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13 August 2014Interim Report Q2 2014 1
Presentation of Interim Report Q2 2014
Key highlights in Q2’14 Guidance for 2014 unchanged
Improvements in earnings and cash flowDeclining order intake, but stable unannounced orders Revenue and net working capital as expected
Setting the organisation and the team for the future– new divisional structure from 1 January 2015
13 August 2014Interim Report Q2 2014 2
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Mining capexClose to the troughFlattish or slightly declining in 2015Slow growth expected in 2016Focus on productivity enhancing investments
Cement capexLevel of activity in 2014 similar to 2013 or slightly higher, however locally impacted by geopolitical tensionsIncreasing utilisation rates to underpin growth in coming years
Customer Services resilient and growing
Overall market trends unchanged
Market update
13 August 2014Interim Report Q2 2014 3
Strong improvement in safety performance in Q2LTIFR (lost time injury frequency rate) decreased to 2.5 (Q1’14: 3.9)(2014 target: below 3.5)
Business right-sizing in Mineral ProcessingMore than 300 people have been given notice in the quarter
Mobilisation on O&M contracts in Nigeria and Tunisia
More than 450 workers have been recruited since the beginning of the year
Operational highlights in Q2 2014
Operation highlights
13 August 2014Interim Report Q2 2014 4
0
1
2
3
4
5
LTIFR Lost time injury frequency rate
(per 1 mill. working hours)
2014 Target
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Sustainable technology highlights in Q2 2014
Technology highlights
13 August 2014Interim Report Q2 2014 5
Commercialization of the new Rotor-Stator Combination for Dorr-Oliver forced air flotation machine
Improves selectivityMaintain recovery at lower consumed power
Commercial application of the Vortex Stabilizer™ Enhancement of the WEMCO® flotation machine, reducing the wave on the surface and allowing for better process control
Improved product quality with less operational issues in customers’ cement grinding and storage units through site and chemical studies in the ‘Silo Safe Cement’ project
Efficiency programme on track
Efficiency Programme
13 August 2014Interim Report Q2 2014 6
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 +630m p.a.
Estimated EBITA improvement in Q2’14 DKK ~120m
One-off costs recognised in 2013-2014 DKK -485m
One-off costs recognised in Q2’14 DKK -12m
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Order intake declined due to lack of large orders
Revenue as expected
EBITA margin improved significantly due to efficiency programme and less impact from one-off costs
Net working capital slightly down vs. previous quarter
Positive operating cashflow
Financial performance in Q2 2014
Results Q2 2014
13 August 2014 7Interim Report Q2 2014
FLSmidth & Co. A/S(DKKm)
Q2 2014
Q22013 Change Change
FX adjusted
Order intake 4,643 5,626 -17% -12%Order backlog 21,713 26,983 -20%Revenue 5,577 6,852 -19% -14%Gross profit 1,432 1,298 +10%Gross margin 25.7% 18.9%EBITA 472 310 +52%EBITA margin 8.5% 4.5%Net results 237 142 +76%CFFO 224 -51Net working capital 2,995 2,597 +15%ROCE 8% 14%
37%
18%7%5%5%
0%
28%
Stable unannounced order intake
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 8
Q2 order intake by industry (quarterly)
Cement
Coal
Iron ore
Other
Copper
Gold0
2,000
4,000
6,000
8,000
10,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)
-17% vs. Q2 2013DKKm
Announced O&M ordersAnnounced capital ordersUnannounced orders
Order intake decreased 12% in Q2’14 (currency adjusted)
Order intake decreased 5% in H1’14 (currency adjusted)
Cembrit not included in order intake. Generates quarterly revenue of around DKK 350-400m
Fertilisers
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Service activities accounted for 50% of Q2 order intake- include Customer Services and service business residing in capital divisions
Interim Report Q2 2014
Interim Report Q2 2014 9
Revenue Q2 2014
13 August 2014
Order intake Q2 2014
45%55%
Capital business
50%50%
Service businessCapital businessService business
Q2 2013: 40% Q2 2013: 44%
Gross margin at highest level since Q3’12
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 10
Gross margin
24.9% 18.9%25.7%
0%
10%
20%
30%
40%
0
500
1,000
