FLSmidth & Co. A/S facts and figures

Transcription

1 FLSmidth & Co. A/S facts and figures FLSmidth in brief: Full-service provider of sustainable minerals and cement technologies Founded in Copenhagen in 1882 by Frederik Læssøe Smidth Listed on NASDAQ OMX Nordic Copenhagen (the former Copenhagen Stock Exchange) in the OMXC20CAP index Employees: 14,765 of which 1,289 is in Denmark Revenue 2014: DKK 21,129m (EUR 2,834m) Offices in over 50 countries worldwide Headquarters: Valby (Copenhagen), Denmark Chairman of the Board of Directors: Mr. Vagn Sørensen Group Chief Executive Officer (CEO): Mr. Thomas Schulz Contents Vision.. 2 Business model.. Key figures. 2 3 Global efficiency programme.. 3 Organisation.. 4 Profile.. 5 Divisions. 6 Product companies 8 Group Executive Management Board of Directors. 11 Contact FLSmidth.. 12 Page 1 of 1

2 Vision It is FLSmidth's vision to be our customers' preferred full-service provider of sustainable minerals and cement technologies. Business model Full service provider in six key industries FLSmidth is a leading full-service provider of sustainable technologies to six growth industries: copper, gold, coal, iron ore, fertilizers and cement. FLSmidth combines more than a century of engineering and technological leadership with a strong commitment to life-cycle services and close cooperation with our customers. A complete portfolio of core technologies and extensive process know-how enables FLSmidth to be a single source of reliable full-service solutions and expertise. Being a full service provider means supplying everything from single products and services to complete production lines and overall plant optimisation solutions. In cement, we can supply the most complete array of products, systems and services, ranging from single engineered and customised equipment, such as a raw mill, to a complete cement plant on an EPC basis (engineering, procurement and construction) coupled with a full scale operation and maintenance contract. In mining, we can also supply a complete array of products, systems and services, ranging from single engineered and customised equipment, such as a ball mill, to a bundled equipment solution, a full production plant, and operation and maintenance solutions. Within the mining value chain, FLSmidth is primarily active with material handling, comminution (crushing, grinding & sizing) and separation, supplemented by unique materials testing capabilities. FLSmidth engages with its customers from a total-cost-of ownership perspective with a focus on helping customers to reduce emissions, operating costs and enhance productivity based on FLSmidth s unique combination of key products, process knowhow and service solutions. Operation & Maintenance (O&M) concept In FLSmidth's focus industries, O&M services are the ultimate proof of a full service provider. In cement, FLSmidth offers a full-scale O&M solution. FLSmidth is the only company globally capable of issuing a production guarantee and assuring a minimum output over a longer period. FLSmidth can offer the owner of a cement plant to run the plant with FLSmidth staff and to guarantee output levels for an agreed price per tonne. A typical contract has duration of five years. FLSmidth's O&M concept is offered to all plant owners but is especially an obvious option to producers who have limited operational expertise. FLSmidth helps the customer ensure optimal plant conditions, using a proprietary "autopilot" control and optimisation system to fine-tune processes and by incorporating a computerised maintenance management system into the plant. A spin-off benefit from operating customers' plants is that it enables FLSmidth to shorten the 'innovative loop'. As a plant operator, FLSmidth obtains on-site, real-time experience of, for example, product or process inefficiencies or improvement potential which can be fed straight back into innovation centres. Page 2 of 12

