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2014 Full year results
August 2014

Disclaimer
2
Important Notice
The purpose of this presentation is to provide general information about Fortescue Metals Group Limited ("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 which may constitute "forward-looking statements". Such statements are only
predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements
to differ materially from those expressed, implied or projected in any forward-looking statements.
No representation or warranty, express or implied, is made by Fortescue that the material contained in this presentation will
be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Fortescue, its officers, employees
and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation
and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as
a consequence of any information in this presentation or any error or omission therefrom. Fortescue accepts no responsibility
to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information
made available to a person nor any obligation to furnish the person with any further information.
Additional Information
This presentation should be read in conjunction with the Annual Financial Report as at 30 June 2014 and together with any
announcements made by Fortescue in accordance with its continuous disclosure obligations arising under the Corporations Act 2001.
Any references to reserve and resources estimations should be read in conjunction with Fortescues Mineral Resource and Ore Reserve
Statement at 30 June 2014 as release to the Australian Securities Exchange on 20 August 2014.
All amounts within this presentation are stated in United States Dollars consistent with the Functional Currency of
Fortescue Metals Group Limited. Tables contained within this presentation may contain immaterial rounding differences.

Fortescue Update
The journey continues

Building a world class company
Reliable and competitive supplier to Asia
• First ore 2008
• 400mt shipped to date
• 155mtpa production rate
• Large growing resource base
• Unique culture
4

FY14 in review
Delivering 155mtpa
124.2mt YTD
38.7mt June Qtr
155mtpa
Annualised run rate
US$2.4bn
cash on hand
$US3.1bn
debt reduction
Infrastructure complete
Mines and processing
facilities ramped up
Costs 23%
efficiency focus
6

mt
US$bn
Fortescue overview
Record operational performance delivers NPAT of US$2.7bn and EBITDA* of US$5.6bn
Volume 54% Costs
23%
140.0
50
105.0
70.0
35.0
7
-
6.0
4.0
2.0
-
FY10 FY11 FY12 FY13 FY14
Earnings EBITDA 58% NPAT 57%
EBITDA
NPAT
FY10 FY11 FY12 FY13 FY14
* Refer to attached glossary for definitions of non IFRS terms
US$bn US$/wmt
40
30
20
14.0
10.5
7.0
3.5
-
Debt
FY10 FY11 FY12 FY13 FY14
US$3.1bn
+$0.5bn
Oct 14
FY10 FY11 FY12 FY13 FY14

Building a world class company
World class infrastructure
• Over 10,000 jobs
• 5 mines; 5 processing plants
• 3 airports; 30,000 passengers/month
• 5 berths; 75 ships/month
• 620km rail; 45 locos, 3,384 ore cars
8

Foundation for the future

Disciplined capital management
Track record of debt repayment delivering investment grade metrics
• Increased cashflow and lower capex
• US$2-$2.5bn targeted additional
repayments
7.0
6.0
5.0
160
140
120
- Gearing ~40%
- Net Debt to Equity ~50%
• Net debt (June 14) US$7.2bn
4.0
3.0
2.0
1.0
100
80
60
40
20
• FY15 capital US$1.3bn
0.0
2010 (act) 2011 (act) 2012 (act) 2013 (act) 2014 (act) 2015 (est)
Capital expenditure
Production (RHS)
0
10

Ongoing projects
• Targeted exploration continues to increase resource base
• AP5 berth adds 15 – 20mtpa outload capacity
• Detrital processing plant adds 5mtpa capacity at Solomon
• Autonomous haulage increases operational cost efficiencies
• Ship construction 260k dwt ore carriers
11

Port – flexible design for future growth
Fifth berth under construction
AP3
AP2
AP1
AP4
AP5
2015
12

