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FLSmidth & Co. — Interim / Quarterly Report 2021
May 5, 2021
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Download source fileInterim Report Q1 2021
1 January – 31 March 2021
(Company announcement no. 6)
FLSmidth & Co. A/S
Vigerslev Allé 77
DK-2500 Valby
CVR No. 58180912
WE DISCOVER POTENTIAL
Management Review
Management Review
Financial Statements
- Consolidated Statement of Financial Position
- Income Statement
- Statement of Comprehensive Income
- Statement of Cash Flows
- Statement of Changes in Equity
Notes
- 8. Significant accounting policies
- 1. Segment reporting
- 2. Revenue
- 3. Income tax expense
- 4. Earnings per share
- 5. Property, Plant and Equipment
- 6. Intangible assets
- 7. Trade and other receivables
- 8. Significant accounting policies
- 9. Provisions
- 10. Derivative financial instruments
- 11. Financial liabilities
- 12. Share capital
- 13. Net financial expenses
- 14. Related parties
- 15. Commitments and contingencies
- 16. Events after the reporting date
CONTENTS
Towards zero emissions in mining and cement
Read more on page 5
Management Review
Highlights Q1 2021
- Solid order intake, however below the exceptionally strong Q1 2020. Order intake increased 6% compared to Q4 2020 and service orders increased 19%
- As expected, revenue decreased 13% organically, comprising a 7% decrease in Mining and a 23% decline in Cement compared to Q1 2020
- EBITA margin increased slightly to 5.1%, positively impacted by a higher share from service
- Positive effects from implemented business improvement activities, but continued costs of reshaping Cement, i.e. simplifying the business, adjusting the cost structure and repositioning Cement to benefit from the green transition
- Free cash flow increased to DKK 234m from DKK -144m in Q1 2020, driven by the fourth consecutive quarter of decreased net working capital
- Net debt to EBITDA ratio improved from 1.6x at the end of 2020 to 1.4x in Q1 2021
- We recently received approval for our decarbonisation targets from the Science Based Targets initiatives
Mining
Mining order intake decreased 27% organically compared to an exceptionally strong Q1 2020, but increased 37% compared to Q4 2020. Despite lower revenue and gross profit in the quarter, EBITA increased by 6% in Q1 2021 as a result of cost efficiency improvements. The corresponding EBITA margin increased to 8.8% from 7.3% in Q1 2020. The negotiations concerning an acquisition of ThyssenKrupp's mining business are progressing at a non-binding stage. Accordingly, there can be no assurances as to whether and when a transaction will transpire.
Cement
The organic Cement order intake increased by 14% compared to Q1 2020. Revenue decreased by 23% organically, due to the continued impact of the pandemic and a lower backlog entering the year. Consequently, the EBITA margin was -1.7% compared to 1.8% in Q1 2020. Business reshaping activities to improve profitability in Cement are ongoing.
Guidance 2021
FLSmidth maintains its guidance for group revenue of DKK 15.5-17.0bn and a group EBITA margin of 5-6%. The guidance is based on expected different developments in the two individual businesses, Mining and Cement, and continued impact from the pandemic in Q2 2021, where business activity is expected to remain low. In parts of the world, the pandemic impact is likely to last beyond H1 2021.
The outlook for the mining industry remains positive. For 2021, the Mining business revenue and EBITA are expected to grow in the second half of the year. EBITA margin for Mining is expected to be high-single digit for the full-year.
The outlook for the cement industry remains impacted by overcapacity and slow recovery. The Cement business revenue is expected to decline further in 2021, and initiatives to reshape the Cement business are ongoing. The Cement business is not expected to be EBITA positive in 2021 due to continued Cement reshaping costs and low capacity utilisation in the service business until the pandemic eases.
In light of the ongoing pandemic, FLSmidth delivered a solid Q1 with a good order intake and revenue as expected. The sequential increase in order intake was underpinned by a strong focus on service as well as orders for plant digitalisation and emissions reduction. The EBITA margin increased slightly and cash flow was strong. The organisation has done a tremendous job of managing safety protocols whilst helping our customers sustain production and improve operational efficiency. There is a strong correlation between the pandemic and business activity. The global vaccination programmes provide hope of easing restrictions and a gradual improvement in business sentiment in the second half of the year. Surging infection rates in parts of the world could however slow down the pace of recovery.
- Thomas Schulz, Group CEO
FINANCIAL HIGHLIGHTS
| GROUP | MINING | CEMENT | ||||
|---|---|---|---|---|---|---|
| Order intake DKKm | 4,985 | 24% | 3,585 | 31% | 1,400 | 7% |
| Revenue DKKm | 3,713 | 18% | 2,412 | 12% | 1,301 | 27% |
| EBITA & EBITA margin DKKm - % | 190 5.1% | 17% | 213 8.8% | 6% | (23) -1.7% | 172% |
| Cash flow from operating activities DKKm | 285 | |||||
| Earnings per share DKK | 1.0 | 50% | ||||
| Net working capital ratio | 10.7% | 2.8%-point | ||||
| NIBD/EBITDA | 1.4x | unchanged | ||||
| Revenue split by service & capital % | 67% (Q1 2020: 61%) | 61% (Q1 2020: 52%) | 39% (Q1 2020: 48%) | |||
| Service | Capital | Service | Capital | Service | Capital |
Figures for Q1 2020 are shown for comparison.
| Q1 2020 | Q1 2021 | |
|---|---|---|
| GROUP | ||
| Order intake DKKm | 6,526 | 4,985 |
| Revenue DKKm | 4,525 | 3,713 |
| EBITA DKKm | 228 | 190 |
| MINING | ||
| Order intake DKKm | 5,214 | 3,585 |
| Revenue DKKm | 2,735 | 2,412 |
| EBITA DKKm | 201 | 213 |
| CEMENT | ||
| Order intake DKKm | 1,312 | 1,400 |
| Revenue DKKm | 1,790 | 1,301 |
| EBITA DKKm | 32 | -23 |
MissionZero developments
Through our sustainability programme MissionZero, we develop and deliver solutions to enable our customers to operate with zero emissions by 2030. During Q1 we launched a number of upgrades to our flagship technologies and received several sustainability-related orders. To help drive progress, sustainability-related KPIs have been integrated into a long-term incentive plan and embedded in regional sales targets.
Digital solutions to accelerate energy savings
Digitalisation presents strong opportunities for the cement industry to deliver energy savings, higher fuel substitution rates and maintenance planning. In a new contract signed earlier this year, the Chinese construction company CBMI Construction Co. ordered the supply and engineering of three complete control ECS software systems for two existing and one new cement line at Kirene in Senegal. With a complete and integrated control system across all three lines, CBMI Construction Co. has now established the digital foundation for its own customers to make data-driven decisions on process optimisation.