3 Synergies between Cement and Minerals While cement and mining are distinct industries, there are meaningful similarities and synergies between the two. First of all, there is a significant technology overlap. Several of the products used in each of the industries are either identical or very similar, for example, crushers, mills and material handling equipment. Secondly, FLSmidth often works on larger projects in both cement and minerals, and there are many similarities in the project management skill set needed. This provides the benefit of being able to transfer resources and best practices between the two industries. Global organisation The head office of FLSmidth is located in Copenhagen, Denmark and FLSmidth & Co. A/S has been listed on the Copenhagen Stock Exchange since The Group has five major global engineering and technology centres; Chennai (India), Copenhagen (Denmark), Salt Lake City, UT (USA), Bethlehem, PA (USA) and Wadgassen (Germany). FLSmidth is present in more than 50 countries around the world with sales offices, workshops, service centres, technology centres, etc. The company is managed through a line organisation consisting of four divisions, which are supported by global functions. Key figures 2014 FLSmidth & Co. A/S 2014 (DKKm) Order intake: 17,761 Order backlog: Revenue: 19,017 21,129 Gross margin: 23.9% EBITA: 1,627 EBITA margin: 7.7% Net results: 813 Working capital: 2,164 ROCE: 11% As of 31 December 2014 Global efficiency programme The efficiency programme announced in August 2013 aiming at creating sustainable efficiency improvements was completed by the end of 2014 as planned. The programme was launched and executed irrespective of the underlying market developments and will result in Annual EBITA improvements of around DKK 750m with full-year effect in The estimated EBITA improvement in 2014 was DKK 505m. One-off restructuring costs related to the programme have amounted to DKK 500m in total, of which DKK 72m was booked in 2014 as both production costs and SG&A costs. Adjusted for one-off costs, the estimated net EBITA impact of the efficiency programme in 2014 was DKK 433m. Page 3 of 12

4 The EBITA improvements in 2014 are related to the following six building blocks of the efficiency programme: Cost optimisation 32% Material Handling 20% Profit Boost 27% Optimised sourcing 12% Sales optimisation 8% Leading technology 1% The incremental EBITA improvement from 2014 to 2015 is estimated to be around DKK 245m or DKK 317m including the one-off costs related to the programme in Organisation Growth potential As of 1 January 2015, FLSmidth is organised in four divisions - two project divisions, a product division and a service division. The two former divisions Material Handling and Mineral Processing have been merged into one Minerals division. Cement and Customer Services will be maintained as separate divisions. A new Product Companies division has been created to foster globalisation and growth of FLSmidth's unique product brands. The new division will serve FLSmidth's six key industries; copper, coal, iron ore, gold, fertilizer and cement, the Minerals and Cement divisions as well as adjacent industries. While optimising the structure we will expand and strengthen our organisation, enabling us to take a coordinated leap forward and be set to take FLSmidth into the future. We have broadened our leadership team to strengthen the Group's competitiveness by focusing more on effectiveness, strategy development and integration. Organising in four divisions allows us to focus our attention on each of these businesses and realise the tremendous growth opportunities we expect in all of them. The four divisions are supported by a number of global functions with the aim of building worldwide collaboration and making sure that we continue to harvest the synergies of being One Company. Page 4 of 12

5 Profile One Source The phrase One Source highlights our promise of being a complete solutions supplier to the cement and minerals industries, including after sales service and support. With a strong local presence in more than 50 countries, we have more people on the ground in more places than any other supplier. This means we are uniquely able to provide our customers with a single resource for all the products and services they need globally and locally no matter what their requirement or location. Our vision encompasses three points that are critical to FLSmidth s continued recognition as a world-class organisation: We deliver an unprecedented range of resources from one supplier Customers can depend on us for exceptional levels of service and support Working with us enables customers to stay a step ahead of their competition Inspiration and confidence Our brand s key strengths also set us apart from our competitors. It enables us to look and sound the same in Moscow as we do in Mumbai and to communicate the same message to customers in South America as in Australia. Moreover, it enables us to unite our many departments, product companies and capabilities under a single unified image to show consistency, quality and certainty. Reliability and trust One Source also shows that we have the scope, strength and resources to achieve our goals and the goals of our customers. The One Source message communicates reliability and trust, highlighting our unique depth of knowledge and experience that stakeholders can count on. The FLSmidth brand delivers the message that no other company in the market can call upon or coordinate such a wide range of engineering resources and commercial experience or deliver such dedicated service to customers. Page 5 of 12

