BHP Billiton Results Year Ended 30 June 2012

BHP BILLITON RESULTS FOR THE YEAR ENDED 30 JUNE 2012

·; Our strategy to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market remains a major point of differentiation, particularly in the current, more challenging economic environment.

·; Underlying EBIT(1)(2) decreased by 15% to US$27.2 billion and Attributable profit excluding exceptional items(3) declined by 21% to US$17.1 billion. Exceptional items totalling US$1.7 billion contributed to a 35% decline in Attributable profit to US$15.4 billion.

·; Underlying EBIT margin(3) remained at a robust 39% while Underlying return on capital was 23%.

·; Strong momentum established with annual production records achieved at 10 operations. Our low risk, largely brownfield projects in execution are expected to create substantial shareholder value.

·; Net operating cash flow(4) of US$24.4 billion reflected the strong cash generating capacity of the business throughout the economic cycle. Gearing of 26% remains within the parameters defined by our solid A credit rating.

·; An 11% increase in the 2012 financial year dividend takes the compound annual growth rate of our progressive dividend to 26% over the last 10 years.

The financial information on pages 21 to 43 has been prepared in accordance with IFRS. This news release including the financial information is unaudited. Refer to page 17 for footnotes, including explanations of the non-IFRS measures used in this announcement. Variance analysis relates to the relative financial and/or production performance of BHP Billiton and/or its operations during the year ended 30 June 2012 compared with the year ended 30 June 2011, unless otherwise noted.

RESULTS FOR THE YEAR ENDED 30 JUNE 2012

Safety is a priority for BHP Billiton

BHP Billiton's commitment to establish best practice in health and safety was illustrated by a six per cent decline in the Group's Total Recordable Injury Frequency (TRIF) in the 2012 financial year. Regrettably, despite the decline in the TRIF to its lowest level on record, the Group suffered the tragic loss of three colleagues over the twelve month period. The Group will maintain and enhance its focus on the elimination of fatal risks.

Robust performance in a challenging environment

Our strategy to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market remains a major point of differentiation, particularly in the current, more challenging economic environment.

Disciplined investment throughout the economic cycle has established strong momentum in our major businesses, demonstrated by a twelfth consecutive annual production record at Western Australia Iron Ore (WAIO) and record annual production at another nine operations.

Weakness in commodity markets and industry wide cost pressure resulted in a 15 per cent decline in Underlying EBIT and a 21 per cent fall in Attributable profit (excluding exceptional items) in the 2012 financial year. Net operating cash flow of US$24.4 billion declined by 19 per cent while Underlying return on capital was 23 per cent. The value of the Company's diversified strategy was reflected in the Group's Underlying EBIT margin, which remained at a robust 39 per cent.

The Group has been quick to respond to the change in the operating environment and has acted decisively by closing energy intensive silicomanganese alloy production capacity in South Africa and by temporarily closing capacity at TEMCO (Australia). In addition, metallurgical coal production at Norwich Park (Australia) was suspended following a review of the mine's profitability. The viability of other high-cost operations is being assessed and additional measures are being implemented that will substantially reduce operating costs andnon-essential expenditure across the business.

The sale of our 37 per cent non-operated interest in Richards Bay Minerals (South Africa) to Rio Tinto is well advanced while the review of our diamonds business is ongoing. Other targeted divestments are being considered. These actions demonstrate the Group's commitment to further simplify the portfolio.

Exceptional items contributed to the decline in Attributable profit

Attributable profit of US$15.4 billion for the 2012 financial year included a number of exceptional items: an impairment of the Fayetteville (US) dry gas assets acquired from Chesapeake Energy in March 2011 of US$1.8 billion (US$2.8 billion before tax); an impairment of the Nickel West (Australia) assets of US$355 million (US$449 million before tax); and a US$342 million (US$452 million before tax) charge for the suspension or early closure of operations and the change in status of specific projects, which included an impairment of the Olympic Dam Project (Australia).

Other exceptional items included the settlement of insurance claims at Queensland Coal (Australia), which resulted in other income of US$199 million (US$284 million before tax), while a US$637 million non-cash income tax credit was recognised following the passage of Australia's Minerals Resource Rent Tax (MRRT) and Petroleum Resource Rent Tax (PRRT) extension into legislation in March 2012.

Investing in high return growth

With 20 major projects currently in execution with a combined budget of US$22.8 billion, BHP Billiton is largely committed for the 2013 financial year. No major project approvals are expected over this timeframe. The majority of the Group's high quality projects in execution are scheduled to deliver first production before the end of the 2015 financial year. These low risk, largely brownfield projects will underpin the strong near-term momentum that has been established in our major businesses and create substantial value for our shareholders.

BHP Billiton has an unrivalled portfolio of development options beyond those projects in execution and a significant number of these are embedded within our existing footprint. As our current expenditure commitments decline, future capital will be allocated to those options that maximise shareholder value, while also considering the balance between short and long-term returns.

Our proven strategy delivers sector leading shareholder returns

The Group's long stated priorities for capital management remain unchanged: firstly, to invest in high return growth opportunities throughout the economic cycle; secondly, to maintain a solid A credit rating and to grow our progressive dividend; and finally, to return excess capital to shareholders.

The disciplined application of these priorities within the framework of our strategy has not only facilitated strong growth in the business but has also enabled the Company to return US$53.8 billion to shareholders in the form of dividends and share buy-backs over the last 10 years.

