Good morning everyone and welcome to FLSmidth's Q4 2025 release call. Today here with me is presenting Roland Andersen, our Chief Financial Officer, and I'm FLSmidth's Toni Laaksonen.

Briefly about my background, I have a 20-year industrial background from different companies and mostly from the mining industry. Before joining the group, I was the CEO of a stock-listed company in Finland.

Then I was with the Service business line in FLS and spent eight, eight months over here leading the Service team, and now taking over the CEO position. Very excited to start working with the entire group across the world.

Then a few strategic highlights from last year. 2025 was the big milestone in the FLS history.

One big transformation in the company was the divestment of the Cement business. We became a pure-play mining supplier for technologies and services, which is a huge milestone for the whole company.

Then on the other hand, at the same time we were strengthening our offering commercially both with our Service business line and Products—pumps, cyclones, and valves. With both businesses we saw a solid organic growth throughout the year, which was then strengthened in Q3 and Q4.

Then on the other hand with the Products business, we saw an uptick in Q4, but otherwise the market was pretty soft during the year and subdued. We saw certain engineering activity, but it was not a steady market as such which we had with Services and PCV.

Therefore we continue to de-risk the Products business and now we are more focused on the product sides and we are not anymore as a project supplier as such. Then from the profitability point of view, we had a very solid EBITA margin.

We continued to improve that compared to last years. We hit almost 16% as a total.

Then from the free cash flow point of view, excluding the M&A activities, we had a strong year hitting 645 million. Solid financial results as such.

Then on the other hand, we introduced the share buyback program last year, which is also a big milestone for the company. It was in total 1.4 billion DKK, which is a very big commitment from the company to support the shareholder value.

Several strategic highlights throughout the year and milestones for the company. Then from the sustainability point of view, good progress in many fronts.

To take a few highlights from the picture, I would say that we still have improvement opportunities with our safety. Our target is for zero harm and we still had 2.3 as average injury rate, which is too high.

We are making all the proactive actions to take the number down continuously and we have certain global programs which we are driving to get to the zero harm level. Then on the other hand, one improvement area is definitely the Scope 3, where we are doing a lot of things with our equipment and technology range to make improvements.

Then the other aspects I would say that we were developing well throughout the year. Now for this year we will have a new baseline when the Cement business has been divested and we are just fully focusing on the mining technologies.

Then a few words on the market conditions. As mentioned about the Products, the market has been subdued.

We have been de-risking and focusing more on the products business instead of the full-blown big projects. That's of course impacting us.

Then on the other hand, with the Services and PCV, we see good demand and we see that development continues this year. The commodity prices have been increasing, especially copper, and gold price is being very high.

Then still that's not impacting on the customer decision-making in the short term. Of course the long term is positively impacted, but that's not meaning that they would release any large-scale mining projects in the short run.

The engineering activity has remained very high in some countries, but of course that means that the engineering activity covers both brownfield and greenfield sites, and majority of the activities are with the brownfield operations at the moment. Therefore they are not sanctioning the greenfield projects as fast as the market would like to see from the market point of view.

We believe that in Q4 or in '27 we would see more action related to the project business. On the gold side, we have been seeing certain smaller projects being activated due to the high gold price, and there we see certain potential, especially with the smaller equipment deliveries, although the gold sites do not consist of major projects as such.

Then deep diving into the business lines and starting from the Services, the Q4 results were very strong, with Service order intake up +14% organically compared to last year and then revenue up +15% compared to '24. Solid quarter and there with Services we were gaining back backlog, which was not delivered in Q3.

Q4 was catching up with the delayed revenue and catching up with the backlog, which resulted in very healthy revenue level in Q4. Then when looking at the total year, the organic order intake was 4%, which was the normal level I would say, in that sense that that's something that we expect as a yearly development for the business.

Revenue-wise we were up +9% as a total. Healthy results from the revenue and order intake point of view.

