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FLS Industries A/S Interim report Q2 2004 2004 Interim Report 2 nd Quarter 2004.

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Presentation on theme: "FLS Industries A/S Interim report Q2 2004 2004 Interim Report 2 nd Quarter 2004."— Presentation transcript:

1 FLS Industries A/S Interim report Q2 2004 2004 Interim Report 2 nd Quarter 2004

2 FLS Industries A/S Interim report Q2 2004 Agenda 1.Main Conclusions 2nd Quarter Interim Report 2.Market Developments 3.Business Unit Highlights 4.Financial Highlights 5.Updated Guidance for 2004 6.Strategy Update Q2 2004

3 FLS Industries A/S Interim report Q2 2004 Main conclusions – Interim Report Q2 04 Satisfactory order intake and turnover Improved earnings compared to last year Varied performance in group companies - best results in Aalborg Portland, Unicon and Pfister - negative results in F.L.Smidth Airtech and FLS Aerospace EBITA DKK 144m (H1 2003; DKK -304m) NIBD DKK 3.1bn (Q1 2004; DKK 3.1bn) Sale of FLS Aerospace finalised on 28 June Agreement to sell Aalborg Portland and Unicon on 12 August EBITA and EBIT guidance unchanged EBT and turnover guidance updated

4 FLS Industries A/S Interim report Q2 2004 Market Developments Cement nPositive trends in demand for new kiln capacity continue nTemporary slowdown in Chinese market nIncreased level of activity in Vietnam, India, Pakistan, Middle East and USA Minerals nPositive trend in demand for new capacity continues, although at a slower pace than anticipated nHigh energy and steel prices as well as possible royalty on mined ore has temporarily postponed investment decisions nGeographically, India remains a very active market

5 FLS Industries A/S Interim report Q2 2004 F.L.Smidth Highlights 2nd Quarter nSatisfactory order intake and turnover nHigher estimated costs of completing old projects Focus / Actions nManagement succession in Global Functions nCentralisation of R&D efforts Q2 2003 2.121 (82) (90) (86) Q2 2004 2.832 (1) (8) (20) DKKm YTD Net Turnover EBITA EBIT EBT

6 FLS Industries A/S Interim report Q2 2004 FFE Minerals Highlights 2nd Quarter nSatisfactory order intake and turnover nCommissioning difficulties on two projects nRelease of new projects delayed => Lower earnings forecast Focus / Actions nControlled organisational growth nTop resources allocated to project close-out Q2 2003 554 31 28 31 Q2 2004 705 6 3 0 DKKm YTD Net Turnover EBITA EBIT EBT

7 FLS Industries A/S Interim report Q2 2004 F.L.Smidth Airtech Highlights 2nd Quarter nConsiderable loss due to low turnover and higher provisions nReduced earnings forecast Focus / Actions nChange of management nFocused product-portfolio nSale of activities nReduction in number of employees nIntegration as a division in F.L.Smidth Q2 2003 306 (17) (16) Q2 2004 302 (57) (55) DKKm YTD Net Turnover EBITA EBIT EBT

8 FLS Industries A/S Interim report Q2 2004 F.L.Smidth Automation Highlights 2nd Quarter nSatisfactory order bookings nPositive development in aftermarket Focus / Actions nIntegration of F.L.Smidth Automation and F.L.Smidth activities in USA nDo. in India Q2 2003 161 (29) (30) Q2 2004 220 8 7 DKKm YTD Net Turnover EBITA EBIT EBT

9 FLS Industries A/S Interim report Q2 2004 F.L.Smidth Materials Handling Highlights 2nd Quarter nSuffering from low backlog at end of last year nSigns of increased activity Focus / Actions nSale of Motan completed nIntegrated as a division in F.L.Smidth Q2 2003 212 (23) (24) Q2 2004 126 (17) (18) DKKm YTD Net Turnover EBITA EBIT EBT

10 FLS Industries A/S Interim report Q2 2004 FLS miljø Highlights 2nd Quarter nCompletion of West Burton and Eggborough according to plans, although hand-over postponed to Q4 nGuidance unchanged despite delay Focus / Actions nTake over procedures have been started up Q2 2003 308 (325) (329) Q2 2004 141 (10) (7) DKKm YTD Net Turnover EBITA EBIT EBT

11 FLS Industries A/S Interim report Q2 2004 MAAG Gear Highlights 2nd Quarter nSatisfactory order intake and turnover nCost overruns in order execution Focus / Actions nProject managers reorganised and empowered nCost control Q2 2003 185 (18) (21) Q2 2004 243 (10) (11) DKKm YTD Net Turnover EBITA EBIT EBT

12 FLS Industries A/S Interim report Q2 2004 Pfister Highlights 2nd Quarter nSatisfactory order intake, turnover and earnings nTemporary slowdown in China nInternational demand picking up Focus / Actions nInternational sales outside China nR&D Q2 2003 108 12 11 Q2 2004 154 26 25 DKKm YTD Net Turnover EBITA EBIT EBT

13 FLS Industries A/S Interim report Q2 2004 Ventomatic Highlights 2nd Quarter nSatisfactory order intake, turnover and earnings Focus / Actions nProduct development nOrder execution Q2 2003 96 8 Q2 2004 104 9 DKKm YTD Net Turnover EBITA EBIT EBT

14 FLS Industries A/S Interim report Q2 2004 Dansk Eternit Holding Highlights 2nd Quarter nIncreased turnover nImproved earnings nOperating at full capacity in most segments Focus / Actions nFinalising the move of production facilities to the Czech Republic Q2 2003 419 (24) (29) (40) Q2 2004 483 11 7 (2) DKKm YTD Net Turnover EBITA EBIT EBT