The total dividend declared for the 2012 financial year increased by 11 per cent to 112 US cents per share. The increase in the final dividend to 57 US cents per share takes the compound annual growth rate of our progressive dividend to 26 per cent over that same 10 year period.

Outlook

Economic outlook

Concerns surrounding the stability of the Eurozone and the decline in economic activity that accompanied the managed slowdown of growth in China led to significant market volatility in the 2012 financial year. In China, the Government has introduced stimulatory measures aimed at supporting sustainable growth. The successful containment of inflation, looser monetary policy and evidence of a recovery in infrastructure investment should be positive for commodities demand in the short to medium term. Similarly, there are encouraging signs that the United States housing market may have stabilised which should translate into upside for the world's largest economy if it leads to an improvement in consumer and business confidence.

Our positive longer-term view is unchanged as urbanisation and industrialisation across the developing world is expected to remain the primary driver of global economic growth. While the rate of expansion within China has adjusted to a more sustainable level as its economy has matured, economic growth in this decade is expected to rise substantially in absolute terms given the higher starting base.

Commodities outlook

Prices for many of BHP Billiton's products declined during the 2012 financial year as global economic growth slowed and concerns surrounding the economic outlook increased. The impact was compounded by improved supply for some commodities.

In the short term, we expect volatility in commodity markets to persist as temporary weakness in the manufacturing and construction sectors across all key markets is expected to weigh on market sentiment. However, in the medium term we expect supportive economic policy and a broad growth bias, particularly in China, to lead to measured improvement in the external environment beginning in the first half of the 2013 financial year.

Growth in fixed asset investment in China over this timeframe is expected to support demand for the steel making raw materials and iron ore prices specifically. In the longer-term, however, the strong financial returns that are being generated by the low-cost iron ore producers will continue to encourage investment in brownfield capacity. The development of this low-cost supply should, in our view, lead to a flattening of the cost curve and the gradual mean reversion of prices, consistent with the backwardated nature of the iron ore forward curve.

The long-term dynamics for copper are particularly positive. Structural operating and capital cost pressure associated with rising strip ratios and declining ore grades suggests that a relatively steep copper cost curve should be maintained. Furthermore, the need to attract substantial new capacity into the market every year, if supply is to keep pace with demand, should provide long-term support for the copper price.

Geopolitical concerns and macroeconomic sentiment continued to influence the energy complex and crude oil pricing in particular. In the United States, the combination of an unusually warm winter and strong supply growth had a detrimental impact on the Henry Hub natural gas price in the second half of the 2012 financial year. This rapid decline in price resulted in a very significant switch from coal to gas fired electricity generation while on the supply side, there was a marked decrease in the level of drilling activity in the dry gas basins. As the market continues to rebalance, we believe that the Henry Hub gas price will adjust to reflect the economics of incremental investment which should, in our view, support higher prices in the longer-term.

In summary, the global macroeconomic environment is expected to stabilise before improving in the first half of the 2013 financial year. This recovery will provide support for commodity demand and pricing in the short to medium term. For specific commodities, the industry will find it difficult to develop new supply quickly enough to satisfy the expected increase in demand. This is particularly the case for industries where barriers to entry are high (e.g. potash) or where the global resource endowment is in decline (e.g. copper). We believe that our strategy of being a low-cost, upstream, diversified natural resources company will provide more opportunities to create long-term shareholder value as commodity demand patterns evolve with economic development.

Development projects

BHP Billiton approved eight major projects during the 2012 financial year for a total investment commitment of US$7.5 billion (BHP Billiton share). Pre-commitment funding of US$2.7 billion (BHP Billiton share) was also approved to further progress a series of development options.

In response to the challenging external environment the Group has chosen to delay the 2.5 million tonnes per annum (100 per cent basis) expansion of Peak Downs that is associated with the Caval Ridge mine development (Australia). The 5.5 million tonnes per annum (100 per cent basis) Caval Ridge mine remains on schedule to deliver first production in the 2014 calendar year.

With 20 major projects currently in execution with a combined budget of US$22.8 billion, BHP Billiton is largely committed for the 2013 financial year. No major project approvals are expected over this timeframe. As our current expenditure commitments decline, future capital will be allocated to those options that maximise shareholder value, while also considering the balance between short and long-term returns.

Six major projects delivered first production in the 2012 financial year, namely: WAIO Rapid Growth Project 5, Worsley Efficiency and Growth, North West Shelf CWLH Life Extension and the New South Wales Energy Coal RX1 Project (all Australia), the Antamina Expansion (Peru) and the Escondida Ore Access project (Chile).

Projects that delivered first production during the 2012 financial year

(i) All references to capital expenditure are BHP Billiton's share unless noted otherwise. All references to capacity are 100 per cent unless noted otherwise.

(ii) References are based on calendar years.

(iii) Number subject to finalisation.

(iv) As per revised budget and/or schedule.

(v) Consistent with the revised scope of the iron ore development sequence.

Projects approved during the 2012 financial year

(i) All references to capital expenditure are BHP Billiton's share unless noted otherwise. All references to capacity are 100 per cent unless noted otherwise.

(ii) References are based on calendar years.

(iii) Capital expenditure under review following the decision to delay the 2.5 million tonnes per annum expansion of Peak Downs. Excludes announced pre-commitment funding.

Projects currently under development (approved in prior years)

(i) All references to capital expenditure are BHP Billiton's share unless noted otherwise. All references to capacity are 100 per cent unless noted otherwise.

