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  "documentTitle": "Elliott Management | Activist Presentation Deck | 39 slides",
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  "authorName": "Elliott Management",
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  "presentationDate": "2017-05-01 00:00:00",
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  "notes": "Uses a line chart with annotated 'X' markers to highlight historical buyback points at high valuation multiples.",
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      "kind": "callout",
      "text": "As an example, if BHP's c.US$10 billion of buybacks in 2010-2011 were done today, the same number of shares could be bought back 64% cheaper, saving US$6.4 billion",
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      "text": "BHP Buyback History",
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      "text": "Management's track record in conducting share buybacks is abysmal; Average P/B multiple paid: 4.56x; Range P/B multiple paid: 4.07x-6.23x; Value destroyed as compared to buying shares at current prices: c.US$9 billion",
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      "text": "Management's claims that buybacks are a core element of their capital allocation framework are hard to credit, when (i) the last buyback of any scale was made as long ago as 2011 – when BHP rather unfortunately spent c.US$10 billion buying back shares at peak cycle prices; and (ii) they are seemingly unwilling to consider buybacks at the current P/B of 1.55x – 63% lower than the average multiple paid in 2011",
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      "kind": "paragraph",
      "text": "We have proposed a sensible and more disciplined approach to buying back shares that could start with a US$6 billion buyback in 2018. Assuming the current valuation remains unchanged, this would maintain both the Company's A-grade credit rating and result in US$2.4 billion of value accretion – equivalent to more than 12x our expected costs of unification",
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      "text": "Note: BHP share price is weighted in proportion to the numbers of shares in issue for each of Plc and Ltd. Book value per share for Ltd buybacks is the last reported value at the time of the applicable buyback (1) Note: The P/B for each on-market Plc buyback is calculated by dividing the price per share (i.e. the total cost of the applicable buyback divided by the number of shares purchased over the corresponding buyback period) by the book value per share (i.e. the average of the last reported book value per share at the start and end of the buyback period)",
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      "kind": "title",
      "text": "Share Buybacks – Clear Scope for BHP to Improve",
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