Interim Report Q1 201215 May 2012Interim Report Q1 2012 1
Forward-looking statementsInterim Report Q1 201215 May 2012Interim Report Q1 2012 2FLSmidth & Co. A/S’ financial reports, ...
Strong growth in order intake in Q1Full-year Group expectations unchangedWorking capital to be given increased attentionVa...
 Order intake up 29% onQ1’11, and also up 10%sequentially Revenue up 17% due toincreasing order intake last year,particu...
New Group StructureReporting in new Group Structure15 May 2012Interim Report Q1 2012 5
Segment developments28%14%37%21%Interim Report Q1 201215 May 2012Interim Report Q1 2012 6Order intake Q1 2012– classified ...
37%22%13%3%1%24%Distribution of order intake in Q1 201215 May 2012Interim Report Q1 2012 7Order intake 2012– classified by...
 Level of unannounced orders still around DKK ~4bn per quarter Announced orders amounted to DKK 2.3bn in Q1 Order backl...
 Organic growth +13% (excl. currency and acquisitions) Pattern of increasing quarterly revenue over the year likely to b...
Increasing SG&A ratioInterim Report Q1 201215 May 2012Interim Report Q1 2012 10 SG&A ratio typically higher in Q1due to r...
 CFFO adversely affected by increase in working capital in Q1 2012 CFFI amounted to DKK -209m in Q1 related to acquisiti...
Program to manage working capital launched in Q2Interim Report Q1 201215 May 2012Interim Report Q1 2012 12Working capital ...
 Net debt increasing due to negative CFFO in Q1 and relatively high level of investments Equity ratio of 36% comfortably...
Customer Services15 May 2012Interim Report Q1 2012 14
Customer ServicesCustomer Services15 May 2012Interim Report Q1 2012 15CustomerServices(DKK m)Q1 2012 Q1 2011 ChangeFull-ye...
 Strong increase in order intake in Q1 reflection of continued high capacity utilisation as well asreceipt of several sma...
Bulk Materials15 May 2012Interim Report Q1 2012 17
Bulk Materials DivisionBulk Materials15 May 2012Interim Report Q1 2012 18BulkMaterials(DKK m)Q1 2012 Q1 2011 ChangeFull-ye...
 Quarterly order intake inherently volatile, whereas quarterly revenue follows pattern ofincreasing revenue over the cale...
Non-Ferrous15 May 2012Interim Report Q1 2012 20
Non-FerrousNon-Ferrous15 May 2012Interim Report Q1 2012 21Non-Ferrous(DKK m)Q1 2012 Q1 2011 ChangeFull-year2011Expected tr...
 Particularly strong demand for copper and gold solutions Margin slightly under pressure since order backlog is emptied ...
Cement15 May 2012Interim Report Q1 2012 23
CementCement15 May 2012Interim Report Q1 2012 24Cement(DKK m)Q1 2012Q12011ChangeFull-year2011Expected trendin 2012Order in...
0500100015002000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012 In general, proposal activity is high and the list...
Cembrit - Europe’s largest dedicated provider of fibre-cement products15 May 2012Interim Report Q1 2012 26
 The European markets are still impacted by macro economic uncertainty, and activity in thenew build segment remains subd...
Future Outlook15 May 2012Interim Report Q1 2012 28
VISION“We will be our customers’preferred full-service providerof sustainable minerals andcement technologies”15 May 2012I...
Financial targets (unchanged)Future Outlook15 May 2012Interim Report Q1 2012 30Financial targetsAnnual revenue growth Abov...
Group Guidance 2012 Actual 2011Revenue DKK 24-26bn DKK 22bnEBITA ratio >10% 10.9%EBIT ratio 9-10% 9.9%Tax rate 30-32% 31%C...
Key take-awaysOrder intake validates strong underlying demandGroup expectations unchanged despite slow startIncreased focu...
Questions &AnswersVisit FLSmidth at MineExpoin Las Vegas and at our officesin Salt Lake City, USAon 26-27 September 2012Fo...
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FLSmidth 1st Quarter Report Presentation 2012

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FLSmidth first quarter report presentation 2012 was released on 15 May, 2012. Best viewed on a full screen mode, this quarterly report informs the reader about how well FLSmidth's business has performed in the 1st quarter of 2012.

