flsmidth 3rd quarter report 2014

7 November 2014 Interim Report Q3 2014 1

Presentation of Interim Report Q3 2014

Key highlights in Q3’14

Strong cash flow from operations Significant margin improvements Reduction in net working capital Great safety performance Weak order intake in line with industry


Mining capex

Close to the trough Flattish or slightly declining in 2015 Slow growth expected in 2016 Impacted by market uncertainty and declining commodity prices Customer focus on productivity enhancing investments

Cement capex

Moving out of the trough Increasing utilisation rates to underpin growth Customer focus on new capacity, productivity and environment

Customer Services resilient and growing

Customer focus on optimised inventories and productivity Fewer bigger, but more smaller orders

Market trends unchanged but uncertainty has increased

Market update


Strong safety performance

LTIFR*) decreased to 2.0 (Q2’14: 2.5)

‘Organising for growth’ on track

Organisational adjustments to be implemented by 1 Jan. 2015

Excellence award received in Brazil

Recognition of superior contributions and performance of suppliers based on e.g. delivery, quality, safety and reliability

New service center in Mexico

Operational highlights in Q3 2014

Operation highlights


2.0

0

1

2

3

4

5LTIFR*

2014 Target

*) Lost time injury frequency rate (per 1 mill. working hours)

Sustainable technology highlights in Q3 2014

Technology highlights


Compact dynamic ROKSH separator for Hydraulic Roller Press Cement systems

New innovative design enabling a more compact milling system resulting in lower CAPEX, OPEX and higher productivity

The new millMAX-e™ high efficiency centrifugal slurry pump successfully released

Sets new standard for slurry pumps

Utilizes the patented millMAX suction side sealing system.

Lean design and unmatched power saving reduce the total cost of ownership and increase the productivity

Efficiency programme on track

Efficiency Programme


Efficiency programme Impact

Targeted full-year EBITA improvement in 2015 DKK +750m p.a.

Estimated total costs DKK -500m

Run-rate full-year EBITA improvement in 2015 DKK +692m p.a.

Estimated EBITA improvement* in Q3’14 DKK ~135m

One-off costs recognised in 2013-2014 DKK -493m

One-off costs recognised in Q3’14 DKK -8m

*) before one-off costs of DKK -8m

Order intake affected by decline in Mineral Processing

Revenue as expected

EBITA margin improved significantly due to efficiency programme and impact from one-off costs in Q3’13

Strong cash flow from operations

Financial performance in Q3 2014

Results Q3 2014

7 November 2014 7 Interim Report Q3 2014

FLSmidth & Co. A/S (DKKm)

Q3 2014

Q3 2013

Change Change in local

currencies

Order intake 4,502 4,642 -3% -4%

Order backlog 21,416 24,595 -13%

Revenue 5,526 6,730 -18% -18%

Gross profit 1,404 1,254 +12%

Gross margin 25.4% 18.6%

EBITA 499 245 +104%

EBITA margin 9.0% 3.6%

Net results 215 -783

CFFO 887 283 +213%

ROCE 10% 10%

41%

15% 4%

14%

8% 0%

18%

Declining order intake related to Mineral Processing

Interim Report Q3 2014


Q3 order intake by industry (quarterly)

Cement

Coal

Iron ore

Other

Copper Gold

0

2,000

4,000

6,000

8,000

10,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Order intake*) (quarterly)

-3% vs. Q3 2013 DKKm

Announced O&M orders Announced capital orders Unannounced orders

Order intake decreased 4% in Q3’14 (currency adjusted)

Order intake decreased 5% in Q1-Q3’14 (currency adjusted)

*) Cembrit not included in order intake. Generates quarterly revenue of around DKK 350-400m

Fertilisers



Growth Customer Services

Material Handling

Mineral Processing

Cement Group

Growth (currency adj.)

-11% 68% -46% 44% -4%

Currency effect

0% 2% 0% 3% 1%

Total -11% 70% -46% 47% -3%

Order intake growth Q3’14 vs. Q3’13

Industry Country/ Region

Value DKK

Booked by (Division)

Coal Vietnam 302 Material Handling

Cement DRC 507 Cement

Total 809

Announced orders in Q3’14

DKKm Order intake Q3 2014

55% 45%

Service business Capital business

Q3 2013: 57%

Customer Services order intake up 10% excl. O&M

Book-to-bill ratio slightly improving



0.96

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Order backlog (quarterly)

-13% vs. Q3 2013 DKKm Book-to-bill ratio*

*Order backlog divided by last 12 months revenue (excl. Cembrit)

