Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Macquarie Australia Conference 2020
20 slides from Fortescue's conference presentation, May 5, 2020
Slide 1: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 5 May 2020 Global force Thriving communities 100-TE-DC-0036_13
Slide 2: Important Notice
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 presentation contains certain statements w
Slide 3: A world class company
For personal use only A world class company Wholly owned, >1.3 billion tonnes 170 - 175mtpa fully integrated Shipped Shipping rate supply chain Core supplier Industry leading to China cost position 3
Slide 4: COVID-19 response
COVID-19 response For personal use only Prioritise the health of our people, maintain jobs, sustain our business and protect our communities Temporary extension Additional bus and air of operational roster charter services Temperature and health Non-essential site and testing and rapid office-based
Slide 5: Safety and unique culture
Safety and For personal use only unique culture 2.5 TRIFR Total Recordable Injury Frequency Rate on a 12 month rolling basis 11% Improvement compared to 30 June 2019 Reducing fatality risk profile 5
Slide 6: 1H20 highlights
1H20 highlights For personal use only 88.6 million tonnes Iron ore shipped US $4.2 billion Underlying EBIDTA US 65% $2.5 billion Underlying EBITDA margin Net profit after tax A US $0.80 ( A $1.16) Earnings per share $0.76 per share Fully franked interim dividend 6
Slide 7: March quarter 2020 highlights
March quarter 2020 highlights For personal use only US$73/dmt TRIFR 2.5 11% improvement from 2.8 in FY19 Average price received 82% of 62% Fe Index 42.3mt shipped US$13.27/wmt 10% higher than Q3 FY19 C1 costs 2% lower than Q3 FY19 Growth projects US$0.1billion Key milestones achieved Net cash 7
Slide 8: Integrated mine to market infrastructure
Integrated mine to For personal use only market infrastructure 8
Slide 9: Robust demand in China
Robust demand in For personal use only China China’s steel production increased 1.2% YoY in Q1 CY20 China Crude Steel Production (mt) Fortescue is a core supplier of 95 iron ore to China 90 85 China’s steel production 80 increased to 235mt in Q1 CY20 75 70 Steel inventories drawn down 65 as economic
Slide 10: Iron ore prices resilient
Iron ore prices For personal use only resilient Sustained demand and supply disruptions support the iron ore market Iron Ore Prices (CFR China), US$/dmt Strong demand for Fortescue’s 140 products 120 100 Realisation of 84% of the Platts 80 62% Index year-to-date FY20 60 Draw down of iron ore stocks
Slide 11: Enhanced product mix delivers value
Enhanced product mix delivers value For personal use only Realising the benefits of West Pilbara Fines Fortescue’s product mix % 9 months to March 2019 9 months to March 2020 10 4 8 8 33 38 45 7 42 4 West Pilbara Fines Kings Fines Fortescue Blend West Pilbara Fines Kings Fines Fortescue Blend 11 For
Slide 12: Growth and development
For personal use only Growth and development 12
Slide 13: Eliwana project
Eliwana project For personal use only US$1.275 billion capital investment, Progressing on schedule and budget Stage 1 earthworks First steel erection on 143km railway completed of 30mtpa dry OPF Aerodrome and village Construction peak completed, first charter June 2020 mid-2020 13
Slide 14: Iron Bridge Magnetite Project
Iron Bridge Magnetite Project For personal use only US$2.6 billion investment delivering enhanced returns to shareholders and JV partners 22 mpta, 67% Fe product Detailed engineering First ore on ship mid-2022 passed halfway mark First blast at OPF site Site construction Allowing earthworks to comme
Slide 15: Energy infrastructure
Energy infrastructure For personal use only US$8001 million investment providing 25–30 per cent of stationary energy requirements from solar Pilbara Transmission project Pilbara Generation project 275km of high voltage transmission lines 150MW gas, 150MW solar PV Large scale battery storage Chichest
Slide 16: Investing in growth
Investing in growth For personal use only Iron Bridge Magnetite (US$m) Pilbara Energy Connect (US$m) Investing in growth Eliwana Mine and Rail (US$m) 1,200–1,300 1,200 - 1,300 Disciplined 550-650 allocation to core business, innovation and growth 350-400 500-600 250-300 400-500 300-400 50 FY20 FY21
Slide 17: FY20 Guidance
For personal use only 175-177mt FY20 Shipments Guidance US$12.75-$13.25 C1 cost / wmt US$2.0-2.2 billion Capital investment 17
Slide 18: Key strategic focus
For personal use only Key strategic focus Balance sheet Long term strength sustainability Growth and Enhanced returns development to shareholders 18
Slide 19: Fortescue's Values
ae > a om .~ J Our 7 } atd he f\ e °@ SJ Ni S re] n 7 << 4 Renesas ~The safest, lowest “cost, most profitable / ¢ } | f it —nining company. S (©) “Fortescue’s Values =e
Slide 20: For personal use only
For personal use only
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