FLSMIDTH 14-15

Annual Report 2015
One Source of Productivity
ROCE EBITA margin Free cash flow Order intake
10% 8.0% DKKm 1,288 DKKm 18,490

Down from 12% Down from 8.9% Up from DKK 700m Up from DKK 17,267m
FLSmidth: Annual Report 2015
Contents:
Management’s review............................................................ 3-74
Group financial highlights (5-year summary) ....................................3
Financial results........................................................................... 4-5
Meet the CEO................................................................................ 6
Meet the chairman......................................................................... 7
FLSmidth at a glance................................................................ 8-15
Strategy and business model.................................................... 16-29
Key Innovations....................................................................... 30-37
Management’s review.............................................................. 38-51
FLSmidth in society.................................................................. 52-53
Divisional performance in 2015................................................ 54-61
Risk Management.................................................................... 62-65
Board of Directors................................................................... 66-67
The Executive Management..................................................... 68-69
Shareholder information.......................................................... 70-72
Company Announcements ........................................................... 73
Statement by Management on the annual report.......................... 74
Independent auditor’s reports....................................................... 75
Quarterly key figures............................................................... 76-77
Consolidated financial statements.................................... 79-146

Contents and list of notes ............................................................ 80
Consolidated income statement ................................................... 81
Consolidated statement of comprehensive income........................ 82
Consolidated cash flow statement................................................ 83
Consolidated balance sheet .................................................... 84-85
Consolidated equity ................................................................ 86-87
Notes to the consolidated financial statements ...................... 88-146
List of group companies.......................................................141-142
FLSmidth & Co. A/S financial statements ........................147-156

Parent company income statement............................................. 148
Parent company balance sheet ................................................... 149
Parent company equity............................................................... 150
Notes to the parent company financial statements ............... 151-156
Group financial highlights 5-year summary
2) 2) 2) 2) 1)
DKKm 2011 2012 2013 2014 2015 2015 EUR
INCOME STATEMENT
Revenue 19,598 24,283 25,027 20,499 19,682 2,642
Gross profit 5,222 6,193 5,060 5,125 4,946 664
EBITDA 2,577 2,959 1,618 2,106 1,878 252
EBITA 2,399 2,703 1,379 1,823 1,582 212
EBIT 2,174 2,189 67 1,416 1,141 153
Earnings from financial items, net (78) (61) (227) (137) (256) (34)
EBT 2,096 2,128 (160) 1,279 885 119
Profit/(loss) for the year, continuing activities 1,419 1,415 (472) 881 603 81
Profit/(loss) for the year, discontinued activities 18 (112) (312) (68) (178) (24)
Profit/(loss) for the year 1,437 1,303 (784) 813 425 57
CASH FLOW
Cash flow from operating activities (CFFO) 1,148 1,720 (157) 1,298 538 72
Acquisition of tangible assets (497) (739) (524) (366) (139) (19)
Cash flow from investing activities (CFFI) (1,648) (3,398) (567) (598) 750 101
Free cash flow (500) (1,678) (724) 700 1,288 173
Free cash flow adjusted for acquisitions and disposals of enterprises
and activities 415 830 (751) 884 415 56
Net working capital 1,174 1,553 2,027 2,276 2,583 347

Net interest-bearing debt (165) (3,189) (4,780) (4,593) (3,674) (494)
ORDERS
Order intake, continuing activities 23,927 27,702 19,794 17,267 18,490 2,487
Order backlog, continuing activities 26,977 29,343 20,813 17,726 14,858 1,999
BALANCE SHEET
Total assets 25,540 31,875 27,328 26,352 24,362 3,277
Equity 8,907 9,419 6,922 7,761 7,982 1,074
Proposed dividend to shareholders 479 479 106 461 205 28
FINANCIAL RATIOS
Gross margin 26.6% 25.5% 20.2% 25.0% 25.1% 25.1%
EBITDA margin 13.1% 12.2% 6.5% 10.3% 9.5% 9.5%
EBITA margin 12.2% 11.1% 5.5% 8.9% 8.0% 8.0%
EBIT margin 11.1% 9.0% 0.3% 6.9% 5.8% 5.8%
EBT margin 10.7% 8.8% -0.6% 6.2% 4.5% 4.5%
CFFO / Revenue 5.9% 7.1% -0.6% 6.3% 2.7% 2.7%

Cash conversion 19.1% 37.9% n/a 62.4% 36.4% 36.4%
Book-to-bill 122.1% 114.1% 79.1% 84.2% 93.9% 93.9%

Order backlog / Revenue 137.7% 120.8% 83.2% 86.5% 75.5% 75.5%
Return on equity 17% 14% -10% 11% 5% 5%

Equity ratio 35% 30% 25% 29% 33% 33%
ROCE (return on capital employed), average 23% 18% 9% 12% 10% 10%
Net working capital ratio, average 6.7% 8.3% 7.1% 10.5% 12.3% 12.3%
Financial gearing 0.1 1.2 3.0 2.2 2.0 2.0
Capital employed, average 10,236 13,205 15,070 15,040 15,162 2,040
Number of employees at 31 December, Group 13,204 15,900 15,317 14,765 12,969 12,969
SHARE RATIOS
CFPS (cash flow per share), (diluted) 21.8 33.0 (3.1) 26.3 11.0 1.5
EPS (earnings per share), (diluted) 27.1 25.1 (15.3) 16.4 8.6 1.2
Net asset value per share 169 181 139 158 162 22
Dividend per share 9 9 2 9 4 0.5
Pay-out ratio 34% 37% n/a 57% 49% 49%
FLSmidth & Co. A/S´ share price 337.5 327.2 296.1 272.3 240.0 32.3
Number of shares (1,000), 31 December 53,200 53,200 53,200 51,250 51,250 51,250
Market capitalisation 17,955 17,407 15,753 13,955 12,300 1,655
The financial ratios have been computed in accordance with the guidelines of the Danish Society of Financial Analysts from 2015. Please refer to note 51
for definitions of terms.
1) Income statement and cash flow items are translated at the average EUR exchange rate of 7.4508 and the balance sheet items are translated at the year-end EUR exchange rate of 7.4342.
2) The income statement figures have been restated as bulk material handling and Cembrit are presented as discontinued activities.
3
Financial results
Main conclusions
Return on Capital Employed
Challenging market conditions had a
10%
significant impact on financial perfor-
mance in 2015. The global cement and
minerals industries continue to be se-
verely impacted by low oil and commod- Down from 12%
ity prices, and as a result, investments
have been further curtailed.
EBITA margin
Order intake increased 7%, while revenue
declined 4%. Both were supported by
currency tailwind. The EBITA margin
was 8.0% - the mid-point of guidance.
8.0%
Down from 8.9%
The Product Companies and Customer
Services divisions deliver most of the
profit and provide a solid foundation in
the current cyclical investment downturn. Order backlog (DKKm)
Free cash flow was the highest in six

