Prelim Rslts Y/E 30/06/01-PT2

BHP Billiton Limited
20 August 2001



PART 2

                                 BHP BILLITON

                             PRELIMINARY RESULTS

                       FOR THE YEAR ENDED 30 JUNE 2001


                                    PART C

                          BHP BILLITON GROUP RESULTS

                                 BHP BILLITON

             PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2001


                                    PART C

                          BHP BILLITON GROUP RESULTS


                   Part C1: Operating and Financial Review


Highlights

  * Attributable profit, excluding exceptional items, for 2001 of US$2,189
    million, an increase of 26% from the previous year (2000 - US$1,743
    million).

  * Attributable profit, including exceptional items, of US$1,529 million
    (2000 - US$1,506 million).

  * Higher received prices, higher production and generally favourable
    exchange rate movements were the principal factors influencing the
    improved result.

  * Strong EBIT contributions, excluding exceptional items, from Carbon
    Steel Materials (+US$356m +66%), Petroleum (+US$346m +33%), Energy Coal
    (+US$245m +179%) and Aluminium (+US$85m +19%) partly offset by lower
    contributions from Steel (-US$132m -33%) and Stainless Steel Materials
    (-US$126m -62%).

  * Growth projects successfully commissioned: Aluminium - Mozal 1 and
    Worsley expansion; Base Metals - Antamina; Stainless Steel Materials -
    Cerro Matoso 2 and Yabulu.

  * Commitment of approximately US$2.1 billion capital expenditure on new
    growth projects.

  * Portfolio restructuring: equalisation of Queensland metallurgical coal
    interests; cessation of investment in HBI Venezuela; progress in agreeing
    terms to exit the Ok Tedi copper mine, (Papua New Guinea); reduction of
    equity in Ohanet liquids/gas field (Algeria) and sale of interest in
    Buffalo oil field; announcement of intention to spin-out BHP Billiton
    Ltd's remaining Steel assets.

  * Good progress on merger integration with an organisational structure
    established, senior appointments made and governance structures in place.
    Restructuring costs committed at year end amounted to US$42 million.

  * Sound financial leverage ratios - EBITDA interest cover (excluding
    exceptional items) of 11.1x, gearing of 38.4%.



BHP Billiton Group Financial Strength

The financial results for the year ended 30 June 2001 for the BHP Billiton
Group demonstrate the financial strength of the new merged group, exemplified
by strong cash flow generation, earnings capability across a range of
world-class business operations and underlying balance sheet strength.

The accompanying table provides the key financial information for the BHP
Billiton Group as at 30 June 2001, comparative with the corresponding period.


Year ended 30 June US$m                        2001      2000       % Change

Group turnover (a)                            19,079    18,402         3.7
EBITDA
- excluding exceptional items                  5,299     4,775        11.0
- including exceptional items                  4,211     4,015         4.9
EBIT
- excluding exceptional items                  3,627     3,027        19.8
- including exceptional items                  2,539     2,267        12.0
Attributable profit
- excluding exceptional items                  2,189     1,743        25.6
- including exceptional items                  1,529     1,506         1.5
Basic earnings per share (cents)
- excluding exceptional items                   36.8      30.4        21.1
- including exceptional items                   25.7      26.3        (2.3)
Net operating assets                          21,468    19,711         8.9
EBITDA interest cover                         11.1 x     9.1 x        22.0
(excluding exceptional items) (b)
Gearing                                        38.4%     34.2%        12.3
(net debt/(net debt + net assets))
Debt to equity ratio                           64.6%     55.2%        17.0
(net debt/attributable net assets)


 a. Including share of joint ventures and associates.

 b. For this purpose, interest includes capitalised interest and excludes the
    effect of discounting on provisions.

The attributable profit of US$1,529 million was influenced by a number of
exceptional items, which in aggregate reduced profit before taxation by
US$1,094 million and attributable profit by US$660 million.

The major items before taxation and equity minority interests included:

  * a charge to profit of US$520 million associated with the write-off of
    BHP Billiton's equity investment in HBI Venezuela and the establishment of
    provisions for related financial obligations to banks and other associated
    costs;

  * a charge to profit of US$430 million from the write-off of the Ok Tedi
    copper mine;

  * a US$114 million reduction in the carrying value of the Columbus
    Stainless Steel Joint Venture following conditional agreement to sell down
    the Group's interest;

  * a charge to profit of US$92 million related to merger transaction costs;
    and

  * a charge to profit of US$64 million related to organisational
    restructuring costs and provisions mainly related to the merger.

