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FLSmidth & Co. — Interim / Quarterly Report 2021
Nov 11, 2021
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Download source fileUntitled WE DISCOVER POTENTIAL FLSmidth & Co. A/S Vigerslev Allé 77 DK-2500 Valby CVR No. 58180912 INTERIM REPORT 9M 2021 1 January – 30 Spetember 2021 Company announcement no. 17 FLSmidth Interim Report 9M 2021 2 Management Review Management Review 3 6 7 10 12 14 16 Consolidated Condensed Interim Financial Statements 18 18 19 20 21 Notes 22 22 23 24 25 25 26 26 27 27 28 28 28 Statements 29 CONTENTS Towards zero emissions in mining and cement Read more on page 5 FLSmidth Interim Report 9M 2021 3 Management Review Highlights Q3 2021 Order intake increased 14% organically year- on-year, driven by both Mining and Cement. Service orders increased 26% Revenue increased 21% organically, attributa- ble to both Mining and Cement and driven by an increase in capital revenue EBITA was up by 72% and the EBITA margin in- creased from 4.6% to 6.5%, driven by both Min- ing and Cement Q3 included costs in Mining of DKK 30m re- lated to the acquisition of TK Mining The net working capital ratio increased to 10.4% in Q3, which is slightly below the level seen at the beginning of the year. Free cash flow was negative at DKK -253m Successful issue of new shares, raising pro- ceeds of DKK 1.4bn, leaving the financial gear- ing at 0.0x Mining Mining order intake increased 13% organi- cally, mainly driven by a 19% increase in ser- vice orders, which accounted for 62% of Mining order intake. Revenue increased by 20% organically. The EBITA margin increased to 9.5% from 9.0% in Q3 2020. Adjusted for acquisition costs, the EBITA margin was 10.4%. Cement Cement order intake increased 17% organi- cally, with a 44% increase in service orders. Service orders accounted for 71% of Ce- ment order intake. Revenue increased by 22% organically and EBITA was positive for the first time since Q1 2020. EBITA margin was 0.2% com- pared to -4.8% in Q3 2020, supported by higher revenue and lower costs related to reshaping activities. The EBITA margin im- proved despite a significantly lower share from service revenue compared to Q3 2020. Highlights 9M 2021 Order intake increased 5% organically, driven by Cement and increased base orders in Min- ing, whereas 9M 2020 included a higher level of large Mining orders. Service orders in- creased 12% Revenue increased 4% organically, comprising an 8% increase in Mining and a 4% decline in Cement compared to 9M 2020 EBITA margin increased to 5.6% from 4.4% in 9M 2020, positively impacted by business im- provement activities. Adjusted for acquisition costs, the EBITA margin was 6.1% in Q3 2021. Guidance 2021 FLSmidth maintains its guidance for group revenue of DKK 16.0-17.0bn and a group EBITA margin of 5-6%. The guidance in- cludes costs related to the acquisition of at around DKK 100m for the full year. Mining revenue is expected to grow in 2021 and the EBITA margin for Mining is expected to be high-single digit for the full year. Cement revenue is expected to decline for the full year. The Cement business is not expected to be EBITA positive in 2021 due to reshap- ing costs and low-capacity utilisation in the service business, particularly related to the impact of the pandemic in H1. The guidance is subject to uncertainty due to the pan- demic. Group CEO succession Effective 1 January 2022, Mikko Keto has been appointed new Group CEO (see com- pany announcement 16-2021). Third quarter saw strong momentum in order intake. In particular for ser- vice orders, as activity in the mining industry continues to gather pace with pandemic restrictions easing globally. The cement industry is like- wise emerging from the pandemic with improved service activity and growing demand for greener solutions. Revenue grew strongly as well and EBITA increased by 72% with an improved EBITA margin in both Min- ing and Cement. Our Cement reshaping activities have progressed well and EBITA in Cement was positive for the first time since Q1 2020. Following five consecutive quarters of improvement, the net working capital increased in Q3 as expected, driven primarily by a high activity level towards the end of the quarter. We successfully completed a di- rected issue of new shares, raising proceeds of DKK 1.4bn to fund the ac- quisition of TK Mining 1 , in combination with debt facilities. This was an im- portant milestone in creating one of the world’s largest, strongest and most sustainable suppliers to the mining industry. - Thomas Schulz, Group CEO 1 Closing of the transaction is expected in H2 2022 and is subject to customary approvals from relevant authorities. HIGHLIGHTS Guidance 2021 9M 2021 Guidance 2021 Highlights Highlights FLSmidth Interim Report 9M 2021 4 Management Review FINANCIAL HIGHLIGHTS Order intake DKKm Revenue DKKm EBITA & EBITA margin DKKm - % Cash flow from operating activities DKKm (192) from DKKm 594 in Q3 2020 GROUP 4,549 15% 4,660 22% 305 6.5% 72% Earnings per share DKK 1.8 from DKK 0.8 in Q3 2020 Net working capital ratio 10.4% from 10.9% end of Q3 2020 NIBD/EBITDA 0.0x from 1.4x end of Q3 2020 Order intake DKKm Revenue DKKm EBITA & EBITA margin DKKm - % Revenue split by service & capital % MINING 3,152 14% 3,180 22% 302 9.5% 29% Order intake DKKm Revenue DKKm EBITA & EBITA margin DKKm - % Revenue split by service & capital % CEMENT 1,397 17% 1,480 22% 3 0.2% 105% 13,829 14,149 3,955 4,549 9M 2020 9M 2021 Q3 2020 Q3 2021 12,205 12,446 3,834 4,660 9M 2020 9M 2021 Q3 2020 Q3 2021 536 692 177 305 9M 2020 9M 2021 Q3 2020 Q3 2021 2,766 3,152 Q3 2020 Q3 2021 2,616 3,180 Q3 2020 Q3 2021 235 302 Q3 2020 Q3 2021 55% Q3 2020: 64% 45% Q3 2020: 36% Service Capital 1,189 1,397 Q3 2020 Q3 2021 1,218 1,480 Q3 2020 Q3 2021 (57) 3 Q3 2020 Q3 2021 47% Q3 2020: 60% 53% Q3 2020: 40% Service Capital FLSmidth Interim Report 9M 2021 5 Management Review MissionZero developments Through our sustainability pro- gramme MissionZero, we de- velop and deliver solutions that enable our customers to operate with zero emissions by 2030. With both governments and our customers set- ting more ambitious sustainability targets, we are also accelerating our efforts to bring new technologies to the markets, both through our R&D organization and in partnership with oth- ers. During Q3, we successfully launched the first commercial offering for carbon capture in col- laboration with Carbon8 Systems. Also in Q3, we entered a second partnership joining forces with American, Chart Industries, Inc. to Cryogenic Carbon Capture TM (CCC) for our cement cus- tomers. MissionZero Mine concept At the recent MINExpo Conference in Las Ve- gas, FLSmidth introduced the concept of the MissionZero Mine. We aim, through solutions and technology, to help miners produce more with less resource use and a smaller footprint. The MissionZero Mine concept supports our customer engagement within sustainability, modelling the potential impact of replacing a traditional wet milling circuit, standard flotation cells and cyclone sand tailings dam with the MissionZero Mine flowsheet. Mining operation benefits from automated lab Key factors in unlocking sustainable resource use in mining include data optimisation, digitali- sation and automation. They allow miners to un- cover efficiencies throughout their operations, from rejecting non-ore carrying material early in the process to minimising waste, freshwater re- quirements and energy use. A customer developing a new mine in Western Australia opted for end-to-end automation to achieve higher levels of productivity in its labora- tory. Rapid, accurate, high-quality and reliable analysis of samples onsite eliminated the need to transport samples to Perth, more than 1500 km away. This reduced safety hazards in the labora- tory, as well as cutting the carbon footprint and enabling processes to be optimised through ac- curate material sampling. For the overall mining operations, this results in lower production costs, less waste, increased efficiency, reduced trans- portation, and a minimised environmental foot- print. New greenfield project in India includes Mis- sionZero flagship equipment An increased demand for sustainable productiv- ity and emissions control is reflected in a recent contract by one of India's top three cement pro- ducers, Shree Cement. The scope includes an OK TM Cement mill, boasting around five to ten percent less power consumption compared with other cement vertical roller mills, and a JETFLEX® Burner, which offers the lowest NOx emissions. The new line in Rajasthan will include a state-of- the-art pyro system and grinding sections both part of our MissionZero offerings. SUSTAINABILITY HIGHLIGHTS Safety (TRIR) Total Recordable Injury Rate/ million working hours Women managers % 1.8 Target: zero harm (10% y-o-y reduction through 2030) 14.1 2021 Target: 14.3% Several actions and events held in September to reinforce performance on safety. Good trend in implementing ac- tions related to near-miss and safety observations. Q3 results demonstrate our continued focus on attracting more female applicants and ensuring a safe and inclusive workplace. Water withdrawal m 3 Greenhouse gas emissions (CO 2 emissions) Tonnes 144,126 2021 Target: 187,479 24,728 2021 Target: 38,685 Water withdrawal increased during Q3 mostly related to increased operational activities including testing work and organised maintenance events. Both scope 1 and scope 2 emissions increased due to in- creased operational activities across in our main produc- tion sites. Fuel consumption increased, especially in North American sites. 