BHP BILLITON RESULTS FOR THE
YEAR ENDED 30 JUNE 2005

The above financial results are prepared in accordance with UK generally accepted accounting principles (GAAP) and are unaudited. Financial results in accordance with Australian GAAP are provided on page 32. All references to the corresponding period are to the year ended 30 June 2004.

Commentary on the Group Results

The consistent execution of the BHP Billiton business strategy has positioned the Group to take advantage of the current strong market conditions and deliver another record result. Attributable profit, excluding exceptional items, of US$6.5 billion is an increase of 85.5% from the previous year with available cash flow (after interest and tax) of US$8.7 billion up 70.4% over last year. The benefits of commodity diversification, focussing on large, low cost, long life assets, capturing and sharing efficiencies across our businesses globally and the identification of, and continued investment in, value adding growth opportunities throughout the cycle, are not only reflected in the current result but enable us to capture our share of demand growth from the rapidly developing regions of the world.

During the year, the Group brought eight new growth projects into production, bringing to 24 the total number of major growth projects delivered over the last four years. This, in combination with the continuing benefit derived from operational excellence initiatives, contributed to record production being achieved in 11 commodities including iron ore, metallurgical coal, natural gas, aluminium, nickel, silver, and manganese ore and alloy, at a time of strong demand and increased product prices. Production volumes for energy coal and copper also increased during the current financial year. Record production was complemented by record shipments for a number of commodities reflecting, in part, the benefits of operating our own port facilities and providing freight solutions for an increasing proportion of our customers.

Four further major growth projects were approved during the year: Spence copper cathode project (Chile), Rapid Growth Project 2 in iron ore, North West Shelf LNG Train 5 (both Australia) and the Neptune oil and gas project (US). This brings the total number of major projects currently under development to ten and represents a total investment of US$5.4 billion. We also have four smaller projects under development. In total, our pipeline of projects in execution or feasibility currently represents US$11.9 billion of growth related investments. In addition, the successful acquisition of WMC Resources Limited (WMC), represents a further investment of US$7.2 billion, and immediately adds world class assets to the Group's existing nickel and copper businesses, as well as introducing uranium to the Group's suite of energy products. In combination, these investments position us to respond to customer demand globally and enhance the option value embedded in our asset portfolio.

The Group's strong cash flow also underpins the Group's balance sheet strength and allows for increasing returns to shareholders. In November 2004 the Group completed an off-market share buyback programme by spending US$1.78 billion to repurchase 180.7 million of BHP Billiton Limited shares at A$12.57, at what was an attractive discount to the market price. In February 2005, we announced the rebasing of our dividend payment from 9.5 to 13.5 US cents per share. The Group's progressive dividend policy continues, with the announcement today of a final dividend of 14.5 US cents per share. This represents a full 5.0 US cent increment on last year's final dividend and brings the total dividends for the 2005 financial year to 28.0 US cents per share.

In March 2005 the Group announced a cash offer for WMC, an Australian based resource company. As of 30 June 2005 BHP Billiton owned approximately 93% of WMC, with 100% ownership achieved on 2 August. BHP Billiton's results for the 2005 financial year include the contribution from WMC for the month of June 2005.

This transaction provides the ability to build on the Group's existing nickel and copper businesses, as well as introducing uranium to our suite of energy products. In addition to providing immediate production to service global customers, the acquisition provides significant growth opportunities. The transaction is fully aligned with our strategy of developing, operating and maximising the performance of large, long life, low cost assets and provided a unique opportunity to acquire operational tier 1 assets in a stable, developed economy well positioned to service the growing demand for commodities in Asia.

The planning process for the integration of the WMC assets into the BHP Billiton portfolio began in late 2004, and a dedicated integration team has been in place since our bid was announced in March 2005. This integration, critical to the early realisation of value, is proceeding to plan. Unfortunately, as a consequence, in excess of 400 permanent positions (including those filled via contractors) are expected to be eliminated. The one-off cost generated by this activity is expected to be in line with previous advice, and US$50 million of this amount has been expensed in the current period as an exceptional item. Annual corporate cost efficiencies are expected to be in line with previous advice of A$115 million.

