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Strategic Report Governance at BHP Remuneration Report Directors’ Report Financial Statements Additional information Shareholder information

1.6.2 Financial KPIs and performance overview

Financial KPIs

Underlying Underlying Net operating
attributable profit (1) EBITDA (1) cash flows (1)
US$ billion US$ billion US$ billion
20 35 30
30 25
15
25
20
20
10 20.3 15 16.8
15
10
5 6.7 10
5 5
0 0 0
FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017

(1) Comparative data excludes (1) Comparative data excludes (1) Comparative data includes Continuing
Discontinued operations. Discontinued operations. and Discontinued operations.

Significantly higher prices have improved our margins, generated strong cash flow, reduced net debt and,
in line with our financial performance, increased our dividends.

Profits and earnings
Attributable profit of US$5.9 billion includes an exceptional loss of US$842 million (after tax). This compares to an attributable
loss of US$6.4 billion, including an exceptional loss of US$7.6 billion (after tax), in FY2016. The FY2017 exceptional loss related
to the Samarco dam failure, Escondida industrial action and Chilean withholding tax paid at a concessional rate, partially offset
by the reimbursement received on cancellation of the Caroona exploration licence. The FY2016 exceptional loss related to the
impairment of our Onshore US assets, the Samarco dam failure and global taxation matters.
Our Underlying attributable profit was US$6.7 billion (FY2016: US$1.2 billion).
We reported Underlying EBITDA of US$20.3 billion, with higher prices, controllable cash cost improvements and other net
movements (in total US$9.4 billion) more than offsetting the impacts of unfavourable exchange rate movements, inflation
and one-off items (in total US$1.4 billion).
Cash flow and balance sheet
Our Net operating cash flow of US$16.8 billion reflects higher commodity prices and further cash cost efficiencies.
We continued to strengthen our balance sheet with a reduction in net debt of US$9.8 billion to finish the period at US$16.3 billion
(FY2016: US$26.1 billion). This reduction reflects strong free cash flow generation during the period as well as non-cash adjustments
of US$0.6 billion related to a fair value adjustment of US$1.2 billion from interest rate and foreign exchange rate movements, partially
offset by the recognition of the Kelar finance lease of US$0.6 billion.
Our gearing ratio is 20.6 per cent (FY2016: 30.3 per cent).

22 BHP Annual Report 2017