Upgrading our flagship technologies
Driven by our MissionZero R&D focus, we recently launched a significant improvement to our AFP2525 Automatic Filter Press. By employing a filter press to remove the water from tailings waste, the AFP2525 eliminates the need for wet tailings dams, while the reuse of process water minimises environmental risks and supports the social license to operate of miners. With increased water recovery rates and reduced downtime it meets the growing customer demand for dewatering equipment that reduces the need for fresh water intake and cuts costs for the mine site.
Operational sustainability
We have recently received approval for our decarbonisation targets by the Science Based Targets initiative. These targets commit us to being carbon neutral in our own operations by 2030 and to improving our economic intensity by 7% per annum by selling more sustainability-related solutions to our customers. The approval of the targets provides us with a strong framework to measure the success of our MissionZero programme and builds further credibility towards key stakeholders, customers and investors.
In April, FLSmidth joined the Copper Mark, an international framework established to demonstrate responsible copper production and to support the copper industry in its efforts to minimise its environmental footprint and adhere to the United Nations Sustainable Development Goals (SDGs). By joining the Copper Mark, we further advance our MissionZero ambition by supporting our mining customers in their ambitions to minimise their environmental footprint by 2030.
SUSTAINABILITY HIGHLIGHTS
| Q1 2021 | Target | |
|---|---|---|
| Safety (TRIR) | 1.0 | zero harm |
| Total Recordable Injury Rate/ million working hours | (10% y-o-y reduction until 2030) | |
| Women managers % | 13.3 | 14.3% |
| Water withdrawal m³ | 40,069 | 187,479 |
| Greenhouse gas emissions (CO2 emissions) tonnes | 10,267 | 38,685 |
Strong safety performance in Q1 following continuous improvement plans and top management focus. Numbers continue to be impacted by COVID-19 pandemic.
Continued progress on gender diversity in Q1 in line with long-term target. Improvements driven by regional actions focused on diversity in recruitment and employer attractiveness.
Solid progress against our 2021 target driven by local improvement initiatives.
FLSmidth took the decision to switch from Scope 1 and 2 emissions to Scope 2 based reporting will more accurately reflect the impact from our targeted initiatives to reduce scope 2 GHG emissions by purchasing more renewable electricity.# Management Review
KEY FIGURES DKKm
| Q1 2021 | Q1 2020 | 2020 | |
|---|---|---|---|
| INCOME STATEMENT | |||
| ORDERS | |||
| EARNING RATIOS | |||
| CASH FLOW | |||
| BALANCE SHEET | |||
| FINANCIAL RATIOS | |||
| SHARE RATIOS | |||
| SUSTAINABILITY | |||
| KEY FIGURES | |||
| # Management Review |
Return on capital employed (ROCE) decreased to 4.8% (Q1 2020: 10.2%) as a result of lower earnings.
Employees
The number of employees decreased by 450 to 10,189 at the end of Q1 2021 (end of 2020: 10,639). The decrease related to a phase-out of a Cement operations & maintenance contract and ongoing activities to reshape the Cement business, including a workforce reduction in countries where local labour restrictions related to COVID-19 have prohibited us from right-sizing the organisation earlier.
Backlog
| Item | Q1 2019 | Q2 | Q3 | Q4 | Q1 2020 | Q2 | Q3 | Q4 | Q1 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue & EBITA margin | 0 | 3,000 | 6,000 | 9,000 | 12,000 | 15,000 | 18,000 | ||
| EBITA% | |||||||||
| EBITA | 0 | 1,000 | 2,000 | 3,000 | 4,000 | 5,000 | 6,000 | 7,000 |
Mining
Cement
| Item | Q1 2019 | Q2 | Q3 | Q4 | Q1 2020 | Q2 | Q3 | Q4 | Q1 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | |||||||||
| EBITA margin | 0% | 2% | 4% | 6% | 8% | 10% | 12% | 14% |
Mining
Cement
| Item | Q1 2019 | Q2 | Q3 | Q4 | Q1 2020 | Q2 | Q3 | Q4 | Q1 2021 |
|---|---|---|---|---|---|---|---|---|---|
| (100) | 0 | 100 | 200 | 300 | 400 | 500 | 600 |
Mining
Cement
FLSmidth
Interim Report Q1 2021
9
Management Review
CAPITAL
Free cash flow increased to DKK 234m. The net debt to EBITDA ratio decreased from 1.6 at the end of 2020 to 1.4 in Q1.
Net working capital
Net working capital has declined DKK 1.1bn since Q1 2020 and decreased to DKK 1,678m at the end of Q1 2021 (end of Q4 2020: DKK 1,752m). The reduction related mainly to milestone payments on mining projects and a decline in trade receivables, partly offset by an increase in trade payables and inventories. The net working capital ratio was unchanged compared to Q4 2020 at 10.7% of 12-months trailing revenue. Utilisation of supply chain financing decreased in Q1 driven by a lower level of activity and, in particular, by a lower share of Cement business relative to Mining. Utilisation of the programme is expected to increase in Q2 2021.
Cash flow from operating activities
Cash flow from operating activities (CFFO) increased to DKK 285m (Q1 2020: DKK -35m). The main positive contributor to CFFO was the net working capital inflow of DKK 149m as compared to a net working capital outflow of DKK 197m in Q1 2020. Cash flow from operating activities related to discontinued activities amounted to DKK -9m in Q1 2021 (Q1 2020: DKK 1m).
Cash flow from investing activities
Cash flow from investing activities amounted to DKK -51m (Q1 2020: DKK -109m). The lower investment level year-on-year related primarily to the acquisition of a service centre in North America in Q1 2020, amounting to DKK -41m.
Free cash flow
Free cash flow (cash flow from operating and investing activities) amounted to DKK 234m in Q1 2021 (Q1 2020: DKK -144m).
Dividend
At the Annual General Meeting in March, it was approved to pay a dividend of DKK 2 per share corresponding to a dividend yield of 0.9% and a pay-out ratio of 50%, in line with our targeted pay-out ratio. A total dividend of DKK 83m was paid in Q1 2021.
Net interest-bearing debt
Due to the positive free cash flow, net interest-bearing debt (NIBD) decreased to DKK 1,577m (end of Q4 2020: DKK 1,808m), and financial gearing decreased to 1.4x (end of 2020: 1.6x). Gearing remains below our capital structure target of maximum two times NIBD to EBITDA through-the-cycle.
Financial position
By the end of Q1 2021, FLSmidth had DKK 6.8bn of available committed credit facilities of which DKK 4.4bn was undrawn. The committed credit facilities have a weighted average time to maturity of 4.2 years. DKK 1.6bn of credit facilities will mature in 2023 and the majority, DKK 5.0bn, will mature in 2026. The remaining DKK 0.2bn matures in later years.