Financials

Highlights
Record financial results
Revenue
US$11.8bn
C1 costs
US$34/wmt
EBITDA
US$5.6bn
NPAT
US$2.7bn
45%
23%
58%
57%
Debt re-paid
US$3.1bn + US$0.5bn committed
Interest savings
in excess of US$330m p.a.
Total FY14 dividends
A$0.20 / share fully franked
14

Operating revenue, US$bn
Price realisation, US$/dmt
Earning growth
Strong financial results reflect operational performance
Revenue and price realisation
EBITDA, US$ millions
14.0
160
5,636
10.5
120
7.0
80
2,661
3,035
3,575
3.5
40
1,107
0.0
FY10 FY11 FY12 FY13 FY14
Revenue
Realised CFR price
-
FY10 FY11 FY12 FY13 FY14
Net profit after tax, US$ millions
Basic earning per share, US cents
2,740
88.00
581
1,019
1,559
1,746
18.85
32.86
50.07
56.07
FY10 FY11 FY12 FY13 FY14
FY10 FY11 FY12 FY13 FY14
15

Operating margins
Solid operating margins maintained
US$/wmt
62% Platts US$/dmt
200
200
180
180
160
$146
160
140
$127
$127
140
$114
120
$110 $113
120
$100
$74
$96
100
$65
$57
$45
$85 100
80
$44
$28 $53 $60
$64
80
$35
60
$22
$18
$22 $20 $18
60
$22
$24
$18
40
$20 $16
$19
40
20
$27 $34 $39
$50 $48 $49 $50
$39 $33 $34 20
0
0
1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014
C1 cost Other operating cost CFR operating margin 62% Platts index (RHS)
• Total delivered cost US$52/wmt (US$56/dmt) in FY14
• C1 guidance of US$31-32/wmt in FY15
16

EBITDA
Ramp-up of operations and sustained cost savings deliver record financial results
1,203
829
2,079
276
149
33
5,636
3,575
FY13 Volume Costs Price Royalty Fx Other FY14
• Increased shipments - record production
• Continued focus on production costs C1 $34/wmt
54%
23%
17

Driving down the global cost curve
Production costs
35% reduction generating ~ US$2.6bn lower costs
FY12
$48
CB and CC1 operations
58mt production @ SR 4.3 with 2 OPF’s + 3 Berths
FY13
$44
CC2, Hamersley line, Firetail, CB WFE
80mt production @ SR 3.9 from 4 OPF’s + 3 Berths
FY14
FY15
$34
$31-32
AP4, Kings Valley, ITCS, 5 OPF’s + 4 Berths
124mt production @ SR 2.9 from 5 OPF’s + 4 Berths
155mtpa run rate achieved
Full operation capacity achieved + AP5
in March 2015
155 -160mt, SR maintained + efficiency focus
18

Cashflow FY14
Record net free cash flow US$4.3bn
US$m
9,000
6,000
3,000
1,294
2,778 2,808 3,004
6,248
-
(3,000)
(6,000)
(9,000)
FY10
(584)
(1,477)
FY11
Operating cash flow
• Increased production volumes and lower costs
improve operating cash flows
• T155 expansion complete
(6,044) (6,355)
FY12
Capital expenditure
FY13
FY14
(1,931)
19

Capital expenditure
Significant reduction in expenditure as expansion complete
US$bn
7.5
6.0
4.5
3.0
1.5
0.0
FY10 FY11 FY12 FY13 FY14 FY15(est)
• FY15 capital US$1.3bn
• Depreciation and amortisation ~$8.50/t
20

US$m
US$3.1bn re-paid + US$0.5bn committed
Flexibility to enables further repayments and re-financing
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Callable
in April
2015
1,000
Callable at
Fortescue's
option
500
400
4,913
1,500
Repayable at Fortescue's option
Callable
in November
2015
Callable in
April 2017
1,000
CY2015 CY2016 CY2017 CY2018 CY2019 CY2020 CY2021 CY2022
Senior Secured Credit Facility Senior Unsecured Notes Committed to be paid in October 2014
Current ratings Corporate Term Loan Notes
Moody’s Ba1/Stable Baa3 Ba2
S&P BB/Positive BBB- BB-
Fitch BB+/Stable BBB- BB+
21