The management of the former WMC assets has now been devolved to the Stainless Steel Materials, Base Metals, and Diamonds and Speciality Products Customer Sector Groups (CSGs), and the financial results of the assets are reported within these groups.

Earnings before interest, tax, depreciation, impairments and amortisation (EBITDA) excluding exceptional items, increased by 52.5% to US$11.4 billion from US$7.5 billion in the corresponding period. Earnings before interest and taxation (EBIT), excluding exceptional items, were US$9.3 billion compared with US$5.5 billion for the corresponding period, an increase of 70.0%. 

The following table and commentary detail the approximate impact of the principal factors that affected earnings before interest and taxation for the current year ended 30 June 2005 compared with the corresponding period:

Stronger commodity prices across the suite of products increased EBIT by US$5,665 million, with higher prices achieved for iron ore, copper, metallurgical coal, petroleum products, energy coal, aluminium, manganese alloy, nickel and diamonds being the predominant contributors.

New operations increased EBIT by US$140 million, primarily due to first production from ROD (Algeria) which commenced commercial production in October 2004, the first full year of production from Ohanet (Algeria) which commenced commercial production in October 2003, and the start of oil production from Mad Dog (US) in January 2005.

The acquisition of WMC also resulted in a US$35 million favourable impact on EBIT with the inclusion of profit for the month of June.

The current period's EBIT included US$5 million of additional profits on the sale of non-core assets. In addition, further profits on the sale of non-core assets have been included in exceptional items.

Relative to the prior year, exchange rate movements had a negative impact on EBIT of US$465 million. The continued strength of the Australian dollar and rand against the US dollar had an overall unfavourable impact on operating costs and translation of net monetary liabilities of US$320 million and US$30 million respectively. In addition, the prior period included gains on legacy Australian dollar to US dollar currency hedging of US$39 million which expired during that year.

Higher price-linked costs decreased EBIT by US$565 million, primarily due to higher amounts of tax paid on petroleum products in Australia, higher royalties and increased LME-linked costs.

Increased costs of US$775 million were primarily due to higher fuel, labour, raw material and other operating costs, an increase in stripping and maintenance related activities and development expenditure. The increase in costs was caused, in part, by the increased level of activity currently experienced in the resources industry. Although the impact is of varying degrees globally, these pressures are particularly acute in Australia. A portion of the increase in costs was deliberately incurred by the Group to maximise production to capture current prices. Increased costs were partially offset by continued operating cost savings from improvement initiatives and efficiency gains.

Inflationary pressures, mainly in Australia and South Africa, had an unfavourable impact on EBIT of US$235 million.

Ceased and sold operations had an unfavourable impact of US$190 million and includes US$135 million relating to ceased production at Boodarie Iron in Western Australia after it was placed on care and maintenance during the year. The unfavourable impact also included the loss of earnings from the Laminaria and Corallina oil fields following their sale in January 2005.

Exploration expense was US$20 million higher than the corresponding period.

Other items increased EBIT by US$172 million and include the favourable impact of earnings from sales of third party product, benefits of freight risk management activities, and profit on the close out of cash settled derivative contracts for WMC shares.

Despite higher US dollar interest rates, net interest expense fell from US$502 million to US$421 million during the period. This was principally driven by lower average debt levels and increased interest income from higher average cash balances and higher interest earning rates compared to the corresponding period. This was partially offset by higher expense from discounting of provisions and lower capitalisation of interest. The corresponding period included exchange losses on net debt of US$133 million, primarily related to the translation of rand denominated debt.

The tax charge on earnings, excluding exceptional items, was US$2,215 million, representing an effective rate of 24.9%. Excluding the impacts of non tax-effected foreign currency adjustments, translation of tax balances and other functional currency translation adjustments, the effective rate was 26.2%. When compared to the UK and Australian statutory tax rate (30%), the underlying effective tax rate benefited 3.9% due to the recognition of US tax losses (US$350 million). In addition, investment incentives and development entitlements were recognised during the period which were offset, to some extent, by non-deductible accounting depreciation and amortisation and other items.

