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Capital management
Our Capital Allocation Framework aims to maximise the potential value of every dollar we earn
for our shareholders.
We start by aiming to earn as much as we can through the safe and productive operation of our assets. Strategic Report
We then put this capital to work to:
• maintain our plant and equipment to enable safe and efficient operations over the long term;
• keep our balance sheet strong, to give us stability and flexibility through good times and
tough times;
• reward our shareholders by paying out at least 50 per cent of our Underlying attributable profit
in dividends at every period.
We then look at what would be the most valuable use for any excess capital that remains after these
three priorities are met, and decide whether to:
• further reduce our debt;
• return more cash to shareholders through additional dividends or share buy-backs;
• invest in growth, either through projects within our assets or through exploration or acquisitions,
provided it will create more value than a share buy-back.
This disciplined and rigorous approach helps us to maximise the value of every dollar for our shareholders.

Our Capital Allocation Framework

$

Operating productivity Capital productivity
Net operating cash low

Maintenance capital

Strong balance sheet
Minimum 50% payout ratio dividend
Excess cash

Acquisitions/
Additional
Balance sheet dividend amounts Share buy-backs Organic development (Divestments)
Maximise returns and value

BHP Annual Report 2017 19