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Half Year Results to 31 December 2020 FMG Fortescue 18 February 2021 Record half year performance delivers a 93 per cent increase in interim dividend to A $ 1.47 per share Highlights • • • • • • • • • Ongoing improvement in safety performance with the Total Recordable Injury Frequency Rate ( TRIFR ) reduced to 2.1 at 31 December 2020 , 13 per cent lower than 30 June 2020 Shipments , earnings and operating cashflow surpassed any half year in Fortescue's history Underlying EBITDA of US $ 6.6 billion for the six months ending 31 December 2020 ( H1 FY21 ) was 57 per cent higher than the prior period , and EBITDA margin increased to 71 per cent Net profit after tax ( NPAT ) of US $ 4.1 billion and earnings per share of US $ 1.33 ( A $ 1.84 ) increased 66 per cent from the prior corresponding period Net cashflow from operating activities of US $ 4.4 billion and free cashflow of US $ 2.5 billion after investing US $ 1.9 billion in capital expenditure Fully franked interim dividend declared of A $ 1.47 per share is 93 per cent higher than the FY20 interim dividend and represents an 80 per cent payout of H1 FY21 NPAT Fortescue has a commitment to shareholder returns targeting the top end of its dividend policy to payout 80 per cent of full year NPAT . With 20 per cent of NPAT available to fund future growth , Fortescue intends to allocate 10 per cent to fund renewable energy growth through Fortescue Future Industries ( FFI ) and 10 per cent to fund other resource growth opportunities . Net debt of US $ 110 million at 31 December 2020 , inclusive of cash on hand of US $ 4.0 billion In December 2020 , first ore was achieved at the Eliwana mine , Fortescue's first mining operation in the Western Hub region of the Pilbara Based on strong first half performance and continued focus on debottlenecking to optimise capacity , guidance for FY21 shipments is increased to 178-182mt FY21 guidance for C1 cost is updated to US $ 13.50 - US $ 14.00 / wet metric tonne ( wmt ) based on a revision to the assumed FY21 average exchange rate from AUD : USD 0.70 to 0.75 FY21 guidance for capital expenditure is revised to the upper end of the guided range of US $ 3.0 to US $ 3.4 billion , primarily due to the revision to the assumed exchange rate . Fortescue Chief Executive Officer , Elizabeth Gaines , said " Fortescue's performance for the first half of FY21 has been outstanding , and we are very proud of the whole team who have delivered our best half year operating and financial results since the Company was established . " Revenue of US $ 9.3 billion for the first half exceeded the prior comparable period by 44 per cent , with realised prices increasing by 42 per cent , outperforming the increase in the Platts 62 % CFR Fortescue Metals Group Ltd ABN 57 002 594 872 PO Box 6915 , East Perth , Western Australia 6004 Level 2 , 87 Adelaide Terrace , East Perth , Western Australia 6004 P +61 8 6218 8888 E fmgl@fmgl.com.au W www.fmgl.com.au Page 1 of 6