Fortescue Ltd · ASX:FMG

Fortescue — Fortescue Metals Group — Diggers and Dealers 2016

20 slides from Fortescue's conference presentation, Aug 3, 2016

  1. Slide 1: Diggers and Dealers 2016

    For personal use only Diggers and Dealers 2016 Working together. Delivering results.

  2. Slide 2: Forward looking statements

    Forward looking statements For personal use only Important Notice Additional Information The purpose of this presentation is to provide general information about This presentation should be read in conjunction with the Annual Report at 30 Fortescue Metals Group Limited ("Fortescue"). It is not recom

  3. Slide 3: Building a world class company

    Building a world class company Core supplier to China’s growth For personal use only Safety focus First ore Low cost Engagement Empowerment Leadership in 2008 producer Shipped over 165-170mt Production rate 708mt Unique culture

  4. Slide 4: Our Vision: The safest, lowest cost, most profitable iron ore producer

    Our Vision: The safest, lowest cost, most profitable iron ore producer 4: Ww Fortescue Integrity Determination Set yourself Enthusiasm Empowerment Generating ideas Frugality

  5. Slide 5: Strategic delivery of targets

    Strategic delivery of targets For personal use only Focus on safety, productivity and efficiency and response to market  169.4mt achieved  C1 $14.31/t in Q4 FY16  Sustaining capex below $2/t  Net debt $5.2bn  Cash on hand $1.6bn

  6. Slide 6: Operating and Financial Performance

    For personal use only Operating and Financial Performance

  7. Slide 7: Continuous + sustainable cost improvements

    Continuous + sustainable cost improvements For personal use only Through development of assets, efficiencies, productivity and cost savings US$/wmt 1 Solomon operations 60 50 48 44 2 Blending strategy 58% Fe 40 34 3 Processing, wet plants + de-sands 30 27 Operational efficiencies 20 15 4 10 $12 - $1

  8. Slide 8: Moving down the global cost curve

    Moving down the global cost curve For personal use only China's Iron Ore Supply CFR Costs (including royalties & ocean freight) 2012 2016 Source: Metalytics 26 May 2016

  9. Slide 9: Debt journey

    Debt journey For personal use only Net debt of US$5.2bn at 30 June 2016 $USm $USm Net debt Debt maturity profile 12,000 12,000 10,000 10,000 Net gearing below 40% 8,000 8,000 6,000 6,000 4,000 4,000 3,676 2,000 2,000 2,160 478 0 0 FY13 FY14 FY15 Current CY2016 0 CY2017 CY2018 CY2019 CY2020 CY2021 CY

  10. Slide 10: Reserves and resources

    For personal use only Reserves and resources

  11. Slide 11: Resource portfolio supports asset base

    Resource portfolio supports asset base For personal use only Largest Pilbara tenement footprint 12,000 2,463 2,463 Mineral Resources dry in situ (Mt) 10,000 2,463 740 740 8,000 2,013 624 1,032 624 624 6,000 4,877 4,793 3,504 3,070 3,070 2,860 4,000 2,224 1,715 695 303 491 695 695 5,504 695 695 695 5

  12. Slide 12: Market

    For personal use only Market

  13. Slide 13: Core supplier to Asia

    Core supplier to Asia For personal use only Well established 17% market share of imported iron ore to China Global steel production 2015 (mt) • Low impurity 58% Fe average 89 • High value in use 208 • Large diverse customer base 803 301 • Responsive to market needs • Proximity to high growth region

  14. Slide 14: Iron ore supply in balance

    For personal use only Days Coverage 10 20 40 50 30 0 Jul-10 Sep-10 Nov-10 Jan-11 Source: Bloomberg and Umetal Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 Port stocks remaining stable May-12 Jul-12 Iron ore supply in balance Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 M

  15. Slide 15: Supporting our local community

    For personal use only Supporting our local community

  16. Slide 16: Building strong communities

    Building strong communities For personal use only Creating opportunities through training, employment and business development 16

  17. Slide 17: Focused strategy

    For personal use only Focused strategy

  18. Slide 18: Strategic delivery

    Strategic delivery For personal use only Culture, continuous improvement, speed and flexibility  Consistent 165-170mtpa  Lowering costs to US$12-13/wmt  Maximising resource value  Debt repayment  Ongoing improvements

  19. Slide 19: The new force in iron ore

    The new force in iron ore For personal use only Continuous improvement, reliable and efficient delivery Sustainable low cost World class producer assets & people 165-170mt Unique culture Production rate drives performance

  20. Slide 20: For personal use only

    For personal use only www.fmgl.com.au @FortescueNews Proudly supporting:

Fortescue Metals Group — Diggers and Dealers 2016 on 6ix