Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Macquarie Australia Conference 2021
23 slides from Fortescue's conference presentation, May 4, 2021
Slide 1: ASX cover letter: Presentation – Macquarie Australia Conference
For personal use only 4 May 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 – MACQUARIE AUSTRALIA CONFERENCE Fortescue Metals Group Ltd (ASX: FMG) advises that Elizabeth Gaines, Chief Executi
Slide 2: Macquarie Conference
For personal use only Macquarie Conference Elizabeth Gaines, CEO 4 May 2021 1
Slide 3: Important Notice
Important Notice Forward 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 For personal use only Looking to Fortescue based on this presentation. This pres
Slide 4: Rapidly evolving into a resources and renewable energy company
World class Rapidly evolving into a resources and renewable energy company For personal use only company 3
Slide 5: Integrated mine to market infrastructure
Integrated mine to For personal use only market infrastructure >1.5 bn tonnes shipped since 178-182 mtpa shipping rate first shipment in 2008 3 mining hubs 5 berths One under development Herb Elliott Port 8 ore carriers 260,000t capacity each, >760 Fastest, heavy haul km supported by innovative rail
Slide 6: Safety and unique culture
Safety and For personal use only unique culture 2.2 TRIFR Total Recordable Injury Frequency Rate at 31 March 2021 8% improvement Compared to 30 June 2020 Hazard identification Assisting in journey to zero harm 5
Slide 7: March 2021 quarter highlights
March 2021 quarter For personal use only highlights 2.2 TRIFR US $143 /dmt 8% improvement from Average revenue, 2.4 at 30 June 2020 86% of 62% Fe index US 42.3 mt shipped $14.90 /wmt In line with Q3 FY20 C1 cost US$13.45/wmt YTD US $1.5bn US $1.0bn Issue of Unsecured Senior Net debt Notes to refinan
Slide 8: H1 FY21 highlights
H1 FY21 For personal use only highlights US $9.3bn US $6.6bn Revenue Underlying EBITDA at a 71% margin US $4.1bn US $4.4bn Net profit after tax Net operating cashflow A US $1.33 $1.47 Earnings per share Interim dividend, (A$1.84) payout ratio of 80% 7
Slide 9: Focus on generating strong margins through the cycle
Focus on Generating strong margins through the cycle For personal use only margins Prices and EBITDA margin (US$/dmt) Underlying EBITDA Realised price 62 Platts CFR Index Average Underlying EBITDA Average realised price 140 120 100 80 80 60 40 52 39 20 30 21 20 0 FY16 FY17 FY18 FY19 FY20 H1 FY21 8
Slide 10: Marketing strategy aligned with needs of customers and market
Marketing strategy aligned with Marketing needs of customers and market For personal use only Creating value through supply chain optimisation Integrated operations Direct customer and marketing engagement Timely and coordinated supply Aligning our products with what chain response to customer our c
Slide 11: Global steel demand recovers
Global steel demand recovers For personal use only Resulting in higher steel prices and incentivising crude steel production Global HRC prices Global crude steel production China monthly pig iron output USD/t (mt) 1,500 (mt) 100 80 95 1,300 75 90 1,100 85 70 80 65 900 75 70 60 700 65 55 60 500 55 50
Slide 12: Robust demand for iron ore
Robust demand for iron ore For personal use only Increasing port stocks supported by steel destocking and crude steel production rates China monthly iron ore imports by origin (mt) China port stocks by product (mt) China import iron ore inventory (mt) 120 180 170 180 100 160 160 160 140 140 80 150 1
Slide 13: Fortescue's Q3 average realised price
Fortescue’s Q3 average realised price Strong US$143/dmt, 86% of the Platts 62% CFR index For personal use only realisations $166.9 $133.7 $118.2 $102.0 $93.3 $89.0 $82.7 Jan 19 Apr 19 Jul 19 Oct 19 (US$/t) Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 62% CFR Platts Quarterly Platts Price SSF (Portside) FB (Po
Slide 14: Iron Bridge Magnetite Project
Technical and commercial Iron Bridge assessment scheduled for completion in late May 2021 For personal use only Magnetite Project Focus areas Concentrate transport solution, utilisation of port and rail infrastructure, contractor strategy, logistics infrastructure Critical path works ongoing Approva
Slide 15: Approach to Sustainability
Approach to Sustainability For personal use only We are a global force, committed to empowering thriving communities Setting Safeguarding the Creating positive high standards environment social change ▪ Employee health and safety ▪ Climate change action and ▪ Creating employment and disclosure busin
Slide 16: Protecting Aboriginal heritage
Protecting Detailed processes for Aboriginal heritage For personal use only engagement and heritage management Seven agreements with Native Title Groups Heritage avoidance Primary objective ~6,000 heritage sites Protected and avoided 2.7 million ha of land Ethnographically surveyed 15
Slide 17: Joining the battle against climate change
Joining the battle An ambitious, industry leading against climate change For personal use only emissions reduction target Carbon neutrality by 2030 Decarbonisation pathway Energy infrastructure to increase use of renewables Technology and innovation Hydrogen and battery electric solutions Fortescue
Slide 18: Pathway to decarbonisation
Pathway to decarbonisation Underpinned by practical initiatives that will deliver goals in an For personal use only economically sustainable manner Chichester solar gas Pilbara Energy Connect Green fleet hybrid project f ▪ US$100 million investment by ▪ Australia’s largest remote ▪ A$32m Christmas C
Slide 19: Renewable energy driving new green industries
Renewable energy driving For personal use only new green industries Global leader Driving the green energy and product industry to transition away from fossil fuels Developing Renewable energy and green industry opportunities globally Funding Allocating 10% of net profit after tax to FFI, project fi
Slide 20: FY21 guidance
FY21 guidance For personal use only 178 – 182 mt Iron ore shipments US$13.50 – US$14.00/wmt C1 cost based on assumed exchange rate of AUD:USD 0.75 US$3.5 – US$3.7 billion Capital expenditure 19
Slide 21: Our strategic focus
Our strategic focus For personal use only Underpinned by operational excellence Sustainability and balance sheet strength ✓ Ensuring communities benefit from Fortescue’s success Optimising ✓ Returns and growth from our operations Diversifying ✓ Commodities that support decarbonisation Pursuing ✓ Gre
Slide 22: Our Purpose and Values
For personal use only Our Purpose Thriving communities | Global force Fortescue’s Values
Slide 23: Fortescue
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