Expected backlog conversion to revenue:

24% in 2014

56% in 2015

20% in 2016 and beyond

1,736

1,081

2,393

1,385

2,081

1,047 1,180 938

Revenue decline due to lack of large projects last year



0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Revenue (quarterly)

-18% vs. Q3 2013 DKKm

Revenue Q3’14 vs. Q3’13 - by division

Material Handling

Mineral Processing

Cement

Q3’14 Q3’13 Q3’14 Q3’13 Q3’14 Q3’13 Q3’14 Q3’13

Customer Services

Revenue flat in Q3 vs. previous quarter

18.2% 15.1%

21.3%

11.6%

27.2%

17.9%

29.0%

19.1%

Gross margin increased for all divisions vs. Q3’13



Gross margin

26.0%

18.6% 25.4%

0%

10%

20%

30%

40%

0

500

1,000

1,500

2,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Gross profit (quarterly)

DKKm

Increase in gross margin attributable to all divisions and Cembrit

Benefits of the efficiency programme are continuously materialising

Comparison period Q3’13 was impacted by inventory write-down and EP one-off costs

Gross margin Q3’14 vs. Q3’13 - by division

Customer Services

Material Handling

Mineral Processing

Cement

Q3’14 Q3’13 Q3’14 Q3’13 Q3’14 Q3’13 Q3’14 Q3’13

SG&A ratio decreased sequentially



SG&A ratio*

14.7% 13.8% 14.6%

0%

3%

6%

9%

12%

15%

18%

0

200

400

600

800

1,000

1,200

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

SG&A costs (quarterly)

DKKm

*) SG&A ratio: SG&A costs (Sales, General and Administration) divided by revenue

SG&A included one-off costs of DKK 18m in Q3’14 (DKK 72m in Q3’13)

SG&A ratio declined 1.1%-point sequentially

Increase in EBITA margin due to better performance in Customer Services, Material Handling, Cement and Cembrit, and an estimated DKK 135m positive impact in Q3 from the efficiency programme

EBITA margin increased as expected



EBITA margin

EBITA (quarterly)

104% vs. Q3 2013 DKKm DKKm

EBITA bridge Q3’14 vs. Q3’13

9.8%

3.6%

9.0%

0%

3%

6%

9%

12%

15%

0

200

400

600

800

1,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

245

499

352 131 66

277

17

0

100

200

300

400

500

600

700

2,995 2,761

200

85 121

5 294

351

2,000

2,500

3,000

3,500

Working capital developments

Working capital reduced by DKK 234m vs. Q2’14 - reduced by DKK 460m in local currencies



Net working capital

DKKm End Q3 2014 vs. End Q2 2014 DKKm

2,930

2,285

2,761

0

500

1,000

1,500

2,000

2,500

3,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

34

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

Net work-in-progress

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Net prepayments

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Inventories

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Trade payables

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Trade receivables

Work-in-progress improved further in Q3



Change in NWC had a DKK 267m positive impact on cashflow from operating activities

WIP improved by DKK 294m in Q3

Increase in inventories mainly due to currency effect

DKKm

DKKm DKKm DKKm

DKKm

Significant free cash flow in Q3 and now also positive free cash flow year to date

Acquisitions are currently on hold and other investments are managed closely

CFFI in Q3 included a deferred payment of DKK 94m related to the acquisition of MIE

Strong cash flow from operations in Q3 2014



CFFO (quarterly) DKKm

CFFI (quarterly)

DKK -152m in Q3 2014 DKKm DKK 887m in Q3 2014

(192) (152)

(300)

(200)

(100)

0

100

200

300

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

283

887

(1,000)

(500)

0

500

1,000

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Capital structure - still affected by special items booked in 2013



NIBD (quarterly) DKKm

-

1.0

2.0

3.0

4.0

5.0

6.0

0

1,000

2,000

3,000

4,000

5,000

6,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Gearing 2.6x EBITDA Gearing target (self-imposed)

0%

10%

20%

30%

40%

50%

0

2,000

4,000

6,000

8,000

10,000

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Equity (quarterly)

DKKm Equity ratio Equity ratio 28%

Equity ratio target (self-imposed)

Gearing significantly lower but remains outside target of maximum 2 times EBITDA - still impacted by one-off costs booked in Q4’13

Gearing expected to be close to target by the end of 2014

Acquistion of treasury shares had an adverse impact of DKK 144m on NIBD in Q3

NIBD / EBITDA

ROCE (calculated as a 12 months’ average) is still impacted by special items in Q4’13

