Company Announcement to the Danish Financial Supervisory Authority No. 03-2013, 12 February 2013
The Board of Directors and the Executive Management have today considered and approved the annual report of FLSmidth & Co. A/S for the financial year 1 January - 31 December 2012.
The consolidated financial statements are presented in accordance with International Financial Reporting Standards as adopted by the EU. The parent financial statements are presented in accordance with the Danish Financial Statements Act.
Further, the annual report is prepared in accordance with Danish disclosure requirements for listed companies.
The report is accessible at FLSmidth's website:
http://www.flsmidth.com/reports
The main conclusions of the annual report are:
Financial results in Q4 2012
Strong operating cash flow, record high quarterly revenue and satisfactory margins
The order intake increased 4% to DKK 6,104m (Q4 2011: DKK 5,856m)
Revenue increased 16% to DKK 8,051m (Q4 2011: DKK 6,911m)
Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 1% to DKK 966m (Q4 2011: DKK 978m), corresponding to an EBITDA margin of 12.0% (Q4 2011: 14.2%)
Earnings before amortisation and impairment of intangible assets (EBITA) decreased 4% to DKK 890m (Q4 2011: DKK 931m), corresponding to an EBITA margin of 11.1% (Q4 2011: 13.5%)
Earnings before interest and tax (EBIT) decreased 8% to DKK 796m (Q4 2011: DKK 865m), corresponding to an EBIT margin of 9.9% (Q4 2011: 12.5%)
Earnings before tax (EBT) decreased 9% to DKK 767m (Q4 2011: DKK 843m)
The profit for the period decreased 19% to DKK 462m (Q4 2011: DKK 567m)
Cash flow from operating activities amounted to DKK 1,532m (Q4 2011: DKK 260m)
Financial results for 2012
Full-year guidance met: DKK 25bn revenue and 10.1% EBITA margin. Planned DKK 1bn cash distribution.
The order intake increased 15% to DKK 27,727m (2011: DKK 24,044m)
The order backlog increased 9% to DKK 29,451m (end of 2011: DKK 27,136m)
Revenue increased 21% to DKK 24,849m (2011: DKK 20,538m)
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 9% to DKK 2,759m (2011: DKK 2,528m) corresponding to an EBITDA margin of 11.1% (2011: 12.3%)
Earnings before amortisation and impairment of intangible assets (EBITA) increased 7% to DKK 2,502m (2011: DKK 2,347m), corresponding to an EBITA margin of 10.1% (2011: 11.4%)
Earnings before interest and tax (EBIT) decreased 6% to DKK 1,988m (2011: DKK 2,117m) corresponding to an EBIT margin of 8.0% (2011: 10.3%)
Earnings before tax (EBT) decreased 5% to DKK 1,927m (2011: DKK 2,038m)
Profit for the period decreased 9% to DKK 1,303m (2011: DKK 1,437m)
Cash flow from operating activities increased to DKK 1,720m (2011: DKK 1,148m)
Net interest-bearing debt (Group) amounted to DKK -3,084m (end of 2011: DKK -98m)
Working capital (Group) amounted to DKK 1,950m (end of 2011: DKK 1,620m)
Return on capital employed (ROCE) declined to 19% (2011: 23%)
Cash Distribution
The Board of Directors plans to make a total cash distribution of DKK 1bn after the Annual General Meeting on 5 April 2013 in the form of:
-A proposed dividend of DKK 9 per share (2011: DKK 9) corresponding to 36% of the year's profit (2011: 33%) and a dividend yield of 2.8% (2011: 2.7%) representing a total value of DKK 479m
-An extraordinary distribution in the form of a share buy back program of DKK 521m
Outlook for 2013
In 2013, FLSmidth & Co. A/S expects consolidated revenue of DKK 27-30bn (2012: DKK 25bn) and an EBITA margin of 8-10% (2012: 10.1%) for continuing activities. Cembrit is classified as assets held for sale and reported as discontinued activities.
The margin guidance includes costs of a one-off nature, of around DKK -200m for the Group in 2013 (2012: DKK -225m).
Cash flow from investing activities (including acquisitions but excluding disposals) is expected to amount to the level of DKK -1bn in 2013 (2012: DKK -3,640m).
The effective tax rate is expected to be 32-34% in 2013 (2012: 34%).
Return on Capital Employed (ROCE) is expected to be 15% in 2013 (2012: 19%)
2013 is expected to be a trough year in terms of EBITA margin, whereas both cash flow from operating activities and order intake are expected to be satisfactory in 2013.
The four divisions are expected to see the following developments in 2013:
Expected revenue
Customer Services: DKK 8-10bn
Material Handling: DKK 4-6bn
Mineral Processing: DKK 10-12bn
Cement: DKK 5-7bn
Expected EBITA margin
Customer Services: 13-15%
Material Handling: >0%
Mineral Processing: 8-10%
Cement: 6-8%
Long-term financial targets
Long-term financial goals for FLSmidth subject to normalised market conditions
Annual growth in revenue above the market average
EBITA margin 10-13%
ROCE *) >20%
Tax rate 32-34%
Equity ratio >30%
Financial gearing (NIBD/EBITDA) <2
Pay-out ratio 30-50% of the profit for the year
*) ROCE: Return on Capital Employed calculated on a before tax basis as EBITA divided by average Capital Employed including goodwill.
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Please address any questions to this announcement to Mr Jørgen Huno Rasmussen, Group CEO, telephone +45 36 18 18 00.
An investor & press meeting and telephone conference regarding the annual report will be held today at 11:00 hours CET at the company's headquarters.
For further details please visit www.flsmidth.com
http://www.flsmidth.com/en-us/News+and+Press/News/2013/Invitation+to+Q4+2012+investor+meeting
FLSmidth & Co. A/S
Corporate Communications & Investor Relations