Final Results

BHP Billiton Limited
07 August 2002


BHP Billiton Limited is issuing this announcement to fulfil disclosure obligations arising from its secondary listing on
                                               the London Stock Exchange.

                   The text of this release is identical to that issued by BHP Billiton Plc earlier.


7 August 2002
Number: 47/02



                             BHP BILLITON FULL YEAR RESULTS FOR THE YEAR ENDED 30 JUNE 2002





Please find attached BHP Billiton's full year results for the year ended 30 June 2002.





Karen Wood

Company Secretary



                                                          ****


Further information can be found on our Internet site: http://www.bhpbilliton.com




Australia                                                    United Kingdom
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Francis McAllister, Investor Relations                       Michael Campbell, Investor & Media Relations
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                                  BHP BILLITON

               FULL YEAR RESULTS FOR THE YEAR ENDED 30 JUNE 2002




  • EBITDA robust at US$4.9 billion despite lower revenues.

  • Operating cash flow (after interest and tax) maintained at US$3.9 billion
    despite difficult conditions.

  • EBIT US$3.2 billion, attributable profit US$1.9 billion, earnings per
    ordinary share 32.1 US cents (all excluding exceptional items).

  • Merger benefits of US$220 million delivered (before one-off costs).

  • Steel demerger completed.

  • Exploration successes for Petroleum.

  • Quality portfolio offers more stable cash flows in uncertain world
    economy.

                                                                       2002                     2001            Change
  Year ended 30 June                                                   US$M                     US$M                 %
  Turnover (1)                                                       17 778                   19 079             -6.8%
  EBITDA (1)(2)(5)                                                    4 915                    5 299             -7.2%
  EBIT (1)(3)(5)                                                      3 188                    3 627            -12.1%
  Attributable profit
        - excluding exceptional items                                 1 934                    2 189            -11.6%
        - including exceptional items                                 1 690                    1 529             10.5%
  Operating cash flow including dividends from joint
  ventures and associates and after net interest and tax              3 918                    3 837              2.1%
  Basic earnings per share (US cents)
        - excluding exceptional items                                  32.1                     36.8            -12.8%
        - including exceptional items                                  28.0                     25.7              8.9%
  EBITDA interest coverage (times) (4)(5)                              11.0                      8.5             29.4%



(1)     Including the Group's share of joint ventures and associates.

 2. EBITDA is profit before net interest, taxation, and depreciation and
    amortisation (excluding impairments).

(3)     EBIT is profit before net interest and taxation.

(4)     For this purpose, net interest includes capitalised interest and
excludes the effect of discounting on
     provisions and exchange differences arising from net debt.

(5)     Excluding exceptional items.




        The above financial results are prepared in accordance with UK generally
        accepted accounting principles (GAAP). Financial results prepared under
        Australian GAAP are provided on page 26.

        All references to the corresponding period are to the year ended 30 June
        2001.


                      PRELIMINARY ANNOUNCEMENT OF RESULTS
                        FOR THE YEAR ENDED 30 JUNE 2002

                            CHIEF EXECUTIVE'S REVIEW

The Merger

The merger of BHP Limited and Billiton Plc on 29th June 2001 established a new
leader in the global resources sector, one seeking superior shareholder returns
as the world's premier supplier of natural resources and related products and
services. Merger integration via the 'Dual Listed Companies' structure was
swift, with the key business units being organised immediately into 6 Customer
Sector Groups, supported by 2 marketing hubs - one in The Hague, and one in
Singapore. Virtually from the outset, the executive group functioned as a
unified team, and performed effectively in the challenging market conditions of
the past year.

Along with the smooth integration, five highlights stand out:


  • the successful demerger of BHP Steel;

  • the approval of 12 new projects involving aggregated capital investments
    of US$2.9 billion;

  • a string of remarkable successes by our Petroleum exploration teams;

  • the delivery of merger benefits of $220 million (before one-off costs);
    and

  • the publication of our Strategic Framework in April this year, which
    detailed the key value drivers which distinguish us from our competitors,
    the strategic imperatives which will realise our full potential, and 8
    performance measures against which we have invited the market to judge us.

The financial results achieved by the management team during the 2002 financial
year, BHP Billiton's first as a combined group, are set out below.

Stability and Growth

The central tenet of the BHP Billiton business model is that its diversified
portfolio of high quality assets provides more stable cash flows and greater
capacity to drive growth than the traditional resource cyclicals. The results of
the past year provide striking support for that thesis. Despite price weakness
in many of our products, despite currency fluctuations, and canny cut-backs at
some of our major operations, our Earnings before Interest, Tax, Depreciation
and Amortisation (EBITDA) held steady at around US$1.2 billion in every quarter.
Aggregated over the year, EBITDA was US$4,915 million, down only 7.2% on last
year's record level notwithstanding much weaker commodity markets.

Even more dramatic was the underlying stability of our operating cash flows
(after interest and tax) which held steady at US$3,918 million, despite the
generally lower prices.

These strong financials were reflected in other measures: EBITDA interest cover
rose from 8.5 times in 2001 to 11.0 times in the reporting year; gearing (net
debt to net debt plus equity) declined from 38.4% to 35.0%; and net debt at 30
June 2002 was US$6,822 million, a reduction of US$499 million over the year.

Our robust cash flows left us well placed to proceed methodically with the new
growth projects that we flagged to shareholders at the time of the merger. A
full list of projects approved this year, totalling US$2.9 billion, is attached.

The Income Statement

The difficult market conditions that prevailed throughout the year were
reflected in Group turnover, which fell by 6.8% to US$17,778 million, due to
lower commodity prices (for crude oil, aluminium, copper, nickel, chrome,
alumina, silver and zinc), lower sales volumes (from Escondida (Chile), Tintaya
(Peru), energy coal, crude oil at Bass Strait (Australia), Laminaria
(Australia), Griffin (Australia), Samarco (Brazil), manganese and titanium
minerals) and lower contributions from ceased and sold operations. These factors
were partly offset by contributions from new and acquired operations (including
the first full year's results from the various Rio Algom businesses, the energy
coal operations in Colombia, the additional 29% interest in EkatiTM diamond
mine (Canada) and the additional 56% interest in Worsley alumina refinery
(Australia)).

Earnings before interest and tax (EBIT), excluding exceptional items, was
US$3,188 million compared with US$3,627 million last year, a reduction of 12.1%.
This decline was caused by the lower commodity prices, lower profits from
ceased, sold and discontinuing operations, increased exploration expenditure,
and the impact of inflation on operating costs. Offsetting factors were profits
from new and acquired operations, the favourable effect of exchange rate
movements, lower price-linked costs, and increased profits from asset sales.

Net interest expense (before exchange gains on net debt) fell to US$429 million
from US$625 million in the corresponding period. In fact, net interest including
capitalised interest and excluding discounting on provisions, fell from US$625
million to US$445 million. That reduction of US$180 million (28.8%) was
principally driven by an improved credit rating, lower average debt levels and
lower market interest rates.

Exchange gains on net debt were US$180 million compared with US$149 million in
the corresponding period, arising primarily on the year end translation of Rand
denominated debt of companies which account in US dollars as their functional
currency. The Rand depreciated by 21% during the current period compared with
the 16% depreciation in the corresponding period. Approximately Rand 2.9 billion
of debt was repaid during the year.

The tax charge for the year (excluding exceptional items) was US$958 million,
representing an effective rate of 32.6%. Excluding the impact on tax of non
tax-effected foreign currency gains and other functional currency translation
adjustments, the effective rate was 32.7%. This rate is above the nominal rate
of 30% mainly due to non tax-effected losses in the current year, non-deductible
accounting depreciation and amortisation, and secondary taxes on dividends paid
and payable by South African entities, partly offset by the recognition of prior
year tax losses.

Attributable profit (excluding exceptional items) was US$1,934 million, down
11.6% from the US$2,189 million of last year. Basic earnings per share was 12.8%
lower at 32.1 US cents.