Adjusted for special items registered in Q4’13, ROCE is 12% vs. reported 10%

Guidance for 2014: ROCE 11-13%

Return on capital employed increased to 10%



ROCE* (quarterly) Average capital employed

DKKm

0%

5%

10%

15%

20%

25%

30%

0

3,000

6,000

9,000

12,000

15,000

18,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

ROCE

10% in Q3 2014

*) ROCE: Return on capital employed calculated on a before tax basis, including goodwill and based on last 12 months’ EBITA and average capital employed

ROCE target

Guidance


Group Guidance 2014 Actual YTD

Revenue DKK 21-24bn DKK 16.4bn

EBITA margin 7-9% 7.9%

CFFI (excl. acquisitions) ~DKK -0.5bn (previously DKK -0.4bn) DKK -0.2bn

ROCE 11-13% 10%

Group guidance 2014 (change to CFFI)

Divisional guidance 2014 Upgrade in Cembrit

Guidance


Segments Guidance 2014

Revenue (DKK) 2014 YTD EBITA margin 2014 YTD

Customer Services 7.5-8.5bn 5.8bn 13-15% 14.1%

Material Handling 3.5-4.5bn 3.0bn 0-2% 1.2%

Mineral Processing 5.5-6.5bn 4.0bn 6-8% 5.2%

Cement 3.5-4.5bn 3.0bn 5-7% 6.3%

Cembrit ~1.5bn (~1.4bn) 1.2bn 3-5% (0-2%) 6.0%

Key highlights in Q3’14 Strong cash flow from operations Significant margin improvements Reduction in net working capital Great safety performance Weak order intake in line with industry

We manage the cyclical downturn… ….and prepare for the upturn


Forward-looking statements



FLSmidth & Co. A/S’ financial reports, whether in the form of annual reports or interim reports, filed with the Danish Business Authority and/or announced via the company’s website and/or NASDAQ OMX Copenhagen, as well as any presentations based on such financial reports, and any other written information released, or oral statements made, to the public based on this interim report or in the future on behalf of FLSmidth & Co. A/S, may contain forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Examples of such forward-looking statements include, but are not limited to: • statements of plans, objectives or goals for future operations, including those related to FLSmidth & Co. A/S markets, products, product research and product

development • statements containing projections of or targets for revenues, profit (or loss), capital expenditures, dividends, capital structure or other net financial items • statements regarding future economic performance, future actions and outcome of contingencies such as legal proceedings and statements regarding the underlying

assumptions or relating to such statements • statements regarding potential merger & acquisition activities. These forward-looking statements are based on current plans, estimates and projections. By their very

nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which may be outside FLSmidth & Co. A/S’s influence, and which could materially affect such forward-looking statements.

FLSmidth & Co. A/S cautions that a number of important factors, including those described in this presentation, could cause actual results to differ materially from those contemplated in any forward-looking statements. Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and exchange rate fluctuations, delays or faults in project execution, fluctuations in raw material prices, delays in research and/or development of new products or service concepts, interruptions of supplies and production, unexpected breach or termination of contracts, market-driven price reductions for FLSmidth & Co. A/S’ products and/or services, introduction of competing products, reliance on information technology, FLSmidth & Co. A/S’ ability to successfully market current and new products, exposure to product liability and legal proceedings and investigations, changes in legislation or regulation and interpretation thereof, intellectual property protection, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign enterprises, unexpected growth in costs and expenses, failure to recruit and retain the right employees and failure to maintain a culture of compliance. Unless required by law FLSmidth & Co. A/S is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this presentation.

Questions & Answers Next update: Capital Markets Day on 11 December 2014 Follow us on Twitter and LinkedIn


Appendices - backup slides


Customer Services


Decrease in order intake related to operation and maintenance. All other activities increased 10%

O&M order booked and announced in Q3’13, but the value was not disclosed

Strong revenue and significant margin improvement

Customer Services


0

1,000

2,000

3,000

4,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Order intake (quarterly)

-11% vs. Q3 2013 DKKm

Announced O&M orders Announced capital orders Unannounced orders

Revenue (quarterly)

