Fortescue Ltd · ASX:FMG
Fortescue — Shareholder Meeting (November 2023)
57 slides from Fortescue's shareholder meeting presentation, Nov 21, 2023
Slide 1: Presentation – 2023 Annual General Meeting
21 NOVEMBER 2023 PRESENTATION – 2023 ANNUAL GENERAL MEETING Fortescue Metals Group Ltd (Fortescue, ASX: FMG) advises that Executive Chairman, Dr Andrew Forrest AO, Fortescue Energy Chief Executive Officer, Mark Hutchinson, and Fortescue Metals Chief Executive Officer, Dino Otranto, are addressing sh
Slide 2: 2023 Annual General Meeting: We are Fortescue
For personal use only 2023 Annual General Meeting We are Fortescue 21 NOVEMBER 2023 © 2023 FORTESCUE FORTESCUE | 1
Slide 3: Forward Looking Statements and Important Notice
Forward Looking Statements Important Notice For personal use only The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd and its subsidiaries (“Fortescue”). It is not recommended that any person makes any investment Disclaimer decision in relation to Fort
Slide 4: Welcome to Country
For personal use only Welcome to Country Freda Ogilvie FORTESCUE | 3
Slide 5: Dr Andrew Forrest AO, Executive Chairman and Founder
For personal use only Dr Andrew Forrest AO Executive Chairman and Founder FORTESCUE | 4
Slide 6: Exploration team 2005
Exploration team 2005 For personal use only FORTESCUE | 5
Slide 7: Turning of first sod 2007
Turning of first sod 2007 For personal use only FORTESCUE | 6
Slide 8: Flying Fish 2008
Flying Fish 2008 For personal use only FORTESCUE | 7
Slide 9: Iron Bridge 2008
Iron Bridge 2008 For personal use only FORTESCUE | 8
Slide 10: First ore on ship 2008
First ore on ship 2008 For personal use only FORTESCUE | 9
Slide 11: Years of Fortescue
20 years of Fortescue For personal use only FORTESCUE | 10
Slide 12: Highest Total Shareholder Return of any company listed on the ASX
Highest Total Shareholder Return of any company For personal use only listed on the ASX A$35bn in dividends since its inception Paid to shareholders Near A$80bn business Top 10 ASX listed company A$8.2bn Underlying NPAT* In FY23 A$26bn in FY23 Global economic contribution *Australian dollar Underlyi
Slide 13: First ore shipped in 2008
For personal use only First ore shipped in 2008 192 million tonnes in FY23 Over 23,000 Sydney Harbour Bridges* *Equivalent to, assuming 57% Fe FORTESCUE | 12
Slide 14: Third largest Australian taxpayer
For personal use only Third largest Australian taxpayer A$102m Social investment contribution in FY23 A$4.6bn in contracts awarded to First Nations businesses since 2011* *Through Fortescue’s Billion Opportunities program FORTESCUE | 13
Slide 15: For personal use only
For personal use only FORTESCUE | 14
Slide 16: For personal use only
For personal use only FORTESCUE | 15
Slide 17: For personal use only
For personal use only FORTESCUE | 16
Slide 18: For personal use only
For personal use only FORTESCUE | 17
Slide 19: For personal use only
For personal use only FORTESCUE | 18
Slide 20: Hottest figures
Hottest figures For personal use only 1.5°C Threshold for dangerous warming 4 months in 2023 Already at or above 1.5°C 2023 Hottest year in 100,000 years FORTESCUE | 19
Slide 21: First time our planet was 2°C warmer than pre-industrial times
Last Friday: First time our planet was 2°C warmer than in pre-industrial times For personal use only FORTESCUE | 20
Slide 22: Lethal Humidity and Positive Power Plan
Lethal Humidity and Positive Power Plan For personal use only Climate crisis Biggest health threat facing humanity Lethal Humidity Wired for heat, not heat AND humidity Driving policy change Government to work with us, not against us FORTESCUE | 21
Slide 23: For personal use only
For personal use only FORTESCUE | 22
Slide 24: Green energy and decarbonisation
Green energy and decarbonisation For personal use only Major opportunity Savings, new revenue streams, protection from carbon pricing Practical plan For leaders to incentivise green energy projects Accelerate action On the climate crisis FORTESCUE | 23
Slide 25: For personal use only
For personal use only FORTESCUE | 24
Slide 26: Governments are moving and pricing carbon
Governments are moving and pricing carbon For personal use only Carbon border tax Will be introduced by UK in 2026 Levy on polluting goods Carbon Border Adjustment Mechanism (CBAM) Chain reaction Inevitable in every country including Australia FORTESCUE | 25
Slide 27: For personal use only
For personal use only FORTESCUE | 26
Slide 28: Focused on becoming the number one integrated green technology, energy and metals company
For personal use only Focused on becoming the number 1 integrated green technology, energy and metals company FORTESCUE | 27
Slide 29: Annual investment 2015-2023
Annual investment 2015-2023 For personal use only 2 ERG Y N EN CLEA TRILLION USD (2022) FOSSIL FUELS 1 0 2018 2020 2022 Source: https://www.iea.org/data-and-statistics/charts/annual-investment-in-fossil-fuels-and-clean-energy-2015-2023 FORTESCUE | 28
Slide 30: This will bring even more value to you, our shareholders
For personal use only This will bring even more value to you, our shareholders FORTESCUE | 29
Slide 31: Mark Hutchinson, CEO, Fortescue Energy
For personal use only Mark Hutchinson CEO, Fortescue Energy FORTESCUE | 30