Growth markets were specifically in South America and Africa. Then from the margin point of view, an excellent end for the year triggered by the high revenue results.

We achieved more than 20% adjusted EBITA margin, which is on the high end I would say, for the Service business line. A clear uptick there and the revenue level was supporting it.

From the Products point of view, the year was subdued, as mentioned previously. Order intake organically declined for the full year by -14%.

Certain uptick was visible in Q4. There we were gaining a few orders more than in a normal quarter, but then when balancing out the quarters, the organic growth was negative.

From the revenue point of view, we were declining -28%, which also demonstrates that the activity is not the highest at the moment. From the profitability point of view, good development in Q4 as we were catching up with our deliveries and increasing our revenue.

That resulted in a healthy result compared to the previous quarters and we were on the black numbers. A positive quarter in that sense, but then when balancing out the full year, we were still in negative figures.

There's still room to develop on that side. With pumps, cyclones, and valves, an excellent year from the growth point of view, +12% order intake growth organically and the same with revenue.

We were driving consistently the business up and that was also helping us us with the results. Continuous growth with the with the PCV business throughout the quarters.

Very healthy activity over here and of course the deliveries are smaller, focused on the on the mine improvements and replacements, and therefore this business has been more active during during last year and this year. Profitability remained at a very good level with PCV, 25% was the the end result in in Q4.

A very high level, and which was then a bit above compared to the previous quarters. On average, very good development with our margins in PCV.

Then I hand over to Roland.

Thank you for that, Tony. Let's just have a quick glance of the consolidated financials.

Full-year revenue a bit more than 14 billion, gross profit at 34.6, and with a significant reduction in SG&A we delivered an EBITA margin for the group of 18%. Below the line, we decided to take an impairment charge on our deferred tax assets in Denmark.

This is purely an accounting, non-cash impairment charge to our P&L. The tax losses live indefinitely and are in no shape or form lost.

When also finalizing the discontinued activities in connection with the handover of our Cement business, profit for that period was -714 Danish million. Our gross margin remained high through 2025, predominantly as a result of mix.

Service and PCV business was a relatively high part of our revenue throughout the year. A healthy end to the year of 34.6%.

SG&A costs for Q4 is 19% down on the same period last year. Both a drop in Danish krone, but also a reduction in SG&A as a percentage of revenue.

That indicates that we are moving forward on right-sizing our organization and moving into our new operating model. Most of the last savings have been taken in the support functions and then we have ramped up and invested a little bit in the commercial front end both in our product line, but also bits and pieces in the Service business.

Adding all that up, a relatively high revenue quarter in Q4, healthy gross margin, SG&A at a lower level means an 18% adjusted EBITA margin for that quarter. This is by no means a run-rate number.

It's a exceptionally good quarter for us and of course a home run in terms of margin. The higher revenue towards the end of the year in Q4 also means that had a relatively higher trade receivables level New Year's Eve.

Product business line with a higher revenue were finalizing a few projects and that means that we reduced our prepayments from customers and also a bit on work in progress. All in all means that our working capital in Q4 compared to Q3 went up by 573 million.

Despite a relatively high EBITDA, that was largely offset by the uptick in net working capital, leaving us with a modest cash flow from operating activities of +3 million Danish kroner for Q4. The free cash flow adjusted for M&A activities was +70.

Just a quick recap of the P&L: so 14.6 billion revenue, adjusted EBITA margin for the year 15.9, and a modest profit for the year of 8 million Danish kroner, which reflects that we have lost a bit more than 700 million on discontinued activities, the Cement business that is now finally out of FLSmidth, and the tax impairment charge of 600 million Danish kroner. Cash flow from operating activities for the year ended just shy of a billion, very much in line with what we had expected.

Our share buyback program that we launched last year is about to come to an end. By the end of Q4, we had a leverage ratio of 0.8x.

Just last night, we announced an intention to launch a new share buyback program, given we get the authorization from the AGM by end of March. Then we intend to launch it after we have printed our Q1 result in May.

