Flsmidth & Co. A/s · OMXCOP:FLS
Flsmidth & Co. A/s — Flsmidth & Co A/S B Shs — Q1 2025 Earnings Presentation
47 slides from Flsmidth & Co. A/s's earnings presentation, May 14, 2025
Slide 1: Investor Presentation
Investor Presentation 14 May 2025
Slide 2: Forward-looking statements
Forward-looking statements This pres ooking statements. Contents 01 02 03 04 Key highlights for 012025 Sustainability Highlights for Q12025 Mining performance Cement performance 05 06 07 Financial review 2025 financial guidance Q&A session
Slide 3: Commercial and financial highlights for Q1 2025
Service order intake in line with expectations Growth in the order intake for consumables and PC&V-related Products orders 14% growth in Service revenue driven by effective backlog management and order execution Adjusted EBITA margin of 15.1% reflecting continued profitability improvements Significa
Slide 4: Sustainability performance and highlights for Q1 2025
Sustainability performance and highlights for O12025 Scope 3 Economic intensity =| (use of sold products) Spend with suppliers with @) ge science-based targets Se Scope 1&2 Greenhouse ® gas emissions S 7,765 2,002 22.7 HIGHLIGHTS tCO,¢ (market-based) tCO,e/DKKm order intake 10, 0, 10, * Newnmillline
Slide 5: Tariffs and potential impact
Tariffs and potential impact Exposure and potential impact — ~20% of our sales from comes from US with ~50% of our sales to the US being imports — Wecurrently expect limited direct impact on our operations — Continued tariff-related uncertainty may further delay larger investment decisions and impac
Slide 6: The overall market conditions in the mining markets
The overall market conditions in the mining markets have remained consistent with levels seen at the end of 2024 6 14May 2025 12025 interim Financial Report | Investor presentation Mining service market has remained stable and active, albeit with a relative softness in North America, likely due to m
Slide 7: Through key strategic actions, we now have our target portfolio in place
Through key strategic actions, we now have our target Mining technology and service portfolio in place Illustrative development in annual Mining order intake (DKKbn) Key strategic initiatives t DKK ~3bn + Significant de-risking of order intake Pruning of Mining Products portfolio Reduction of third-
Slide 8: Order intake in line with expectations
Order intake in line with expectations, with year-on-year decline primarily reflecting timing of large Products orders MINING ORDER INTAKE MINING ORDER INTAKE (DKKm) (DKKm) 5,000 Fox 3,000 a | Q12025 HIGHLIGHTS 2,500 4,000 3y7 2,000 em)» 1,045 3,000 mix | we 4,500 N 2,000 =i —>S 5) 1000 Cam) -» 2784
Slide 9: Increase in Mining Service revenue
Increase in Mining Service revenue reflects effective backlog management and enhanced order execution MINING REVENUE MINING REVENUE (DKKm) (DKKm) 5,000 3,708 ~~Gae%> B 4,000 | | & | Q12025 HIGHLIGHTS 3,000 2,000 a 2,811 2,748 2,404 1,000 Q12024 Q12025 7 ar23 Q3'23 ar24 03°24 ar25 Service Ill Product
Slide 10: Strong earnings performance in Q1 2025
Strong earnings performance in Q1’25 reflects increase in gross margin DKKm Margin 750 15.1% 16% 14.0% 13.7% on 600 12.9%, 11.5% 42% 450 10.3% 10% 8% 300 6% 4% 150 2% ar23 02'23 03'23 04'23 or24 02'24 0324 04'24 or25 MB eBITA One-off items EBITA margin Adjusted EBITA margin Notes: One-off items incl
Slide 11: Q1 2025 Interim Financial Report
1" 14 May 2025 12025 interim Financial Report | investor presentation
Slide 12: Cement order intake reflects MAAG divestment
Cement order intake reflects MAAG divestment and effective de-risking of the portfolio CEMENT ORDER INTAKE CEMENT ORDER INTAKE (DKKm) (DKKm) 1,800 1,000 1,800 800 852 ~ 4,200 i 233 | 600 900 fi | a 400 i 600 ~ Ga). Not —- > 200 300 (2! 688 Gig - ie) Q12024 Q12025, 123 Q3'23 Qr24 Q3'24 Qr25 Service I
Slide 13: Service revenue reflects more stable business model
Service revenue reflects more stable business model, while Products impacted by divestments and de-risking CEMENT REVENUE CEMENT REVENUE (DKKm) (DKKm) 2,000 1,208 +500 4,021 o le _ ia | 305 4,000 487 _ [] “| 724 — 500 Ge)- i 718 716 Q12024 Q12025 7 ar23 Q3'23 ar24 03°24 ar25 Service Ill Products FLS
