Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — FY2010 Earnings Presentation
16 slides from Fortescue's earnings presentation, Aug 26, 2010
Slide 1: Full Year Results – June 2010
For personal use only Full Year Results – June 2010 26th August 2010
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("Fortescue"). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation. This presentat
Slide 3: FY2010 Highlights
FY2010 Highlights For personal use only • Record underlying EBITDA of US$1,288m; +129% • Cash flow from operating activities of US$1,107m; +134% • Cash reserves of US$1,235m with increasing net assets • Reduction in Lost Time Injury Frequency Rate of 65% • Strengthening Balance Sheet sets platform f
Slide 4: Financial Highlights – Income Statement
Financial Highlights – Income Statement For personal use only US$m FY10 FY09 Fortescue Tonnes Shipped (millions - wmt)1 38.9 27.3 Average CFR price (US$/dmt) 88.38 80.02 Total Revenue2 3,285 1,858 Cost of goods sold3 (1,973) (1,262) Re-estimation of Leucadia (280) 1,124 Net foreign exchange gain/(lo
Slide 5: Underlying EBITDA Bridge
Underlying EBITDA Bridge For personal use only Volume and price the key drivers
Slide 6: Underlying EBITDA and Earnings
Underlying EBITDA and Earnings For personal use only US$m FY10 FY09 Underlying EBITDA 1,288 562 Re-estimation of Leucadia (280) 1,124 Net foreign exchange 99 (454) Statutory EBITDA 1,107 1,232 Underlying earnings before tax 760 (8) Re-estimation of Leucadia (280) 1,124 Net foreign exchange 99 (454)
Slide 7: Revenue & Earnings
Revenue & Earnings For personal use only Sales Revenue Underlying EBITDA 3,500 1,400 3,000 1,200 ) 2,500 ) 1,000 D S D S U ( U ( s 2,000 s 800 n n io lli io lli M 1,500 M 600 1,000 400 500 200 0 0 2008 2009 2010 2008 2009 2010
Slide 8: Key Indicators
Key Indicators For personal use only CFPS EPS 0.40 30.00 0.30 20.00 10.00 0.20 ) ) D 0.00 D S S 0.10 U ( (10.00) U ( 0.00 sr st t (20.00) n n e ‐0.10 e C C (30.00) ‐0.20 (40.00) (50.00) ‐0.30 (60.00) ‐0.40 2008 2009 2010 2008 2009 2010 ROE 60% 40% 20% 0% ‐20% ‐40% ‐60% ‐80% ‐100% ‐120% 2008 2009 201
Slide 9: Subordinated Loan Note (Leucadia)
Subordinated Loan Note (Leucadia) For personal use only US$m FY10 FY09 Balance sheet value 826 382 Re-estimation - Income statement (280) 1,124 Effective interest expense (165) (259) • Unsecured subordinated instrument with face value of US$100m • Interest calculated at 4% of revenue net of royaltie
Slide 10: Foreign Exchange
Foreign Exchange For personal use only FY10 FY09 A$/US$ Closing Rate 0.8523 0.8114 Net forex gain/(loss) – US$m 99 (454) • Fortescue adopted US Dollar as functional currency on 1 January 2009 to reflect primary economic environment • Change to US$ reduces impact of currency volatility particularly r
Slide 11: Tax
Tax For personal use only US$m FY10 Income Tax Position: Tax on accounting profit at 30% (173) Currency translation of tax base 62 Prior year tax losses recognised 83 Other 30 Income tax benefit 2 Tax Losses: Utilisation of tax losses against taxable income (568) Tax losses available for future util
Slide 12: Cash Flow Statement
Cash Flow Statement For personal use only US$m FY10 FY09 Profit for the year 581 508 Add back: Depn and amortisation 153 89 Add back: Re-estimation Leucadia 280 (1,124) Add back: Other non-cash items 93 1,000 Cash inflow from operating activities 1,107 473 Exploration and development (178) (417) Cap
Slide 13: Balance Sheet
Balance Sheet For personal use only US$m FY10 FY09 Cash 1,235 655 PP&E, intangibles, development and exploration 3,476 3,102 Other assets 593 440 Total assets 5,304 4,197 Leucadia note (826) (382) Senior secured note (2,029) (2,074) Preference shares (120) (115) Other liabilities (852) (775) Total L
Slide 14: Investing Activities Cashflow
Investing Activities Cashflow For personal use only Cash Flow (US$m) FY10 Christmas Creek Capex 91 Development 104 Total Christmas Creek 195 Cloudbreak Capex 194 Development 56 Total Cloudbreak 250 General Expansion Capex *1 120 Exploration and Evaluation 17 Total Development, PPE Expenditure and Ex
Slide 15: Forging Ahead
Forging Ahead For personal use only • Current September Quarter 2010 production on target for ~9.5Mt shipped with both scheduled plant shutdowns completed on time. • Christmas Creek expansion on budget and on schedule for March Quarter 2011 commissioning. • Target 55Mtpa run rate scheduled for June
Slide 16: For personal use only
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