Equity ratio
Equity at the end of Q1 2021 increased to DKK 8,451m (end of 2020: DKK 8,130m) based on the profit for the period and due in particular to a positive effect from currency adjustments regarding translation of entities in the quarter. The equity ratio was 40.2% (end of 2020: 39.7%), above our capital structure target of minimum 30% through-the-cycle.
Acquisitions and divestments
On 15 January 2021, FLSmidth announced that it was in negotiations with ThyssenKrupp concerning an acquisition of ThyssenKrupp's mining business. The negotiations are progressing at a non-binding stage. Accordingly, there can be no assurances as to whether or when a transaction will transpire.
| Item | Q1 2019 | Q2 | Q3 | Q4 | Q1 2020 | Q2 | Q3 | Q4 | Q1 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Cash flow | (100) | 0 | 100 | 200 | 300 | 400 | 500 | 600 | 700 |
| Net interest-bearing debt | 0 | 500 | 1,000 | 1,500 | 2,000 | 2,500 | 3,000 | ||
| Net working capital | |||||||||
| NWC% | 0.0% | 3.0% | 6.0% | 9.0% | 12.0% | 15.0% | 18.0% |
Cash flow from operating activities
Net interest bearing debt (NIBD)
Net working capital
Net working capital ratio, end
FLSmidth
Interim Report Q1 2021
10
Management Review
Overall, the pandemic is disrupting the mining industry to a lesser degree than many other industries. During the first quarter of the year, copper prices increased to their highest level in a decade, driven by expectations of a post-pandemic economic recovery and increased demand for the commodities that are required to enable the green transition. Miners are generating good cash flows and they are well capitalised to invest, especially given the low level of capex spent in recent years. Although we have seen improved site access for local service teams in some regions, travel restrictions and limited site access continue to impact demand for on-site technical services. Many customers are still enforcing safety protocols and restricting site access to external service providers in order to protect employees and safeguard production, which impacts their equipment and service spend. Refurbishment and maintenance has been postponed, which is expected to translate into new opportunities when the market normalises. The timing of converting these opportunities to orders remains uncertain and with infection cases still surging in many parts of the world, it is difficult to predict the shape of the recovery curve. We have seen some recovery in demand from our customers in North America and high production rates in other parts of the world given near record pricing for some commodities, such as in Australia where iron ore and gold production remain strong. However, lockdowns and closed borders in many South American countries continue to reduce activity, where high infection rates have curbed mine activity and development projects. India, where FLSmidth has more than 20% of its employees, is currently fighting record high infection rates which have overwhelmed the country's healthcare system. Across most regions, it is expected that the pandemic will continue to impact the industry in the first half of 2021, and in parts of the world, the pandemic impact is likely to last beyond H1 2021. Still, we have a very healthy pipeline of both large and small opportunities, and the outlook for investments in mining remains positive.
MINING MARKET DEVELOPMENTS
Lockdowns and restricted site access continue to limit activity in many regions, but the outlook for the mining industry is positive with strong commodity prices and good industry fundamentals. In the longer term, the switch to green energy will require a massive increase in infrastructure and the mining industry will need to scale up investments in copper, battery metals and other minerals to meet this growing demand.
Mining order intake split per Region
* 24% North America
* 27% South America
* 12% Europe, North Africa, Russia
* 20% Sub-Saharan Africa, Middle East & South Asia
* 3% Asia
* 14% Australia
Mining order intake split by commodity
* 31% Copper
* 14% Gold
* 14% Coal
* 1% Fertilizer
* 17% Iron ore
* 23% Other
FLSmidth
Interim Report Q1 2021
11
Management Review
Q1 2021 Mining order intake decreased 27% organically compared to Q1 2020. Including currency effects, the order intake in Q1 2021 decreased by 31% to DKK 3,585m (Q1 2020: DKK 5,214m), comprising a 6% decrease in service orders and a 48% decrease in capital orders. The decrease in capital orders was due to an exceptionally strong capital order intake in the comparative quarter, which included three large orders with a combined value of around DKK 2.4bn. Q1 2021 included one large order valued at approximately DKK 200m. Adjusted for these large orders, total Mining order intake increased by 20% compared to Q1 2020. In the quarter, service orders and capital orders represented 54% and 46% of Mining order intake respectively. Compared to Q4 2020, Mining order intake increased 37% related to the timing of medium-sized capital orders and improved site access for local service teams. Travel restrictions continue to limit on-site technical services and projects, and new lockdowns are being imposed in parts of the world due to surging COVID-19 infection rates. Revenue decreased by 7% organically and by 12% including the effects of currency, to DKK 2,412m in Q1 2021 (Q1 2020: DKK 2,735m). Capital revenue decreased by 24% as a result of the lumpiness of the capital business with fluctuating revenue recognition, and due to continued restricted site access which has impacted progress on projects. Service revenue decreased by 4%, also due to restricted access to mine sites. Service accounted for 67% of Mining revenue in Q1 2021 (Q1 2020: 61%). Gross profit, before allocation of shared cost, decreased by 5% to DKK 648m (Q1 2020: DKK 680m). The corresponding gross margin increased to 26.9% (Q1 2020: 24.9%), due to a larger share of service business with higher margins as well as a positive effect from the business improvement programme. Despite the lower revenue and gross profit in the quarter, EBITA increased by 6% to DKK 213m (Q1 2020: DKK 201m) as a result of cost efficiencies. The corresponding EBITA margin increased to 8.8% from 7.3% in Q1 2020.
MINING FINANCIAL PERFORMANCE
Growth in order intake in Q1 2021 (vs.# Management Review
Q1 2021
The organic order intake in Q1 2021 increased by 14% compared to Q1 2020. Including currency effects, the order intake in Q1 2021 increased by 7% to DKK 1,400m (Q1 2020: DKK 1,312m), comprising 5% decrease in service orders and a 29% increase in capital orders. In the quarter, service orders and capital orders represented 57% and 43% of cement order intake, respectively. The improvement in capital order intake was based on a couple of sustainability related medium-sized product orders. Compared to Q4 2020, Cement service order intake increased slightly due to improved site access for local service teams in parts of the world. In other regions new lockdowns are being imposed. Cross-border travel restrictions and quarantine rules remain a key challenge for our global service technicians. In Q1 2021, revenue decreased by 27% to DKK 1,301m due to the continued impact of the pandemic and a lower backlog entering the year. Cement service revenue decreased by 15% while capital revenue declined by 41%. Currency effects had a 4% negative impact on revenue, which meant the organic decrease in revenue was 23%. Service accounted for 61% of Cement revenue in Q1 2021 (Q1 2020: 52%). Gross profit, before allocation of shared cost, decreased by 22% to DKK 306m (Q1 2020: DKK 391m), but the gross margin increased to 23.5% (Q1 2020: 21.8%) due to a higher share from service. Cement profitability is, however, still affected by the large decline in revenue, and increased costs related to the pandemic and ongoing reshaping. Consequently, EBITA amounted to DKK -23m (Q1 2020: DKK 32m) and the corresponding EBITA margin was -1.7% (Q1 2020: 1.8%).