Cost of borrowings
Focus on debt reduction lowering interest costs
• Cost of borrowings reduced
to 5.3%*
• Debt repayments US$3.1bn
+ US$0.5bn committed in Oct 14
• Intention to re-pay additional
US$0.5bn to US$1.0bn in FY15
10.1%
7.0% 7.0%
6.3%
5.3%
• Debt reductions + refinancing reduce
borrowing costs by US$330m p.a.
FY10 FY11 FY12 FY13 FY14
22
*Cost of borrowings are calculated at 30 June and exclude Leucadia notes and finance leases

Key credit metrics
Moving towards investment grade metrics
2.7x
Debt to EBITDA
2.8x
3.5x
Gearing: Debt / (Debt+Equity)
67% 67% 69% 71%
56%
1.8x
1.7x
FY10 FY11 FY12 FY13 FY14
Interest coverage: EBITDA / Interest
FY10 FY11 FY12 FY13 FY14
Cash and debt (US$bn)
5.4x
6.9x
8.5
12.7
9.6
2.8x
4.0x 3.9x
FY10 FY11 FY12 FY13 FY14
4.9
3.0
2.7 2.3 2.2 2.4
1.2
FY10 FY11 FY12 FY13 FY14
23

Dividends
Fully franked A$0.20 dividend for FY14
Dividends, AUD cents per share Dividend payout ratio, %
30
3,000
30%
20
20
2,000
20%
10
7
8
10
1,000
10%
-
-
FY10 FY11 FY12 FY13 FY14
-
FY10 FY11 FY12 FY13 FY14
0%
Interim Final
Net income Dividend payout ratio(RHS)
• Modest dividends – focus on debt reduction
• Increased dividends reflect improved financial performance
• Moving towards dividend payout ratio of 30 to 40%
24

Market

China’s growth cities
200m people to urbanise by 2020
• GDP doubled in 6 years
• China has just reached steel
consumption levels of a
developed country
• Record daily steel
production 2.3mt
• Iron ore imports +20% YTD
26

Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Iron ore price volatility
Realisations at 85–90% as supply re-balances and products transition
$170
$160
$150
$140
$130
$120
$110
$100
$90
$80
$70
$60
$50
Iron Ore Price (62% Fe CFR - Platts IODEX China)
27

Steel consumption per capita
China has only just reached levels of consumption of a developed country
Kg per
capita
800
2014 - 2020
Forecast
700
600
500
400
300
200
100
GDP
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
China
US
28
Source: Macquarie Research

Demand for seaborne supply
New coastal steel capacity moving away from domestic iron ore
Iron Ore
Reserves
New/proposed
steel capacity
Seaborne
iron ore
Seaborne iron ore imports (Ex. Australia, Brazil etc.)
29
Source: ANZ Research

30
Clear strategy

US$/dry tonne
Fortescue
Moving down the global cost curve
Targeting bottom quartile
200
150
China Iron Ore Supply CFR Costs – May 2014 (including royalties and freight)
Domestic Chinese Ore
Australia
Brazil
India
South Africa
Other
100
50
0
0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200
Cumulative Mt (wet, as delivered)
31
Source: Metalytics

Significant reliance on diesel fuel
Driven by remote power and mobile fleet consumption
Total energy spend >US$800 million
Diesel
(Mine Fleet)
Diesel
(Mine Power Generation)
Diesel (Rail)
Gas
(Power Generation)
Diesel
(Ancillary)
32

Fortescue River gas pipeline
Stage 1 – to Solomon Hub
33

Competitive energy powering the future
Unlocking Australia’s energy advantage
• Transparent Retention Leases enforce
“Use it or lose it” policy
• Competitively priced energy for
our economy
• Reducing carbon emissions
• Gross State Product +$2.5 billion in 2020
34

