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BHP Annual Report 2018 - Chairman's Statement


Dear Shareholder,

I am pleased to provide this Annual Report of your Company's performance in FY2018.

This year, we have further simplified and strengthened BHP, enhanced our Capital Allocation Framework, sharpened our focus on culture and productivity and delivered a solid set of financial results. This has enabled us to announce a record final dividend of 63 US cents per share.

We have also invested in the future. Earlier this year, your Board approved US$2.9 billion in capital expenditure for the South Flank iron ore project in Western Australia, following a thorough evaluation against our Capital Allocation Framework. South Flank offers attractive returns for shareholders and will enhance the average quality grade of BHP's Western Australia Iron

Ore production.

To further strengthen our portfolio, we undertook a robust and competitive sales process for our Onshore US assets in FY2018. We anticipate completing the sale of these assets by the end of October. We understand that cash returns are important

to shareholders, and we expect to return the net proceeds from these transactions to shareholders.

Throughout this first year as Chairman of BHP, I have visited a number of our assets around the world. Wherever I have travelled, I have been struck by the commitment of our people to Our Charter values and their dedication to this great company.

Our people are the backbone of BHP and their safety is of paramount importance. So it is with deep sadness that we report the deaths of two of our colleagues at work in FY2018. We achieve nothing if it is not done safely and in the wake of these tragedies, we have redoubled efforts to protect the health and safety of everyone who works at BHP.

Throughout FY2018, I have also met with many of our shareholders and stakeholders. I recently concluded my second global investor roadshow, where discussions centred on five key priorities for
BHP – safety, our portfolio, capital discipline, capability and culture, and our social licence. Our unrelenting focus on these key areas

is fundamental to our efforts to create value for our shareholders, and to continue to make a difference.

I will provide an update on our progress against these themes at our Annual General Meetings in London and Adelaide, later in the calendar year.

Your Board takes a structured and rigorous approach to succession planning. We consider Board size, tenure and the skills, experience and attributes required to effectively govern and manage risk within BHP to ensure we have the right balance between experience and fresh perspectives. We also take account of the rapidly changing external environment and BHP's circumstances.

I would like to take this opportunity to acknowledge the significant contribution Wayne Murdy has made to the Board of BHP over
the last nine years. Wayne recently advised that he will not stand for re-election at the 2018 Annual General Meetings. On behalf

of all of his colleagues on the Board, I would like to thank Wayne for his valuable contribution, friendship and wise counsel, and
I wish him all the best for the future.

While we remain cautious about the short term market outlook,
our long term view remains positive and we are well placed to meet demand for commodities that the world needs well into the future.

I am confident that BHP, led by Andrew Mackenzie and his management team, has the right assets and capability, and your Company is well placed to continue delivering shareholder value and returns.

Thank you for your continued support of BHP.

Ken MacKenzie

Chairman


Visit source site

https://bhp.com/-/media/documents/investors/annual...

Annual ReportBHPUnited StatesWestern AustraliaAssetsCAPEX

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