21 June 2017

Francesco Ferrandico, President FLSmidth Ventomatic

Cement packaging

Capital Market Day 2017

FLSmidth Ventomatic in a nutshell

 World leader in Cement packaging – strong reputation in

fully automatic packing and dispatching lines
 Innovative product range composed of equipment
developed in the last 5 years
 Growth opportunities through
 Increasing productivity in our core market – more automation,
upgrades of existing facilities, and innovative service models
 Entering adjacent growth markets based on our strengths, e.g.
building materials, fertilizer and petrochemicals

2 21 June 2017 Capital Market Day

Cement bags are a common way
of distribution in the industry
 Bags are a common way of distribution
Bulk in developing countries, where up to 45%
shipping
Cement
Silo of cement (up to 60% in India) is shipped in
grinding
bags
Packing
 Packing plants are part of full cement
Packing in the Cement process production lines, but also grinding stations
or cement terminals
 A cement bag usually weighs 50kg,
a single packing line produces up to
15 million bags per year
 The industry trends towards increasing
Glued paper Glued WPP Paper Stitched Plastic Stitched safety and productivity trigger need for
Types of Cement bags upgrades

3 21 June 2017 Capital Market Day

Cement packing of the past
dangerous, hazardous and labor-intense

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Packing plants have evolved into
complex, fully automated operations
 Packing plants consist of 2 – 8 packing
lines (depending on level of automation)
 Packing lines cost DKK 3m – 11m and
produce on average 2.800 50kg bags/hour
or >15 million bags p.a.
Compact packing plant  Full automation reduces required
manpower per shift from 12 to 2 when
going from complete manual to automation
packing – with the same output

Full-scale packing plant

5 21 June 2017 Capital Market Day

FLSmidth Ventomatic provides the key product types
and integrates them for fully automated packing plants

Electronic rotary and Empty bag Palletizing Loaders for closed Loaders for open top
inline packers applicators systems trucks/containers trucks

Equipment for filling bulk Advanced machine for Receiving full bags (from First full automatic pallet Receiving full bags from
cement from silos into bags automatically placing 25 kg to 50 kg) from packer loading system in the packers and loading
with high weight accuracy various type of empty bags and forming bags pallets of market for closed trucks directly open truck trucks
and an output from 60 on packers with speed from different layers. Pallet and containers from the top
tons/h up to 250 tons/h 600 bags/h up to 6.000 weight goes from 0,5 tons
Significant increase of
bags/h to 2 tons
safety level and
productivity (no fork lifts
and relevant operators)

FLSmidth Ventomatic’s product range composed of

equipment developed in the last 5 years

6 21 June 2017 Capital Market Day

 SALES BY CUSTOMER GROUP

Competitor 1

Competitor 2
FLSmidth

Others Core markets

FLSmidth Others with strong positioning

FLSmidth
Ventomatic is the
leading brand in
Cement packing Significant share Main growth levers
of business with Productivity in Cement
Chinese Design Institutes Improve geographical coverage
for international projects Adjacent markets

7 21 June 2017 Capital Market Day

 Ventomatic is well-positioned to
grow in the Cement market
Market trends and
productivity requirements

Increase output of existing lines

High capacity and flexibility
Improve health and safety

Reduce manpower
Full automation

Reduce power consumption

Innovative logistic solutions

Reduce truck waiting time

Service and aftermarket offering
Reduce inventory (bags on stock)

8 21 June 2017 Capital Market Day

Growth through Productivity:
CARICATECHTM automatic truck loader
 Innovative development for loading all type of bags on all
kind of trucks
 Bag layers are picked up by a fork with a special roller way
(no vacuum system required) while maintaining the traditional
loading from the top
 Addresses trend of productivity improvements through
automation in developing markets
 CARICATECHTM replaces existing loading equipment without
major process changes or rebuilds - targeting upgrades of
existing packing lines

9 21 June 2017 Capital Market Day

We are targeting several adjacent industries
with significant growth potential

Building Materials Petrochemical Fertilizers

 Familiar packing process, different types  Different packing process  Different packing process
of powders and mix  Request for higher capacity and  Open for innovative solutions for truck
 Cleaning, bag accuracy and automation integrated solutions and wagon loadings
are key selling points  Strong market growth  Focus on logistic: how to deliver bags in a
better way
 Strong market growth
Market size:

0.3 x Cement 1 x Cement 1.5 x Cement

10 21 June 2017 Capital Market Day

We leverage our strengths to
succeed in adjacent markets

Packing Bag application Palletizing Loading

Cement
+ + + +
Building Materials
+ + + + Palletizing and loading
are strongholds of
Fertilizer
Different process requires + + FLSmidth Ventomatic –
existing technology can
development of product range be transferred
Petrochemical + +

11 21 June 2017 Capital Market Day

 FLSmidth Ventomatic in a nutshell

 World leader in Cement packaging – strong reputation in

fully automatic packing and dispatching lines
 Innovative product range composed of equipment developed
in the last 5 years
 Growth opportunities through
 Increasing productivity in our core market – more automation,
upgrades of existing facilities, and innovative service models
 Entering adjacent growth markets based on our strengths, e.g.
building materials, fertilizer and petrochemicals
 Additional 3-5% growth above market reachable

12 21 June 2017 Capital Market Day

Thank you

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13 21 June 2017 Capital Market Day