(1) From continuing operations, excluding the results of the Group's Steel business which was demerged in July 2002. Refer pages 15 - 17.

(3) There were no exceptional items in relation to continuing operations in either period.

(4) EBIT is earnings before interest and tax. EBITDA is EBIT before depreciation and amortisation of Group companies of US$792 million for the half year ended 31 December 2002 and US$799 million for the half year ended 31 December 2001.

All references to the corresponding period are to the half year ended 31 December 2001.

These results build on the progress made since the merger and illustrate the continued success of the Customer Sector Group business model and the Group's strategy. In a period of global economic weakness and despite self imposed cut-backs at some of our operations, financial results have remained solid and cash flow generation from our portfolio of high quality assets is strong. We have exceeded our merger benefits target six months ahead of schedule and have delivered further cost savings against our additional target of US$500 million.

Strong available cash flow (after interest and tax) of US$1,259 million has enabled us to proceed with sanctioned growth projects. Progress on all projects continues to be on or ahead of schedule and budget. Notable milestones were reached during the half year with the mechanical completion and commissioning of Escondida Phase IV (Chile), the commencement of operations at the San Juan underground project (US) and the commencement of natural gas flow through the Bream gas pipeline in Bass Strait (Australia). Currently 13 major capital projects are under development, including the recently approved Atlantis full field development in the Gulf of Mexico.

Strong cash flows enabled the Board to increase dividends paid to shareholders by 7.7% compared with the corresponding period. A dividend of 7.0 US cents per share was paid on 4 December 2002.

The Income Statement

During the period, the Group's Steel business was demerged. In order to provide meaningful comparison the discussion in this section is based on the Group's continuing operations, excluding exceptional items and the Group's Steel business.

Turnover rose by 5.2% to US$8,048 million, mainly due to higher sales volumes of iron ore, energy coal, diamonds and aluminium and higher prices for petroleum products, nickel, copper, manganese, metallurgical coal and chrome. These factors were partly offset by lower sales volumes of petroleum products and lower prices for export energy coal, diamonds, iron ore and aluminium.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 2.3% to US$2,451 million from US$2,395 million in the corresponding period.

Earnings before interest and tax (EBIT) were US$1,659 million compared with US$1,596 million in the corresponding period, an increase of 3.9%. This increase was due to increased sales volumes, lower exploration expense, cost savings, generally higher commodity prices, the favourable net effect of exchange rate movements and increased profits from new and acquired operations (including commencement of commercial production at Antamina (Peru) in October 2001 and the higher ownership interest in Cerrejon Zona Norte (Colombia) from February 2002). Offsetting factors were inflationary pressures, principally in South Africa, lower profits from ceased, sold and discontinued operations, increased price linked costs and lower profits as a consequence of asset sales recorded in the corresponding period. Please refer to pages 7 and 8 for further analysis of the factors affecting turnover and EBIT.

Net interest on borrowings and cash fell from US$262 million to US$200 million, principally driven by lower market interest rates and lower average debt levels.

Exchange losses on net debt were US$58 million compared with gains of US$242 million in the corresponding period, mainly in relation to the translation of Rand denominated debt of companies which account in US dollars as their functional currency. The Rand appreciated by 16% during the current period compared with depreciation of 47% in the corresponding period.

The tax charge was US$466 million, representing an effective rate of 33.0%. Excluding the impacts on tax of non tax-effected foreign currency, translation of tax balances and other functional currency translation adjustments, the effective rate was 32.4%.

Attributable profit (after minority interests of US$17 million) was US$931 million, a decrease of 19.4%, from US$1,155 million (after minority interests of US$19 million), largely due to benefits in net interest and taxation in the corresponding period attributable to the significant devaluation of the South African rand against the US dollar during the half year ended 31 December 2001.

Basic earnings per share was 15.0 US cents per share against 19.2 US cents per share in the corresponding period, a reduction of 21.9%, reflecting the reduction in attributable profit and an increased number of shares on issue (including the equalisation issue associated with the BHP Steel demerger).

The demerger of the Group's Steel business became unconditional on 1 July 2002. The contribution of the Group's Steel business in the corresponding period has been disclosed as discontinued operations. The 6% interest in BHP Steel retained by BHP Billiton was sold in July 2002 for US$75 million and the loss of US$19 million associated with this sale has been recognised in the half year and is disclosed as an exceptional item in relation to discontinued operations. The demerger was effected through a Court approved capital reduction of A$0.69 per BHP Billiton Limited share totalling approximately US$1.5 billion (A$2.6 billion) via the transfer of BHP Steel Limited shares to BHP Billiton Limited shareholders. Consequently, BHP Billiton Plc shareholders received approximately 149 million equalisation shares.