1,500
2,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Gross profit (quarterly)DKKm
Increase in gross margin mainly due to improved performance in Material Handling, where margins in Q2 2013 were significantly impacted by one-off costs
Gross margin Q2’14 vs. Q2’13- by division
28.2%
-17.9%
22.0% 18.2%30.7% 23.8%
23.0% 16.7%
CustomerServices
MaterialHandling
MineralProcessing
Cement
Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13
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2,020
944
2,477
1,304
1,954
9601,355
1,087
Revenue decline related to Mineral Processing
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 11
01,0002,0003,0004,0005,0006,0007,0008,0009,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Revenue (quarterly)-19% vs. Q2 2013DKKm
Revenue Q2’14 vs. Q2’13- by division
MaterialHandling
MineralProcessing
CementQ2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13
CustomerServices
SG&A costs stable sequentially despite increase in revenue
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 12
SG&A ratio*
13.8%13.0%
15.7%
0%
3%
6%
9%
12%
15%
18%
0
200
400
600
800
1,000
1,200
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
SG&A costs (quarterly)
DKKm
*) SG&A ratio: SG&A costs (Sales, General and Administration) divided by revenue
SG&A included one-offcosts of DKK 47m in Q2’14 (DKK 65m in Q2’13)
SG&A costs are moving in the right direction
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Increase in EBITA margin primarily due to better performance in Material Handling and an estimated DKK 120m positive impact in Q2 from the efficiency programme
EBITA margin increased as expected
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 13
EBITA margin
10.0%
4.5%8.5%
0%
3%
6%
9%
12%
15%
0
200
400
600
800
1,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
EBITA (quarterly)46% vs. Q2 2013DKKm DKKm
EBITA bridge Q2’14 vs. Q2’13
310 472
323 113 18 10 302
0
200
400
600
800
-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
Significant improvement in overdue receivables and WIP
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 14
Significant reduction in WIP assets by DKK 0.9bn, as work has been advanced to invoicing stage, transitioning into trade receivables
Long overdue receivables (>6 months) were reduced by DKK 0.3bn in Q2, now accounting for 21% of total receivables (Q1’14: 27%)
DKKm
DKKm DKKm DKKm
DKKm
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Change in net working capital
3,040 2,995
309
164 117 78 209 922
-
1,000
2,000
3,000
4,000
5,000
Working capital slightly down - some positive highlights
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 15
Net working capitalDKKm End Q2 2014 vs. End Q1 2014DKKm
2,117
2,597 2,995
0
500
1,000
1,500
2,000
2,500
3,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Acquisitions are currently on hold and other investments are managed closely
CFFO in Q2 included penalty of DKK -108m imposed on former subsidiary FLS Plast A/S by European Court of Justice
CFFI in Q2 included final earn-out of DKK -100m in connection with the acquition of Knelson in 2011
Positive free cash flow in Q2
Interim Report Q2 2014
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CFFO (quarterly)DKKm
CFFI (quarterly)DKK -157m in Q2 2014DKKmDKK 224m in Q2 2013
(166) (157)
(600)(400)(200)
0200400
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
(51)
224
(600)(400)(200)
0200400
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
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ROCE (calculated as a 12 months’ average) is still impacted by special items in 2013
Adjusted for special items registered in 2013, ROCE is 13% vs. reported 8%
Guidance for 2014: ROCE 11-13%
Return on capital employed increased to 8%
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 17
ROCE* (quarterly)Average capital employed
DKKm
0%5%10%15%20%25%30%
03,0006,0009,000
12,00015,00018,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
ROCE8% in Q2 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
13 August 2014Interim Report Q2 2014 18
Group Guidance 2014 Actual H1’14
Revenue DKK 21-24bn DKK 10.9bn
EBITA margin 7-9% 7.3%
CFFI ~DKK -0.4bn DKK -0.2bn
ROCE 11-13% 8%
Group guidance 2014 unchanged
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Divisional guidance 2014 unchanged