Exceptional items reduced profit after taxation (before minority interests) by US$64 million and attributable profit by US$114 million, and incorporated the items outlined below.

Profit on disposal of various assets and interests totalled US$298 million (US$282 million after tax and before minority interests) and included:

• The Group disposed of its interest in the Laminaria and Corallina oil fields to Paladin Resources plc in January 2005;
• BHP Billiton disposed of its economic interest in the majority of its South African chrome business to the Kermas Group in June 2005. In addition, the Group sold its interest in the Palmiet chrome business to Mogale Alloys in May 2005. After the minority share of profit after tax of US$50 million, the Group's share arising from the sale of the chrome businesses was US$52 million; and,
• In December 2004 the sale of an equity participation in the North West Shelf (NWS) Project's gas reserves in Western Australia to China National Offshore Oil Corporation (CNOOC) was completed. 

Following a decision to close the Boodarie Iron (Australia) operations permanently as of today, a charge of US$266 million (US$80 million tax benefit) relating to termination of the operation has been recognised. The charge primarily relates to settlement of existing contractual arrangements, plant decommissioning, site rehabilitation, redundancy and other costs associated with the closure.

As part of the Group's regular review of decommissioning and site restoration plans, the Group reassessed plans in respect of certain closed operations. A total charge US$121 million (US$104 million after tax) was recorded and included:

• A charge of US$73 million (US$21 million tax benefit) in relation to revision of the Group's assessed rehabilitation obligation at closed mines at Ingwe (South Africa), predominantly resulting from revised water management plans; and,
• A charge of US$48 million (US$4 million tax expense) in relation to other closed mining operations.

The Group is required to recognise provisions and record a charge of US$79 million (US$56 million after tax) against earnings in respect of restructuring certain operations. This included US$50 million (US$15 million tax benefit) in respect of restructuring associated with the acquisition of WMC in June 2005 primarily relating to redundancy and termination costs, office closures and termination of previous contractual arrangements, and US$29 million (US$8 million tax benefit) for other restructurings, primarily for redundancies at Ingwe (South Africa).

The corresponding period included exceptional items as follows:

• A charge of US$534 million (US$512 million after tax) in relation to certain closed operations;
• A gain of US$66 million (US$48 million after tax) in relation to a settlement with Dalmine SpA with respect to the failure of an underwater pipeline;
• A tax benefit of US$95 million resulting from the restatement of deferred tax balances following the election to consolidate Australian subsidiaries under the Australian tax consolidation regime; and,
• A tax benefit of US$238 million arising from prior period taxation deductions and foreign tax credits available in the US and Canada.

Available cash flow after interest and tax increased by 70.4% to US$8.7 billion. The key components of this increase were increased cash generated from operating activities (mainly due to higher profits), partly offset by increased taxation payments.

Spending on capital, exploration and investment expenditures totalled US$11.0 billion for the period. Expenditure on growth projects and investments amounted to US$10,467 million, including US$6,594 million for the acquisition of WMC, US$845 million on petroleum projects and US$1,869 million on minerals projects. Sustaining and maintenance capital expenditure was US$1,159 million.  Total expenditure on exploration was US$533 million, including US$380 million on petroleum activities and US$153 million on minerals activities. In addition, the current period includes US$1.78 billion for the repurchase of shares as part of the US$2 billion capital management programme.

A final dividend for the year ended 30 June 2005 of 14.5 US cents per share will be paid to shareholders on Wednesday, 28 September 2005. An interim dividend of 13.5 US cents per share was paid to shareholders on 23 March 2005. That dividend included US$220 million (3.6 US cents per share) to complete the US$2 billion capital management programme announced in August 2004. BHP Billiton intends to continue with its progressive dividend policy.