(ii) References are based on calendar years.

(iii) As per revised budget and/or schedule.

(iv) Facilities ready for first production pending resolution of mercury content.

(v) Excludes announced pre-commitment funding.

Income statement

To provide clarity regarding the underlying performance of our operations we present Underlying EBIT, which is a measure used internally and in our Supplementary Information, that excludes any exceptional items. Exceptional items are described on page 11. The difference between Underlying EBIT and Profit from operations is set out in the following table:

Underlying EBIT

The following table and commentary describes the approximate impact of the principal factors that affected Underlying EBIT for the 2012 financial year compared with the 2011 financial year:

Volumes

Disciplined investment throughout the economic cycle has established strong momentum in our major businesses, demonstrated by a twelfth consecutive annual production record at WAIO and record annual production at another nine operations. In aggregate, volumes increased Underlying EBIT by US$308 million in the period.

WAIO shipments rose to a record annualised rate of 179 million tonnes in the June 2012 quarter (100 per cent basis). The resultant 23 million tonne (BHP Billiton share) uplift in WAIO shipments increased Underlying EBIT by US$2.4 billion in the 2012 financial year.

Downtime at our non-operated facilities in the Gulf of Mexico (US) and the North West Shelf, and natural field decline, particularly at Pyrenees (Australia), were the major contributors to the volume related US$1.1 billion reduction in Underlying EBIT for the Petroleum business. The high margin Atlantis and Mad Dog (both US) facilities resumed production in August 2012. In Base Metals, annual copper production records were set at Antamina and Spence (Chile) although lower grades and industrial action constrained performance at Escondida. An overall decline in Base Metals volumes reduced Underlying EBIT by US$509 million in the period.

Prices

Prices for many of BHP Billiton's products declined during the 2012 financial year as global economic growth slowed and concerns surrounding the economic outlook increased. In total, lower average realised prices reduced Underlying EBIT by US$2.0 billion in the 2012 financial year, net of price-linked costs. The impact was most apparent in our Base Metals and Iron Ore businesses where weaker prices reduced Underlying EBIT by US$1.6 billion and US$1.3 billion, respectively. No respite was provided for our Aluminium, Manganese and Stainless Steel Materials businesses where lower realised prices reduced Underlying EBIT by a combined US$1.2 billion.

In Petroleum, a 19 per cent increase in the average realised price of oil and a 29 per cent rise in the average realised price of liquefied natural gas contributed to a US$1.5 billion increase in Underlying EBIT in the 2012 financial year. In addition, stronger thermal and metallurgical coal prices increased Underlying EBIT by a combined US$434 million, net of price-linked costs.

Costs

Higher costs, excluding the impacts of inflation, exchange rate volatility and non-cash items, reduced Underlying EBIT by US$2.7 billion in the 2012 financial year. Labour and contractor cost increases accounted for approximately one third of the impact while industrial action at Queensland Coal created additional pressure.

The Group has been quick to respond to the change in the operating environment and has acted decisively by closing energy intensive silicomanganese alloy production capacity in South Africa and by temporarily closing capacity at TEMCO. In addition, metallurgical coal production at Norwich Park was suspended following a review of the mine's profitability. The viability of other high-cost operations is being assessed and additional measures are being implemented that will substantially reduce operating costs and non-essential expenditure across the business.

Non-cash items, which included foreign exchange rate related adjustments to the carrying value of inventory and higher depreciation associated with the completion of major projects, reduced Underlying EBIT by a further US$435 million in the 2012 financial year.

Exchange rates

The cost related impact of the stronger Australian dollar reduced Underlying EBIT by US$565 million in the 2012 financial year. However, the positive restatement of monetary items in the balance sheet that followed the general strengthening of the US dollar against a basket of currencies at the end of the period resulted in a US$1.1 billion increase in Underlying EBIT. In total, exchange rate volatility increased Underlying EBIT by US$820 million.

The following exchange rates against the US dollar have been applied:

(i) Displayed as US$ to A$1 based on common convention.

Inflation on costs

Inflationary pressure had an unfavourable impact on all Customer Sector Groups and reduced Underlying EBIT by US$764 million during the 2012 financial year. The pressure was most notable in Australia and South Africa which accounted for 75 per cent of the total impact.

Asset sales

The contribution of asset sales to Underlying EBIT increased by US$78 million from the corresponding period and primarily reflected the receipt of a post-closing payment that followed the 2006 divestment of our interests in Cascade and Chinook (US).

Ceased and sold operations

A favourable foreign exchange related restatement and partial release of the Newcastle steelworks (Australia) rehabilitation provision accounted for the majority of the US$347 million increase in Underlying EBIT.

New and acquired operations

Assets are reported as new and acquired operations until there is a full year period for comparison. New and acquired operations reduced Underlying EBIT by US$86 million in the 2012 financial year.

Exploration and business development

Exploration expense increased by US$662 million to US$1.7 billion in the 2012 financial year. Within Minerals (US$928 million expense), greenfield exploration continued on copper targets in South America, nickel and copper targets in Australia, and iron ore and potash targets globally.

Petroleum exploration expense was US$818 million and included a US$144 million impairment of exploration previously capitalised. Our activities focused on offshore Western Australia, the Gulf of Mexico, South East Asia and our recently acquired Onshore US business.

A general increase in the level of business development expenditure reduced Underlying EBIT by a further US$157 million in the 2012 financial year.