After including discontinued operations and exceptional items, the attributable profit for the period was US$912 million, US$286 million lower than the US$1,198 million for the corresponding period, again, primarily due to exchange gains in the prior period. Basic earnings per share, including discontinued operations and exceptional items, was 14.7 US cents per share, 26.1% lower than the 19.9 US cents per share of the corresponding period.

Available cash flow (after interest and tax) remained strong at US$1,259 million.

Expenditure on growth projects and investments amounted to US$1,020 million, including Petroleum projects in the Gulf of Mexico, the Mt Arthur North energy coal project in Australia, the ROD oil and Ohanet wet gas projects in Algeria, the Mining Area C, Yandi and Port and Capacity Expansion (PACE) iron ore projects in Australia, the Hillside 3 expansion in South Africa and the Mozal 2 expansion in Mozambique. Maintenance capital expenditure was US$248 million and exploration expenditure was US$130 million, whilst disposals of fixed assets, sale of investments and repayments of loans by joint ventures generated US$198 million.

Additionally, a net cash inflow of US$272 million was derived from the proceeds on demerger of the Group's Steel business. Whilst not reflected in cash flows, US$232 million of debt was retained by BHP Steel upon demerger.

Net cash flow before dividend payments was US$331 million. After dividend payments of US$835 million (up from US$811 million in the prior half year), net cash outflow (before management of liquid resources and financing) amounted to US$504 million.

Net debt of US$7,063 million at 31 December 2002 represents 37.5% of net debt plus net assets. Net debt comprises US$7,937 million of total debt offset by US$874 million of cash, including money market deposits.

On 4 December 2002, a dividend of 7.0 US cents per share was paid to BHP Billiton Limited and BHP Billiton Plc shareholders, which represents an increase of 7.7% compared with the corresponding period. The BHP Billiton Limited dividend was fully franked for Australian taxation purposes.

Dividends for the BHP Billiton Group are determined and declared in US dollars. However, BHP Billiton Limited dividends are mainly paid in Australian dollars and BHP Billiton Plc dividends are mainly paid in sterling to shareholders on the UK section of the register and South African rand to shareholders on the South African section of the register.

The Group's inaugural Eurobond issue, under the US$1.5 billion Euro Medium Term Note programme established in June 2002, took place in early October 2002. The issue of Euro 750 million five year notes, which were swapped into US dollars, was oversubscribed and priced at the lower end of market expectations. The success of this issue, in light of the then prevailing market conditions, is a clear reflection of the Group's strong credit profile.

The US$1.25 billion 364 day revolving credit component of the US$2.5 billion syndicated multi-currency revolving credit facility that was due for expiry in September 2002 was extended for a further period of 364 days to September 2003.

In October 2002, Moody's Investor Services upgraded the Group's long term credit rating to A2 from A3 and short term credit rating to P-1 from P-2. This upgrade reflects the successful combination of the Group's operations following the merger in June 2001, the benefit of a substantially diversified portfolio and our continued focus on maintaining disciplined financial policies. Standard & Poor's rating for the Group remains on positive watch after being upgraded in September 2001 to its current long term credit rating of A and short term credit rating of A-1.

During the year ended 30 June 2002, merger benefits (before one-off costs) of US$220 million were delivered. A further US$65 million of merger-related benefits have been achieved during the six months to 31 December 2002, bringing the total to US$285 million. This exceeds our target for merger benefits, set at the time of the merger, of US$270 million by the end of financial year 2003, and has been achieved six months ahead of schedule. One-off costs of US$130 million in total were incurred to deliver these on-going annual benefits, US$15 million of which were incurred in the current period.

A further target, to achieve additional annual cost savings and efficiency gains of US$500 million by June 2005 was set in our Strategic Framework last April. This target is to be measured by looking at commodity based unit costs using the year ended 30 June 2001 as the base year. Cost savings will be driven through the continuation of our Operating Excellence programme and productivity improvements, ongoing strategic sourcing and marketing initiatives. During the six months to December 2002, we achieved savings and efficiency gains of US$70 million in addition to the merger benefits set out above, largely as a result of Operating Excellence initiatives in our Aluminium, Base Metals and Stainless Steel Materials CSGs and other productivity gains in our Aluminium and Diamonds and Specialty Products CSGs.