DKKm EBITA margin 20% vs. Q3 2013

0%

4%

8%

12%

16%

20%

0

500

1,000

1,500

2,000

2,500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Customer Services

Customer Services


(DKKm) Q3

2014 Q3

2013 Change

Q1-Q3 2014

Q1-Q3 2013

Change

2013

Expected 2014

Order intake 1,880 2,109 -11% 5,747 5,973 -4% 8,005

Order backlog 7,977 8,325 -4% 7,977 8,325 -4% 8,046

Revenue 2,081 1,736 20% 5,805 5,565 4% 7,565 DKK 7.5-8.5bn

EBITDA 316 53 +496% 890 568 57% 768

EBITA 287 29 +893% 816 496 65% 691

EBITA margin 13.8% 1.7% 14.1% 8.9% 9.1% 13-15%

EBIT 256 -531 721 -1101) 411)

EBIT margin 12.3% -30.6% 12.4 -2.01) 0.5%1)

1) Including Ludowici impairment loss of DKK -539

Material Handling


Stable unannounced orders and a large DKK 302m coal order in Vietnam

EBITA margin remains positive

Improved earnings and order intake

Material Handling


0

500

1,000

1,500

2,000

2,500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014


70% vs. Q3 2013 DKKm

111111

Announced orders Unannounced orders

Revenue (quarterly)

DKKm EBITA margin -3% vs. Q3 2013

-50%-40%-30%-20%-10%0%10%20%30%40%50%

-2,500-2,000-1,500-1,000

-5000

5001,0001,5002,0002,500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Material Handling

Material Handling


(DKKm) Q3

2014 Q3

2013 Change

Q1-Q3 2014

Q1-Q3 2013

Change

2013

Expected 2014

Order intake 1,082 638 70% 2,975 3,282 -9% 4,937

Order backlog 4,501 4,465 1% 4,501 4,465 1% 4,465

Revenue 1,047 1,081 -3% 3,047 3,080 -1% 4,552 DKK 3.5-4.5bn

EBITDA 47 -19 88 -440 -455

EBITA 26 -34 37 -482 -511

EBITA margin 2.5% -3.1% 1.2% -15.6% -11.2% 0-2%

EBIT 6 -46 -22 -531 -598

EBIT margin 0.6% -4.3% -0.7% -17.2% -13.1%

*) Q2’13 earnings included one-off costs of DKK 323m related to legacy order backlog

No new problematic projects identified

12 projects out of a total portfolio of 181 projects

in the Material Handling Business Unit are

currently regarded as risky (end of Q2 2014: 12 projects)

These projects accounted for DKK 251m or 6%

of the backlog at the end of Q2 (end of Q1 2014: DKK

284m or 7%)

The one-off costs of DKK 323m realised in Q2 2013 still expected to cover completion of the legacy projects

Status on legacy projects in Material Handling

Material Handling


Mineral Processing


Decline in unannounced orders reflects continued mining capex downturn

Stable EBITA margin despite significantly lower revenue

Revenue decreasing as a result of declining order intake in 2013-2014

Weak order intake but margin holding up

Mineral Processing


Revenue (quarterly)


0%

3%

6%

9%

12%

15%

18%

21%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

0

500

1,000

1,500

2,000

2,500

3,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014


-46% vs. Q3 2013 DKKm


Mineral Processing

Mineral Processing


(DKKm) Q3

2014 Q3

2013 Change

Q1-Q3 2014

Q1-Q3 2013

Change

2013

Expected 2014

Order intake 809 1,510 -46% 3,171 4,534 -30% 5,559

Order backlog 4,319 6,749 -36% 4,319 6,749 -36% 4,993

Revenue 1,180 2,393 -51% 3,951 6,880 -43% 9,256 DKK 5.5-6.5bn

EBITDA 99 233 -58% 269 676 -60% 850

EBITA 77 215 -64% 204 604 -66% 757

EBITA margin 6.4% 9.0% 5.2% 8.8% 8.2% 6-8%

EBIT 46 -177 112 123 -9% 2111)

EBIT margin 3.8% -7.4% 2.8% 1.8% 2.3%1)

1) Including Ludowici impairment loss of DKK -362

Cement


0

500

1000

1500

2000

2500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Order intake increased due to a DKK 507m greenfield contract in DR Congo

Revenue and EBITA margin as expected

Improved earnings and solid order intake

Cement


Revenue (quarterly)