Exceptional Items

Exceptional items totalling US$212 million (before tax) were expensed at year
end. These included one-off costs of US$80 million relating to the merger and
restructuring of the Group during the year.

Following a reassessment of the Group's asset disposal and closure plans
relating to its South West Copper business in the US (where the Group ceased
operations in 1999), impairment provisions, principally related to the San
Manuel smelter, were increased by US$171 million. This was offset by a reduction
of US$70 million in provisions relating to the expected timing of site
restoration expenditure.

Sulphide operations at Tintaya (Peru) have been suspended until at least January
2003. An exceptional charge of US$31 million recognised the costs of the
suspension and a write-down of obsolete equipment.

In June 2002 a change in legislation increased the corporation taxation rate for
oil and gas companies in the United Kingdom from 30% to 40%, resulting in
deferred taxation balances being restated, with an adverse impact of US$56
million on the full year's results. The tax effects of other exceptional items
were a benefit of US$24 million.

After accounting for these exceptional items, the remaining attributable profit
was US$1,690 million, 10.5% higher than the US$1,529 million of last year. Basic
earnings per share, including exceptional items, was 28.0 US cents, 8.9% higher
than the 25.7 US cents of the corresponding period.

Cash Flows

Capital expenditures and financial investment totalled US$2,621 million for the
year. Expenditure on growth projects amounted to US$1,622 million, including
Escondida Phase IV, the ROD oil and Ohanet wet gas projects in Algeria, Mozal II
and Petroleum projects in the Gulf of Mexico. Maintenance capital expenditure of
US$859 million was US$31 million lower than in the previous year. Exploration
expenditure was US$390 million, an increase of US$49 million.

Net cash outflow from acquisitions and disposals was US$38 million, including
additional investments in Colombian coal assets and EkatiTM, less the proceeds
from the sale of PT Arutmin (Indonesia).

After dividend payments of US$811 million (up from US$751 million in the prior
year) net cash flow (before management of liquid resources and financing)
amounted to US$448 million. This inflow compares to an outflow of US$1,977
million in the corresponding period, which included the acquisitions of Rio
Algom and the additional 56% interest in the Worsley alumina refinery.

Dividends

An interim dividend of 6.5 US cents per fully paid ordinary share was paid in
December 2001 and a final dividend of 6.5 US cents per fully paid ordinary share
was paid in July 2002, bringing the total for the year to 13.0 US cents. The BHP
Billiton Limited dividends were fully franked for Australian taxation purposes.

The corresponding period for BHP Billiton Limited shareholders included an
unfranked interim dividend of 12.1 Australian cents per fully paid share
(adjusted for merger bonus issue) and a fully franked final dividend of 12.6
Australian cents per fully paid share (adjusted for merger bonus issue).

The corresponding period for BHP Billiton Plc shareholders included an interim
dividend of 4.0 US cents per share and a final dividend of 8.0 US cents per
share.

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 South African Rand to
shareholders on the South African section of the register. The rates of exchange
applicable two business days before the declaration date were used for
conversion.

Portfolio Management

The demerger of BHP Steel in July 2002 was a landmark event, severing a link of
many decades. The outcome was embraced by both organisations, launching BHP
Steel as an independent, world class steel business and releasing BHP Billiton
to focus on its upstream interests. Strong demand for the BHP Steel shares;
which were sold through the Sale Facility to participants under the Retail and
Institutional offers, took the final price to A$2.80 per BHP Steel share. The 6%
retained by BHP Billiton and sold through the Sale Facility brought a cash
benefit of US$75 million in July 2002. Accounting rules will see the difference
between this selling price and the book value - some US$19 million - appear as a
loss in the 2003 financial statements. BHP Billiton Plc shareholders received
approximately 149 million bonus shares to match the demerger value distributed
to BHP Billiton Limited shareholders.

During the year, we also finalised our responsible exit from the Ok Tedi copper
mine in Papua New Guinea, in the process establishing a fund to support the
future social and economic development of the people of Papua New Guinea and, in
particular of the Western Province. We also announced the sale of our interest
in the PT Arutmin Indonesia energy coal operations, and the acquisition, in
conjunction with our partners, of the 50% interest in Cerrejon Zona Norte energy
coal mine in Colombia, bringing our interest to 33%.

Capital Management

A US$2.5 billion syndicated multi-currency revolving facility was completed in
September 2001. This facility replaced the US$1.2 billion credit facility of BHP
Billiton Limited and the US$1.5 billion and US$1.25 billion credit facilities of
BHP Billiton Plc. The facility includes a US$1.25 billion 364-day revolving
credit component, and a US$1.25 billion five-year revolving credit component.

In October 2001, BHP Billiton increased its A$ Commercial Paper Program limit
from A$1 billion to A$2 billion. During November 2001, the Group issued A$1
billion in debt securities in two tranches: A$750 million of 7 year, 6.25% notes
maturing August 2008; and A$250 million of 3 year, floating rate notes maturing
November 2004. In addition a US$1.5 billion Euro Medium Term Note (EMTN)
programme was established during June 2002.

In accordance with the announced share buyback program, BHP Billiton Limited
re-purchased 4,134,622 shares during the year at a weighted average price of
A$8.83 per share. The buyback program allows for the purchase of either BHP
Billliton Limited or BHP Billiton PLC shares, up to a limit of 186 million
shares.



Merger Benefits and Further Cost Savings

An important target announced at the time of the merger was the pursuit of
ongoing benefits of US$270 million (before one-off costs) by the end of
financial year 2003. Good progress was made towards this goal, with US$220
million being delivered in the year ended 30 June 2002. These benefits arose in
a number of different areas, including Operating Excellence initiatives,
strategic sourcing, changes to our marketing activities, access to lower cost
finance and widespread operational savings. One-off costs of US$115 million were
incurred to deliver the benefits, of which US$80 million has been expensed as an
exceptional item.

A further target of US$500 million of cost savings and efficiency gains has been
set for the next three years. A major part of this is expected to be delivered
through the continuance of our Operating Excellence initiatives, together with
savings from simplified structure and processes, economies of scale from
centrally-focused marketing activities, and from productivity improvements from
ongoing operations.

Exploration Progress for Petroleum

Our Petroleum exploration shows particular promise. We invested US$287 million
in exploration and appraisal activities during the year, and were rewarded with
a finding cost of US$1.59 per barrel of oil equivalent and a capitalisation rate
of 47.4%. Both represent top tier performance.

In the Gulf of Mexico, appraisal wells at Mad Dog and Atlantis were successfully
completed, leading to sanction of both projects. The near field discovery at
Boris will be tied back to the Typhoon facility. Encouraging discoveries were
made at Cascade and Neptune, and will now be further appraised.

In Trinidad, the Kairi and Canteen wells built on our original exploration
success in the Angostura field and development work is well advanced to sanction
this project during the coming year.

Further leases were acquired in both the Gulf of Mexico and Trinidad whilst new
leases were obtained offshore Brunei, South Africa and Brazil.

Corporate Governance

From 1 July 2002, I assumed the role of CEO and Managing Director, replacing
Paul Anderson who retired from his executive role on the same date but remains
on the Board until completion of the Annual General Meeting in November 2002.
The Board will pay him tribute at an appropriate function for his outstanding
service to this Group.

Messrs. Ben Alberts, John Conde, Derek Keys and Barry Romeril retired from the
Board at the end of June 2002. All four contributed much to the decisions of the
Group, and particularly to those related to the merger.

The Annual General Meetings of BHP Billiton Limited and BHP Billiton Plc will
both be held on Monday 4 November 2002. The meetings will be held in Melbourne
and in London simultaneously and will be linked by video.

Outlook

There is cause for concern about the global economy. Although OECD industrial
production continues to post small monthly rises, it remains below the levels of
a year ago. After some early gains, the US economy is struggling to maintain
momentum; growth prospects across Europe remain subdued; and a rising Yen
threatens to derail Japan's export led recovery. Business investment and
non-residential construction remain weak in the developed economies. Only across
Asia does production continue to improve, particularly in South Korea and China
where annual growth is approaching eight percent.