1.0 1.8 2020 9M 2021 13.1% 14.1% 2020 9M 2021 197,346 144,126 2020 9M 2021 41,155 24,728 2020 9M 2021 FLSmidth Interim Report 9M 2021 6 Management Review KEY FIGURES DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 2020 INCOME STATEMENT ORDERS EARNING RATIOS CASH FLOW BALANCE SHEET DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 2020 FINANCIAL RATIOS SHARE RATIOS SUSTAINABILITY KEY FIGURES Use of alternative performance measures FLSmidth Interim Report 9M 2021 7 Management Review GROWTH Group order intake increased 14% organically year-on-year, driven by both Mining and Cement. Service orders increased by 26% as a re- sult of improved access to cus- tomer sites and our strong local presence. Group revenue in- creased 21% organically, attributa- ble to both Mining and Cement. Order intake Order intake in Q3 increased 15% to DKK 4,549m (Q3 2020: DKK 3,955m) and by 14% organically, related to both Mining and Cement. Based on im- proved site access and our strong local pres- ence, service orders increased by 26% and ac- counted for 65% of the total order intake in Q3 2021. Capital order intake decreased by 1% in Q3 2021 and included a large lithium order valued around DKK 200m (Q3 2020: No large orders). In Q4 2021, FLSmidth has received a large order for a gold project valued at approximately DKK 350m. Order backlog and maturity The order backlog at the end of Q3 2021 was 12% above the level at the end of Q3 2020, but was down 1% on the previous quarter to DKK 16,548m (Q2 2021: DKK 16,677m), based on a book-to-bill of 98% in the quarter. It is expected that 23% of the backlog will be converted to rev- enue in 2021, 57% in 2022, and 20% in 2023 and beyond. Backlog maturity Mining Cement FLSmidth Group Revenue Revenue increased 22% to DKK 4,660m in Q3 2021 (Q3 2020: DKK 3,834m), driven primarily by an increase in capital revenue. Service revenue accounted for 52% of the total revenue during the quarter (Q3 2020: 62%). Organically, revenue increased 21%, related to both Mining and Cement. The increase was a re- sult of a higher order backlog, the easing pan- demic, improved site access and our ability to deliver in a challenging environment. The impact from capacity constraints in global transportation was low in the third quarter based on partnerships with our suppliers. We have the flex- ibility to switch between suppliers, and we have focused on more localised sourcing. We are still able to get orders shipped, however, we see in- creasing delays and instability on some routes. We are mitigating this through further monitoring and planning, including the use of artificial intelli- gence to track the best routes. FLSmidth Interim Report 9M 2021 QUARTERLY FINANCIAL PERFORMANCE Order intake DKKm 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Mining Cement Growth in order intake in Q3 2021 (vs. Q3 2020) Mining Cement FLSmidth Group Total growth 14% 17% 15% Growth in revenue in Q3 2021 (vs. Q3 2020) Mining Cement FLSmidth Group Total growth 22% 22% 22% Group – continued activities (DKKm) Q3 2021 Q3 2020 Change (%) 9M 2021 9M 2020 Change (%) Order intake (gross) 4,549 3,955 15% 14,149 13,829 2% Order backlog 16,548 14,839 12% 16,548 14,839 12% Revenue 4,660 3,834 22% 12,446 12,205 2% Gross profit 1,074 884 21% 3,029 2,843 7% SG&A cost (682) (629) 8% (2,065) (2,046) 1% EBITA 305 177 72% 692 536 29% EBIT 219 91 141% 429 283 52% FLSmidth Interim Report 9M 2021 8 Management Review PROFIT Gross profit increased by 21% and EBITA increased by 72% as a result of higher revenue and operating leverage. The EBITA margin im- proved to 6.5%, driven by both Mining and Cement. EBITA in Ce- ment was positive for the first time since Q1 2020. Gross profit and margin Gross profit increased 21% to DKK 1,074m (Q3 2020: DKK 884m), due to higher revenue. Sup- ported by Cement reshaping activities, the gross margin was largely maintained at 23.0%, despite headwinds from a 10%-points higher share from capital revenue. In Q3 2021, total research and development costs (R&D) amounted to DKK 78m (Q3 2020: DKK 52m), representing 1.7% of revenue (Q3 2020: 1.4%). R&D costs (DKKm) Q3 2021 Q3 2020 R&D costs in Q3 were largely related to new and improved sustainable and digital cement and mining technologies as well as a range of new mining products and upgrades to improve productivity and safety. In addition to the re- ported R&D, products and solutions are being developed on-site in cooperation with customers in the ordinary course of business. SG&A costs Sales, general and administrative costs (SG&A) and other operating items declined 7% compared to Q2 2021 but increased 8% year-on-year to DKK 682m (Q3 2020: DKK 629m), explained by slightly higher sales costs, costs related to the acquisition of TK Mining of DKK 30m and modest costs related to Cement reshaping activities in the quarter. SG&A costs as a percentage of reve- nue declined to 14.6% (Q3 2020: 16.4%). EBITA and EBITA margin EBITA increased by 72% to DKK 305m (Q3 2020: DKK 177m) as a result of the higher revenue and operating leverage. The Group EBITA margin in- creased to 6.5% (Q3 2020: 4.6%), related to both Mining and Cement. EBITA in Cement was posi- tive for the first time since Q1 2020, driven by high revenue in the quarter, lower costs related to the reshaping of Cement as well as improve- ments from already executed reshaping activi- ties. Mining EBITA was impacted by costs related to the acquisition of TK Mining, as described above. Q3 2020 included costs related to the im- plementation of business improvement initiatives of DKK 25m for the Group. Amortisation of intangible assets was unchanged at DKK 86m (Q3 2020: DKK 86m). The effect of purchase price allocations amounted to DKK 23m (Q3 2020: DKK 24m) and other amortisation to DKK 63m (Q3 2020: DKK 62m). Earnings before interest and tax (EBIT) increased 141% to DKK 219m (Q3 2020: DKK 91m), due to the growth in revenue and operating leverage, and despite the 10%-points higher share from capital revenue. Financial items Net financial items amounted to DKK -41m (Q3 2020: DKK -1m), of which foreign exchange and fair value adjustments amounted to DKK -9m (Q3 2020: DKK 15m) and net interest amounted to DKK -32m (Q3 2020: DKK -16m). Net interest in- cluded fees to secure credit facilities for the fund- ing of TK Mining. Tax Tax for Q3 2021 totalled DKK -69m (Q3 2020: DKK -41m), corresponding to an effective tax rate of 39% (Q3 2020: 46%). Reduced tax credits on withholding taxes and an increase in the profit before tax derived from countries with a higher base corporate tax rate causes the effective tax rate to be relatively high in a historic context. Profit for the period Profit for the period increased to DKK 95m (Q3 2020: DKK 43m), equivalent to DKK 1.8 per share (Q3 2020: DKK 0.8). The increase resulted from the significantly higher EBIT, partly offset by higher net financial costs and higher tax. Return on capital employed Despite the higher EBITA in the quarter and lower average capital employed as compared to Q3 2020, ROCE decreased to 6.3% (Q3 2020: Employees The number of employees increased by 46 to 10,135 at the end of Q3 2021 (end of Q2 2021: 10,089). The increase related to service jobs in South America. Backlog DKKm Revenue & EBITA margin DKKm EBITA% EBITA DKKm 0 3,000 6,000 9,000 12,000 15,000 18,000 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Mining Cement 0% 2% 4% 6% 8% 10% 12% 14% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Revenue EBITA margin (100) 0 100 200 300 400 500 600 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Mining Cement FLSmidth Interim Report 9M 2021 9 Management Review CAPITAL