FLSmidth introduces new pure play strategies for Mining and Cement and introduces new long-term financial targets at its Capital Markets Day 2023
COMPANY ANNOUNCEMENT NO. 2-2023
18 January 2023, Copenhagen, Denmark
Today FLSmidth is hosting a Capital Markets Day, where the company is introducing its new pure play strategies for Mining and Cement as well as its new long-term financial targets for the FY2026.
Our business and our business environment have changed in recent years. While our business performance has gradually improved, we have potential for more. As a result, we kickstarted a transformation journey in 2022 with a sharpened strategic focus on technology, Products & Services and sustainability to maximise our opportunities in Mining and Cement. In addition, we are simplifying our operating model to reduce risks, improve efficiencies, ensure stronger execution and improve profitability and quality of earnings.
“We must prioritise our efforts on our core business, reduce risk and execute with excellence. We have already started to fundamentally transform our business to ensure stronger strategy execution and to achieve our long-term ambitions to the benefit of our stakeholders”, comments Mikko Keto, CEO at FLSmidth.
Mining strategy (CORE’26)
Our new Mining strategy provides a clear path to build on our core strengths to become an even stronger player in the Mining market and to improve our profitability in Mining. CORE’26 is rooted on our purpose of ‘mining for a sustainable world’ with a mission of ‘delivering solutions for tomorrow’s mine’. To deliver on this, CORE’26 is focused on four areas: Sustainability, Service, Technology and Performance.
- Sustainability: Building a better future for our employees, society and the planet
- Service: Global partner for life-cycle performance and sustainability
- Technology: The complete provider for process and product technology
- Performance: Accelerating profitability through core businesses, simplification and balanced risk
Cement strategy (GREEN’26)
We are on a journey to become the preferred service provider and we have a clear commitment to drive the green transition in the cement industry. Towards 2026, our new Cement strategy focuses on three key areas:
- Operating model transition: Improve profitability and ensure we are fit-for-purpose
- Service business model transition: Accelerate service growth and advance green offerings
- Green transition: Fulfil our commitment to drive the green transition in the cement industry and leverage the potential from this
New long-term financial targets
The previous mid- and long-term financial targets were withdrawn in connection with the release of the Annual report 2020, due to the uncertainty around the pandemic and other structural changes. Following the acquisition of TK Mining, our pure play approach and the establishment of a Non-Core Activities segment, we now have improved visibility into each of our different businesses.
As a consequence, we are introducing new long-term financial targets for the FY2026 with a core focus on quality of earnings and reduced earnings volatility.
For the FY2026, we expect to deliver:
- 13-15% EBITA margin in Mining
- ~8% EBITA margin in Cement
Further, our capital allocation is focused on having a strong balance sheet while allowing for growth investments and value-adding M&A.
Our capital structure targets for leverage and dividend pay-out ratio remain unchanged with:
- Leverage (NIBD/EBITDA < 2)
- Dividend pay-out ratio (30-50% of net profit)
Excess cash may be distributed either via extraordinary dividends or share buyback programmes. An equity ratio of >30% is no longer a capital structure target.
All sessions of the Capital Markets Day 2023 are webcasted live at www.flsmidth.com/en-gb/company/investors/capital-market-days. Replay of the presentations will be made available on our website after the event and the corresponding presentation material will be made available throughout the day.