Other

The absence of specific provisions and non-cash charges that were reported in the Aluminium and Base Metals businesses in the 2011 financial year largely accounted for a US$472 million increase in Underlying EBIT in the period.

Net finance costs

Net finance costs increased to US$730 million from US$561 million in the corresponding period. This was primarily driven by increased net interest expense on higher net debt, partially offset by exchange rate variations on net debt.

Taxation expense

Total taxation expense including royalty-related taxation, exceptional items and exchange rate movements, was US$7.5 billion, representing an effective tax rate of 32.5 per cent (30 June 2011: 23.4 per cent).

Excluding the impacts of royalty-related taxation, exceptional items and exchange rate movements, taxation expense was US$8.1 billion representing an underlying effective tax rate(3) of 30.5 per cent (30 June 2011: 32.1 per cent).

Exchange rate movements increased taxation expense by US$250 million (30 June 2011: decrease of US$1.5 billion). The reduced impact compared to the 2011 financial year is predominantly due to eligible Australian entities electing to adopt a US dollar tax functional currency from 1 July 2011.

Exceptional items decreased taxation expense by US$1.7 billion (30 June 2011: decrease of US$2.1 billion) predominantly due to the recognition of tax benefits of US$1.2 billion arising from the impairments of goodwill and other assets in relation to the Fayetteville shale gas assets, Nickel West and the Olympic Dam expansion project, and the recognition of a net income tax benefit of US$637 million on enactment of the MRRT and PRRT extension legislation in Australia.

Government imposed royalty arrangements calculated by reference to profits after adjustment for temporary differences are reported as royalty-related taxation. Royalty-related taxation (excluding exceptional items) contributed US$889 million to taxation expense representing an effective tax rate of 3.9 per cent (30 June 2011: US$828 million and 2.6 per cent).

Other royalty and excise arrangements which do not have these characteristics are recognised as operating costs within profit before taxation. These amounted to US$3.1 billion during the period (30 June 2011: US$2.9 billion).

Exceptional items

(i) Includes amounts attributable to non-controlling interests of US$(34) million (US$7 million tax expense).

As a result of the fall in United States domestic gas prices and the company's decision to adjust its development plans, the Group has recognised impairments of goodwill and other assets in relation to its Fayetteville shale gas assets. A total impairment charge of US$2.8 billion (US$996 million tax benefit) was recognised in the 2012 financial year.

The Group has recognised impairments of goodwill and other assets at Nickel West as a result of the continued downturn in the nickel price and margin deterioration. A total impairment charge of US$449 million (US$94 million tax benefit) was recognised in the 2012 financial year.

As part of our regular portfolio review, various operations and projects around the Group have either been suspended, closed early or changed in status. These include: the change in status of the Olympic Dam expansion project; the temporary suspension of production at TEMCO and the permanent closure of the Metalloys South Plant in South Africa; the indefinite cessation of production at Norwich Park; and the suspension of other minor capital projects. As a result, impairment charges of US$422 million (US$84 million tax benefit), idle capacity costs and inventory write-down of US$40 million (US$12 million tax benefit) and other restructuring costs of US$40 million (US$12 million tax benefit) were recognised in the 2012 financial year.

During 2008, extreme weather across the central Queensland coalfields affected production from the BHP Billiton Mitsubishi Alliance (BMA) and BHP Billiton Mitsui Coal (BMC) operations. The Group settled insurance claims in respect of the lost production and insurance claim income of US$300 million (US$90 million tax expense) was recognised in the 2012 financial year.

The Australian MRRT and PRRT extension legislation were enacted in March 2012. Under the legislation, the Group is entitled to a deduction against future MRRT and PRRT liabilities based on the market value of its coal, iron ore and petroleum assets. A deferred tax asset, and an associated net income tax benefit of US$637 million, was recognised in the 2012 financial year to reflect the future deductibility of these market values for MRRT and PRRT purposes, to the extent they are considered recoverable.

Cash flows

Net operating cash flows after interest and tax decreased by 19 per cent to US$24.4 billion for the 2012 financial year. A US$3.8 billion reduction in cash generated from operations (after changes in working capital balances) was the major contributor to the decline. Higher net income tax paid and increased royalty-related taxation payments further reduced net operating cash flows after interest and tax by US$1.4 billion and US$408 million, respectively.

Investing cash flows increased by US$15.6 billion primarily driven by investment in subsidiaries and operations of US$12.6 billion in the 2012 financial year. Capital and exploration expenditure totalled US$20.8 billion in the 2012 financial year. Expenditure on major growth projects was US$16.3 billion, including US$5.1 billion on Petroleum projects and US$11.2 billion on Minerals projects. Capital expenditure on sustaining and other items was US$2.0 billion. Exploration expenditure was US$2.5 billion, including US$1.6 billion classified within net operating cash flows.

Net financing cash flows include proceeds from borrowings of US$13.3 billion partially offset by dividend payments of US$5.9 billion and debt repayments of US$4.3 billion. Proceeds from borrowings include the issuance of a three tranche Global Bond of US$3.0 billion, a five tranche Global Bond of US$5.3 billion, a two tranche Euro Bond of €2.0 billion and proceeds from Commercial Paper of US$995 million.

Net debt, comprising interest bearing liabilities less cash, was US$23.6 billion which was an increase of US$17.8 billion compared to the net debt position at 30 June 2011.

