Fortescue Ltd · ASX:FMG
Fortescue — Shareholder Meeting (November 2017)
50 slides from Fortescue's shareholder meeting presentation, Nov 8, 2017
Slide 1: CEO Presentation
For personal use only CEO Presentation
Slide 2: Building a world class company
Building a world class company For personal use only Safety focus: engagement, empowerment, leadership Shipped over Core supplier to China 935mt Low cost 170mt producer Production rate
Slide 3: Our Vision: The safest, lowest cost, most profitable iron ore producer
Our Vision: The safest, lowest cost, most profitable iron ore producer Safety Family Empowerment Frugality Stretch targets Ww Fortescue wm orageand F Integrity Enthusiasm determination Generating ideas Humility The New Force in Iron Ore
Slide 4: Corporate Video
For personal use only • CORPORATE VIDEO 4
Slide 5: Generating shareholder value
Generating shareholder value Focus on safety, productivity and efficiency For personal use only Market strategy Operational performance Long life resources Capital discipline Shareholder returns
Slide 6: Delivering on our targets in FY17
Delivering on our targets in FY17 For personal use only Sustainable cost reduction and consistent production performance C1 cost TRIFR 2.9 170.4mt US$12.82/wmt 33% reduction Shipped 17% reduction A$0.45 21% US$2.7bn Total FY17 dividends Net gearing Debt repaid 52% pay-out
Slide 7: Safety performance improves year on year
Safety performance improves year on year For personal use only Significant improvement since FY11 Total Recordable Injury Frequency Rate 16 14.4 14 12 10 9.2 TRIFR 8 7.6 6.0 6 5.1 4.3 4 2.9 3.0 2 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Q1 FY18
Slide 8: Sustainable cost improvements
Sustainable cost improvements For personal use only Initiatives delivering long term low cost outcomes - US$12.15 Q1 FY18 US$/wmt Structural improvements 48 44 Solomon + Blending + Processing 34 Productivity and Efficiency 27 Utilisation, Recoveries, Maintenance 15 12.82 11-12 Innovation and Technol
Slide 9: Maintaining position on the cost curve
Maintaining position on the cost curve For personal use only China's Iron Ore Supply CFR Costs (including royalties & ocean freight) 2012 2018 Source: Metalytics – October 2017
Slide 10: Financial performance
For personal use only Financial performance
Slide 11: FY17 financial outcomes
FY17 financial outcomes For personal use only Operational performance delivering financial results Revenue Underlying EBIDTA NPAT US$8.4bn US$4.7bn US$2.1bn 19% 48% 112% Free cash flow Debt repaid Earnings per share US$3.5bn US$2.7bn US$67.3cents 65% Net Debt US$2.6bn 113%
Slide 12: FY18 on track
FY18 on track For personal use only Q1 Operational performance delivering financial results and cashflows 12
Slide 13: Core supplier to Asia
Core supplier to Asia For personal use only Well established market share of imported iron ore to China Total 2016 global steel production 1,629mt Low impurity 58% Fe average Competitive Large diverse value in use customer base 541 808 Responsive Proximity 79 to market needs to high growth 96 105 re
Slide 14: Developing and emerging Asia
Developing and emerging Asia For personal use only Asian economies generating two thirds of global growth Source: IMF World Economic Database Oct 2016
Slide 15: China's New Silk Road Plan
China’s New Silk Road Plan For personal use only
Slide 16: Building strong communities
Building strong communities For personal use only Ensuring communities benefit from the growth and development of our business
Slide 17: Creating positive social change
Creating positive social change For personal use only By building local communities and empowering Aboriginal people 15% $1.95 billion Training $50million Aboriginal Contracts with VTEC Guaranteed employment Aboriginal businesses Trade Up Leasing Facility 14 day payment terms
Slide 18: Setting high standards
Setting high standards For personal use only Practical initiatives to creating a supportive and encouraging environment for women
Slide 19: Key strategic focus
Key strategic focus For personal use only Ensuring our communities benefit from the growth and development of Fortescue Long term sustainability Debt repayment and capital flexibility Low cost growth options Returns to shareholders
Slide 20: Sustainable low cost producer, world class assets and people
For personal use only Sustainable World class Low cost producer Assets and people Customer focus Unique culture Reliable and competitive Drives performance
Slide 21: Chairman's Presentation
For personal use only Chairman’s Presentation
Slide 22: Achieving great results
Achieving great results For personal use only Guinness Book of Records - the fastest, heavy haul railway in the world 22
Slide 23: Disciplined execution of a clear strategy
Disciplined execution of a clear strategy For personal use only Achieving strong returns for all shareholders
Slide 24: Continue to set challenging stretch targets
Continue to set challenging stretch targets For personal use only The entire team has demonstrated their outstanding capability 24
Slide 25: Growth and development
Growth and development The next phase of Fortescue’s journey For personal use only
Slide 26: Board governance
Board governance For personal use only Fresh thinking, vitality, energy, diversity and depth of experience 26
Slide 27: Close engagement with China
Close engagement with China For personal use only Value our relationships with our customers
Slide 28: Minderoo Foundation
Minderoo Foundation For personal use only For the love of our country and commitment to serve others 28
Slide 29: Minderoo Foundation
Minderoo Foundation For personal use only Strengthening communities and vulnerable individuals with a hand up not a hand out 29
