18 August 2005

Interim Report Q2 2005

Agenda

1. Main conclusions Q2 2005

2. Highlights • Financial• Cement• Minerals• Other activities

3. Guidance 2005

4. Strategy update

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)

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

Order intake

0

500

1,000

1,500

2,000

2,500

3,000

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Order intake on a quarterly basis (DKKm)

Cement Minerals Other

Order backlog

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Order backlog on a quarterly basis (DKKm)

Cement Minerals Other

Financial highlights Q2 2005 Continuing activitiesDKKm (YTD) Q2 2004 Q2 2005 H1 2004 H1 2005 Change H1

Net turnover 2,781 2,474 4,893 4,683 -210

EBITDA (27) 167 22 232 +210

EBIT (70) 126 (63) 151 +214

EBT (93) 188 (103) 238 +341

Tax 18 (21) 19 (32) -51

Earnings (75) 167 (84) 206 +290

CFFO (96) 483 (226) 607 +833

CFFI (13) (32) (11) (88) -99

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

Financial highlights 2nd quarter 2005

  (DKKm)EBIT Q2 EBIT H1

2004*) 2005 change 2004*) 2005 change

FLSmidth (14) 44 +58 (6) 59 +65

FLSmidth Airtech (36) 2 +38 (57) 3 +60

Pfister 16 9 -7 26 13 -13

Ventomatic 3 16 +13 9 25 +16

MAAG Gear (14) 3 +17 (9) (3) +6

Cement (45) 75 +120 (37) 97 +134

Minerals (3) 27 +30 5 28 +23

Dansk Eternit Holding 7 26 +19 11 39 +28

Densit 1 1 0 (2) (1) +1

Other (elim. + parent + etc.) (30) (3) +27 (40) (12) +28

Continuing activities (70) 126 +196 (63) 151 +214

FLS miljø (8) 1 +9 (10) 1 +11

Other (sold companies, etc.) 156 (2) -158 217 (2) -219

Total 78 125 +47 144 150 +6

*) Restated according to IFRS

Turnover

0

500

1,000

1,500

2,000

2,500

3,000

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Turnover on a quarterly basis (DKKm)

Cement Minerals DEH

-200-150

-100-50

050

100150

200

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

EBIT on a quarterly basis (DKKm)

Cement Minerals DEH

EBIT

-402

Balance sheet

DKKm Q2 2004 Q2 2005 End 2004

Intangible assets 193 215 197

Tangible assets 1,287 1,202 1,147

Financial fixed assets 335 394 385

Current assets 9,682 6,088 6,463

Total assets 11,497 7,899 8,192

Equity 2,603 2,394 2,629

Liabilities 8,894 5,505 5,563

Total liabilities 11,497 7,899 8,192

Solvency 23% 30% 32%

SOLGT

SOLGT

FLSmidth & Co.

Cement Minerals

FLSmidth

FLSmidth Airtech

FLSmidth Materials Handling

FLSmidth Customer Services

Pfister (feeders)

Ventomatic (packers)

MAAG Gear (gears)

FFE Minerals

Business areas

FLSmidth AutomationOther activities

FLS miljø being closed down

Dansk Eternit Holding (fibre cement products)

Densit (ultra-high strength cement-based products)

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

Cement

FLSmidth

FLSmidth Airtech

FLSmidth Materials Handling

FLSmidth Customer Services

Pfister (feeders)

Ventomatic (packers)

MAAG Gear (gears)

FLSmidth Automation

FLSmidth & Co.

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 R&D New products and services

H1 20053,264

97117

H1 20043,741

(37)(51)

DKKm YTDNet turnoverEBITEBT

New global contracted cement kiln capacity on a yearly basis 1980-2006

010203040506070

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Est

200

5

Est

200

6

Million tonnes

Average 1980 – 2004; 26m tonnes per year

Positive trends in demand for new kiln capacity continue => 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

New global contracted cement kiln capacity excl. China

Minerals

FLSmidth & Co.

Minerals

FFE Minerals

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

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

H1 2005803

2831

H1 2004705

52

DKKm YTDNet turnoverEBITEBT

Other activities

FLSmidth & Co.

Other activities

Dansk Eternit Holding (fibre cement products)

Densit (ultra-high strength cement-based products)

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.

Dansk Eternit Holding

Highlights H1 2005

Stormy weather in Scandinavia considerably increased demand for corrugated sheets in Q1 and Q2=> 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

H1 2005566

3938

H1 2004483

112

DKKm YTDNet turnoverEBITEBT

Fives Lille(FCB, Pillard, Solios)

702

ThyssenKrupp(Polysius)

Outokumpu(Technology)

39,342

7,136

3,976

67.7

Metso(Minerals)

MFC (KHD)

446

49.2

423

39.1

49.0

FLSmidth

1,979

1,343

Suppliers of equipment and services to the global cement & minerals businesses

Total sales

Sales to cement and minerals

(All figures in million EUR in 2004)

1,312 178 127

The global competition in value

409

Sinoma

423

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)

Business area guidance 2005

■ CementTurnover 2005 ~ DKK 7.5bnEBIT 2005 > EBIT 2004=DKK 139m (restated)

■ MineralsTurnover 2005 ~ DKK 2bnEBIT 2005 >>EBIT 2004=DKK 23m (restated)

■ Dansk Eternit HoldingTurnover 2005 ~ DKK 1bnEBIT 2005 > EBIT H1 2005=DKK 39m

■ OverheadsEBIT 2005 ~ DKK -15m

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.

Questions

Interim Report Q2 2005