Employee share ownership plans (Tables)

The table below provides a description of each of the

plans

The CDP is a plan for Executive KMP and members of the Executive Leadership Team who are not Executive KMP.

Generally under the CDP, two thirds of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the vesting period (and the remaining one third is delivered in cash).

Two awards

of deferred shares are granted, each of the equivalent value to the cash award, vesting between

two

and

five

years respectively. Awards of deferred shares may also be granted to members of the Executive Leadership Team as additional retention awards with vesting periods of up to five years.

The LTIP is a plan for Executive KMP and members of the Executive Leadership Team who are not Executive KMP, and awards are granted annually.

The MAP is a plan for BHP senior management who are not Executive KMP. The number of share rights awarded is determined by a participant’s role and grade.

LTIP: Service and performance conditions.

From FY2023 BHP’s Total Shareholder Return

(TSR) performance relative to two Morgan Stanley Capital International (MSCI) market indices, the MSCI World Metals and Mining Index (“Sector Group TSR”) and the MSCI World Index (“World TSR”). The Sector Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the World TSR determines the vesting of 33 per cent of the awards. For awards granted prior to FY2023, TSR performance relative to a bespoke sector peer group and the MSCI World Index determines the vesting of 67 per cent and 33 per cent of the award, respectively.

25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the relevant comparator group(s), as measured over the performance period. Where TSR is below the median, awards will not vest. Vesting occurs on a sliding scale when BHP’s TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest.

MAP: Service conditions only.

MAP – 1 to 5 years

Dividend Equivalent Payment

For LTIP awards granted prior to unification and where the five-year performance period ends after unification, the TSR at the start of the performance period is based on the weighted average of the TSRs of BHP Group Limited and BHP Group Plc and the TSR at the end of the performance period is based on the TSR of BHP Group Limited.

Employee share awards

at the
beginning
of the
financial
year

Number of
awards
issued
during the
year

Number of
awards
vested and
exercised

Number of
awards
lapsed

at the end
of the
financial
year

Weighted
average
remaining
contractual
life (years)

Weighted
average
share
price at
exercise
date

There were 75,457 awards vested and exercisable at the end of the financial year.

Fair value and assumptions in the calculation of fair value for awards issued

Weighted
average fair
value of
awards
granted
during the
year US$

Risk-free

interest
rate

Estimated
life of
awards

Share price at grant date

Estimated
volatility
of share
price

A$43.49/A$47.74/A$45.52/A$42.75

Includes CDP awards granted on 8 December 2023 and 20 June 2024.

Includes MAP awards granted on 27 September 2023, 8 December 2023, 12 April 2024 and 20 June 2024.