The dividend paid by BHP Billiton Limited will be fully franked for Australian taxation purposes. Dividends for the BHP Billiton Group are determined and declared in US dollars.  However, BHP Billiton Limited dividends are mainly paid in Australian dollars and BHP Billiton Plc dividends are mainly paid in pounds sterling to shareholders on the UK section of the register and rands to shareholders on the South African section of the register.  The foreign currency exchange rates applicable two business days before the declaration of the dividend were used for conversion of currencies. These rates are detailed in the table below.

The timetable in respect of this dividend will be:

Currency conversion - 22 August 2005

Last day to trade Johannesburg Stock Exchange - 2 September 2005

Ex-dividend Australian Stock Exchange - 5 September 2005

Ex-dividend Johannesburg Stock Exchange - 5 September 2005

Ex-dividend London Stock Exchange - 7 September 2005

Record - 9 September 2005

Payment - 28 September 2005

American Depositary Shares (ADSs) each represent two fully paid ordinary shares and receive dividends accordingly.

BHP Billiton Plc shareholders registered on the South African section of the register will not be able to dematerialise or rematerialise their shareholdings, nor will transfers between the UK register and the South African register be permitted, between the dates of 5 September 2005 and 9 September 2005.

The following table details the currency exchange rates applicable for the dividend:

In October 2004, Moody's Investor Services (Moody's) upgraded BHP Billiton's credit rating from A2 to A1, reflecting the Group's strengthened financial risk profile.

In March 2005, following the announcement of the takeover offer for WMC, Standard and Poor's (S&P) and Moody's reviewed the Group's rating, with S&P maintaining the Group's A+ stable rating and Moody's placing the outlook on developing. In June 2005 Moody's restored the Group's outlook to stable stating that the rating affirmation was prompted by the successful acquisition of WMC at the price and on the terms anticipated.

During the year, the Group completed both stages of its US$2 billion capital management programme. Stage one was completed in November 2004 via a US$1.78 billion off-market share buy-back of 180.7 million BHP Billiton Limited shares or 2.9% of the issued capital of the BHP Billiton Group. The shares were purchased at A$12.57 per share, representing a 12% discount to the volume weighted average price of BHP Billiton shares over the five days up to and including the buy-back closing date. The residual US$220 million was used to rebase the interim dividend declared in February 2005.

(1) All references to capital expenditure and capacity are BHP Billiton's share unless noted otherwise.
(2) References to quarters and half years are based on calendar years.

EBIT was US$1,830 million, an increase of US$439 million or 31.6%, compared with the corresponding year. The increase was mainly due to higher average realised prices for all petroleum products compared with the corresponding period, including a higher average realised oil price per barrel of US$47.16 compared to US$32.24, and higher average realised natural gas prices of US$2.98 per thousand standard cubic feet compared with US$2.62 per thousand standard cubic feet. New production from North West Shelf LNG Train 4 (Australia), ROD (Algeria) and Mad Dog (US), the first full year of production from Ohanet (Algeria), and profits from the sale of third party product compared with losses in the corresponding period also had a favourable impact.

These factors were partly offset by the unfavourable effect of higher price-linked costs, lower crude and condensate volumes due to natural field decline at mature assets, higher downtime for maintenance, and disposal of our interests in the Laminaria and Corallina oil fields. The impact of a stronger Australian dollar to US dollar exchange rate on the translation of net monetary liabilities also had an unfavourable impact.

Exploration expenditure charged to profit was US$202 million (2004: US$181 million) reflecting a capitalisation rate of 46.8% (2004: 46.8%). Gross expenditure on exploration of US$380 million was US$40 million higher than the prior period, reflecting increased exploration activity in the Gulf of Mexico and Australia.

EBIT was US$977 million, an increase of US$201 million or 25.9%, compared with the corresponding period.  The increase was mainly attributable to higher realised prices for aluminium and alumina. The average LME aluminium price increased to US$1,804 per tonne, compared with US$1,570 per tonne in the corresponding period. Higher aluminium sales volumes, mainly reflecting the first full year of production from the expansion at Hillside (South Africa) following commissioning in December 2003 and the benefits of various operational excellence projects, also had a favourable impact.