6 Divisions FLSmidth & Co. A/S FLSmidth supplies the global minerals and cement industries with everything from engineering solutions, single machines and complete processing plants, to operation, maintenance and support services of processing facilities. Our core strengths are reflected in our global, market-leading product range, our ability to implement, manage and maintain projects and our unmatched operation of minerals and cement processing plants, worldwide. Through years of innovation and experience, we have developed a vast global pool of specialist engineering resources that is unique within our markets. We focus on copper, gold, coal, iron ore, fertilizers and cement, providing one source for the products, solutions and services our customers need. Today, we offer a comprehensive, flexible and global service. With almost 15,000 people working out of offices in approximately 50 countries and service centres in our primary regions, we are prepared to help customers with every stage of their operational process, from strategic planning to overcoming everyday challenges and facility lifecycle management. FLSmidth s major cement projects are handled by three project centers, which each cover their particular geographical region. The project divisions are located in Denmark (Valby), USA (Bethlehem) and India (Chennai). Contact with our minerals customers are handled through FLSmidth s Minerals division technology centre in Salt Lake City, USA and Wadgassen, Germany. The regional and technological centres are supported by global engineering and commercial competence centres and product companies backed by local sales units and back offices. Global responsibility for technology, innovation and design of our key machinery is shared throughout the organisation to ensure that all projects worldwide maintain a consistent and high technological standard. We are committed to the highest degree of customer service for each and every single customer worldwide, no matter how large or small. With their needs in mind, our goal is to help to increase their profitability by reducing their investment requirements, operating costs, lead times and environmental impact. Divisions Customer Services FLSmidth s service activities consist of the Customer Services division and service related activities that are integrated in product companies in the other divisions. Customer Services is separated from the projects business to make the growth of Customer Services a clear priority within FLSmidth and to foster a service culture and mindset. Besides, a separate and dedicated Customer Services organisation improves the potential for synergies across FLSmidth. Customer Services is a strategically important business that differs favourably from projects by being less cyclical and generating higher earnings. It involves all the services, parts supply and upgrades that are carried out before, while and after FLSmidth installs a plant and commissions it. The purpose is to improve the performance of customers plants in a safe and sustainable manner to the highest possible standard. FLSmidth s Customer Services division strives to continually develop its customer services activities, Operations & Maintenance (O&M) capabilities and offer new services concepts to the minerals and cement industries. Page 6 of 12

7 Product Companies In order to ensure dedicated focus and to utilise its shared supply chain and back office functions, FLSmidth separates a number of product companies from the project divisions to form a stand-alone Product Companies division. The Product Companies division enables FLSmidth to release a significant potential for globalising and growing the company's unique product brands. The division serves FLSmidth's six key industries; copper, coal, iron ore, gold, fertilizer and cement, the Minerals and Cement divisions as well as adjacent industries. The division includes FLSmidth s product companies: ABON, Buffalo, Pfister, Ventomatic, Krebs, MAAG Gear, Airtech, Möller and Automation. Minerals FLSmidth s Minerals division focuses on delivering systems to its key mining industries: coal, copper, gold, iron ore and fertilizer. The business covers minerals processing and material handling technologies and is a merger of the divisions earlier known as Mineral Processing and Material Handling. The merger is a result of positive developments in both the divisions and FLSmidth s desire to leverage a shared customer base and capabilities to form one strong Minerals division. FLSmidth s Mineral Processing division encompasses all the technologies, products, processes and systems used to separate commercially viable minerals from their ores. The division s solutions range from process optimisation services, the supply of single machines to the design and delivery of complete plants for concentrating and refining copper, gold, coal, iron ore, fertilizers and other minerals. Mining is a global business where solutions are tailored to the type of ore to be processed and not to the part of the world in which the technologies are delivered. In fact, many projects are designed by engineering houses located on different continents than the mine sites, and often for customers that are located on yet another, third continent. Accordingly, FLSmidth s Minerals division has deployed a global-local structure that facilitates global coordination and standardisation and leverages our global scale with a strong local presence in important mining locations to provide customised life cycle support for our mining customers operations. FLSmidth s Minerals division aims to reinforce FLSmidth s already strong potential to become the strongest project and systems provider in the minerals industries. Cement FLSmidth s Cement division focusses on complete plants, systems and projects for the cement industry. The division consist of FLSmidth s capital cement activities and large upgrade projects. The Cement division s main purpose is to offer and execute complete cement projects. The major cement projects are handled by regional project centres and each of these centres cover their particular geographical region with main offices located in Denmark (Valby), USA (Bethlehem), India (Chennai) and China (Beijing). Global responsibility for technology, innovation and design of the Group s key machinery is centralised in a global organisation to ensure that all projects worldwide maintain a consistent and high technological standard. The Indian organisation increasingly serves as a support centre for the project centres in Denmark and the USA. The Cement division endeavours to constantly enhance its abilities, through further development of its Engineering, Procurement and Construction (EPC) offerings. The division is also focussed on its Design, Build, Operate (DBO) offerings where capital sales and Operations & Maintenance (O&M) join forces in offering unique solutions to customers. This ensures FLSmidth s continued strong position in the cement industry. Page 7 of 12