Guidance
13 August 2014Interim Report Q2 2014 19
Segments Guidance 2014
Revenue (DKK) H1 2014 EBITA margin H1 2014
Customer Services 7.5-8.5bn 3.7bn 13-15% 14.2%
Material Handling 3.5-4.5bn 2.0bn 0-2% 0.6%
Mineral Processing 5.5-6.5bn 2.8bn 6-8% 4.6%
Cement 3.5-4.5bn 2.1bn 5-7% 5.9%
Cembrit 1.4bn 0.8bn 0-2% 2.6%
Focus on efficiency:Navigate through cyclical downturnEfficiency programmeBusiness right-sizing
Focus on growth:Sustainable profitable growth
O&M (operation & maintenance)EPC (engineering, procurement, construction)Fully leverage product companies
Preparing for sustainable profitable growth
New divisional structure
January 2014Investor presentation 20
profitable growth
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Material Handling and Mineral Processing will be merged into a Minerals division
Product companies, currently residing in all four divisions, will be separated out to form a new Product Companies division
Comparison numbers to be published in connection with a Capital Market Day in the fourth quarter of 2014
New divisional structure from 1 January 2015
New divisional structure
21
FLSmidth
Customer Services
MaterialHandling
Mineral Processing Cement
FLSmidth
Customer Services Minerals Cement Product
Companies
New Group Structure from 1 January 2015
Present Group Structure
The new organisation is a natural continuation of the strategy health check performed in 2013
The new organisation will increase operational efficiency through:
Homogeneous business models and KPIsSegmented customer approachDistinct management skills and competenciesLower complexity and greater transparency
Position the Group to reap the benefits of cyclical industries, where demand for products, projects and services vary over time
Provide a foundation for globalisation of product companies
Organising for sustainable profitable growth
New divisional structure
22
New divisional structure from 1 January 2015
Global mining investment cycle
FLSmidth
Customer Services Minerals Cement Product
Companies
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Thomas SchulzGroup CEO
Customer ServicesBrian Day
Group ExecutiveVice President
MineralsManfred Schaffer
Group ExecutiveVice President
CementPer M. Kristensen
Group ExecutiveVice President
Product CompaniesBjarne M. Hansen
Group ExecutiveVice President
Human ResourcesVirve E. MeesakGroup ExecutiveVice President
Business DevelopmentEric T. PoupierGroup ExecutiveVice President
Lars VestergaardGroup CFO
Group Executive Management from 1 January 2015
New Group structure
23
Key highlights in Q2’14
Guidance for 2014 unchanged
Significant improvement in earnings
Setting the organisation and the team for the future
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Forward-looking statements
Annual Report 2013
13 August 2014Interim Report Q2 2014 25
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 costsand 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: Q3 Interim Report on 7 November 2014Capital Markets Day in Q4 2014
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13 August 2014Interim Report Q2 2014 26
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Appendices- backup slides
13 August 2014Interim Report Q2 2014 27
Customer Services
13 August 2014Interim Report Q2 2014 28
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Solid earnings in the quarter despite lower reported revenue
Revenue increased 3% (adjusted for currency)
Order intake on same level as last year adjusted for currency
Stable order intake adjusted for currency
Customer Services
13 August 2014Interim Report Q2 2014 29
0
1,000
2,000
3,000
4,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)-5% vs. Q2 2013DKKm
Announced O&M ordersAnnounced capital ordersUnannounced orders
Revenue (quarterly)DKKm EBITA margin-3% vs. Q2 2013
0%
4%
8%
12%
16%
20%
0
500
1,000
1,500
2,000
2,500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Customer Services
Customer Services
13 August 2014Interim Report Q2 2014 30
(DKKm) Q22014
Q22013 Change 2013 Expected
2014
Order intake 1,801 1,900 -5% 8,005
Order backlog 8,169 7,979 2% 8,046
Revenue 1,954 2,020 -3% 7,565 DKK 7.5-8.5bnEBITDA 323 320 +1% 768
EBITA 300 298 +1% 691
EBITA margin 15.4% 14.8% 9.1% 13-15%EBIT 268 277 -3% 411)
EBIT margin 13.7% 13.7% 0.5%1)