In recent weeks extreme volatility in equity markets, falling business and
consumer confidence, and heightened risk aversion have cast a pall over the
global economic outlook. In reaction, the prices of many traded commodities have
fallen to or near multi-month lows. In these circumstances, the executive team
will concentrate on the sound management of our businesses, while remaining
alert for opportunities that might arise from the turmoil.

Whilst our short-run profits may show volatility due to movements in foreign
exchange rates, our accounting practices provide balance sheet stability and
proper management of our costs over the long-run. Additionally our diversified
portfolio of high quality assets provides more stable cash flows, leaving us
well placed to prosper where others might not.

TRADING REVIEW

EBIT

The following table details the approximate impact of major factors affecting
EBIT for the year ended 30 June 2002 compared with the corresponding period.
                                                                                        Merger benefits
                                                                   Total                included
                                                                    US$M                    US$M

  EBIT for the year ended 30 June 2001                             3,627
  Change in sales prices                                           (665)                      20
  Change in volumes                                                (165)                       5
  Price linked costs                                                 270
  Inflation on costs                                               (210)
  Costs                                                               80                     110 (a)
  New and acquired operations                                        185                      15
  Ceased, sold and discontinued operations                         (255)
  Exchange rates                                                     375
  Asset sales                                                         45
  Exploration                                                       (45)
  Other items                                                       (54)

  EBIT for the year ended 30 June 2002                             3,188                     150 (b)

  ( a ) Gross savings of US$145 million, net of one-off costs of US$35 million
  ( b ) Other non-EBIT merger benefits totaling US$35 million were achieved during the year.



Prices

Lower prices for crude oil, aluminium, copper, nickel, chrome, alumina,
diamonds, silver and zinc decreased turnover by approximately US$1,035 million.
This decrease was partly offset by higher prices for metallurgical coal, energy
coal, and gas prices which increased turnover by approximately US$370 million.

Volumes

Lower sales volumes from Base Metals, Carbon Steel Materials, petroleum
products, Energy Coal and Titanium Minerals businesses were partly offset by
higher sales volumes from the Stainless Steel Materials businesses, resulting in
a net volume impact on EBIT of a loss of approximately US$165 million.

Costs

Cost reductions increased EBIT by approximately US$350 million compared with the
corresponding period. Lower price linked costs of approximately US$270 million
were mainly due to lower royalties and taxes for petroleum products together
with lower costs for London Metals Exchange (LME) listed commodities partially
offset by increased royalty costs at metallurgical coal operations mainly
reflecting higher metallurgical coal prices.

Merger benefit initiatives generated net cost savings of approximately US$110
million during the year.

Costs increased at Escondida (Chile) mainly reflecting the decision to reduce
production in response to weaker base metals markets and increased costs at
metallurgical coal operations (Australia) and energy coal operations (New
Mexico) were due to operational issues. These factors were partly offset by
lower operating costs at Liverpool Bay (UK) and Hillside (South Africa),
primarily reflecting higher maintenance activities in the corresponding period,
cost reductions at the Gulf of Mexico (US) petroleum operations mainly due to
increased productivity, and savings at WA Iron Ore operations (Australia) due to
lower port and rail costs.

Inflation increased costs by approximately US$210 million.

New and acquired operations

New and acquired operations increased EBIT by approximately US$185 million
compared with the corresponding period mainly due to, commencement of production
of petroleum from Typhoon (America), Zamzama (Pakistan) and Keith (North Sea),
increased ownership interests in the Worsley alumina refinery (Australia)
together with the fully commissioned Mozal aluminium smelter (Mozambique), the
acquisition of an additional 29% interest in the EkatiTM diamond business, a
full years contribution from Rio Algom base metals businesses and the first full
year contribution from Carbones del Cerrejon and Cerrejon Zona Norte Coal
(Colombia). These factors were partially offset by a downturn in the Integris
(formerly Metals Distribution) (US) business compared with the corresponding
period.

Ceased, sold and discontinued operations

Steel profits (excluding OneSteel Limited) reduced by approximately US$130
million. The corresponding period included contribution to EBIT of approximately
US$125 million from a higher ownership interest in metallurgical coal
(Queensland), the sale of Buffalo oilfield (Australia), spun-out steel
operations (OneSteel Limited), and the Ok Tedi copper mine (PNG), partly offset
by losses from HBI Venezuela. The current period included a lower contribution
from PT Arutmin Indonesian energy coal operations due to sale of the business in
November 2001.

Foreign exchange

Foreign currency fluctuations had a favourable effect of approximately US$375
million mainly due to the impact of lower Rand/US$ (US$265 million) and A$/US$
(US$85 million) exchange rates on related operating costs and the conversion of
monetary assets and liabilities, including provision balances, and reduced
losses on legacy A$/US$ currency hedging.

Asset sales

Profits from asset sales were approximately US$45 million higher than the
corresponding period mainly due to the profit on sale of PT Arutmin Energy Coal
operations in Indonesia.

Exploration

Exploration charged to profit was approximately US$45 million higher than the
corresponding period mainly due to the write-off of La Granja copper exploration
activities (Peru), together with increased petroleum activity in the Gulf of
Mexico.


CUSTOMER SECTOR GROUP SUMMARY

A detailed explanation of the factors influencing EBIT, including joint ventures
and associates (excluding exceptional items) by Customer Sector Group, is as
follows:

Aluminium

Aluminium contributed EBIT of US$492 million, down from US$523 million, a
decrease of 5.9% compared with the corresponding period.

The EBIT reduction was mainly attributable to the lower average LME price for
aluminium, down US$180 per tonne or 11.7%, and the decline in production from
Alumar and Valesul (Brazil) due to power curtailments.

These factors were partially offset by higher alumina production from Worsley
(Australia) following the acquisition of an additional 56% interest in January
2001 together with increased production and profits from the fully commissioned
Mozal (Mozambique) aluminium smelter. Lower operating costs were mainly due to
the decrease in LME linked production costs together with the favourable effect
on related operating costs due to US dollar exchange rate movements against the
South African Rand and Brazilian Real.

Base Metals

Base Metals contributed EBIT of US$200 million, down from US$462 million, a
decrease of 56.7% compared with the corresponding period.

The EBIT reduction was mainly due to a significant decline in the average
realised copper price to US$0.69/lb compared to US$0.78/lb in the corresponding
period together with lower volumes at Escondida and Tintaya, reflecting the
decision to temporarily reduce production in reaction to the global
deterioration of base metals markets. In addition, the current period was
adversely impacted by the write-off of the La Granja (Peru) exploration
activities.

These factors were partly offset by a full year's contribution from the various
Rio Algom operations (Cerro Colorado, Antamina and Highland Valley Copper) which
were acquired in October 2000, as well as higher silver and lead volumes at the
Cannington (Australia) silver mine resulting from a revision of the mine's
production strategy.

Carbon Steel Materials

Carbon Steel Materials contributed EBIT of US$1,084 million, up from US$918
million, an increase of 18.1% compared with the corresponding period.

The increase in EBIT was attributable to increased volumes and higher prices for
metallurgical coal, lower operating costs at Mt Whaleback (Australia) iron ore
operations due to improved waste ore ratios, and improved operating performance
over the year and lower capital expenditure (which is charged to profit) at
BoodarieTM Iron (Australia). Operating costs across West Australian iron ore
operations were further reduced by improved ship loading rates at Port Hedland
(Australia), reflecting the successful application of the Operating Excellence
methodology. The favourable effect of the lower A$/US$ and Rand/US$ exchange
rates reduced related operating costs.

These factors were partially offset by higher costs at metallurgical coal
operations in Queensland due to increased stripping costs at Goonyella,
Blackwater, Saraji and Peak Downs, adverse roof conditions at Crinum between
August 2001 and December 2001, together with higher royalty costs and higher
demurrage costs. Reduced market demand for manganese ore and alloy products, as
well as Samarco pellets, resulted in lower sales and prices for these
commodities compared with the corresponding period.