8 Product companies ABON FLSmidth ABON brings 50 years of experience to the FLSmidth group in feeding, sizing, crushing and screening equipment for an ever expanding range of industries in the broad sphere of minerals handling and minerals processing by-product activities. Known for its design, development and manufacture of twin roll sizers, chain feeders, and rollerscreens, FLSmidth ABON has sustained and continued growth stemming from recognition and acceptance of its products by major resource companies and mining houses. For more information, please visit US/About+FLSmidth/Our+History/Our+Product+Brands/ABON or send an to Buffalo FLSmidth s Buffalo brand is a world class supplier of feeding and crushing equipment for mining and general industries. Based out of South Africa Buffalo, the Buffalo brand offers extensive experience in design, development, manufacture, and servicing of this equipment. For more information, please visit US/About+FLSmidth/Our+History/Our+Product+Brands/Buffalo or send an to dawid.maritz@flsmidth.com Pfister FLSmidth Pfister is an international market leader in state-of-the-art weighing and dosing technologies for powdery materials. The company manufactures weigh feeders and provides consulting, training and services for its customers. FLSmidth Pfister's headquarter is in Augsburg, Germany, and it has subsidiaries and joint ventures in seven countries world-wide. For more information, please visit or send an to sales@flsmidthpfister.com. Ventomatic FLSmidth Ventomatic is one of the leading manufacturers of machinery, equipment and systems for packing powdery and granulated products and for handling empty and full bags, primarily to the cement industry. The company is based in Bergamo, Italy and represented world-wide by a network of representatives and agents. It has manufacturing facilities and assembling workshops in Italy and India. For more information, please visit or send an to info@flsmidthventomatic.com. Page 8 of 12

9 Krebs FLSmidth Krebs is the world s leader in hydrocyclone separation solutions. In addition to the most complete hydrocyclone offering available, FLSmidth Krebs Engineers offers a broad range of complimentary products. These products support and enhance hydrocyclone operation and include hydrocyclone manifolds and vessels that uniformly distribute the feed to each hydrocyclone and collect the overflow and underflow products from the hydrocyclones. For more information, please visit US/About+FLSmidth/Our+Product+Brands/Krebs or write an to krebs@flsmidth.com. MAAG Gear FLSmidth MAAG Gear AG in Winterthur, Switzerland is a global player in the international gear manufacturing industry. The company supplies mill gear units to the minerals and cement industries. For more information, please visit or send an to info@flsmidthmaaggear.com. Airtech FLSmidth s Airtech brand develops and supplies Air Pollution Control systems. The brand commands comprehensive air pollution control capabilities only few in the industry can match. The FLSmidth s Airtech brand offers state-of-the-art products like fabric filters, electrostatic precipitators, conditioning towers, scrubber systems, heavy metal and dioxin removal systems. Airtech s offering are backed by extensive product knowledge and R&D facilities which reflects its commitment to improve both technology and product design and meet the most stringent of emissions requirements. For more information, please send an to apc@flsmidth.com Möller FLSmidth s Möller brand specializes in pneumatic conveying, storage, dosing and loading of fine-grained and particularly abrasive bulk materials. Apart from transporting pneumatic bulk material, the industrial plant business has also been part of the Möller brand's service portfolio from the beginning. With an extensive product and service range, the Möller brand has a long-standing number of satisfied customers in the aluminium, power plant, minerals and cement industry. For more information, please visit US/About+FLSmidth/Our+History/Our+Product+Brands/Moeller or send an to martin.frank@flsmidth.com Page 9 of 12