The board appointed Mr Charles Goodyear as Chief Executive Officer on 5 January 2003 following the resignation of Mr Brian Gilbertson.

As yet, no payments have been made to Mr Gilbertson in connection with the cessation of his employment, nor has agreement been reached on the quantum of any payments to be made. Any payments will be disclosed immediately they are finalised. The terms under which Mr Gilbertson was employed, including the basis upon which the contracts of employment could be brought to an end, are set out in the Remuneration Report that forms part of the Annual Report published in September 2002. Details were also included in the explanatory material provided to shareholders ahead of their consideration of the merger. The Remuneration Report was put to the last Annual General Meeting and shareholders were invited to consider and approve the remuneration policy for the Group, which they did. The Group will continue to seek the approval of shareholders for its Remuneration Report.

In addition to the payments to be made under the terms of Mr Gilbertson's employment contracts, Mr Gilbertson has accrued entitlements under the applicable pension/superannuation arrangements which have been in place for the duration of his employment with the Group or predecessor companies. Mr Gilbertson's period of pensionable service is over 30 years. The amount payable under these pension/superannuation arrangements has been reported each year in the Remuneration Report.

Since the merger, the number of Directors on the Board has reduced from 17. The Board has continued with its regular review and appraisal process aimed at assessing the appropriate mix of skills, attributes and the performance of individual Directors. As part of this process, Dr John Buchanan was appointed to the Board of Directors with effect from 1 February 2003.

The Board today announced the appointment of Mr Miklos Salamon as an Executive Director to the Board of Directors, with immediate effect. In addition, Mr David Munro was appointed Chief Development Officer and a member of the Executive Committee. Mr Chris Pointon and Mr Marcus Randolph, presidents of the Stainless Steel Materials and Diamonds and Specialty Products CSGs respectively, were also appointed members of the Executive Committee. Please see separate press releases dated today's date for further details.

In general, London Metals Exchange commodity prices showed improvement during the December 2002 quarter. Prices continued to show some improvement in the opening weeks of calendar 2003. Prices for oil have risen as a result of the ongoing uncertainty in the Middle East and Venezuela, while steel making raw materials are well positioned to benefit from strong North East Asian and, in particular, Chinese demand.

The global economy continues to encounter both economic and geo-political tensions. Despite continued buoyancy in China, the Organisation for Economic Cooperation and Development (OECD) leading indicator is signalling continued weakness in global industrial production.

In the short term, the uncertainty regarding developments in the Middle East, continued high oil prices and weak global equity markets are weighing heavily on consumer and business sentiment with the latter delaying the new investment spending and employment growth needed before there will be any sustained improvement in the world economy. Demand in China, an important influence on many of our products, continues to be strong.

Despite this uncertain outlook, our diversified portfolio of high quality assets provides relatively stable cashflows, leaving us well placed to continue to invest in value adding opportunities and to prosper from any uptick in economic activity.

Higher sales volumes of iron ore, energy coal, diamonds and aluminium were partly offset by lower sales volumes of petroleum products, resulting in a positive net volume impact on EBIT of approximately US$130 million.

Higher prices for petroleum products, nickel, copper, manganese, metallurgical coal and chrome increased turnover by approximately US$290 million. This increase was partly offset by lower prices for export energy coal, diamonds, iron ore and aluminium that decreased turnover by approximately US$230 million.

Favourable operating cost performance increased EBIT by approximately US$80 million compared with the corresponding period. The Group's cost reduction initiatives and reduced maintenance costs at Hillside (South Africa) lowered costs by approximately US$190 million. These factors were partially offset by higher costs at Escondida, due to voluntary restraints on production, maintenance outages and higher depreciation from the start-up of Phase IV. Higher operating costs at Bass Strait and increased depreciation charges in Energy Coal (as a result of a review of asset lives) and in Petroleum also had an unfavourable impact on operating costs.

Increases in price-linked costs depressed EBIT by approximately US$50 million, mainly due to higher royalties and taxes for petroleum products.

Inflationary pressures, principally in South Africa, increased costs by approximately US$140 million.

New and acquired operations increased EBIT by approximately US$20 million due to the commencement of commercial production at Antamina in October 2001 and the higher ownership interest in Cerrejon Zona Norte from February 2002.

