FLSmidth Announces ‘GREEN’26’ Cement Strategy for Green Transition and Growth in Service Business

FLSmidth Announces ‘GREEN’26’ Cement Strategy for Green Transition and Growth in Service Business

(PRESS RELEASE) COPENHAGEN, 18-Jan-2023 — /EuropaWire/ — FLSmidth (CPH: FLS), a Danish multinational engineering company, announced today at its Capital Markets Day the introduction of new pure play strategies for mining and cement and new long-term financial targets for the fiscal year 2026.

The company has undergone a transformation in recent years, with a focus on technology, products, and services and sustainability in order to maximize opportunities in the mining and cement industries and improve profitability. As CEO Mikko Keto stated, “We must prioritize 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.”

The new mining strategy, CORE’26, is centered around the purpose of “mining for a sustainable world” and the mission of “delivering solutions for tomorrow’s mine.” It focuses on four main areas: sustainability, service, technology, and performance. The new cement strategy, GREEN’26, aims to become the preferred service provider and drive the green transition in the cement industry, focusing on operating model transition, service business model transition, and green transition.

FLSmidth also announced new long-term financial targets for the fiscal year 2026, with an EBITA margin of 13-15% in mining and ~8% in cement, a focus on quality of earnings and reduced earnings volatility, and a capital allocation strategy centered on maintaining a strong balance sheet while allowing for growth investments and value-adding M&A. The company also stated that leverage and dividend pay-out ratio targets remain unchanged, and excess cash may be distributed via extraordinary dividends or share buyback programs.

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.

Investor Relations
Jannick Lindegaard Denholt, +45 21 69 66 57, jli@flsmidth.com
Therese Möllevinge, +45 41 37 16 38, tmo@flsmidth.com
Mikkel Johansen, +45 23 30 29 50, mjoh@flsmidth.com

Media Relations
Rasmus Windfeld, +45 40 44 60 60, rwin@flsmidth.com

About FLSmidth
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

SOURCE: FLSmidth