Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2011)
56 slides from Fortescue's shareholder meeting presentation, Nov 9, 2011
Slide 1: Annual General Meeting 9th November 2011
only * ANNUAL GENERAL eMC = m Mm — | = G Ww Fortescue 9th November 2011 FOr persona
Slide 2: Disclaimer
For personal use only Disclaimer Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("Fortescue"). It is notrecommended that any person makes any investment decision in relation to Fortescue based on this presentation. This presentati
Slide 3: Andrew Forrest, Chairman
Andrew Forrest CHAIRMAN Ajuo © Sled 103 Pp) n jeu S
Slide 4: China and India are on the move
China and India are on the move ‘s,Commodity consumption at growth rates not seen before < . * Doubling sovereign wealth; UK did it in China and 100 years, Germany 80 and Japan 20 years a, ED ? ‘ y India’s GDP __* China has done it in only 10 years; and re) India will soon join the journey 4 8 Yo <
Slide 5: China - the 12th five year plan
China - the 12* five year plan Sy Great news for Pilbara iron ore f= oO ® bition 50,000 221 =) people skyscrapers by — 5 hinese cities will C an: ore 2030 - equal to ten Cc = rt + peat = NY cities have 1m+ people qo MesbyY d living in them - YW ois | Europe has 35m @ a today (or _ Oo . geeee ir . om
Slide 6: India - the second wave is building
India — the second wave is building Population and demographics will drive demand < oO . . oO) million p) people 7,400km =) © will live in India’s mass transit systems Cities in India will « Cities by 2030 constructed have 1m+ people ©) living in them - Y) Europe has 35m @) today (or LL Source: McKi
Slide 7: Expansion strategy to 355mtpa
Expansion strategy to 355mtpa Three hubs, two ports O FOr personel, use only i i i
Slide 8: Chichester - CC stockyard and OPF
Chichester — CC stockyard and OPF
Slide 9: Chichester - Christmas Creek OPF
Chichester — Christmas Creek OPF
Slide 10: Port - second shiploader installation
Port - second shiploader installation
Slide 11: Timelapse - train unloader construction
Timelapse - train unloader construction < @) Q, _ (©) LL
Slide 12: Port - train unloaders construction
Port — train unloaders construction
Slide 13: For personal use only
For personal use only
Slide 14: Solomon - module access
Solomon —- module access
Slide 15: Solomon - overland conveyor
Solomon - overland conveyor MUG SSN feuOSed J05
Slide 16: Solomon - conveyor fabrication
For personell USe Onl Solomon - conveyor fabrication
Slide 17: Solomon - earthworks for OPF
Solomon — earthworks for OPF —— — (ANS PIP y
Slide 18: Changing lives through employment
For personel Use Only Changing lives through employment Real training for guaranteed jobs * Fortescue Vocational Training & Employment Centre (VTEC) established in 2006 * VTEC has engaged around 1,000 people in training and other support * Operates in South Hedland, Roebourne and is established in F
Slide 19: John Perry - VTEC success story
John Perry —- VTEC success story John Perry is a VTEC graduate and employee of Fortescue. * Was unemployed, no license * Completed courses and regained his license through VTEC driving program First worked as a landscaper for VTEC and in 2009 landed a role at Fortescue’s Herb Elliott Port John Perry
Slide 20: Our commitment to the community
nal use on Our commitment to the community Fortescue supports the Pilbara Cities Vision Social Indigenous Training and Employment, land compensation, Fortescue Helping Others, Australian Employment Covenant and supporting doctor housing. Re-investing water opportunities, weed control, obl Government
Slide 21: Community investment
For personel Use Only Community investment Investing in a residential workforce - housing and amenities million spent or planned Pilbara port and rail residential workforce is planned to double $100 million investment to date $300 million - planned over the next five years
Slide 22: Social contribution
Hockey Australia Social contribution ss, Hockey Australia - National Indigenous Program Fortescue is proud to support Hockey Australia’s National Indigenous Program, designed to bring the inclusive game of hockey to local Pilbara communities. The vision is to improve health, friendships, school and
Slide 23: Real Stories
Real Stories < @) Q, _ (©) LL
Slide 24: Australia's growth industry - taxes
Australia’s growth industry - taxes MRRT - a question of fairness and relevance Estimates of what we'll pay 2012 2013 2014 State Govt. Royalties $700m $1,100m Corporate Tax $1,400m $2,200m MRRT $0-20m $0-20m Good tax reform is broad based and simple - the MRRT is neither Poorly conceived and unfair
Slide 25: Nev Power, Chief Executive Officer
CHIEF EXECUTIVE OFFICER Nev Power For personal use only
Slide 26: The year in review
The year in review ss, Allround a great year 128mt US$1.023bn 4 ore shipped to date profit rsonal use on @ 5 5 mtpa 155mtpa expansion Foie brought forward to © run rate acnieved an (LIL, consolidated June 2013 —— a sy 7 tf
Slide 27: Fortescue Vision and Values
Fortescue Vision and Values ss, The lowest cost, most profitable iron ore producer Family Frugality yelp ; ° a ‘ Empowerment ‘4 . BS 3 Integrity 3 oe © Enthusiasm Sp EEE Generating ideas “04 a> Determination Set yourself stretch targets Wearing the Fortescue colours ee SF ET 6) C6:
Slide 28: The Fortescue Family
For personell USe Only The Fortescue Family Family is our key value The heart of our culture is family: 1. Care and support 2. Being accountable
Slide 29: Safety - Core to our Values
Safety - Core to our Values Everybody going home safe and healthy every day F10 improvement year on year FOr personal USESaE ly