On 26 March BHP Billiton declared 'force majeure' on sales contracts and some
supply contracts at the BoodarieTM Iron Plant. The declaration followed the
temporary suspension of work at the plant following a tube failure in a gas
re-heating furnace. Production re-commenced in one train on 18 July 2002, with
the remaining three trains planned being progressively back on line during the
September 2002 quarter.

Agreement was reached in May 2002 with Nippon Steel Corporation (Japan) and
Kawasaki Steel Corporation (Japan) for the prices of Mt Newman (West Australia)
Iron Ore from the period commencing 1 April 2002. The agreed prices are :-


  • Mt Newman Fines - 28.28 US cents per dry long ton unit - a decrease of
    2.4%.

  • Mt Newman Lump - 36.13 US cents per dry long ton unit - a decrease of
    5.0%.

Commercial terms have been settled for the majority of annually priced coking
coal contracts relating to the BHP Billiton Mitsubishi Alliance (BMA) and BHP
Billiton Mitsui coal operations in Queensland (Australia) and the BHP Billiton
Illawarra coal operations (Australia):


  • FOB prices for premium hard coking coals have increased to a range of
    US$48.00 - US$50.00/t across all markets, reflecting strong supply/demand
    fundamentals following the reduction in export volumes from a number of US
    operations in 2001/02.

  • FOB prices for semi-soft and PCI coals have decreased to a range of
    US$32.00 - US$33.00/t across all markets. The lower prices largely reflect
    pressure from Chinese supply and a weaker thermal coal market.

  • Volumes are expected to remain steady.

The majority of prices settled with customers are retrospective to 1 April 2002.

Stainless Steel Materials

Stainless Steel Materials contributed EBIT of US$3 million, down from US$72
million, compared with the corresponding period.

The EBIT reduction was driven by lower realised prices for nickel and cobalt
by-product, down 17% and 33% respectively, together with lower prices for
ferrochrome products due to producers liquidating stock holdings to reduce
inventory levels. Ferrochrome prices were also adversely impacted by the
devaluation of the South African Rand against the US dollar.

These factors were partly offset by the favourable effect of the lower Rand/US$
exchange rate on related operating costs and the favourable impact from nickel
due to increases in production, mainly from the continued ramp-up of Cerro
Matoso Line 2, which commenced production on 1 January 2001.

Energy Coal

Energy Coal contributed EBIT of US$536 million, up from US$382 million, an
increase of 40.3% compared with the corresponding period.

The increase in EBIT was attributable to a significant increase in export market
prices during the first six months of the year, with annual average prices well
above prior periods despite a downturn in market conditions in the second half
of the year. The benefit of higher priced longer term contracts offset the
weakness in spot prices. The current period included the profit on disposal of
PT Arutmin (Indonesia) effective 30 November 2001 together with the inclusion of
profits from Cerrejon operations (Colombia). An overall reduction in unit cash
costs were achieved through cost improvement initiatives despite inflationary
pressure in South Africa and reduced production volumes predominantly in South
Africa and the United States. In addition, a benefit was derived from the
favourable effect of lower Rand/US$ exchange rates on related operating costs
and net monetary liabilities.

These factors were partially offset by lower export volumes due to the disposal
of PT Arutmin together with weakening of European markets after an unseasonably
warm winter and low natural gas prices.

Diamonds and Specialty Products

Diamonds and Specialty Products contributed EBIT of US$272 million, up from
US$188 million, an increase of 44.7% compared with the corresponding period.

The increase in EBIT was primarily due to increased profits from EkatiTM diamond
mine (Canada) mainly reflecting the acquisition of an additional 29% interest in
June 2001 together with increased production due to higher ore grade and higher
recoveries of lower quality diamonds. The increase in carat production has been
driven by the introduction of the Misery Pipe (higher grade and lower value
stones) and the continued optimisation of the process plant. These factors were
partially offset by lower diamond prices mainly due to a general downturn in the
global economy and lower volumes from the titanium minerals operations primarily
reflecting weaker market conditions in the US and Japan.

Petroleum

Petroleum contributed EBIT of US$1,073 million, down from US$1,407 million a
decrease of 23.7% compared with the corresponding period.

The reduction in EBIT was due to a lower average realised oil price of US$22.58
per barrel compared to US$28.04 per barrel in the corresponding period together
with a lower average realised liquefied petroleum gas (LPG) price US$214.62 per
tonne compared to US$299.18 per tonne in the corresponding period. The current
period was impacted by reduced crude oil volumes primarily due to natural field
decline in the Laminaria, Bass Strait and Griffin oil fields, which were
partially offset by infill programs in Bass Strait and Griffin. The
corresponding period benefited from a gain on the sale of the Buffalo oil field
in March 2001.

These factors were partly offset by inclusion of profits from the Typhoon (US)
oil field and the Zamzama gas field (Pakistan), which commenced operations in
July 2001 and March 2001 respectively. Natural gas volumes were higher than the
corresponding period due to improved performance at Liverpool Bay (UK) together
with the commencement of Zamzama operations.

During the year, BHP Billiton sanctioned two oil and gas projects in the Gulf of
Mexico (US). The Mad Dog development (BHP Billiton 23.9%) will have a gross
design capacity of 80,000 barrels of oil per day and 40 million standard cubic
feet of gas per day and contains estimated reserves in the range 200 to 450
million barrels of oil equivalent (mmboe) gross. First production is expected by
the end of 2004 calendar year. The Atlantis development (BHP Billiton 44%) has
estimated gross proven and probable reserves of 575mmboe making it the third
largest field in the Gulf of Mexico deepwater. First production is expected by
the end of calendar year 2005.

Steel (Discontinued)

BHP Steel Limited (BHP Steel) legally separated from the BHP Billiton Group on
22 July 2002, having listed on the Australian Stock Exchange on 15 July 2002.

As at 30 June 2002, BHP Steel was a business unit of the BHP Billiton Group and
its 2002 and comparative financial results are reflected in the BHP Billiton
combined group results. However, the Steel Segment reported does not reflect the
demerged BHP Steel results due to the Steel Segment being reported under UK
GAAP, in US dollars.

Steel contributed EBIT of US$101 million, down from US$270 million, a decrease
of 62.6% compared with the corresponding period.

The EBIT reduction was mainly due to lower international prices for steel
products and the exclusion of operating profits from disposed businesses
(primarily OneSteel Limited) which were included in the corresponding period.

These factors were partly offset by stronger Australian domestic demand for
value added coated products and the profit on sale of the Australian and US
strapping businesses.

Group & Unallocated Items

The net costs of Group and Unallocated Items, excluding losses from legacy A$/
US$ currency hedging was, US$242 million compared with US$235 million in the
corresponding period.

Group and Unallocated Items includes losses on legacy A$/US$ currency hedging of
approximately US$331 million compared with losses of US$360 million in the
corresponding period. These losses mainly reflect the lower value of hedge
settlement rates compared with hedge contract rates for currency hedging
contracts settled during the year.


GROWTH PROJECTS

BHP Billiton has committed approximately US$2.9 billion to new growth projects
since the merger was consummated on 29 June 2001.

All references to production volumes and capital expenditure are BHP Billiton's
share, unless otherwise stated.