CEMENT FINANCIAL PERFORMANCE
Growth in order intake in Q1 2021 (vs. Q1 2020)
| Order intake | ||
| Revenue | ||
| Total growth | 7% | -27% |
Service and capital order intake Q1 2021 %
| Service | 57% | |
| Capital | 43% |
Revenue and EBITA margin DKKm EBITA %
| Service | ||
| Capital |
| Cement (DKKm) | Q1 2021 | Q1 2020 | Change (%) |
|---|---|---|---|
| Order intake (gross) | 1,400 | 1,312 | 7% |
| Revenue | 1,301 | 1,790 | -27% |
| Gross profit before allocation of shared cost | 306 | 391 | -22% |
| EBITA before allocation of shared cost | 107 | 197 | -46% |
| EBITA | (23) | 32 | -172% |
| EBIT | (51) | 8 | -738% |
QUARTERLY KEY FIGURES DKKm
| 2019 | 2020 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| INCOME STATEMENT | |||||||||
| Revenue | 1,081 | 1,315 | 1,126 | 1,327 | 1,047 | 912 | 884 | 1,022 | 935 |
| Gross profit | 265 | 316 | 269 | 292 | 242 | 216 | 204 | 246 | 236 |
| EBITDA before special non-recurring items | 395 | 574 | 459 | 580 | 319 | 223 | 255 | 337 | 287 |
| EBITA | 312 | 487 | 377 | 487 | 228 | 131 | 177 | 235 | 190 |
| EBIT | 218 | 381 | 294 | 393 | 146 | 46 | 91 | 145 | 101 |
| EBT | 215 | 349 | 284 | 323 | 150 | (7) | 89 | 149 | 92 |
| Profit/loss on continuing activities for the period | 145 | 234 | 190 | 229 | 106 | (12) | 48 | 84 | 57 |
| Profit/loss for the period | 136 | 223 | 190 | 227 | 101 | (17) | 43 | 78 | 54 |
| Gross margin | 24.5% | 24.0% | 23.8% | 22.0% | 23.1% | 23.7% | 23.1% | 24.1% | 25.2% |
| EBITDA margin before special non-recurring items | 8.9% | 10.5% | 9.7% | 9.6% | 7.0% | 5.8% | 6.7% | 8.0% | 7.7% |
| EBITA margin | 7.1% | 8.9% | 8.0% | 8.1% | 5.0% | 3.4% | 4.6% | 5.5% | 5.1% |
| EBIT margin | 4.9% | 6.9% | 6.2% | 6.5% | 3.2% | 1.2% | 2.4% | 3.4% | 2.7% |
| Order intake, gross | 1,575 | 1,729 | 1,516 | 1,815 | 1,268 | 991 | 941 | 1,148 | 1,400 |
| Order backlog | 1,576 | 1,611 | 1,559 | 1,716 | 1,558 | 1,423 | 1,435 | 1,630 | 1,720 |
SEGMENT REPORTING
Mining
| 2019 | 2020 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| Revenue | 743 | 937 | 800 | 958 | 763 | 641 | 627 | 768 | 772 |
| Order intake (gross) | 928 | 899 | 776 | 792 | 1,099 | 844 | 825 | 872 | 1,057 |
| Gross profit before allocation of shared costs | 198 | 248 | 204 | 220 | 183 | 161 | 155 | 192 | 206 |
| EBITA before allocation of shared costs | 125 | 175 | 133 | 151 | 92 | 56 | 68 | 84 | 91 |
| EBITA | 71 | 133 | 96 | 132 | 33 | (10) | 11 | 37 | 33 |
| EBIT | 51 | 106 | 68 | 107 | 10 | (32) | (12) | 12 | (1) |
| Gross margin before allocation of shared costs | 26.7% | 26.1% | 25.2% | 23.4% | 24.9% | 26.4% | 25.0% | 25.1% | 26.9% |
| EBITA margin before allocation of shared costs | 17.1% | 16.8% | 16.3% | 14.9% | 15.1% | 16.0% | 16.8% | 16.4% | 16.7% |
| EBITA margin | 9.5% | 10.4% | 9.2% | 9.1% | 7.3% | 7.8% | 9.0% | 9.3% | 8.8% |
| EBIT margin | 7.0% | 8.5% | 6.9% | 7.2% | 5.2% | 5.4% | 6.8% | 7.2% | 6.3% |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| Revenue | 772 | 800 | 743 | 958 | 763 | 641 | 627 | 768 | 772 |
| Order intake (gross) | 928 | 899 | 776 | 792 | 1,099 | 844 | 825 | 872 | 1,057 |
| Revenue | 772 | 800 | 743 | 958 | 763 | 641 | 627 | 768 | 772 |
| Order intake (gross) | 928 | 899 | 776 | 792 | 1,099 | 844 | 825 | 872 | 1,057 |
While we have seen a few regions with improved site access for local service teams, the cement market as a whole continues to be impacted by the pandemic. Plants are running at reduced capacity and remain difficult to access due to restrictions and preventative measurements taken by authorities and plant operators, which has affected service activity and curbed investments. Cement consumption continues to be impacted by the high market uncertainty and most large investments have been suspended pending an improvement in the business outlook. Given the low activity level, our efforts have been refocused on sustainability and digitalisation in order to be well positioned for future infrastructure projects that are expected to result from the government stimulus programmes that are planned or underway in various countries. However, macroeconomic conditions currently vary between countries and the timing and extent of an overall rebound in the cement market remain uncertain. In North America, the successful vaccination programme and improvement in business sentiment have helped remove some of the uncertainty that has held back investments, and we have started to see pockets of increased interest in spare parts as well as upgrades and retrofits. On the other hand, market activity in Africa and the Middle East remains hampered by lockdowns and high infection rates continue to reduce activity at cement plants across South America. While market activity improved in India during Q1, the country imposed another national lockdown in April which is likely to hit business sentiment and investment levels in the second quarter. At the same time, most of our cement customers in Europe, North-Africa and Russia will need to see improved cash generation before they ramp up investments.
CEMENT MARKET DEVELOPMENTS
The cement industry remains impacted by overcapacity, a situation which has been accelerated by the pandemic. Recovery is expected mid-term as large economic stimulus programmes, combined with an increasing focus on lower-carbon cement, are likely to create good opportunities. The timing and extent of an overall rebound in the cement market, however, remain uncertain.