Slide 14: 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% 9.5% io / a% —— — -8.6% 100 / N Be ‘—_ | | ___ -- 4% 50 i : ar23 02'23 Q3'23 04'23 ar24 02°24 03°24 04'24 ar25 MB csitA Mloneoftitens Y¥ Divestment gain — — EBITAmargin Adjusted EBITA m
Slide 15: Consolidated financial performance in Q1 2025
Consolidated financial performance in Q12025 CONSOLIDATED FINANCIALS Km) 12025 12024 Order intake 4,629 5,248 Revenue 4729 4,839 Gross profit margin* 34.4% 28.6% SG&A* -978 -977 0% Adjusted EBITA 656 443 48% Adjusted EBITA margin 13.9% 9.2% A7%p EBITA 596 365 63% EBITA margin 12.6% 7.5% 5.1%p Financ
Slide 16: Improvements in gross margin reflects strong Service revenue
Improvements in gross margin reflects strong Service revenue in Mining GROSS PROFIT GROSS MARGIN BY SEGMENT +18% growthin Q1’25 vs. 0124 Q12025 vs.Q12024 DkKKm Gross margin 2,000 40% 34.4% gee 1,500 30% 25% 4,000 20% 15% 500 10% 5% Qr23 © 602'23. O3'23 O4'23) «QT24 §=02'24 O3'24 0424 aT'25 Mining Ce
Slide 17: SG&A stable versus Q1 2024
SG&A stable versus 01’24, reflecting positive effects from business simplification offset by strategic hirings SG&A COSTS SG&A ratio up by 0.5%p vs. 0124 DkKm SGEA ratio 1,200 25% 20% 900 15% 600 10% 300 5% ar23 0223 0323 0423 aT'24 0224 O3'24 A424 A125 MM sceA cost — SG&A ratio 7 14 May 2025 12025
Slide 18: Group EBITA margin positively impacted by the higher gross margin
Group EBITA margin positively impacted by the higher gross margin GROUP EBITA GROUP EBITA MARGIN BRIDGE Continued improvement in profitability Q12025 vs. 012024 (approximate development) DkKKm EBITA margin 800 16% mmm 13.9% ax ~0.5%) | 15% xed 600 12% 10% 400 8% 200 ml 7 ar23) 02'23. Q3'23 «04'23) «
Slide 19: Higher NWC in line with expectations
Higher NWC in line with expectations primarily a result of lower trade payables, partly offset by lower WIP assets NET WORKING CAPITAL NET WORKING CAPITAL DEVELOPMENT IN Q12025 Dkkm NWC ratio (DKKm) 12025 042024 Change $000 1% Inventories 3,587 3,572 15 2,500 12% Trade receivables 3,940 4,073 -133 2
Slide 20: Improved cash flow from operations
Improved cash flow from operations driven by higher earnings and relatively smaller increase in NWC DKKm 1,000 800 600 400 200 -200 -400 ~600 GROUP CASH FLOW righ tk. Qr23 02'23 0323 04'23 A124 O2'24 O3'24 04'24 QOT25 Mi crro Ml Free cash flow, adjusted for M&A * PPE = Property, plant and equipment
Slide 21: Financial gearing remains well-below our capital structure target
Financial gearing remains well-below our capital structure target NET INTEREST-BEARING DEBT Ratio remains lowat 0.4x LEVERAGE AT END-01 2025 oKkm NIBD/EBITDA 2,000 25 0.4x soos 20 g debt / EBITDA 1,043 16 1,000 CAPITAL STRUCTURE TARGET 10 500 05 <2.0x ring debt / EBITDA ratio Q12023 022023 032023 04
Slide 22: Financial guidance for the FY2025 raised
Financial guidance for the FY2025 raised on 14 May 2025 Mining Group Revenue (DKKbn) ~19.0 (unchanged) Revenue (DKKbn) ~15.0 (unchanged) Adj. EBITA margin 13.0-13.5% (12.5-13.0%) Adj. EBITA margin 14.0-14.5% ( -5-14.0%) The Adjusted EBITA margin excludes transformation and separation costs of around
Slide 23: 2025 has started off better than anticipated
2025 has started off better than anticips to the upgrade of FY 2025 financial gui Our flexible supply chains and proacti' mitigation measures help navigate current turmoil Through key strategic actions, we now have our target Mining technology and service portfolio in place We see growth in key stra
Slide 24: Appendix
Appendix 1. Our equity story ina nutshell 2. 012025 financial appendix pore FLS 24 14 May 2025 12025 interim Financial Report | investor presentation
Slide 25: Our equity story in a nutshell
uts Inan 1. Our equity story
Slide 26: Our value proposition
Our value proposition Our pure play Key market Our value strategies drivers creation drivers Our long-term targets for the FY2026 Full flowsheet coverage Large installed base ervice centricity ini Middle class growth G tact Mining Industry challenges Sustainability & technology -, Industry know-how
Slide 27: 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 28: Our organisation and culture is evolving
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 29: Simplifying our operating model
