Q3-REPORT

1. Q3-REPORT Presented by Peter Assam, CEO 21 November, 2001

2. FLS’ Three Business Areas • The F.L.Smidth Group offers service, machines and entire production lines to the cement and minerals processing industries world wide. FLS miljø supplies biomass and desulphurisation equipment, high-tech boilers and air filters for power plants and process industry. • FLS Building Materials’ products are based on cement with global production of white cement and densit and regional activities in grey cement, concrete and fibre cement. • FLS Aerospace offers nose-to-tail aircraft maintenance with lease and repair of components. Restructuring for Growth and Profit

3. Agenda • Spring 2000 to Fall 2001 • improving earnings platform and transparency • Business Areas • mixed market conditions and outlook • Group Figures • operational earnings and CFFO improve in Q3 • 2001 and onwards • Focus, rightsizing and cutting debt • Down revision of EBIT 2001 – Forecast • Adjusting to collapse in demand and no/low growth scenario 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 • Sale of property, CPH • 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

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 • Sale of property, CPH • Improved Earnings Platform • Building Materials • investing in new white cement capacity in Sinai and Malaysia • new management to turn around US concrete operation • Phillippine ready mix operation closed • exit concrete products in US and Spain • Unicon’s Norwegian acquisitions fortifie lead position in Scandinavia • DEH reorganises from country set up to functions • Unicon focusses on ready mix concrete Restructuring for Growth and Profit

6. 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 • Sale of property, CPH • 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 to post 11 September demand Restructuring for Growth and Profit

7. F.L.Smidth Group Restructuring for Growth and Profit

8. F.L.Smidth Group Restructuring for Growth and Profit

9. FLS miljø Restructuring for Growth and Profit

10. FLS miljø Restructuring for Growth and Profit

11. FLS Building Materials Restructuring for Growth and Profit

12. FLS Building Materials Restructuring for Growth and Profit

13. FLS Aerospace Restructuring for Growth and Profit

14. Reasons for Q1-Q3-Figures - Earnings and CashFlow • 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 • Q3: • satisfactory order intake despite weak markets Restructuring for Growth and Profit

15. Reasons for Q1-Q3-Figures - Earnings and CashFlow • 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 • Q3: • slowing order intake • order execution off track on UK project Restructuring for Growth and Profit

16. Reasons for Q1-Q3-Figures - Earnings and CashFlow • 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 • Q3: • US and Polish stand still fuels down revision Restructuring for Growth and Profit

17. Reasons for Q1-Q3-Figures - Earnings and CashFlow • 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 • Q3 • Continuous improvement untill 11 September Restructuring for Growth and Profit

18. FLS Group Profit and Loss Account Restructuring for Growth and Profit

19. 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, Prune Balance Sheet and Cut Debt Restructuring for Growth and Profit

20. 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, Prune Balance Sheet and Cut Debt Restructuring for Growth and Profit

21. Down Revision of EBIT 2001 – Forecast • Forecast is lowered to DKK 200mill: • FLS Aerospace’s earnings fall DKK 400mill from lower revenue and restructuring to subdued volume • FLS Building Materials suffers from US slump and Polish stand still • FLS miljø increases deficit due to higher execution costs and slowing order intake • F.L.Smidth Group’s order back log and intake is intact with order execution now on track • Unspecified DKK 100mill mirrows significant uncertainty and risks on wide range of items • Board recommends a dividend of DKK 0 for 2001 Restructuring for Growth and Profit