Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (October 2019)
34 slides from Fortescue's shareholder meeting presentation, Oct 29, 2019
Slide 1: Fortescue Metals Group Annual General Meeting
For personal use only Fortescue Metals Group Annual General Meeting Tuesday, 29 October
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: Cameron Wilson, Company Secretary
For personal use only Cameron Wilson Company Secretary 3
Slide 4: Elizabeth Gaines, Chief Executive Officer
For personal use only Elizabeth Gaines Chief Executive Officer 4
Slide 5: Andrew Forrest AO, Founder and Chairman
For personal use only Andrew Forrest AO Founder and Chairman 5
Slide 6: Elizabeth Gaines, Chief Executive Officer
For personal use only Elizabeth Gaines Chief Executive Officer 6
Slide 7: Safety and unique culture
Safety and unique culture For personal use only 2.8 TRIFR Total Recordable Injury Frequency Rate 24% Improvement compared to June 2018 Tailings storage Management, monitoring, auditing and disclosure 8
Slide 8: FY19 Highlights
FY19 Highlights For personal use only 167.7 million tonnes US$6.0 billion Shipped Underlying EBITDA US$3.2 billion US$13.11/wmt Net profit after tax (NPAT) C1 cost US$2.1billion A$1.14 per share Net debt Total FY19 dividends paid 9
Slide 9: 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 10
Slide 10: Increasing shareholder returns
Increasing shareholder returns For personal use only A$0.24 A$1.14 per share per share Fully franked final dividend paid Total FY19 dividends paid in October 78% of FY19 NPAT Share buy-back A$139m completed, extended Dividend pay-out ratio to October 2020 11
Slide 11: Capital allocation
Capital allocation For personal use only Disciplined allocation to capital investment and shareholder returns US$m 15,000 11,000 7,000 3,000 -1,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Debt Repayment Dividends NPAT 12
Slide 12: Direct customer engagement driving deep market insights
For personal use only Direct customer engagement driving deep market insights Integrated operations Co-location of key decision makers enabling rapid and response to market trends marketing Agile product mix adjustments to meet customers’ needs Collaborative operations and marketing to optimise mark
Slide 13: Fully integrated supply chain
Fully integrated supply chain For personal use only Supported by a culture of innovation 14
Slide 14: 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 16
Slide 15: Eliwana project
Eliwana project For personal use only US$1.275 billion capital investment Progressing on schedule and budget Infrastructure Latest technology 143km rail; 30mtpa dry OPF Driving low cost operation First ore on train West Pilbara Fines December 2020 Increasing production and mine life 17
Slide 16: Iron Bridge Magnetite Project
Iron Bridge Magnetite Project For personal use only US$2.6 billion investment delivering enhanced returns to shareholders and JV partners 22 mpta 67% Fe First ore scheduled mid-2022 Low impurity premium product Low capital Energy efficient intensity and operating cost Industry leading, proven design
Slide 17: World class exploration
World class exploration For personal use only Opportunities driven by market demand Pilbara Largest tenement holder Australia NSW ~3,000km2 tenure SA ~15,000km2 tenure South America Ecuador, Argentina Colombia 19
Slide 18: Building strong relationships with China
Building strong relationships with China For personal use only WA companies have forged strong connections with China Major supplier Investment and financing of iron ore to China relationships Over US$1billion in Academic, policy and procurement from China community engagement 20
Slide 19: Communities benefit from our growth and development
For personal use only Communities Setting high benefit from standards our growth and Safeguarding the environment development Creating positive social change 21
Slide 20: Safeguarding the environment
Safeguarding the environment For personal use only For future generations Australia’s Paris UN Framework Convention Agreement commitment on Climate Change Taskforce on Climate-related Voluntary short term Financial Disclosure reporting target and long term goal 22
Slide 21: Practical initiatives and innovative solutions
Practical initiatives and innovative solutions For personal use only 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 distances, Par
Slide 22: Chichester Solar Gas Hybrid
Chichester Solar Gas Hybrid For personal use only 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 Connect million litres of die
Slide 23: Our Vision and Fortescue's Values
“ar « Our ra , = ’ Kec “Vision =~ ane vote <The safest, lowest =, ~ / 5 “cost, most profitable | yy } mining company. >... A RR Gee v EY (©) “Fortescue’s Values ee
Slide 24: Andrew Forrest AO, Founder and Chairman
For personal use only Andrew Forrest AO Founder and Chairman 30
Slide 25: Delivering outstanding results
Delivering outstanding results For personal use only 31
Slide 26: Global scale operations
Global scale operations For personal use only 32
Slide 27: Your team
For personal use only Your team 33
Slide 28: Your Board
For personal use only Your Board 34
Slide 29: Energy and autonomy
Energy and autonomy For personal use only 35
Slide 30: For personal use only
For personal use only 36
Slide 31: Sea The Future
Sea The Future atts w Fortescue
Slide 32: Protecting human rights
Protecting human rights For personal use only 40
Slide 33: Ready for 2020
For personal use only Ready for 2020 41
Slide 34: For personal use only
For personal use only
Fortescue Metals Group — Shareholder Meeting (October 2019) on 6ix