These items are partially offset by the following:

  * a US$128 million profit from sale of interests in the Central Queensland
    Coal Associates (CQCA) and Gregory Joint Ventures to Mitsubishi; and

  * a US$61 million profit from the sale of expansion rights at Mozal.

Excluding exceptional items, attributable profit increased by US$446 million
or 25.6% from US$1,743 million to US$2,189 million.

Net interest and similar items payable decreased from US$489 million to US$476
million.



Customer Sector Group Financial Results

The following table provides a summary of the Customer Sector Group financial
results for the year ended 30 June 2001. A detailed explanation of the factors
influencing the performance of the Customer Sector Groups is included below on
pages 12 to pages 19.

Year ended 30 June 2001        Turnover                    EBIT   Net operating
(US$ million)                            (excluding exceptional          assets
                                                         items)

Aluminium                         2,971                     523           4,730
Base Metals                       2,231                     485           3,834
Carbon Steel Materials            3,369                     894           2,289
Stainless Steel Materials           838                      79           1,598
Energy Coal                       1,982                     382           1,986
Petroleum                         3,361                   1,407           2,504
Steel                             3,760                     270           1,965
Exploration, Technology & New       251                       6             869
Business
Other activities                  1,251                     120             817
Group & Unallocated Items         (351)                   (539)             876
Inter-segment                     (584)                       -               -
BHP Billiton Group               19,079                   3,627          21,468



Taxation

The tax charge for the year was US$811 million and includes US$33 million
following the decision of the High Court (Australia) on 10 August 2001
regarding non-deductibility of financing costs. This represents an effective
taxation rate of 39.3%, compared to 14.1% for the previous year.

The effective rate was higher than the nominal underlying tax rates due to
exceptional and one-off items in the year. Excluding exceptional items, the
effective tax rate for the year was 29.9%.

Investing Cash Flows

Investing activities, including exploration, for the year totalled US$6.1
billion (excluding debt acquired) compared with US$2.0 billion in the previous
year.

This expenditure was funded largely out of the Group's substantial cash
generation (operating cashflow less interest and tax of US$3.8 billion) and
also through new equity (US$0.9 billion) and borrowings.


Acquisitions

Principal acquisition activity included:

  * the purchase of an additional 56% interest in Worsley alumina refinery
    for US$1,490 million;

  * the purchase of Rio Algom for US$1,187 million;

  * the purchase of 98.6% of Class A shares and 88.7% of Class B shares of
    Dia Met for US$398 million; and

  * BHP Billiton and Mitsubishi acquired QCT Resources (BHP Billiton's share
    US$221 million).

Divestitures

Divestitures generated proceeds of US$962 million, including:

  * the spin-out of the OneSteel long products business to BHP Billiton Ltd
    shareholders;

  * the equalisation of ownership interests of BHP Billiton and Mitsubishi
    in the CQCA and Gregory Joint Ventures;

  * the cessation of investment in HBI Venezuela;
  * the conditional sale of a 15% equity interest in the Ohanet wet gas
    field development in Algeria to Woodside. The transaction is subject to
    Algerian government and SONATRACH approval; and

  * the sale of BHP Billiton's interest in the Buffalo oil field (Western
    Australia).

BHP Billiton also announced its intention to spin-out its remaining Steel
business to BHP Billiton Ltd shareholders. This transaction is expected to be
completed by the end of financial year 2002.

Negotiations continue with relevant parties with a view to concluding the exit
from the Ok Tedi copper mine.

