1 Segment reporting

Reportable segments

The Group operated three reportable segments during FY2022, which are aligned with the commodities that are extracted and marketed and reflect the structure used by the Group’s management to assess the performance of the Group.


Reportable segment		Principal activities

Copper		Mining of copper, silver, zinc, molybdenum, uranium and gold

Iron Ore		Mining of iron ore

Coal		Mining of metallurgical coal and energy coal

On 22 November 2021, the Group signed a binding SSA for the merger of the Group’s oil and gas portfolio with Woodside. Following that announcement, the Group’s Petroleum business no longer meets the reporting segment recognition criteria as outlined in IFRS 8/AASB 8 ‘Operating segments’ and therefore does not form part of the reportable segments. Comparative periods have been adjusted for the effects of applying IFRS 5/AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’ to disclose the Group’s Petroleum business on the same basis as the current period.

Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West and legacy assets, and consolidation adjustments. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations. Exploration and technology activities are recognised within relevant segments.


Year ended 30 June 2022 US$M	Copper			Iron Ore			Coal			Group and unallocated items/ eliminations			Group total
Revenue		16,849			30,767			15,549			1,933			65,098
Inter-segment revenue		–			–			–			–			–

Total revenue		16,849			30,767			15,549			1,933			65,098

Underlying EBITDA		8,565			21,707			9,504			858			40,634

Depreciation and amortisation		(1,765	)		(2,203	)		(762	)		(953	)		(5,683	)
Impairment losses 1		(470	)		(33	)		(9	)		(3	)		(515	)

Underlying EBIT		6,330			19,471			8,733			(98	)		34,436

Exceptional items 2		(81	)		(648	)		849			(450	)		(330	)
Net finance costs														(969	)

Profit before taxation														33,137

Capital expenditure (cash basis)		2,528			1,848			621			858			5,855

Profit/(loss) from equity accounted investments, related impairments and expenses		577			(595	)		–			(1	)		(19	)

Investments accounted for using the equity method		1,415			–			–			5			1,420

Total assets 3		32,762			24,613			11,524			26,267			95,166

Total liabilities 3		5,342			7,790			3,874			29,394			46,400


Year ended 30 June 2021 US$M Restated	Copper			Iron Ore			Coal			Group and unallocated items/ eliminations			Group total
Revenue		15,726			34,475			5,154			1,566			56,921
Inter-segment revenue		–			–			–			–			–

Total revenue		15,726			34,475			5,154			1,566			56,921

Underlying EBITDA		8,489			26,278			288			18			35,073

Depreciation and amortisation		(1,608	)		(1,971	)		(845	)		(660	)		(5,084	)
Impairment losses 1		(72	)		(13	)		(20	)		(31	)		(136	)

Underlying EBIT		6,809			24,294			(577	)		(673	)		29,853

Exceptional items 2		(144	)		(1,319	)		(1,567	)		(1,308	)		(4,338	)
Net finance costs														(1,223	)

Profit before taxation														24,292

Capital expenditure (cash basis)		2,180			2,188			579			665			5,612

Profit/(loss) from equity accounted investments, related impairments and expenses		692			(1,126	)		(480	)		(1	)		(915	)

Investments accounted for using the equity method		1,482			–			–			260			1,742

Total assets 3		31,517			26,171			11,030			40,209			108,927

Total liabilities 3		4,589			7,508			3,518			37,707			53,322


Year ended 30 June 2020 US$M Restated	Copper			Iron Ore			Coal			Group and unallocated items/ eliminations			Group total
Revenue		10,666			20,797			6,241			1,220			38,924
Inter-segment revenue		–			–			1			(1	)		–

Total revenue		10,666			20,797			6,242			1,219			38,924

Underlying EBITDA		4,347			14,554			1,632			(663	)		19,870

Depreciation and amortisation		(1,740	)		(1,608	)		(807	)		(512	)		(4,667	)
Impairment losses 1		(17	)		(22	)		(14	)		(20	)		(73	)

Underlying EBIT		2,590			12,924			811			(1,195	)		15,130

Exceptional items 2		(1,228	)		(614	)		(18	)		413			(1,447	)
Net finance costs														(858	)

Profit before taxation														12,825

Capital expenditure (cash basis)		2,434			2,328			603			626			5,991

Profit/(loss) from equity accounted investments, related impairments and expenses		67			(508	)		(68	)		1			(508	)

Investments accounted for using the equity method		1,558			–			776			251			2,585

Total assets 3		28,892			23,841			12,110			40,890			105,733

Total liabilities 3		3,535			5,441			2,601			41,981			53,558

1	Impairment losses exclude exceptional items of US$ nil (2021: US$2,371 million; 2020: US$409 million).

Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(13) million (2021: US$(14) million; 2020: US$(32) million) and Samarco related other income of US$

nil (2021: US$34 million; 2020: US$489 million). Refer to note 3 ‘Exceptional items’ for further information.

3	Group and unallocated comparative periods total assets and total liabilities include Petroleum assets and liabilities that were previously disclosed as part of the Petroleum segment.

Geographical information


	Revenue by location of customer
	2022		2021		2020
	US$M		US$M		US$M
			Restated		Restated
Australia		1,649		1,871		1,212
Europe		2,129		886		963
China		36,618		39,653		26,503
Japan		8,401		4,387		3,314
India		5,215		2,189		1,475
South Korea		4,786		3,420		2,666
Rest of Asia		4,303		2,934		1,730
North America		1,282		1,147		719
South America		715		426		315
Rest of world		–		8		27

		65,098		56,921		38,924


	Non-current assets by location of assets
	2022		2021		2020
	US$M		US$M		US$M
Australia		43,250		48,612		48,236
North America		3,964		9,701		9,682
South America		18,280		18,548		18,179
Rest of world		150		1,851		1,955
Unallocated assets 1		858		3,522		6,210

		66,502		82,234		84,262

1	Unallocated assets comprise deferred tax assets and other financial assets.

Underlying EBITDA

Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit).

Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from period-to-period and provide investors with further clarity in order to assess the performance of the Group’s operations. Management monitors exceptional items separately. Refer to note 3 ‘Exceptional items’ for additional detail.

Segment assets and liabilities

Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment.