Flsmidth & Co. A/s · OMXCOP:FLS
Flsmidth & Co. A/s — Flsmidth & Co A/S B Shs — Q4 2024 Earnings Presentation
45 slides from Flsmidth & Co. A/s's earnings presentation, Feb 20, 2025
Slide 1: Investor Presentation, 20 February 2025
Investor Presentation 20 February 2025
Slide 2: Forward-looking statements and content
Forward-looking statements This pr ooking statements. ual Report in Content O1 02 03 04 05 Key highlights for 2024 Sustainability highlights Mining performance Cement performance NCA performance 06 07 08 09 Financial review 2025 financial guidance Transformation and strategic focus Appendix
Slide 3: Important milestones reached in 2024
Important milestones reached in 2024 MINING BUSINESS Mining Service order intake up by 2% versus 2023, while Mining Products remains impacted by soft market conditions Several significant commercial wins, incl. orders or commitments for a record number of HPGRs Continued margin expansion with Adjust
Slide 4: Sustainability performance highlights for 2024
Sustainability performance highlights for 2024 vason QD tov ro osrby 200 Scope 1and 2 greenhouse A) gomyce gas emissions TARGETS Year-to-date (tCO,¢ (market-based)) pmeaennenned 39079 33,022 99,445 30,638 _ ‘22 ‘23 (24 O pyea terget 19.4% improvement compared to 2023 driven by divestments in the ‘Ce
Slide 5: Higher Mining order intake in Q4'24 primarily driven by Service
Higher Mining order intake in 04’24 primarily driven by Service, with Products in line with expectations MINING ORDER INTAKE MINING ORDER INTAKE (DKKm) (DKKm) 5,000 4,000 3,000 2,000 - para 2,649 2881 4,000 04 2023 04 2024 "422 0223042322424 Service Ml Products — Revenue FLS 5 20/02/2025 2024 Annual
Slide 6: Strong Service revenue in 2024, while lower Products revenue
Strong Service revenue in 04 2024, while lower Products revenue reflects timing of order execution MINING REVENUE MINING REVENUE (DKKm) (DKKm) 5,000 Q4 2024 HIGHLIGHTS @® 4,000 | 3,000 | 1 Ty 2,000 - Cex) ° 2,505 2sig 281 4,000 04 2023 04 2024 "422 0223042322424 Service Ill Products FLS 6 20/02/2025
Slide 7: Continued margin expansion reflecting strong strategy execution
Continued margin expansion reflecting strong strategy execution DKKm Margin 750 16% 14.0% 13.3% 14% 600 118% 12.9% 12.4% 12% 450 13 8% 300 6% 496 4% 150 2% 04'22 ar23 02'23 03'23 04'23 or24 02'24 03'23 04'24 MB eBITA One-off items EBITA margin Adjusted EBITA margin Notes: One-off items include (} co
Slide 8: Cement order intake reflects divestments and strategic shift
Cement order intake reflects divestments and strategic shift to a more service-centric and stable business model 8 20/02/2025 2024 Annual Report investor presentation CEMENT ORDER INTAKE CEMENT ORDER INTAKE (DKKm) (DKKm) 4,800 4,500 909 G3%) im 221 4,200 900 I lJ Eo | | _ 600 > 778 300 654 688 04 20
Slide 9: Service revenue sequentially higher, Products impacted by divestments
Service revenue sequentially higher and in line with expectations, while Products impacted by divestments CEMENT REVENUE CEMENT REVENUE (DKKm) (DKKm) 2,000 1,500 4,091 = ie 373 aoe 4,000 - Ge _ 500 Q4 2024 HIGHLIGHTS -15% Organic revenue growth -22% 769 718 04 2023 04 2024 7 04'22 Q2'23 04'23 02°24
Slide 10: Increase in Adjusted EBITA reflects continued good margin execution
Increase in Adjusted EBITA reflects continued good margin execution CEMENTEBITA (DKKmand pct.) DKKm Margin 200 12% \ 10.8% a 1 wo / .,F \ ne 50 04'22 ar23 0223 Q3'23 04'23 ar24 02°24 03°24 04'24 MM EBITA © one-off items é Divestment gain — — EBITAmargin Adjusted EBITA margin Notes: 03'23 EBITA margi