Growth Projects

During the year, BHP Billiton committed approximately US$2.1 billion to new
growth projects, including the following:

Project                  Share          Share of Production          Completion
                          of
                         Capex
                         US$m

Aluminium Mozal II        405   120,000 tonnes per annum of             FY04
          Expansion             additional production
          Mozambique
          BHP Billiton
          : 47.1%

Energy    San Juan        148   6.5 million short tons per annum of     FY02
          Underground           replacement production
Coal      USA
          BHP Billiton
          : 100%

Base      Copper          600   230,000 tonnes per annum average        FY03
Metals                          over 5 years of incremental copper
          Escondida             production
          Phase IV
          Chile
          BHP Billiton
          : 57.5%

          Tintaya Oxide   138   34,000 tonnes per annum of copper in    FY02
                                cathode
          Peru
          BHP Billiton
          : 100%

Carbon    Metallurgical   32    2.5 million tonnes per annum of         FY02
Steel     Coal                  incremental production
Materials
          Blackwater
          Expansion
          Australia
          BHP Billiton
          : 50%

Petroleum Ohanet Wet      430   58,000 barrels per day gross; net       FY04
          Gas Field             reserve entitlement of 40-57 mmboe
          Development           grossed up for Algerian taxes
          Algeria
          BHP Billiton
          : 45%

          North West      260   700,000 tonnes per annum of LNG         FY04
          Shelf Train 4
          Expansion
          Australia
          BHP Billiton
          : 16.67%

          Laminaria II    23    21,000 barrels of oil per day           FY02
          Oil Field             incremental oil production at peak
          Development
          Australia
          BHP Billiton
          : 32.6%

          Echo Yodel      18    5,000 barrels per day of condensate     FY02
          Condensate
          Development
          Australia
          BHP Billiton
          : 16.67%

Progress continued on the development of a number of projects approved in
prior financial years, or as part of recent acquisition activity. These
include:

  * Typhoon oil field development (Gulf of Mexico) - first production July
    2001 20,000 barrels of oil per day and 30 million standard cubic feet of
    gas per day net. Capital expenditure of US$128 million net to BHP
    Billiton;

  * Cerro Matoso nickel mining and smelting operation (Colombia) - Line 2
    produced its first ferronickel in January 2001, ahead of schedule and 15%
    below budget. Output is expected to double to around 55,000 tonnes per
    annum (BHP Billiton 100%);

  * the Antamina copper and zinc project (Peru) - reached mechanical
    completion in May 2001, under budget and more than two months ahead of
    schedule. It is anticipated that the project will reach its full design
    capacity of 70,000 tonnes per day of ore well in advance of December 2001
    and significantly ahead of the original schedule of February 2002 (BHP
    Billiton 33.7%);

  * 401/402 oilfield development (Algeria) - first production in financial
    year 2003, with peak production of 80,000 barrels of oil per day (BHP
    Billiton's interest under the Production Sharing Contract is 45%). BHP
    Billiton's reserve entitlement is approximately 60 million barrels grossed
    up for Algerian taxes. Capital expenditure for BHP Billiton of US$190
    million; and

  * Zamzama gas field (Pakistan) - commenced production under an extended
    well test in March 2001 at a peak rate of 39 mmscfd of gas net to BHP
    Billiton.

Current Growth Projects

Feasibility and planning work is continuing on a number of new projects, one
already approved and some others which are expected to be presented for
capital approval during financial year 2002.

These projects include the following:

  * Mount Arthur North energy coal mine development (New South Wales)
    (approved in July 2001) - 12.1 million tonnes of saleable coal by 2006,
    initial production from 2003. Capital expenditure of US$411 million (BHP
    Billiton 100%);

  * Carbones del Cerrejon Expansion (Colombia) - a feasibility study is
    underway to increase capacity of the steaming coal mine from 3 million
    tonnes per annum to
    9 - 10 million tonnes per annum (BHP Billiton 33%);

  * Escondida Norte development (Chile) - pre-feasibility study for
    potential 110,000 tonnes per annum gross of additional production. (BHP
    Billiton 57.5%);

  * Cerro Colorado copper (Chile) - debottlenecking of production from the
    current capacity of 110,000 tonnes per annum to 125,000 tonnes per annum
    has been approved (BHP Billiton 100%);

  * Mining Area C iron ore development (Western Australia) - 15 million
    tonnes per annum mining operation, expected to commission in financial
    year 2004 (BHP Billiton 85%);

  * Mad Dog oil field development (Gulf of Mexico) - appraisal work and
    pre-development work has commenced, with a submission for Board approval
    expected in calendar year 2001 (BHP Billiton 23.9%);

  * Atlantis oil field development (Gulf of Mexico) - appraisal work and
    pre-development work has commenced, with a submission for Board approval
    expected in financial year 2002 (BHP Billiton 44%);