The corresponding period included EBIT of approximately US$80 million mainly from PT Arutmin (Indonesia), divested in November 2001, and the Rietspruit energy coal mine (South Africa), which was closed in May 2002.

The impact of asset sales is a reduction in EBIT of approximately US$40 million mainly from the divestment of PT Arutmin in the corresponding period.

Reduced losses on legacy A$/US$ currency hedging compared with the corresponding period had a favourable effect on EBIT of approximately US$80 million. In addition, the lower average Rand/US$ and Colombian peso/US$ exchange rates had a favourable impact on operating costs (approximately US$50 million). This was partly offset by the impact of stronger A$/US$ exchange rates on operating costs (approximately US$65 million) and the conversion of Rand denominated monetary assets and liabilities (approximately US$40 million) at balance sheet date.

Exploration expense was down by approximately US$90 million. The prior period included the write off of exploration expenditure at La Granja (Peru) and higher exploration expense in Petroleum.

The Group has adopted the US$ as its reporting currency and, subject to some specific exceptions, its functional currency. Currency fluctuations affect the profit and loss account in two principal ways.

Sales are predominantly based on US dollar pricing (the principal exceptions being Petroleum's gas sales to Australian and UK domestic customers and Energy Coal's sales to South African domestic customers). However, a proportion of operating costs (particularly labour) arises in the local currency of the operations, most significantly the Australian dollar and the South African rand, but also the Brazilian real, Chilean peso and Colombian peso. Accordingly, changes in the exchange rates between these currencies and the US dollar can have a significant impact on the Group's reported results.

Several subsidiaries hold certain monetary assets and liabilities denominated in currencies other than their functional currency (US dollars), in particular non-US dollar denominated debt, tax liabilities and provisions (mainly employee provisions and resource rent tax). Monetary assets and liabilities are converted into US dollars at the closing currency exchange rates. The resultant differences are accounted for in the profit and loss account in accordance with UK GAAP.

The following exchange rates have been utilised in this report:

The following table provides a summary of the Customer Sector Group results for the half year ended 31 December 2002 and the comparative period (for continuing operations and before exceptional items).

An explanation of the factors influencing EBIT, including joint ventures and associates, by Customer Sector Group, is as follows:

Petroleum contributed EBIT of US$660 million, up from US$576 million, an increase of 14.6% compared with the corresponding period.

The increase in EBIT was due mainly to a higher average realised oil price of US$27.19 per barrel compared to US$22.54 per barrel in the corresponding period, together with lower exploration costs in the current period and higher volumes at North West Shelf (Australia) due to timing of shipments and strong production.

These factors were partly offset by lower overall sales and production volumes at Liverpool Bay (UK) due to scheduled maintenance, and lower production at Bass Strait and Laminaria (Australia), due to natural field decline. An increase in price-linked costs (royalties and taxes), higher depreciation and an increase in costs at Bass Strait also had an unfavourable impact on EBIT.

Aluminium contributed EBIT of US$266 million, up from US$191 million, an increase of 39.3% compared with the corresponding period.

The increase in EBIT was mainly attributable to improved operational cost performance at Hillside, Worsley and Alumar, resulting from increased production and reduced maintenance costs. Increased production at Hillside and Worsley was mainly attributable to the continued success of Operating Excellence projects and increased production at Alumar was due to the end of power restrictions in Brazil. Lower maintenance costs at Hillside were mainly a result of a lower number of pots being relined in the current period, combined with the absence of the net costs associated with the September 2001 power outage. The weakening of the Rand/US$ and Brazilian Real/US$ average exchange rates also had a favourable impact on operating costs.

These factors were partially offset by the lower average LME price for aluminium, down US$17 per tonne or 1.3% to US$1,332 per tonne and the strengthening of the A$/US$ exchange rate.

Base Metals contributed EBIT of US$83 million, up from US$69 million, an increase of 20.3% compared with the corresponding period.

The increase in EBIT was mainly attributable to lower exploration expense with US$38 million relating to the write off of La Granja included in the corresponding period. Also contributing to the increase in EBIT was the higher average realised copper price at US$0.68 per lb, for the half year ended 31 December 2002, compared to US$0.65 per lb in the corresponding period. EBIT also benefited from a full six months of operations from Antamina. Commercial production at Antamina commenced in October 2001.