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FLSmidth 1st Quarter Report Presentation 2012

  1. 1. Interim Report Q1 201215 May 2012Interim Report Q1 2012 1
  2. 2. Forward-looking statementsInterim Report Q1 201215 May 2012Interim Report Q1 2012 2FLSmidth & 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 thecompany’s website and/or NASDAQ OMX Copenhagen, as well as any presentations based on such financial reports, and any other written information released, or oralstatements 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 termsof 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 productdevelopment• 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 underlyingassumptions 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 verynature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which may be outside FLSmidth & Co. A/S’s influence, andwhich 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 fromthose 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 ratefluctuations, 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/orservices, 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 ofthis presentation.
  3. 3. Strong growth in order intake in Q1Full-year Group expectations unchangedWorking capital to be given increased attentionVarying segment performance and seasonality15 May 2012Interim Report Q1 2012 3
  4. 4.  Order intake up 29% onQ1’11, and also up 10%sequentially Revenue up 17% due toincreasing order intake last year,particularly in Non-Ferrous andCustomer Services Margins on the weak side,albeit typical for Q1 Net results up 39% due topositive effect from fair value ofcurrency hedge agreements Cash flow from operatingactivities negative due toincrease in working capitalFinancial developments in Q1 2012Q1 Results 201215 May 2012 4FLSmidth & Co. A/S(DKK m)Q1 2012 Q1 2011 ChangeOrder intake 6,421 4,964 +29%Order backlog 28,736 24,033 +20%Revenue 5,145 4,385 +17%Gross margin 25.4% 25.2%EBITA 402 363 +11%EBITA margin 7.8% 8.3%EBIT 334 305 +10%EBIT margin 6.5% 7.0%Net Results 241 173 +39%CFFO (117) (101) -16%Employees 13,500 11,817 +14%Interim Report Q1 2012
  5. 5. New Group StructureReporting in new Group Structure15 May 2012Interim Report Q1 2012 5
  6. 6. Segment developments28%14%37%21%Interim Report Q1 201215 May 2012Interim Report Q1 2012 6Order intake Q1 2012– classified by segmentCustomer ServicesBulk MaterialsCement26%20%32%16%6%Bulk MaterialsNon-FerrousRevenue Q1 2012– classified by segmentCustomer ServicesCementCembritNon-Ferrous
  7. 7. 37%22%13%3%1%24%Distribution of order intake in Q1 201215 May 2012Interim Report Q1 2012 7Order intake 2012– classified by industryInterim Report Q1 2012CementCopperGoldCoalIron oreOtherAnnounced orders in Q1 2012Copper Latin America DKK 500mGold North America DKK 467mCement Mongolia DKK 640mCopper CIS Region DKK 213mCement Brazil DKK 470mTotal DKK 2,290m
  8. 8.  Level of unannounced orders still around DKK ~4bn per quarter Announced orders amounted to DKK 2.3bn in Q1 Order backlog increased 6% in Q1 and is 20% higher than one year ago.Order intake increased 29% in Q1 2012Interim Report Q1 201215 May 2012Interim Report Q1 2012 8-2,0004,0006,0008,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012Order intake (quarterly)+29% vs. Q1 2011DKKm0.800.901.001.101.201.301.401.501.6005,00010,00015,00020,00025,00030,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012Order backlog (quarterly)+20% vs. Q1 2011DKKm Book-to-bill ratioAnnounced O&M ordersAnnounced Capital ordersUnannounced orders
  9. 9.  Organic growth +13% (excl. currency and acquisitions) Pattern of increasing quarterly revenue over the year likely to be repeated in 2012 Q1 margin typically weak, however also adversely impacted by increase in SG&ARevenue increased 17% in Q1 2012Interim Report Q1 201215 May 2012Interim Report Q1 2012 902,0004,0006,0008,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012Revenue (quarterly)+17% vs. Q1 2011DKKm EBITA margin0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%02004006008001000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012EBITA (quarterly)+11% vs. Q1 2011DKKm