years owing to the divestment of
Cembrit. As a consequence, net debt
14,858
Down from 17,726
declined by DKK 0.9bn and the capital
structure is now in line with targets. The
guidance for 2016 reflects continued
high market volatility and low visibility. Free cash flow (DKKm)
1,288
Up from 700
Guidance
Guidance1) Realised Guidance
DKK 2015 2015 2016
Revenue*) 19-20bn 19.7bn 17-20bn
EBITA margin 7.5-8.5% 8.0% 7-9%
ROCE 10-12% 10% 8-10%
Tax rate 31-33% 32% 29-31%
CFFI**) -0.3bn -0.1bn -0.4bn
*) at prevailing currency rates.
**) excluding acquisitions and divestments of enterprises and activities.
1)
Last updated on 12 November 2015.
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4
Revenue (DKKm) EBITA (DKKm)
19,682 1,582
Down from 20,499 Down from 1,823
CFFO (DKKm) Order intake (DKKm)
538 18,490
Down from 1,298 Up from 17,267
Net interest-bearing debt (DKKm) Net working capital (DKKm)
-3,674 2,583
Down from -4,593 Up from 2,276
Financial gearing (NIBD/EBITDA) EPS (Earnings per share) (DKK)
2.0 8.6
Down from 2.2 Down from 16.4
5
Meet the CEO
A productivity
mindset
Although we acknowledge the persisting headwind from our
end markets, we continue to look ahead while improving our
efficiency and competitive position. A downturn is in fact an
opportunity to make the company fitter for the future. The last
two to three years, we have executed comprehensive efficiency
improvement programmes with a view to optimising our global
footprint. In parallel, we have conducted business right-sizing
to adjust our business to prevailing market conditions. The
initiatives continue, most recently with the consolidation of our
minerals material handling activities in the USA, and ongoing
transfer of engineering and manufacturing to India and China.
On 1st of January 2015, our new organisational structure

became effective which significantly simplifies the way we do
business. At the same time, we optimise our product portfolio.
In January 2015, we divested Cembrit and in November 2015, “We optimise our portfolio
we announced the plan to restructure and divest our bulk and invest in our people and
material handling activities. Portfolio and footprint optimisa-
tion is an ongoing management task, including evaluation of
innovation to offer customers
potential investment opportunities. improved productivity”
Thomas Schulz - Group Chief Executive Officer
We constantly adapt our offering to reflect our customers’
needs. We believe productivity will be a critical success factor
in the years to come, and that is why we make substantial
investments in R&D and in developing a strong productivity
mindset, including recruitment of sales people to grow our
adjacent businesses.
ROCE > 20%
• New organisational structure

• Portfolio and footprint optimisation
• Investment in people
Efficiency programme
and business right-sizing
Strategy health
check
Long-Term
Full service
Mid-Term provider
Sustainable
Short-Term profitable growth
Navigate through
cyclical downturn
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6
Meet the chairman
Matching staff and competencies

with customer needs
We are experiencing tough market conditions but we will
continue to drive the business for long-term sustainable
profitable growth and we maintain our strong focus on
return on capital employed. Currently, attention is on man-
aging the downturn and delivering a strong cash flow. At
the same time, we optimise our business to reflect changing
customer needs. In 2015, this resulted in extra attention on
securing the optimal composition of the Board and staff of
FLSmidth to make sure that our competencies match our
customers’ needs.
We were very pleased to announce that Marius Jacques

Kloppers, former CEO of BHP Billiton and Rob Smith from
AGCO have accepted to be nominated as new members of
the Board of Directors. With an extensive knowledge of the
minerals industries and experience with manufacturing and “We will continue
sourcing in a wide range of industries and countries, the to drive the business for
two candidates can contribute with very valuable knowledge
and experience to the work of the Board. Development of
long-term sustainable
talent and succession planning among the employees were profitable growth”
also on the agenda during 2015. A new long-term incentive Vagn Ove Sørensen - Board Chairman
scheme based on conditional shares - performance shares

- will be introduced in 2016. This will ensure alignment
between shareholders’ interest and the way management
is rewarded, just as it will benefit the further development
of FLSmidth.
Inevitably, short-term results are impacted by current market

headwind, but we strongly believe that our successful
implementation of efficiency improvement programmes in
combination with a focus on securing the right staff and
competencies will provide a strong platform for expanding
profit margins and ensuring organic growth in years to come
- and when the upturn kicks in, we will get the additional
benefit of a faster growing market, which will accelerate our
ROCE > 20%
journey towards a higher return on capital employed.
Volume growth
Margin expansion
Capital efficiency
Managing the downturn
7
FLSmidth at a glance
Long-term financial targets Investing in FLSmidth

