Presentation of Interim Report Q2 2013 23 August 2013 Interim Report Q2 2013 1
Nov 18, 2014
Presentation of Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 1
Forward-looking statements
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 2
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.
Group strategy & long term financial targets reconfirmedLaunch of Efficiency Programme with annual EBITA improvement of DKK +750m
Deteriorating outlook for mining capital projects – Pockets of recovery in CementCustomer Services performing wellGroup revenue +14% & order intake -22%Group EBITA margin 4.4% - Underlying Group EBITA margin 9.4%
Ludowici impairment loss (DKK -800m) & inventory write-down (DKK -200m) Future risks in Material Handling minimised (DKK -323m)
Key Highlights Q2 2013
3
Key Highlights Q2 2013
4
Customer intimacy
Productleadership
Operationalexcellence
Values
8/23/2013
Group Strategy verified by Group CEO
“We will be our customers’ preferred full service provider of sustainable minerals and cement technologies”
Focused full service providerSix key industriesFull-service solutionsLife cycle approachFull product flow sheets
Long term financial targets reconfirmedGrowth above market averageEBITA margin of 10-13%ROCE > 20%
Strategy health check
Stronger focus on:Organic growth and integration
Quality and safety
Research and development
People and business development
The strategy health check revealed a significant need and potential to improve efficiency throughout FLSmidth
Strategy adjustments in a few areas
5
Strategy health check
Start 23rd August 2013
Responsible CEO and Group Executive Management Team
Expected full year effect 2015
Annual EBITA improvement ~DKK +750m
One-off restructuring costs ~DKK -500m
Reduction of workforce ~1,100
Reduction of locations >20
Efficiency Programme
Efficiency programme
23 August 2013Interim Report Q2 2013 6
Key elements of Efficiency Programme
Efficiency programme
23 August 2013Interim Report Q2 2013 7
Follow-up and external reporting:
Sales, distribution & administration costs (“SG&A”)
Gross margin in Material Handling
Gross margin
Sourcing from cost competitive countries
Net Working Capital
Gross profit
Investments in R&D
Current market trends
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 8
Mining capex outlook deteriorated further in Q2- expected to hit the bottom in 2014- commodity prices under pressure- mining operating expenditures still at healthy level
Cement demand is slowly picking up- pockets of demand for new cement capacity- demand for cement services is slightly increasing
Few large orders available, but still active negotiations
Some pricing pressure is evident
No cancellations of orders in the backlog
Order intake down 22%- attributable to all segments but Customer Services
Revenue up 14% attributable to all segments but Material Handling
EBITA down 50%, primarily due to Material Handling one-off costs
CFFO slightly negative due to tax and financial payments
Structural headcount reduction of 454 in Q2 were offset by manning up on new O&M contracts
Financial developments in Q2 2013
Interim report Q2 2013
23 August 2013 9
FLSmidth & Co. A/S(DKKm) Q2 2013 Q2 2012 Change
Order intake 5,626 7,246 -22%Revenue 6,456 5,653 +14%EBITA 287 576 -50%EBITA margin 4.4% 10.2%EBIT 195 323 -39%EBIT margin 3.0% 5.7%CFFO -51 333Employees2) 14,817 12,717 +17%
Interim Report Q2 2013
1) Excluding Cembrit
FLSmidth & Co. A/S(DKKm) Q2 2013 Q2 2012 Change
Order intake 5,626 7,246 -22%Order backlog 26,983 30,803 -12%Revenue 6,456 5,653 +14%Gross margin 18.3% 24.3%EBITA 287 576 -50%EBITA margin 4.4% 10.2%EBIT 195 321 -39%EBIT margin 3.0% 5.7%Net results 143 223 -36%CFFO -51 333Employees1) 14,802 12,717 +16%
Order intake decreased 22% in Q2 2013
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 10
Order intake by industry (quarterly)
Cement
Coal
Iron ore
Fertilizers
Other
CopperGold
36%
14%7%9%
4%2%
28%
0
2,000
4,000
6,000
8,000
10,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)
-22% vs. Q2 2012DKKm