  10. 10. Increasing SG&A ratioInterim Report Q1 201215 May 2012Interim Report Q1 2012 10 SG&A ratio typically higher in Q1due to relatively low top-line andconsequently under-absorption of costs Specific reasons for increase inSG&A in Q1 2012 Increase in proposal costs; adding to costsnow, but only revenue later Acquisitions incl. one-offs Under-absorption of costsSG&A ratio0.0%3.0%6.0%9.0%12.0%15.0%18.0%02004006008001,0001,200Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012SG&A (quarterly)+24% vs. Q1 2011DKKm
  11. 11.  CFFO adversely affected by increase in working capital in Q1 2012 CFFI amounted to DKK -209m in Q1 related to acquisition of tangible assets in connection withongoing strategic activities (Supercentres, extension of workshop facilities in China and India)Cash flow from operating and investing activitiesInterim Report Q1 201215 May 2012Interim Report Q1 2012 11CFFO (quarterly)-16% vs. Q1 2011DKKm-400-2000200400600800Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012CFFI (quarterly)-19% vs. Q1 2011DKKm-1,000-800-600-400-2000200Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012
  12. 12. Program to manage working capital launched in Q2Interim Report Q1 201215 May 2012Interim Report Q1 2012 12Working capital (quarterly)+94% vs. Q1 2011DKKm Working capital increased 19% in Q1 toDKK 1,926m Structural reasons for increase in workingcapital: Strategic initiatives in Customer Services Change in business mix towards moremining and less cement Specific reasons for increase in inventoryin Q1 2012 Introduction of division stockingprogrammes in the USA Build up of stock for the summerseason in Cembrit0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%10.0%-2004006008001,0001,2001,4001,6001,8002,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012WC /TTM* SalesTTM : Trailing-Twelve-Months
  13. 13.  Net debt increasing due to negative CFFO in Q1 and relatively high level of investments Equity ratio of 36% comfortably above minimum targeted level of 30% Dividend of DKK 9 per share paid on 10 April 2012 (equivalent to DKK 471m)Capital structureInterim Report 201215 May 2012Interim Report Q1 2012 13NIBD (quarterly)DKKm0%5%10%15%20%25%30%35%40%02,0004,0006,0008,00010,00012,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012Equity (quarterly)DKKm Equity ratio(0.8)(0.6)(0.4)(0.2)-0.20.40.60.8(2,000)(1,500)(1,000)(500)-5001,0001,5002,000Q12010Q22010Q32010Q42010Q12011Q22011Q32011Q42011Q12012Gearing(NIBD/ TTM* EBITDA)Gearing 0.14x EBITDA +14% vs. Q1 2011TTM: Trailing-Twelve-Months
  14. 14. Customer Services15 May 2012Interim Report Q1 2012 14
  15. 15. Customer ServicesCustomer Services15 May 2012Interim Report Q1 2012 15CustomerServices(DKK m)Q1 2012 Q1 2011 ChangeFull-year2011Expected trendin 2012Order intake 1,846 1,355 +36% 5,271 IncreasingOder backlog 6,679 6,304 +6% 6,082Revenue 1,368 1,051 +30% 5,259 IncreasingEBITDA 193 142 +36% 882EBITA 180 128 +41% 838EBITA margin 13.2% 12.2% 15.9% StableEBIT 174 126 +38% 832EBIT margin 12.7% 12.0% 15.8%
  16. 16.  Strong increase in order intake in Q1 reflection of continued high capacity utilisation as well asreceipt of several small rebuild and retrofit projects Clear pattern of increasing quarterly revenue over the calendar year O&M contracts progressing well and Supercenter build-out in line with plansStrong growth in order intake and revenueCustomer Services15 May 2012Interim Report Q1 2012 16Revenue (quarterly)DKKm EBITA margin+30% vs. Q1 20110.0%4.0%8.0%12.0%16.0%20.0%05001,0001,5002,0002,500Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q1201205001,0001,5002,0002,500Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012Order intake (quarterly)+36% vs. Q1 2011DKKm
  17. 17. Bulk Materials15 May 2012Interim Report Q1 2012 17
  18. 18. Bulk Materials DivisionBulk Materials15 May 2012Interim Report Q1 2012 18BulkMaterials(DKK m)Q1 2012 Q1 2011 ChangeFull-year2011Expected trendin 2012Order intake 943 1,641 (43%) 5,482 IncreasingOrder backlog 5,023 5,123 (2%)Revenue 1,060 917 +16% 5,005 IncreasingEBITDA 28 12 +133% 276EBITA 16 6 +167% 225EBITA margin 1.5% 0.7% 4.5% Stable *)EBIT 4 (12) 146EBIT margin 0.4% (1.3%) 2.9%*) previous expectation: Strongly increasing
  19. 19.  Quarterly order intake inherently volatile, whereas quarterly revenue follows pattern ofincreasing revenue over the calendar year List of potential projects remains strong, particularly for conveying and port facilities Focus on operational excellence to improve sub-optimal efficiency in project executionSlow start in terms of order intake and revenueBulk Materials15 May 2012Interim Report Q1 2012 19Revenue (quarterly)DKKm EBITA margin+16% vs. Q1 201105001,0001,5002,000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012Order intake (quarterly)-43% vs. Q1 2011DKKm-4.0%0.0%4.0%8.0%12.0%16.0%-5000500100015002000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012
