Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2012)
26 slides from Fortescue's shareholder meeting presentation, Nov 14, 2012
Slide 1: Annual General Meeting 14th November 2012
For personal use only ANNUAL GENERAL MEETING 14th November 2012
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: Chairman Andrew Forrest
For personal use only CHAIRMAN Andrew Forrest
Slide 4: For personal use only
For personal use only
Slide 5: Chief Executive Officer Nev Power
For personal use only CHIEF EXECUTIVE OFFICER Nev Power
Slide 6: Company overview
For personal use only Company overview
Slide 7: Fortescue, your company
Fortescue, your company World’s 4th biggest seaborne exporter For personal use only Strong culture delivers record results 57.5mt Top 20 ASX listed company record shipped in FY2012 64mtpa Current run rate* 155 mtpa target 12bt resources *as at 30 September 2012
Slide 8: Fortescue Vision and Values
Fortescue Vision and Values The lowest cost, most profitable iron ore producer For personal use only
Slide 9: See our operations in the Pilbara
See our operations in the Pilbara Corporate DVD For personal use only
Slide 10: FY2012 Summary
For personal use only FY2012 Summary
Slide 11: Safety is success
Safety is success Successfully reducing Total Recordable Injury Frequency Rate (TRIFR) For personal use only 16 14.4 12 Month Rolling TRIFR 14 12 Target 10 9.2 8.6 8.2 8.0 7.8 8 6 4 2 0 Feb-13 FY11 FY12 Jul-12 Sep-12 Nov-12 Apr-13 Oct-12 Jun-13 Dec-12 May-13 Jan-13 Aug-12 Mar-13
Slide 12: 2012: A record year
2012: A record year For personal use only 55.8mt Fortescue tonnes shipped up 38% yoy $6.7bn Revenues up 23% yoy $48/wmt C1 average $3bn EBITDA up 14% yoy $1.6bn NPAT up 53% A$0.08 fully franked dividend
Slide 13: Market volatility
Market volatility A defining period in our history For personal use only Iron ore price fell 36% in as many days Quick and decisive response $300m operating cost savings and US$1.6bn capital deferred Kings project and infrastructure deferred On target for 115mtpa by March 2013 Kings and 155mtpa on m
Slide 14: Simplified debt capital structure
Simplified debt capital structure Increased flexibility with new debt maturity schedule For personal use only $5.0 $4.5 $4.0 $3.5 $3.0 NO DEBT REPAYMENT until November 2015 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 CY2012 CY2013 CY2014 CY2015 CY2016 CY2017 CY2018 CY2019 CY2020 CY2021 CY2022 Senior Secured Credi
Slide 15: Keeping Fortescue strong
Keeping Fortescue strong Unique culture is still our key focus For personal use only • Culture galvanised through adversity • Have a Crack! 2700 innovative ideas • Lowest cost production culture • Constantly test new ideas and … never, ever give up!
Slide 16: Our Year Ahead
For personal use only Our Year Ahead
Slide 17: Operations taking us to new levels
Operations taking us to new levels FY2013 is a year of incredible ramp up For personal use only 192mt Christmas Creek 2 ramping up 95mtpa shipped since 2008 run rate December 2012 20mtpa 115mtpa 155mtpa Firetail March 2013 run rate March 2013 target
Slide 18: Quarterly milestone calendar
Quarterly milestone calendar Forging ahead For personal use only 115mtpa run rate Christmas Creek 2nd OPF JUN QTR SEP QTR 2013 MAR QTR DEC QTR 2013 Solomon Firetail Train unloaders
Slide 19: Market Overview
For personal use only Market Overview
Slide 20: Strong rebounds follow price drops
For personal use only $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Strong rebounds follow price drops Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 History shows price volatility Feb-12 Mar-12 Apr-12 Iro
Slide 21: Long term confidence in China
Long term confidence in China Lower growth rates but still strong in absolute volumes For personal use only • Strong underlying economy with over 7% GDP growth • New generation of leaders committed to growth • Urbanisation and infrastructure driving steel demand • Targeted infrastructure stimulus pa
Slide 22: Moving down the global cost curve
Moving down the global cost curve Targeting bottom quartile For personal use only 200 Domestic Chinese Ore Australia Brazil US$/dry tonne CFR equivalent India 150 South Africa Other Firetail & Kings to reset the cost base 100 50 0 0 100 200 300 400 500 600 700 800 900 1,000 Cumulative mt (wet, as de
Slide 23: Supporting the community
Supporting For personal use only the community
Slide 24: Making a difference
Making a difference For personal use only VTEC is changing lives through training and employment 420 Direct Aboriginal employees 10.4% Aboriginal workforce Aboriginal people employed 517 by contractors Contracts to Aboriginal $550m companies VTEC South Hedland and Roebourne Information as at 30 Sept
Slide 25: Thanks for your support
Building one of the world’s For personal use only great resources companies Thanks for your support
Slide 26: Proudly supporting
For personal use only Proudly supporting: Sign up to alerts online: www.fmgl.com.au
Fortescue Metals Group — Shareholder Meeting (November 2012) on 6ix