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12 March 20091

FLSmidth & Co. A/S

Well-prepared and well-placed for the future

DI International Business Network5 March 2009

Bjarne Moltke Hansen,Group Executive Vice President

12 March 20092

Today’s topic

� FLSmidth in brief

� Cement: now and outlook

� Minerals: now and outlook

� Focus areas 2009

� R&D Investments

� Growth in Customer Services

� Long term growth and earning prospects

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12 March 20093

FLSmidth in brief

� FLSmidth is a leading supplier of equipment and services to the global cement and mineralsindustries

� Listed on OMX Copenhagen Stock Exchange

� >50% of revenue generated in emerging markets

� 11,500 employees worldwide

12 March 20094

FLSmidth & Co. in brief

Business model

• One source – One partner concept• In-house engineering project centers in Denmark, India and USA

• Most manufacturing is out-sourced• Low or even negative working capital due to prepayments from customers

Business Areas

Cement Minerals

Cembrit

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12 March 20095

Cement Minerals

ProductsProjects

ProductsProjects

Customer Services

Strategic business areas

12 March 20096

Segment overview 2008

Revenue- by country category

Revenue- by region

Asia

29%

North

America

19%

Europe

19%Africa

14%

South

America

14%

Australia

5%

High-income

countries

33%

Developing

countries

67%

� Developing countries are becoming increasingly important and now accounts for 2/3 of revenue

� Revenue is more or less evenly distributed between 6 continents. Australia is likely to become more important in future

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12 March 20097

Cement capacity – replacement need

Source: Exane BNP Paribas

50% of the installed cement capacity is 25-50 years old and needs to be replaced or modernised

12 March 20098

But: Déjà vu!

Global cement need < capacity!

Source: Exane BNP Paribas

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12 March 20099

1977

basis year

Global BNP growth ~ 2.9 % in the same period

Confirms ratio of 1.2 for cement vs. BNP growth

New cement kiln capacity in future

~ 25-50 mtpy

in 2009

Average duration between high points:

7 years

12 March 200910

USA

Africa / Middle EastIncome from natural resourcesInfrastructure projectsExport opportunities

CIS countriesOld technologyIncome from natural resourcesInfrastructure projects

ChinaEconomic growthOld technology

IndiaEconomic growthUrbanisationIndustrialisationInfrastructureprojects

IndonesiaGrowing population

Latin AmericaIncome from natural resources

Cement – Potential markets

Europe

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12 March 200911

Mining Capex 1978-2007- cyclical, but on an upward trend

12 March 200912

Mining equipment suppliers

Exploration DevelopmentExtractionMaterials Handling

Crushing,Grinding & Sizing

Concentra-tion

Refining

Exploration for mineral resources

•Remote sensing

•Geophysical /geochemical tests

•Samples

Feasibility studies

Drilling and modelling of the ore body

Selection of appropriate mining technique

Capital investment in mine infrastructure

Mining of the ore body

Rock breaking

Surface mining

Underground mining

Mined minerals transported to processing site

Use of loaders, trucks, trains, at the face mining systems and conveyors

Materials are crushed and ground to achieve finer particles

Particles sized for optimum recovery of minerals specie

Flotation, leaching, sedimentation and filtration are used to increase the mineral content to an economic level

Refining to increase concentration of minerals further

Key techniques:

•Pyro-metallurgy

•Electro-winning

Source: Morgan Stanley, FLSmidth

FLSmidth Minerals

Metso Minerals

Outotec

Sandvik

Atlas Copco

Boart Longyear

Terex

Astec

Komatsu

Joy Global

CAT

Bateman

Bucyrus

Furukawa

Typical mining site plant

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12 March 200913

Material handling – a good example

FLSmidth KOCH MVT

Stacker/Reclaimer systemsShip Loading/Unloading

systemsConveying solutionsComplete materialsHandling facilities

FLSmidth Pneumatic Transport

Pneumatic bulk conveying

FLSmidth KOVAKO

Pneumatic ship unloadingStorage equipment

FLSmidth Conveyor Engineering

Cross countryconveying systemsIn-plant conveyors

Belt feeders

FLSmidth Möller GmbH

Pneumatic conveyingsystems

FLSmidth RAHCO Inc.

Mobile conveyorsPortable conveyorsRadial stackers

12 March 200914

Order Intake 2008 by region and type of product

Minerals

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12 March 200915

Strategic focus areas in 2009

� Steer safely through a period of difficult market conditions and growing uncertainty

� Pursue specific opportunities within Minerals and Customer Services

� Special focus on optimising working capital and CFFO

� Continued integration of Cement and Minerals

� Cost reductions and organisational restructuring

� Increased investments in R&D

� Continued development of Indian centre in Chennai

12 March 200916

R&D at FLSmidth

The goal of the R&D initiatives at FLSmidth is to launch at least one newmain machinery or process invention or improvement every year

R&D Centre Dania, at Mariager Denmark� The world's largest experimental facility for cement production

technology, incl.:

– Physical Laboratory– Chemical Laboratory– Pilot testing facility– Large pilot plants– Small test stands

� Used also by Automation, Airtech and Minerals� In Chennai, India a supporting R&D Centre

has been established 145 143

169

210

268

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009B

R&D investments (DKKm)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

R&D as pct. of revenueR&D investments

R&D as pct. of revenue

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12 March 200917

Customer Services Target: Revenue to grow 10-15% p.a.

DKKm 2007 2008 Growth

Cement

Order intake 3,323 3,200 -4%

Revenue 2,380 3,060 +29%

Minerals

Order intake 1,924 2,954 +54%

Revenue 1,609 2,371 +47%

Group

Order intake 5,169 6,073 +17%

Revenue 3,929 5,360 +36%

Customer Services 12M trailing revenue

-

1,000

2,000

3,000

4,000

5,000

6,000

Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008

Cement

Minerals

Group+36%

Decline in Cement (Customer Services) order intake in 2008 is due to receipt of an O&M order in 2007

12 March 200918

Customer ServicesTwo industries – one service approach

Minerals Projects Cement Projects

Customer Services

• Parts• Field Personnel• Services• Back Office • Manufacturing• Inventories• O&M

• Quarry• Crushing• Transport• Grinding• Pyro OR -• Separation

Then -

• Quarry• Crushing• Transport• Grinding• Pyro • Grinding

Then -

OPERATE - MAINTAIN – IMPROVE

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12 March 200919

New avenues of growth in Customer Services

New challenges open exciting new avenues of growth

� Operation and Maintenance (O&M) services

– FLSmidth to assume responsibility for the entire plant operation

� Increasing focus on the entire supply chain management

� Global awareness of the effect of fossil fuel burning,

forcing new focus on alternative fuels solutions

� Basic upgrade projects

� New combinations of our existing products and services

� Addressing customers’ increasing needs for training

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The alternative fuels initiative

� Launched in May 2007

� Mission- Ensure FLSmidth a leading position- Leverage market potential

� TodayA strong team of 35 consolidating and integrating alternative fuels globally in the FLSmidth Group

� Alternative Fuels is the dominating topic at cement conferences & seminars

A global trend

A good indication of future importance

A competitive parameter

A strong FLSmidth profile

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12 March 200921

Long term outlook unchanged� Urbanisation and industrialisation in developing countries are expected to generate

increasing demand for cement and minerals in future.

� Increased focus on R&D

� Strong Customer Services activity

� Outsourcing

� Strong Indian platform

� Despite unfavorable market prospects in the short term, FLSmidth faces the immediate future well-prepared and well-placed due to a solid order backlog and a strong financial, technological and commercial platform

12 March 200922

Questions