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Section 1 In this section

1.1 Chairman’s Review
1.2 Chief Executive Officer’s Report
Strategic 1.4 BHP – At a glance
1.3
Performance summary

1.4.1 Who we are
Report 1.5 1.4.2 Where we are
Our strategy
1.5.2 Managing performance and risk
1.5.1 Focus areas
1.6 Our performance
1.6.1 Non-financial KPIs
1.6.2 Financial KPIs and performance overview
1.6.3 Commodity performance overview
1.7 Samarco
1.8 Our operating environment
1.8.1 Market factors and trends
1.8.2 Exploration
1.8.3 Principal risks
About this Strategic Report 1.9 1.8.4 Management of principal risks
People
This Strategic Report provides insight into BHP’s strategy, 1.9.1 Supporting our culture
operating and business model, and objectives. It describes 1.9.2 Inclusion and diversity
the principal risks BHP faces and how these risks might 1.9.3 Our people policies
affect our future prospects. It also gives our perspective 1.9.4 Employees and contractors
on our recent operational and financial performance. 1.9.5 Employee relations
This disclosure is intended to assist shareholders and other 1.10 Sustainability
1.10.1 Our sustainability approach

stakeholders to understand and interpret the Consolidated 1.10.2 Operating with ethics and integrity
Financial Statements prepared in accordance with International 1.10.3 Health and safety
Financial Reporting Standards (IFRS) included in this Annual 1.10.4 Society
Report. The basis of preparation of the Consolidated Financial 1.10.5 Environment
Statements is set out in section 5.1. We also use alternate 1.10.6 Climate change
performance measures to explain our underlying performance; 1.11 Our businesses
however, these measures should not be considered as an 1.11.1 Minerals Australia
indication of, or as a substitute for, statutory measures as 1.11.2 Minerals Americas
an indicator of actual operating performance or as a substitute 1.11.3 Petroleum
for cash flow as a measure of liquidity. To obtain full details of 1.11.4 Marketing and Supply
the financial and operational performance of BHP, this Strategic 1.12 Summary of financial performance

1.12.1 Group overview
Report should be read in conjunction with the Consolidated 1.12.2 Financial results
Financial Statements and accompanying notes. Underlying 1.12.3 Debt and sources of liquidity
EBITDA is the key measure that management uses internally 1.12.4 Alternate performance measures
to assess the performance of the Group’s segments and make 1.12.5 Definition and calculation of alternate
decisions on the allocation of resources. performance measures
This Strategic Report meets the requirements of the 1.13 1.12.6 Definition and calculation of principal factors
Performance by commodity
UK Companies Act 2006 and the Operating and Financial 1.13.1 Petroleum
Review required by the Australian Corporations Act 2001. 1.13.2 Copper
We have excluded certain information from this Strategic Report, 1.13.3 Iron Ore
to the extent permitted by United Kingdom and Australian law, 1.13.4 Coal
on the basis that it relates to impending developments or 1.13.5 Other assets
matters in the course of negotiation and disclosure would be 1.14 Other information
seriously prejudicial to the interests of BHP. This is because such
disclosure could be misleading due to the fact it is premature
or preliminary in nature, relates to commercially sensitive
contracts, would undermine confidentiality between BHP
and its suppliers and clients, or would otherwise unreasonably
damage the business. The categories of information omitted
include forward looking estimates and projections prepared
for internal management purposes, information regarding
BHP’s assets and projects that is developing and susceptible
to change, and information relating to commercial contracts
and pricing modules.
Section 1 of this Annual Report 2017 constitutes our Strategic
Report 2017. References to sections beyond section 1 are
references to sections in this Annual Report 2017. Shareholders
may obtain a hard copy of the Annual Report free of charge
by contacting our Share Registrars, whose details are set out
in our Corporate Directory at the end of this Annual Report.

BHP Annual Report 2017 3