Dias nummer 1 -...

15/13/2014FLSmidth RUS

FLSmidthIn Pakistan

FLS in Brief

FLS in Pakistan

Costumer relations

Safety issues

Agenda

130 years old company

leading supplier of equipment and services to the global

minerals and cement industries

FLSmidth supplies everything from single machine

units to complete minerals and cement plants

including associated services

FLSmidth primarily focuses on the

following industries: coal, iron ore,

fertilizers, copper, gold and cement

Listed on NASDAQOMX Copenhagen

More than 15,000 employees

3FLSmidth corporate presentation 2013

FLSmidth in brief

Group Structure

Group Structure

Interim Report Q1 2013 Roadshow 4

Global reach with presence in 50+ countries

5FLSmidth corporate presentation 2013

Supercenters Project and Technology centres Production Sales and representation offices


FLS in Pakistan

We build the first plant in the 80’s

The company did not have Pakistan as a priority

The business started in beginning 1991 where the industry was privatized

We engaged from the beginning with a local agent, Falcon engineering.

The decade of the nineties became very successful to FLS with respect to Pakistan that was one of the top revenue market


Large Projects

1990 - AC Wah

1991 - Pioneer Cement

1993 - Fauji cement with participation of IFU

1994 - DG Khan

1994 - Maple leaf with participation of IFU

1995 - Chakwal with participation of IFU

2003 - Maple leaf line II with participation of IFU

2004 - DG. Khan (Khaipur) with financing from EKF/EIB

2005 - Chakwal completion (second time) with financing from EKF

2013 - Lucky cement mill

2014 - ??? A number of projects in the pipeline

Plus a large number of smaller projects including conversion from

oil/gas to coal due to a doubling of the oil price.

Pakistan is in quite advanced regarding waste heat recovery

Complete cement plants by FLS in Pakistan


FLS in Pakistan

Financing with EKF, and others and equity participation with IFU has been key drivers for our success

In 1996 until 2004 we were running a quite resource consuming tax case, partly because we did not understand the system well enough.

Relation based business.

The basis for cooperation is trust more than contracts

Effective in the decision process

Hard negotiators, discount expectations

Currently a quite difficult banking system on foreign transactions,

Major problems with LC wordings.

Business Culture

Macro indicators for the cement industry



Why are we active in Pakistan right now?

We have a big portfolio of equipment that requires service and spare parts

Our customers seems very optimistic about the investment climate and the newly election result have had a boost on that view as they see Nawaz Sharif as an improvement to the economical growth

New investment wave in the cement industry

Cement producers are moving from being domestic producers only to being overseas investors in cement plants.

Last year we had a fairly high activity in Pakistan


Safety issues

Safety issues and impact Rather comprehensive set up

FLS is using control risk

Call back

Neutral pick up service in airports

We only use selected and approved hotels

We stay out of Karachi

We do not leave hotels unaccompanied

Problems with transport to remote sites

Limiting our business opportunities


Thank you

Dias nummer 1 -...

Documents

Transcript of Dias nummer 1 -...