  Customer Sector Group    Project                  Capital           Production                 Completion
                                                    Expenditure
                                                    US$M
  Aluminium                Mozal 2 expansion               405        120,000 tonnes per annum   Initial production
                           Mozambique                                 of aluminium metal         late 2003
                           BHP Billiton 47.1%

                           Hillside 3 expansion            449        132,000 tonnes per annum   Initial production
                           South Africa                               of aluminium metal         mid 2004
                           BHP Billiton 100%

  Carbon Steel Materials   Mining Area C                   181        15 million tonnes per      Initial production
                           Australia                                  annum of iron ore by       late 2003
                           BHP Billiton 85%                           2011 (100%)

                           Port & capacity                 299        Increase in port capacity  Late 2004
                           expansion
                           Australia                                  to 81 millions of tonnes
                                                                      per
                           BHP Billiton 85%                           annum by 2004 (100%)
                           Dendrobium                      170        5.2 million tonnes per     Initial production
                                                                      annum
                           Australia                                  of raw metallurgical coal  mid 2005
                           BHP Billiton 100%

  Energy Coal              Mt Arthur North                 411        12.1 million tonnes per    Initial production
                           Australia                                  annum of saleable          late 2003
                           BHP Billiton 100%                          energy coal

  Petroleum                Mad Dog oil and gas             335        20,000 boe/day             Initial production
                           field
                                                                                                 late 2004
                           US
                           BHP Billiton 23.9%

                           Atlantis oil and gas            355        66,000 boe/day             Initial production
                           field
                           US                                                                    late 2005
                           BHP Billiton 44%

                           Gulf of Mexico                  100        Pipeline capacities (100%) Commissioning
                           transportation system                      Oil - 450,000 bbls per day late 2004
                           US                                         Gas - 500,000 million
                           BHP Billiton 22-25%                        standard cubic feet per
                                                                      day
                           Minerva gas field               123        150 terrajoules of gas     Initial production
                           Australia                                  per day                    early 2004
                           BHP Billiton 90%

                           Zamzama gas field               40         300 million cubic feet of  Initial production
                           Pakistan                                   gas per day                mid 2003
                           BHP Billiton 47.5%

                           Bream gas pipeline              50         15 million bbls over 10    Initial production
                                                                      years
                           Australia                                                             mid 2003
                           BHP Billiton 50%
                                                          2,918





Financial Information

The financial information in this document for the year ended 30 June 2002 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.

With effect from 1 July 2001, the majority of BHP Billiton Limited's businesses
changed their functional currency to US dollars, the functional currency of the
combined BHP Billiton Group. This is consistent with BHP Billiton Plc's previous
policy and is the basis on which the combined BHP Billiton Group manages its
businesses. Most BHP Billiton commodities are sold in US dollars and are
predominantly destined for export markets. BHP Billiton's reporting currency is
US dollars.

Concurrent with this change, the BHP Billiton Group has changed its policy
regarding the treatment of foreign exchange gains or losses on local currency
site restoration provisions held in the accounts of entities using US dollar
functional currencies. Under the previous policy, the foreign exchange gains and
losses on site restoration provisions were recognised in the profit and loss
account. Under the revised policy, such foreign exchange gains and losses are
treated as part of the revision to the estimated future restoration cost and are
included in the cost of tangible fixed assets. The revised policy has been
adopted as it better matches the ultimate cost of site restoration charged in
the profit and loss account to the profit earned. The impact in the year ended
30 June 2002 has been the capitalisation to tangible fixed assets of foreign
exchange losses of US$40 million. The application of the revised policy to prior
periods does not have a material impact on the comparative profit and loss
account or balance sheet figures and no prior period adjustment has been made.

In the opinion of the Directors, the financial information for the year ended 30
June 2002, presents fairly the financial position, results of operations and
cash flows for the periods in conformity with UK generally accepted accounting
principles. The financial information for the year ended 30 June 2001 has been
derived from the audited financial statements of BHP Billiton Plc for that
period as filed with the 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 2001 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 2002 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Annual General Meeting.

The combined results for the year ended 30 June 2002, prepared in accordance
with UK GAAP, are generally consistent with the combined results under
Australian GAAP as required by the Australian Securities and Investments
Commission in respect of dual listed companies. However, in contrast to UK GAAP,
Australian regulatory requirements do not allow the combination of the results
of BHP Billiton Limited with those of BHP Billiton Plc for periods prior to
consummation of the DLC merger on 29 June 2001. Financial results prepared in
accordance with Australian GAAP are provided on page 26.






Consolidated Profit and Loss Account
for the year ended 30 June 2002
                                                        Year ended 30 June 2002             Year ended 30 June 2001
                                                    Excluding               Including   Excluding              Including
                                                 Exceptional Exceptional Exceptional Exceptional Exceptional Exceptional
                                                       Items       Items       Items       Items       Items       Items

                                          Note          US$M        US$M        US$M        US$M        US$M        US$M
Turnover (including share of joint          3         17 778           -      17 778      19 079           -      19 079
ventures' and associates' turnover)
Less: share of joint ventures' and associates'       (1 872)           -     (1 872)     (1 290)           -     (1 290)
turnover included above
Group turnover                                        15 906           -      15 906      17 789           -      17 789
     - continuing operations                          13 562           -      13 562      14 771           -      14 771
     - discontinued operations                         2 344           -       2 344       3 018           -       3 018
Net operating costs                                 (13 192)       (212)    (13 404)    (14 551)        (60)    (14 611)
Group operating profit                                 2 714       (212)       2 502       3 238        (60)       3 178
     - continuing operations                           2 655       (212)       2 443       3 005        (38)       2 967
     - discontinued operations                            59           -          59         233        (22)         211
Share of operating profit/(loss) of joint                340           -         340         281       (634)       (353)
ventures and associates (a)
Operating profit (including share of profit of         3 054       (212)       2 842       3 519       (694)       2 825
joint ventures and associates)
Income from other fixed asset investments -               37           -          37          28           -          28
continuing operations
Income from other fixed asset investments -                1           -           1           4           -           4
discontinued operations
Profit on sale of fixed assets - continuing               13           -          13          71         128         199
operations
Profit on sale of fixed assets - discontinued             15           -          15           1           -           1
operations
Profit on sale of subsidiaries - continuing               68           -          68           4           -           4
operations
Loss on termination of operations - continuing             -           -           -           -       (430)       (430)
operations (b)
Merger transaction costs - continuing operations           -           -           -           -        (92)        (92)
Net interest and similar items payable      

                          - Group           4         (212)           -       (212)       (407)         (6)       (413)
                          - Joint           4          (37)           -        (37)        (63)           -        (63)
ventures and associates
Profit before taxation                      3          2 939       (212)       2 727       3 157     (1 094)       2 063
Taxation                                    5          (958)        (32)       (990)       (943)         132       (811)
Profit after taxation                                  1 981      ( 244)       1 737       2 214       (962)       1 252
Equity minority interests                               (47)           -        (47)        (25)         302         277
Profit for the financial period (attributable          1 934       (244)       1 690       2 189       (660)       1 529
profit)
Dividends to shareholders                              (784)           -       (784)       (754)           -       (754)
Retained profit for the financial period               1 150       (244)         906       1 435       (660)         775
Earnings per ordinary share (basic) (US cents)          32.1       (4.1)        28.0        36.8      (11.1)        25.7
(c)
Earnings per ordinary share (diluted) (US cents)        32.1       (4.1)        28.0        36.6      (11.0)        25.6
(d)
Dividend per ordinary share
BHP Billiton Plc (US cents)                                                     13.0                                12.0
BHP Billiton Limited (US cents)                                                 13.0
BHP Billiton Limited (Australian cents) (e)                                                                         24.7

(a) In the year ended 30 June 2001, the exceptional share of operating losses of
joint ventures and associates includes the impairment of HBI Venezuela (US$520
million).

(b) In the year ended 30 June 2001, the exceptional loss on termination of
operations relates to the Ok Tedi copper mine.

(c) The calculation of basic earnings per ordinary share is based on earnings
after tax and minority interests of US$1,690 million (30 June 2001: $1,529
million) and the weighted average number of ordinary shares outstanding of 6,029
million (30 June 2001: 5,944 million).

(d) The weighted average number of shares used for the calculation of diluted
earnings per share has been adjusted for the effect of Restricted Share Scheme
awards, Co-Investment Plan awards, Employee Share Plan options and Executive
Share Scheme partly paid shares, to the extent they were dilutive at balance
date. Performance based rights and options are excluded, except where an issue
of shares is expected to occur.

(e) The BHP Billiton Limited dividend for the year ended 30 June 2001 was
declared in Australian cents. The amounts shown above are adjusted for the BHP
Billiton Limited bonus issue effective 29 June 2001.