Reserves and resources

Mineral Resources dry in situ (Mt)
Resource portfolio supports asset base
Drilling as required and extend through near mine exploration
12,000
10,000
2,463
2,013
2,463
740
8,000
1,032
624 624
6,000
624
3,246 3,504
4,877
4,000
2,000
-
1,715
2,224
2,860
695 695 695
2,266 2,227 2,143
1,230 1,230
-
3,070
695
2,550
2,465
695 695
5,205
303
3,379 3,237 3,222 3,222
2008 2009 2010 2011 2012 2013 2014
Chichester Hub Chichester Other Solomon Hub Western Hub Nyidinghu Magnetite
4,676
36

Mine lives based on current reserves
Fortescue mine lives compare favourably
Reserve and Resource Tonnages (dry)
Ore Reserve Life (Years)
25
25
20
20
15
15
10
10
5
5
0
Fortescue BHPBIO RTIO
0
Fortescue BHPBIO RTIO
Reserves M&I Resources Total Resources
Based on last 12 months Sales
Based on Forecast Annual Production
37
Based on latest company announcements

Hematite reserves
Reserve base supports extended operations
Million Tonnes* Fe %
Cloudbreak 500 57.6
Christmas Creek 970 57.3
Chichester Total 1,470 57.4
Firetail 174 58.7
Kings Valley 729 56.9
Solomon Total 903 57.2
Fortescue Total 2,373 57.3
* Product tonnes on a dry tonne basis
• Focused exploration programs
• Significant reserve lives
• Chichester single ore body,
transferable between CB + CC
• Significant BID prospectivity at:
– Mt MacLeod (Solomon)
– Fredricks (Solomon)
– Kutayi (Chichesters)
38

Supporting our local community

VTEC
Creating opportunities through training and employment
1,100 Aboriginal employees
12%
$1.5bn+
VTEC
Training Centres
Aboriginal people in
Fortescue workforce
Contracts to Aboriginal
companies and JV’s
Roebourne,
South Hedland
40

Building our economy
Unlocking the potential of WA’s North West
15,000
employed
AU$800m*
wages p.a.
AU$2.1bn
taxes and royalties p.a.
AU$490m
localised spend FY14
41
* applies to full time employee wages only

Delivering on targets
Focused on shareholder value
• 155mt production rate achieved
• Committed to debt reduction – initial
gearing target 40%
• Moving towards dividend payout
ratio of 30% - 40% once the gearing
target is achieved
• Early work to secure strategic options with
high value opportunities

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Glossary
Definition of non-IFRS terms
NPAT = net profit after income tax
EBITDA = profit before income tax adjusted for depreciation and
amortisation, asset write offs, exploration, development and other
write-offs, net finance costs and gain or loss on refinancing
Debt = Current and non-current borrowings and financial liabilities
Net debt = debt + cash and cash equivalents
Gearing = debt / (debt + equity)
C1 = costs of mining, processing, rail and port per wet metric
tonne
Total delivered costs = C1 + shipping, royalties and
administration costs
Free cash flow = operating cash flow – capital expenditure
Return on equity = profit for the year after income tax divided by
total equity
Interest coverage = EBITDA / interest expense
Reconciliation of EBITDA to IFRS items
2014 2013
US$m US$m
Profit before income tax 3,913 2,466
Finance income (21) (33)
Finance expenses 741 586
Gain on refinancing - (23)
Depreciation and amortisation 965 463
Impairment 22 71
Exploration, development and other 16 45
EBITDA 5,636 3,575
Earnings per share (EPS) = profit for the year after income tax
divided by undiluted weighted average ordinary shares.
Non IFRS information disclosed in this presentation has not been
subject to audit.
dmt = dry metric tonne
wmt = wet metric tonne
mtpa = million tonnes per annum
44