Dividend

Disciplined investment in our business, our commitment to a solid A credit rating and progressive dividend, and a track record of returning surplus capital to shareholders, have been the hallmarks of our capital management strategy for more than a decade. This approach has not only facilitated strong growth in our business but has also enabled the company to return US$53.8 billion to shareholders in the form of dividends and share buy-backs over the last 10 years.

The total dividend declared for the 2012 financial year increased by 11 per cent to 112 US cents per share. The increase in the final dividend to 57 US cents per share takes the compound annual growth rate of our progressive dividend to 26 per cent over that same 10 year period.

The dividend to be paid by BHP Billiton Limited will be fully franked for Australian taxation purposes. Dividends for the BHP Billiton Group are determined and declared in US dollars. However, BHP Billiton Limited dividends are mainly paid in Australian dollars, and BHP Billiton Plc dividends are mainly paid in pounds sterling and South African rand to shareholders on the UK section and the South African section of the register, respectively. Currency conversions will be based on the foreign currency exchange rates on the Record Date, except for the conversion into South African rand, which will take place on the last day to trade on JSE Limited, being 31 August 2012. Please note that all currency conversion elections must be registered by the Record Date, being 7 September 2012. Any currency conversion elections made after this date will not apply to this dividend.

The timetable in respect of this dividend will be:

Last day to trade cum dividend on JSE Limited and currency conversion into rand 31 August 2012

Ex-dividend Australian Securities Exchange (ASX) and JSE Limited (JSE) 3 September 2012

Ex-dividend London Stock Exchange (LSE) and New York Stock Exchange (NYSE) 5 September 2012

Record Date (including currency conversion and currency election dates, except for rand) 7 September 2012 Payment date 28 September 2012

American Depositary Shares (ADSs) each represent two fully paid ordinary shares and receive dividends accordingly.

BHP Billiton Plc shareholders registered on the South African section of the register will not be able to dematerialise or rematerialise their shareholdings between the dates of 3 September and 7 September 2012 (inclusive), nor will transfers between the UK register and the South African register be permitted between the dates of 31 August and 7 September 2012 (inclusive).

Details of the currency exchange rates applicable for the dividend will be announced to the relevant stock exchanges following conversion and will appear on the Group's website.

Debt management and liquidity

In August 2011, the Group arranged a new unsecured 364 day multicurrency term and revolving credit facility to fund the acquisition of all of the issued and outstanding shares of Petrohawk Energy Corporation. The US$7.5 billion facility consisted of two tranches: a US$5.0 billion term loan and a US$2.5 billion revolving credit facility. The term loan and the revolving credit facility have since been cancelled.

During the 2012 financial year the Group issued the following debt securities in the debt capital markets:

In November 2011, a three tranche Global Bond comprising US$1.0 billion 1.125% Senior Notes due 2014, US$750 million 1.875% Senior Notes due 2016 and US$1.25 billion 3.250% Senior Notes due 2021.

In February 2012, a five tranche Global Bond comprising US$1.0 billion Senior Floating Rate Notes due 2014 paying interest at three-month US dollar LIBOR plus 27 basis points, US$1.0 billion 1.000% Senior Notes due 2015, US$1.25 billion 1.625% Senior Notes due 2017, US$1.0 billion 2.875% Senior Notes due 2022, and US$1.0 billion 4.125% Senior Notes due 2042.

In May 2012, a two tranche Euro Bond comprising €1.25 billion 2.125% bonds due 2018 and €750 million 3.000% bonds due 2024.

As at 30 June 2012, the Group had US$995 million outstanding in the US commercial paper market and the Group's cash and cash equivalents on hand was US$4.9 billion. The Group has access to an undrawn US$4.0 billion Revolving Credit Facility to support the commercial paper program, which expires in December 2015.

Our commitment to maintain a solid A credit rating remains unchanged.

Corporate governance

On 14 May 2012, the Board announced the appointment of Mr Pat Davies as a Non-executive Director with effect from 1 June 2012.

CUSTOMER SECTOR GROUP SUMMARY

The following table provides a summary of the performance of the Customer Sector Groups for the 2012 financial year and the corresponding period.

(i) Underlying EBIT includes trading activities comprising the sale of third party product. Underlying EBIT for the Group is reconciled to Profit from operations on page 8.

(ii) Includes consolidation adjustments, unallocated items and external sales from the Group's freight, transport and logistics operations.

Petroleum

The successful integration and further development of our Onshore US shale liquids and gas assets contributed to a 40 per cent increase in petroleum production to 222 million barrels of oil equivalent for the 2012 financial year.

Underlying EBIT for the 2012 financial year was unchanged from the prior period at US$6.3 billion. This strong financial performance was achieved despite natural field decline at Pyrenees and the substantial deferral of high margin production in the Gulf of Mexico and the North West Shelf. Higher prices increased Underlying EBIT by US$1.5 billion largely as a result of a 19 per cent increase in the average realised price of oil to US$110.66 per barrel and a 29 per cent rise in the average realised price of liquefied natural gas to US$14.23 per thousand standard cubic feet. For US natural gas, our average realised price in the 2012 financial year was US$2.82 per thousand standard cubic feet.

We achieved success in our conventional exploration program in the 2012 financial year as seven of 12 wells encountered hydrocarbons. The associated rise in our level of activity resulted in a US$310 million increase in exploration expense for the period. A US$775 million high impact exploration program, largely focused on the Gulf of Mexico and Western Australia, will target large prospective resources in the 2013 financial year.

