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1.2 Chief Executive Officer’s Report 1

‘Over the past five years, we have Strategic Report
laid the foundations to significantly
improve returns and grow value.’

Andrew Mackenzie
Chief Executive Officer

Dear Shareholder,
To meet the challenges of today, we must think in decades and generations. BHP’s ability to plan, work and invest
for the long term has always been our competitive advantage.
Over the past five years, we have laid the foundations to significantly improve returns and grow value. The benefits
of this deliberate path are clear in our FY2017 results.
Safety is, and always will be, our highest priority. In the last 12 months, tragically, two of our colleagues died at
work – one at our Escondida mine in Chile in October 2016 and one at the Goonyella Riverside mine in Australia
in August 2017. I offer my sincere condolences to the families, friends and colleagues of the two team members
who lost their lives.
The most important job our people have, myself included, is to make sure our team goes home safe at the end
of each day. While our safety performance has improved in terms of total recordable injury frequency (down to
4.2 per million hours worked), we have renewed our efforts to help our people understand the risks and critical
controls that must be in place to protect the health and safety of everyone who works with BHP.
Our new five-year sustainability performance targets came into effect 1 July 2017. These targets are a public
statement to our stakeholders about our commitment to sustainability and are consistent with our commitment
to the Paris Agreement and the United Nations Sustainable Development Goals. They are also at the heart of how
we work at BHP – we are determined to make a positive difference through our performance.
Our FY2017 financial and operational results were strong. All our operated assets were free cash flow positive
and delivered a total free cash flow of US$12.6 billion. We used this cash to strengthen the balance sheet
and return US$4.4 billion to you, our shareholders.
We have achieved a great deal over the past year, but we will not stand still. We are committed to maximising
cash flow, maintaining capital discipline and improving value and returns.
We will deliver consistent and transparent application of our capital allocation framework, which includes cash
returns to shareholders.
Our strong performance in FY2017 was achieved thanks to the hard work and passion of the people of BHP.
It is a testament to what we can all achieve when we come together as a team of teams.
We know that the most diverse teams are those who perform the best – our data tells us this. That’s why we
were proud to announce at last year’s Annual General Meetings our aspirational goal to achieve gender balance
by FY2025. BHP has made great progress in 12 months, but we know we still have a long way to go.
The past financial year has taught us many things, but especially this – the world needs people who think boldly,
think creatively and bring the best of themselves to what they do. It needs people who think big. For corporations
like BHP, it is up to us to shape change for the better, through innovation, productivity and technology. It is our
responsibility to have a voice and be transparent.
Thank you to our people, shareholders, suppliers, customers and host communities who work with us. Together,
we work to improve the lives of millions of people across the world and drive global economic growth.
I also extend my thanks to outgoing Chairman Jac Nasser, who has been a source of strength and leadership
for BHP, and to me personally, over the last decade. His remarkable legacy and contribution will be felt for years
to come.
BHP is well-positioned for the future with our incoming Chairman, Ken MacKenzie. Together with the Board, I look
forward to FY2018 and beyond as we grow shareholder value and increase returns.

Andrew Mackenzie
Chief Executive Officer

BHP Annual Report 2017 5