  * Hillside 3 Aluminium smelter expansion (South Africa) - feasibility
    study to construct a third potline, adding a further 130,000 tonnes per
    annum to Hillside's capacity (BHP Billiton 100%);

  * Yabulu/Ravensthorpe (Australia) - feasibility study on the expansion of
    the back end of the Yabulu nickel refinery to treat intermediate product
    from the Ravensthorpe nickel laterite mine and acid leach plant producing
    additional throughput of 30,000 - 35,000 tonnes per annum of nickel (BHP
    Billiton 100%);

  * Spence copper mine (Chile) - pre-feasibility work has been completed and
    a full feasibility study is now in progress (BHP Billiton 100%);

  * Minerva Gas field development (Victoria) - final feasibility work is
    being undertaken, with a submission for Board approval expected in
    financial year 2002 (BHP Billiton 90%); and

  * Zamzama full field development (Pakistan) - expansion of production from
    the current contracted level of 70 mmscfd gross, dependent on securing of
    gas contracts. Full field production up to 320 mmscfd gross is expected
    (BHP Billiton 38.5%).

Balance Sheet

Total assets less current liabilities for the Group were US$22,793 million at
30 June 2001, an increase of US$1,035 million from the figure for 30 June
2000.

Equity shareholders' funds for the Group were US$11,340 million at 30 June
2001 largely unchanged from the previous year due to the impacts of exchange
rates, write-downs and provisions. Net debt for the Group increased by 20.2%
to US$7,321 million due to financing of investing activities.

As a consequence of the above, the gearing ratio increased to 38.4% compared
with 34.2% for the previous year. The debt to equity ratio increased from
55.2% to 64.6%.


Risk Management and Hedging

During the year, BHP Billiton Ltd undertook a detailed quantitative analysis
of its portfolio of assets, as part of a portfolio risk management review. The
outcome was the adoption of a self-insurance model utilising natural hedges as
the principal means of managing market risk. This decision was based on the
significant degree of diversification of cash flow at risk within the
portfolio.

The BHP Billiton Ltd quantitative risk management model has been utilised to
evaluate the cash flow at risk for the combined BHP Billiton Group portfolio
and a proposal covering commodity and currency hedging for BHP Billiton is to
be considered by the Board in August 2001.


Capital Management

At the time of announcing BHP Billiton Ltd's third quarter financial results,
an on-market share buyback of up to 90 million shares (approximately 5% of BHP
Billiton Ltd's issued capital) was announced. Following implementation of the
DLC, the buyback programme has been adjusted so that the number of shares to
be re-purchased continues to represent approximately five per cent of issued
capital. Commencement of re-purchase of shares had not occurred as at the end
of the financial year.


Dividends

Total dividends for the year amounted to US$754 million, of which US$476
million related to BHP Billiton Ltd and US$278 million related to BHP Billiton
Plc.

BHP Billiton Ltd paid shareholders a fully franked dividend of A$0.26 per
fully paid share on 2 July 2001. This franked dividend together with the
unfranked dividend of A$0.25 per share in December 2000, takes the total
dividend for 2001 to A$0.51 per share on a pre bonus share issue basis.

The Board of BHP Billiton Plc declared a second interim dividend (in lieu of a
final dividend) of US$0.08 per share, making a total dividend for the year of
US$0.12 per share.

Merger Integration

Good progress has been made in integrating the two companies, including the
establishment of:

  * an organisational structure which enabled the merged entity to undertake
    its business activities on a combined basis from day one. The
    establishment of this organisational structure included personnel
    appointments to the vast majority of senior management positions;

  * Customer Sector Groups - assets combined into natural customer
    groupings, supported by a centralised marketing structure;

  * Corporate governance arrangements, including designated capital
    expenditure limits at the Customer Sector Group level, and the
    establishment of an Investment Review Committee responsible for reviewing
    the risks for capital expenditure greater than US$100 million, independent
    risk assessments and project execution management oversight. Corporate
    governance arrangements are designed to meet best practice in the UK and
    Australia; and

  * Health Safety and Environment, as well as Risk Assessment and Assurance
    governance arrangements.

In addition, the combined portfolio of assets has been reviewed according to
defined criteria. The inventory of growth projects within the portfolio has
also been reviewed with initial plans for project sequencing and an assessment
of the impact on the commodity mix of the portfolio has been undertaken.