-5%

0%

5%

10%

15%

20%

25%

-500

0

500

1000

1500

2000

2500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014


+47% vs. Q3 2013 DKKm


Cement

Cement


(DKKm) Q3

2014 Q3

2013 Change

Q1-Q3 2014

Q1-Q3 2013

Change

2013 Expected

2014

Order intake 916 624 47% 2,722 2,267 20% 3,417

Order backlog 5,234 5,706 -8% 5,234 5,706 -8% 5,389

Revenue 938 1,385 -32% 2,988 3,705 -19% 5,201 DKK 3.5-4.5bn

EBITDA 76 47 62% 214 196 9% 161

EBITA 67 38 76% 188 168 12% 124

EBITA margin 7.1% 2.7% 6.3% 4.5% 2.4% 5-7%

EBIT 61 31 97% 170 153 11% 95

EBIT margin 6.5% 2.2% 5.7% 4.1% 1.8%

Cembrit


Cembrit is a leading distributor and manufacturer of fibre-cement products in Europe and the only remaining building materials company in FLSmidth

Cembrit is reported as continuing activities but developed as a non-core stand-alone business to be divested in 2-3 years

Cembrit improvement programme on track

Cembrit


0

500

1000

1500

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

DKMM

DKMM

Revenue (quarterly) DKKm EBITA margin +6% vs. Q3 2013

-25%-20%-15%-10%-5%0%5%10%15%20%25%

-500-400-300-200-100

0100200300400500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

DKKm Q3 2014 Q3 2013 change

Revenue 424 401 +6%

EBITA 51 -7

EBITA margin 12.1% -1.7%

EBIT 49 -8

EBIT margin 11.8% -2.0%

Order intake growth by segment




Material Handling

Mineral Processing

Cement Group


-11% 67% -46% 44% -4%

Currency effect

0% 2% 0% 3% 1%

Total -11% 69% -46% 47% -3%

Order intake growth Q3’14 vs. Q3’13

Industry Country/ Region

Value DKK

Booked by (Division)

Coal Vietnam 302 Material Handling

Cement DR Congo 507 Cement

Total 809

Announced orders in Q3’14 0

2,000

4,000

6,000

8,000

10,000

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014


-3% vs. Q3 2013 DKKm

Revenue growth by segment




Material Handling

Mineral Processing

Cement Group


21% -2% -50% -32% -18%

Currency effect

-1% -1% -1% 0% 0%

Total 20% -3% -51% -32% -18%

Revenue growth Q3’14 vs. Q3’13

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Revenue (quarterly)

-18% vs. Q3 2013 DKKm

Book-to-bill ratio slightly improving



0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Order backlog (quarterly)

-13% vs. Q3 2013 DKKm Book-to-bill ratio*

*Order backlog divided by last 12 months revenue

Expected backlog conversion to revenue:

27% in 2014

53% in 2015

20% in 2016 and beyond.

O&M contracts accounted for DKK 4.8bn (22%) of the order backlog at the end of Q3

Revenue and order intake by segment

40%

23%

17%

20%



Order intake Q3 2014 – classified by segment

Customer Services

Material Handling

Cement

37%

18%

21%

17%

7%

Material Handling

Mineral Processing

Revenue Q3 2014 – classified by segment

Customer Services Cement

Mineral Processing

Cembrit

Currency effects on net working capital in Q3

Net working capital


DKKm End Q3 2014

End Q2 2014

Change Change in local

currencies

Currency effect

Inventories 2,930 2,730 +200 +69 +131

Trade Receivables

5,164 5,169 -5 -218 +213

Trade Payables

2,478 2,599 -121 -205 +85

WIP net 34 -260 +294 +315 +21

Prepayments net 1,760 1,845 -85 -128 +43

NWC total 2,761 2,995 -234 -460 +226

Number of employees decreasing



Number of employees Q3’14 vs. Q3’13 - by segment

5,916

3,413 2,994

2,331

6,513

2,928

2,257 2,083

Customer Services

Material Handling

Mineral Processing

Cement

Q3’14 Q3’13

Total number of employees Q3’14: 14,861

Number of employees decreased by 874 vs. Q3’13 and decreased by 91 vs. Q2’14

Decline explained by efficiency programme and business right-sizing

Increase in Customer Services primarily related to blue-collar workers on O&M contracts

Q3’14 Q3’13 Q3’14 Q3’13 Q3’14 Q3’13

Long term financial targets

Targets


Financial targets

Annual revenue growth Above market average

EBITA margin 10-13%

ROCE* > 20%

Tax rate 32-34%

Equity ratio >30%

Financial gearing (NIBD/EBITDA) <2

Pay-out ratio 30-50%

*) ROCE: Return on capital employed calculated on a before tax basis as EBITA divided by average Capital Employed including goodwill

flsmidth 3rd quarter report 2014

Investor Relations

q3 order intake

dkkm q3

year interim report

fertilisers interim

results q3

q314 dkkm order intake

order intake growth

declining order intake