Group long-term financial targets FLSmidth & Co. A/S has been listed on NASDAQ OMX Copen-
Long-term financial goals for FLSmidth subject to normalised hagen since 1968. FLSmidth is best characterised as a capital
market conditions: goods, an engineering or an industrial company. FLSmidth
excels in productivity improvements and eco-efficient techno-
Annual growth in revenue Above market average
logical solutions to process and handle cement and minerals.
EBITA margin 10-13% Based on 134 years of experience, FLSmidth has a proven
ROCE *)
>20% ability to support the global minerals and cement industries to
Tax rate 32-34% lower their environmental impact and improve productivity.
Financial gearing (NIBD/EBITDA) <2
FLSmidth has a sustainable business model and good growth
Equity ratio >30%
opportunities. Minerals and cement are vital for continued
Pay-out ratio 0-50% of the profit
3
global economic, societal and technological development.
for the year
With two-thirds of revenue being generated in emerging
*) ROCE: Return on Capital Employed calculated on a before-tax basis as
EBITA divided by average Capital Employed including goodwill.
markets, an investment in FLSmidth is an investment in
emerging markets growth. See page 70-72 for further
shareholder information.
Divisional long-term financial targets
Growth EBITA% Net working capital FACTS

(over the cycle) (as pct. of revenue)
The Board of Directors’ priority for capital
Customer 5-10% >15% 15-20% structure and allocation is the following:
Services
1. Well-capitalized (NIBD/EBITDA < 2)
Products 5-10% 12-15% ~15%
Companies 2. Stable dividends (30-50% of net profit)
Minerals 5-6% 3-8% Negative 3. Invest in organic growth
Cement 3-5% 3-8% Negative 4. Value adding M&As
5. Share buyback or special dividend
Share and dividend figures 2015:
2015 2014
Earnings per share (diluted) DKK 8.6 16.4

Total shareholder return -9% -8%
Proposed dividend per share DKK 4 9
Dividend yield 1.7% 3.3%
Pay-out ratio 49% 55%
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8
Financial r esults 2015

Revenue DKKm
19,682
EBITA margin
8.0%
Order intake DKKm
18,490
FLSmidth
Customer Product Minerals Cement

Services Companies
Revenue DKKm Revenue DKKm Revenue DKKm Revenue DKKm

7,294 5,711 3,576 3,911
EBITA margin EBITA margin EBITA margin EBITA margin
13.0% 13.2% -7.2% 2.5%
Order intake DKKm Order intake DKKm Order intake DKKm Order intake DKKm
6,710 5,742 4,112 2,803
Total service business Total capital business
Customer Services Minerals

Customised cement and minerals Projects / customised
equipment aftermarket equipment
Cement Cement
Opreration & Projects / customised
Maintenance equipment
Product Companies Product Companies

Products aftermarket Products
55% of revenue 45% of revenue

52% of order intake 48% of order intake
Revenue growth +7% vs. 2014 Revenue growth -15% vs. 2014
Order intake growth unchanged vs. 2014 Order intake growth +15% vs. 2014
9
Who we are
FLSmidth is a market-leading supplier of engineer-
ing, equipment and services to the global minerals
and cement industries. We provide our key industries
with the solutions to fulfil the full range of customer
requirements, from single equipment to complete
plants and from spare parts to full operation and
maintenance services. We are the market-leading
supplier of productivity enhancing services within
six key commodities, which are copper, gold, coal,
iron ore, fertilizers and cement. We help customers
increase capacity, reduce operating costs and lower
environmental impact. FLSmidth is a global company
with headquarters in Denmark and a local presence
in some 50 countries.

Services Companies
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10
11
Vision Strategy and

It is FLSmidth’s vision to be our customers’ preferred business model
full-service provider of sustainable minerals and cement The growth and economic development of societies all
technologies. over the world is driving urbanisation and industrialisation
which in turn is driving demand for cement and minerals.
As a leading supplier of environmentally sound solutions to
the global cement and minerals industries, FLSmidth has a
sustainable business model which makes the company well
positioned to benefit from the mid- and long-term struc-
tural growth opportunities. At the same time, the flexible
business model allows FLSmidth to manoeuvre safely
through a cyclical macroeconomic environment.
Values
The business is developed around four strategic focus areas:
Over the past 134 years, FLSmidth has developed a business
culture based on three fundamental values, which are firmly • Full service provider
rooted in our Danish heritage: • Focus on six key commodities
• Full flow-sheet
> Cooperation • Life-cycle approach
> Competence
FLSmidth’s life-cycle approach helps customers reduce
> Responsibility emissions, lower operating costs and enhance productivity
based on a unique combination of key products, process
Ensuring that safety stays on top of mind is part of FLSmidth’s know-how and a broad service offering. A strong engineer-
commitment to Corporate Social Responsibility and builds ing heritage combined with comprehensive flow-sheets of
on our company culture of being a responsible employer, key technologies within our six key commodities position
and corporate citizen, and a reliable business partner. FLSmidth strongly as a one-source supplier to the cement,
minerals and adjacent industries. As a full service provider,
FLSmidth offers customers to design, build and operate
their plants. See page 16-29 for more information about
the strategy and business model.
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12
Business-model-driven organisation
FLSmidth’s organisation is structured to ensure operational efficiency
through homogeneous business models within each division and a
segmented customer approach.
Divisions with
homogeneous
business models

Services Companies
Type of business Spare parts ~75% Relatively standardised • Engineered, customised single products
Services ~15% and market-leading • EP(S) projects
Maintenance ~10% product range • EPC projects
~50% aftermarket • Operation & Maintenance
Business Small orders, Stable high margins, Cyclical business, large orders,
characteristics stablehigh margins, original equipment negative NWC, low margins
growth & spare parts
Our excellence • Inventory • Product leadership • Process expertise and project execution
• Logistics • Market coverage • Procurement
• Speed • Assembly/Manufac. • Full flow-sheet offering
• Maintenance • Inventory • Engineered products
• Speed
Business model Local direct sales, Mostly local direct • Global direct sales
warehouses, service & sales, integrated • OEM supplier / technology provider
support centres, value chain, • In-house R&D and engineering
mostly outsourced in-house assembly / • Outsourced manufacturing
manufacturing manufacturing
13
Risk management Market trends