Slide 11: Non-Core Activities wind-down virtually completed
Non-Core Activities wind-down virtually completed with the accumulated loss in line with expectations NCA ORDER BACKLOG (DKKm) KEY COMMENTS f -94% * Order backlog reduced by 94% versus. Q4 2024 HIGHLIGHTS 3.6 initial order backlog of DKK 3.6bn * DKK ~60m of the remaining order backlog 0) 29 can be e
Slide 12: Consolidated financial performance in 2024
Consolidated financial performance in 04 2024 CONSOLIDATED FINANCIALS Km| 04 2024 04 2023 Change Order intake 4,860 4,620 5% Revenue 5,331 5,968 “11% Gross profit margin 33.7% 24.0% 97%p SG&A -1,085 -944 15% Adjusted EBITA 645 549 17% Adjusted EBITA margin 12.1% 9.2% 2.9%p EBITA 594 412 44% EBITA ma
Slide 13: Year-on-year improvements in gross margin
Year-on-year improvements in gross margin reflects positive effects from de-risking and good order execution GROSS PROFIT GROSS MARGIN BY SEGMENT +26% growth in 04 2024 vs. 04 2023 04 2024 vs. 04 2023 DkKKm Gross margin 2,000 33.1% _$37% 35% Mining Cement NCA 30% 1,500 25% 20% 4,000 15% 500 10% 5% 7
Slide 14: Higher SG&A costs driven by restructuring provisions
Higher SG&A costs versus 04 2024 primarily driven by provisions related to ongoing restructuring of organisation SG&A COSTS SG&A ratio up by 4.6%p vs.04 2023 DkKm SGEA ratio 25% 20% 900 15% 600 10% 300 5% ~ (042022 012023 02 2023 03 2023 04 2023 OI 2024 02 202403 2024042024 MM sceA cost — SG&A ratio
Slide 15: Group EBITA margin positively impacted by higher gross margin
Group EBITA margin positively impacted by the higher gross margin GROUP EBITA Continued improvement in profitability DKKm EBITA margin 14% 800 12.6% 12.1%12% o> = 11% 600 yl 4% 10% 8% 400 6% 200 4% 2% ~ 042022 012023 02 2023 03 2023 04 2023 012024 022024032024042024 — HM GroupEBITA ~ ~ GroupEBITAmar
Slide 16: Decrease in NWC from reduced trade receivables
Decrease in NWC primarily a result of a reduction in trade receivables due to increased cash collection NET WORKING CAPITAL NET WORKING CAPITAL DEVELOPMENT IN 04 2024 DKKm NWC ratio (DKKm) 042024 Q3 2024 Change 3000 . 10.6% 10.4% 12% Inventories 3,572 3,416 156 2,500 iY \ Trade receivables 4,073 4,6
Slide 17: Strong cash flow from operations in 2024
Strong cash flow from operations in 04 2024 driven by higher earnings and reduction in net working capital DKKm 1 1 200 000 800 600 400 200 -200 -400 ~600 v7 04 2022 20/02/2025 2023 2023 GROUP CASH FLOW Qi Q2 Q3 04 Qi Q2 Q3 04 2023 2023 2024 2024 2024 2024 Mi crFo Ml Free cash flow, adjusted for M&A
Slide 18: Financial gearing remains well-below capital structure target
Financial gearing remains well-below our capital structure target NET INTEREST-BEARING DEBT Ratio remains lowat 0.4x LEVERAGE AT END-04 2024 oKkm NIBD/EBITDA 2,000 25 0.4x soos 20 ig debt / EBITDA ae t ° 1,180 15 1,000 847 CAPITAL STRUCTURE TARGET 10 500 05 <2.0x ring debt / EBITDA ratio 04 2022 Q12
Slide 19: Financial guidance for the full year 2025
Financial guidance for the full year 2025 Group Revenue (DKKbn) ~15.0 (DKK 15.5bn) Revenue (DKKbn) ~19.0 (DKK 20.2bn) Adj. EBITA margin 13.5-14.0% (13.1%) Adj. EBITA margin 12.5-13.0% (11.0%) The Adjusted EBITA margin excludes transformation and separation costs of around DKK 200m for the full year
Slide 20: Our transformation remains well on track
Our transformation remains well on track Ambition Progress Key comments and developments _ , + Continued roll-out and implementation of the principal company model Cupiaecocle Segue) D * Ontrack for the implementation of a leaner and more cost-efficient corporate model , * Commercial investments add