The net working capital ratio in- creased from Q2 to 10.4% in Q3, driven primarily by a high activity level towards the end of the quar- ter. FLSmidth successfully com- pleted a directed issue of new shares, raising proceeds of DKK 1.4 billion to fund the acquisition of TK Mining, in combination with debt facilities. Net working capital Following five consecutive quarters of improve- ment, net working capital increased as expected to DKK 1,735m at the end of Q3 2021 (end of Q2 2021: DKK 1,305m). The increase related primar- ily to an increase in trade receivables due to high project and invoicing activity towards the end of the quarter. Also, net working capital from dis- continued activities increased by DKK 117m in Q3 (see note 8). Other liabilities decreased due to an extraordinary payment to the Danish Holiday Al- lowance Fund of DKK 68m. Utilisation of supply chain financing increased in Q3. The net working capital ratio increased to 10.4% of 12-months trail- ing revenue (Q2 2021: 8.2%) and ended the quar- ter slightly below the level at the beginning of the year. Cash flow from operating activities Despite the higher EBITDA, cash flow from oper- ating activities (CFFO) declined significantly to DKK -192m in Q3 2021 (Q3 2020: DKK 594m), mainly due to the net working capital increase of DKK 494m, as compared to a net working capital decrease of DKK 311m in Q3 2020. In addition, fi- nancial items and taxes paid increased com- pared to Q3 2020. Cash flow from investing activities Cash flow from investing activities declined to DKK -61m (Q3 2020: DKK -105m). Q3 2020 in- cluded investments in new production facilities in North America and a new service centre in East- ern Europe. Free cash flow Free cash flow (cash flow from operating and in- vesting activities) adjusted for business acquisi- tions and disposals amounted to DKK -253m in Q3 2021 (Q3 2020: DKK 489). Net interest-bearing debt As a result of the completed issue of new shares, raising proceeds of approximately DKK 1.4bn, net interest-bearing debt (NIBD) decreased to a small positive net cash position of DKK 16m (end of Q2 2021: DKK -1,159 m), and financial gearing was 0.0x (end of Q2 2021: 1.0x). Excluding proceeds from the capital increase, the financial gearing was 1.1x at the end of Q3 2021. Financial position By the end of Q3 2021, FLSmidth had DKK 6.8bn of available committed credit facilities of which DKK 6bn was undrawn. The committed credit fa- cilities have a weighted average time to maturity of 3.8 years. DKK 1.6bn of credit facilities will ma- ture in 2023 and DKK 5.0bn will mature in 2026. The remaining DKK 0.2bn matures in later years. In addition, FLSmidth has a credit facility commit- ment specifically for the purpose of funding TK Mining, in combination with the proceeds from the completed issue of new shares. Equity ratio Equity at the end of Q3 2021 increased to DKK 9,983m (end of Q2 2021: DKK 8,369 m), mainly related to the issue of new shares, but also due to the positive profit for the period. Conse- quently, the equity ratio increased to 45.6% (end of Q2 2021: 39.7%). Adjusted for the issue of new shares, the equity ratio was 39%. Acquisition of TK Mining On 29 July, FLSmidth and thyssenkrupp Indus- trial Solutions AG reached an agreement that business (TK Mining). Closing of the transaction is expected in H2 2022 and is subject to customary approvals from relevant authorities. On 6 September, it was announced that activities in India are ex- cluded from the final transaction. Consequently, the total consideration (enterprise value) for TK Mining will be reduced by EUR 45 million (ap- proximately DKK 335 million) to EUR 280 million (approximately DKK 2.1 billion). FLSmidth already has a strong presence in India and the TK Mining activities in India are not strategically important for the transaction. The exclusion of the TK Min- ing activities in India will not affect the transfer of FLSmidth as part of the overall transaction. In 2020, the TK Mining activities in India delivered revenue of ~EUR 100 million. TK Mining (excl. TK Mining ac- tivities in India) delivered revenue of ~EUR 680 million (~DKK 5.1 billion). The exclusion of the TK Mining activities in India has no impact on the ex- pected synergies and integration costs. The acquisition of TK Mining is a transformational largest and strongest suppliers to the mining in- dustry. Funding of the acquisition has been se- cured through a combination of debt facilities and proceeds from the issue of new shares which was completed on 10 September 2021. Cash flow DKKm Net interest-bearing debt DKKm Net working capital DKKm NWC% (400) (200) 0 200 400 600 800 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Cash flow from operating activities (3,000) (2,500) (2,000) (1,500) (1,000) (500) 0 500 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Net interest bearing debt (NIBD) 0% 3% 6% 9% 12% 15% 18% 0 500 1,000 1,500 2,000 2,500 3,000 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Net working capital Net working capital ratio, end FLSmidth Interim Report 9M 2021 10 Management Review GROWTH Order intake Order intake increased 5% organically, driven by Cement and a higher level of base orders in Min- ing. Including currency effects, order intake in the first nine months of 2021 increased 2% to DKK 14,149m (9M 2020: DKK 13,829m). Service order intake for the Group rose by 12% from the com- parison period driven by both Mining and Ce- ment. Mining service orders increased by 7%, whereas capital orders decreased due to a reduction in the value of large projects. Three large Mining or- ders with a combined value of DKK 600m were announced in 9M 2021 (9M 2020: three large Mining orders with a combined value of DKK 2.4bn). As a result, Mining order intake de- creased 3% organically for the first nine months. This decrease was offset by Cement which, in addition to a 24% increase in service orders, booked a series of sustainability-related orders, including two medium-sized product orders in Q1, the flash calciner order for VICAT in Q2 and strong demand for alternative fuels solutions in Q3. As a result, Cement order intake increased by 28% organically. Order backlog Order backlog increased 12% to DKK 16,548m by 30 September 2021 (30 September 2020: DKK 14,839m). The increase came from both Cement and Mining which saw 14% and 10% increases re- spectively. Revenue Organically, revenue increased by 4%, compris- ing an 8% increase in Mining and a 4% decline in Cement. Including currency effects, revenue in- creased 2% to DKK 12,446m in the first nine months of 2021. Growth in Mining revenue comprised a 4% in- crease in service revenue and a 12% increase in capital revenue. In the first half of the year, Cement was severely impacted by the pandemic and a low backlog en- tering the year. Despite strong revenue growth in the third quarter, service and capital revenue de- creased by 9% and 3% respectively in the first nine months of the year. PROFIT Gross profit and margin Gross profit in the first nine months of 2021 in- creased by 7% to DKK 3,029m. Gross margin rose by 1%-point to 24.3%, positively impacted by effects from business improvement activities. In the first nine months of 2021, research and de- velopment costs were DKK 211m (9M 2020: 195m), of which DKK 102m were capitalised (9M 2020: 83m) and the balance reported as pro- duction costs. EBITA and margin EBITA increased 29% to DKK 692m, based on the slightly higher revenue and improved gross margin. The EBITA margin was 5.6% up from 4.4% in the first nine months of 2020. The im- provement was despite the impact from costs re- lated to the acquisition of TK Mining of DKK 70m in Q2-Q3 2021. Profit for the period Profit for the period increased by 54% to DKK 196m. Continuing activities improved to DKK 214m from DKK 142m. Discontinued activities re- ported a DKK 18m loss, compared to a DKK 15m loss in the first nine months of 2020. Earnings per share Earnings per share (diluted) increased to DKK 3.9 from DKK 2.5 in the first nine months of 2020. FINANCIAL PERFORMANCE IN 9M 2021 EBITA split by segment DKKm (200) 0 200 400 600 800 9M 2020 9M 2021 Mining Cement Growth in order intake in 9M 2021 (vs. 9M 2020) Mining Cement FLSmidth Group Total growth -5% 24% 2% Growth in revenue in 9M 2021 (vs. 9M 2020) Mining Cement FLSmidth Group Total growth 7% -7% 2% FLSmidth Interim Report 9M 2021 11 Management Review CAPITAL Net working capital Following a strong improvement in the past five quarters, net working capital increased in Q3. Consequently, net working capital decreased to DKK 1,735m (end of 2020: DKK 1,752m), and the