Cement order intake split per Region %
| Cement share of Group order intake % | |
| North America | 23% |
| South America | 6% |
| Europe, North Africa, Russia | 30% |
| Sub-Saharan Africa, Middle East & South Asia | 21% |
| Asia | 19% |
| Australia | 1% |
Mining (DKKm)
| Q1 2021 | Q1 2020 | Change (%) | |
|---|---|---|---|
| Order intake (gross) | 3,585 | 5,214 | -31% |
| Revenue | 2,412 | 2,735 | -12% |
| Gross profit before allocation of shared cost | 648 | 680 | -5% |
| EBITA before allocation of shared cost | 403 | 414 | -3% |
| EBITA | 213 | 201 | 6% |
| EBIT | 152 | 143 | 6% |
16 Financial Statements Notes
DKKm
| Q1 2021 | Q1 2020 | |
|---|---|---|
| INCOME STATEMENT | ||
| Cement | ||
| Gross margin before allocation of shared costs | 22.2% | 22.0% |
| EBITA margin before allocation of shared costs | 12.8% | 14.1% |
| EBITA margin | 3.7% | 6.3% |
| EBIT margin | 2.2% | 4.4% |
| FLSmidth | ||
| Interim Report Q1 2021 | ||
| 16 Financial Statements | ||
| Notes | ||
| DKKm | Q1 2021 | Q1 2020 |
| | ||
| | 3,713 | 4,525 |
| | (2,778) | (3,478) |
| Gross profit | 935 | 1,047 |
| | (315) | (378) |
| | (338) | (362) |
| | 5 | 12 |
| EBITDA before special non-recurring items | 287 | 319 |
| | (15) | 0 |
| | (82) | (91) |
| EBITA | 190 | 228 |
| | (89) | (82) |
| EBIT | 101 | 146 |
| | 1 | 1 |
| | 298 | 439 |
| | (308) | (436) |
| EBT | 92 | 150 |
| | (35) | (44) |
| Profit for the period, continuing activities | 57 | 106 |
| | ||
| | (3) | (5) |
| Profit for the period | 54 | 101 |
| | ||
| | 53 | 98 |
| | 1 | 3 |
| 54 | 101 | |
| | ||
| | 1.0 | 2.0 |
| | 1.0 | 2.0 |
| | 1.1 | 2.1 |
| | 1.1 | 2.1 |
| Notes | ||
| DKKm | Q1 2021 | Q1 2020 |
| Profit for the period | 54 | 101 |
| Items that will not be reclassified to profit or loss: | ||
| | 7 | 0 |
| Items that are or may be reclassified subsequently to profit or loss: | ||
| | 358 | (336) |
| | ||
| | (13) | (31) |
| | (8) | (1) |
| | 2 | 0 |
| Other comprehensive income for the period after tax | 346 | (368) |
| Comprehensive income for the period | 400 | (267) |
| | ||
| | 399 | (269) |
| | 1 | 2 |
| 400 | (267) | |
| INCOME STATEMENT | ||
| STATEMENT OF COMPREHENSIVE INCOME | ||
| Financial performance | ||
| FLSmidth | ||
| Interim Report Q1 2021 | ||
| 17 Financial Statements | ||
| CASH FLOW STATEMENT | ||
| Notes | DKKm | Q1 2021 |
| | 287 | |
| | (3) | |
| EBITDA | 284 | |
| | (14) | |
| | ||
| Adjusted EBITDA | 270 | |
| | (13) | |
| | ||
| | 149 | |
| Cash flow from operating activities before financial items and tax | 406 | |
| | (19) | |
| | (102) | |
| Cash flow from operating activities | 285 | |
| | 0 | |
| | (32) | |
| | (19) | |
| | (3) | |
| | ||
| | 2 | |
| | 1 | |
| Cash flow from investing activities | (51) | |
| | (83) | |
| | 1 | |
| | (33) | |
| | 129 | |
| Cash flow from financing activities | 14 | |
| Change in cash and cash equivalents | 248 | |
| | 976 | |
| | 32 | |
| Cash and cash equivalents at 31 March | 1,256 | |
| The cash flow statement cannot be inferred from the published financial information only | ||
| Free cash flow | DKKm | Q1 2021 |
| | 234 | |
| | 232 | |
| Cash and cash equivalents at beginning of period | DKKm | Q1 2021 |
| | 946 | |
| | 30 | |
| Cash and cash equivalents at beginning of period | 976 | |
| FLSmidth | ||
| Interim Report Q1 2021 | ||
| 18 Financial Statements | ||
| Notes | DKKm | 31/03 2021 |
| ASSETS | ||
| | 4,315 | |
| | 857 | |
| | 458 | |
| | 157 | |
| | 210 | |
| | 332 | |
| Intangible assets | 6,329 | |
| | 1,475 | |
| | 366 | |
| | 84 | |
| | 126 | |
| Property, plant and equipment | 2,051 | |
| Lease assets | 293 | |
| | 1,272 | |
| | 166 | |
| | ||
| | 47 | |
| Other non-current assets | 1,485 | |
| Non-current assets | 10,158 | |
| | 2,476 | |
| | 3,282 | |
| | 2,276 | |
| | 485 | |
| | 308 | |
| | 783 | |
| Current assets | 10,866 | |
| | 0 | |
| Total assets | 21,024 | |
| Notes | DKKm | 31/03 2021 |
| EQUITY AND LIABILITIES | ||
| | 1,025 | |
| | (773) | |
| | (25) | |
| | 8,229 | |
| Shareholders in FLSmidth & Co. A/S | 8,456 | |
| | (5) | |
| Equity | 8,451 | |
| | 211 | |
| | 377 | |
| | ||
| | 411 | |
| | 201 | |
| | 2,498 | |
| | 272 | |
| | 141 | |
| | 129 | |
| Non-current liabilities | 4,240 | |
| | 3 | |
| | ||
| | 612 | |
| | 102 | |
| | 33 | |
| | 1,443 | |
| | 1,833 | |
| | 2,800 | |
| | 219 | |
| Current liabilities | 8,333 | |
| | 0 | |
| Total liabilities | 12,573 | |
| Total equity and liabilities | 21,024 | |
| BALANCE SHEET | ||
| FLSmidth | ||
| Interim Report Q1 2021 | ||
| 19 Financial Statements | ||
| EQUITY STATEMENT | Q1 2021 | |
| DKKm | Share capital | Curren- cy adjust- ments |
| Equity at 1 January | 1,025 | (1,131) |
| Comprehensive income for the period | ||
| | ||
| Other comprehensive income | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| Other comprehensive income total | 0 | 0 |
| Comprehensive income for the period | 0 | 0 |
| | ||
| | ||
| | ||
| | ||
| Equity at 31 March | 1,025 | (773) |
| FLSmidth | ||
| Interim Report Q1 2021 | ||
| 20 Notes | ||
| 1. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS | ||
| When preparing the financial statements, we are required to make several estimates and judge- ments. The estimates and judgements that can have a significant impact on the financial state- ments are categorised as key accounting esti- mates and judgements. Key accounting esti- mates and judgements are regularly assessed to adapt to the market conditions and changes in political and economic factors. Similarly to what was disclosed in the Annual Re- port 2020 the COVID-19 pandemic has imposed uncertainty to the interim financial statements. For further details, reference is made to The An- nual Report 2020, Key accounting estimates and judgements, pages 63-64 and to specific notes. As of 31 March 2021, we have included updated estimates to assess the recoverability of our as- set base, including intangible assets, deferred tax assets and trade receivables. The uncertain market and liquidity conditions still prevail glob- ally, which continue to be reflected in our ex- pected credit losses (ECL). We have reassessed our projects to reflect estimated implications on project financials, including cost forecasts due to the severity of restrictions. By nature, the up- dated key accounting estimates contains a de- gree of uncertainty and the effects are recog- nised in the relevant period. | ||
| 2. |
It is our policy to prepare the income statement based on an adjusted classification of the cost by function in order to show the earnings before special non-recurring items, depreciation, amortisation and impairment (EBITDA). Depreciation, amortisation and impairment are therefore separated from the individual functions and presented in separated lines. The income statement classified by function includes allocation of depreciation, amortisation and impairment.