Slide 21: Our key priorities for 2025
Our key priorities for 2025 will form a solid foundation for our long-term ambitions Strengthening of our commercial focus Half-way into our strategic journey, we have made several important Optimise supply chains to enhance efficiency and reliability strides, but important works lies ahead Expand m
Slide 22: Appendix
Appendix 1. Our equity story ina nutshell 2. 04 2024 financial appendix pore FLS 22 20/02/2025 2024 Annual Report investor presentation
Slide 23: 1. Our equity story in a nutshell
— “) Sa aN tshell_-< inanu 1. Our equity story
Slide 24: Our value proposition
Our value proposition Our pure play Key market strategies drivers Green transition Middle class growth Industry challenges Mining CORE 26 24 20/02/2025 2024 Annual Report investor presentation Our value creation drivers Full flowsheet coverage Large installed base ervice centricity Sustainability &
Slide 25: FLSmidth at a glance
FLSmidth at a glance We are a full flowsheet technology and service supplier to the global mining and cement industries. We enable our customers to improve performance, lower operating costs and reduce environmental impact. We work within fully validated science-based targets, have a clear commitmen
Slide 26: Our organisation and culture is evolving with business transformation
Our organisation and culture is evolving with our ongoing business transformation Core strategic focus Core P&L model Core transformation drivers Core values Transition to pure play (from Q4 2022) { A | Cement We have changed from regional P&L Region’ Region Region ° Region’ Region5 to global busine
Slide 27: Simplifying our operating model to realise efficiencies
Simplifying our operating model to realise efficiencies, ensure stronger execution and improve profitability Transition to pure play Simplification Reduce risk exposure > risk quotas introduced ! | | Descope > focus on core Products, improved terms & conditions Activities to be fully wound down Gove
Slide 28: Our CORE'26 pure play mining strategy
Our CORE’26 pure play mining strategy Sustainability Build ture for ov Pee) a future tor Delivering solutions for tomorrow's mine Bron Mission Performance Accelerating profitability thfough core businesses, simplification and balanced ris FLS 28 20/02/2025 2024 Annual Report investor presentation
Slide 29: tie
tie peas a ae pe fst FLS
Slide 30: We are digitalising the entire flowsheet
Weare digitalising the entire flowsheet 30 Product digitalisation level Extraction “> Sensors oo00 =P Product Control Insights e@ isk Health hin Optimisation 20/02/2025 2024 Annual Report investor presentation Conveying Comminution Pumps, Cyclones& Beneficiation Valves and Recovery Thickening Filtra
Slide 31: How we will achieve our sustainability ambitions
How we will achieve our sustainability ambitions 0° — —— oe Ss Jo cs / services = mimes / ae 2 >\ i = ~ \ . . / CoRR, siewarship \ Enabling profitable { Peebeereteteeee Product sotety orsuronce | sustainability { coed, eee 2 4 . \ 3 (2) Improving our \ O 3 ESG performance \ exc / \ \ oes stompcenm s
Slide 32: Key benefits delivered by a Mission Zero Mine
Key benefits delivered b aMissionZeroMine ~~ [es ; . Beneficiation iil : : Sy 45% reduction | coarsealR™ 5 in flotation 4 4 H mS energy per fates kWh/t i : - Flotation 30% overall < cat energy erty VT. 30% increase consumption si inplant reduction . ae throughput Lupowici* Vibrating Concentrate = -
Slide 33: 2. Q4 2024 financial appendix
