on the cost curve once Stages 1 & 2 reach full production.

Source: BHP; CRU.

5

Progressing our copper growth

BHP is well positioned in a world where demand for copper is expected to grow strongly

BHP has a number of structural advantages…	… including a pipeline of multiple organic copper options under study
	Illustrative timeline		FY24 FY25	FY26 FY27 FY28 FY29 FY30+14
Largest copper mineral resources11
Chilean copper brownfield options15
	Includes expansions at existing concentrators, a potential new concentrator and multiple leaching technologies
Consistent cash flow through the cycle12	Copper South Australia growth options16
Supports our aspiration to grow copper production to >500ktpa or >700ktpa on a copper equivalent basis with co-products	17
	Studies	Potential FID	Execution	Targeted first production and ramp up

With a track record of disciplined project delivery…

(Performance vs FID, %)13 45

30

15

0

(15)

Cost		Schedule
BHP average		Industry

Note: BHP average across all commodities. Industry range across multiple industries.

Source: Independent Project Analysis, BHP analysis.

… and additional levers to add further copper options

		Technology &		Early-stage
Exploration		innovation		entry		M&A
Prospecting for		Technologies with		Partnerships in		Acquiring
Tier 1 assets in		potential to be		promising		businesses that
attractive		game changers		development		will add long-term
jurisdictions				projects		value

Note: FID - Final investment decision.

Bank of America Global Metals, Mining & Steel Conference
14 May 2024	6

Proposal for Anglo American

An all-share combination to benefit both sets of shareholders

Creates value from the combination of two high quality businesses

Delivers immediate and ongoing value for Anglo American shareholders

Combination facilitates outcomes challenging for an independent Anglo American

Consistent with BHP's strategy, attractive for shareholders

Approach reflects BHP's value and capital discipline

Bank of America Global Metals, Mining & Steel Conference
14 May 2024	7

Value creation from combining two quality businesses

Confident in the delivery of incremental value from combined asset base and expanded growth pipeline

Complementary asset base…

• Long life, low cost, high margin, cash generative portfolio today
• Scalable, high growth copper portfolio
• High quality iron ore and metallurgical coal assets
• delivering high margins

Capacity to support significant growth

• Combines strong pipelines of attractive growth options
• Good balance of high return brownfield expansions and greenfield projects
• BHP has the balance sheet, cash flow and operational capability to develop options

Execution

Potential growth options

	80					BHP	Anglo American
(%)	70
margin	60
50
EBITDA
40
	30
CY23	20
10
	0
	-	Iron ore:	Copper:				Met coal:	Other18:
		42% / 2.6 Mt	30% / 1.9 Mt			15% / 0.9 Mt	13% / 0.8 Mt

CY23 production (CuEq Mt)19

Total CuEq: 6.3 Mt

Prominent Hill expansion

Carrapateena expansion

Escondida Full Sal

Copper

Collahuasi debottlenecking20

Collahuasi desalination

Jansen Stage 1

Potash Jansen Stage 2

WAIO >305 Mtpa

Iron ore

Escondida & Spence leaching	Antamina
Escondida concentrator	Cerro Colorado
Olympic Dam smelter	Oak Dam
Quellaveco to 150 ktpd	Los Bronces
Collahuasi expansion	Sakatti
Jansen Stage 3
Jansen Stage 4
WAIO 330 Mtpa

BHP	Anglo American

Note: CuEq - Copper equivalent, calculated using long term real prices sourced from available brokers which provide price forecasts for all commodities.

Bank of America Global Metals, Mining & Steel Conference

14 May 2024

8

Value creation from combining two quality businesses

Potential for material synergies as we leverage the best of both organisations

Benefits from

BHP's

capabilities

• Demonstrated consistency in operational excellence
• • Best delivery of production guidance vs. competitors3
• Track record of restructuring, M&A integration and disposals
• • OZ Minerals acquisition, Petroleum merger and South32 demerger, coal divestments, unification

Assets in close proximity in key operating regions

South America

Queensland, Australia

	• Deep pool of talent within BHP and Anglo American
Leveraging	• Strong experience delivering on social value and ESG
talent and	commitments

expertise	• Advancing technology and innovation to support sustainable
	mining practices

Unlocks unique and meaningful synergies

• Complementary asset bases in South America and Australia
• Synergies include sharing best practice, procurement, operational, marketing and eliminating duplication
• Delivery of meaningful synergies enhancing profitability and value

BHP	Anglo American

Bank of America Global Metals, Mining & Steel Conference
14 May 2024	9

BHP positioned to deliver shareholder value into the future

Operational excellence and exposure to the right commodities

Portfolio	:
Iron ore	Metallurgical coal	Potash	Nickel
	Copper

BHP's portfolio and operating excellence generates superior margins…21

(Underlying EBITDA margin, %)		(Bloomberg commodity index, rebased)
75					75
60					60
45					45
30					30
15					15
0					0
FY14	FY16	FY18	FY20	FY22	HY24

… delivering consistently strong net operating cash flows22

(US$ bn)

38

30

23
15							>US$15 bn
8
0
FY10	FY12	FY14	FY16	FY18	FY20	FY22	HY24

Bloomberg commodity index (quarterly)

Competitor range

Operating cash flow (H1)

Operating cash flow (H2)

Note: Competitors include Anglo American, Glencore (excludes Marketing), Rio Tinto, Vale.

Note: Presented on a total operations basis.

Bank of America Global Metals, Mining & Steel Conference

14 May 2024

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