These factors were partially offset by increased unit costs at Escondida due to the ramp-up of Phase IV production and lower existing plant throughput resulting from maintenance outages. Production cutbacks at Escondida and Tintaya (Peru) were partially offset by the completion of the Phase IV expansion in October 2002.

Carbon Steel Materials contributed EBIT of US$506 million, down from US$565 million, a decrease of 10.4% compared with the corresponding period.

The decrease in EBIT was mainly attributable to the unfavourable impact of stronger A$/US$ exchange rates on operating costs compared to the corresponding period. Lower iron ore prices, following the contract settlements announced in May 2002, also unfavourably impacted EBIT.

These factors were partially offset by continued strong demand for Western Australian iron ore from Asian markets, which resulted in record production and shipping during the December 2002 half year. Increased demand during the current half for Samarco (Brazil) pellets also had a favourable impact on EBIT.

Diamonds and Specialty Products contributed EBIT of US$150 million, up from US$138 million, an increase of 8.7% compared with the corresponding period.

These factors were partially offset by lower average realised diamond prices (down 28%) as a result of a change in product mix compared with the corresponding period. Further, during the current period Integris' volumes have been adversely affected by market conditions in North America.

Energy Coal contributed EBIT of US$124 million, down from US$350 million, a decrease of 64.6% compared with the corresponding period.

The decrease in EBIT was primarily due to a significant decline in export market prices. The divestment of PT Arutmin in November 2001 and the closure of the Rietspruit mine in May 2002 had an unfavourable impact on EBIT with both the exclusion of the results of these operations in the current period and the profit on sale of PT Arutmin recorded in the corresponding period. The conversion of Rand denominated net monetary liabilities at balance date, the unit cost impact from lower Colombian production volumes in response to depressed European market conditions, higher depreciation charges as a result of a review of asset lives and inflationary pressure on costs in South Africa and Colombia also had an unfavourable impact on EBIT.

These factors were partially offset by higher sales volumes at Ingwe (South Africa) and Hunter Valley (Australia), the inclusion of profits from the additional share of the Cerrejon Zona Norte operation and cost improvement initiatives across all Energy Coal operations.

Stainless Steel Materials contributed EBIT of US$61 million, compared with a loss of US$36 million in the corresponding period.

The increase in EBIT was driven by higher realised prices for nickel, up by 29%. In addition, a 12% increase in ferrochrome production, associated with the restart of idle furnaces in the period in response to increasing market demand, and a 15% increase in nickel production reflecting the continued ramp-up of production from Cerro Matoso Line 2 (Colombia) improved results. Benefits from ongoing improvement programs at both Cerro Matoso and QNI (Australia) and the impact of the weaker average Rand/US$ exchange rates on operating costs also had a favourable impact on EBIT.

Corporate overheads for the half year decreased by US$24 million (after taking account of inflation and exchange impacts) to US$100 million. Losses on legacy A$/US$ currency hedging also decreased to US$95 million from US$176 million in the corresponding period, which were partly offset by the unfavourable impact of one-off items.

INDEPENDENT REVIEW REPORT OF THE AUDITORS

TO BHP BILLITON PLC 14

CONSOLIDATED PROFIT AND LOSS ACCOUNT 15

CONSOLIDATED BALANCE SHEET 18

CONSOLIDATED STATEMENT OF TOTAL

RECOGNISED GAINS AND LOSSES 18

CONSOLIDATED STATEMENT OF CASH FLOWS 19

NOTES TO INTERIM FINANCIAL INFORMATION 21

The interim financial information set out on pages 15 to 26 has been prepared on the same basis and using the same accounting policies as were applied in drawing up the financial information contained in the accounts of BHP Billiton Plc for the year ended 30 June 2002. The interim financial information should be read in conjunction with the accounts of BHP Billiton Plc for the year ended 30 June 2002 and does not include all information normally contained within the notes to annual accounts.  Where applicable, comparatives have been adjusted to disclose them on the same basis as current period figures.

The Group has yet to decide whether or not to apply consolidations under the new Australian tax consolidations legislation. If a decision is made to apply consolidations, any accounting consequences will be recorded as appropriate. In the event that the Group elects to apply consolidations there is not expected to be any adverse effect on recorded tax assets.

The financial information for the half years ended 31 December 2002 and 31 December 2001 is unaudited. In the opinion of the Directors, the financial information for these periods presents fairly the financial position, results of operations and cash flows for the periods in conformity with UK generally accepted accounting principles (GAAP).