corresponding net working capital ratio was 10.4% of 12-months trailing revenue, compared to 10.7% at the end of 2020. The main developments in net working capital comprised an increase in prepayments from cus- tomers, largely offset by increased trade receiva- bles, reduced trade payables and higher invento- ries to support our growth agenda for standardised products and parts services. Cash flow from operating activities Cash flow from operating activities decreased to DKK 600m (9M 2020: DKK 1,092m), mainly due to the large cash inflow from working capital in the comparable period 9M 2020 and increased tax payments in 9M 2021. Cash flow from investing activities Cash flow used for investments decreased to DKK -176m from DKK -279m in the first nine months of 2020. Cash flow from financing activities Cash flow from financing activities amounted to DKK -272m primarily spent on reducing net inter- est-bearing debt. A dividend was paid out in the first half of 2021 amounting to DKK 101m whereas no dividend was paid in the same period last year. Free cash flow Free cash flow adjusted for business acquisitions and disposals was DKK 430m in 9M 2021 (9M 2020: DKK 862m). Balance sheet Total assets increased to DKK 21,916m by 30 September 2021 (end of 2020: DKK 20,456), pri- marily related to increased net working capital assets and foreign exchange effects. Net interest-bearing debt Net interest-bearing debt (NIBD) by 30 Septem- ber 2021 decreased to a positive net cash posi- tion of DKK 16m (end of 2020: DKK -1,808m), due to DKK 1.4bn proceeds from the issue of new shares and the positive free cashflow. The 1.6x). Equity Equity at 30 September 2021 increased to DKK 9,983m (end of 2020: DKK 8,130m). The in- crease related to proceeds from the issue of new shares, profit for the period and currency adjust- ments regarding translation of entities, less divi- dend paid. Treasury shares The holding of treasury shares amounted to 1,093,928 shares at 30 September 2021 (2020: 1,097,718 shares), representing 1.9% of the total share capital (2020: 2.1%). Treasury shares are used to hedge our share-based incentive pro- grammes. Cash flow from operating activities DKKm Cash flow from investing activities DKKm Free cash flow DKKm 0 200 400 600 800 1,000 1,200 9M 2020 9M 2021 (500) (400) (300) (200) (100) 0 9M 2020 9M 2021 0 200 400 600 800 1,000 9M 2020 9M 2021 Free cash flow Free cash flow adjusted for business acquisitons and disposals FLSmidth Interim Report 9M 2021 12 Management Review Overall, the mining industry continued to benefit from the post-pandemic recovery with high pro- duction levels as pandemic restrictions eased further in Q3. Our year-to-date order intake indi- cates that the mining market has recovered to the 2019 pre-pandemic activity level. Events in China had significant impacts on com- modities markets during the quarter. The fallout from the crisis at property developer China Ever- grande Group, along with efforts by the Chinese government to limit steel production to 2020 lev- els, saw iron ore prices fall in September though these remain at highly profitable levels for producers. Prices for most other metals, in- cluding copper and gold which are important to FLSmidth, remain high. Also, limited thermal coal supply and fear of an energy crisis saw coal prices surge. In North America, Europe and Australia, miners are increasingly replacing equipment as they catch up on maintenance that was postponed during the pandemic. A number of lithium plants are starting to come online in Australia which is an important region for battery metals. Activity in South America, Asia (ex-China), Africa and India has been significantly impacted by the pandemic but is gradually returning to more nor- malised pre-pandemic levels. Across all markets, the post-pandemic surge in demand and subsequent bottlenecks in global supply chains has caused challenges. We have been able to mitigate these through close moni- toring and thorough planning, but we are seeing increasing delays on certain routes. Miners remain well capitalised and have seen a boost to cashflow from higher global demand and prices. invest, we continue to see them taking a disci- plined approach to investment. The long-term outlook remains strong for metals required for the green energy transition with cop- per expected to move into a 279,000-tonne defi- cit by 2025, according to S&P Capital IQ. Growth in renewable energy is a key driver with the lat- calling for investments to triple by 2030 in order to put the world on a path towards net zero emis- sions by 2050. Overall, we maintain a healthy pipeline as the mining industry recovery gains further momen- tum. MINING MARKET DEVELOPMENTS Activity in the mining industry continues to gather pace with pandemic restrictions and infection rates easing globally. Commodity prices and the global recovery in industrial activity support positive market sentiment despite some volatility. The long-term outlook remains strong for metals required for the green energy transition. Mining order intake split per Region Q3 2021 % Mining order intake split by commodity Q3 2021 % 20% 38% 14% 11% 4% 13% North America South America Europe, North Africa, Russia Sub-Saharan Africa, Middle East & South Asia Asia Australia 36% 14% 9% 2% 16% 23% Copper Gold Coal Fertilizer Iron ore Other FLSmidth Interim Report 9M 2021 13 Management Review Q3 2021 Mining order intake increased 13% organically compared to Q3 2020. Including currency ef- fects, the order intake in Q3 2021 increased by 14% to DKK 3,152m (Q3 2020: DKK 2,766m), comprising a 19% increase in service orders and an 6% increase in capital orders. The increase in order intake related to continuing improvement in activity levels and positive market sentiment compared to Q3 2020, which was more severely impacted by the pandemic. Q3 2021 included a large announced lithium order valued around DKK 200m (Q3 2020: No announced orders). During the quarter, service orders and capital or- ders represented 62% and 38% of Mining order intake respectively. Revenue increased by 20% organically and by 22% including currency effects, to DKK 3,180m in Q3 2021 (Q3 2020: DKK 2,616m), driven mostly by capital revenue. Capital revenue increased by 52% driven by the higher backlog and improved site access supporting order execution as Covid- 19 restrictions ease globally. Service revenue in- creased by 4%, also supported by easing Covid- 19 restrictions. Service accounted for 55% of Min- ing revenue in Q3 2021 (Q3 2020: 64%). Gross profit, before allocation of shared cost, increased by 21% to DKK 787m (Q3 2020: DKK 653m). The corresponding gross margin de- creased to 24.7% (Q3 2020: 25.0%), due to the higher share of capital revenue. EBITA increased by 29% to DKK 302m in Q3 2021 (Q3 2020: DKK 235m) as a result of the higher revenue and operating leverage, and despite the lower share of service revenue in the quarter. The correspon- ding EBITA margin increased to 9.5% from 9.0% in Q3 2020. EBITA was impacted by costs related to the acquisition of TK Mining of DKK 30m. The EBITA margin adjusted for these costs was 10.4%. Acquisition related costs are esti- mated at around DKK 30m for Q4 2021. 9M 2021 Despite a stronger level of base orders and a 7% increase in service order intake Mining order in- take in 9M 2021 decreased by 5% to DKK 9,670m (9M 2020: DKK 10,203m). This was a re- sult of exceptionally strong capital order intake in the comparable period in Q1 2020, related to three large capital orders with a combined value of around DKK 2.4bn. Based on a book-to-bill of 115%, Mining order backlog in 9M 2021 increased 10% to DKK 10,248 (9M 2020: DKK 9,298m) Mining revenue increased by 7% to DKK 8,394m (9M 2020: DKK 7,871m) with service revenue and capital revenue increasing by 4% and 12% re- spectively. EBITA increased by 18% to DKK 746m (9M 2020: DKK 632m) and the corresponding EBITA margin increased to 8.9% from 8.0% in 9M 2020, owing to an improved gross margin and operating leverage from the increase in revenue. MINING FINANCIAL PERFORMANCE Growth in Mining in Q3 2021 (vs. Q3 2020) Order intake Revenue Total growth 14% 22% Service and capital order intake Q3 2021 % Revenue and EBITA margin DKKm EBITA % 62% 38% Service Capital 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Capital revenue Service revenue EBITA margin Mining (DKKm) Q3 2021 Q3 2020 Change (%) 9M 2021 9M 2020 Change (%) Order intake (gross) 3,152 2,766 14% 9,670 10,203 -5% Order backlog 10,248 9,298 10% 10,248 9,298 10% Revenue 3,180 2,616 22% 8,394 7,871 7% Gross profit before allocation of shared cost 787 653 21% 2,203 1,999 10% EBITA