The detailed planning process and detailed decisions on organisational
structure have resulted in restructuring costs of US$42 million pre-tax
(including US$6 million relating to financing facilities) being recognised at
year end.

Business Outlook

The slow-down in the global economy has intensified in the last six months,
reducing industrial production and, consequently, commodity demand across the
OECD. Notwithstanding generally low consumer inventory levels, the prices of a
number of traded metals have fallen sharply.

Base metals, stainless steel materials and alumina have borne the brunt of the
slow down. Copper prices are at their lowest level in several years. Stainless
steel raw materials have been affected by the downturn in stainless steel
consumption and the resultant smelting cutbacks undertaken by producers to
mitigate stock build-up. Power-related disruptions to aluminium supply from
the Pacific North West USA, and elsewhere, while offsetting particularly the
weakening consumption in North America, have in turn reduced demand for
alumina, with a resultant fall in the spot price.

Fortunately, a number of our important businesses have so far been sheltered
from the global slowdown. Oil prices have remained in the range of US$26 to
US$27 per barrel as OPEC has adjusted supply to meet demand. The underlying
demand for seaborne energy coal also remains firm, especially in the US
market, though prices have levelled out after the strong rise during the first
half of 2001. Metallurgical coal prices have also been sustained by a tight
supply situation and strong demand. Iron ore prices are approaching cyclical
highs, reflecting robust growth in seaborne iron ore trade for imports to
China and elsewhere in Asia.

A world-wide recovery is unlikely until the economy in the US begins to
improve, the European market reverses its recent slow-down and there is a
resolution of the persistent recessionary environment in Japan. While a global
slowdown will impact our financial results, our robust low-cost operations and
the diversified nature of our businesses will buffer changes in individual
products and markets, and provide resilience to our earnings and cash flows.


Analysis of EBIT including exceptional items by Customer Sector Group

Aluminium

(US$m)          2001  2000 Change% ('000 tonnes)              2001  2000 Change%

Turnover       2,971 2,357   +26   Alumina production        2,938 1,878   +56
EBIT             576   438   +32   Aluminium production        984   883   +11
Net operating  4,730 3,216   +47   LME Aluminium (cash,      1,539 1,516    +2
assets                             US$/t, ave)

Aluminium's EBIT was US$576 million, an increase of US$138 million or 32%
compared with the corresponding period.

Major factors which affected the comparison of results were:

  * higher volumes from the addition of Worsley (US$35 million) and Mozal 1
    (U$25 million);

  * sale of expansion rights at Mozal (US$61 million);

  * US$14 million from the Gove break fee; and

  * favourable effect of lower Rand and Real exchange rates on costs.

These were partially offset by:

  * increased pot relining costs at Hillside (US$26 million); and

  * an increase in London Metal Exchange (LME) aluminium price linked costs.

Aluminium smelters produced 984,000 tonnes of metal, compared with 883,000
tonnes produced over the corresponding period, with the newly commissioned
Mozal I contributing 93,000 tonnes. During the same period alumina output rose
by 1,060,000 tonnes to 2,938,000 tonnes. Of the total production amount,
1,632,000 tonnes was attributable to Worsley, with the additional 56 per cent
stake purchased in January 2001 contributing 720,000 tonnes.

Average aluminium unit cash costs rose three per cent over last year's costs,
as a result of an increase in LME-linked production costs, the start-up costs
of Mozal and significantly higher pot relining costs at Hillside. Alumina unit
cash costs decreased nine per cent over the same period last year mainly due
to lower unit cash costs at Worsley.


Base Metals

(US$m)          2001   2000 Change% ('000 tonnes)           2001   2000 Change%

Turnover       2,231  2,374   -6    Copper production      1,021    848   +20
EBIT              47    478  -90    Lead production          217    207    +5
Net operating  3,834  2,244  +71    LME Copper (cash,         81     79    +3
assets                              USc/lb, ave)              


Base Metals' EBIT was US$47 million, a decrease of US$431 million or 90%
compared with the corresponding period.

Major factors which affected the comparison of results were:

  * the write-off of the Ok Tedi copper mine (US$430 million before equity
    minority interests); and

  * lower average gold, silver and zinc prices.

