Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2021)
43 slides from Fortescue's shareholder meeting presentation, Nov 9, 2021
Slide 1: Presentation – Annual General Meeting 2021 (ASX cover letter)
For personal use only 9 November 2021 The Companies Officer Australian Securities Exchange Ltd Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000 Dear Madam or Sir PRESENTATION – ANNUAL GENERAL MEETING 2021 Fortescue Metals Group Ltd (Fortescue, ASX: FMG) advises that Chairman, Dr Andre
Slide 2: Fortescue Metals Group Ltd Annual General Meeting
For personal use only Fortescue Metals Group Ltd Annual General Meeting Tuesday, 9 November 2021 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: Elizabeth Gaines, Chief Executive Officer
For personal use only Elizabeth Gaines Chief Executive Officer 3
Slide 5: Journey to zero harm
Journey to For personal use only zero harm Unwavering focus on the health, safety and wellbeing of the entire Fortescue family 2.0 TRIFR at 30 September 2021 Safety culture Empowered to take control and look out for our mates 99% participation Safety Excellence and Culture Survey 4
Slide 6: A safe and supportive workplace
A safe and supportive For personal use only Zero tolerance approach to bullying, workplace harassment or intimidation Strong culture Built on integrity and respect Workplace Integrity Review Engaging with Fortescue workforce and contractors to understand views Speak Up Empowering team members to rep
Slide 7: Approach to sustainability
Approach to sustainability For personal use only Ensuring communities benefit from Fortescue’s success 6
Slide 8: Sustainability Financing Framework
Sustainability For personal use only Financing Strong ongoing commitment to Framework environmental, social and governance leadership Sustainable finance Growth in sustainable, green and social sources of capital Financing framework Aligned with sustainability strategy and climate change objectives
Slide 9: Setting high standards
Setting high standards For personal use only A focus on building a diverse workforce that is reflective of our community 21% female Employment rate 25% female Employed in senior leadership roles 14% Aboriginal Employment rate across Pilbara operations 8
Slide 10: Preserving Aboriginal heritage
Preserving For personal use only Aboriginal Working with Native Title Partners heritage to manage Aboriginal heritage responsibly and sustainably Seven agreements With Native Title Groups >6,000 heritage sites Protected and avoided Co-management framework Collaborating with Eastern Guruma people to
Slide 11: 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 Billion Opportunities > A$3.5 billion in contracts awarded to Aboriginal businesses a
Slide 12: Industry leader in addressing climate change
Industry leader in For personal use only addressing climate change Carbon neutral by 2030 Clear short term priorities on pathway to decarbonisation Scope 3 emissions Net zero by 2040, addressing emissions across global value chain Stationary energy Energy infrastructure supporting incorporation of l
Slide 13: Fortescue Future Industries
Fortescue For personal use only Future Industries 100 per cent renewable energy and green industry company Enabling 2030, 2040 targets Investing in decarbonisation technologies Supplier of green energy New energy business Assessing global portfolio of renewable energy and green industry opportunitie
Slide 14: Emissions reduction pathway
Emissions For personal use only reduction Investing in renewables and decarbonisation technologies pathway 13
Slide 15: FY21 highlights
FY21 highlights For personal use only 182.2 mt US $13.93 /wmt Record annual shipments Industry leading C1 cost 2% increase on FY20 US $135 /dmt US $10.3 bn Average revenue Net profit after tax 72% increase on FY20 US $16.4 bn US $3.35 Underlying EBITDA Earnings per share (A$4.48) 96% increase on FY2
Slide 16: Q1 FY22 highlights
Q1 FY22 For personal use only highlights Record first quarter shipments and strong cost management 45.6 mt $15.25 /wmt US Record first quarter C1 cost shipments US $118 /dmt US $175 million Average revenue Net debt 15
Slide 17: Strong demand for Fortescue products
Strong demand for Fortescue products For personal use only Dynamic market resulting in increased price volatility Monthly global crude steel production (mt) 110 Steel prices Supported by strong demand 100 90 Global crude steel production 80 Up 8% in the nine months to 30 September 2021 70 60 Iron or
Slide 18: 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 19: Iron Bridge
Iron Bridge For personal use only Strategic investment providing enhanced product range to meet customer demand US$3.3 – US$3.5bn Capital estimate 67% Fe High grade magnetite concentrate 22 mpta First production by December 2022 US$33 – US$38/wmt Competitive C1 cost 18
Slide 20: Iron Bridge progress
Iron Bridge progress For personal use only Delivery of large modules to Iron Bridge Construction of the ore processing facility 19
Slide 21: Delivering dividends
Delivering For personal use only dividends Fully franked dividend of A$3.58 per share, representing a 80 per cent payout of FY21 NPAT Dividends (A$/share) and payout ratio (%) 4.50 90% 78% 80% 4.00 77% 80% 3.58 3.50 70% 62% 3.00 60% 52% 2.50 50% 38% 36% 2.00 1.76 40% 1.50 30% 21% 21% 1.14 1.00 17% 1
Slide 22: FY22 guidance
FY22 For personal use only guidance Iron ore shipments 180 – 185 mt C1 cost / wmt US$15.00 - $15.50 Capital expenditure, excluding FFI US$2.8 - $3.2 billion FFI expenditure US$400 - $600 million 21
Slide 23: Values
Safety Integrity Family Enthusiasm Empowerment Courage and determination Frugality Generating ideas Stretch targets Humility Thriving Communities | Global force
Slide 24: Dr Andrew Forrest AO, Founder and Chairman
For personal use only Dr Andrew Forrest AO Founder and Chairman 23 23
Slide 25: Fortescue pioneers
For personal use only pioneers Fortescue 24
Slide 26: Pioneering philanthropy
For personal use only Pioneering philanthropy 25
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Slide 32: Future Says
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Slide 35: Plastic Waste Makers Index
For personal use only Plastic Waste Makers Index 34
Slide 36: Fortescue Future Industries
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Slide 37: Offtake
For personal use only Offtake 36
Slide 38: Ramping up production
For personal use only Ramping up Pioneering philanthropy production 37
Slide 39: Retrofitting the future
For personal use only Retrofitting the future 38
Slide 40: Fortescue Future Industries
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Slide 41: Scope 3 emissions
For personal use only Scope 3 emissions 40
Slide 42: 2022
For personal use only 2022 41
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