Interim Report Q1 2021 Income statement by function
| DKKm | Q1 2021 | Q1 2020 | |
|---|---|---|---|
| Gross profit | 852 | 957 | |
| Costs related to administrative, procurement, logistic and digital costs | 751 | 811 | |
| Costs related to administration and other | 101 | 146 | |
| EBIT | |||
| Depreciation, amortisation and impairment of assets relating to specific parts of the value chain and related to specific value chains and associated assets | (271) | (274) | |
| Depreciation, amortisation and impairment relating to assets that are not subject to specific value chain allocation, and assets that are not allocated to specific value chains | (171) | (173) | |
| Costs related to revenue | (171) | (173) | |
| FLSmidth |
Interim Report Q1 2021
Notes
3. SEGMENT INFORMATION
| DKKm | Q1 2021 | Q1 2020 | |
|---|---|---|---|
| Mining | Cement | Shared costs¹⁾ | |
| Revenue | 2,412 | 1,301 | - |
| Gross profit | 648 | 306 | (19) |
| EBITDA before special non-recurring items | 442 | 135 | (290) |
| Costs related to administrative, procurement, logistic and digital costs | |||
| Depreciation, amortisation and impairment of assets relating to specific parts of the value chain and related to specific value chains and associated assets, and assets that are not allocated | |||
| Depreciation, amortisation and impairment relating to assets that are not subject to specific value chain allocation, and assets that are not allocated to specific value chains | |||
| EBITA before allocation of shared costs | 403 | 107 | (320) |
| Amortisation | (213) | 23 | 0 |
| EBITA | 213 | (23) | 0 |
| Depreciation, amortisation and impairment of assets relating to specific parts of the value chain and related to specific value chains and associated assets | |||
| Depreciation, amortisation and impairment relating to assets that are not subject to specific value chain allocation, and assets that are not allocated to specific value chains | |||
| EBIT | 152 | (51) | - |
| Other financial income, net | 25 | (3) | 16 |
| Other financial expenses | (24) | (1) | (16) |
| Finance costs | (53) | (4) | (2) |
| Gross margin | 26.9% | 23.5% | |
| EBITDA margin before special non-recurring items | 18.3% | 10.4% | |
| EBITA margin before allocation of shared costs | 16.7% | 8.2% | |
| EBITA margin | 8.8% | -1.7% | |
| EBIT margin | 6.3% | -3.9% | |
| Number of employees at 31 March | 5,163 | 3,653 | 1,373 |
Reconciliation of profit for the period
| 31/03 2021 | 31/12 2020 | 31/03 2020 | |
|---|---|---|---|
| Profit for the period | 92 | (3) | 89 |
| Adjustments for: | |||
| Depreciation and amortisation | 265 | 262 | 258 |
| Other | (1) | 0 | (1) |
| EBT | 150 | (2) | 148 |
| Income tax | (61) | (2) | (58) |
| Profit after tax | 89 | (4) | 90 |
| 1) Shared costs consist of costs that are managed on Region or Group level and subsequently allocated to the divisions. Cost include administration, procurement, logistic and digital. 2) Other companies consist of companies with no activity, real estate companies, eliminations and the parent company. 3) Discontinued activities mainly consist of bulk material handling. |
4. REVENUE
Revenue arises from sale of life cycle offerings to our customers. We sell a broad range of goods and services within the Mining and Cement Industries split into the main categories projects, products and services. Six Regions support the sales within the Mining and Cement Industries. Revenue is presented in the Regions in which delivery takes place. In the first quarter of 2021, South America represented a 5%-point lower share of Group revenue than the same period last year. Asia and Australia picked up a higher share of the Group revenue in the first quarter of 2021 compared to same period in 2020.
Backlog
The order backlog at 31 March 2021 amounts to DKK 16,251m (2020: DKK 15,591m) and represents the value of outstanding performance obligations on current contracts, combined of contracts where we will transfer control at a future point in time and the remaining performance obligations on contracts where we transfer control over time. Based on the order backlog maturity profile, the majority, 53% (Q1 2020: 56%) of the order backlog is expected to be converted into revenue in 2021, while 47% (Q1 2020: 44%) is expected to be converted to revenue in subsequent years.