These were partially offset by higher copper production (up 173,400 tonnes)
mainly due to the acquisition of Rio Algom in October 2000. The inclusion of
Rio Algom contributed US$49 million to EBIT during the year.

Production of total copper contained in concentrate and cathode in 2001 was
20% higher than the previous year, reflecting the Rio Algom acquisition and
higher production at Ok Tedi as a result of increased mill throughput, partly
offset by lower head grade at Escondida. Production of silver, lead and zinc
increased for the period, mainly reflecting higher output from Cannington as a
result of the debottlenecking of the mill.

Over the last year the BHP Billiton Group has been negotiating with other
shareholders on the terms and conditions related to its exit from Ok Tedi.
Based on the status of these negotiations it has been decided to write-off the
BHP Billiton Group's share of Ok Tedi's net assets. From 1 July 2001, no
profit will be recognised for Ok Tedi except to the extent that dividends are
received.

Exploration expenditure for the year was US$56 million (2000 - US$11 million).
Exploration charged to profit was US$19 million (2000 - US$8 million).



Carbon Steel Materials

(US$m)           2001   2000 Change% (million tonnes)        2001  2000 Change%

Turnover        3,369  2,842   +19   Iron ore production     65.9  59.8   +10
EBIT              836   (157)   Nm   Metallurgical coal      37.1  30.6   +21
                                     production
Net operating   2,289  2,950   -22   Manganese alloys         0.6   0.7    -5
assets                               production

Carbon Steel Materials' EBIT was US$836 million, an increase of US$993 million
compared with the corresponding period.

Major factors which affected the comparison of results were:

  * a profit US$128 million from the sale of interests in the CQCA and
    Gregory joint ventures to Mitsubishi;

  * higher iron ore and metallurgical coal prices and volumes; and

  * the write-off of HBI Western Australia (US$695 million) in the
    corresponding period.

These were partly offset by:

  * increased operating losses from HBI Venezuela and the write-off of the
    Group's investment together with provisions and other associated costs due
    to the decision to cease further investment; and

  * higher costs in Queensland coal operations due to the impact of
    industrial action and dragline maintenance shutdowns, and Western
    Australia iron ore operations due to higher royalty and diesel costs.

Western Australia iron ore operations sold a record 71.3 million wet tonnes
(100 per cent terms) for the year, an increase of 8.1 million wet tonnes over
the previous year. Record Yandi shipments of 30.7 million wet tonnes for the
year contributed significantly to this result. BHP Billiton's share of Samarco
(Brazil) iron ore production was 7.5 million tonnes, 11% higher than the
previous year.

BHP Billiton's share of Queensland coal production was 30.6 million tonnes,
26% higher than the previous year, mainly refecting the acquisition of QCT
Resources Ltd. Coal production from Illawarra was 6.6 million tonnes, 5%
higher than the previous year.

Total manganese alloy production of 642,000 tonnes was 5% lower than the
previous year, while manganese ore production of 3.8 million tonnes was 5%
higher than the previous year.

Hot briquetted iron production was 80% higher than the previous year mainly
reflecting continued production ramp-up at the Western Australia plant.

The decision to cease further investment in HBI Venezuela was announced in the
third quarter of the 2001 financial year following a detailed review of the
future economic value of this asset. The review identified that, in the
context of changed operating and market conditions, the BHP Billiton Group
would not expect the plant to meet the BHP Billiton Group's operational and
financial performance targets necessary to justify any further investment in
the project, nor would it satisfy bank completion requirements for project
financing. These factors coupled with possible partner funding issues
influenced the decision.


Stainless Steel Materials

(US$m)          2001   2000 Change% ('000 tonnes)             2001  2000 Change%

Turnover         838    977   -14   Nickel production         60.8  54.1   +12
EBIT              74    205   -64   Chrome alloys production   908 1,055   -14
Net operating  1,598  1,487    +7   LME Nickel (cash, US$/lb, 3.28  3.75   -12
assets                              ave)

Stainless Steel Materials' EBIT was US$74 million, a decrease of US$131
million or 64% compared with the corresponding period.


Major factors which affected the comparison of results were:

  * lower prices for nickel (down 12%) and cobalt by-product (down 22%); and

  * lower ferrochrome prices reflecting falling world demand for stainless
    steel and increased use of stainless steel scrap.