That also means that we are returning quite a fair amount to shareholders in 2026. In 2025, ordinary dividends were 461 and a share buyback of 1.4.

This year, we will propose ordinary dividend of 231 and a share buyback program of 1 billion. This year we have introduced a new way of guiding.

We're done with the transformation and no longer see the need for directly guiding on our revenue. We will convert to guiding on organic revenue growth.

Organic means fixed currencies. For the group, we're guiding for 2026 at -1 to +4% organic revenue growth.

We expect to post an adjusted EBITA margin of between 15.5% and 16.5%. A little bit of underlying flavor or assumptions to that guidance.

Underlying, we expect Service business to grow 2 to 5% organically. The Products business line will decline by -5 to -15%.

It sounds a lot, but really it's plus/minus 150 DKK or so. That can easily happen when you execute larger product bundles or smaller projects, either because of delays on our side or changes in scope and timeline and so on on the customer side.

Hence why that span. Then we expect our Pumps business to post an organic growth rate of 4 to 7%, and that gives us the full guidance of -1 to 4%.

For those of you that like to do the reported revenue growth in Danish kroner, we can say that with the FX effects as per 16th of February, our DKK revenue growth would be about -2 to +3% growth. On the margin side, we came out of this year at 15.9.

We'll guide next year 15.5 to 16.5% EBITA margin. We'll adjust for about 100 million or around a percentage rounded, one-off items predominantly related to our ERP implementation and principal company model.

On the other hand, as some of you recall, we sold our former corporate headquarters in Denmark, and that cash comes in as extraordinary other operating income in Q1. That means an extra +5% that we will also adjust for.

That means when we do that, the expected reported EBITA margin will be around 19.2% margin. With that, I'll give it back for a few comments to Toni.

All right. Thanks Roland.

Excellent results, I would say, last year. I'd like to use this opportunity to thank our employees for their efforts, great contribution for the results, and then also our customers.

I want to thank them for continuing to work with us. A good year indeed for FLS.

Then a few words on this year and the way forward. Now in a good position from the company point of view.

We have cash, credit limits available. Financially, we are in a strong position, which then means that we can start investing in the growth journey.

We are looking for organic expansion opportunities actively, but on top of that, there are selective M&A cases which we would like to explore this year and we have been actively developing our pipeline. Through this, we want to be closer to the customers, serve them even more in the field, and help them to improve their operations.

Then at the same time, we continue improving our customer offering. We are looking into the portfolio, how we can drive that forward so that the miners can improve their productivity, reliability, and sustainability by utilizing our technologies and services.

It's also very important that our supply chain and delivery experience is great for the customers, and therefore we are continuously driving forward with our supply chain improvements, accountability within the organization, but at the same time securing that we are cost conscious when doing the exercise and securing that the cost level remains competitive throughout the organization. Through that, we want to ensure that the margin stays at the same level or even higher based on our forecasts.

Then of course we want to ensure that the growth journey continues from here. Then we of course want to balance the capital allocation so that we are utilizing a certain amount of money into our internal and external growth opportunities, but at the same time, we want to have good shareholder returns secured so that we have the combined financial flexibility for both company and the shareholder purposes.

It seems when moving forward. Then of course we are continuing to do the strategic planning for the company so that we will have a long-term plan available also for the external markets.

Based on our current expectations, we will host the Capital Markets Day in September, when we would then release the full strategy for the coming years. Now it would be time for the questions.

Good morning all and congratulations on your new role, Toni. I have three please.

Maybe firstly, if I could just start on the Products margin. Clearly a very strong result in the quarter, and I know there've been initiatives that have been implemented to reduce the break-even point in the business to DKK 3 billion.

I guess how much of this benefit came through in the quarter and how much is left to do? I'm just trying to understand what we can expect for next year as volumes will be down.

Thank you.

Thank you for the question and thanks for the congratulations. When looking at the Q4 result, of course the Products volume was high in Q4 and that was higher than maybe the normal quarter, and that was a big driver for the improvement.

