| Thu 18 Mar 2010, 7:05 | | BIL - BHP Billiton Plc - Letter to BHP Billiton Shareholders |
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BIL
BIBLT
BIL - BHP Billiton Plc - Letter to BHP Billiton Shareholders
BHP Billiton Plc
Share Code: BIL
ISIN: GB0000566504
Letter to BHP Billiton Shareholders
Dear Shareholder,
This is my last letter to you before I retire from the Board of BHP Billiton on
30 March 2010, having had the enormous privilege of being your Chairman since
1999.
I have always believed that the two basic drivers of value creation are
profitability and growth and that the success of BHP Billiton is the result of
consistent strategies set by the Board and Management to achieve these
objectives. The recent interim results are again testament to our disciplined
and focussed approach to delivering on our objectives.
Marius Kloppers, our exceptionally talented CEO, and his team have articulated
the company`s intent clearly, which is "to be aggressive on growth, to fast-
track projects in our backyard and to be alert to take advantage of
opportunities that are presented by market pricing of commodities" - which
includes iron ore and metallurgical coal exported to China and the Asian region.
The interim results also reflect quality outcomes from the diversified nature of
our world class assets. Attributable profit after tax came in at US$6.1
billion, which was just above market consensus.
Our balance sheet is geared at 15%, and given the continued uncertainty
surrounding world financial markets, we consider this prudent at this point in
time.
We have maintained our progressive half year dividend of US 42Cents (USD) per
share when others have faltered. We remain committed to increasing our capital
expenditure and next year we plan to spend around $20 billion, which includes a
US$5.8 billion equalisation payment for the Western Australian iron ore
production joint venture with Rio Tinto which we believe we can finalise this
calendar year.
We do remain cautious about the state of the global economy and note the recent
International Monetary Fund (IMF) report which highlighted the gap in growth
between developed and developing economies. The IMF predicts that between 2007
and 2011 the output from advanced economies will grow by just 1.9% whilst the
developing countries will be 22.1%.
We are very mindful that most countries have difficult decisions to make
regarding a wind back of stimulus packages, against the backdrop of financial
services sector reform, and how they boost economic growth. Governments play a
key role in spurring productivity, encouraging investment and fostering
international competitiveness. It is imperative that the impact of any policy
and tax changes of governments around the world on sectors of economies should
be well understood and do not hinder investment and the capacity of economies to
grow. Ultimately policies which reduce free cash flow available from profits
generated after paying tax could affect a company`s capacity to pay future
dividends to its shareholders.
These are important considerations as we plan our future but equally important
are our succession processes and Board renewal which continue to work well.
Following a successful transition period, which is all but complete, Jac Nasser
will become the Chairman of this great company on 30 March 2010. There is no
doubt in my mind that the new partnership of Jac Nasser and Marius Kloppers will
deliver the long term value to which shareholders have become accustomed.
It has been one of my underlying principles to respect shareholders as the
owners of the Company, as it has been to you that the Board and I have been
accountable for the Company`s governance and performance.
It has been an honour to serve you, and I thank shareholders for their support
over the past 13 years that I have been a member of the BHP Billiton Boards, and
my last 10 years as Chairman.
Best wishes for the future.
Yours sincerely
Don Argus AC
18 March 2010
BHP Billiton Limited ABN 49 BHP Billiton Plc Registration
004 028 077 number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Registered Office: Neathouse
Lonsdale Street Melbourne Place London SW1V 1BH United
Victoria 3000 Kingdom
The BHP Billiton Group is headquartered in Australia
Date: 18/03/2010 07:05:11 Produced by the JSE SENS Department.
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