Slide 30: Minderoo Foundation: Six Foundations
Minderoo Foundation For personal use only Six Foundations
Slide 31: All made possible by years of stable leadership
All made possible by 15 years of stable leadership For personal use only 31
Slide 32: Business of Meeting
For personal use only Business of Meeting
Slide 33: Financial Reports
Financial Reports For personal use only Consideration of the Financial Reports To receive and consider the financial report, the reports of the Directors and the auditors of the Company and its controlled entities for the year ended 30 June 2017. Further Information Ms Elizabeth Gaines, Fortescue’s
Slide 34: Adoption of Remuneration Report
Resolution 1 For personal use only Adoption of Remuneration Report To consider and, if thought fit, to pass the following resolution as an advisory resolution: “That the Remuneration Report for the Company and its controlled entities for the year ended 30 June 2017 be approved and adopted.” Further
Slide 35: Adoption of Remuneration Report: Proxy Results
Resolution 1 For personal use only Adoption of Remuneration Report To consider and, if thought fit, to pass the following resolution as an advisory resolution: “That the Remuneration Report for the Company and its controlled entities for the year ended 30 June 2017 be approved and adopted.” Proxy Re
Slide 36: Re-election of Mr Andrew Forrest AO
Resolution 2 For personal use only Re-election of Mr Andrew Forrest AO To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Andrew Forrest be re-elected as a Director of the Company.” Further Information • Mr Forrest, who has an interest in the Resolu
Slide 37: Re-election of Mr Andrew Forrest AO: Proxy Results
Resolution 2 For personal use only Re-election of Mr Andrew Forrest AO To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Andrew Forrest be re-elected as a Director of the Company.” Proxy Results FOR AGAINST OPEN TO CHAIR OPEN TO OTHER 2,300,322,607
Slide 38: Re-election of Mr Mark Barnaba AM
Resolution 3 For personal use only Re-election of Mr Mark Barnaba AM To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Mark Barnaba be re-elected as a Director of the Company.” Further Information • Mr Barnaba, who has an interest in the Resolution
Slide 39: Re-election of Mr Mark Barnaba AM: Proxy Results
Resolution 3 For personal use only Re-election of Mr Mark Barnaba AM To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Mark Barnaba be re-elected as a Director of the Company.” Proxy Results FOR AGAINST OPEN TO CHAIR OPEN TO OTHER 2,466,656,469 98,
Slide 40: Election of Ms Penelope Bingham-Hall
Resolution 4 For personal use only Election of Ms Penelope Bingham-Hall To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Penelope Bingham-Hall be elected as a Director of the Company.” Further Information • Ms Bingham-Hall, who has an interest in
Slide 41: Election of Ms Penelope Bingham-Hall: Proxy Results
Resolution 4 For personal use only Election of Ms Penelope Bingham-Hall To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Penelope Bingham-Hall be elected as a Director of the Company.” Proxy Results FOR AGAINST OPEN TO CHAIR OPEN TO OTHER 2,556,54
Slide 42: Election of Ms Jennifer Morris
Resolution 5 For personal use only Election of Ms Jennifer Morris To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Jennifer Morris be elected as a Director of the Company.” Further Information • Ms Morris, who has an interest in the Resolution, ma
Slide 43: Election of Ms Jennifer Morris: Proxy Results
Resolution 5 For personal use only Election of Ms Jennifer Morris To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Jennifer Morris be elected as a Director of the Company.” Proxy Results FOR AGAINST OPEN TO CHAIR OPEN TO OTHER 2,178,269,175 387,00
Slide 44: Participation in the Performance Rights Plan by Ms Elizabeth Gaines
Resolution 6 For personal use only Participation in the Performance Rights Plan by Ms Elizabeth Gaines To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of Listing Rule 10.14 and for all other purposes, Shareholders approve: (a) the g
Slide 45: Performance Rights Plan by Ms Elizabeth Gaines: Proxy Results
Resolution 6 For personal use only Participation in the Performance Rights Plan by Ms Elizabeth Gaines To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of Listing Rule 10.14 and for all other purposes, Shareholders approve: (a) the g
Slide 46: Approval of an increase in fees paid to Non-Executive Directors
Resolution 7 For personal use only Approval of an increase in fees paid to Non-Executive Directors To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 10.17, rule 11.9 of the Constitution and for all other purposes,
Slide 47: Increase in Non-Executive Director fees: Proxy Results
Resolution 7 For personal use only Approval of an increase in fees paid to Non-Executive Directors To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 10.17, rule 11.9 of the Constitution and for all other purposes,
Slide 48: Refresh approval of proportional takeover provisions
Resolution 8 For personal use only Refresh approval of proportional takeover provisions To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That approval of the proportional takeover provisions previously adopted at the 2014 Annual General Meeting and set ou
Slide 49: Proportional takeover provisions: Proxy Results
Resolution 8 For personal use only Refresh approval of proportional takeover provisions To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That approval of the proportional takeover provisions previously adopted at the 2014 Annual General Meeting and set ou
Slide 50: For personal use only
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