These factors were partially offset by the unfavourable impact on operating costs of a stronger South African rand, Australian dollar and Brazilian real against the US dollar and higher LME price-linked and other production input costs. Increased pot relining activity also had an unfavourable impact. In addition, a one-off charge of US$36 million was recorded for the agreed repurchase of an aluminium supply contract. The benefits of this repurchase will be realised through increased profit over the next ten years.

EBIT was US$2,177 million, an increase of US$1,021 million or 88.3%, compared with the corresponding year. This increase was mainly attributable to higher average LME prices for copper of US$1.43/lb compared to US$1.06/lb in the previous period, higher prices for molybdenum, silver, lead and zinc, and higher copper sales volumes. Record silver and lead production achieved at Cannington (Australia), record copper production at Escondida (Chile), record copper and molybdenum at Antamina and higher production at Tintaya (Peru), together with savings from cost and volume related improvements projects, primarily at Escondida and Antamina, also had a favourable impact. These factors were partially offset by increased input and price-linked costs and the unfavourable impact of the stronger Australian dollar to US dollar exchange rate.

EBIT was US$2,821 million, an increase of US$1,684 million or 148.1%, compared with the corresponding period. This increase was mainly attributable to stronger commodity prices for all products, record sales volumes from Western Australian iron ore, Queensland coal and manganese ore operations, modified supply arrangements with Bluescope Steel Limited and larger volumes of CIF shipments.

This was partially offset by the impact of Boodarie Iron not operating at all during the year, and unit cost performance across all operations being impacted by the stronger Australian dollar and the South African rand relative to the US dollar. Increased price-linked royalty costs and inflationary pressures on Australian and South African operations, compared with the corresponding year, were also unfavourable impacts. In addition, higher labour and contractor costs, increased stripping costs, principally at Queensland Coal operations due to expansion projects, and higher fuel costs for all operations had an unfavourable impact during the year. Depreciation charges also increased at Western Australian iron ore operations in respect of the Area C and Products and Capacity Expansion projects.

EBIT was US$417 million, an increase of US$7 million or 1.7%, compared with the corresponding period.  Higher realised prices for diamonds (up 38% from the corresponding period) and titanium feedstock were offset by lower diamond sales volumes (down 19% from the prior year), higher costs due to the processing of lower grade material and the unfavourable impact of the stronger Canadian dollar to US dollar exchange rate. In addition, the cessation of earnings from Integris Metals (US) following its sale in January 2005 also had an unfavourable impact. The prior period also included profits realised on the sale of a non-core royalty interest (US$37 million), the impact of which was partly offset by the profit realised on the sale of Integris (US$19 million) during the current period.

EBIT was US$616 million, an increase of US$382 million or 163.2%, compared with the corresponding year. The increase was mainly attributable to higher export prices, resulting from continued strong demand in the Atlantic and Pacific markets, as well as higher earnings from the trading of third party product. In addition, US$37 million was charged to profit in the previous period reflecting previously capitalised exploration expenditure being written off as impaired. These factors were partially offset by higher unit costs at Ingwe reflecting the timing of major overhauls, increased consumable usage and cost as well as increased utilisation of contractors. The strengthening of the rand, Australian dollar and Colombian peso against the US dollar as well as South African inflationary pressures also had an unfavourable impact on operating costs.

EBIT was US$758 million, an increase of US$187 million or 32.7%, compared with the corresponding period. The increase was mainly due to higher realised prices for all products with the average realised nickel price increasing 23.0% from US$5.49/lb to US$6.75/lb. The average realised price for ferrochrome also increased over the corresponding period. The EBIT result includes earnings from the ferrochrome operations for the 11 months to 1 June 2005 during which they were owned by BHP Billiton. These operations were sold effective 1 June 2005.