Capital expenditure across our conventional and unconventional businesses totalled US$5.8 billion in the 2012 financial year. Exploration and development expenditure specifically within our Onshore US business totalled US$3.7 billion and is expected to rise to US$4.0 billion in the 2013 financial year. Over 80 per cent of the activity in our Onshore US business will be focused on the liquids rich Eagle Ford shale and the Permian Basin. Development of these liquids rich shales complements our traditional project pipeline given the rapid payback on investment and particularly high rates of return.

Petroleum production is forecast to increase to approximately 240 million barrels of oil equivalent in the 2013 financial year, despite the deferral of Onshore US natural gas drilling. This includes a 15 per cent rise in valuable liquids production which will be underpinned by the recommencement of operations at Mad Dog and Atlantis and an increase in activity in our liquids rich Onshore US acreage. The strong growth potential of our shale business was demonstrated by the 60 per cent increase in liquids production to more than 40 thousand barrels per day over the 10 month period.

Aluminium

Record annual production at the Alumar refinery (Brazil) contributed to a four per cent increase in total alumina production in the 2012 financial year. Metal production was lower as potline capacity at Hillside (South Africa) was temporarily curtailed following a major unplanned outage in the March 2012 quarter.

Underlying EBIT for the 2012 financial year decreased by US$557 million to a loss of US$291 million as weaker prices and cost escalation drove significant margin compression. An eight per cent reduction in the average realised price of aluminium (to US$2,314 per tonne) and a three per cent decline in the average realised price of alumina (to US$333 per tonne) reduced Underlying EBIT by US$245 million, net of price-linked costs. Higher raw material costs for inputs such as coke and caustic soda led to a further US$223 million decline in Underlying EBIT. Costs associated with the Hillside outage added to the decline.

The Worsley Efficiency and Growth project delivered first production during the 2012 financial year.

Base Metals

BHP Billiton established strong momentum in its Base Metals business in the June 2012 quarter. Escondida copper production increased by 22 per cent from the March 2012 quarter as mining activities progressed towards higher grade ore while quarterly material mined, mill throughput and copper production records at Antamina added to the strong finish to the year. Annual copper production, however, declined marginally in the 2012 financial year as lower grades and industrial action constrained performance at Escondida for the first nine months of the year.

Underlying EBIT for the 2012 financial year decreased by US$2.8 billion to US$4.0 billion. A 14 per cent fall in the average realised price of copper to US$3.58 per pound was the major contributor to the decline and reduced Underlying EBIT by US$1.4 billion. General cost pressure across the Base Metals portfolio, together with unit cost escalation specifically associated with industrial activity and lower ore grades at Escondida, reduced Underlying EBIT by US$841 million.

At 30 June 2012, the Group had 278,547 tonnes of outstanding copper sales that were revalued at a weighted average price of US$3.49 per pound. The final price of these sales will be determined in the 2013 financial year. In addition, 239,156 tonnes of copper sales from the 2011 financial year were subject to a finalisation adjustment in 2012. This finalisation adjustment and the provisional pricing impact as at 30 June 2012 decreased Underlying EBIT by US$265 million for the period (2011 financial year: US$650 million gain).

Escondida copper production is forecast to increase by approximately 20 per cent in the 2013 financial year. Successful completion of both the Escondida Ore Access and Laguna Seca debottlenecking projects is expected to drive Escondida copper production to over 1.3 million tonnes (100 per cent basis) in the 2015 financial year. Development of Escondida Organic Growth Project 1 and the Oxide Leach Area Project is expected to sustain Escondida copper production at an elevated level for the remainder of this decade.

Diamonds and Specialty Products

As anticipated, diamond production in the 2012 financial year was lower than the prior period. EKATI (Canada) production is forecast to remain constrained in the medium term as the operations extract lower grade material, consistent with the mine plan.

Underlying EBIT for the 2012 financial year declined by US$388 million to US$199 million, despite stronger diamond and titanium prices that increased Underlying EBIT by US$246 million. The decline in production at EKATI, which reduced Underlying EBIT by US$357 million, was the major contributing factor to the compression of operating margins. Higher potash exploration and business development costs decreased Underlying EBIT by a further US$171 million.

The sale of our 37 per cent non-operated interest in Richards Bay Minerals to Rio Tinto is well advanced while the review of our diamonds business is ongoing.

Stainless Steel Materials

The successful replacement of the Line 1 furnace at Cerro Matoso (Colombia) in the September 2011 quarter led to an increase in annual nickel production.

Underlying EBIT for the 2012 financial year decreased by US$556 million to US$32 million. A 22 per cent decline in the average realised nickel price reduced Underlying EBIT by US$584 million, net of price-linked costs. At Nickel West Mt Keith, a reduction in mining activity and the commissioning of the Talc Redesign project delivered tangible cost benefits during the period. Construction of the new Kwinana hydrogen plant (Australia) was also completed in the 2012 financial year.

Iron Ore

BHP Billiton's commitment to invest throughout the economic cycle delivered a twelfth consecutive annual production record in iron ore. WAIO shipments rose to a record annualised rate of 179 million tonnes in the June 2012 quarter (100 per cent basis). Consistently strong operating performance, the ramp up of Ore Handling Plant 3 at Yandi, dual tracking of the company's rail infrastructure and additional ship loading capacity at Port Hedland contributed to the record result. Samarco's (Brazil) three pellet plants continued to operate at capacity during the period.

