18 August 2005

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Interim Report Q2 2005
18 August 2005
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• Agenda
• Main conclusions Q2 2005
• Highlights
• Financial
• Cement
• Minerals
• Other activities
• Guidance 2005
• Strategy update

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• Main conclusions Q2 2005
• Continuing activities H1 2005
• Turnover DKK 4.7bn (H1 2004 DKK 4.9bn)
• EBIT DKK 151m (H1 2004 DKK -63m)
• EBT DKK 238m (H1 2004 DKK -103m)
• CFFO DKK 607m (H1 2004 DKK -226m)
• Order intake DKK 6.5bn (H1 2004 DKK 4.9bn)
• New global cement kiln capacity in 2005 (excl.
  China) Now expected at 55-60 mty (previously
  50-55mty)
• Guidance for 2005
• Turnover DKK 10.5bn (previously DKK 10bn)
• EBIT DKK 250-300m (previously DKK170-220m)
• EBT DKK 320-380m (previously DKK 220-280m)

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• Highlights year to date
• High market activity within all business areas
• Order intake up 34 in H1 vs. last year - Order
  intake from aftermarket up 15
• Order backlog record high
• Turnaround in FLSmidth Airtech, MAAG Gear and
  Dansk Eternit Holding progressing as planned
• No major negative project deviations so far this
  year

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Order intake
6
Order backlog
7
Financial highlights Q2 2005 Continuing activities
Turnover 4 decrease in turnover vs. last year
(H1 2004 was positively impacted by processing
of on one large order) EBIT/EBITDA positive
operational earnings in all business units in Q2
and positive development vs. last year in all
business units (except in Pfister where sales
and earnings were exceptionally high in H1
04)EBT positively impacted by revaluation of
shares in cement companies (DKK 27m) and by
sale of shares in Denerco Oil (DKK
36m)CFFO positive development in CFFO in Q2,
particularly in FLSmidth due to an increase in
prepayments from customers and reduction in
work-in-progress
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Financial highlights 2nd quarter 2005
) Restated according to IFRS
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Turnover
10
EBIT
-402
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Balance sheet
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Business areas
FLSmidth Co.
Cement
Minerals
FFE Minerals
FLSmidth
FLSmidth Customer Services
Other activities
FLSmidth Automation
Dansk Eternit Holding (fibre cement
products)
FLSmidth Materials Handling
FLSmidth Airtech
SOLGT
Densit (ultra-high strength
cement-based products)
Pfister (feeders)
SOLGT
Ventomatic (packers)
FLS miljø being closed down
MAAG Gear (gears)
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Cement
FLSmidth Co.
Cement FLSmidth supplies complete plants,
equipment, single machine units, spare parts,
know-how, services and maintenance to the global
cement industry. Specialised parts and
ma-chinery for cement plants are supplied by
FLSmidth divisions and product companies.
Cement
FLSmidth
FLSmidth Customer Services
FLSmidth Automation
FLSmidth Materials Handling
FLSmidth Airtech
Pfister (feeders)
Ventomatic (packers)
MAAG Gear (gears)
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Cement

• Highlights H1 2005
• Improved earnings vs. last year
• Significant improvement in cash-flow vs. last
  year
• High level of activity and order intake
• New global cement kiln capacity excl. China
  expected to reach 55-60mty in 2005

• Focus / Actions
• Off-shoring to India
• Procurement from low cost countries
• Optimising project execution
• Increased investments in RD
• New products and services

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New global contracted cement kiln capacity excl.
China
Average 1980 2004 26m tonnes per year

• Positive trends in demand for new kiln capacity
  continue gt 55-60 mty in 2005 excl. China
• Revival of old, and arrival of new market
  participants especially from China
• Increased level of activity in India, Middle
  East and USA

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Minerals
FLSmidth Co.
Minerals Projects and services to the global
minerals industries are provided and marketed
under the name of FFE Minerals. FFE Minerals is a
global supplier of machinery and engineered
process systems as well as operating and
maintenance services to the mining and minerals
industries as well as to the pulp paper
industries
Minerals
FFE Minerals
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Minerals

• Highlights H1 2005
• Substantial growth in order intake
• Order backlog record high
• Market very active in India and within Materials
  Handling
• One of two problem projects has been closed,
  whereas final settlement is outstanding on the
  second

• Focus / Actions
• Controlled organic growth
• Transformation from supplier of single equipment
  to supplier of engineered solutions
• Growth opportunities

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Other activities
FLSmidth Co.
Other activities For a transitional period of
some years, the Group will be the owner of the
two building material companies Dansk Eternit
Holding and Densit. Dansk Eternit Holding and
Densit are pursuing individual restructuring
strategies. Once these initiatives have resulted
in a stable and satisfying track record of
results, a sales process will be initiated. The
restructuring is progressing as planned and is
supported by positive markets.
Other activities
Dansk Eternit Holding (fibre
cement products)
Densit (ultra-high strength
cement-based products)
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Dansk Eternit Holding

• Highlights H1 2005
• Stormy weather in Scandinavia considerably
  increased demand for corrugated sheets in Q1 and
  Q2gt increase in turnover and earnings
• Expects a positive result in H2, but no further
  impact from the storms

• Focus / Actions
• Optimisation of production and distribution
  platform

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Suppliers of equipment and services to the
global cement minerals businesses
39,342
The global competition in value
7,136
67.7
Total sales
49.0
49.2
Sales to cement and minerals (All figures in
million EUR in 2004)
3,976
39.1
1,979
702
446
1,343
423
1,312
178
423
127
409
ThyssenKrupp(Polysius)
Fives Lille(FCB, Pillard, Solios)
Outokumpu(Technology)
Metso(Minerals)
MFC (KHD)
FLSmidth
Sinoma
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• Guidance 2005
• Upward revision of turnover and
• earnings forecasts
• Turnover DKK 10.5bn (previously DKK 10bn)
• EBIT DKK 250-300m (previously DKK 170-220m)
• EBT DKK 320-380m (previously DKK 220-280m)

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• Business area guidance 2005
• CementTurnover 2005 DKK 7.5bnEBIT 2005
  gt EBIT 2004DKK 139m (restated)
• MineralsTurnover 2005 DKK 2bnEBIT 2005
  gtgtEBIT 2004DKK 23m (restated)
• Dansk Eternit HoldingTurnover 2005 DKK
  1bnEBIT 2005 gt EBIT H1 2005DKK 39m
• OverheadsEBIT 2005 DKK -15m

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• Strategy update
• Ahead of plans to reach 5-EBT target in 2007
• Management will continue to focus on optimising
  business operations and will, in addition,
  increase its focus on investments in new products
  and services within Cement and Minerals.

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Interim Report Q2 2005
Questions