before allocation of shared cost 491 440 12% 1,319 1,258 5% EBITA 302 235 29% 746 632 18% EBIT 242 178 36% 564 456 24% FLSmidth Interim Report 9M 2021 14 Management Review The green shoots of growth emerging in the ce- ment industry are at risk from the supply shock experienced by the construction sector in those regions in which economic activity has surged ahead. This is translating into labour and materi- als shortages, delays, and cost inflation. Energy costs are surging on global shortages of gas and coal with potential energy crises ahead in Europe and China. Whilst these threaten to derail the emerging recovery for cement, they also rein- force the need for increasing use of greener so- lutions, including alternative fuels and carbon capture. In Q3, growth in construction activity continued to drive positive sentiment in North America and a growing number of opportunities tied to our Digital and Mission Zero products. In Europe, customers are investing in technology that supports their sustainability journey but also technology to increase capacity in certain Euro- pean markets. We have a healthy pipeline for up- grade projects driven by ongoing conversion to launch of stimulus packages and a doubling of Emission Trading System in 2021 are driving fac- tors. Mechanism is expected to drive this agenda to countries exporting cement to the EU. The (GCCA) recent launch of a road map to achieve net zero emissions in the sector is also expected to support decarbonisation efforts. GCCA mem- bers account for 80% of the global cement indus- try volume outside of China and include several large Chinese manufacturers. China continues to be the main driver in Asia but saw a temporary slowdown that was caused by a combination of pandemic-related shutdowns and supply-chain disruptions. Elsewhere in the re- gion, some countries remain challenged while other posted improvements by the end of Q3. Cement despatches in South Asia bounced back in Q3 after the severe pandemic situation in Q2. Higher levels of plant utilisation are reflecting positively in demand for spare parts but travel re- strictions in the region are still hampering our business, especially for service jobs. Overall, demand for new capacity remains sub- dued, whilst we continue to see increased de- mand for solutions that decarbonise and de-bot- tleneck cement plants. CEMENT MARKET DEVELOPMENTS The cement industry is emerging from the pandemic with improved service activity but significant regional differences and inflation headwinds triggered by construction supply chain challenges and higher energy costs. Significant overcapacity remains and a recovery is not expected until the mid-term. Demand is growing for green solutions. Cement order intake split per Region Q3 2021 % Cement revenue split by categories Q3 2021 % 29% 5% 26% 25% 14% 1% North America South America Europe, North Africa, Russia Sub-Saharan Africa, Middle East & South Asia Asia Australia 29% 24% 47% Projects Products Service FLSmidth Interim Report 9M 2021 15 Management Review Q3 2021 Cement order intake in Q3 2021 increased 17% to DKK 1,397m (Q3 2020: DKK 1,189m), comprising a 44% increase in service orders and a 18% de- crease in capital orders. Currency had no signifi- cant impact in the quarter. Service order intake continued strongly on the back off a strong Q2 2021, underpinned by the easing pandemic, in- creased site access and some pent-up demand, including a sizable upgrade order. No large capi- tal orders were booked in Q3. Service orders and capital orders represented 71% and 29% of cement order intake, respectively. Revenue increased by 22% to DKK 1,480m in Q3 2021 (Q3 2020: DKK 1,218m), and currency had no significant impact in the quarter. Cement ser- vice revenue decreased by 5% while capital rev- enue improved strongly by 61%, driven by im- proved site access supporting order execution as Covid-19 restrictions ease globally. Service ac- counted for 47% of Cement revenue in Q3 2021 (Q3 2020: 60%). Gross profit, before allocation of shared cost, in- creased 32% to DKK 313m (Q3 2020: DKK 238m), and gross margin increased to 21.1% (Q3 2020: 19.5%), attributable to implemented re- shaping activities. EBITA in Cement was positive for the first time since Q1 2020, driven by high revenue in the quarter, a lower level of Cement reshaping costs as well as improvements from al- ready executed reshaping activities. EBITA amounted to DKK 3m (Q3 2020: DKK -57m), and the corresponding EBITA margin was 0.2% (Q3 2020: -4.8%). 9M 2021 Cement order intake in 9M 2021 increased by 24% to DKK 4,479m (9M 2020: DKK 3,626m), driven by both service and capital order growth. This was a strong development considering the challenging market environment and was not least due to a series of MissionZero aligned or- ders, including two medium-sized product orders in Q1, the clay flash calciner order for VICAT in Q2 and strong demand for alternative fuels solu- tions in Q3 - all supporting our customers to cut CO 2 emissions front their cement production. Cement revenue decreased by 7% to DKK 4,052m in 9M 2021 (9M 2020: DKK 4,334m). Ser- vice and capital revenue declined by 9% and 3% respectively. Despite a strong quarter perfor- mance in Q3 2021, the 9M 2021 revenue was dragged down by a low backlog at the start of the year and site restrictions which impacted per- formance in H1. EBITA improved but remained negative at DKK -54m (9M 2020: DKK -90m), due to the revenue decline and costs related to Cement reshaping activities. The corresponding EBITA margin was -1.3% (9M 2020: -2.1%). CEMENT FINANCIAL PERFORMANCE Growth in Cement in Q3 2021 (vs. Q3 2020) Order intake Revenue Total growth 17% 22% Service and capital order intake Q3 2021 % Revenue and EBITA margin DKKm EBITA % 71% 29% Service Capital -7% -5% -3% -1% 1% 3% 5% 7% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Service revenue Capital revenue EBITA margin Cement (DKKm) Q3 2021 Q3 2020 Change (%) 9M 2021 9M 2020 Change (%) Order intake (gross) 1,397 1,189 17% 4,479 3,626 24% Order backlog 6,300 5,541 14% 6,300 5,541 14% Revenue 1,480 1,218 22% 4,052 4,334 -7% Gross profit before allocation of shared cost 313 238 32% 898 908 -1% EBITA before allocation of shared cost 121 83 46% 314 371 -15% EBITA 3 (57) (54) (90) EBIT (23) (86) (135) (167) FLSmidth Interim Report 9M 2021 16 Management Review QUARTERLY KEY FIGURES DKKm 2019 2020 2021 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 INCOME STATEMENT Gross profit 1,126 1,327 1,047 912 884 1,022 935 1,020 1,074 EBITDA before special non-recurring items 459 580 319 223 255 337 287 285 392 EBITA 377 487 228 131 177 235 190 197 305 EBIT 294 393 146 46 91 145 101 109 219 EBT 284 323 150 (7) 89 149 92 82 176 Profit/loss on continuing activities for the period 190 229 106 (12) 48 84 57 50 107 Profit/loss for the period 190 227 101 (17) 43 78 54 47 95 Gross margin 23.8% 22.0% 23.1% 23.7% 23.1% 24.1% 25.2% 25.0% 23.0% EBITDA margin before special non-recurring items 9.7% 9.6% 7.0% 5.8% 6.7% 8.0% 7.7% 7.0% 8.4% EBITA margin 8.0% 8.1% 5.0% 3.4% 4.6% 5.5% 5.1% 4.8% 6.5% EBIT margin 6.2% 6.5% 3.2% 1.2% 2.4% 3.4% 2.7% 2.7% 4.7% FLSmidth Interim Report 9M 2021 17 Management Review DKKm 2019 2020 2021 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SEGMENT REPORTING Mining Gross margin before allocation of shared costs 25.2% 23.4% 24.9% 26.4% 25.0% 25.1% 26.9% 27.4% 24.7% EBITA margin before allocation of shared costs 16.3% 14.9% 15.1% 16.0% 16.8% 16.4% 16.7% 15.2% 15.4% EBITA margin 9.2% 9.1% 7.3% 7.8% 9.0% 9.3% 8.8% 8.2% 9.5% EBIT margin 6.9% 7.2% 5.2% 5.4% 6.8% 7.2% 6.3% 6.1% 7.6% Cement Gross margin before allocation of shared costs 22.8% 21.9% 21.8% 21.0% 19.5% 23.3% 23.5% 22.0% 21.1% EBITA margin before allocation of shared costs 13.8% 13.3% 11.0% 6.9% 6.7% 9.7% 8.2% 6.8% 8.2% EBITA margin 5.8% 6.6% 1.8% -4.9% -4.8% -1.9% -1.7% -2.7% 0.2% EBIT margin 4.9% 5.5% 0.4% -6.7% -7.1% -4.1% -3.9% -4.8% -1.6% FLSmidth Interim Report 9M 2021 18 Financial Statements Notes DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 3, 4 Revenue 4,660 3,834 12,446 12,205 Production costs (3,586) (2,950) (9,417) (9,362) Gross profit 1,074 884 3,029 2,843 Sales costs (330) (320) (982) (1,050) Administrative costs (352) (317) (1,094) (1,018) Other operating items 0 8 11 22 EBITDA before special non-recurring items 392 255 964 797 Special non-recurring items (14) 0 (33) (13) Depreciation and impairment of property, plant and equipment and lease assets (73) (78) (239) (248) EBITA 305 177 692 536 Amortisation and impairment of intangible assets (86) (86) (263) (253) EBIT 219 91 429 283 Income from associates (2) (1) (1) 2 Financial income 94 202 624 747 Financial costs (135) (203) (702) (800) EBT 176 89 350 232 Tax for the period (69) (41) (136) (90) Profit for the period, continuing activities 107 48 214 142 3, 8 Loss for the period, discontinued activities (12) (5) (18) (15) Profit for the period 95 43 196 127 Attributable to: Shareholders in FLSmidth & Co. A/S 93 40 196 124 Minority interests 2 3 0 3 95 43 196 127 Earnings per share (EPS): Continuing and discontinued activities per share 1.8 0.8 3.9 2.5 Continuing and discontinued activities per share, diluted 1.8 0.8 3.9 2.5 Continuing activities per share 2.0 0.9 4.2 2.8 Continuing activities per share, diluted 2.0 0.9 4.2 2.8 Notes DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 Profit for the period 95 43 196 127 Items that will not be reclassified to profit or loss: Actuarial gains/(losses) on defined benefit plans 59 (22) 41 (43) Items that are or may be reclassified subsequently to profit or loss: Currency adjustments regarding translation of entities 49 (302) 317 (689) Cash flow hedging: - Value adjustments for the period (18) 24 (30) (8) - Value adjustments transferred to work in progress (9) 3 (23) 12 Tax of other comprehensive income 0 6 4 12 Other comprehensive income for the period after tax 81 (291) 309 (716) Comprehensive income for the period 176 (248) 505 (589) Attributable to: Shareholders in FLSmidth & Co. A/S 173 (251) 505 (591) Minority interests 3 3 0 2 176 (248) 505 (589) CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME Financial performance FLSmidth Interim Report 9M 2021 19 Financial Statements CASH FLOW STATEMENT Notes DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 EBITDA before special non-recurring items 392 255 964 797 3 EBITDA, discontinued activities (12) (5) (18) (11) Adjustment for gain on sale of property, plant and equipment and other non-cash items (7) 12 (22) 34 Adjusted EBITDA 373 262 924 820 Change in provisions, pension and employee benefits 59 72 87 (3) 9 Change in net working capital (494) 311 (25) 545 Cash flow from operating activities before financial items and tax (62) 645 986 1,362 Financial items received and paid (37) (3) (66) (50) Taxes paid (93) (48) (320) (220) Cash flow from operating activities (192) 594 600 1,092 7 Acquisition of enterprises and activities 0 0 (8) (49) Acquisition of intangible assets (41) (43) (120) (106) Acquisition of property, plant and equipment (28) (62) (56) (128) Acquisition of financial assets (1) (2) (5) (8) 7 Disposal of enterprises and activities 0 0 2 0 Disposal of property, plant and equipment 9 0 11 3 Disposal of financial assets 0 2 0 2 Dividend from associates 0 0 0 7 Cash flow from investing activities (61) (105) (176) (279) Dividend 0 0 (101) 0 11 Issue of shares, net of costs 1,434 0 1,434 0 Capital injection, minority interests 0 0 3 0 Exercise of share options 0 0 1 0 Repayment of lease liabilities (29) (29) (93) (86) Change in net interest bearing debt (1,339) (223) (1,516) (724) Cash flow from financing activities 66 (252) (272) (810) Change in cash and cash equivalents (187) 237 152 3 Cash and cash equivalents at beginning of period 1,347 703 976 1,001 Foreign exchange adjustment, cash and cash equivalents 10 (38) 42 (102) Cash and cash equivalents at 30 September 1,170 902 1,170 902 The cash flow statement cannot be inferred from the published financial information only Free cash flow DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 Free cash flow (253) 489 424 813 Free cash flow, adjusted for acquisitions and disposals of enterprises and activities (253) 489 430 862 Cash and cash equivalents at beginning of period DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 Cash and cash equivalents 1,347 703 946 1,001 Cash and cash equivalents included in assets held for sale 0 0 30 0 Cash and cash equivalents at beginning of period 1,347 703 976 1,001 FLSmidth Interim Report 9M 2021 20 Financial Statements Notes DKKm 30/09 2021 31/12 2020 30/09 2020 ASSETS Goodwill 4,310 4,194 4,211 Patents and rights 808 875 882 Customer relations 417 466 498 Other intangible assets 129 172 70 Completed development projects 178 234 243 Intangible assets under development 392 299 355 Intangible assets 6,234 6,240 6,259 Land and buildings 1,513 1,414 1,449 Plant and machinery 337 369 383 Operating equipment, fixtures and fittings 71 89 80 Tangible assets in course of construction 55 137 143 Property, plant and equipment 1,976 2,009 2,055 Lease assets 305 312 320 Deferred tax assets 1,249 1,248 1,113 Investments in associates 157 159 156 10 Other securities and investments 47 43 49 Other non-current assets 1,453 1,450 1,318 Non-current assets 9,968 10,011 9,952 Inventories 2,552 2,368 2,527 Trade receivables 3,814 3,453 3,383 Work in progress 2,449 2,175 2,300 Prepayments 593 333 365 Income tax receivables 537 178 355 Other receivables 833 868 808 Cash and cash equivalents 1,170 946 902 Current assets 11,948 10,321 10,640 Assets classified as held for sale 0 124 0 Total assets 21,916 20,456 20,592 Notes DKKm 30/09 2021 31/12 2020 30/09 2020 EQUITY AND LIABILITIES 11 Share capital 1,153 1,025 1,025 Foreign exchange adjustments (814) (1,131) (988) Cash flow hedging (57) (4) (24) 11 Retained earnings 9,704 8,246 8,208 Shareholders in FLSmidth & Co. A/S 9,986 8,136 8,221 Minority interests (3) (6) 16 Equity 9,983 8,130 8,237 Deferred tax liabilities 223 200 233 Pension obligations 344 375 396 5 Provisions 424 426 453 Lease liabilities 206 209 172 Bank loans and mortgage debt 821 2,250 2,495 Prepayments from customers 303 240 197 Income tax liabilities 134 139 139 Other liabilities 52 125 126 Non-current liabilities 2,507 3,964 4,211 Pension obligations 3 3 3 5 Provisions 693 589 520 Lease liabilities 109 113 159 Bank loans and mortgage debt 30 183 22 Prepayments from customers 1,739 1,026 1,038 Work in progress 2,012 1,834 1,891 Trade payables 3,094 3,055 3,095 Income tax liabilities 311 162 240 Other liabilities 1,435 1,306 1,176 Current liabilities 9,426 8,271 8,144 Liabilities associated with assets classified as held for sale 0 91 0 Total liabilities 11,933 12,326 12,355 Total equity and liabilities 21,916 20,456 20,592 BALANCE SHEET FLSmidth Interim Report 9M 2021 21 Financial Statements EQUITY STATEMENT 9M 2021 9M 2020 DKKm Share capital Currency adjust- ments Cash flow hedging Retained earnings Share- holders in FLSmidth & Co A/S Minority interests Total Share capital Currency adjust- ments Cash flow hedging Retained earnings Share- holders in FLSmidth & Co A/S Minority interests Total Equity at 1 January 1,025 (1,131) (4) 8,246 8,136 (6) 8,130 1,025 (300) (28) 8,082 8,779 14 8,793 Comprehensive income for the period Profit/loss for the period 196 196 0 196 124 124 3 127 Other comprehensive income Actuarial gains/(losses) on defined benefit plans 41 41 41 (43) (43) (43) Currency adjustments regarding translation of entities 317 317 0 317 (688) (688) (1) (689) Cash flow hedging: - Value adjustments for the period (30) (30) (30) (8) (8) (8) - Value adjustments transferred to work in progress (23) (23) (23) 12 12 12 Tax on other comprehensive income 4 4 4 12 12 12 Other comprehensive income total 0 317 (53) 45 309 0 309 0 (688) 4 (31) (715) (1) (716) Comprehensive income for the period 0 317 (53) 241 505 0 505 0 (688) 4 93 (591) 2 (589) Transactions with owners: Dividend paid (101) (101) (101) 0 0 Issue of shares, net of costs 128 1,306 1,434 1,434 Share-based payment 11 11 11 33 33 33 Exercise of share options 1 1 1 0 0 Capital injection, minority interests 0 3 3 0 0 Equity at 30 September 1,153 (814) (57) 9,704 9,986 (3) 9,983 1,025 (988) (24) 8,208 8,221 16 8,237 FLSmidth Interim Report 9M 2021 22 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 market conditions and changes in politi- cal and economic factors. In general, key ac- counting judgements are made in relation to the accounting of revenue when determining the performance obligations and the recognition method, while key accounting estimates relate to the estimation of warranty provisions, valuation of inventories, trade receivables, work in pro- gress and deferred tax. For further details, refer- ence is made to The Annual Report 2020, Key accounting estimates and judgements, pages 63- 64 and to specific notes. During the third quarter of 2021, the impact from the COVID-19 pandemic has eased and the mar- ket conditions have gradually improved, how- ever, with some short-term uncertainty emerging from bottlenecks in global supply chains. As of 30 September 2021, no significant unusual uncertainties remain in relation to the updated estimates to assess the recoverability of our as- set base, including inventories, work in progress, trade receivables, intangible assets and deferred tax assets. Considering the uncertainty related to the supply chain, we have reassessed our pro- jects to reflect estimated implications on project financials, including cost forecasts due to the risk of transportation delays and resulting cost in- creases. By nature, the updated key accounting estimates contain uncertainties, and it is possible that the outcomes in the next financial period can differ from mates are based. 