We still have work to do to improve the profitability level. We have taken many actions last year to improve the margin, but still work remains to be done this year to get to the overall black figures.

The volume impact in Q4 was positive with the Products and that was driving up the profitability level.

Understood. Thank you.

My second question is just on, I guess, the outlook in Products. Two large orders were booked in the quarter, but then you've obviously mentioned there's hesitancy in customers allocating capital to these larger projects.

What is the catalyst for these customers to make this decision, and then is it possible to increase the small, medium-sized orders given where we are at with commodity prices, or should we continue to expect that 400 to 700 million run rate?

With the projects, I would say that the engineering activities have been very active, but then of course the customers are thinking about their risk level when doing the investments. The greenfield cases, the bigger cases, involve more risks and that's one factor which has been delaying those cases and delaying the sanctioning of the projects.

Many of the customers are seeking for improvement opportunities with their current operations, and we have been also seeing M&A activity within the miners. They have been improving their performance within selected sites, and they have such plans in place for the future.

We believe that through the engineering activities, we would see more maybe sanctioning next year and probably in the end of the year, but in the short term, I wouldn't expect that there is too much big projects being sanctioned. Then as mentioned in the presentation, with the gold projects, we have been seeing more activities and smaller customers are actively seeking for improvement opportunities with their current operations and possibly some smaller mines.

Of course we are in those discussions actively and we are participating in them through all the business lines. Some of the impacts are then visible with our PCV business line, some with Services, where we have upgrades and modernizations, and then of course this will to certain extent help Products from the order intake point of view.

Then when looking at the revenue, normally it takes a bit longer for the Products to come through the profit and loss statement.

Thank you very much. Final question, just on capital allocation.

Obviously you've spoken about this as one of the priorities for next year, but just trying to understand maybe in terms of what your priorities will be given you've announced the share buyback this year, but maybe less than last year. Thank you.

Thank you for that one. Obviously our dividend policy say that we will distribute in dividend 30 to 50% on net profits, and net profits were close to zero.

We chose a number of dividend that was slightly outside that range, and then a share buyback of 1 billion. Then we have an M&A pipeline that we are currently developing.

I think we expect maybe one or two of the targets in that pipeline to materialize. That's never certain, but that's what we expect.

We have balanced sort of what we may need into M&A, what we could return to shareholders, and then at the same time thinking about that our leverage ratio can be slightly higher than the 0.8x we came out of 2025 with.

Very clear. Thank you so much.

Morning, Roland, and welcome, Toni. I want to start, apologies for the reiteration of the last question, but if we think about the ex-large order numbers in organic terms, quite considerable, minus 5-15 of underlying orders.

I guess if we map the comments in your release and also from peers that are reported in terms of decision-making on large projects being subdued, but brownfield investments continuing, that narrative frankly is just at odds with the Q4 numbers, which are obviously driven by large order growth. You've also seen the Rio Tinto investment, I guess that was yesterday or earlier this week.

I guess what are we missing here in terms of that dislocation because the numbers tell a different story to the narrative?

Maybe some clarification on that one. If you look into our numbers last year, there was also maybe certain shift between the quarters.

Q2, Q3 were not that strong with the Products, and then for various reasons, some of the customers wanted to just sign the deals just before the year end. Some of the signings were postponed throughout the year and we were seeing pretty low quarters, and then the order intake went up in Q4 because of the fact that then the customers were signing those delayed cases.

They just wanted to finish the year so that they have a clear way forward. If you then balance out the order intake between the quarters, that gives maybe a more stable and clear impression on the situation.

Thank you, Toni. Maybe secondly, on the exit margin in Products in the fourth quarter, you'd said at the 3Q results that the segment would likely be loss-making until we were exiting 2026.

Clearly, you're running well ahead of that. I guess, curious about the phasing of profitability through the quarter.