Revenue split by Regions
| Q1 2021 | % | Q1 2020 | % |
|---|---|---|---|
| 22% | North America | 22% | North America |
| 22% | South America | 27% | South America |
| 17% | Europe, North Africa, Russia | 17% | Europe, North Africa, Russia |
| 10% | Sub-Saharan Africa, Middle East & South Asia | 19% | Sub-Saharan Africa, Middle East & South Asia |
| 12% | Asia | 7% | Asia |
| 17% | Australia | 8% | Australia |
Backlog DKKm
| 0 | 3,000 | 6,000 | 9,000 | 12,000 | 15,000 | 18,000 | |
|---|---|---|---|---|---|---|---|
| Q1 2020 | |||||||
| Q1 2021 |
Revenue split by industry and category
| DKKm | Q1 2021 | Q1 2020 | |||
|---|---|---|---|---|---|
| Mining | Cement | Group | Mining | Cement | |
| Capital business | 804 | 508 | 1,312 | 1,062 | 857 |
| Service business | 1,608 | 793 | 2,401 | 1,673 | 933 |
| Total revenue | 2,412 | 1,301 | 3,713 | 2,735 | 1,790 |
Revenue split by recognition principle
| DKKm | Q1 2021 | Q1 2020 | |||
|---|---|---|---|---|---|
| Mining | Cement | Group | Mining | Cement | |
| Revenue recognised at a point in time | 2,374 | 1,287 | 3,661 | 2,670 | 1,718 |
| Revenue recognised over time | 38 | 14 | 52 | 65 | 72 |
| Other | - | - | - | - | - |
| Total revenue | 2,412 | 1,301 | 3,713 | 2,735 | 1,790 |
5. PROVISIONS
Additions to provisions amounted to DKK 108m in Q1 2021, compared to DKK 72m in Q1 2020, due to continued restructuring measures and marginal changes to provision estimates for loss-making projects as well as disputes and lawsuits. Of the total used provisions of DKK 78m in Q1 2021, DKK 3m related to discontinued activities, both amounts in line with Q1 2020 levels. See note 8 for provision details related to discontinued activities. For a description of the main provision categories see note 2.7 in the 2020 Annual Report.
6. CONTRACTUAL OBLIGATIONS AND CONTINGENT LIABILITIES
FLSmidth has entered into a conditional agreement to sell all and lease back part of its headquarters in Valby, Denmark. As described in the Annual Report 2020 it has been decided to revisit the plans for the headquarter and options are being explored. More certainty of the outcome is expected during Q2 or Q3 of 2021.
Contingent liabilities at 31 March 2021 amounted to DKK 2.9bn (31 December 2020: DKK 2.6bn), which primarily include performance bonds, payment guarantees and bid bonds at DKK 2.5bn (31 December 2020: DKK 2.4bn) issued to cover project-related risks. Except from the above mentioned no other significant changes have occurred to the nature and extent of our contractual obligations and contingent assets and liabilities compared to what was disclosed in note 2.9 in the 2020 Annual Report.
7. DISPOSAL OF ENTERPRISES
On 23 December 2020, FLSmidth announced the sale of advanced fabric filter technology for dust collection systems. The transaction was effective as of 1 March 2021. The gain from the transaction was DKK 2m in Q1 2021. The transaction price was DKK 3m and the transaction costs amounted to DKK 1m.
On 29 December 2020, FLSmidth announced the sale of Möller pneumatic conveying systems business to REEL. The sale of Möller pneumatic conveying systems business was closed 1 January 2021. The disposal has no income statement effect in Q1 2021. The assets related to the disposals were included in assets classified as held for sale as of 31 December 2020. Following the two disposals being effective in the first quarter of 2021 there are no remaining assets classified as held for sale.
Provisions
| DKKm | 31/03 2021 | 31/12 2020 | 31/03 2020 |
|---|---|---|---|
| Provisions for restructuring | 26 | 26 | 26 |
| Other provisions for employee benefits, severance | 3 | 4 | 4 |
| Other provisions | 115 | 132 | 41 |
| Other | 781 | 777 | 837 |
| Provisions | 1,023 | 1,015 | 944 |
| Provisions for ongoing restructuring | 26 | 26 | 26 |
| Other Provisions for employee benefits, severance, restructuring related to acquisitions, termination payments, and other employee benefits. | 4 | 4 | 4 |
| Other Provisions | 115 | 132 | 41 |
| Other | 878 | 853 | 873 |
| Provisions | 1,023 | 1,015 | 944 |
Provisions related to continued activities
| DKKm | 31/03 2021 | 31/12 2020 | 31/03 2020 |
|---|---|---|---|
| Provisions for restructuring | 25 | 25 | 25 |
| Other provisions for employee benefits, severance, restructuring related to acquisitions, termination payments, and other employee benefits, and other employee benefits. | 3 | 4 | 4 |
| Other provisions | 115 | 132 | 41 |
| Other | 701 | 672 | 667 |
| Provisions | 844 | 833 | 737 |
| Note: Provisions for discontinued activities are presented separately in the table above. The total of these provisions is DKK 179m at 31 March 2021, DKK 182m at 31 December 2020, and DKK 207m at 31 March 2020. |
8. DISCONTINUED ACTIVITIES
Loss for the period from discontinued activities amounted to DKK -3m (Q1 2020: DKK -5m), primarily consisting of SG&A cost, refer to note 3. Cash flow from discontinued operating activities totalled DKK -9m. The cash outflow was due to a combination of use of provisions of DKK 3m and change in net working capital.Cash flow from net working capital from discontinued activities amounted to DKK -3m (Q1 2020: 10m), as net working capital related to discontinued business decreased from DKK 220m at the end of 2020 to DKK 219m as of 31 March 2021.
9. NET WORKING CAPITAL
Net working capital as at 31 March 2021 decreased due to a significant increase in prepayments from customers and a reduction in trade receivables, partly offset by a lower level of trade payables and an increase in inventories. Utilisation of supply chain financing decreased in Q1 driven by a lower level of activity and, in particular, by a lower share of Cement business relative to Mining. Utilisation of the programme is expected to increase in Q2 2021.
| Net working capital DKKm | 31/03 2021 | 31/12 2020 | 31/03 2020 |
|---|---|---|---|
| Trade receivables | 7,872 | 7,908 | 8,108 |
| Inventories | 2,748 | 2,815 | 2,877 |
| Prepayments, net | 1,402 | 1,374 | 1,356 |
| Trade payables | (4,146) | (4,348) | (4,216) |
| Other net working capital | (3,198) | (2,991) | (4,621) |
| Net working capital | 3,678 | 4,958 | 3,504 |
| Less: Provisions for warranties and similar | (1,678) | (1,752) | (2,792) |
| Net working capital excluding provisions | 2,000 | 3,206 | 712 |
Cash flow effect from change in net working capital 149 706 (197)
Discontinued activities effect on cash flow from operating activities DKKm
| Q1 2021 | 2020 | Q1 2020 | |
|---|---|---|---|
| Net working capital | 29 | 57 | 15 |
| Net change in net working capital | 29 | 57 | 15 |
| Cash flow from operating activities before financial items and tax | (9) | (48) | 3 |
| Add: Depreciation | 7 | 17 | |
| Cash flow from operating activities | (9) | (52) | 1 |
Discontinued activities share of Group provisions DKKm
| 31/03 2021 | 31/12 2020 | 31/03 2020 | |
|---|---|---|---|
| Provisions for environmental remediation | 175 | 178 | 178 |
| Other provisions | 4 | 4 | 4 |
| Provisions | 179 | 182 | 182 |
FLSmidth
Interim Report Q1 2021 25
Notes
10. FAIR VALUE MEASUREMENT
Financial instruments measured at fair value are measured on a recurring basis and categorised into the following levels of the fair value hierarchy:
- Level 1: Observable market prices for identical instruments
- Level 2: Valuation techniques primarily based on observable prices or traded prices for comparable instruments
- Level 3: Valuation techniques primarily based on unobservable prices
Securities and investments measured at fair value through profit/loss are either measured at quoted prices in an active market for the same type of instrument (level 1) or at fair value based on available data (level 3). Hedging instruments are not traded in an active market based on quoted prices. They are measured instead using a valuation technique, where all significant inputs are based on observable market data; such as exchange rates, interest rates, credit risk and volatilities (level 2).