2. INCOME STATEMENT BY FUNCTION 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, amorti- sation and impairment (EBITDA). Depreciation, amortisation and impairment are therefore sepa- rated from the individual functions and presented in separated lines. The income statement classified by function in- cludes allocation of depreciation, amortisation and impairment. Interim Report 9M 2021 Income Statement by function DKKm Q3 2021 Q3 2020 9M 2021 9M 2020 Gross profit 995 799 2,778 2,590 EBIT 219 91 429 283 (159) (164) (502) (501) (159) (164) (502) (501) FLSmidth Interim Report 9M 2021 23 Notes 3. SEGMENT INFORMATION 9M 2021 9M 2020 FLSmidth Group FLSmidth Group DKKm Mining Cement Shared costs¹⁾ Other com- panies ²⁾ Continuing activities Discon- tinued activities³⁾ Mining Cement Shared costs¹⁾ Other com- panies ²⁾ Continuing activities Discon- tinued activities³⁾ Revenue 8,394 4,052 - 0 12,446 0 7,871 4,334 - 0 12,205 0 Gross profit 2,203 898 (72) 0 3,029 0 1,999 908 (64) 0 2,843 0 EBITDA before special non-recurring items 1,420 395 (853) 2 964 (18) 1,365 437 (1,002) (3) 797 (11) EBITA before allocation of shared costs 1,319 314 (943) 2 692 (18) 1,258 371 (1,090) (3) 536 (11) EBITA 746 (54) 0 0 692 (18) 632 (90) 0 (6) 536 (11) EBIT 564 (135) - 0 429 (18) 456 (167) - (6) 283 (11) Gross margin 26.2% 22.2% 24.3% 25.4% 20.9% 23.3% EBITDA margin before special non-recurring items 16.9% 9.7% 7.7% 17.3% 10.1% 6.5% EBITA margin before allocation of shared costs 15.7% 7.7% - 16.0% 8.6% - EBITA margin 8.9% -1.3% 5.6% 8.0% -2.1% 4.4% EBIT margin 6.7% -3.3% 3.4% 5.8% -3.9% 2.3% Number of employees at 30 September 5,352 3,418 1,365 10,135 0 5,209 4,366 1,371 10,946 0 Reconciliation of profit for the period EBT 350 (18) 232 (13) 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 non-mining bulk material handling. FLSmidth Interim Report 9M 2021 24 Notes 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 In- dustries 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 nine months of 2021, South America repre- sented a 3%-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 nine months of 2021 compared to same period in 2020. Backlog The order backlog at 30 September 2021 amounts to DKK 16,548m (9M 2020: DKK 14,839m) and represents the value of outstand- ing performance obligations on current contracts. The value of outstanding performance obliga- tions on current contracts is combination of value from contracts where we will transfer control at a future point in time and the value of the remain- ing performance obligations on contracts where we transfer control over time. Based on the order backlog maturity profile 23% (9M 2020: 21%) of the order backlog is expected to be converted into revenue in 2021, while 77% (9M 2020: 79%) is expected to be converted to revenue in subsequent years. Revenue split by Regions 9M 2021 % Revenue split by Regions 9M 2020 % Backlog DKKm 22% 22% 17% 17% 11% 11% North America South America Europe, North Africa, Russia Sub-Saharan Africa, Middle East & South Asia Asia Australia 21% 25% 19% 18% 8% 9% North America South America Europe, North Africa, Russia Sub-Saharan Africa, Middle East & South Asia Asia Australia 21% 23% 54% 57% 25% 20% 0 3,000 6,000 9,000 12,000 15,000 18,000 9M 2020 9M 2021 Within current year Within next year Subsequent years Revenue split by industry and category 9M 2021 9M 2020 DKKm Mining Cement Group Mining Cement Group Capital business 3,271 1,877 5,148 2,929 1,944 4,873 Service business 5,123 2,175 7,298 4,942 2,390 7,332 Total revenue 8,394 4,052 12,446 7,871 4,334 12,205 Revenue split by recognition principle 9M 2021 9M 2020 DKKm Mining Cement Group Mining Cement Group Total revenue 8,394 4,052 12,446 7,871 4,334 12,205 FLSmidth Interim Report 9M 2021 25 Notes 5. PROVISIONS Additions to provisions amounted to DKK 412m in 9M 2021, compared to DKK 436m in 9M 2020. Additions to continued restructuring measures with sites closed in US, Germany and Egypt has increased, whereas changes to provision esti- mates for warranties, loss-making projects as well as disputes and lawsuits have resulted in less additions compared to 9M 2020. Of the total used provisions of DKK 242m in 9M 2021, restructuring provision used had a higher share in 9M 2021 compared to 9M 2020. DKK 17m related to discontinued activities represents a minor increase compared to 9M 2020. See note 8 for provision details related to discontin- ued activities. For a description of the main provision catego- ries see note 2.7 in the 2020 Annual Report. 6. CONTRACTUAL OBLIGATIONS AND CONTINGENT LIABILITIES Contingent liabilities at 30 September 2021 amounted to DKK 3.3bn (31 December 2020: DKK 2.7bn). Contingent liabilities primarily relate to performance and payment guarantees issued to cover project-related risks, such as perfor- mance, payment, quality, and delay. The volume of such guarantees amounted to DKK 2.5bn (31 December 2020: DKK 2.4bn). In the event a guarantee is expected to materialise, a provision is recognized to cover the risk. The remaining contingent liabilities relate to our involvement in legal disputes, which are already pending with courts or other authorities and other disputes which may or may not lead to formal legal pro- ceedings being initiated against us. On 22 July 2021, a customer informed that it in- tends to initiate arbitration against FLSmidth and certain partners for an amount of EUR 28 million, for alleged contractual breaches. The case was our 2020 annual general meeting. FLSmidth will reject a potential claim. Except from the above mentioned no other sig- nificant changes have occurred to the nature and extent of our contractual obligations and contin- gent liabilities compared to what was disclosed in note 2.9 in the 2020 Annual Report. FLSmidth has entered into a conditional agree- ment to sell all and lease back part of its head- quarters in Valby, Denmark. As described in the Annual Report 2020 it has been decided to re- visit the plans for the headquarter and options are being explored. More certainty of the out- come is expected in the first half of 2022. Provisions DKKm 30/09 2021 31/12 2020 30/09 2020 Provisions 1,117 1,015 973 1,117 1,015 973 1,117 1,015 973 Provisions related to continued activities DKKm 30/09 2021 31/12 2020 30/09 2020 Provisions 952 833 772 FLSmidth Interim Report 9M 2021 26 Notes 7. DISPOSAL AND ACQUISITION OF ENTERPRISES On 23 December 2020, FLSmidth announced the sale of advanced fabric filter technology fective as of 1 March 2021. The gain from the transaction was DKK 2m. 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 Janu- ary 2021. The disposal has no material income statement effect in 9M 2021. The assets related to the disposals were in- cluded 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. On 1 June 2019, FLSmidth acquired the IMP Au- tomation Group that was integrated into the Min- ing segment. In relation to the acquisition FLS- midth paid DKK 8m in 9M 2021 related to a deferred payment from the acquisition. 8. DISCONTINUED ACTIVITIES Discontinued activities include the remaining re- sponsibilities to finalise legacy projects, handling of claims, etc. retained on the sale of the non- mining bulk material handling business in 2019. Progress on projects has been delayed, amongst others, due to the COVID-19 pandemic. For fur- ther information on discontinued activities, please refer to note 2.11 of Annual report 2020. In addition to provisions of DKK 165m shown in the table below, discontinued activities include DKK 339m (31 December 2020: DKK 220m) of . The increase is due to a cash with- drawal of DKK 130m on a performance guaran- tee. We have rejected the claim and recognised the cash withdrawal as a receivable as of 30 September 2021. Loss for the period from discontinued activities amounted to DKK -18m (9M 2020: DKK -15m), pri- marily consisting of SG&A cost, refer to note 3. Cash flow from discontinued operating activities totalled DKK -160m (9M 2020: DKK -20m). The cash outflow was due to a combination of the loss from the period, used provisions of DKK -17m (9M 2020: DKK -10m) and cash flow from net working capital of DKK -125m (9M 2020: DKK 3m). Discontinued activities effect on cash flow from operating activities DKKm 9M 2021 2020 9M 2020 Cash flow from operating activities before financial items and tax (160) (48) (18) Cash flow from operating activities (160) (52) (20) Discontinued activities share of Group provisions disclosed in note 5 DKKm 30/09 2021 31/12 2020 30/09 2020 Provisions 165 182 201 FLSmidth Interim Report 9M 2021 27 Notes 9. NET WORKING CAPITAL Net working capital as at 30 September 2021 is largely unchanged compared to 31 December 2020. A higher level of trade receivables as well as prepayments and inventories were offset by a significant change in prepayments from custom- ers. Utilisation of supply chain financing increased in the first nine months of 2021. 