  20. 20. Non-Ferrous15 May 2012Interim Report Q1 2012 20
  21. 21. Non-FerrousNon-Ferrous15 May 2012Interim Report Q1 2012 21Non-Ferrous(DKK m)Q1 2012 Q1 2011 ChangeFull-year2011Expected trendin 2012Order intake 2,445 1,680 +46% 9,731 StableOrder backlog 9,482 6,032 +57%Revenue 1,722 1,163 +48% 6,766 IncreasingEBITDA 147 132 +11% 859EBITA 135 120 +13% 815EBITA margin 7.8% 10.3% 12.0% Slightly decreasingEBIT 94 87 +8% 689EBIT margin 5.4% 7.5% 10.2%
  22. 22.  Particularly strong demand for copper and gold solutions Margin slightly under pressure since order backlog is emptied for good margin orders taken in2007 and 2008 at more favourable terms and conditions than todayStrong order intake and revenue growthNon-Ferrous15 May 2012Interim Report Q1 2012 22Revenue (quarterly)DKKm EBITA margin+48% vs. Q1 20110.0%3.0%6.0%9.0%12.0%15.0%18.0%05001,0001,5002,0002,5003,000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q1201205001,0001,5002,0002,5003,0003,500Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012Order intake (quarterly)+46% vs. Q1 2011DKKm
  23. 23. Cement15 May 2012Interim Report Q1 2012 23
  24. 24. CementCement15 May 2012Interim Report Q1 2012 24Cement(DKK m)Q1 2012Q12011ChangeFull-year2011Expected trendin 2012Order intake 1,415 527 +169% 4,439 Slightly increasingOrder backlog 8,208 7,246 +13%Revenue 859 1,149 (25%) 4,354 Slightly increasingEBITDA 102 136 (25%) 541EBITA 93 121 (23%) 494EBITA margin 10.8% 10.5% 11.3% DecreasingEBIT 85 117 (27%) 475EBIT margin 9.9% 10.2% 10.9%
  25. 25. 0500100015002000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012 In general, proposal activity is high and the list of potential projects is encouraging However, the Indian market remains subduedHigh proposal activityCement15 May 2012Interim Report Q1 2012 25Revenue (quarterly)DKKm EBIT margin-25% vs. Q1 20110.0%5.0%10.0%15.0%20.0%05001,0001,5002,000Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012Order intake (quarterly)+169% vs. Q1 2011DKKm
  26. 26. Cembrit - Europe’s largest dedicated provider of fibre-cement products15 May 2012Interim Report Q1 2012 26
  27. 27.  The European markets are still impacted by macro economic uncertainty, and activity in thenew build segment remains subdued.Improved results in Q1Cembrit15 May 2012Interim Report Q1 2012 27Revenue (quarterly)DKKm EBITA margin+9% vs. Q1 2011-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0%-500-400-300-200-1000100200300400500Q12010Q22010032010Q42010Q12011Q22011Q32011Q42011Q12012DKKm Q1 2012 Q1 2011 changeRevenue 316 290 9%EBITA (6) (8) +25%EBITA margin (1.9%) (2.8%)EBIT (7) (9) +22%EBIT margin (2.2%) (3.1%)
  28. 28. Future Outlook15 May 2012Interim Report Q1 2012 28
  29. 29. VISION“We will be our customers’preferred full-service providerof sustainable minerals andcement technologies”15 May 2012Interim Report Q1 2012 29
  30. 30. Financial targets (unchanged)Future Outlook15 May 2012Interim Report Q1 2012 30Financial targetsAnnual revenue growth Above market averageEBITA margin 10-13%Equity ratio >30%Financial gearing (NIBD/EBITDA) <2Pay-out ratio 30-50%CFFI (excl. acquisitions) DKK -700m to -900mThe Board will be considering and adopting new financial targets for return on capital– no later than in connection with the Annual Report for 2012
  31. 31. Group Guidance 2012 Actual 2011Revenue DKK 24-26bn DKK 22bnEBITA ratio >10% 10.9%EBIT ratio 9-10% 9.9%Tax rate 30-32% 31%CFFI (excl. acquisitions) DKK -900m DKK -733mGroup guidance 2012 (unchanged)Future Outlook15 May 2012Interim Report Q1 2012 31
  32. 32. Key take-awaysOrder intake validates strong underlying demandGroup expectations unchanged despite slow startIncreased focus on working capital and SG&AROCE targets to be discussed and adopted15 May 2012Interim Report Q1 2012 32
  33. 33. Questions &AnswersVisit FLSmidth at MineExpoin Las Vegas and at our officesin Salt Lake City, USAon 26-27 September 2012Follow us on Twitter: @flsmidth15 May 2012Interim Report Q1 2012 33

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