     Consolidated Statement of Total Recognised Gains and Losses
     for the year ended 30 June 2002
                                                                                       Year ended             Year ended
                                                                                     30 June 2002           30 June 2001
                                                                                             US$M                   US$M
     Attributable profit for the financial period                                           1 690                  1 529
     Exchange gains and losses on foreign currency net investments                             25                  (763)
     Total recognised gains for the period                                                  1 715                    766





   Consolidated Balance Sheet
   as at 30 June 2002
                                                                          As at 30 June 2002          As at 30 June 2001
                                                                  Note                  US$M                        US$M
   Fixed assets
   Intangible assets  - goodwill                                                          42                          95
                      - negative goodwill                                               (33)                        (36)
                                                                                           9                          59
   Tangible assets                                                                    20 179                      19 231
   Investments        - joint ventures                                                 1 468                       1 011
                      - share of gross assets                                          2 902                       2 816
                      - share of gross liabilities                                   (1 434)                     (1 805)
                      - associates                                                        85                          58
                      - loans to joint ventures and associates
                      and
                      other investments                                                  987                         911
                                                                                      22 728                      21 270
   Current assets
   Stocks                                                                              1 457                       1 675
   Debtors                                                                             3 751                       3 583
   - amounts due within one year                                                       2 554                       2 547
   - amounts due after one year                                                        1 197                       1 036
   Investments                                                                           117                         215
   Cash including money market deposits                             7                  1 499                       1 285
                                                                                       6 824                       6 758
   Creditors: amounts falling due within one year                                    (6 229)                     (5 235)
   Net current assets                                                                    595                       1 523
   Total assets less current liabilities                                              23 323                      22 793
   Creditors: amounts falling due after more than one year                           (5 987)                     (7 054)
   Provisions for liabilities and charges                                            (4 654)                     (4 019)
   Net assets                                                                         12 682                      11 720
   Equity minority interests                                                           (326)                       (380)
   Attributable net assets                                                            12 356                      11 340
   Capital and reserves
   Called up share capital
   Called up share capital - BHP Billiton Plc                                          1 160                       1 160
   Share premium account
   Share premium account - BHP Billiton Plc                                              592                         592
   Contributed equity
   Contributed equity - BHP Billiton Limited                                           3 143                       3 039
   Profit and loss account                                                             7 461                       6 549
   Equity shareholders' funds                                       6                 12 356                      11 340





Consolidated Statement of Cash Flows
for the year ended 30 June 2002                                                        Year ended             Year ended
                                                                                     30 June 2002           30 June 2001
                                                                                             US$M                   US$M
Net cash inflow from Group operating activities (a)                                         4 641                  4 805
Dividends received from joint ventures and associates                                         149                    154
Interest paid                                                                               (496)                  (587)
Dividends paid on redeemable preference shares                                               (35)                   (69)
Interest received                                                                             156                    132
Other dividends received                                                                       38                     39
Dividends paid to minorities                                                                 (20)                   (50)
Net cash outflow from returns on investments and servicing of finance                       (357)                  (535)
Taxes paid                                                                                  (606)                  (587)
Refund of taxes paid                                                                           91                      -
Taxation                                                                                    (515)                  (587)
Available cash flow                                                                         3 918                  3 837
Purchases of tangible fixed assets                                                        (2 481)                (3 038)
Exploration expenditure                                                                     (390)                  (341)
Disposals of tangible fixed assets                                                            200                    339
Purchase of investments and funding of joint ventures                                       (182)                  (677)
Sale of investments and repayments by joint ventures                                          232                     82
Capital expenditure and financial investment                                              (2 621)                (3 635)
Investment in subsidiaries                                                                   (45)                (1 567)
Sale of subsidiaries                                                                          190                    372
Net cash acquired with subsidiary                                                               -                    117
Cash transferred on disposal                                                                 (45)                   (61)
Investment in joint ventures                                                                (208)                  (482)
Disposal of joint venture                                                                      70                    193
Acquisitions and disposals                                                                   (38)                (1 428)
Equity dividends paid                                                                       (811)                  (751)
Net cash flow before management of liquid resources and financing                             448                (1 977)
Management of liquid resources                                                                157                    242
Debt due within one year - repayment of loans                                             (1 344)                  (668)
Debt due within one year - drawdowns                                                        1 657                    849
Debt due after one year - repayment of loans                                              (2 722)                  (998)
Debt due after one year - drawdowns                                                         2 318                  2 072
Finance lease obligations                                                                    (28)                    (4)
Redeemable preference shares                                                                (423)                  (425)
Net cash (outflow)/inflow from debt and lease financing                                     (542)                    826
Share buyback scheme - BHP Billiton Plc                                                         -                    194
Share repurchase scheme - BHP Billiton Limited                                               (19)                      -
Issue of shares                                                                               104                    743
Net cash (outflow)/inflow from financing                                                    (457)                  1 763
Increase in cash in the period                                                                148                     28
Consolidated Statement of Cash Flows (continued)
for the year ended 30 June 2002
                                                                                       Year ended             Year ended
Reconciliation of net cash flow to movement in net debt                              30 June 2002           30 June 2001
                                                                                             US$M                   US$M
Increase in cash in the period                                                                148                     28
Cash flow from debt and lease financing                                                       542                  (826)
Cash flow from management of liquid resources                                               (157)                  (242)
Change in net debt arising from cash flows                                                    533                (1 040)
Money market deposits and loans acquired with subsidiaries                                      -                  (665)
Exchange adjustments                                                                         (34)                    476
Movement in net debt                                                                          499                (1 229)
Net debt at start of period                                                               (7 321)                (6 092)
Net debt at end of period                                                                 (6 822)                (7 321)

(a) Net cash inflow from Group operating activities



Operating profit                                                                                  2 502            3 178
Merger transaction costs                                                                              -             (92)
Depreciation and amortisation                                                                     1 727            1 672
Impairment of assets                                                                                272               34
Employee share awards                                                                                28               46
Net exploration charge (excluding impairment of assets)                                             243              250
Loss on sale of fixed assets                                                                          -               21
Payments relating to HBI Venezuela guarantee                                                          -            (310)
Decrease in stocks                                                                                    7               41
Increase in debtors                                                                               (346)            (141)
Increase in creditors                                                                               292              115
(Decrease)/increase in provisions                                                                 (119)               28
Other movements                                                                                      35             (37)
Net cash inflow from Group operating activities                                                   4 641            4 805








1. Exceptional items
Year ended 30 June 2002
                                                                                        Gross         Tax            Net
                                                                                         US$M        US$M           US$M
Base Metals:
Impairment of South West Copper assets                                                  (171)           -          (171)
Reassessment of South West Copper closure provisions                                       70           -             70
Charges associated with suspension of Tintaya sulphide operations                        (31)           9           (22)
Change in UK tax rate on petroleum operations                                               -        (56)           (56)
Merger restructuring costs and provisions                                                (80)          15           (65)
Total by category                                                                       (212)        (32)          (244)
Exceptional items by segment
Aluminium                                                                                 (4)           -            (4)
Base metals                                                                             (145)          10          (135)
Carbon steel materials                                                                    (6)           1            (5)
Stainless steel materials                                                                 (3)           -            (3)
Energy coal                                                                               (5)           1            (4)
Diamonds and specialty products                                                           (6)           2            (4)
Petroleum                                                                                 (4)           1            (3)
Group and unallocated items                                                              (39)           9           (30)
Taxation                                                                                    -        (56)           (56)
Total by customer sector group                                                          (212)        (32)          (244)
Year ended 30 June 2001
                                                                                        Gross         Tax            Net
                                                                                         US$M        US$M           US$M
Profit on sale of fixed assets (equalisation of Queensland Coal interests)                128           -            128
Termination of operations (Ok Tedi copper mine)                                         (430)          14          (416)
Merger transaction costs                                                                 (92)           -           (92)
Taxation (income tax audit)                                                                 -        (33)           (33)
Sale of Mozal II expansion rights (a)                                                      61        (21)             40
Merger and other restructuring costs and provisions (a) (b)                              (64)          16           (48)
Employee share awards accelerated by the merger (a)                                      (37)          10           (27)
Write down in carrying value of assets (Lakes Mines) (a)                                 (26)           6           (20)
Write down in carrying value of assets and provisions (HBI Venezuela) (c)               (520)         110          (410)
Write down in carrying value of assets (Columbus JV) (c)                                (114)          30           (84)
Total by category                                                                     (1 094)         132          (962)
Exceptional items by segment
Aluminium                                                                                  53        (19)             34
Base metals                                                                               (8)           2            (6)
Carbon steel materials                                                                    126           2            128
Stainless steel materials                                                               (123)          31           (92)
Energy coal                                                                              (34)           8           (26)
Diamonds and specialty products                                                          (13)           3           (10)
Steel (b)                                                                                (22)           7           (15)
Group and unallocated items(d)                                                        (1 067)          98          (969)
Net interest                                                                              (6)           -            (6)
Total by customer sector group                                                        (1 094)         132          (962)

(a) Included in operating profit with the exception of charges of $6 million (no
tax effect) of merger and other restructuring costs in 2001 which were charged
against net interest and other similar items payable.