FLSmidth has a low risk tolerance for certain types of risk Global growth was lower than expected in 20151, and
such as: safety, currency, theft of intellectual property rights, likewise, FLSmidth’s core markets developed more nega-
business integration, IT, legal, compliance and tax. However, tively than anticipated. The expected emerging recovery of
the Group is prepared to accept considerable project-related the cement industry was postponed, and the minerals in-
risks within the areas where the Group has the competencies dustry deteriorated more rapidly and more vigorously than
to manage such risks. During the risk assessment process in foreseen at the beginning of the year. As a reflection of the
2015, the following key risks were identified in random changed market conditions and very high market volatility
order of priority: safety, projects, compliance & tax, quality over the summer, the earnings guidance was downgraded
and market. See page 62-65 for more information about in connection with the half-year results.
risk management.
Cement
Going into the year 2015, it looked like a slow recovery
would finally emerge in the global cement industry ex-
cluding China. Global capacity utilisation rates were on a
slight positive trend and increasing consumption under-
pinned positive development in many regions. Most of the
underlying prerequisites for a recovery in the industry are
Innovation still present but, from a global perspective, the recovery
has been delayed as a result of the strong decline in the
FLSmidth’s future economic results are not dependent on the oil price. The likely impacts of the lower oil price were
success of single innovations but on the continued stream of highlighted already in connection with the first quarter
new developments to enhance our existing strong offering. results, but the actual effects have been more evident in
In 2015, FLSmidth spent 1.3% of revenue on R&D to ensure the second half of 2015. Demand for new cement capacity
environmentally sound solutions to the challenges faced by in oil exporting countries has contracted. The oil importing
our customers. countries, on the other hand, are benefitting from the
lower oil price, however this advantage does not immedi-
The current cycle is mainly about productivity, and custom- ately translate into new demand for cement capacity and
ers buy performance. FLSmidth’s R&D focuses on increasing thus, 2015 saw relatively few orders available in the mar-
customers’ productivity by minimizing resource consumption, ket. Although FLSmidth was awarded a fair share of the
increasing recovery and lowering environmental impact. We available orders, inevitably, the low tendering activity had
increasingly develop solutions together with our customers or an adverse spill-over effect on the terms and conditions
form partnerships with other industry process leaders, like the attainable in the market.
joint filter development with Haldor Topsøe, and most recently
with world leading chemical company BASF, to ensure a The sharp decline in the oil price has not only delayed
targeted co-development process with rapidly commercial- demand for new cement capacity. It severely challenges
ised products. See page 30-36 for more information about customers in countries strongly dependent on the income
FLSmidth’s recent innovations. from oil production. This continues to impact in particular
one Operation & Maintenance contract, on which
FLSmidth is working closely with the customer to adapt
their business and cost structure to the changed market
environment.
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14
Overall, the pipeline for potential cement projects is similar high end of the cost curve, especially if prices move rapidly
to one year ago, but now with a higher proportion of downwards. For some mines, the current price level is
projects in oil-importing countries. Although the global below their cash cost of production, but at the same time
cement industry remains quite subdued, global cement many of them have a substantial potential to improve
consumption continues to rise and good regional op- productivity, and as long as commodity prices move slowly,
portunities persist. Overcapacity in some countries, like most operators have an opportunity to reduce cash cost
China, does not change the overall picture. Cement is of production, which represents a business potential for
predominantly a local or regional business and less than FLSmidth. Although we have witnessed mothballed mines
five percent of global cement clinker production is traded and curtailed production, mining closures have been limited,
internationally2. With expectations of a modest growth in and production volumes remain at a high level. As long as
global cement demand excluding China in 2016, funda- the amount of mine closures is confined, the minerals-
mentals still support a recovery of the cement industry in related aftermarket business is expected to remain relatively
the next few years. resilient, although with some quarterly volatility. Thus,
both the second and the fourth quarters saw deferral of
Minerals spare parts purchase and maintenance into the subsequent
Entering 2015, FLSmidth expected that the market for mining quarter.
capex would trough in 2015 and show slow growth in 2016.
Based on an increased order intake in the Minerals Division in Overall, the market for cement services is stable. Several
2015 versus 2014, 2015 could still turn out to be the trough regions continue to show good activity, particularly in
year for FLSmidth’s mining capex related activities. That said, North America, Eastern Africa and Europe, while customers
the underlying market undoubtedly deteriorated during the in most oil-exporting countries remain under pressure. In
year which in August led to the changed expectations that the India, activity is cautiously picking up.
trough in addressable mining investments for FLSmidth would
be extended and that growth would not resume until the
end of 2017. Current visibility is low as a result of a sustained
downward pressure on commodity prices, numerous an-
nouncements of reductions in customers’ capital expenditures
and plans to curtail or shut down mining operations, along
with uncertainty around the Chinese economy and a high
level of geopolitical unrest. The short-term outlook for the
minerals industry will depend on a stabilisation of commodity
prices, and China’s gradual transition towards a more con-
sumption-driven growth model.
Services
Mining-related service activities will also depend on the
development in commodity prices. The downward pressure
on commodity prices is to a large extent caused by the
industry itself as a number of mines continue to increase
outputs and thereby maintain the current supply surplus 1)
World Bank Group, Global Economic Prospects, January 2016
for most commodities. This poses a risk to miners at the 2)
The Global Cement Report 11th edition
15
Strategy and business model
A sustainable
business model
Societies all over the world are growing and becoming more as the obligations towards employing and developing a local
economically developed. With hundreds of millions of people workforce and providing a safe working environment, is vital
working their way from poverty to middle class, urbanisation to gaining local support to operate, and FLSmidth has both the
and industrialisation are driving the need for infrastructure and experience and the technologies to help customers address the
improved living standards. Minerals and cement are essential challenge. (See more about key innovations on page 30-36).
components to fulfil this ever-greater need for civilised societies
- and this demand is set to continue to grow. Life-cycle approach
Our ‘life-cycle approach’ is twofold. For the customer, it
Yet a number of issues are challenging the ability for the min- means that the focus is not entirely on the initial invest-
erals and cement industries to sufficiently support the growing ment but rather on the total-cost-of-ownership. In simple
needs of societies around the globe. The minerals and cement words, the model is to supply the best productivity per
industries are increasingly focused on sustainability and their dollar spent. Providing productivity is best achieved in close
responsibilities to the environment and society in general. They cooperation with customers, and for FLSmidth the close
are faced with ever-stricter governmental regulations related customer dialogue simultaneously works as a natural gate-
to environmental aspects of the major inputs, including natural way to the sizeable aftermarket which for both cement and
resources such as water and energy, and the environmental minerals typically represents more than 80% of the total
footprint associated with pollution and emissions. The cement cost of ownership over the plant life.
industry in particular continues to be challenged by emissions
restrictions. For both industries, greater scarcity of energy,
water and raw materials is leading to more complex and costly
operations. Successfully managing these responsibilities, as well
FLSmidth’s strategy in a nutshell
Life-cycle Full service Focus on six Full