This was partially offset by higher price-linked ore supply costs to the QNI Yabulu refinery and higher royalties at Cerro Matoso. In addition, the strengthening of the Colombian peso and Australian dollar against the US dollar, and higher fuel costs, had an unfavourable impact on operating costs.

The current period benefited from the profit on sale of the Acerinox share investment (US$22 million) whilst the prior period result included the profit from the sale of mineral rights in South Africa (US$30 million).

Net corporate operating costs, excluding gains and losses from legacy Australian dollar to US dollar currency hedging and other exchange impacts, were US$292 million, an increase of US$34 million compared to US$258 million in the corresponding period. This was primarily due to employee share award costs which increased US$26 million over the corresponding period, higher corporate project and regulatory compliance costs offset by the profit on the close out of cash settled derivative contracts for WMC shares.

The prior period included gains on legacy Australian dollar to US dollar currency hedging of US$39 million which expired during that year.

Financial Information BHP Billiton Plc

CONSOLIDATED PROFIT AND LOSS ACCOUNT - 17

CONSOLIDATED STATEMENT OF TOTAL

RECOGNISED GAINS AND LOSSES - 18

CONSOLIDATED BALANCE SHEET - 19

CONSOLIDATED STATEMENT OF CASH FLOWS - 20

NOTES TO THE FINANCIAL INFORMATION - 22

The financial information in this document for the year ended 30 June 2005 is unaudited, has been derived from the draft financial statements of BHP Billiton Plc and does not constitute the statutory accounts of BHP Billiton Plc for that year.

The financial information set out on pages 17 to 31 has been prepared on the same basis and using the same accounting policies as were applied in drawing up the financial information contained in the accounts of BHP Billiton Plc for the year ended 30 June 2004. Where applicable, comparatives have been adjusted to disclose them on the same basis as current period figures.

In the opinion of the Directors, the financial information for the year ended 30 June 2005 presents fairly the financial position, results of operations and cash flows for the year in conformity with UK generally accepted accounting principles (GAAP). The financial information for the year ended 30 June 2004 has been derived from the audited financial statements of BHP Billiton Plc for that period as filed with the UK Registrar of Companies and does not constitute the statutory accounts of BHP Billiton Plc for that period. The auditors' report on the statutory accounts for the year ended 30 June 2004 was unqualified and did not contain statements under Section 237 (2) (regarding adequacy of accounting records and returns) or under Section 237 (3) (provision of necessary information and explanations) of the United Kingdom Companies Act 1985. The statutory accounts for the year ended 30 June 2005 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the UK Registrar of Companies following the Annual General Meeting.

For reporting periods beginning on or after 1 January 2005, the Group must comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Group's DLC structure results in two parent entities with their own statutory reporting obligations, one in Australia and the other in the UK. This financial information has been prepared in accordance with UK accounting standards and other UK financial reporting requirements (UK GAAP). There are a number of differences between UK GAAP and IFRS identified to date as potentially having a significant effect on the Group's financial performance or financial position. The Group expects to detail and quantify the impacts of these adjustments in its Annual Report which will be approved by the Board on 8 September 2005.

for the year ended 30 June 2005

Financial Information BHP Billiton Plc

for the year ended 30 June 2005

Financial Information BHP Billiton Plc

as at 30 June 2005

Financial Information BHP Billiton Plc

for the year ended 30 June 2005

Financial Information BHP Billiton Plc

for the year ended 30 June 2005

(a) During the year ended 30 June 2004, BHP Billiton elected to consolidate its Australian subsidiaries under the Australian tax consolidation regime, as introduced by the Australian Federal Government. Under the transitional rules, the Group has chosen to reset the tax cost base of certain depreciable assets which will result in additional tax depreciation over the lives of these assets. This resulted in the restatement of deferred tax balances and an exceptional tax benefit of US$95 million being recorded in accordance with UK GAAP.

NOTE 3. ANALYSIS BY BUSINESS SEGMENT (continued)