Slide 30: Operations Snapshot
Operations Snapshot * Consistent performance at = | =), Cloudbreak he Christmas Creek ramp up — to +15mt 55mtpa run rate For personell US On 128mt shipped
Slide 31: Operations
rsonal use on Operations Efficient Operations Rapid Expansion Ramp up to 55mtpa
Slide 32: Solomon Hub and the Wirlu-murra Yindjibarndi People
Solomon Hub and the Wirlu-murra ss, Yindjibarndi People * We have reached an agreement with the majority of the Yindjibarndi community * Indigenous independence - jobs, training and support * Extensive heritage site investigation with elders to identify and protect all significant heritage sites For
Slide 33: Expansion progress - Port
For personel Use Only Expansion progress Port ¢ Third berth and second outloading circuit - Dec 2011 ¢ Second train unloader - Sept 2012 * Third train unloader — Dec 2012
Slide 34: Herb Elliott Port - expansion progress
Herb Elliott Port - expansion progress WY Third berth < ge ee ee a Mak @) _ construction _, ae ‘ : Me ESuith | Berth 2 ? < Bs. -our’ Ba i mk . Berth’ 254 <~ berth by en. ie 4 -rdell = works © —— 2 Re . LL, ‘
Slide 35: Expansion progress - Rail
Expansion progress Rail * Solomon spur earthworks underway * Sections of rail duplication ready for track laying ° Port rail loops Ig a advancing well De 6s," eee For personel use only
Slide 36: Rail - train unloaders and rail loop
Rail - train unloaders and rail loop Ong use only FOF, DEKS
Slide 37: Expansion progress - Chichester Hub
Expansion progress Chichester Hub * Steel erection commenced for second Ore Processing Facility * Reclaimer commissioned and ramping up * Cloudbreak Wet Plant ©. construction commenced for August 2012 completion ersonal use oni‘ For
Slide 38: Cloudbreak - wet front end construction commencing
Cloudbreak - wet front end construction commencing = — 5 ie
Slide 39: Christmas Creek - 2nd OPF construction
Christmas Creek — 2nd OPF construction
Slide 40: For personal use only
For personal use only • • • • • • • •
Slide 41: Solomon - crushing hubs earthworks
Solomon - crushing hubs earthworks
Slide 42: For personal use only
For personal use only
Slide 43: Key financial figures
For personel USe Only Key financial figures Strong growth across all key metrics 2009 2010 2011 2009 2010 2011 Revenue US $5.540bn NPAT US $1.023bn 3008 = — ae 2,500 2,000 + 1,500 - 1,000 - 500 + 04 2009 2010 2011 2009 2010 2011 Underlying EBITDA US $2.815bn Cash US $2.663bn
Slide 44: Financial highlights
Financial highlights A year of growth and maturity * Record revenues and profits reflect powerful business model * Maiden dividend rewards long term holders while balancing growth capital needs * USS5 billion debt raisings create the platform for T155 delivery * Capital structure is unsecured and fl
Slide 45: Exploration
Exploration ss, But we haven't stopped there ==
Slide 46: Thank you for your support
Thank you for your support
Slide 47: Business of Meeting - Resolutions
BUSINESS OF MEETING Resolutions For personal use only
Slide 48: Adoption of the Remuneration Report
Resolution 1 Adoption of the Remuneration Report To consider and, if thought fit, to pass, with or without amendment, the following resolution as an advisory resolution: “That the Remuneration Report for the Company and its controlled entities for the year ended 30 June 2011 be approved and adopted.
Slide 49: Election of Mr Geoff Raby
Resolution 2 Election of Mr Geoff Raby To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Geoff Raby, having been appointed as an additional Director of the Company since the last meeting of Shareholders, resigns from the
Slide 50: Election of Mr Herbert Scruggs
Resolution 3 Election of Mr Herbert Scruggs To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Herbert Scruggs, having been appointed as an additional Director of the Company since the last meeting of Shareholders, resign
Slide 51: Re-election of Mr Andrew Forrest
Resolution 4 Re-election of Mr Andrew Forrest To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Andrew Forrest, being a Director of the Company who retires pursuant to Rule 17.3(2) of the Company's Constitution, and bein
Slide 52: Re-election of Mr Graeme Rowley
Resolution 5 Re-election of Mr Graeme Rowley To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Graeme Rowley, being a Director of the Company who retires by rotation pursuant to Rule 17.3(3) of the Company's Constitution
Slide 53: Re-election of Mr Owen Hegarty
Resolution 6 Re-election of Mr Owen Hegarty To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Owen Hegarty, being a Director of the Company who retires by rotation pursuant to Rule 17.3(3) of the Company's Constitution,
Slide 54: Adopt a new constitution
Resolution 7 Adopt a new constitution To consider and, if thought fit, to pass, with or without amendment, the following resolution as a special resolution: “That the new constitution tabled at the meeting (excluding rule 5) and signed by the Chairman of the meeting for the purposes of identificatio
Slide 55: Approval of proportional takeover provisions
Resolution 8 Approval of proportional takeover provisions To consider and, if thought fit, to pass, with or without amendment, the following resolution as a special resolution: “That, conditional upon the approval of Resolution 7 and with effect from the close of the meeting, the proportional takeov
Slide 56: Forging Ahead
FOr personal use only FORGING AHEAD Sign up to alerts online: www.fmgl.com.au Ww Fortescue The New Force in Iron Ore
Fortescue Metals Group — Shareholder Meeting (November 2011) on 6ix