approach provider key commodities flow-sheet
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16
A sustainable business model
Urbanisation and industrialisation. Demand for cement

Driving the need for infrastructure and minerals.
and improved living standards
FLSmidth’s equipment and services. Demand for FLSmidth’s

Contribute to a sustainable equipment and services.
development of societies with the
lowest environmental impact
FLSmidth’s life-cycle approach
FLSmidth’s equipment is Value proposition

designed for optimal
performance: Through our life-cycle approach we
• Boost productivity continuously strive to offer customers:
• Minimise downtime
• Lower maintenance cost
CAPEX
ut
outp
ased
Incre
Highest productivity per $ spent

Redu
ced t
otal
cost
of ow
ners
hip
FLSmidth’s services help:

OPEX
• Optimise customers operations
• Lower life time cost through
proactive, predictive maintenance
17
Full-service provider Focus on six key commodities

Being a ‘full-service provider’ means supplying everything FLSmidth is a leading full-service provider of sustainable
from single products and services to complete plants or technologies within six key commodities: cement, copper,
production lines and full operation & maintenance solu- gold, coal, iron ore and fertilisers. Adjacent industries are
tions. This is best illustrated by FLSmidth’s productivity targeted as well, where existing technologies can be applied.
enhancing ‘Design-Build-Operate’-model, where we offer Examples of adjacent industries are power, steel, aggregate,
to design, build and operate customers’ plants. In essence, chemical and other minerals such as alumina, bauxite,
the customer is responsible for obtaining permits, access to molybdenum, nickel, platinum and zinc.
raw materials, power supply and sales, whereas FLSmidth
builds, operates and guarantees an agreed level of pro-
duction and performance. The process know-how from
designing a vast number of plants is applied to ensure the
most efficient plant operations, and the practical experi-
ences from operating the plants are fed straight back into
FLSmidth’s product innovation which helps to shorten the
time-to-market.
‘Full-service provider’ exemplified by FLSmidth’s Design-Build-Operate model
Process expertise
Design Build Operate
Feed back
Cement and Minerals CAPEX Service OPEX
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18
COPPER GOLD COAL
Copper is used in building Gold is used primarily for jewel- Coal is used for power generation,
construction, power generation, lery and investment, but also for steel production, cement manufac-
consumables, and industrial industrial production. turing, and as fuel.
machinery.
1,000 tonnes USD/mt 1,000 kg USD/t oz 1 mill. tonnes USD/mt
2,500 15,000 350 2,100 10,000 150
300 1,800
2,000 12,000 8,000 120
250 1,500
1,500 9,000 200 1,200 6,000 90
1,000 6,000 150 900 4,000 60

100 600
500 3,000 2,000 30
50 300
0 0 0 0 0 0
2000 - 2017 2000 - 2017 2000 - 2017
Reﬁned copper production Gold ore content production Coal production
– world total – world total – world total
Copper price Gold price Thermal coal price
IRON ORE FERTILISER CEMENT
Iron ore is the most used metal Fertiliser minerals, such as potash Cement is one of the world’s most
worldwide, primarily for construc- and phosphate, are essential to widely used building materials.
tion, engineering, automotive, and meet the global demand for food.
machinery.
1 mill. tonnes USD/mt 1,000 tonnes USD/mt 1 mill. tonnes
2,500 200 60,000 420 5,000 85%
2,000 160 50,000 350 4,000 80%

