Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (November 2019)
22 slides from Fortescue's investor presentation, Nov 27, 2019
Slide 1: Technology and innovation driving growth at Fortescue
For personal use only Technology and innovation driving growth at Fortescue Elizabeth Gaines, CEO 27 November 2019
Slide 2: Important Notice
Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Limited ("Fortescue"). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation. This presentation contains certain statemen
Slide 3: A world class company
For personal use only A world class company >1.3 billion ~170mtpa Shipped Wholly owned, fully integrated supply chain Core supplier Low cost to China producer 3
Slide 4: FY19: a record year
FY19: a record year For personal use only Underpinned by record safety performance US 167.7million tonnes Shipped $6.0 billion Underlying EBITDA US $3.2 billion US $13.11/wmt Net profit after tax (NPAT) C1 cost US A $2.1billion $1.14 per share Net debt Total FY19 paid dividend 6
Slide 5: A strong start to FY20
A strong start to FY20 For personal use only First quarter of FY20 builds on record results in FY19 Safety 2.7 42.2mt Total Recordable Injury Frequency Rate Shipments for the quarter US$12.95/wmt US $85/dmt C1 costs Average revenue received US$3.4 billion US$0.5 billion Cash on hand Net debt 7
Slide 6: Investment in growth
Investment in growth For personal use only Unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara 8
Slide 7: Resources sector: Australia's economic powerhouse
Resources sector: Australia’s economic powerhouse For personal use only Underpinning the first current account surplus in 44 years WA exports WA GSP Accounts for 43% of Australian exports* 14% of Australia’s Gross Domestic Product* China Australian exports Represents 50% of WA’s export market* Minin
Slide 8: Building strong relationships with China
Building strong relationships with China For personal use only WA companies have forged strong connections with China Supplier Investment and First shipment to China in 2008 financing arrangements Procurement Academic, policy and Over US$1 billion procurement from China social engagement 10
Slide 9: Global steel production
Global steel production For personal use only China produces 51 per cent of global steel Global Share of Iron Ore Exports (2018) Share of World Crude Steel Production (2018) 12% 24% 3% 3% 4% 51% 53% 9% 25% 6% 6% 4% Australia Brazil South Africa Canada Ukraine Rest of World China South Korea India Ja
Slide 10: We are innovators
For personal use only We are innovators 12
Slide 11: Automated mining
Automated mining For personal use only Innovation delivering safety and productivity improvements AHS operation Autonomous drills >37 million km safely travelled 8 drills in operation AHS conversion Remote operations 147 trucks in operation Integrated operations centre 13
Slide 12: Sustainable low cost producer
Sustainable low For personal use only cost producer Industry leading cost position C1 US$/wmt 60 Structural improvements 50 Solomon + blending + processing 48 40 44 Productivity and efficiency 30 34 Utilisation, recoveries, maintenance 20 27 10 15 Innovation and technology 13 12 13 12.95 Autonomy, c
Slide 13: Energy strategy
Energy strategy For personal use only Innovative and practical initiatives managing emissions and cost of supply Gas opportunities Automation Displacing diesel using gas as a Offsetting haul distance, reducing transition fuel fleet requirements Relocatable conveyor Hydrogen Reducing haulage distance
Slide 14: Ambition for hydrogen
Ambition For personal use only for hydrogen Hydrogen is part of a broader energy strategy Technology Our operations Research, study and commercialise Reduce carbon footprint and cost of energy Domestic industry Global supply chain Develop, partner or participate in Supporting export of green hydroge
Slide 15: Chichester Solar
Chichester Solar For personal use only Gas Hybrid 100 per cent of daytime stationary energy requirements at Fortescue’s Chichester Hub will be powered by renewable energy 60MW solar pv 60-kilometre generation facility transmission line Displace around 100 Pilbara Energy million litres of diesel Conn
Slide 16: Safety culture
Safety culture For personal use only Beyond equipment Communities and technology Aboriginal engagement Empowering our people to deliver practical solutions Diversity 18
Slide 17: For personal use only
For personal use only 19
Slide 18: For personal use only
For personal use only 20
Slide 19: Training at the heart of what we do
Training at the heart of what we do For personal use only Empowering our people to be successful AHS Training Over 3,000 people trained in autonomy Successful retraining Career transition and opportunities VTEC and Trade Up Training for a guaranteed job and providing pathways to an apprenticeship 21
Slide 20: A State of innovators
A State of innovators For personal use only Delivering for West Australian and national economies World leader Renewable energy in safety Increased connectivity, new industry Automation Workforce of Receiving global recognition, space industry the future 22
Slide 21: Fortescue's Values
ae > a om ~ J Our 7 } atd he f\ e °@ - Ni S re] n 7 << 4 Renesas ~The safest, lowest “cost, most profitable / ¢ } | f it —nining company. S (©) “Fortescue’s Values =e
Slide 22: Fortescue
Fortescue ‘Xgio ogni : oe
Fortescue Metals Group — Investor Presentation (November 2019) on 6ix