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 30: 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 30 14 May 2025 12025 interim Financial Report | Investor
Slide 31: Sustainability aim
SI aim FLS or presentation
Slide 32: We are digitalising the entire flowsheet
Weare digitalising the entire flowsheet Pumps, Product Cyclones & Beneficiation Tailings digitalisationlevel Extraction Conveying Comminution Valves and Recovery Thickening Filtration | Management “> Sensors @ @ @ e@ @ $2 Product Control e @ e @ e e e Insights e e e e e e e e isk Health e @ e @ @ @
Slide 33: 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 34: Key benefits delivered by MissionZeroMine
Key benefits delivered b aMissionZeroMine ~~ [es ; . Beneficiation iil : : Sy 45% reduction | coarsealR™ 5 in flotation : : energy per REFLUX 30% overall . : . é etn kWh/t energy erty i 30% increase - consumption si inplant reduction . ae throughput Concentrate = - ca Low Impact ti Thiekener 35% red
Slide 35: Q1 2025 financial appendix
2. Q12025 financial ap DE
Slide 36: Mining performance
Mining performance Km) Order intake - Service order intake - Products order intake Order backlog Revenue - Service revenue - Products revenue Gross profit Gross profit margin Adjusted EBITA margin EBITA EBITA margin 36 14May 2025 012025 3,777 2,732 1,045 1,165 3,708 2,748 960 1,304 35.2% 15.1% 508 1
Slide 37: Mining order intake by commodity
Mining order intake by commodity Gold a Copper Other Mining 239% sh Coal onore Fertilizer FLS
Slide 38: Cement performance
Cement performance Km) Order intake - Service order intake - Products order intake Order backlog Revenue - Service revenue - Products revenue Gross profit Gross profit margin Adjusted EBITA margin EBITA EBITA margin 38 14May 2025 12025 interim Financial Report | Investor presentation 012025 852 619
Slide 39: 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 39 MINING 2,81 2,404 2,748 Margin 16% 14% 12% 10% 8% 6% 4% 2% 0% ar23 0223 0323 O4'23 al24 224 Q3'24 O4
Slide 40: Order intake and revenue growth
Order intake and revenue growth Order intake growth Mining Cement — Group Revenue growth Mining Cement Group 012025 vs. 012024 012025 vs. 012024 Organic =10% “11% Organic 4% “11% 1% Divestments 0% 4% Divestments 0% -4% 1% Currency 0% 0% Currency 0% 0% 0% Total growth 10% 112% Total growth 4% 15% -2%
Slide 41: Order backlog and conversion to revenue
Order backlog and conversion to revenue Order backlog / LTM revenue at 73.5% in O1 2025 ORDER BACKLOG EXPECTED BACKLOG CONVERSION TO REVENUE -15.6%vs. 012024 17,482 DkKm Order backlog/Revenue 25,000 140% ae 120% 20,000 100% 46,000 80% 40,000 60% 15,214]h14,762 roy 5,000 20% on 2.277 1342 or23 03°23
Slide 42: Regional revenue split
Regional revenue split REVENUE 012025 REVENUE 012024 Mi nawer Ml samer [ill EMEA APAC FLS 42 14May 2025 12025 interim Financial Report | Investor presentation
Slide 43: Consolidated performance
Consolidated performance (DKKm) 12025 012024 Change 2024 Order intake 4,629 5,248 12% “1% 19,133 - Service order intake 3,351 3,505 4% 13,933 - Products order intake 1,278 1,743 -27% 5,200 Order backlog 14,762 17,482 -16% 16,214 Revenue 4,729 4,839 -2% 1% 20,187 - Service revenue 3,464 3,130 11% 12,
Slide 44: Consolidated cash flow
Consolidated cash flow Group (DKKm) Q12025 Q12024 Change EBITDA 664 442 222 Adjustment for gain on sale of activities and property, plant and equipment and other non-cash items -2 -7 15 Change in provisions, pensions and employee benefits -4 120 -124 Change in net working capital -429 -650 221 Finan
Slide 45: Net working capital components
Net working capital components Net working capital increased to DKK 2,415m at the end of 012025 NET WORKING CAPITAL TRADE RECEIVABLES TRADE PAYABLES, NET Dkkm DkKkm Dkkm 3,000 6,000 4,000 2,15 4,500 4 3,000 2745 2,000 _ 3,000 2,000 ,000 500 000 0 0 Qr23 0223 0323 04°23 A124 02°24 03'24 0424 AT25 QV2
Slide 46: Q1 2025 Interim Financial Report
012025 interim Financial Report | inv presentation 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 47: 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
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