1. DEN NYE STRATEGI FLS INDUSTRIES A/S Q1-report 2001 Presented by Birgitte Nielsen, CFO, May 29, 2001

2. Restructuring for Growth and Profit 2 Status spring 2000 to spring 2001 n FLS Aerospace’s new CEO starts reengineering n New Strategy and group management n Buyback of 50% of Aalborg Portland n Unicon steps into Norway fortifying its lead position in Scandinavia n New management to turn around US concrete operation n Integrating F.L. Smidth & Co with Fuller Company n FLS miljø Bulk Handling to FFE Bulk Handling

3. Restructuring for Growth and Profit 3 Status spring 2000 to spring 2001 n “Waste to energy” closed n Philippine r-m-c operation closed n FLS miljø’s new CEO continues rightsizing n RM Industrial Group sold n Jumbo dividend of > DKK 1bn + ½ NKT share n Merger of FLS Industries with APH n Potagua-stake reduced to 46% - free float of 54% n Slimming the Board to mirror focused portfolio n Exiting concrete products in US

4. Restructuring for Growth and Profit 4 Profit and Loss Account DKKm Q1 2000 Year 2000Q1 2001 Net turnover4,29519,2054,195 Gross profit1,0204,4711,090 EBIT-80-458-76 Net result1,528843-125 CFFO-731-26-522 CFFI308-2,500131

5. Restructuring for Growth and Profit 5 Order book F.L.Smidth Group

6. Restructuring for Growth and Profit 6 Reasons for Q1-figures - earnings and cash flow n FLS Building Materials usually posts deficit in Q1 nDansk Eternit suffers from DEF 1994’s receivership nFew winter storms mark down sales in Denmark n FLS miljø’s order backlog end 2000 was poor nOrder intake Q1 was below expectations nCost base matches order potential in next months n F.L.Smidth deficit from weak US-market and higher execution costs nPostponement of large F.L.Smidth orders ntime lag between slow demand form US-market and reaction hereto n FLS Aerospace improves performance in high season

7. Restructuring for Growth and Profit 7 2001 and onwards n Normalising earnings in FLS Aerospace noptimise strategic value in consolidating industry n Further rightsizing of FLS miljø nmarketing technologies via international partnerships n Optimising across three centres in F.L.Smidth nspeed up after-market sales nimprove turnkey and civil engineering skills n Grow key product areas in FLS Building Materials nexpand production capacity in white cement nconsolidate industry and specialise fibre cement plants ntransferring “best practise” in Unicon’s One Company nleverage Densit’s first off-shore orders n Streamline governance model Supreme Court ruling in October!