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 hierar- chy: Level 1: Observable market prices for identical instruments Level 2: Valuation techniques primarily based on observable prices or traded prices for com- parable 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 meas- ured 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 be- tween the levels in the first nine months of 2021 or during 2020. Net working capital DKKm 30/09 2021 31/12 2020 30/09 2020 Net working capital 1,735 1,752 1,981 Cash flow effect from change in net working capital (25) 706 545 Financial instruments 30/09 2021 DKKm Level 1 Level 2 Level 3 Total 7 (9) 40 38 31/12 2020 DKKm Level 1 Level 2 Level 3 Total 9 30 34 73 FLSmidth Interim Report 9M 2021 28 Notes 11. SHARE CAPITAL On 10 September 2021, an issue of 6,400,000 new shares of DKK 20 each at a price of DKK 228 per share was completed. Hereafter, share capital is DKK 1,153m (31 December 2020: DKK 1,025m) and the total number of authorised and issued shares is 57,650,000 (2020: 51,250,000). Each share entitles the holder to 20 votes and no shares have special rights attached to it. The is- ceeds received net of transaction costs of DKK 25m. 12. EVENTS AFTER THE BALANCE SHEET DATE We are not aware of any subsequent matters that nancial position at 30 September 2021. 13. ACCOUNTING POLICIES The condensed interim report of the Group for the first nine months of 2021 is presented in ac- cordance with IAS 34, Interim Financial Report- ing, as approved by the EU and additional Danish disclosure requirements regarding interim report- ing 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 An- nual Report for further details. Alternative Performance Measures (APM) are un- changed from those applied in the 2020 Annual Report, refer to note 7.4 in the 2020 Annual Re- port for a description of used APM. Changes in accounting policies As of 1 st January 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, in- cluding 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 ex- pected to have significant impact on the consoli- dated financial statements. FLSmidth Interim Report 9M 2021 29 Statements The Board of Directors and Executive Manage- ment have today considered and approved the consolidated condensed interim financial state- ments for the period 1 January 30 September 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 consoli- dated condensed interim financial statements have not been audited or reviewed by the dependent auditors. In our opinion, the consolidated condensed in- terim financial statements give a true and fair 0 Sep- tember 2021 as well as of the results of its opera- tions and cash flows for the period 1 January 30 September 2021. In our opinion, the management review gives a tivity and financial matters, results of operations, cash flows and financial position as well as a de- scription of the principal risks and uncertainties that the Group faces. Valby, 11 November 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 9M 2021 30 Statements the form of annual reports or interim reports, filed with the Danish Business Authority and/or an- NASDAQ Copenhagen, as well as any presenta- tions based on such financial reports, and any other written information released, or oral state- ments made, to the public based on this report or in the future on behalf of FLSmidth & Co. A/S, may contain forward looking statements. other words and terms of similar meaning in con- nection 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 fu- ture operations, including those related to FLS- search 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 perfor- mance, future actions and outcome of contin- gencies such as legal proceedings and state- ments 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 & , and which could materially af- fect such forward-looking statements. FLSmidth & Co. A/S cautions that a number of im- portant factors, including those described in this report, could cause actual results to differ materi- ally 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 the impact from the COVID-19 pandemic, 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 and/or services, introduction of competing prod- ucts, reliance on information technology, current and new products, exposure to product liability and legal proceedings and investigations, changes in legislation or regulation and interpre- tation thereof, intellectual property protection, perceived or actual failure to adhere to ethical marketing practices, investments in and divesti- tures of domestic and foreign enterprises, unex- pected growth in costs and expenses, failure to recruit and retain the right employees and failure to maintain a culture of compliance. Unless re- quired 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 5 Interim report Q3 2017 FLSMIDTH 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 Interim Report 1 January – 30 September 2021 213800G7EG4156NNPG912021-07-012021-09-30213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember1213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember2213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember1213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember2213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember3213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember4213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember5213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember6213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember7213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember8213800G7EG4156NNPG912021-07-012021-09-30cmn:ConsolidatedMember9213800G7EG4156NNPG912020-07-012020-09-30213800G7EG4156NNPG912021-01-012021-09-30213800G7EG4156NNPG912020-01-012020-09-30213800G7EG4156NNPG912021-06-30213800G7EG4156NNPG912021-09-30213800G7EG4156NNPG912020-06-30213800G7EG4156NNPG912020-09-30213800G7EG4156NNPG912020-12-31213800G7EG4156NNPG912019-12-31213800G7EG4156NNPG912020-12-31ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912021-09-30ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912021-09-30ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912020-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912021-09-30ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912020-12-31ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912021-09-30ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912021-09-30ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912020-12-31ifrs-full:NoncontrollingInterestsMember213800G7EG4156NNPG912021-01-012021-09-30ifrs-full:NoncontrollingInterestsMember213800G7EG4156NNPG912021-09-30ifrs-full:NoncontrollingInterestsMember213800G7EG4156NNPG912019-12-31ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912020-09-30ifrs-full:IssuedCapitalMember213800G7EG4156NNPG912019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912020-09-30ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800G7EG4156NNPG912019-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912020-09-30ifrs-full:ReserveOfCashFlowHedgesMember213800G7EG4156NNPG912019-12-31ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912020-09-30ifrs-full:RetainedEarningsMember213800G7EG4156NNPG912019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912020-09-30ifrs-full:EquityAttributableToOwnersOfParentMember213800G7EG4156NNPG912019-12-31ifrs-full:NoncontrollingInterestsMember213800G7EG4156NNPG912020-01-012020-09-30ifrs-full:NoncontrollingInterestsMember213800G7EG4156NNPG912020-09-30ifrs-full:NoncontrollingInterestsMemberiso4217:DKKiso4217:DKKxbrli:sharesInterim report (other than 6 months)No audit assistanceParsePort XBRL Converter2021-07-012021-09-302020-07-012020-09-30213800G7EG4156NNPG91Reporting class D213800G7EG4156NNPG9158180912FLSmidth & Co. A/SVigerslev Allé 772500 Valby