Announced O&M ordersAnnounced capital ordersUnannounced orders
Revenue increased 14% in Q2 2013
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 11
01,0002,0003,0004,0005,0006,0007,0008,0009,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Revenue (quarterly)+14% vs. Q2 2012DKKm
Organic revenue growth of 10%
Service activities accounted for 40% of Q2 revenue
Pattern of seasonallyincreasing quarterly revenue over the calendar year expected to be repeated in 2013
Gross margin development
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 12
Gross margin
24.8% 24.3%
18.3%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Gross profit (quarterly)-14% vs. Q2 2012DKKm
Decline in gross margin due to Material Handling one-off costs and execution of low margin order backlog in Cement
Gross margin Q2’13 vs. Q2’12- by segment
26.9%15.7% 21.1%
31.5%28.2%
-17.9%
22.0% 18.2%
CustomerServices
MaterialHandling
MineralProcessing
Cement
Q2’13Q2’12 Q2’13Q2’12 Q2’13Q2’12 Q2’13Q2’12
Reassessment of order backlog based on a more prudent risk approach
Minimised risk of future negative surprises
One-off impact in Q2 DKK -323m related to legacy order backlog
No new problematic projects have appeared
Material Handling one-offs in Q2
Interim report Q2 2013
23 August 2013Interim Report Q2 2013 13
EBITA margin down primarily due to Material Handling one-off of DKK -323m
Underlying EBITA (adjusted for MH one-off) is DKK 610m, equivalent to an EBITA-margin of 9.4%
SG&A cost-ratio declined to 12.6% of Revenue vs. 13.2% in Q2’12
EBITA decreased 50% in Q2 2013
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 14
EBITA margin
9.5% 10.2%
4.4%
0%
3%
6%
9%
12%
15%
0
200
400
600
800
1,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
EBITA (quarterly)-50% vs. Q2 2012DKKm
576287
147 67
323
65
0100200300400500600700800900
EBITA Q2'12
Increase in revenue
Decrease in gross margin
Material Handling one-off
Increase in SG&A costs
EBITA Q2'13
DKKm
EBITA bridge Q2’13 vs. Q2’12
0%
2%
4%
6%
8%
10%
12%
0
500
1,000
1,500
2,000
2,500
3,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
2,335 2,212
502
256 156
565
160
2,000
2,200
2,400
2,600
2,800
3,000
3,200
Net working capital declined DKK 123m in Q2
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 15
Average Net Working CapitalWorking capital ratio 7.3%DKKm NWC* /Revenue LTM**
*) NWC: Average Net Working Capital excl. Cembrit
**) LTM: Last Twelve Months
End Q2 2013 vs. End Q1 2013Change in Net Working capital
DKKm
Customer Services performed well on all parameters order intake +21%, revenue +26%, EBITA +29%
Material Handling is the only negative surprise order intake -19%, revenue -26%, EBITA DKK -369m
Mineral Processing is lacking large orders, but delivered solid results order intake -40%, revenue +20%, EBITA +34%
Cement earnings were significantly below last year as expectedorder intake -30%, revenue +37%, EBITA -37%
Divisional developments in Q2
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 16
Cembrit sales process stopped
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 17
Satisfactory sales price not reached
Sales process stopped
Stand alone business
Reported as continuing activities from Q3 2013
2013 effect: Revenue DKK +1.4bn, EBITA-margin 0%
Ludowici acquisition impairment loss of DKK -800mDeteriorating outlook for mining capex in general and for the Australian coal industry in particular
Impairment tests reveal indications of write-down
Inventory write-down of DKK -200mThorough inventory review
More stringent assessment of ageing inventory items
Expected impairment loss and write-down in Q3
Special items
23 August 2013Interim Report Q2 2013 18
Revenue EBITA EBIT
Material Handling one-off costs in Q2 DKK -323m DKK -323m
Expected costs related to efficiency programmein Q3-Q4 DKK -350m DKK -350m
Expected inventory write-down in Q3 DKK -200m DKK -200m
Expected Ludowici impairment loss in Q3 DKK -800m
Inclusion of Cembrit full-year results from Q3 DKK +1.4bn DKK -0m DKK -0m
Total full-year impact DKK +1.4bn DKK -873m DKK -1,673m
Special items impacting Q2 and full-year estimates
