Analyzing cash flow:

it is an annual report of BHP, if information is missing , you can find it from

https://www.bhp.com/investor-centre/annual-report-2019/

Considering a number of questions through analysis of the statement of cash flows.

For example:

?Operating activities

? How strong is the firm's internal cash flow generation?

? How well is working capital being managed?

?Investing activities

?How much cash did the company invest in growth/ assets?

?Financing activities

?What type of external financing does the company rely on?

?Did the company use internally generated funds for investments?

?Did the company use internally generated funds to pay dividends?

Thank you so much.

flow

5.1.4 Consolidated Cash Flow Statement for the year ended 30 June 2019 2019 2018 2017 Notes US$M US$M US$M Operating activities Profit before taxation 15,049 14,751 11,137 Adjustments for: Depreciation and amortisation expense 5,829 6,288 6,184 Impairments of property, plant and equipment, financial assets and intangibles 264 333 193 Net nance costs 1,064 1,245 1,417 Loss/(profit) from equity accounted investments, related impairments and expenses 54-6 (147) (272) Other 308 597 194 Changes in assets and liabilities: Trade and other receivables (211) (662) 267 Inventories 298 (182) (687) Trade and other payables 406 719 512 Provisions and other assets and liabilities (125) 7 (333) Cash generated from operations 23,428 22,949 18,612 Dividends received 516 709 636 Interest received 443 290 164 Interest paid (1,346) (1,177) (1,148) ProceedsKsettlements) of cash management related instruments 296 (292) (140) Net income tax and royalty-related taxation refunded 59 17 337 Net income tax and royalty-related taxation paid (5,999) (4,935) (2,585) Net operating cash flows from Continuing operations 175397 17,561 15,876 Net operating cash flows from Discontinued operations 27 474 900 928 Net operating cash flows 17,811 18,461 16,804 Investing activities Purchases of property, plant and equipment (6,250) (4,979) (3,697) Exploration expenditure (873) (874) (966) Exploration expenditure expensed and included in operating cash flows 516 641 610 Net investment and funding of equity accounted investments (630) 204 (234) Proceeds from sale of assets 145 89 529 Proceeds from divestment of subsidiaries, operations and joint operations, net of their cash 4 187 Other investing (239) (141) (153) Net investing cash flows from Continuing operations (7,377) (5,060) (3,724) Net investing cash flows from Discontinued operations 27 (443) (861) (437) Proceeds from divestment of Onshore US, net of its cash 27 10,427 Net investing cash flows 2,607 (5,921) (4,161) Financing activities Proceeds from interest bearing liabilities 250 528 1,577 (Settlements)/proceeds of debt related instruments (160) (218) 36 Repayment of interest bearing liabilities (2,604) (4,188) (7,114) Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts (188) (171) (108) Share buy-back BHP Group Limited (5,220) Dividends paid (11,395) (5,220) (2,921) Dividends paid to non-controlling interests (1,198) (1,582) (575) Net nancing cash flows from Continuing operations (20,515) (10,851) (9,105) Net financing cash flows from Discontinued operations 27 (13) (40) (28) Net financing cash flows (20,528) (10,891) (9,133) Net (decrease)lincrease in cash and cash equivalents from Continuing operations (10,495) 1,650 3,047 Net increase/(decrease) in cash and cash equivalents from Discontinued operations 18 (1) 463 Proceeds from divestment of Onshore US, net of its cash 10,427 Cash and cash equivalents, net of overdrafts, at the beginning of the financial year 15,813 14,108 10,276 Foreign currency exchange rate changes on cash and cash equivalents (170) 56 322 Cash and cash equivalents, net of cverdrafts, at the end of the financial year 19 15,593 15,813 14,108 The accompanying notes form part of these Financial Statements. Reconciling our financial results to our key performance indicators Profit Earnings Cash Measure: Profit after taxation from US$M Profit after taxation from US$M Net operating cash flows US$M Continuing and Continuing and Discontinued operations 9,185 Discontinued operations 9,185 from Continuing operations 17,397 Made up of: Profit after taxation Profit after taxation Cash generated by the Group's consolidated operations, after dividends received, interest, taxation and royalty-related taxation. It excludes cash flows relating to investing and financing activities Adjusted for: Exceptional items before tax " 1,060 Exceptional items Net operating cash flows before taxation 1,060 from Discontinued 474 operations Tax effect of Tax effect of exceptional items (242) exceptional items (242) Depreciation and amortisation excluding 5,829 exceptional items Exceptional items Impairments of property, attributable to 818 plant and equipment, 264 BHP shareholders financial assets and intangibles excluding exceptional item Profit after taxation (879) Net finance costs excluding attributable to exceptional items 956 non-controlling interests Taxation expense excluding exceptional items 5,771 Loss after taxation from Discontinued operations 335 To reach Underlying attributable profit 9,124 Underlying our KPIs EBITDA 23,158 Net operating cash flows 17,871 Why do Underlying attributable profit allows the Underlying EBITDA is the key alternative Net operating cash flows provide insights we use it? comparability of underlying financial performance measure that management nto how we are managing costs and performance by excluding the impacts of uses internally to assess the performance increasing productivity across BHP. exceptional items and is a performance of BHP's segments and make decisions indicator against which short-term incentive on the allocation of resources and, in outcomes for our senior executives are our view, is more relevant to capital measured. It is also the basis on which our widend p intensive industries with long-life assets