I appreciate you had a good delivery period in 4Q '25. Should we think about there being an implied volume threshold for being break-even within Products?

How do we think about the phasing in 2026?

Thank you for that, Christian. I think we're not really running ahead of ourself, I think.

I understand that Q4 looks like a significant home run, but we've always said it's volatile, both the order intake, but really also the execution of the backlog. A few things were finalized in Q4 and that meant a higher revenue, and the contribution margin, gross profit was throwing through to the bottom line.

Our Q3 was not particularly great, as we can all remember. I won't say restructuring, but the adjustments we do in the Products business line continue, and we still expect to spend most of this year doing so, so that the Products business line, around a billion 3 billion in revenue, 2.8, 3 billion, needs to be break-even on a run-rate basis in Q4.

That's still the thinking. There has been no change in that.

That's how it is.

Understood. Thank you, Roland.

Maybe finally, as we think about the order intake, but maybe also the revenue delivery, how is pricing developing and what are your expectations for the year ahead?

Thanks for that. From the pricing point of view, I would say that the market remains at the stable level.

The stable development which we are seeing from the sales development perspective with our pumps, cyclones, and valves, and with Services, similar development is visible in pricing. We are not seeing any major fluctuations like material costs or so on.

Pretty stable development there due to the activity level.

Thank you, Toni.

Thank you. Also from my side, first and foremost, a very warm welcome to you, Toni.

Congratulations. The first one is also about the order intake in Q4.

You said that weak Q2, Q3 and then a lot that came in Q4. Is that also a negative read into Q1 '26?

Your pipeline has been more or less used, and you need '26 to build a new pipeline? That would be the first question.

I would say that that's not the case in this situation. In many industries, we are seeing similar development that the customers are utilizing their CapEx budget, which they have for the year, in Q4, and then that means in several cases that there's more activity.

That was also visible in our figures. Quite often there is some sort of an uptick with the Q4 figures, and that's normal in many businesses.

We didn't front-load in this case anything for Q4, we should see pretty stable development in Q1.

Sounds great. Then a second question regarding the order intake.

Compared to your internal let's call it bonus KPIs, order intake missed the expectations set out in the start of '25. Was that broad-based or was it in Products or where did you see the

miss? I think the board had high expectation to Mikko and myself, so that target was set pretty high.

Then it was set in Danish kroner. We have had considerable FX headwind.

I understand, Klaus, you've read the magic pages in the remuneration committee, which is where you picked that up. That's the reason.

Right. Okay.

Then just the final question regarding your 2026 guidance. This, you could call it broad revenue growth guidance of 5 percentage points, but the margin is only 1 percentage point.

Is that really the difference between ending in an upper and lower end of the revenue growth guidance?

Klaus, there's only one answer to that, and that is yes, right? What we're trying to explain is that we need a little bit of a band in the Products business line because execution can swing a bit month-by-month, Q-by-Q due to our own doing, but also very much due to the customer's decisions to either change or delay or rescope or things will happen.

Then I think in Pumps business and also in our Service business line, we have a number of initiatives coming up and we are actually a little uncertain how fast can we make the rubber hit the ground, to speak. Pumps have done a very good job in 2025 and that can't continue.

We look at it and saying 4 to 7. I think that's also even by comparing to peers and so on, a good ambition.

Then let Tony maybe comment a little bit on the Service business line, where we are closer to the same level as we saw in 2025.

Absolutely. There 2 to 5%.

Of course with Services, our baseline is a bit higher than with the Pumps, and then it means that in percentage-wise, it gets more difficult to grow the business faster. Then in DKK, of course the growth is high even if we reach a 4% level as last year.

The let's say level from last year is the full-year figure for around 4%, and based on that, we see that a similar development would happen this year within the range of 2 to 5%. We have a solid plan in place that how to make it happen by using our resources and investments.

Sounds great. Thank you so much for the answers.

Great. Good morning.

Thanks for taking my questions. Two if I can.