Special items
23 August 2013Interim Report Q2 2013 19
Group Guidance 2013 Previous guidance
Revenue DKK 26-28bn DKK 27-30bn
EBITA margin 4-5% 8-10%
CFFI ~DKK -0.8bn DKK -1bn
ROCE 7-8% 15%
Group guidance 2013 updated
Guidance
23 August 2013Interim Report Q2 2013 20
Divisional Guidance 2013 updated
Guidance
23 August 2013Interim Report Q2 2013 21
Segments Guidance 2013
Revenue (previously) EBITA margin (previously)
Customer Services DKK 8-9bn (DKK 8-10bn) 13-14% (13-15%)
Material Handling DKK 4-5bn (DKK 4-6bn) -8% to -9% (>0%)
Mineral Processing DKK 9-11bn (DKK 10-12bn) 8-9% (8-10%)
Cement DKK 5-6bn (DKK 5-7bn) 6-7% (6-8%)
Cembrit is expected to generate a revenue of DKK ~1.4bn and an EBITA margin of ~0% in 2013Eliminations in the form of intercompany trade is expected to amount to around DKK -1bnOne-off costs related to efficiency program (DKK-350m) and inventory write-down (DKK-200m) have not been allocated to divisions
Group strategy & long term financial targets reconfirmedLaunch of Efficiency Programme with annual EBITA improvement of DKK +750m
Deteriorating outlook for mining capital projects – Pockets of recovery in CementCustomer Services performing wellGroup revenue +14% & order intake -22%Group EBITA margin 4.4% - underlying Group EBITA margin 9.4%
Ludowici impairment (DKK -800m) & inventory write-down (DKK -200m) Future risks in Material Handling minimised (DKK -323m)
Key Highlights Q2 2013
22
Key Highlights Q2 2013
Questions &Answers
Next update: Q3 Interim Report on 6 November 2013
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23 August 2013Interim Report Q2 2013 23
Appendices- backup slides
23 August 2013Interim Report Q2 2013 24
Customer Services
23 August 2013Interim Report Q2 2013 25
6% organic order intake growth and 11% organic revenue growth
Improved order intake in Q2 mainly due to acquisitions and high utilisation rates in the mining industry
Margin recovered in Q2 after adverse business mix impacts and costs of one-off nature in Q1 2013
Increased order intake and EBITA margin
Customer Services
23 August 2013Interim Report Q2 2013 26
Revenue (quarterly)DKKm EBITA margin+26% vs. Q2 2012
0%
4%
8%
12%
16%
20%
0
500
1,000
1,500
2,000
2,500
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
0
1,000
2,000
3,000
4,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)+21% vs. Q2 2012DKKm
Announced O&M ordersAnnounced capital ordersUnannounced orders
Customer Services
Customer Services
23 August 2013Interim Report Q2 2013 27
(DKKm) Q2 2013
Q2 2012 Change Full-year
2012Expected
2013
Order intake 1,900 1,569 +21% 9,202Order backlog 7,979 6,708 +19% 8,159Revenue 2,020 1,608 +26% 7,073 DKK 8-9bnEBITDA 320 244 +31% 1,012EBITA 298 231 +29% 930EBITA margin 14.8% 14.4% 13.1% 13-14%EBIT 277 1551) +79% 7871)
EBIT margin 13.7% 9.6%1) 11.1%1)
1) Including one-off write-down of capitalized R&D costs in Q2’12 of approximately DKK 60m
Material Handling
23 August 2013Interim Report Q2 2013 28
Decreased order intake reflects continued challenging market conditions, increased rigorousness in the proposal phase and a prudent tender approach
EBITA margin adversely impacted by DKK -323m due to changed risk assessment of order backlog in Q2
The number of ‘risky projects’ in the backlog is unchanged vs. Q1’13
Margin improvement remains challenging
Material Handling
23 August 2013Interim Report Q2 2013 29
Revenue (quarterly)DKKm EBITA margin-26% vs. Q2 2012
0
500
1,000
1,500
2,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)-19% vs. Q2 2012DKKm
-40%-30%-20%-10%0%10%20%30%
-2,400-1,800-1,200
-6000
6001,2001,800
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
111111
Announced ordersUnannounced orders
Material Handling
Material Handling
23 August 2013Interim Report Q2 2013 30
(DKKm) Q2 2013
Q22012 Change Full-year
2012Expected
2013
Order intake 1,028 1,272 -19% 4,565Order backlog 4,976 5,230 -5% 4,773Revenue 944 1,271 -26% 4,997 DKK 4-5bnEBITDA -356 28 -140EBITA -369 17 -186EBITA margin -39.1% 1.3% -3.7% -9% to -8%EBIT -387 12 -247EBIT margin -41.0% 0.9% -4.9%
