BHP Group Limited Q4 FY2022 earnings call

• BHP delivered record results for the 2022 financial year, with underlying EBITDA of almost $41 billion. - Reshaped portfolio through merging Petroleum business with Woodside, selling interests in Cerrejon and BMC. - Went more than 3.5 years without a fatality and experienced fewer high-potential injuries. - Focus on social value, with workforce over 32% female and progress on climate actions like lowering operational greenhouse gas emissions by 24% in 2 years. - Lowered freshwater withdrawals by almost 30% since 2017 through efficiency initiatives and desalinization.

Western Australian Iron Ore: EBITDA of $21.7 billion at a 71% margin, with record sales volumes of 284 million tonnes. Copper: EBITDA increased to $8.6 billion driven by higher realized prices but offset by lower volumes. BMA: Achieved a $5.8 billion increase in EBITDA with a 62% margin despite significant wet weather impacts and labor constraints. New South Wales Energy Coal: Generated record EBITDA of almost $2 billion, with higher quality coals now making up almost 90% of sales compared to ~60% last year. Nickel West: The only segment among BHP's segments that did not deliver EBITDA margins in excess of 50%.

• China's stimulus policies expected to positively impact growth, though housing rebound in China may take time. - Outside China, global growth expected to slow due to Ukraine conflict, energy crisis, inflation, and policy tightening. - BHP well positioned to outperform with focus on productivity and continuous improvement. - Intends to manage inflation better than others, with low-cost operators like BHP set to capture higher margins. - Accelerating growth in future-facing commodities: aiming to bring forward first production from Jansen Stage 1 potash project to 2026, studying Stage 2; Western Australian Iron Ore aiming for over 300 million tonnes per annum and studying 330 million tonnes; accelerating studies for growth in copper at Escondida, Spence, Olympic Dam, and Nickel.

• Continued disruption and uncertainty from the pandemic. - Ukraine crisis exacerbating global supply chain pressures. - Inflation impacts across the portfolio. - Potential for further lockdowns in China causing uncertainty. - Labor market tightness and challenging supply chain conditions.