FLSmidth presentation from the AFCM conference in Vietnam, 21-24 April 2015: FLSmidth Operation and Maintenance concept

1. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Operation &
Maintenance
O&M Introduction
24th AFCM in Hanoi, Vietnam, 2015.
Peter Björk
Business manager
FLSmidth A/S
The Sustainable Solution

2. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
O&M Mission:
” Build high performing
organizations through which we
improve the performance of
our customers’ plants”
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FLSmidth Vision:
” We will be our customer’
preferred Full Service Provider
of sustainable minerals and
cement technologies”

3. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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Client supplies:
-Raw materials
-Fuels & utilities
-Permits
FLSmidth:
-Staffs the plant during
commissioning period
-Manages, operates,
and maintains the plant
under long-term
contracts
-Supplies consumables
and spare parts
Client:
-Marketing, Selling and
distribution of cement
O&M Concept in Cement
• Service covering from quarry to
packing cement
• Best technical expertise and
superior Operation & Maintenance
• Risk-taking
• Guaranteed production
• Performance paid
• Produce quality cement
• Rapid production ramp-up

4. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
OUR ORGANIZATION
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5. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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O&M
CementCustomer Service Product CompaniesMineral Processing
Sustainable & value adding solution backed by
vision and mission statements

6. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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We have 18 O&M contracts around the world
and employ almost 4,000 employees

7. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
In the cement industry, we operate
13 production lines, for 8 customers, in 6 countries
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8. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
OUR SOLUTION
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9. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
O&M Partnership
Complete staffing of the plant
Formal and on-the-job training
Spare parts and consumables
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Plant Management
Key managers
Implementation of FLS’s O&M system
Technical Management
Managers and section leaders
Spare parts and consumables
We have three collaboration models
 All of them are linked
to production and
efficiency guarantees
 All of them are paid
against actual
performance

10. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Your main responsibility will be
marketing, selling, and distribution of cement
FLSmidth is responsible for:
 Recruiting, hiring, and training of staff
 Transportation, accomodation, meals
 Supplying all spare parts and
consumables
 Implementing a complete plant
management system
 Implementing an electronic
maintenance and parts inventory
management system
 Safety, Health, and Environment inside
the plant
Client is responsible for:
 Provide production inputs: raw
materials, fuels, electric energy, etc.
 All permits and licenses
 Construction and maintenance of
permanent facilities
 Disposal of by-products and waste
 Plant security
 Marketing, selling, and distribution of
cement
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11. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
We guarantee the performance as
per contracted capacity and efficiency*
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Clinker/Cement
Production
Fuel Consumption Electrical
Consumption
Annual production kcal / kg clinker kWh / ton cement
* Which are verified during the Performance Guarantee Tests (PGT)

12. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
• Invoiced amount vs. actual amount
• Bonus/penalty on production vs. annual target
• Loss/savings on energy, versus annual target
Pre-Operation Phase
~ 6 months
Highest of:
1. Monthly fixed fee
2. Actual Production x PPT
Monthly payment:
1. Incentive Payment: actual production x PPT
Operation & Maintenance
• Advance payment
• Performance guarantee by
FLSmidth
• Fixed monthly payment or
performance payment
Personnel & Support
O&M
~ 5 years
Price Per Ton (PPT)
Price and payment models
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Monthly fee

13. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
HOW DO WE ACHIEVE
OUR RESULTS?
AND WHAT IS IN IT FOR
YOU?
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14. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Our services are supported by unique strengths
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FLSmidth
Know-How
On-Site
Specialists
Smart
Systems
Spares
& Services
Technical
Training
O&M Value Proposition
130+ years
of experience
A high-
performing
organization
FLSmidth
Institute
Intelligent
Collaboration
Environment
Extensive
Service
Network

15. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
What’s in it for You?
We have unsurpassed technical competences
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Original Equipment
Manufacurer
Experienced
Operator
FLSmidth
Know-How
Cement Technology Center
Dania R&D and Testing Center

16. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
 We create strong local teams with access to
our global support network
 We adhere to international best practices:
 Safety, Health and Environment
 Asset Management
 Human Resources Management
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What’s in it for You?
Our basis is the high-performing organization
On-Site
Specialists

17. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
 We collaborate with local education institutions
 We ensure knowledge-transfer and best practice
implementation
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What’s in it for You?
FLSmidth Institute ensures a skilled workforce
Technical
Training

18. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
What’s in it for You?
Support from FLSmidth after-sales services
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Spares
& Services
 Genuine spare parts for the entire plant plus access to
local inventories, workshops, laboratories, training
facilities, and technical specialists

19. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Smart
Systems
What’s in it for You?
Smart Systems
For Raw Mill, Kiln, Cooler, Cement Mill
On-line CBM
(Condition Based Monitoring)
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20. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Smart
Systems
What’s in it for You?
Smart Systems
For Raw Mill, Pyro Processing, Cement Mill
PxP Process Expert
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21. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
Smart
Systems
What’s in it for You?
Smart Systems
FLSmidth PlantGuide BI™
KPI Dashboards
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22. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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What’s in it for You?
Higher and sustained performance with our
Intelligent Collaboration Environment (ICE)
Smart
Systems
 24/7 Support
 Remote monitoring and supervision
 Process optimization
 Performance Management

23. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
THE BENEFITS
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24. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
We provide you cost certainty
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25. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
We can achieve a rapid production optimization
and maximize your return on investment
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Increased Profit from O&M Service
FLSmidth O&M Service
Typical Operation
Utilization
Ramp-up Operation
100%
0%
time

26. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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We give you peace of mind and
let you focus on growing your business
 Complete and balanced package
 Motivated and high-performing organization
 Compliance with world-class SHE standards
 Production and efficiency guarantees
 Cost certainty and payment linked to performance

27. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
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Since 1882, FLSmidth has offered
customers one source for a full range of
requirements.
The unique Design, Build and Operate
certainty solution from FLSmidth
provides you with the complete lifecycle
of your investment - delivering quick and
sustained profitability from your cement
plant that allow you to focus on your
core business - selling the cement.
Design, Build and Operate
“We ensure the lifecycle of your investment”

28. The information contained or referenced in this presentation is confidential and proprietary to FLSmidth and is protected by copyright or trade secret laws.
FLSmidth facilitates financing
 FLSmidth does cooperation with international
financial institutions and banks, including the
Danish Export Credit Agency (EKF), capable
of financing projects worldwide.
 FLSmidth can offer minority co-investments
along with the Danish Investment Fund for
Developing Countries (IFU).
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