(b) Includes amounts attributable to discontinued operations of US$22 million
(US$15 million after tax).

(c) Included in share of operating profit/(loss) of joint ventures and
associates.

(d) Includes exceptional items in relation to HBI Venezuela and Ok Tedi which
were previously reported in Carbon Steel Materials and Base Metals respectively.






2. Discontinued Operations



Due to the demerger of the BHP Steel business in July 2002, BHP Steel's results
have been reported as discontinued operations, together with the results of the
OneSteel business which was demerged from BHP Billiton in October 2000.




The profit and loss impact of these businesses, as included in the BHP Billiton
financial statements is detailed below. As BHP Billiton operate treasury and tax
functions on a Group basis, disclosure of net interest and tax expense
information for the BHP Steel results is not meaningful and has therefore not
been included. These businesses comprise the majority of the Steel segment
(refer Note 3).

   Profit and Loss Account                                                                    2002                  2001

                                                                                              US$M                  US$M
   Turnover (including share of joint ventures and associates)                               2 550                 3 213
   Less: share of joint ventures and associates turnover included above                      (206)                 (195)
   Group turnover                                                                            2 344                 3 018
   Net operating costs *                                                                   (2 285)               (2 807)
   Group operating profit                                                                       59                   211
   Share of operating profit of joint ventures and associates                                   11                     2
   Operating profit (including share of profit of joint ventures and                            70                   213
   associates)
   Income from other fixed asset investments                                                     1                     4
   Profit on sale of fixed assets                                                               15                     1
   Profit before net interest and taxation                                                      86                   218


* Included within operating costs in 2001 is a charge for exceptional items of
US$22 million (before tax) relating to restructuring costs and provisions. There
were no exceptional items in 2002.


The BHP Billiton Group demerged the BHP Steel business in July 2002 as follows:


•     A capital reduction and a transfer to BHP Billiton Limited shareholders of
94% of the

shares in BHP Steel;

•     A bonus issue of BHP Billiton Plc shares to BHP Billiton Plc shareholders
as a Matching

Action to ensure economic benefit equality to shareholders of both BHP Billiton
Limited and

BHP Billiton Plc (the bonus issue was one BHP Billiton Plc share for
approximately each

15.6 BHP Billiton Plc shares held); and


        •     The sale by the BHP Billiton Group of the remaining 6% of BHP
        Steel shares held by the Group.


The impact of these steps (to be recorded in July 2002) is:


•     The BHP Billiton Group's capital was reduced by approximately US$1,501
million, including

approximately US$19 million of costs directly associated with the demerger;


        •     A cash inflow of approximately US$369 million, representing net
        US$294 million from the settlement by BHP Steel of intercompany loans,
        together with US$75 million from the sale of the 6% of BHP Steel; and

        •     A loss of approximately US$19 million (no tax effect) relating to
        the sale of the 6% of BHP Steel.



BHP Steel is the leading steel company in Australia and New Zealand,
specialising in the production of flat steel products, including slab, hot
rolled coil, plate and value-added metallic coated and pre-painted steel
products. The company supplies customers in Australia, New Zealand, Asia, the
US, Europe, the Middle East and the Pacific. Key steel-making assets are the
low-cost global scale Port Kembla Steelworks (Australia), BHP New Zealand Steel
and North Star BHP Steel (USA). A network of metallic coating and coil painting
facilities operates in Australia, New Zealand and South East Asia.




The attributable net assets of BHP Steel as included in the BHP Billiton Group's
30 June 2002 balance sheet is provided below. In addition, the estimated net
assets to be demerged in July 2002 is provided, after allowing for the
settlement of intercompany loans by BHP Steel to the BHP Billiton Group.



   Balance Sheet                                                                                                    2002

                                                                                                                    US$M
   Tangible Assets                                                                                                 1 881
   Investments                                                                                                        91
   Current Assets                                                                                                    759
   Creditors falling due within one year                                                                           (345)
   Creditors falling due after more than one year and provisions                                                   (495)
                                                                                                                   1 891
   Equity minority interests                                                                                        (21)
   Attributable net assets as at 30 June 2002                                                                      1 870
   Net payments to the BHP Billiton Group by BHP Steel to settle intercompany loans (post 30 June                  (294)
   2002)
   Estimated attributable net assets of BHP Steel to be demerged                                                   1 576





3. Segmental analysis by business                                                            Year ended      Year ended
                                                                                           30 June 2002    30 June 2001
Turnover                                                                                           US$M            US$M
Aluminium                                                                                         2 857           2 971
Base metals                                                                                       1 821           1 719
Carbon steel materials                                                                            3 306           3 349
Stainless steel materials                                                                           868             994
Energy coal                                                                                       1 919           1 982
Diamonds and specialty products                                                                   1 480           1 318
Petroleum                                                                                         2 815           3 361
Steel                                                                                             2 785           3 760
Group and unallocated items                                                                         495             209
Intersegment                                                                                      (568)           (584)
                                                                                                 17 778          19 079
Profit before taxation
Aluminium                                                                                           492             523
Base metals                                                                                         200             462
Carbon steel materials                                                                            1 084             918
Stainless steel materials                                                                             3              72
Energy coal                                                                                         536             382
Diamonds and specialty products                                                                     272             188
Petroleum                                                                                         1 073           1 407
Steel                                                                                               101             270
Group and unallocated items                                                                       (573)           (595)
                                                                                                  3 188           3 627
Exceptional items                                                                                 (212)         (1 088)
                                                                                                  2 976           4 715
Net interest                                                                                      (249)           (476)
                                                                                                  2 727           2 063
Net operating assets
Aluminium                                                                                         4 727           4 730
Base metals                                                                                       4 077           3 795
Carbon steel materials                                                                            2 573           2 387
Stainless steel materials                                                                         1 663           1 736
Energy coal                                                                                       2 092           1 986
Diamonds and specialty products                                                                   1 620           1 488
Petroleum                                                                                         2 865           2 504
Steel                                                                                             2 044           2 130
Group and unallocated items                                                                         644             956
                                                                                                 22 305          21 712

Trading activities included above
Turnover
Aluminium                                                                                           881           1 014
Base metals                                                                                          24              13
Carbon steel materials                                                                               22              40
Stainless steel materials                                                                             9               6
Energy coal                                                                                         108             100
Diamonds and specialty products                                                                     823             797
Petroleum                                                                                             -               -
Steel                                                                                                 -               -
Group and unallocated items                                                                           -               -
                                                                                                  1 867           1 970

Profit before taxation
Aluminium                                                                                            13              14
Base metals                                                                                           -               -
Carbon steel materials                                                                                3               1
Stainless steel materials                                                                             1               -
Energy coal                                                                                           4               6
Diamonds and specialty products                                                                       9              23
Petroleum                                                                                             -               -
Steel                                                                                                 -               -
Group and unallocated items                                                                           -               -
                                                                                                     30              44


3. Segmental analysis by business (continued)


A new segment, Diamonds and Specialty Products, has been created encompassing
Diamonds, Titanium Minerals, Integris (metals distribution) and Exploration &
Technology. As a consequence, the former Exploration, Technology and New
Business and Other Activities segments ceased to exist and any remaining
portions have been included in Group and Unallocated Items. In addition, HBI
Venezuela and Ok Tedi, previously reported in Carbon Steel Materials and Base
Metals, respectively, are now included in Group and Unallocated Items.
Comparatives have been restated accordingly.