There have been no significant transfers between the levels in the first quarter of 2021 and 2020.
Financial instruments Q1 2021 DKKm
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Derivatives measured at fair value | 0 | 12 | 38 | 50 |
| Other financial liabilities measured at fair value | 0 | 0 | 9 | 9 |
| Total | 0 | 12 | 47 | 59 |
Q1 2020 DKKm
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Derivatives measured at fair value | 0 | 7 | 38 | 45 |
| Other financial liabilities measured at fair value | 0 | 0 | 6 | 6 |
| Total | 0 | 7 | 44 | 51 |
11. EVENTS AFTER THE BALANCE SHEET DATE
We are not aware of any subsequent matters that require disclosure or adjustment to the financial statements at 31 March 2021.
12. ACCOUNTING POLICIES
The condensed interim report of the Group for the first quarter of 2021 is presented in accordance with IAS 34, Interim Financial Reporting, as approved by the EU and additional Danish disclosure requirements regarding interim reporting by listed companies. Apart from the below mentioned changes, the accounting policies are unchanged from those applied in the 2020 Annual Report. Reference is made to note 7.5, Accounting policies, note 7.6, Impact from new IFRS, note 7.7, New IFRS not yet adopted and to specific notes in the 2020 Annual Report for further details. Alternative Performance Measures (APM) are unchanged from those applied in the 2020 Annual Report, refer to note 7.4 in the 2020 Annual Report for a description of used APM.
Changes in accounting policies
As of 31 March 2021, the FLSmidth Group has implemented all new or amended accounting standards and interpretations as adopted by the EU and applicable for the 2021 financial year, including the following, which is the most relevant for FLSmidth:
- Interest Rate Benchmark Reform – Phase 2 (amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (issued 2020)
The implementation has not had and is not expected to have significant impact on the consolidated financial statements.
FLSmidth
Interim Report Q1 2021 26
Statements
The Board of Directors and Executive Management have today considered and approved the consolidated condensed interim financial statements for the period 1 January – 31 March 2021. The consolidated condensed interim financial statements are presented in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and Danish disclosure requirements for interim reports of listed companies. The consolidated condensed interim financial statements have not been audited or reviewed by the independent auditors.
In our opinion, the consolidated condensed interim financial statements give a true and fair view of the Group’s financial position at 31 March 2021 as well as of the results of its operations and cash flows for the period 1 January – 31 March 2021. In our opinion, the management review gives a true and fair view of the development and performance of the Group’s business and of its financial position, as well as a description of the principal risks and uncertainties that the Group faces. In our opinion, the interim report for the financial year 1 January - 31 March 2021 with the file name 213800G7EG4156NNPG91-2021-03-31_en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.
Valby, 5 May 2021
Executive management
Thomas Schulz
Group CEO
Roland M. Andersen
Group CFO
Board of directors
Vagn Ove Sørensen
Chairman
Tom Knutzen
Vice chairman
Gillian Dawn Winckler
Thrasyvoulos Moraitis
Richard Robinson Smith
Anne Louise Eberhard
Carsten Hansen
Leif Gundtoft
Claus Østergaard
STATEMENT BY MANAGEMENT
FLSmidth
Interim Report Q1 2021 27
The Group's business is carried on by FLSmidth & Co. A/S, a Danish company, and its subsidiaries. The annual reports or interim reports, filed with the Danish Business Authority and/or an exchange like NASDAQ 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 report or in the future on behalf of FLSmidth & Co. A/S, may contain forward looking statements.
Forward-looking statements are statements that are not historical facts and may be identified by the use of forward-looking terminology, such as "believe," "expect," "anticipate," "project," "plan," "may," "will," "could," "intend," "should," "seek," "continue," "target," "estimate," "achieve," "forecast," "outlook," "guidance," "trend," or the negative thereof, or 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’s growth strategy, investment plans, research and product development.
- Statements containing projections of or targets for revenues, profit (or loss), CAPEX, 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.’s control and could cause actual results to differ materially from those contemplated in any forward-looking statements. FLSmidth & Co. A/S cautions that a number of important factors, including those described in this report, 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’s products and/or services, introduction of competing products, reliance on information technology, development of new products and/or services, 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 divesting of domestic and foreign enterprises, unexpected growth in costs and 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 report.# FORWARD LOOKING STATEMENTS
Forward looking statement
MAIN CONCLUSIONS – continued
Interim report Q3 2017
FLSMIDTH Interim Report 1 January – 31 March 2021
FLSmidth & Co. A/S
Vigerslev Allé 77
DK-2500 Valby
Denmark
Tel.: +45 36 18 18 00
Fax: +45 36 44 11 46
corppr@smidth.com
www.smidth.com
CVR No. 58180912
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| iso4217:DKK | iso4217:DKK | xbrli:shares | FLSmidth & Co. A/S | Denmark | A/S | Denmark | Vigerslev Allé 77, 2500 Valby | ||
| FLSmidth is a leading provider of engineering, equipment and service solutions to the global mining and cement industries. | |||||||||
| FLSmidth & Co. A/S | FLSmidth & Co. A/S | N/A | Interim report (other than 6 months) | No audit assistance | ParsePort XBRL Converter | 2021-01-01 to 2021-03-31 | 2020-01-01 to 2020-03-31 | 213800G7EG4156NNPG91 | |
| FLSmidth & Co. A/S | Reporting class D | 58180912 | Vigerslev Allé | 77 | 2500 | Valby | Valby | ||
| 2021-05-05 | Thomas Schulz | Group CEO | Roland M. Andersen | Group CFO | Vagn Ove Sørensen | Chairman | Tom Knutzen | Vice chairman | |
| Gillian Dawn Winckler | Thrasyvoulos Moraitis | Richard Robinson Smith | Anne Louise Eberhard | Mette Dobel | Søren Dickow Quistgaard | Claus Østergaard | 213800G7EG4156NNPG91 | 58180912 | |
| FLSmidth & Co. A/S | Vigerslev Allé 77 | 2500 Valby |