Maybe first to Toni, as you step into the CEO role and based on your experience at FLS for the past eight months, could you outline a little bit where you'd like to put a particular focus as you step up on improvement or other efforts, and any changes of emphasis you'd already like to highlight for us at this early stage? Thank you.

Thanks for that. One of activity of course which is visible in the plans and which is also close to my background is M&A.

I have been doing a lot of M&A activities in the past in my previous roles, and maybe that's one flavor and that's of course then part of the journey this year and will be then part of the plan which we will then release as part of the Capital Markets Day. That's one focus area.

Now the transition of the company into a pure-play mining allows us to do that. We are in a financial healthy position after the divestments, and now the timing is right now to make the M&A activities active and start executing.

Therefore, that will be one big part. Then of course, I have certain products background from the past, and one part of our journey needs to be that we get the Products business to the black figures, and of course I will be working with our Products business line team to make that happen then and supporting them.

Excellent. Maybe second question to follow up, you talked about one to two targets potentially converting this year.

Are there particular areas of the business where you're seeing struck opportunities or progress on those targets, or is it across the different areas you previously highlighted?

At the moment, we are screening the targets I would say across the business lines. All business lines are active and evaluating opportunities from the marketplace, and then we have quite many opportunities in the pipeline in different phases.

With the pipeline activity, we assume that a couple of cases could land this year. As Roland mentioned previously, of course there is uncertainty with the M&A cases, but the activity level is rather good, I would say, and based on that, we believe that some cases will take place.

Great. Thank you.

Thanks, and also from my side, welcome, Tony. Looking forward to working with you.

A couple of questions from me also. Roland, you made some comments on the networking capital and certain of the movements being affected by the high revenue in Q4.

I wonder if you can give some outlook on the expected networking capital development in 2026?

Thank you for that, Lars. How we see it play out is, of course, the Q1 will be an aggressive cash collection quarter.

That's one thing. Then secondly, both the Service business line, but also the Pump business have plans to build up, in a controlled way, inventories as we move forward.

That's two opposite moving parts in the networking capital. Working progress and prepayment from customers are a little bit depending on when, how we get orders in and how they are structured and so on.

I think guidance-wise, we should expect that networking capital is at a new level now, around the 2.4 billion, as we move through 2026.

Okay. Then I had a question about CapEx guidance.

Yeah. That was a good one, Lars.

Internally, we're trying to lower the level a little bit, but you should expect 2 to 3% of revenue in CapEx.

That is very clear. Then I had a question to the Service order intake in Q4, because it's the highest in eight quarters.

Of course, I know there's also volatility here, but I wonder what drove it? Is it new customers, is it increased scope on existing service contracts?

I know what you put into the order intake is the revenue generated on a contract the next 12 months. I wondered some color on that, and maybe if you could also comment on whether this improvement is a new higher run rate or just a blip?

Thanks.

As discussed previously in the call, still continue to highlight the fact that it was just an individual quarter where we saw the jump, and there was transitioning of the orders from the previous quarters for sure. Then we received a bit more bookings due to the year-end activities which the customers were having.

Then of course, when the average level is calculated, that's then a balanced view and around 2.2 billion. Again, we would highlight that it's good to compare the average level to our forecasts for this year, and not looking at the individual quarter because especially the bigger project cases might go back and forth between the quarters and there's uncertainty with them, and the bookings are not as clear and stable as with the Service business.

Then on the other hand, when looking at the Service side of it with the upgrades and modernizations, there we might have some individual bigger upgrade orders, modernization orders, which might also cause some fluctuation between the quarters. The most stable business as such is definitely the PCV, the Pumps business, where the order intake is at the stable level quarter-by-quarter.

All this fluctuation caused by the bigger cases, bigger modernizations, upgrades, that's then sometimes with the Service

business visible, especially in the year end. That's good.

Then a final question, if I may. I don't know to what extent you can answer, but Caserones made a revised feasibility study, of course ahead of that asset being traded just at the end of last year.