4. Net interest and similar items payable
                                                                                    Year ended                Year ended
                                                                                                            30 June 2002
                                                                                          US$M                      US$M
On bank loans and overdrafts                                                             (161)                     (236)
On all other loans                                                                       (311)                     (339)
Finance lease and hire purchase interest                                                   (5)                       (9)
                                                                                         (477)                     (584)
Dividends on redeemable preference shares                                                 (39)                      (83)
Discounting on provisions                                                                 (42)                      (39)
Less amounts capitalised                                                                    58                        39
                                                                                         (500)                     (667)
Share of interest of joint ventures and associates                                        (71)                      (94)
                                                                                         (571)                     (761)
Other interest receivable                                                                  142                       136
                                                                                         (429)                     (625)
Exchange differences on net debt - Group                                                   146                       118
Exchange differences on net debt - Joint ventures and associates                            34                        31
                                                                                           180                       149
Net interest and similar items payable (a)                                               (249)                     (476)


 a. Disclosed in the Consolidated Profit and Loss Account as:

Net interest and similar items payable - Group                                                       (212)         (413)
Net interest and similar items payable - Joint ventures and associates                                (37)          (63)
Net interest and similar items payable                                                               (249)         (476)



5. Taxation
                                                                                          Year ended          Year ended
                                                                                        30 June 2002        30 June 2001
                                                                                                US$M                US$M
Profit before taxation                                                                         2 727               2 063
Taxation on profit @ 30%                                                                         818                 619
Permanent differences:
Investment and development allowance                                                            (10)                (19)
Non-tax effected capital gains                                                                  (12)                (63)
Recognition of prior year tax losses                                                           (103)               (133)
Tax rate differential                                                                            (1)                  57
Non-tax effected operating losses                                                                 69                  47
Prior year adjustments / under or over provisions                                               (23)                   5
Non-deductible accounting depreciation and amortisation                                           54                  32
Foreign expenditure including exploration not presently deductible                                16                  57
Non-deductible dividends on redeemable preference shares                                          13                  24
South African secondary tax on companies                                                          48                  46
Foreign exchange gains and other translation adjustments                                         (2)               (113)
Tax rate changes                                                                                  59                (22)
Investment and asset impairments                                                                  32                 176
Non-deductible merger transaction costs                                                            -                  28
Other permanent differences                                                                       32                  70
Permanent differences                                                                            172                 192
Timing differences                                                                             (218)                  50
Current taxation charge for the period                                                           772                 861
Timing differences                                                                               218                (50)
Taxation charge for the period (including exceptional items)                                     990                 811



6. Reconciliation of movements in shareholders' funds
                                                                                          Year ended          Year ended
                                                                                        30 June 2002        30 June 2001
                                                                                                US$M                US$M
Profit for the financial period                                                                1 690               1 529
Other recognised gains and losses                                                                 25               (763)
Total recognised gains                                                                         1 715                 766
Dividends                                                                                      (784)               (754)
Issue of ordinary shares for cash                                                                104                 744
Capital reduction on OneSteel spin-out                                                             -               (650)
Share buy-back scheme - BHP Billiton Plc                                                           -                 194
Share buy-back scheme - BHP Billiton Limited                                                    (19)                   -
Transfer to profit and loss account (goodwill)                                                     -                   4
Net movement in shareholders' funds                                                            1 016                 304
Shareholders' funds at start of period                                                        11 340              11 036
Shareholders' funds at end of period                                                          12 356              11 340













7. Analysis of movement in net debt
                                                   As at Acquisitions                    Other   Exchange          As at
                                                                                      non-cash
                                             1 July 2001  & disposals    Cashflow    movements  movements   30 June 2002
                                                    US$M         US$M        US$M         US$M       US$M           US$M
Cash at bank and in hand                             836         (45)         411                     (3)          1 199
Overdrafts                                         (287)            -       (218)            -        (4)          (509)
                                                     549         (45)         193            -        (7)            690
Redeemable preference shares                       (890)            -         423            -         17          (450)
Finance lease obligations                           (63)            -          28            -          -           (35)
Other debt due within one year                   (1 432)            -       (313)        (574)         43        (2 276)
Other debt due after one year                    (5 934)            -         404          574       (95)        (5 051)
                                                 (8 319)            -         542            -       (35)        (7 812)
Money market deposits                                449            -       (157)            -          8            300
                                                 (7 321)         (45)         578            -       (34)        (6 822)
The balance sheet movement in cash including
money market deposits is as follows:
Cash at bank and in hand                             836         (45)         411            -        (3)          1 199
Money market deposits                                449            -       (157)            -          8            300
                                                   1 285         (45)         254            -          5          1 499






BHP Billiton Group Financial Results under Australian GAAP

      Year ended 30 June 2002
                                                                                                      US$ Million
      Revenue from ordinary activities
               Sales                                                                                       15 896
               Other revenue                                                                                1 166
                                                                                                           17 062
      Profit from ordinary activitites before
      depreciation, amortisation and borrowing costs                                                        4 852
      Deduct:           Depreciation and amortisation                                                       1 753
                        Borrowing costs                                                                       449
      Profit from ordinary activities before tax                                                            2 650
      Deduct:           Tax expense attributable to ordinary activities                                       955
      Net profit                                                                                            1 695
      Outside equity interests in net profit                                                                 (47)
      Net profit attributable to members of
      combined BHP Billiton Group                                                                           1 648
      Basic earnings per fully paid ordinary share (cents)                                                   27.3



Basis of Preparation

The results of the BHP Billiton Group, comprising BHP Billiton Limited and BHP
Billiton Plc, for the year ended 30 June 2002 have been prepared in accordance
with Australian GAAP and Practice Note 71 'Financial reporting by Australian
entities in dual listed company arrangements' issued by the Australian
Securities and Investments Commission (ASIC). Australian regulatory requirements
do not allow the combination of the results of BHP Billiton Limited with those
of BHP Billiton Plc for periods prior to consummation of the DLC merger on 29
June 2001.

The financial information has been prepared using the same accounting policies
as were used in preparing the results for the BHP Billiton Limited Group as
presented in the BHP Billiton Limited financial statements for the year ended 30
June 2001, except as noted below.

With effect from 1 July 2001, the majority of BHP Billiton Limited's businesses
changed their functional currency to US dollars, the functional currency of the
combined BHP Billiton Group. This is consistent with BHP Billiton Plc's previous
policy and is the basis on which the combined BHP Billiton Group manages its
businesses. Most BHP Billiton commodities are sold in US dollars and are
predominantly destined for export markets. BHP Billiton's reporting currency is
US dollars.

Concurrent with this change, the BHP Billiton Group has changed its policy
regarding the treatment of foreign exchange gains or losses on local currency
site restoration provisions held in the accounts of entities using US dollar
functional currencies. Under the previous policy, the foreign exchange gains and
losses were recognised in the profit and loss account. Under the revised policy,
such foreign exchange gains and losses are treated as part of the revision to
the estimated future restoration cost and are included in the cost of property,
plant and equipment. The revised policy has been adopted as it better matches
the ultimate cost of site restoration charged in the profit and loss account to
the profit earned. The impact in the year ended 30 June 2002 has been the
capitalisation to property, plant and equipment of foreign exchange losses of
US$40 million.

The results are subject to audit.
BHP Billiton Limited ABN 49 004 028 077                    BHP Billiton Plc Registration number 3196209
Registered in Australia                                    Registered in England and Wales
Registered Office: 600 Bourke Street Melbourne Victoria    Registered Office: 1-3 Strand London WC2N 5HA United Kingdom
3000                                                       Telephone [phone] Facsimile [phone]
Telephone [phone] Facsimile [phone]

              The BHP Billiton Group is headquartered in Australia




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