2.042024 financial appe
Slide 34: Mining performance
Mining performance (DKKm) Order intake - Hereof Service - Hereof Products Order backlog Revenue - Hereof Service - Hereof Products Gross profit Gross profit margin Adjusted EBITA margin Adjusted EBITA margin EBITA EBITA margin 34 20/02/2025 042024 3,952 2,881 1,071 1,147 4,178 2,811 1,367 1,308 31.3
Slide 35: Mining order intake by commodity
Mining order intake by commodity Gold Coal Fertilizer ‘on ore y, 34% Other Mining FLS
Slide 36: Cement performance
Cement performance (DKKm) Order intake -Hereof Service -Hereof Products Order backlog Revenue -Hereof Service -Hereof Products Gross profit Gross profit margin Adjusted EBITA Adjusted EBITA margin EBITA EBITA margin 36 20/02/2025 042024 909 688 221 3,856 1,091 718 373 445 40.8% 93 8.5% 89 8.2% 2024
Slide 37: Revenue and EBITA margin for Mining and Cement
Revenue and EBITA margin for Mining and Cement DKKm 5,000 4,000 3,000 2,000 1,000 Notes: Please refer to pages 7 and 10 for detalls about one-off adjustment items for the Mining and Cement busines 37 MINING 14.0% 2,505 2,513 eal Margin DKKm 15% 2,500 2,000 10% 1,500 1,000 5% 500 0% a4'22 20/02/2025
Slide 38: Order intake and revenue growth
Order intake and revenue growth Order intake growth Mining Cement NCA Group Revenue growth Mining Cement NCA Group 04 2024 vs. 042023 04 2024 vs. 042023 Organic 13% 6% nja 9% Organic 5% 15% -34% -7% Divestments 0% 6% nja -2% Divestments 0% 6% 0% -2% Currency -2% 1% na -2% Currency -2% 1% 0% -2% Tota
Slide 39: Order backlog and conversion to revenue
Order backlog and conversion to revenue Order backlog / LTM revenue at 75.4% in 04 2024 ORDER BACKLOG EXPECTED BACKLOG CONVERSION TO REVENUE -14% vs.04 2023 * 59% during 2025 DKKm Order backlog/Revenue + 34% during 2026 25,000 140% * 7% during 2027 and beyond 120% 20,000 Outstanding order backlog re
Slide 40: Regional revenue split
Regional revenue split REVENUE 2024 Mi nawer Ml samer [ill EMEA 40 20/02/2025 2024 Annual Report investor presentation APAC REVENUE 2023 FLS
Slide 41: Consolidated performance
Consolidated performance (DKKm) Order intake - Service order intake - Products order intake Order backlog Revenue - Service revenue - Products revenue Gross profit Gross profit margin EBITA EBITA margin EBIT EBIT margin Financial cost net Tax Profit/loss, continuing activities Profit/loss, discontin
Slide 42: Consolidated cash flow
Consolidated cash flow GROUP (DKKm) 42024 14 2023 Change 2024 2023 Change EBITDA, adjusted 698 480 218 2,308 1,676 632 EBITDA, discontinued i} -157 157 i} “7 val Change in provisions, pensions and employee benefits -24 -486 462 WwW -236 347 Change in NWC 308 1,372 1,064 774 298 1,072 Financial payme
Slide 43: Net working capital components
Net working capital components Net working capital increased to DKK 2,208m at the end of 03 2024 NET WORKING CAPITAL DkKm 3,000 207 a4 oF a2 a3 a4 a a a @% 2022 2023 2023 2023 2023 2024 2024 2024 2024 NET WORK-IN-PROGRESS ASSETS Dkkm, 400 218 200 0 -200 -400 -600 a4 of a2 a8 a4 at a a8 @ 2022 2023 2
Slide 44: Investor relations contacts
44 2024 Annual Report inv Head of Investor Relations Phone: +45 2485 0384 Email: andh@fismidth.com SVP, Head of Corporate Affairs & IR Phone: +45 2169 6657 Email: li@flsmidth.com FLS
Slide 45: Follow us here
Follow us here @)@O® FLSmidth & Co. A/S Vigerslev Allé 77 2500 Valby, Copenhagen Denmark Phone: +45 3618 1000 Email: info@FLSmidth.com www.flsmidth.com CVR: 58180912 nual Report
Flsmidth & Co A/S B Shs — Q4 2024 Earnings Presentation on 6ix