Underlying EBIT for the 2012 financial year increased by US$873 million to a record US$14.2 billion. Outstanding financial performance was underpinned by record production at WAIO which increased Underlying EBIT by US$2.4 billion. This was partially offset by a seven per cent and five per cent decline in fines and lump prices, respectively, which reduced Underlying EBIT by US$1.3 billion, net of price-linked costs. While the acquisition of the HWE Mining subsidiaries in September 2012 eliminated third party contractor margin, one-off integration costs and an increase in exploration expense more than offset the cost savings achieved in the period.

WAIO production is forecast to increase by approximately five per cent in the 2013 financial year. Commissioning of the WAIO Port Hedland Inner Harbour Expansion project remains on schedule for the second half of the 2012 calendar year and is expected to increase our inner harbour capacity to 220 million tonnes per annum (100 per cent basis). Subsequent debottlenecking opportunities that will enable us to maximise our capacity in the inner harbour continue to be assessed.

Manganese

Consistently strong operating performance and improved plant availability at both GEMCO (Australia) and Hotazel (South Africa) underpinned annual ore production and sales records in the 2012 financial year. Alloy production was substantially lower than the corresponding period following the termination of energy intensive silicomanganese production at Metalloys and the temporary suspension of production at TEMCO.

Underlying EBIT for the 2012 financial year decreased by US$462 million to US$235 million. A 22 per cent decline in the average realised price of ore and a 10 per cent decline in the average realised price of alloy reduced Underlying EBIT by US$400 million, net of price-linked costs. In contrast, record manganese ore sales increased Underlying EBIT by US$64 million.

The US$167 million (BHP Billiton share) GEEP2 expansion project will further solidify GEMCO as one of the lowest cost and largest manganese mines in the industry. On completion, the GEEP2 project will increase processing capacity from 4.2 to 4.8 million tonnes per annum (100 per cent basis) with first production anticipated on schedule in the second half of the 2013 calendar year.

Metallurgical Coal

A modest increase in metallurgical coal production was achieved in the 2012 financial year despite numerous operating challenges. Production at Queensland Coal remained constrained largely as a result of industrial action, weather related downtime and geotechnical issues at Gregory Crinum. Record annual production at Illawarra Coal (Australia) followed successful commissioning of the West Cliff Coal Preparation Plant upgrade project.

Underlying EBIT for the 2012 financial year decreased by US$1.1 billion to US$1.6 billion. Lower production and associated unit cost pressures at Queensland Coal reduced Underlying EBIT by US$1.1 billion. The progression of our development pipeline also led to an increase in exploration and business development costs in the period. In contrast, a six per cent increase in the price of hard coking coal increased Underlying EBIT by US$339 million, net of price-linked costs.

In July 2012, force majeure was lifted across all BMA sites. In addition, BMA and the unions reached a framework agreement that should guide the finalisation of the BMA Enterprise Agreement. Further work is underway to finalise local mine site details.

In response to the challenging external environment the Group has chosen to delay the 2.5 million tonnes per annum (100 per cent basis) expansion of Peak Downs that is associated with the Caval Ridge mine development. The 5.5 million tonnes per annum (100 per cent basis) Caval Ridge mine remains on schedule to deliver first production in the 2014 calendar year. Following a review of the Norwich Park mine's profitability, BHP Billiton also announced the indefinite closure of this operation during the June 2012 quarter and is currently reviewing the viability of its other high-cost operations.

Despite these actions, the capacity of our Queensland Coal business is expected to rise substantially by the end of the 2014 calendar year as all other projects remain on schedule and budget. BHP Billiton announced approval of the US$845 million Appin Area 9 project (Australia) in the period. This underground development is expected to sustain Illawarra Coal's production capacity at nine million tonnes per annum with first production anticipated in the 2016 calendar year.

Energy Coal

Annual production records were achieved at two of BHP Billiton's export oriented operations, Cerrejon Coal (Colombia) and New South Wales Energy Coal. The RX1 Project at New South Wales Energy Coal delivered first production during the June 2012 quarter, significantly ahead of schedule. This project capitalises on strong demand for high ash coal in our key growth markets.

Underlying EBIT for the 2012 financial year increased by US$98 million to US$1.2 billion. Stronger volumes and a higher proportion of export sales, largely associated with improved rail performance at BECSA (South Africa) and the accelerated expansion of New South Wales Energy Coal, increased Underlying EBIT by US$152 million in the period. Higher average realised prices, most notably at Cerrejon Coal, contributed to a US$95 million increase in Underlying EBIT, net of price-linked costs. In contrast, higher labour and raw material costs contributed to a US$190 million reduction in Underlying EBIT.

During the 2012 financial year, BHP Billiton approved a further eight million tonnes per annum (100 per cent basis) expansion of the Cerrejon Coal mine. The US$437 million project (BHP Billiton share) will increase export capacity to approximately 40 million tonnes per annum (100 per cent basis), with first production anticipated on schedule in the 2013 calendar year. In addition, the partners approved the third phase of expansion of the Newcastle Coal Infrastructure Group's (NCIG) coal handling facility in Newcastle (Australia).

Group and Unallocated items

The Underlying EBIT expense for Group and Unallocated in the 2012 financial year decreased by US$157 million to US$248 million. Higher corporate and information technology costs were more than offset by a foreign exchange related restatement and partial release of the Newcastle steelworks rehabilitation provision.

The following notes explain the terms used throughout this profit release:

(1) Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying EBITDA is Underlying EBIT before depreciation, impairments and amortisation of US$6,508 million for the year ended 30 June 2012 and US$5,113 million for the year ended 30 June 2011. We believe that Underlying EBIT and Underlying EBITDA provide useful information, but should not be considered as an indication of, or alternative to, Attributable profit as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity.

