Page 265 - Annual Report 2020

Underlying EBITDA margin
Group and Strategic Report
unallocated
Year ended 30 June 2020 items/
US$M Petroleum Copper Iron Ore Coal elimination (4) Total Group
Revenue – Group production 4,031 9,577 20,782 6,242 1,128 41,760
Revenue – Third party products 39 1,089 15 − 28 1,171
Revenue 4,070 10,666 20,797 6,242 1,156 42,931
Underlying EBITDA – Group production (1) 2,209 4,306 14,561 1,632 (669) 22,039
Underlying EBITDA – Third party products (1) (2) 41 (7) − − 32
Underlying EBITDA 2,207 4,347 14,554 1,632 (669) 22,071
Segment contribution to the Group’s Underlying EBITDA (2) 10% 19% 64% 7% 100% Governance at BHP
Underlying EBITDA margin (3) 55% 45% 70% 26% 53%

Group and
Year ended 30 June 2019 unallocated
US$M items/
Restated Petroleum Copper Iron Ore Coal elimination (4) Total Group
Revenue – Group production 5,920 9,729 17,223 9,102 1,116 43,090
Revenue – Third party products 10 1,109 32 19 28 1,198
Revenue 5,930 10,838 17,255 9,121 1,144 44,288
Underlying EBITDA – Group production 4,061 4,434 11,115 4,068 (649) 23,029 Remuneration Report
(1)
Underlying EBITDA – Third party products (1) − 116 14 (1) − 129
Underlying EBITDA 4,061 4,550 11,129 4,067 (649) 23,158
Segment contribution to the Group’s Underlying EBITDA (2) 17% 19% 47% 17% 100%
Underlying EBITDA margin (3) 69% 46% 65% 45% 53%

Group and
Year ended 30 June 2018 unallocated
US$M items/
Restated Petroleum Copper Iron Ore Coal elimination (4) Total Group Directors’ Report
Revenue – Group production 5,396 11,432 14,756 8,887 1,222 41,693
Revenue – Third party products 12 1,349 54 2 19 1,436
Revenue 5,408 12,781 14,810 8,889 1,241 43,129
Underlying EBITDA – Group production (1) 3,392 6,462 8,929 4,398 (60) 23,121
Underlying EBITDA – Third party products (1) 1 60 1 (1) 1 62
Underlying EBITDA 3,393 6,522 8,930 4,397 (59) 23,183
Segment contribution to the Group’s Underlying EBITDA (2) 15% 28% 38% 19% 100%
Underlying EBITDA margin (3) 63% 57% 61% 49% 55%
(1) We differentiate sales of our production from sales of third party products to better measure the operational profitability of our operations as a percentage of revenue. Financial Statements
These tables show the breakdown between our production and third party products, which is necessary for the calculation of the Underlying EBITDA margin and
margin on third party products.
We engage in third party trading for the following reasons:
• Production variability and occasional shortfalls from our assets means that we sometimes source third party materials to ensure a steady supply of product
to our customers.
• To optimise our supply chain outcomes, we may buy physical product from third parties.
• To support the development of liquid markets, we will sometimes source third party physical product and manage risk through both the physical and
financial markets.
(2) Percentage contribution to Group Underlying EBITDA, excluding Group and unallocated items.
(3) Underlying EBITDA margin excludes third party products. 6
(4) Group and unallocated items includes functions, other unallocated operations, including Potash, Nickel West and legacy assets (previously disclosed as closed mines
in the Petroleum reportable segment), and consolidation adjustments. Comparative information for the year ended 30 June 2019 and 30 June 2018 have been restated
to reflect the inclusion of legacy assets in Group and unallocated items. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third
parties. Exploration and technology activities are recognised within relevant segments. Additional information

Shareholder information

BHP Annual Report 2020 263