15 FLS Industries A/S Interim report Q2 2004 Densit Highlights 2nd Quarter nLower earnings vs. last year nVaried level of activity in business segments served Focus / Actions nSG&A costs nSales Q2 2003 53 0 (1) Q2 2004 52 (2) (3) DKKm YTD Net Turnover EBITA EBIT EBT

16 FLS Industries A/S Interim report Q2 2004 Aalborg Portland Highlights 2nd Quarter nIncreased turnover in all units nSatisfactory earnings Focus / Actions nProcurement nSales - white cement Q2 2003 723 178 176 177 Q2 2004 872 210 207 185 DKKm YTD Net Turnover EBITA EBIT EBT

17 FLS Industries A/S Interim report Q2 2004 Unicon Highlights 2nd Quarter nHigh level of activity on all markets nSatisfactory earnings Focus / Actions nAbility to adjust capacity costs to changing level of activity Q2 2003 611 19 13 (5) Q2 2004 687 53 46 35 DKKm YTD Net Turnover EBITA EBIT EBT

18 FLS Industries A/S Interim report Q2 2004 Sale of Aalborg Portland and Unicon nAgreement to sell Aalborg Portland and Unicon to Cementir signed on 12 August nSales price DKK 4.4bn on a debt free basis nEffect of sale DKK +0.6bn on EBT and DKK +0.4bn on equity, depending on timing of closing.

19 FLS Industries A/S Interim report Q2 2004 Sale of FLS Aerospace nThe sale of FLS Aerospace to SR Technics was finalised on 28 June 2004 nLoss on disposal of FLS Aerospace DKK 2,050m vs. previously announced DKK 2bn. Hereof DKK 97m recognised this year. Q2 2003 1,364 (23) (125) Q2 2004 1,075 (35) (190) DKKm YTD Net Turnover EBITA EBIT EBT

20 FLS Industries A/S Interim report Q2 2004 Financial highlights 1st half year 2004 DKKm (YTD)H1 2004H1 2003End 2003 Net turnover 7.667 7.055 14.911 EBITDA 367 26 (101) EBITA 144 (304) (2.883) EBIT96 (353) (2.990) EBT (28) 202 (2.550) Earnings (69) 171 (2.548) CFFO (408) (54) (200) CFFI (31) 867 533 Net interest-bearing debt 3.085 1.990 2.445 Turnoverincreasing in most operational units EBITAconsiderable improvement over last year EBT negatively impacted by the sale of FLS Aerospace, positively impacted by earnings in Atlas Cement CFFO negative in FLS miljø and F.L.Smidth

21 FLS Industries A/S Interim report Q2 2004 Balance Sheet DKKmQ2 2004Q1 2004End 2003 Intangible assets 1.2321.2111.206 Tangible assets3.6933.7613.467 Financial fixed assets827746777 Current assets5.7506.3085.929 Total assets11.50212.02611.379 Equity2.6572.8392.916 Provisions 9379401.098 Long-term and current liabilities7.9088.2477.365 Total liabilities11.50212.02611.379 Solvency 23%24%26%

22 FLS Industries A/S Interim report Q2 2004 Half year EBIT in recent years 1st half year 2004 nConsiderable improvement over last year nStrong improvement in performance in Aalborg Portland, Unicon, Pfister and Dansk Eternit Holding nReduced losses in F.L.Smidth, MAAG Gear, FLS miljø and FLS Aerospace

23 FLS Industries A/S Interim report Q2 2004 Change in EBIT excl. non-recurring items DKKm 2nd quarter YTD 2003 DKKm 2nd quarter YTD 2004 Reported EBIT-353Reported EBIT96 Non-recurring items Aalborg Portland - waste tax case32 Aalborg Portland - provision adjustment18 FLS Aerospace - depreciations in 2003 (none in 2004)-91 Aalborg Portland - Sinai tax issue16 FLS Industries – sale of property 33Unicon - sale of property15 EBIT excl. non-recurring items-327EBIT excl. non-recurring items47 +374 Improvement in ordinary performance DKK 374m vs. last year - primarily due to reduced losses in FLS miljø and F.L.Smidth

24 FLS Industries A/S Interim report Q2 2004 Financial highlights 2nd Quarter 2004 2nd Quarter (DKK mill.) YTD EBIT 20032004 F.L.Smidth(90)(8) FFE Minerals283 F.L.Smidth Airtech(17)(57) F.L.Smidth Automation(29)8 F.L.Smidth Materials Handling(24)(18) MAAG Gear(18)(10) Pfister1226 Ventomatic89 Dansk Eternit Holding(29)7 Densit0(2) Aalborg Portland176207 Unicon1346 FLS Aerospace(23)(35) FLS miljø(325)(10) Others (Parent company, real estate companies, eliminations) (35)(70) Total(353)96 (47) (excl. elim.) (130) in 2003 258 (excl. elim.) 160 in 2003

25 FLS Industries A/S Interim report Q2 2004 Updated guidance for 2004 nTurnover DKK 14bn (up from DKK13bn) nEBITA DKK 400-500m nEBIT DKK 300-400m nEBT DKK 750-850m (up from DKK 250-350m) nBased on ownership of Unicon and Aalborg Portland throughout 2004 nClosing prior to year-end will reduce turnover and earnings

26 FLS Industries A/S Interim report Q2 2004 Strategy Update Strategic Action Points F.L.Smidth &Administratively FLS Industries merged FLS Aerospace Sold Aalborg PortlandSold and Unicon Debt reduction This year FLS miljø Last projects to be handed over shortly Dansk Eternit Holding Restructuring in progress F.L.SmidthRestructuring in progress A Focused Company nwith a unique global market position nsupported by steady growth in global cement consumption naiming for a 5% EBT ratio

27 FLS Industries A/S Interim report Q2 2004 2004 Questions


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