40,000 280
1,500 120 3,000 75%
30,000 210
1,000 80 2,000 70%
20,000 140
500 40 10,000 70 1,000 65%
0 0 0 0 0 60%
2000 - 2017 2000 - 2017 2000 - 2017
World Production of Phosphate production World Cement production
iron ore Phosphate price Capacity utilisation,
Iron ore price world ex. China
Source: Bloomberg, International Cement review, FLSmidth estimates.
19
Full flow-sheet the mining value chain, FLSmidth is primarily active in ma-
FLSmidth combines a strong commitment to life-cycle services terial handling, comminution (crushing, grinding & sizing)
with more than a century of engineering and technological and separation, supplemented by unique materials testing
leadership. A complete portfolio of core technologies and capabilities. These state-of-the-art testing facilities are used
extensive process know-how enables FLSmidth to be a single to analyse ore samples from our customers’ mines which
source of reliable full-service solutions and expertise. To earn ensures an early dialogue with the customer and not least
the status as a single source supplier, over the years, FLSmidth an in-depth knowledge of their material, for example the
has developed a ‘full flow-sheet’ offering within both of its core material hardness and the minerals concentration, which
industries, cement and minerals. is used to optimise the grinding and separation process to
the specific material.
In cement, FLSmidth supplies the most complete array of pro
ducts, systems and services, ranging from single engineered Today, FLSmidth is a supplier of premium technology to
and customised equipment, such as vertical mills, kiln systems the global cement and minerals industries. In minerals,
and clinker coolers, to a complete cement plant on an EPC however, we are investigating select opportunities to enter
basis (engineering, procurement and construction) coupled the midmarket segment (products designed to cost), as
with a full scale operation and maintenance contract. we expect this market segment to have the fastest growth
rates over the next 5-10 years.
In mining, FLSmidth likewise supplies a complete array of
products, systems and services, ranging from single engi-
neered and customised equipment, such as ball mills, clas-
sifiers or flotation cells, to bundled equipment solutions,
full production plants, and maintenance solutions. Within
FLSmidth in the cement value chain
Crushing Material Raw meal Pyro Clinker Clinker Cement

handling grinding processing cooling grinding handling &
packing
• Limestone, • Stackers/ • Raw meal • Preheaters • Cooling of • Clinker • Truck loaders

shale and clay Reclamers grinding clinker grinding
crushing • Kilns • Palletisers
• Bucket • Coal grinding • Grate coolers • Roller presses
• Hammer Elevators • Silo equip-
crushers • Vertical mills • Other coolers • Cement mills ment
• Pan conveyors
• Impact • Ball mills
crushers
• Roller presses
• Roller crushers
FLSmidth
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20
FLSmidth in the mining value chain
Exploration Develop- Extraction Minerals Comminu- Benefici- Refining &

ment material tion ation & Smelting
handling Recovery
Exploration for Drilling and Mining of the Mined ore Mined ore Flotation, Refining
mineral resources modeling of ore body minerals trans- materials are leaching, to increase
the ore body ported to and crushed, sedimentation, concentration
• Remote sensing Rock breaking within process- screened and dewatering and of minerals/
Selection of ing site ground to filtration are metals further.
• Geophysical / appropriate Surface mining achieve finer used to increase Key techniques:
geochemical mining technique Use of loaders, particles the minerals
tests Underground trucks, crushing content to an • Pyro –
Capital invest- mining stations Particles sized economic level metallurgy
• Samples ment in mine and mobile for optimum
infrastructure conveyors recovery of • Electro –
Feasibility studies mineral species winning
FLSmidth FLSmidth
21
Providing productivity factor in the years to come. In the cement industry, produc-
FLSmidth’s life-cycle approach helps customers to reduce tivity has been top of the agenda for several years already.
emissions, lower operating costs and enhance productivity The minerals industry, on the contrary, saw more than a
based on a unique combination of key products, process decade of predominant capacity focus and only a few years
know-how and service solutions. ago, focus shifted back towards productivity improvement.
FLSmidth has the ideal set-up to meet the changing de-
FLSmidth has an excellent track record of reliability, time-to- mand, and is making significant investments in people and
market and project follow-through. By uniting a heritage R&D to become even better.
of engineering/project competencies with in-house key
products and a full range of services, FLSmidth is ideally
positioned to offer customers the best solutions to improve
productivity – and productivity will be the critical success
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22
PRODUCTS
Market leading
key products
ONE
SOURCE...
SERVICES PROJECTS
Parts, services and Customised equipment,
maintenance complete plants and full
Operation & Maintenance
Working closely
with customers
to understand
performance data
Reducing Boosting productivity
total cost of and maximising return
ownership on assets
...OF
PRODUCTIVITY
Providing uptime Minimising impact

and performance on society and envi-
guaranties ronment.
23
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24
Managing cycles
The longer term outlook for cement and minerals is still en- Managing cycles
couraging and FLSmidth is well positioned to benefit from
both mid- and long-term structural growth opportunities.
Average investment Products Projects Services
However, both industries are cyclical by nature – particu- cycle duration
larly with regard to investments in new capacity, although 7-10 years
they don’t follow exactly the same cycle. FLSmidth’s busi-
ness model is engineered to account for that. A dynamic
business model with outsourced manufacturing and a
flexible cost structure, resulting in a high cash conversion,
allows FLSmidth to manoeuvre safely through the cycles. Momentum
Furthermore, a growing service business (~50% of today’s