1) Including Ludowici impairment loss of DKK -539
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Material Handling
13 August 2014Interim Report Q2 2014 31
First quarter since Q2’12 with a positive EBITA margin
No large orders booked in the quarter. Order of DKK 302m received from Vietnam in July’14
Significant improvement in earnings
Material Handling
13 August 2014Interim Report Q2 2014 32
0
500
1,000
1,500
2,000
2,500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)-19% vs. Q2 2013DKKm
111111
Announced ordersUnannounced orders
Revenue (quarterly)DKKm EBITA margin2% vs. Q2 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
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
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Material Handling
Material Handling
13 August 2014Interim Report Q2 2014 33
(DKKm) Q22014
Q22013 Change 2013 Expected
2014
Order intake 836 1,028 -19% 4,937
Order backlog 4,334 4,976 -13% 4,465
Revenue 960 944 2% 4,552 DKK 3.5-4.5bnEBITDA 57 -356*) -455
EBITA 39 -369*) -511
EBITA margin 4.1% -39.1% -11.2% 0 -2%EBIT 20 -387*) -598
EBIT margin 2.1% -41.0% -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 201 projects in the Material Handling Business Unit are currently regarded as risky (end of Q1 2014: 14 projects)
These projects accounted for DKK 284m or 7%of the backlog at the end of Q2 (end of Q1 2014: DKK 356m or 8%)
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
13 August 2014Interim Report Q2 2014 34
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Mineral Processing
13 August 2014Interim Report Q2 2014 35
First announced order since Q4’12, whereas unannounced orders remain at a low level
Business right-sizing resulting in reduction of more than 300 jobs across the division in Q2’14
Revenue decreasing as a result of declining order intake in 2013
First announced order in Mineral Processing since Q4’12
Mineral Processing
13 August 2014Interim Report Q2 2014 36
Revenue (quarterly)DKKm EBITA margin-45% vs. Q2 2013
0%3%6%9%12%15%18%21%
0500
1,0001,5002,0002,5003,0003,500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
0500
1,0001,5002,0002,5003,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)-21% vs. Q2 2013DKKm
Announced ordersUnannounced orders
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Mineral Processing
Mineral Processing
13 August 2014Interim Report Q2 2014 37
(DKKm) Q22014
Q22013 Change 2013 Expected
2014
Order intake 1,321 1,679 -21% 5,559
Order backlog 4,685 7,891 -41% 4,993
Revenue 1,355 2,477 -45% 9,256 DKK 5.5-6.5bnEBITDA 81 292 -72% 850
EBITA 59 259 -77% 757
EBITA margin 4.4% 10.5% 8.2% 6-8%EBIT 28 212 -87% 2111)
EBIT margin 2.1% 8.6% 2.3%1)
1) Including Ludowici impairment loss of DKK -362
Cement
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0
500
1000
1500
2000
2500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
No large orders, but good quarter in terms of unannounced orders
Revenue and EBITA margin as expected
Highest level of unannounced orders in 3 years
Cement
13 August 2014Interim Report Q2 2014 39
Revenue (quarterly)DKKm EBITA margin-17% vs. Q2 2013
-5%0%5%10%15%20%25%
-5000
5001000150020002500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)-34% vs. Q2 2013DKKm
Announced ordersUnannounced orders
Cement
Cement
13 August 2014Interim Report Q2 2014 40
(DKKm) Q22014
Q22013 Change 2013
Expected2014
Order intake 878 1,335 -34% 3,417
Order backlog 5,146 6,847 -25% 5,389
Revenue 1,087 1,304 -17% 5,201 DKK 3.5-4.5bnEBITDA 66 101 -35% 161
EBITA 58 91 -36% 124
EBITA margin 5.3% 7.0% 2.4% 5-7%EBIT 52 85 95
EBIT margin 4.8% 6.5% 1.8%
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Cembrit
Q1 2012Investor presentation 41
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
Q1 2012Investor presentation 42
Revenue (quarterly)
DKKm EBITA margin+4% vs. Q2 2013
-25%-20%-15%-10%-5%0%5%10%15%20%25%
-500-400-300-200-100
0100200300400500
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
DKKm Q2 2014 Q2 2013 change
Revenue 410 395 +4%
EBITA 15 23
EBITA margin 3.7% 5.8% -34%
EBIT 14 22
EBIT margin 3.4% 5.6% -36%
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Order intake growth by segment
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 43
Growth CustomerServices
Material Handling
Mineral Processing
Cement Group
Growth (currency adj.)