10 Automation FLSmidth's automation solutions range from simple equipment control to leading-edge process control solutions that seek to optimize production processes. A world leader in the cement and minerals industries, FLSmidth offers automation solutions for every part of the process flow sheet. Combining extensive process knowledge with proven automation solutions, FLSmidth is the preferred automation partner - helping customers optimize their processes to the highest extent possible. For more information, please visit US/About+FLSmidth/Our+History/Automation or send an to automation@flsmidth.com Page 10 of 12

11 Management and Board Group Executive Management FLSmidth is a listed company on NASDAQ OMX Nordic Copenhagen, and we are therefore owned by our shareholders. Each year at the Annual General Meeting, the shareholders elect members to the Board of Directors. The Board in turn appoints the Group Management to oversee the day-to-day operation of the company and to make sure that business strategies are followed. Since FLSmidth is a listed company, it is subject to multiple legal obligations and requirements. This means that if there is a need for communicating to external stakeholders on behalf of FLSmidth, FLSmidth s Investor Relations and Group Communications Department must be involved at all times in order for FLSmidth to be compliant. FLSmidth s Group Management consists of eight experienced business people, each with a background and practical experience that matches FLSmidth s needs, challenges and practical issues. 1. Thomas Schulz (Group CEO), Copenhagen, Denmark; 2. Lars Vestergaard (Group Executive Vice President & CFO), Copenhagen, Denmark; 3. Brian M. Day (Group Executive Vice President, Customer Services), Salt Lake City, USA; 4. Bjarne Moltke Hansen (Group Executive Vice President, Product Companies), Copenhagen, Denmark; 5. Manfred Schaffer (Group Executive Vice President, Minerals), Copenhagen, Denmark; 6. Per Mejnert Kristensen (Group Executive Vice President, Cement), Copenhagen, Denmark; 7. Virve Elisabeth Meesak (Group Executive Vice President, Human Resources), Copenhagen, Denmark; 8. Eric Thomas Poupier (Group Executive Vice President, Business Development), Copenhagen, Denmark; Board of Directors FLSmidth & Co. A/S Board of Directors consists of business executives who each brings with them professional insight and hands-on experience that match FLSmidth s needs. On the board are: 1. Vagn Sørensen, Chairman since 2011, Member since 2009; 2. Torkil Bentzen, Vice Chairman since 2012, Member since 2002; 3. Martin Ivert, Member since 2008; 4. Sten Jakobsson, Member since 2011; 5. Caroline Grégoire Sainte Marie, Member since 2012; 6. Tom Knutzen, Member since 2012; 7. Mette Dobel, Member since 2009; 8. Søren Quistgaard Larsen, Member since 2013; and 9. Jens Peter Koch, Member since Mette Dobel, Søren Quistgaard Larsen and Jens Peter Koch are employees-elected members, as per Danish company legislation. Page 11 of 12

12 Contact FLSmidth FLSmidth & Co. A/S Vigerslev Allé 77 DK-2500 Valby Denmark Tel: Fax: Global Communications Manager Jesper B. Larsen Tel: Senior Vice President, Investor Relations Pernille Friis Andersen Tel: Page 12 of 12