Order Backlog information
15 projects out of a total portfolio of 189 projects in the Material Handling Business Unit are currently regarded as risky (end of Q1 2013: 15 projects)
Minimised risk of future negative surprises after reassessment of backlog
These projects accounted for DKK 705m or 15% of the backlog at the end of Q2
Mineral Processing
23 August 2013Interim Report Q2 2013 31
Declining order intake and lower tender activity as the market for Mineral Processing remains soft
High revenue as a result of strong order intake from mid-2011 and throughout 2012
EBITA margin improved due to reduced SG&A costs and gain from disposal of assets
Soft market – but solid execution
Mineral Processing
23 August 2013Interim Report Q2 2013 32
Revenue (quarterly)DKKm EBITA margin+20% vs. Q2 2012
0%3%6%9%12%15%18%21%
0500
1,0001,5002,0002,5003,0003,500
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
0500
1,0001,5002,0002,5003,0003,500
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)-40% vs. Q2 2012DKKm
Announced ordersUnannounced orders
Mineral Processing
Mineral Processing
23 August 2013Interim Report Q2 2013 33
(DKKm) Q2 2013
Q2 2012 Change Full-year
2012Expected
2013
Order intake 1,679 2,808 -40% 10,318Order backlog 7,891 10,362 -24% 9,589Revenue 2,477 2,057 +20% 9,512 DKK 9-11bnEBITDA 292 209 +40% 1,079EBITA 259 193 +34% 1,000EBITA margin 10.5% 9.4% 10.5% 8-9%EBIT 212 891) +138% 7731)
EBIT margin 8.6% 4.3%1) 8.1%1)
1) Including one-off write-down of capitalized R&D costs in Q2’12 of approximately DKK 60m
Cement
23 August 2013Interim Report Q2 2013 34
0
500
1000
1500
2000
2500
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Stable level of unannounced orders – value of announced orders lower vs. Q2’12
As expected, margin has declined as backlog is exhausted of pre-crisis orders with higher profitability
Demand in China down to about 10% of peak market, increasing competition in and outside China
Two large orders, but market remains subdued
Cement
23 August 2013Interim Report Q2 2013 35
Revenue (quarterly)DKKm EBITA margin+37% vs. Q2 2012
0%
5%
10%
15%
20%
25%
0
500
1000
1500
2000
2500
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)-30% vs. Q2 2012DKKm
Announced ordersUnannounced orders
Cement
Cement
23 August 2013Interim Report Q2 2013 36
(DKKm) Q2 2013
Q2 2012 Change Full-year
2012Expected
2013
Order intake 1.335 1,902 -30% 4,599Order backlog 6,847 9,240 -26% 7,585Revenue 1,304 952 +37% 4,214 DKK 5-6bnEBITDA 101 155 -35% 788EBITA 91 144 -37% 752EBITA margin 7.0% 15.1% 17.8% 6-7%EBIT 85 741) +15% 6691)
EBIT margin 6.5% 7.8%1) 15.9%1)
1) Including one-off write-down of capitalized R&D costs in Q2’12 of approximately DKK 60m
Service activities accounted for 44% of Q2 orders
Order intake decreased mainly due to lower value of announced orders in Q2
Expected backlog conversion to revenue: 43% in 2013, 35% in 2014 and 22% in 2015 and beyond. O&M** contracts accounted for DKK 4.7bn (17%) of the order backlog at the end of Q2
Order intake decreased 22% in Q2 2013
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 37
0
2,000
4,000
6,000
8,000
10,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order intake (quarterly)-22% vs. Q2 2012DKKm
0.20.40.60.811.21.41.6
05,000
10,00015,00020,00025,00030,00035,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Order backlog (quarterly)-12% vs. Q2 2012DKKm Book-to-bill ratio*
Announced O&M orders **Announced capital ordersUnannounced orders
*) Order backlog divided by Last-Twelve-Months Revenue
**) Operation & Maintenance
Announced orders in Q2 2013
Iron ore India DKK 200m (MH)Cement Equatorial Guinea DKK 505m (C)Cement India DKK 200m (C)
36%
14%7%9%
4%2%
28%
23 August 2013Interim Report Q2 2013 38
Distribution of order intake by industry and segment
Interim Report Q2 2013
Order intake Q2 2013
Cement
CopperGold
Coal
Iron ore
Fertilizers
Other
Growth CustomerServices
Material Handling
Mineral Processing
Cement Group
Organic 6% -16% -43% -29% -26%
Acquisitions 18% 0% 5% 0% 6%
Currency -3% -3% -2% -1% -2%