(2) Underlying EBIT is used to reflect the underlying performance of BHP Billiton's operations. Underlying EBIT is reconciled to Profit from operations on page 8.

(3) Non-IFRS measures are defined as follows:

Attributable profit excluding exceptional items - comprises Profit after taxation attributable to members of BHP Billiton Group less exceptional items as described in note 2 to the financial report.

Underlying EBITDA interest coverage - for the purpose of deriving interest coverage, net interest comprises Interest on bank loans and overdrafts, Interest on all other borrowings, Finance lease and hire purchase interest less Interest income.

Underlying effective tax rate - comprises Total taxation expense excluding Royalty-related taxation, exceptional items and Exchange rate movements included in taxation expense divided by Profit before taxation and exceptional items.

Underlying EBIT margin - comprises Underlying EBIT excluding third party EBIT, divided by revenue excluding third party product revenue.

Underlying return on capital - represents net profit after tax, excluding exceptional items and net finance costs (after tax), divided by average capital employed. Capital employed is net assets less net debt.

(4) Net operating cash flows are after net interest and taxation.

Forward looking statements

This release contains forward looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments.

Forward looking statements can be identified by the use of terminology such as 'intend', 'aim', 'project', 'anticipate', 'estimate', 'plan', 'believe', 'expect', 'may', 'should', 'will', 'continue' or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward looking statements.

These 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 release. Readers are cautioned not to put undue reliance on forward looking statements.

For example, our future revenues from our operations, projects or mines described in this release will be based, in part, upon the market price of the minerals, metals or petroleum 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 operations.

Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton'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, the Group does not undertake any obligation to publicly update or review any forward looking statements, whether as a result of new information or future events.

Non-IFRS financial information

BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This release also includes certain non-IFRS measures including Attributable profit excluding exceptional items, Underlying EBITDA interest coverage, Underlying effective tax rate, Underlying EBIT margin and Underlying return on capital. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.

No offer of securities

Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction.

Reliance on third party information

The views expressed in this release 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 release should not be relied upon as a recommendation or forecast by BHP Billiton.

Further information on BHP Billiton can be found on our website: www.bhpbilliton.com

BHP Billiton Group

Financial Information

For the year ended 30 June 2012

Contents

Financial Information

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Consolidated Cash Flow Statement

Consolidated Statement of Changes in Equity

Notes to the Financial Information

The financial information included in this document for the year ended 30 June 2012 is unaudited and has been derived from the draft financial report of the BHP Billiton Group for the year ended 30 June 2012. The financial information does not constitute the Group's full financial statements for the year ended 30 June 2012, which will be approved by the Board, reported on by the auditors, and subsequently filed with the UK Registrar of Companies and the Australian Securities and Investments Commission.

The financial information set out on pages 21 to 43 for the year ended 30 June 2012 has been prepared on the basis of accounting policies consistent with those applied in the 30 June 2011 financial statements contained within the Annual Report of the BHP Billiton Group, except for a change to the basis on which borrowings are classified as current or non-current. Borrowings otherwise due for repayment within 12 months of balance date are now classified as non-current only if the committed refinancing facility is with the same lender and on the same or similar terms. Under the previous policy, it was not necessary for such facilities to be with the same party for the borrowings to be classified as non-current. This change in policy was adopted in light of amendments to IAS1 'Presentation of Financial Statements' recommended by the IASB, modifying criteria for the classification of such borrowings as current. Borrowings of US$995 million drawn under the Group's commercial paper program have therefore been classified as current with no impact on comparative amounts as the program was undrawn in all prior periods presented in the financial statements. The comparative figures for the financial years ended 30 June 2011 and 30 June 2010 are not the statutory accounts of the BHP Billiton Group for those financial years. Those accounts have been reported on by the company's auditors and delivered to the Registrar of Companies. The reports of the auditors were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006.

All amounts are expressed in US dollars unless otherwise stated. The BHP Billiton Group's presentation currency and the functional currency of the majority of its operations is US dollars as this is the principal currency of the economic environment in which it operates.

Where applicable, comparative figures have been adjusted to disclose them on the same basis as the current period figures. Amounts in this financial information have, unless otherwise indicated, been rounded to the nearest million dollars.

Consolidated Income Statement

for the year ended 30 June 2012

The accompanying notes form part of this financial information.

Consolidated Statement of Comprehensive Income

for the year ended 30 June 2012

The accompanying notes form part of this financial information.

Consolidated Balance Sheet

as at 30 June 2012

The accompanying notes form part of this financial information.

Consolidated Cash Flow Statement

for the year ended 30 June 2012

The accompanying notes form part of this financial information.

Consolidated Statement of Changes in Equity

for the year ended 30 June 2012

The accompanying notes form part of this financial information.

Consolidated Statement of Changes in Equity

for the year ended 30 June 2012 (continued)

Consolidated Statement of Changes in Equity

for the year ended 30 June 2012 (continued)

Notes to the Financial Information

1. Segment reporting

The Group has nine reportable segments aligned with the commodities which we extract and market, reflecting the structure used by the Group's management to assess the performance of the Group:

Group and unallocated items represent Group centre functions. Exploration and technology activities are recognised within relevant segments.

It is the Group's policy that inter-segment sales are made on a commercial basis.

1. Segment reporting (continued)