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FLSmidth to adjust its communication policy

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World Cement,

As of 7 July 2016, FLSmidth will adjust its communication policy regarding new orders, following the new EU Market Abuse Regulation. In the future, there will no longer be a specific monetary threshold for disclosing orders via company announcements. Only orders of strategic importance and orders with a significant impact on the financial results of the current financial year will be disclosed as company announcements. Additionally, disclosure will no longer be contingent on receipt of down payment but rather on contract signing only.

Since 2005, the company’s communication policy has been to disclose all orders above DKK 200m. However, during the past ten years, the Group’s revenue has increased significantly and at the same time has become much more dependent on activities related to Customer Service and Product Companies. As a consequence, individual large orders will only rarely have a large impact on the financial result for the year, and this on the share price. Going forwards, FLSmidth will make an individual assessment of the potential impact on the share price of any new contract and hence the need for disclosure based on a combination of size, strategic aspects and long-term potential.

Adapted from press release by

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