0% -16% -14% -33% -12%
Currency effect
-5% -3% -7% -1% -5%
Total -5% -19% -21% -34% -17%
Order intake growth Q2’14 vs. Q2’13
Industry Country/Region
ValueDKK
Booked by(Division)
Copper-molybdenum
Mongolia 231 Mineral Processing
Total 231
Announced orders in Q2’140
2,000
4,000
6,000
8,000
10,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order intake (quarterly)
-17% vs. Q2 2013DKKm
Revenue growth by segment
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 44
Growth CustomerServices
Material Handling
Mineral Processing
Cement Group
Growth (currency adj.)
2% 8% -41% -15% -14%
Currency effect
-6% -6% -4% -2% -5%
Total -4% -2% -45% -17% -19%
Revenue growth Q2’14 vs. Q2’13
01,0002,0003,0004,0005,0006,0007,0008,0009,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Revenue (quarterly)-19% vs. Q2 2013DKKm
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23
Decline in order backlog levelling out
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 45
0.200.400.600.801.001.201.401.60
05,000
10,00015,00020,00025,00030,00035,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Order backlog (quarterly)-20% vs. Q2 2013DKKm Book-to-bill ratio*
*Order backlog divided by last 12 months revenue
Expected backlog conversion to revenue:
40% in 2014
44% in 2015
16% in 2016 and beyond.
O&M contracts accounted for DKK 5.1bn (23%) of the order backlog at the end of Q2
Revenue and order intake by segment
37%
17%
28%
18%
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 46
Order intake Q2 2014– classified by segment
Customer Services
Material Handling
Cement
34%
17%23%
19%
7%
Material HandlingMineral Processing
Revenue Q2 2014 – classified by segment
Customer ServicesCement
Mineral Processing
Cembrit
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Capital structureStill affected by special items booked in 2013
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 47
NIBD (quarterly)DKKm
- 1.0 2.0 3.0 4.0 5.0 6.0
01,0002,0003,0004,0005,0006,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Gearing 3.3x EBITDAGearing target (self-imposed)
0%
10%
20%
30%
40%
50%
0
2,000
4,000
6,000
8,000
10,000
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Equity (quarterly)DKKm Equity ratioEquity ratio 28%
Equity ratio target (self-imposed)
Gearing temporarily impacted by one-off costs booked in 2013 and currently outside target of maximum 2 times EBITDA – expected to normalise towards the end of the year
Gearing expected to be close to target by the end of 2014
NIBD / EBITDA
Number of employees decreasing
Interim Report Q2 2014
13 August 2014Interim Report Q2 2014 48
Number of employees Q2’14 vs. Q2’13- by segment
5,859
3,585 3,021
2,335
6,382
2,974 2,419 2,104
CustomerServices
MaterialHandling
MineralProcessing
Cement
Q2’14Q2’13
Total number of employees Q2’14: 14,952
Number of employees decreased by 925 vs. Q2’13 and decreased by 93 vs. Q1’14
Decline explained by efficiency programme and business right-sizing
Increase in Customer Services primarily related to blue-collar workers on O&M contracts
Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13
13/08/2014
25
Long term financial targets
Targets
13 August 2014Interim Report Q2 2014 49
Financial targets
Annual revenue growth Above market averageEBITA margin 10-13%ROCE* > 20%Tax rate 32-34%Equity ratio >30%Financial gearing (NIBD/EBITDA) <2Pay-out ratio 30-50%
*) ROCE: Return on capital employed calculated on a before tax basis as EBITA divided by average Capital Employed including goodwill
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