In the original feasibility study, FLSmidth was listed as supplier of all the equipment for the concentrator. Is that also the case in the revised outcome?

I think we can't comment on that, Lars. We can't comment on that.

That's fair enough. I had to try to ask.

Thanks a lot, guys.

Yes, thank you. A couple of questions from my side as well.

First question on the SG&A cost. If we look at SG&A cost before transformation and separation cost, it's been fairly stable for the past three quarters.

Should we expect this run rate going forward as well, or is there potential for another leg down on the SG&A cost?

Thank you for that, Christian. I think we should expect a bit further cost out, but it will come a bit slower.

Towards the end of this year, then we're done.

Okay. A slight decline throughout the year, is what you say?

Slight one, yes.

Understood. The second question is just on your other operating costs in the quarter.

You are writing down projects no longer in use. Can you elaborate on what these projects were?

That's a little bit of a clean up. We had different IT projects and so on.

In connection with the SG&A reductions we have done, there has been bits and pieces in the balance sheet also that we are writing down. It's small stuff, clean up type of thing.

Fair enough. Then just my last question.

Previously, Roland, you've been kind to help us a bit on cash flow from operations expectations. Where do you roughly expect that for 2026?

Roughly, the cash flow from operations, we'd say between 700 up to a billion. That's a good starting point.

Very clear. Thank you.

That was all for me.

Thanks a lot. Also welcome Toni from my side.

Most of my questions have been answered, but just one regarding the impairment on the tax asset, maybe one for you, Roland. Could these 600 million that you impair on the tax asset, is this due to a lower expectation of earnings the next 5 years, or is it more due to a lower expectation of being able to transfer tax payments from other countries into Denmark?

Thanks, Casper. It's a number of things, right?

Of course the macroeconomic and geopolitical uncertainty. Then secondly, it's also so that the European stock market authority have actually this year sort of emphasized that we should look at the usability of our tax assets, we have done that.

Then thirdly, we internally are moving our supply chain a little bit because US is currently imposing tariffs on everything that comes into US. If we're selling it via Denmark and then over to US, that's not a smart thing to do.

For a few operational reasons, things have being slightly delayed. Combination with the authorities' sort of, what shall I say, indication that it would be a good opportune year to revisit this, we have taken the decision to take this impairment now.

Our plans otherwise, ERP, principal company model, and so on, are moving forward. Our ETR will continue to go down as we have communicated, and we still expect it to be below 30% in 2027 and onwards.

There's no change to that. Then of course, this is an accounting impairment.

The underlying tax assets or deficits live forever. They are eternal, and there's no cash impact to this one.

Understood. Just to be crystal clear, can you sort of confirm that the tax asset impairment is not related to you having lowered your expectations for mining activity for the next 5 years?

Confirmed, yes.

Thank you.

to you all. Welcome, Tony.

Thank you for making the time. As per the last comment, I think you've pretty much ticked every box on my Q&A list.

May I come back to the question of organic growth drivers as you move the business to focus on growth and away from transformation? You've talked a little on inorganic and stepping up the M&A machine, but when you look across the business, I think, when I look at your Service growth target for this year, it incorporates some pricing assumption.

Maybe more detail on how you build up the organic growth assumption there, similar for Pumps side, and perhaps overall, how do you see your future prioritization of corporate resource to drive the organic growth? Thank you.

From the Service point of view, I would comment that the major difference compared to PCV, pumps, cyclones, and valves, is that the Service business line consists of a different mix of activities. Like said, we have upgrades, modernizations over there, site services, and spare parts, consumables, and so on.

It might be so that some of them are growing at a bit let's say faster rate than the others, and then the mix is around the forecast which we were providing. Like mentioned in the call, with the upgrades we are seeing much more fluctuation.

They are more like a Products business, and therefore this impact of course needs to be taken into account. Then as you have been seeing, we have been taking down and divesting certain businesses, and downscaling the Products side of it, of course that's to some extent impacting on certain site services which we are not doing anymore.