The financial information for the year ended 30 June 2002 has been derived from the audited financial statements of BHP Billiton Plc for that period as filed with the UK Registrar of Companies and does not constitute the statutory accounts of BHP Billiton Plc for that period. The auditors' report on the statutory accounts for the year ended 30 June 2002 was unqualified and did not contain statements under Section 237 (2) (regarding adequacy of accounting records and returns) or under Section 237 (3) (provision of necessary information and explanations) of the United Kingdom Companies Act 1985.

We have been engaged by the Company to review the financial information for the six months ended 31 December 2002 set out on pages 15 to 26 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Listing Rules of the United Kingdom Financial Services Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the United Kingdom Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts, in which case any changes, and the reasons for them, are disclosed.

We conducted our review in accordance with guidance contained in Bulletin 1999/4: "Review of Interim Financial Information" issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions which is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31 December 2002.

KPMG Audit Plc
Chartered Accountants
London, 24 February 2003

PricewaterhouseCoopers 
Chartered Accountants
London, 24 February 2003

for the half year ended 31 December 2002

For the year ended 30 June 2002 BHP Steel's results were reported as discontinued operations due to the demerger of the BHP Steel business in July 2002. The half year ended 31 December 2001 has been restated accordingly. There are no exceptional items in net operating costs of discontinued operations for the half year ended 31 December 2001 or the full year ended 30 June 2002. Net interest shown against discontinued operations includes that amount of net external interest that is directly attributable to the discontinued operations. Taxation is the nominal charge on the profit before taxation.

Under the terms of the DLC merger, the rights to dividends of a holder of an ordinary share in BHP Billiton Plc and a holder of an ordinary share in BHP Billiton Limited are identical. Consequently, earnings per share has been calculated on the basis of the aggregate number of ordinary shares ranking for dividend. The weighted average number of shares used for the purposes of calculating basic earnings per share is calculated after deduction of the shares held by the share repurchase scheme and the Billiton Employee Share Ownership Trust.

The calculation of basic earnings per ordinary share is based on earnings after tax and minority interest of US$912 million (31 December 2001: US$1,198 million; 30 June 2002: US$1,690 million) and the weighted average number of ordinary shares outstanding of 6,201 million (31 December 2001: 6,024 million; 30 June 2002: 6,029 million). The calculation of diluted earnings per share is based on earnings after tax and minority interest of US$912 million (31 December 2001: US$1,198 million; 30 June 2002: US$1,690 million) and the weighted average number of shares outstanding of 6,219 million (31 December 2001: 6,040 million; 30 June 2002: 6,042 million). The exceptional loss of US$19 million upon sale of the 6% interest in BHP Steel for US$75 million in July 2002 reduced basic and diluted earnings per share by 0.3 US cents for the half year ended 31 December 2002.

For the periods reported, one American Depositary Share (ADS) represents two shares. Earnings per ADS were 29.4 US cents for the half year ended 31 December 2002 (31 December 2001: 39.8 US cents; 30 June 2002: 56.0 US cents).

at 31 December 2002

Effective July 2002, the BHP Steel business was demerged from the BHP Billiton Group. The Consolidated Balance Sheets as at 31 December 2001 and 30 June 2002 include BHP Steel assets and liabilities accordingly.

for the half year ended 31 December 2002

Effective July 2002, the BHP Steel business was demerged from the BHP Billiton Group. The Consolidated Statement of Total Recognised Gains and Losses for the half year ending 31 December 2001 and year ending 30 June 2002 includes gains and losses pertaining to BHP Steel.

for the half year ended 31 December 2002

Effective July 2002, the BHP Steel business was demerged from the BHP Billiton Group. The Consolidated Statement of Cash Flows for the half year ending 31 December 2001 and year ending 30 June 2002 include cash flows pertaining to BHP Steel.

For the half year ended 31 December 2002

Effective July 2002, the BHP Steel business was demerged from the BHP Billiton Group. The Consolidated Statement of Cash Flows for the half year ending 31 December 2001 and year ending 30 June 2002 include cash flows pertaining to BHP Steel.

There were no exceptional items in the half year ended 31 December 2001.

NOTE 2. ANALYSIS BY BUSINESS SEGMENT continued

NOTE 3. ANALYSIS BY GEOGRAPHICAL SEGMENT continued