1 12 March 2009 1 FLSmidth & Co. A/S Well-prepared and well-placed for the future DI International Business Network 5 March 2009 Bjarne Moltke Hansen, Group Executive Vice President 12 March 2009 2 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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1
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
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
12 March 200920
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