Slide 32: Global energy transition
Global energy transition For personal use only We thrive on Stretch Targets Stepping beyond fossil fuels forever Developing green electrons, green molecules and green technology FORTESCUE | 31
Slide 33: We are doing this because of the value it brings to you
For personal use only We are doing this because of the value it brings to you. But we also doing this because the world needs us to. FORTESCUE | 32
Slide 34: For personal use only
For personal use only FORTESCUE | 33
Slide 35: Fortescue Energy
Fortescue Energy For personal use only Green energy business Green technology business Green capital business FORTESCUE | 34
Slide 36: Alternative to fossil fuels
Alternative to fossil fuels For personal use only Green hydrogen Will allow the world to transport energy generated by the sun, the wind and water Completely green Made from green energy and water We can sell it locally To the transport sector or convert it to green ammonia and send anywhere in the
Slide 37: Green hydrogen production
Green hydrogen production For personal use only FORTESCUE | 36
Slide 38: Electrolysis
Electrolysis For personal use only FORTESCUE | 37
Slide 39: Domestic use or export
Domestic use or export For personal use only FORTESCUE | 38
Slide 40: Phoenix, USA
Phoenix, USA For personal use only Phoenix, USA Establishes Fortescue in one of the most attractive green energy markets in the world 80MW liquid green hydrogen facility Electrolyser and liquification plant capable of producing up to 30 tonnes per day Ample land and access to resources for potential
Slide 41: Gladstone PEM50
Gladstone PEM50 For personal use only Proton Exchange Membrane Fortescue Hydrogen Systems Pathway to control supply chain Global manufacturers industrial scale hydrogen 30MW production capacity Additional 20MW is expected to be commissioned in 2028 FORTESCUE | 40
Slide 42: Gladstone Electrolyser Facility
Gladstone Electrolyser Facility • Manual production underway • Automated manufacturing in 2024 For personal use only FORTESCUE | 41
Slide 43: Energy projects
Energy projects For personal use only FORTESCUE | 42
Slide 44: First mover advantage
First mover advantage For personal use only Realise the value of the green energy transition US$1 trillion per year industry* As big as the entire fossil fuel market *According to Goldman Sachs FORTESCUE | 43
Slide 45: Green technology
Green technology For personal use only One of the world’s most advanced battery systems Decarbonise our mining operations to Real Zero by 2030 Developed our own PEM electrolyser technology FORTESCUE | 44
Slide 46: Fortescue Capital
Fortescue Capital For personal use only Fiduciary for third-party capital Raise funds in asset management Expertise in capital formation and investment management FORTESCUE | 45
Slide 47: For personal use only
For personal use only FORTESCUE | 46
Slide 48: Dino Otranto, CEO, Fortescue Metals
For personal use only Dino Otranto CEO, Fortescue Metals FORTESCUE | 47
Slide 49: Focus on shareholder returns
For personal use only Focus on shareholder returns Proven track record Robust balance sheet Stretch targets FORTESCUE | 48
Slide 50: Celebrating years
For personal use only Celebrating 20 years Since we were founded in 2003 Fourth largest iron ore miner 2 billion tonnes of iron ore shipped Near A$80bn business Market capitalisation Industry leading C1 cost US$17.54/wmt in FY23 FORTESCUE | 49
Slide 51: FY23 iron ore production highlights
FY23 iron ore production highlights For personal use only 1.8 TRIFR Total Recordable Injury Frequency Rate 192mt Fourth consecutive year of record shipments 192 – 197mt FY24 guidance iron ore shipments FORTESCUE | 50
Slide 52: Unlocking value at Iron Bridge
Unlocking value at Iron Bridge For personal use only Unique process flow Four international and national patents High grade product New market segment Decarbonisation Targeting Real Zero by 2030 FORTESCUE | 51
Slide 53: Commissioning and ramp up
Commissioning and ramp up For personal use only Successful Technical commissioning Staged Mechanical commissioning 24 months Ramp up to full production (from August 2023) FORTESCUE | 52
Slide 54: Belinga Iron Ore Project, Gabon
Belinga Iron Ore Project, Gabon For personal use only Exploration Exploration drilling campaign underway Studies advancing for a potential large-scale development Early stage development Mining commenced First shipment December 2023 FORTESCUE | 53
Slide 55: Eliminating emissions
Eliminating emissions For personal use only Real Zero by 2030* Scope 1 and 2 terrestrial emissions target across Fortescue’s Australian iron ore operations Net Zero Scope 3 Emissions targeted by 2040 Decarbonisation plan Costed plan to eliminate fossil fuels *As outlined in Fortescue's FY23 Climate
Slide 56: Decarbonising our mining fleet
Decarbonising our mining fleet For personal use only Battery electric haul truck Prototype currently undergoing testing 500km of transmission lines Via Pilbara Energy Connect 100MW solar farm Commissioning underway FORTESCUE | 55
Slide 57: We are Fortescue: values
For personal use only We are Safety Integrity Fortescue Family Enthusiasm Empowerment Courage and determination Frugality Generating ideas Stretch targets Humility FORTESCUE | 56