Total 21% -19% -40% -30% -22%
Order intake growth Q2’13 vs. Q2’12
Estimated organic revenue growth of 14% and acquisitive revenue growth of 7% in Q2 2013
Service activities accounted for 40% of Q2 revenue
Pattern of increasing quarterly revenue over the calendar year expected to be repeated in 2013, however challenged by softening market conditions
Revenue increased 14% in Q2 2013
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 39
0
2,000
4,000
6,000
8,000
10,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Revenue (quarterly)+14% vs. Q2 2012DKKm
Growth CustomerServices
Material Handling
Mineral Processing
Cement Group
Organic 11% -22% 18% 38% 10%
Acquisitions 18% 0% 5% 0% 7%
Currency -3% -4% -3% -1% -3%
Total 26% -26% 20% 37% 14%
Revenue growth Q2’13 vs. Q2’12
Revenue and order intake by segment
32%
17%28%
23%
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 40
Order intake Q2 2013– classified by segment
Customer Services
Material Handling
Cement
30%
14%37%
19%
Material HandlingMineral Processing
Revenue Q2 2013 – classified by segment
Customer ServicesCement
Mineral Processing
Service activities accounted for 44% of Q2 orders
Interim Report Q2 2013
Interim Report Q2 2013 41
Revenue Q2 2013
23 August 2013
Order intake Q2 2013
40%60%
Capital Business
44%
56%
Service BusinessCapital BusinessService Business
SG&A ratio down vs. last year and sequentially
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 42
SG&A ratio declining as a cost efficiency measures start to work
SG&A ratio*
14.3%13.2% 12.6%
0%
3%
6%
9%
12%
15%
18%
0
200
400
600
800
1,000
1,200
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
SG&A costs* (quarterly)+9% vs. Q2 2012DKKm
*) SG&A ratio: SG&A costs divided by Revenue
EBITA by segment
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 43
EBITA Q2 2013– classified by segment
107%
-132%
93%
33%
CustomerServices
MaterialHandling
MineralProcessing
Cement
EBITA margin Q2 2013– classified by segment
14.8%
-39.1%
10.5% 7.0%
CustomerServices
MaterialHandling
MineralProcessing
Cement
Negative CFFO due to taxes paid, financial payments and increased working capital
CFFI reflects that acquisitions are temporarily on hold in 2013, and includes DKK +92m related tosale of non-core activities in Ludowici, Australia
Cash flow from operating and investing activities
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 44
CFFO (quarterly)DKKm
-800-400
0400800
12001600
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
CFFI (quarterly)+57% vs. Q2 2012DKKm
-3,000-2,400-1,800-1,200
-6000
600
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
-51m in Q2 2013
Capital structure developments
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 45
NIBD* (quarterly)DKKm
-0.8-0.400.40.81.21.622.4
-2,000-1,000
01,0002,0003,0004,0005,0006,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Gearing 2.0x EBITDAGearing target (self-imposed)
0%
10%
20%
30%
40%
50%
0
2,000
4,000
6,000
8,000
10,000
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Equity (quarterly)DKKm Equity ratio-6% vs. Q2 2012
Equity ratio target (self-imposed)
The equity ratio declined to 27% in Q2, mainly as a result of:Dividend of DKK -479m paid out in Q2Execution of share buyback programme DKK -435m in Q2Material Handling one-off costs reducing net profit by more than DKK 200m (after tax)Foreign exchange adjustments related to enterprises abroad DKK -349m
Number of employees
Interim Report Q2 2013
23 August 2013Interim Report Q2 2013 46
Number of employees Q2’13 vs. Q2’12- by segment
43263352
2417 2621
5859
35853021 2335
CustomerServices
MaterialHandling
MineralProcessing
Cement
Q2’13Q2’12
Number of employees at the same level as Q1’13 (from 14,811 to 14,802), but increased 16% vs. Q2’12 Increase vs. Q2’12 is primarily related to acquisitions and blue collar workers in connection with O&M contractsStructural head count reductions of 454in Q2’13 were offset by manning up on new O&M contractsDevelopments in divisional numbers are impacted by allocation of group staff
Q2’13Q2’12 Q2’13Q2’12 Q2’13Q2’12