BHP Group Limited Q2 FY2022 earnings call

• BHP delivered record results with underlying EBITDA excluding Petroleum up 16% to $40.6 billion at a record margin of 65%. - Reshaped portfolio through merging Petroleum with Woodside, selling Cerrejon and BMC, and unifying corporate structure. - Safety performance: Over 3.5 years without a fatality, fewer high-potential injuries. - Social value: Workforce over 32% female, lowered operational GHG emissions by 24% in 2 years, reduced freshwater withdrawals by almost 30% since 2017. - Operational excellence: Strong performance in core commodities despite challenges, managed to minimize inflation effects.

Western Australian Iron Ore: EBITDA was $21.7 billion with a 71% margin, underpinned by record sales volumes of 284 million tonnes. Copper: EBITDA increased to $8.6 billion, driven by higher realized prices but offset by lower volumes and inflation. BMA: Achieved a $5.8 billion increase in EBITDA with a 62% margin despite wet weather and labor constraints. New South Wales Energy Coal: Record EBITDA of almost $2 billion, with increased washed coals making up almost 90% of sales. Excluding Nickel West, other segments had EBITDA margins over 50%, while Nickel West's margin was below 50%.

• CapEx expected to increase over medium term, ~60% for future-facing commodities (copper, nickel, potash). - Final dividend of $0.0175 per share, full year ordinary dividend record $0.0325 per share. - Anticipate higher unit costs over next 12 months but maintain advantaged cost position. - Accelerating growth studies for Jansen Stage 2, Western Australian Iron Ore to 330 mtpa.

• Disruption from pandemic, Ukraine crisis, and energy crisis in Europe. - High inflation, policy tightening, labor market tightness, and supply chain challenges.