Transport Division FCAB December 5 th 2016 Mauricio Ortiz Jara - PowerPoint PPT Presentation

Transport Division FCAB December 5 th 2016 Mauricio Ortiz Jara General Manager

Agenda Business Business Operational Strategy Strategy Overview Review - - Optimising Expansion 2

Safety First Committed to Accident Reduction & Zero fatalities Areas of focus • Report and investigate near misses Safety Performance • Implement critical controls 68% reduction • Increase senior leadership in the field 16 in LTIFR 13.9 14 12.4 11.2 12 10.5 9.2 10 • First fatality for 5 years – truck collision with a 8 train 6 2.9 • Newly created Health & Safety position within 4 the FCAB Executive committee. 1 1 2 0 • 68% improvement in injury rate (2) 2011 2012 2013 2014 2015 YTD 2016 • Road risk assessment underway (1) Fatalities LTIFR 1. LTIFR: Lost Time Injury Frequency Rate 2. Oct YTD 3

Overview 4 4

General Overview FCAB: Leader in Bulk Transport Ownership : 100% Antofagasta PLC TonnesTransported : 6,2 Mton (2015) Workforce : ῀ 1,700 (1,400 direct and 300 contractors) RAILWAY • +700 km of owner operated rail track • +1000 cars • 76 locomotives • International link with Bolivia and Argentina ROAD • 65 Trucks • Workshops and maintenance facilities LOGISTICS • Logistic Support at railway terminals INDUSTRIAL WATER • Distribution networks to mining customers • Urban operation in two major Cities (Antofagasta & Calama) • Provide transport services to +30 customers 5

FCAB Team Refreshing Railroader Know How Mauricio Ortiz GENERAL MANAGER General Manager COMMERCIAL RAILWAY OPERATION MANAGER MANAGER ROLLING STOCK & RAIL HEALTH AND SAFETY INFRASTRUCTURE MAINTENANCE MANAGER MANAGER PLANNING & DEVELOPMENT LOCOMOTIVE MAINTENACE MANAGER MANAGER (I) Nibaldo Areyuna FINANCE & ADMINISTRATION HUMAN RESOURCES Finance & Administration Manager MANAGER MANAGER MULTIMODAL OPERATION SUSTAINABILITY & PUBLIC AFFAIRS MANAGER MANAGER Denotes presence at 6 presentation

Operational Review Types of Service Direct Transport Ports Transport, Storage and Shipment Ports Bimodal Transport Bimodal Transport Ports 7

Business Strategy Three Pillar Approach Current business optimisation 1 • Strengthen FCAB's position by:  Reinforcing Sustainability,  Improving Productivity and  Enhancing Margins 1 2 3 2 Expand to other bulk products within the area of influence • Demand for supplies moves in the opposite direction to declining ore grades 3 Growth - expanding the area of influence and services • New services for bulk cargos such as storage and handling 8

Business Strategy - Optimising the Business 9

1. Optimising the Business -Sustainability Health & Safety • Support the change of operational practices, promoting Health and Safety, based on: • Identification of critical risks • Compliance with procedures • Reporting sub-standard actions and conditions Environment & Communities • Since late 2015, focus on enabling the existing operations and facilitating their development, through: • Implementation Working Tables in Antofagasta and Calama • Open House Program • Recreational train rides 10

1. Optimising the Business -Productivity Fleet Management +10% 6.0 (Jan-Oct 2015 vs Jan-Oct 2016*) 5,4 Trasported Material - Mton 4,9 5.0 Rail Truck 4.0 People 3.0 (Jan-Oct 2015 vs Jan-Oct 2016*) 2015 2016 • Align individual and collective incentives to the Company’s goals and objectives • Through an optimisation program and fleet management initiative, the productivity per employee increased 4,500 +20% Tonnees/Headcount 4,154 4,000 3,736 3,500 2015 2016 * Comparable basis, without FCA (divested in August 2015) 11

Business Strategy - Expanding the Business 12

2. Expanding the Business -Opportunity In the medium term, copper production in the Antofagasta region will change from metallic copper output to concentrate, increasing the mass to be transported. Also, declining ore grades will increase the consumption of bulk supplies. • Diesel • Explosives • Limestone • Grinding steel 13

Key Messages • Large mining operations Tier 1 • Companies with growth plans Customers • Mining corporations resilient to volatility • Long term contracts Low Risk Investments • Attractive return on investment • Enabling current and future operations through Growth Productivity and Sustainability Opportunities • Relevant development options in an attractive mining jurisdiction 14

Transport Division FCAB December 5 th 2016 Mauricio Ortiz Jara General Manager