FLSmidth & Co.

Earnings Release • Feb 25, 2010

Annual Report for FLSmidth & Co. A/S 1 January - 31 December 2009

Annual Report for FLSmidth & Co. A/S 1 January - 31 December 2009

Company Announcement to the Danish Financial Supervisory Authority No.
02-2010, 25 February 2010

The Board of Directors and Group Management of FLSmidth & Co. A/S has today
reviewed and adopted the Annual Report for 2009. The Report is presented in
accordance with International Financial Reporting Standards, which is approved
by the EU, and additional Danish disclosure requirements for annual reports of
listed companies.

The Annual Report is accessible at FLSmidth's website:

www.flsmidth.com/reports The main conclusions of the Annual Report 2009:

Historically high EBIT ratio, profit and cash flow from operating activities in
2009

- In 2009, FLSmidth & Co. posted satisfactory developments in revenue, earnings
and cash flow from operating activities

- Revenue decreased 9% to DKK 23,134m in 2009 (2008: DKK 25,285m)

- Earnings before interest and tax, depreciation and amortisation and special
non-recurring items (EBITDA) decreased 6% to DKK 2,725m in 2009 (2008: DKK
2,911m)

- Earnings before interest and tax (EBIT) decreased 6% to DKK 2,261m in 2009
(2008: DKK 2,409m), corresponding to an EBIT ratio of 9.8% (2008: 9.5%)

- Earnings before tax (EBT) decreased 1% in 2009 to DKK 2,108m (2008: DKK
2,123m)

- Profit for the year increased 10% to DKK 1,664m in 2009 (2008: DKK 1,515m)

- Cash flow from operating activities increased 6% to DKK 2,470m in 2009 (2008:
DKK 2,324m)

- Cash flow from investing activities amounted to DKK -530m in 2009 (2008: DKK
-871m).

- The order intake decreased 56% to DKK 13,322m in 2009 (2008: DKK 30,176m)

- The order backlog decreased 30% to DKK 21,194m at the end of 2009 (end of
2008: DKK 30,460m)

The market situation
In the first half of 2009, there was a marked slowdown in the willingness to
invest among customers. Planned projects were deferred, ongoing projects were
put on hold and several plants stopped production. Inventories were reduced and
maintenance was minimised. The customers were mainly focusing on liquidity and
cost reduction. In the second half of 2009, the gloomy prospects waned and signs
of slightly increased optimism and increased customer interest could be
observed.

The demand for cement capacity depends on local conditions of supply and demand
and this means that there is a local need for new cement capacity independent of
the overall global business cycles. Minerals, on the other hand, is a global
market with global pricing. The demand for new capacity for the extraction of
minerals is therefore much more dependent on the overall global business cycles.

Cement: The global market for new contracted cement kiln capacity (exclusive of
China) amounted to 45m tonnes per year in 2009 (2008: 123m tonnes per year),
FLSmidth & Co.'s share of the market being 38% (2008: 32%).

Minerals: Investment in the minerals industry dropped markedly in 2009, overall
investments were reduced to half of the historically high level in 2008.

Prospects for 2010
The level of investments both in the cement and minerals industries is expected
to increase in 2010 compared to 2009, but is expected to  remain at a lower
level than before the global financial crisis. All other things being equal,
this will result in an increasing order intake in both Cement and Minerals in
2010 compared to 2009.

- In 2010, the global market for new contracted cement kiln capacity (exclusive
of China) is expected to amount to 50m tonnes per year (2009: 45m tonnes per
year).

- In 2010, FLSmidth & Co. expects a consolidated revenue of approximately DKK
19-20bn and an EBIT ratio of 8-9%.

- The prospects of the individual business areas in 2010 are as follows:

Revenue
Cement DKK 9-10bn
Minerals DKK 8-9bn
Cembrit DKK approx. 1.2bn

EBIT ratio
Cement approximately 9%
Minerals approximately 9%
Cembrit approximately 2%

- The effect of purchase price allocations regarding GL&V Process is expected to
be approximately DKK -100m, which is included in the above expectations.

- Cash flow from operating activities for 2010 as a whole is expected to show a
positive result, albeit with large fluctuations during the year.

- Investments (exclusive of acquisitions) are expected to be around
approximately DKK 400m in 2010.

- The effective tax rate is expected to be approximately 30%

Long-term growth and earnings prospects
In 2009, the global financial crisis severely dampened the cement and minerals
producers' willingness to invest. There are signs, however, indicating that
particularly the minerals producers' propensity to invest is about to return, as
higher minerals prices and economic key indicators are supporting plans for
capacity expansion.

In the longer term, it is still expected that particularly urbanisation and
industrialisation in developing countries will generate increasing demand for
cement and minerals.

In the coming years, earnings from Minerals and Customer Services in both Cement
and Minerals are expected to account for a larger share of the Group's total
earnings, which will reduce the effect of cyclical market fluctuations in
Cement. Against this background, the Group expects its EBIT ratio to be 10-12%
in periods of high activity and 8-9% in periods of low activity, where it should
be noted that FLSmidth is late cyclical by nature. Adjusted for purchase price
allocations regarding GL&V Process, the Group's EBIT ratio was 10.6% in 2008 and
10.2% in 2009. The annual effect of purchase price allocations regarding GL&V
¬Process is in future expected to be approximately DKK -100m.

Moving forward, the annual investments (exclusive of acquisitions) are expected
to be approximately DKK 300-400m.

The long-term average sustainable level for addition of new global cement kiln
capacity (exclusive of China) is expected to be 60-75m tonnes per year.

Please address any questions to this announcement to Mr Jørgen Huno Rasmussen,
Group CEO, telephone +45 36 18 18 00.

An Investor & Press meeting and telephone conference regarding the Annual Report
will be held today at 15:00 hours CET at the company's headquarters. For further
details, please visit www.flsmidth.com

FLSmidth & Co. A/S

Pernille Friis Andersen
Corporate Communications & Investor Relations

[HUG#1388393]

Attachments:

• Annual Report 2009

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