Rasmus Windfeld, +45 40 44 60 60, firstname.lastname@example.org
FLSmidth provides sustainable productivity to the global mining and cement industries. We deliver market-leading technology, products and service solutions that enable our customers to improve performance, drive down costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030. FLSmidth works within fully validated Science-Based Targets, our commitment to keep global warming below 1.5°C and to becoming carbon neutral in our own operations by 2030. www.flsmidth.com
AttachmentTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Nokia comments on AT&T vendor plans5.12.2023 03:30:00 CET | Press release
Nokia Corporation Stock Exchange Release 5 December 2023 at 4:30 EET Nokia comments on AT&T vendor plans Espoo, Finland – Nokia has a wide-ranging relationship with AT&T, supplying products and services across wireless, wireline and other network technologies, alongside similar relationships with other major North American network operators. Nokia is aware of AT&T’s plans to commit to an Open RAN deployment in collaboration with other vendors over the next five years. As a result, Nokia now expects revenue from AT&T in Mobile Networks will decrease over the next 2-3 years. AT&T accounted for 5-8% of Mobile Networks net sales year-to-date in 2023. The already announced action Nokia is taking to reduce its cost base is expected to partially mitigate the impact of AT&T’s decision. Nokia expects Mobile Networks to remain profitable over the coming years but this decision would delay the timeline of achieving double digit operating margin by up to 2 years. Nokia has invested heavily in the
Canadian Government Awards New Funding to General Fusion5.12.2023 02:00:00 CET | Press release
RICHMOND, Canada, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Today, General Fusion announced that Canada’s Strategic Innovation Fund (SIF) has awarded CA$5 million to support research and development to advance the company’s Magnetized Target Fusion (MTF) demonstration at its Richmond headquarters. Called LM26, this ground-breaking machine will progress major technical milestones required to commercialize zero-carbon fusion power by the early to mid-2030s. The funds are an addition to the existing contribution agreement with SIF, to support the development of General Fusion’s transformational technology. Fusion energy is the ultimate clean energy solution. It is what powers the sun and stars. It’s the process by which two light nuclei merge to form a heavier one, emitting a massive amount of energy. By 2100, the production and export of the Canadian industry’s fusion energy technology could provide up to $1.26 trillion in economic benefits to Canada. Additionally, fusion could completely offset
LeddarTech and Prospector Capital Corp. Announce Effectiveness of Registration Statement and December 13, 2023 Extraordinary General Meeting to Approve Business Combination4.12.2023 23:30:00 CET | Press release
QUEBEC CITY, Dec. 04, 2023 (GLOBE NEWSWIRE) -- LeddarTech Inc.® (“LeddarTech” or the “Company”), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology for ADAS and AD, and Prospector Capital Corp. (“Prospector”) (NASDAQ: PRSR, PRSRU, PRSRW), a publicly traded special-purpose acquisition company led by former Qualcomm President Derek Aberle and chaired by former Qualcomm Vice Chairman Steve Altman, today announced that on December 4, 2023 the U.S. Securities and Exchange Commission (the “SEC”) declared effective the Registration Statement on Form F-4, as amended, filed by LeddarTech Holdings Inc. (“Newco”) in connection with the previously announced proposed business combination (the “Business Combination”). The filing can be viewed in its entirety on the SEC’s website at www.sec.gov. Prospector also commenced mailing the definitive proxy statement/prospectus on December 4, 2023, which was included in the Reg
Information regarding the total number of voting rights and total number of shares of the Company as of November 30, 20234.12.2023 22:30:00 CET | Press release
Information regarding the total number of voting rights and total number of shares of the Company as of November 30, 2023 (Article 223-16 of the General Regulations of the Autorité des Marchés Financiers) Market : NYSE Euronext Paris ISIN Code: FR 0010417345 Date Total number of shares Total number of voting rights11/30/2023 96,431,770 Total gross of voting rights: 96,431,770 Total net* of voting rights: 96,186,256 * Net total = total number of voting rights attached to shares – shares without voting rights Attachment PDF Version
Nanobiotix Announces Closing of the Remaining $4.8 Million Investment From Johnson & Johnson Innovation – JJDC, Inc.4.12.2023 22:16:59 CET | Press release
Aggregate gross proceeds of approximately €50.9 million (equivalent to approximately $53.8 million) received by NANOBIOTIX has increased to approximately €55.5 million (equivalent to approximately $58.7 million) extending its runway into mid’ 2025 PARIS and CAMBRIDGE, Mass., Dec. 04, 2023 (GLOBE NEWSWIRE) -- NANOBIOTIX (Euronext: NANO – NASDAQ: NBTX – “Nanobiotix” or the “Company”), a late-clinical stage biotechnology company pioneering physics-based approaches to expand treatment possibilities for patients with cancer, announces today the closing of the previously announced subscription by Johnson & Johnson Innovation – JJDC, Inc. (“JJDC”) for 901,256 additional ordinary shares of the Company, in the form of restricted American Depositary Shares (“ADSs”), for an aggregate amount of $4.8 million, equivalent to €4.6 million1 (the “Remaining Placement Amount”, and the subscription transaction being the “Remaining Placement”), following the approval by the French Ministry of Economy of JJ