These were partially offset by:

  * higher nickel production; and

  * lower unit costs at Cerro Matoso (Colombia) and Yabulu (Australia).

Both nickel operations achieved record production volumes. The Cerro Matoso
Line 2 expansion produced its first ferronickel in January 2001, three months
ahead of schedule. The Yabulu refinery rehabilitation programme resulted in
output at a record level of 28,960 tonnes, 15% above the previous year, and
improved metal recoveries. Unit cost efficiencies were realised at both
operations.

Given the weakness in the ferrochrome market, Samancor Chrome accelerated its
programme of furnace upgrades and cut back production over the year. At year
end, eight chrome furnaces (representing some 30% of total capacity) were shut
down. The furnace closures enabled the business units involved to implement a
significant restructuring in order to achieve permanent fixed cost
improvements.


Energy Coal
(US$m)            2001  2000 Change% (million tonnes)      2001  2000 Change%

Turnover         1,982 1,597   +24   Energy coal           92.9  93.9   -1
                                     production
EBIT               348   137  +154
Net operating    1,986 1,665   +19
assets

Energy Coal's EBIT was US$348 million, an increase of US$211 million or 154%
compared with corresponding period.

Major factors which affected the comparison of results were:

  * higher export energy coal prices;

  * cost savings and efficiencies; and

  * favourable effect of lower Rand/US$ exchange rates on costs.

At the end of the financial year, Free On Board (FOB) prices for energy coal
were between US$33-34 per tonne. This is a significant increase on the
previous year.

Total energy coal production was 92.9 million tonnes, 1% lower than the
previous year.

South African production of 61.3 million tonnes was 8% lower than the previous
year due in part to the sale of the Matla and Glisa collieries to Eyesizwe
Mining and to the cutback in production at Koornfontein during the year.
Koornfontein and Douglas performed exceptionally well following restructuring
and with the achievement of the envisaged productivity improvements there were
notable reductions in unit operating costs.

United States production of 14.9 million tonnes was 3% higher than the
previous year and included record production from San Juan Coal Company of 7.3
million tonnes. Production in Australia and Indonesia were also higher than
the previous year.

During the year the BHP Billiton Group acquired interests in two Colombian
coal assets: Carbones del Cerrejon (CdelC - BHP Billiton 33.3%) in September
2000 and Cerrejon Zona Norte SA (CZN - BHP Billiton 16.7%) in November 2000.
The BHP Billiton Group's share of production and EBIT from CdelC and CZN for
the year was 2.8 million tonnes and US$16 million respectively.


Petroleum

(US$m)         2001   2000 Change% Production:               2001  2000 Change%

Turnover      3,361  2,971   +13   Crude oil and condensate  79.1  79.8    -1
                                   (mmbbl)
EBIT          1,407  1,142   +23   Natural gas (bcf)        261.8 238.6   +10
Net operating 2,504  2,796   -10   Ave realised oil price   28.04 22.86   +23
assets                             (US$/bbl)

Petroleum's EBIT was US$1,407 million, an increase of US$265 million or 23%
compared with the corresponding period.

Major factors which affected the comparison of results were:

  * higher average realised oil price net of commodity hedging of US$28.04
    per barrel compared to US$22.86 per barrel in the corresponding period.
    The average realised oil price before commodity hedging was US$29.39 per
    barrel (2000 - US$25.21 per barrel);
  * higher natural gas, liquefied natural gas (LNG) and liquefied petroleum
    gas (LPG) prices; and
  * higher profits from the Laminaria/Corallina oil fields which commenced
    operations in November 1999.

These were partly offset by:

  * lower Bass Strait (Victoria) oil sales volumes;
  * lower profits from the sale of assets; and
  * higher exploration charged to profit reflecting exploration activity in
    the Gulf of Mexico, Latin America and Algeria.

Oil and condensate production was 1% lower than the corresponding period due
to natural field decline at Bass Strait, the sale of the Buffalo oil field and
lower Bruce (UK) production due to shut-ins for repairs. These were partly
offset by higher volumes at the Laminaria/Corallina oil fields due to this
being their first full year of production, Liverpool Bay (UK) due to strong
performance following a major maintenance shutdown, and Griffin (North West
Australia) due to the impact of infill wells and favourable weather conditions
for operations.