Customer Services
business) reduces the cyclicality of the entire Group as the
service business is more resilient and stable by nature. Product Companies
Minerals
The business model and organisational structure enables
Cement
FLSmidth to manage and leverage the full potential of the
cycle. Each part of the cycle has a prime time for product Colour code refers to momentum over the cycle
business, project business or service business, and FLSmidth
has a strong offering in each subpart of the cycle.
Customer base
FLSmidth has a diversified customer base composed primar- First, there is a significant technology overlap. Several
ily of global and regional cement and mining companies of the products used in each of the industries are either
that invest in new capacity or in expanding, upgrading, identical or very similar, for example crushers, mills and
maintaining and servicing existing production capacity. material handling equipment. Second, FLSmidth supplies
FLSmidth has a vast experience of working with a broad large projects in both cement and minerals, and the project
range of customers in almost any country in the world. management skills needed (process know-how, risk man-
agement, procurement, etc.) are largely the same. FLSmidth
Mining customers consist of both global mining majors has a large shared services set-up in Chennai, India with
and smaller regional players, the latter accounting for the more than 2,200 people servicing the global organisation
majority of minerals-related project sales, whereas global with shared resources for Engineering, IT, HR and Finance.
mining majors account for a considerably higher share of Also with respect to customer services, FLSmidth’s miner-
FLSmidth’s minerals-related aftermarket business. als and cement businesses can benefit from one another’s
experience as customers in both industries increasingly
Both global cement majors and local or regional mid- look for productivity enhancing services. Last, but not least,
sized players are typical customers of FLSmidth, though cement and minerals take advantage of a shared global
the latter account for the majority of cement-related supply chain and joint production facilities.
project sales, whereas global cement majors account for
a considerably higher share of FLSmidth’s cement-related Business-model-driven organisation
aftermarket business. FLSmidth’s divisional structure is optimised to increase
operational efficiency through:
Synergies between cement and minerals
While cement and mining are distinct industries, there • Homogeneous business models and KPIs within divisions
are considerable commonalities and synergies between • Segmented customer approach
the two, and FLSmidth has the unique advantage of • Distinct management skills and competencies
being able to share resources and best practices across • Low complexity and high transparency
the two businesses.
The divisional offerings and key characteristics are outlined
for each of the four divisions in the following:
25
Customer Services
Business model The significance of the aftermarket is obvious as the initial
The Customer Services Division provides a full suite of investment in new equipment typically accounts for less
parts, services, and maintenance solutions to the global than 20% of the total life-cycle cost. The service business
cement and minerals industries. The go-to-market model is characterised by mainly smaller orders tied to customers’
is mainly local direct sales on the basis of more than 100 production volumes rather than new investments which
warehouses, service, and support centres worldwide. makes it a relatively resilient business over the cycle with
Customer intimacy is a top priority with most of the stable high margins.
4,731 employees in direct customer contact. This global
set up allows FLSmidth to target and address different The key challenge in Customer Services is to run with an
geographies and customer needs with specific skills and optimised level of net working capital. The net working
best practices and thereby supports the divisional vision of capital must be low enough to ensure that customer services
being best in class in maximising customers’ productivity supports the group target on return on capital employed
and return on assets. but high enough to secure quick deliveries of critical parts
and services. FLSmidth will continue to develop its excel-
With these endeavours in mind, a full array of services lence in logistics and inventory management to maintain a
before, during and after delivery of new plants and strong competitive position versus other large suppliers and
equipment is offered. The composition of the business is local workshops.
roughly 75% parts, 15% services and 10% maintenance
- with most manufacturing outsourced. Today, FLSmidth
has a low share of wear parts sales, but it is the ambition
to grow the wear parts business to more than 10% of the
division’s revenue - not least as a means to ensure more
frequent customer interaction.
Customer Services in a nutshell
Type of business Spare parts ~75% Our excellence • Inventory

Services ~15% • Logistics
Maintenance ~10% • Speed
• Maintenance
Business Small orders, stable high Business model Local direct sales, ware-
characteristics margins, growth house, service & supports
centres, mostly outsourced
manufacturing
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26
Product Companies
Business model to the Cement and Minerals divisions. Some product com-
The Product Companies Division hosts a diverse portfolio panies have been developed organically, while others have
of relatively standardised market leading product brands, been acquired. However, the businesses as a whole have not
applied in cement, minerals and adjacent industries, each fully realised their potential, and consequently, the vision of
of which represents roughly one-third of sales. The division Product Companies is to expand the leading niche products to
consists of nine product companies with individually inte- their full global potential. Focus is on developing or sustaining
grated business models. The 3,325 employees are located product leadership positions, leveraging sales opportunities,
around the world with the majority in Australia, Denmark, and managing net working capital while acknowledging that
Germany, Italy, South Africa, Poland, India and the USA. a certain level of inventory is a prerequisite to make business
Most assembly and part of the manufacturing take place happen with competitive lead times.
in-house with primary production sites located in China,
India and Poland. The division also hosts the Group’s global The division’s nine product companies are diverse in the
centre of excellence for supply chain and quality. sense that some offer primarily systems while the majority
offer products with a focus on either assembly or manufac-
Most of the product companies’ business consists of original turing. However, they share some important characteristics
equipment, spare parts and related services, making it less which makes it ideal to host them in the same division. They
cyclical than the project divisions and with higher, more all have agile business models with niche market leadership,
stable margins. It is the ambition to have a service share integrated R&D and short time-to-market. They all have high
of more than 50% of revenue throughout the cycle and a service content and they all generate most sales outside of
market leading position in all targeted segments. FLSmidth. Nonetheless, they all possess key equipment for
the flow-sheets in FLSmidth’s two core industries, cement
Product Companies sell mostly local, direct to external and minerals. Finally, they share the same ambition and
customers (~80% external sales in 2013-2015), whereas the potential to grow in their core markets as well as adjacent
remainder of the business is made up of internal sales, mainly industries where existing technologies can be applied.
Product Companies in a nutshell
Type of business Relatively standardised and Our excellence • Product leadership

market-leading product • Market coverage
range • Assembly/Manufac.
~50% aftermarket • Inventory
• Speed
Business Stable high margins, Business model Mostly local direct sales,
characteristics original equipment & integrated value chain,
spare parts in-house assembly /
manufacturing
27
Minerals
Business model is decreasing. Mining companies are faced with more
The Minerals Division is a leading provider of mineral complex extraction activities, often in remote destinations
processing and material handling technology and solutions and in challenging climates, all of which is complicating
to the global minerals industry. It employs 1,881 people miners’ operations. To facilitate our customers’ productivity
predominantly located in technology and project centres and sustainability needs, and to help customers recover
in USA, India, South Africa, Chile and Australia. Through- ore otherwise deemed unusable, the Minerals Division
out 2015, the division has worked tirelessly on executing increasingly focuses on process expertise, increased water
right-sizing and optimisation initiatives to adjust the busi- recovery, dry stacked tailings and waste handling systems,
ness to the cyclical downturn. and innovations surrounding energy efficient comminution
and flotation technologies.
The Minerals Division delivers premium engineered and
customised single products, EPS (engineering, procure- Projects are by nature a low margin business, however with
ment, and supervision) projects, and EPC (engineering, the potential for operational leverage when project busi-
procurement and construction) projects to the global min- ness is predominant in the business cycle, and the business
ing industry. As an OEM (Original Equipment Manufacturer) should run with negative net working capital, ensuring
supplier with a focus on large scale engineered products good returns throughout the cycle. Additionally, Minerals
and projects, the business model is structured around generates business for the Product Companies Division and
regional sales, engineering, and centralised execution hubs, provides an installed base for the Customer Services Division.
while most manufacturing is outsourced. Across the three divisions, FLSmidth supports its customers
with the ultimate productivity enhancing solutions and
For the minerals industry, recovery of usable ore is becom- full flow-sheet offerings, providing a strong competitive
ing increasingly difficult as the quality of the ore grade platform.
Minerals in a nutshell
Type of business Engineered, customised Our excellence • Project execution

