Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Macquarie Australia Conference 2022
22 slides from Fortescue's conference presentation, May 4, 2022
Slide 1: Presentation – Macquarie Australia Conference 2022
For personal use only 4 May 2022 PRESENTATION – MACQUARIE AUSTRALIA CONFERENCE 2022 Fortescue Metals Group Ltd (Fortescue, ASX: FMG) advises that Elizabeth Gaines, Chief Executive Officer is presenting at the Macquarie Australia Conference 2022 on Wednesday, 4 May 2022. A copy of the presentation is
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference Elizabeth Gaines 4 May 2022 Thriving communities | Global force 100-TE-AD-0016_0 1
Slide 3: Forward Looking Statements Important Notice Disclaimer
Forward For personal use only Looking Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd Statements (“Fortescue”). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation
Slide 4: Transitioning to a vertically integrated green energy and resources company
Transitioning to a vertically integrated For personal use only green energy and resources company Thriving communities | Global force 3
Slide 5: Integrated mine to market infrastructure
Integrated mine to market infrastructure For personal use only 4
Slide 6: Safety and unique culture
Safety and unique culture For personal use only Unwavering focus on health and safety of the Fortescue family Total Recordable Injury Frequency Rate 9.2 7.6 6.0 5.1 4.3 3.7 2.9 2.8 2.4 2.0 1.8 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 H1 FY22 5
Slide 7: March 2022 quarter highlights
March 2022 For personal use only quarter highlights 1.8 TRIFR US $100 /dmt 18% improvement from Average revenue 2.2 at 31 March 2021 70% of Platts 62% CFR Index 46.5 mt shipped US $15.78 /wmt 10% higher than Q3 FY21 C1 cost US$15.45 /wmt YTD US $2.4 bn US $1.5 bn Net debt Offering of Senior Notes co
Slide 8: H1 FY22 financial highlights
H1 FY22 financial For personal use only highlights US $8.1 bn 59% Revenue Underlying EBITDA margin US $4.8 bn US $58 /dmt Underlying EBITDA Underlying EBITDA per tonne1 US $2.8 bn A $0.86 per share Net profit after tax Fully franked interim dividend 1 Underlying EBITDA per tonne excludes FFI expendi
Slide 9: Marketing strategy
Marketing strategy For personal use only Aligned with needs of customers and market Direct engagement Customers and stakeholders Flexible and innovative Product and logistics offering Long term relationships Product suite Aligns with needs of the market 8
Slide 10: Iron ore market
Iron ore market For personal use only CY22 economic growth targets to support steel demand CrudeSteel Crude Steel Production Production(mt) (mt) China GDP growth 110 target: 5.5% YoY 100 Policy setting support growth targets 90 Rest of world 80 Steel production recovered to pre- 70 pandemic levels 6
Slide 11: Eliwana operations
Eliwana operations For personal use only Ramp up and integration of Eliwana contributed to record performance in FY21 First ore Achieved in December 2020 30 mtpa dry OPF Running at annualised rate of production Low capital intensity Fast payback on investment 143km rail First east-west line through
Slide 12: Iron Bridge
Iron Bridge For personal use only Strategic investment providing enhanced product range 22 mtpa First production in the March 2023 quarter 67% Fe High grade magnetite concentrate US$3.6 – US$3.8 bn Capital estimate US$2.7 – US$2.9 bn Fortescue’s share 11
Slide 13: Approach to sustainability
Approach to sustainability For personal use only Ensuring communities benefit from Fortescue’s success 12
Slide 14: Sustainability performance
Sustainability performance For personal use only Recognised as a global leader in sustainability Gold Class Sustainability Award in 2022 S&P Global Sustainability Yearbook Included in the Australian, Asia-Pacific and World Dow Jones Indices for third year TCFD aligned climate-related reporting Leadi
Slide 15: Creating positive social change
Creating positive For personal use only social change Empowering thriving communities and creating opportunities through training, employment and business development > A$63 million Social investment in communities (FY21) Billion Opportunities > A$3.5 billion in contracts awarded to Aboriginal busin
Slide 16: Industry leader in addressing climate change
Industry leader in addressing climate For personal use only change Carbon neutrality by 2030 Clear priorities on decarbonisation pathway Net zero Scope 3 emissions by 2040 Addressing emissions across the value chain Green fleet development Heavy industry decarbonisation initiatives Stationary energy
Slide 17: Fortescue Future Industries
Fortescue For personal use only Future Green energy and green technology Industries company Enabler of decarbonisation targets Investing in decarbonisation technologies Supplier of green energy New energy business Assessing global portfolio of renewable energy and green industry opportunities Capita
Slide 18: Williams Advanced Engineering
Williams Advanced For personal use only Leading provider of high-performance battery Engineering and electrification technologies Demonstrated track record of success in advanced engineering across the premium automotive and motorsports sectors Enabling Fortescue’s decarbonisation Critical technolog
Slide 19: Decarbonisation progress
Decarbonisation progress For personal use only Leading the world effort to decarbonise hard to abate sectors Haul trucks • Developed hydrogen powered haul truck prototype • Prototype battery electric power system under development Drill rigs • Design of hydrogen powered drill rig prototype Rail • Su
Slide 20: FY22 guidance
FY22 guidance For personal use only 185 – 188 mt Iron ore shipments US $15.75 – US $16.00 /wmt C1 cost US $3.0 – $3.2 bn US Capital expenditure, excluding Fortescue Future Industries C1 cost and capital expenditure is based on an assumed FY22 average exchange rate of AUD:USD 0.73 19
Slide 21: Fortescue values
Safety Integrity Family Enthusiasm Empowerment Courage and determination Frugality Generating ideas Stretch targets Humility Thriving Communities | Global force
Slide 22: For personal use only
For personal use only 21
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