When taking all these aspects into account, we see this stable growth continuing, in line with last year, and the average should be very much in line with last year's figure. More details of course about the growth plans we will provide in the CMD presentations then later on in the autumn.

Of course in general, I can say that this year we are doing resourcing, facility investments, and so on, which will then help the Service business to be closer to the customer and to be faster with our service support.

Hi there. Hopefully, you can hear me.

My first question is around the ERP implementation that you've highlighted for this year, 100 million Danish krone cost. Is there any risk to your operational delivery of that ERP system being implemented this year?

Clearly, we've seen across a number of companies where ERP implementation has created a knock-on effect in terms of their capability to deliver.

Our approach is that we go very focused ahead and we build a pilot implementation. We test it out before we move on to the next one.

There may be a disruption here and there, but it will never impact the full business line. We'll find out and then we back off and use whatever we have until it's fixed.

It's not the intention to do a massive roll-out. We would also be spending more than 100 million per year if we rolled out an entire region in one big bang and so on.

We're moving forward exactly to avoid any operational disruptions.

Okay. Wonderful.

Then a follow-up question, just in terms of your R&D spend, that looks to have fallen from 273 million Danish krone down to 184. Are you just being more focused in terms of where you're spending R&D now?

Of course we continue developing our products and services. Some of the work is happening actually with the customer deliveries, so that's not classified as R&D, which is of course impacting on the budget.

Then on the other hand, as you have been seeing, we have been divesting quite many businesses. That's also impacting on our R&D budget when moving forward.

Then what we have been seeing successful is that when we do this collaboration with the customers in the customer interface and then developing the service solutions and technologies in connection with them, not as a separate R&D projects, that has been very powerful. A lot of costs is then allocated also to the customer projects and service deliveries which we are providing to our customer base.

Maybe that explains some of the differences. One example is the major Indian project which we are doing this way when developing the solution to the end customer.

Okay. That's very clear.

Thank you.

Hello gentlemen. Klaus Kehl from Nykredit, and yeah, first of all, also welcome to you, Tony, and welcome to FLS and Denmark.

Then a couple of perhaps questions to Roland. If we look at the discontinued operations, there's a big loss here in Q4 and also for the full year due to the Cement.

Just to be clear, is it reasonable to expect a clean sheet on that line in 2026? Sorry to interrupt you,

Can you hear me? Okay.

Thank you for that, Klaus. You're asking whether the loss on discontinued business means that we're now done with that and there won't be any noise in the numbers in 2026, is that the question?

That's the question, yes.

Yes. That's the intention.

We have provided for what we think is going to be the final loss, and we have also provided for the so-called transfer service agreement we have with the supplier in terms of running the IT platform until they can take over and so on. That is expected to be roughly what we need.

If there's small bits and pieces here, then most likely we'll take it in the continued business and it won't be disruptive in any shape or form. That's the intention.

Perfect. Then you mentioned the tax rate, effective tax rate below 30% in 2027.

Do you have any comments about the tax rate here in '26?

No, I'll refrain from that, but last year was 34 and then we have 33, right, and then it's coming down to below 30 in 2027. Let's see where we go in 2026.

Great. Thank you very much.

Yes, a very quick one. When you talked about cash flow from operations this year of 700 million to a billion, just to make clear, does that include the gain from the sale

of the headquarters? No, it doesn't.

Okay. Very clear.

Thank you.

All right. Thanks for everyone for joining the call.

It was a pleasure having you with us today. A few closing remarks from our perspective.

As mentioned, we have a very solid year behind us. The company has been doing several strategic improvements, and based on them, we are now in a very good position to start the growth journey in the company's new phase of working.

Now entering in this year, we have a very good chance to gain more business, especially with our PCV, Service business line, and then get to the black numbers with our Products. All in all, a good situation for FLS and we are looking for the growth journey.

Thank you for joining us.