Natural gas production was 15% higher than the corresponding period which was
largely attributable to higher volumes from Bass Strait, higher volumes from
Bruce and Griffin, and the commencement of production at the Zamzama field
late in March 2001.

LNG production at the North West Shelf (NWS) in Western Australia was 5% lower
than the corresponding period mainly due to longer than planned maintenance
shut-downs in October 2000.

Exploration expenditure for the year was US$206 million (2000 - US$153
million). Exploration charged to profit was US$144 million (2000 - US$118
million).

Steel

(US$m)          2001  2000 Change% ('000 tonnes)           2001   2000 Change%

Turnover       3,760 5,393   -30   Raw steel              5,432  5,461   -1
EBIT             248   249     -   Marketable steel       5,316  4,883   +9
                                   products
Net operating  1,965 3,749   -48   (core steel business
assets                             only)

Steel's EBIT was US$248 million, in line with the corresponding period.

Major factors which affected the comparison of results were:

  * a variety of items in the corresponding period totalling a loss of
    approximately US$50 million, comprising a loss on sale of US West Coast
    businesses, overall profits from discontinued businesses and tax benefits
    from changes in Australian company tax rates;

  * improved operating performance from the Asian businesses; and

  * additional tax benefits in respect of losses from New Zealand
    operations, for which no deduction has previously been recognised.

These were partly offset by:

  * lower international prices;

  * lower sales volumes of coated products to the Australian market
    reflecting reduced building activity; and

  * the impact of industrial action at Port Kembla steelworks (New South
    Wales).

Steel despatches from flat and coated operations were 5.34 million tonnes for
the year, 10% above the corresponding period. Australian domestic despatches
were 2.09 million tonnes, 9% above the corresponding period. The inclusion of
despatches to OneSteel Limited (previously treated as despatches within the
BHP Billiton Ltd Group) were partly offset by lower sales volumes of coated
products.

Australian export despatches were 2.36 million tonnes, up 15%. New Zealand
steel despatches were 0.54 million tonnes, down 3%. Despatches from overseas
plants were 0.36 million tonnes, up 9%.

Steel despatches from discontinued operations for the year were 0.70 million
tonnes, 77% below the corresponding period primarily due to the spin-out of
OneSteel Limited in October 2000 and sale of the US West Coast businesses in
the fourth quarter of the corresponding period.


Exploration, Technology and New Business

(US$m)            2001 2000 Change% ('000 carats)            2001  2000 Change%

Turnover           251  224   +12   EkatiTM diamonds        1,428 1,301   +10
                                    production
EBIT               (7)   12   Nm
Net operating      869  416  +109
assets

The result for Exploration, Technology and New Business was an EBIT loss of
US$7 million compared with an EBIT of US$12 million in the corresponding
period.

EkatiTM diamond production was 10 per cent higher than the previous year due
mainly to higher recoveries of lower quality diamonds.

Total exploration charged to profit was US$75 million, an increase of US$5
million compared with the corresponding period.


Other Activities

The result for Other Activities was an EBIT of US$6 million for the year
compared with an EBIT of US$163 million in the corresponding period.

The result for the year included an exceptional item of US$114 million (before
taxation and equity minority interests) representing the write-down of the
carrying value of the Columbus Joint Venture.

At Richards Bay Minerals overall titanium slag sales volumes declined slightly
on the previous year reflecting a reduction in pigment production as a
consequence of slowing economic activity in the United States and Europe.
This, together with marginally higher sales prices, resulted in a 2.5% decline
in turnover compared to the previous year. This was more than offset by the
benefits of a relatively strong zircon market as well as reduced costs
principally arising from depreciation of the Rand.

Group and Unallocated Items

The result for Group and Unallocated Items was an EBIT loss of US$996 million
for the year compared with an EBIT loss of US$400 million in the corresponding
period.

The result for the year included an EBIT loss of US$340 million representing
provisions for financial obligations to banks and other provisions related to
the decision to cease further investment in HBI Venezuela.

The current year also included EBIT losses of approximately US$360 million
from external foreign currency hedging compared with EBIT losses of
approximately US$175 million in the corresponding period. This mainly reflects
the lower value of the Australian dollar relative to the US dollar for
currency hedging contracts settled during the year.

The result also included merger transaction and restructuring costs of US$114
million.


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