DEN NYE STRATEGI

FLS INDUSTRIES A/SH1 - report 2001

Presented by Peter Assam, CEO Birgitte Nielsen, CFO

August 28, 2001

Restructuring for Growth and Profit 2

Agenda

Spring 2000 to Summer 2001 improving earnings platform and transparency

Business Areas mixed market conditions and outlook

Group Figures operational earnings increase

2001 and onwards focus and rightsizing

Unchanged EBIT 2001 – Forecast backed by restructuring, intake and back log

Restructuring for Growth and Profit 3

Improving Earnings Platform and Transparency

Focus and Transparency buy back of 50% of Aalborg Portland merger of Aalborg Portland Holding and FLS Industries sale of RMIG

Improved Earnings Platform

Engineering integration of F.L.Smidth & Co. and Fuller Company FLS miljø’s new CEO continues rightsizing FLS miljø Bulk Handling to FFE Bulk Handling ”Waste to Energy” closed acquisitions broaden F.L.Smidth Group’s product range and

strengthen turnkey skills reorganising FLS miljø’s APC into one global business unit

Restructuring for Growth and Profit 4

Improving Earnings Platform and Transparency

Focus and Transparency buy back of 50% of Aalborg Portland merger of Aalborg Portland Holding and FLS Industries sale of RMIG

Improved Earnings Platform

Building Materials investing in new white cement capacity in Sinai and Malaysia new management to turn around US concrete operation exit concrete products in US and Spain Phillippine ready mix operation closed Unicon’s Norwegian acquisitions fortifie lead position in

Scandinavia DEH reorganises from country set up to functions

Restructuring for Growth and Profit 5

Improving Earnings Platform and Transparency

Focus and Transparency buy back of 50% of Aalborg Portland merger of Aalborg Portland Holding and FLS Industries sale of RMIG

Improved Earnings Platform

Aerospace new international management team Formula One programme reduces turntimes and cuts

man hours per check less investments improve efficiency in Rotables falling overheads and pay roll

Restructuring for Growth and Profit 6

F.L.Smidth Group

DKKm Turnover

2,55841594177118

3,174

Order Intake* Order backlog*

5,504834235

2110494

7,180

Cement 2,881Mining 583Pyro processing 165Chemical and petrochemical 9Power generation 99Other 214Total*sales prices

3,881

H1 2000 H1 2001

3,174541

(103)(517)(538)

Net turnover 3,555Gross profit 454EBIT (195)Cash flows from operating activities (270)Cash flows from operating and investing activities

(286)

Restructuring for Growth and Profit 7

FLS miljø

DKKm Turnover Order Intake* Order backlog*

Biomass power generation 24 33 223Fossil power generation 333 365 1,386APC 412 327 476Total*sales prices

769 725 2,085

H1 2000 H1 2001

Net turnover 809 769Gross profit 80 75EBIT (97) (66)Cash flows from operating activities

(230) 118

Cash flows from operating and investing activities

(248) 103

Restructuring for Growth and Profit 8

FLS Building Materials

DKKm APH H1 2000

FLS Building

Materials H1 2001

Net turnover 2,521 2,839Gross profit 1,117 1,168EBITDA 438 393EBIT 201 111EBT 1,728 24CFFO 170 83CFFI 282 (195)

Restructuring for Growth and Profit 9

FLS Building Materials

DKKm Aalborg Portland

Aalborg Portland

Unicon Group

Unicon Group

Dansk Eternit

Holding

Dansk Eternit

Holding

Densit Densit

H1 2000

H1 2001

H1 2000

H1 2001

H1 2000

H1 2001

H1 2000

H1 2001

Net turnover

811 798 1,265 1,562 596 467 54 71

Gross profit

410 396 518 632 161 99 29 36

EBITDA 203 207 178 181 81 2 2 8

EBIT 133 141 50 18 43 (44) 0 7

Restructuring for Growth and Profit 10

FLS Aerospace

H1 2000 H1 2001

Net turnover 1,669 1,800Gross profit 2 380EBIT (305) 105Cash flows from operating activities

(257) (2)

Cash flows from operating and investing activities

(484) (68)

Restructuring for Growth and Profit 11

Reasons for Q1/Q2-Figures - Earnings and Cash Flow F.L.Smidth Group Deficit from Weak US-Market and

Higher Execution Costs time lag between slow demand from US-market and

reaction hereto Q2:

order intake, back log and target intact despite US slow down

largest order in European market acquisitions broaden product range and strengthen

turnkey skills FFE Minerals’ high performance reflects restructuring after-market sales maintain growth target

FLS miljø’s Order Backlog End 2000 Was Poor order intake Q1 was below expectations cost base matches order potential in next months

Q2: order intake and outlook improves in US and Europe business tracks new management’s plan

Restructuring for Growth and Profit 12

Reasons for Q1/Q2-Figures - Earnings and Cash Flow

FLS Building Materials Usually Posts Deficit in Q1 Dansk Eternit suffers from DEF 1994’s receivership sales reflect normalised weather conditions

Q2: Dansk Eternit’s sales slip further in Denmark US slowdown dampens Unicon’s profit in turnaround cement export offsets lower demand in Denmark international price pressure on white cement down revision of earnings forecast

FLS Aerospace Improves Performance in High Season

Q2 third consecutive quarter with EBIT in black strong USD hikes costs in Component Management higher productivity and renegotiated contracts

increase earnings expectations

Restructuring for Growth and Profit 13

FLS Group Profit and Loss Account

DKKm Q1 2000 H1 2000 Year 2000 Q1 2001 H1 2001

Net turnover 4,295 9,169 19,205 4,195 9,014

Gross profit 1,020 1,893 4,471 1,090 2,287

EBIT (80) (420) (458) (76) 6

Net result 1,528 1,117 843 (125) (143)

CFFO (731) (621) (26) (522) 662

CFFI 308 (288) (2,500) 131 (107)

Restructuring for Growth and Profit 14

2001 and onwards Optimise across F.L.Smidth Group

speed up after-market sales - spares and service improve turnkey and civil engineering skills focus on cement and minerals segments

FLS miljø Grows Three Segments marketing technologies via international partnerships use core knowhow in new businesses on ad hoc basis

Harvest Synergies between Engineering Companies Grow Key Product Areas in FLS Building Materials

expand global production capacity in white cement consolidate industry and specialise fibre cement plants

- expand product range transfer “best practise” in Unicon’s One Company

programme - turnaround US concrete operation

leverage Densit’s off-shore orders Optimise Strategic Value of FLS Aerospace Divest Non-Core Assets and Prune Balance Sheet

Restructuring for Growth and Profit 15

Unchanged EBIT 2001 – Forecast of DKK 0.7bn

Forecast Is Backed by:

F.L.Smidth Group’s order back log and intake is intact with order execution now on track

F.L.Smidth integration adds to earnings

FLS miljø bottoms out earningswise with improved order book and outlook

Fibre cement sales in Denmark stabilise

Full utilisation of white and grey cement capacity

Norwegian ready mix earnings mirror a succesfull integration

FLS Aerospace’s operating profit outperforms previous expectations