single products • Procurement
EPS projects • Full flow-sheet offering
EPC projects • Engineered products
Business Cyclical business, Business model Global direct sales

characteristics large orders, OEM supplier / technology
negative NWC, provider
low margins In-house R&D and engineering
Outsourced manufacturing
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28
Cement
Business model Cement excels in sublime project execution and pro-
The Cement Division is the market leader of premium curement, and benefits from the most complete product
technology and process solutions to the global cement portfolio in the industry. However, growth in new projects
industry, and FLSmidth has delivered more cement plants is currently challenged by tough market conditions and in-
in the world than anyone else. Accordingly, the division’s tense competition. To counter this, FLSmidth has enhanced
2,793 employees constitute a truly global organisation with its internal EPC capabilities as well as partnerships with
local presence and technology centres predominantly in third party construction companies. Further, the Cement
Denmark, USA and India. Division hosts the Operation & Maintenance business which
combined with EPC projects constitute a key differentiator
The Cement Division is structured around global direct sales for the industry, referred to as the ‘Design-Build-Operate’-
and in-house R&D and engineering with most manufac- model (see the ‘Full-service provider’ section on page 18
turing outsourced. Cement is mainly a local or regional for additional information).
business with customers scattered around the globe which
is reflected in the divisional set-up.
The Cement Division is cyclical by nature, with an emphasis

on large engineered orders delivering low margins, however
with the ability to generate high returns as a result of negative
net working capital. Additionally, Cement generates business
for the Product Companies Division and provides an installed
base for the Customer Services Division.
Cement in a nutshell
Type of business Engineered, customised Our excellence • Process expertise and

single products project execution
EP projects • Procurement
EPC projects • Full flow-sheet offering
Operation & Maintenance • Engineered products
Business Cyclical business, Business model Global direct sales

characteristics large orders, OEM supplier / technology
negative NWC, provider
low margins In-house R&D and engineering
Outsourced manufacturing
29
Key Innovations
Resource productivity
in focus
Energy
FLSmidth’s future economic results are
not dependent on the success of single

Industry challenge: Urbanisation
innovations but on the continued stream increases waste
of new developments to enhance our Urbanisation and industrialisation are driving the
need for infrastructure, housing and improved living
existing strong offering. In 2015, FLSmidth standards, and by that cement. However, growing
cities and growing middle classes also produce in-
spent DKK 263m on R&D to ensure envi- creasing amounts of household waste and industriali-
sation means increasing amounts of industrial waste.
ronmentally sound solutions to the chal-
Most of this waste ends up either in landfills or in
lenges faced by our customers. unregulated heaps outside cities, where it gives off
methane as it decomposes, and contaminates the soil
and groundwater. Some cities are burning the waste,
The current cycle is predominantly about productivity, driven however, older incinerators are not burning cleanly
by innovation and people competencies. Instead of merely and the conditions and emission abatement (air
buying equipment or islands of equipment, customers buy pollution control) technologies are not sufficient to
performance. We increasingly develop solutions together avoid toxic dioxin pollutants. A poorly run incinerator
with our customers or form partnerships with other industry replaces one environmental problem with another.
process leaders, most recently world leading chemical com-
pany BASF, to ensure a targeted co-development process Cement plants could be used as incinerators, using
with rapidly commercialised products. household- and industrial waste as an alternative
energy source. A cement kiln would be a safe solu-
The combination of FLSmidth’s technical knowledge with tion for societies to get rid of hazardous waste under
best practices in operations enables us to offer industry strictly controlled conditions as the 1,450 °C eliminate
leading service programs that bring us closer to our cus- toxic emissions. All major cement producers have set
tomers, and enable us to continuously develop the lead- ambitious goals of lowering operating cost and re-
ing technologies and equipment critical for the process ducing their CO2 footprint, and the cement industry
flow. We work closely with customers to establish best is increasingly using alternative fuels like household
practices, streamline processes and automate workflows, or industrial waste - with some cement producers
getting the most out of their production. substituting 100% of their traditional energy.
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30
Solution: JETFLEX™ burner
In 2015, FLSmidth continued to develop its lead with- Fuel cost

in pyro technology with the JETFLEX™ burner for al-
ternative fuels, expecting to have results from large- savings of
scale tests in Q1 2016. The JETFLEX™ burner allows
cement producers to substitute a larger share of their between 10-20%
thermal energy consumption (traditionally coal) with
waste-derived fuel, and thereby realize substantial
cost savings and reductions in CO2 emissions. The
of the total
JETFLEX™ burner offers increased flexibility to better
match the requirements of varying fuel quality, and
fuel costs,
thereby achieve a higher fossil fuel substitution.
representing
• Fuel cost savings of between 10-20% of the
total fuel costs, representing around 60% of the around 60% of
cement producers’ total operating costs.
the cement
• Operational cost reduction by lowering the
total plant energy consumption by up to 1% producers’ total
- which for a typical customer adds up to
EUR 50-100,000 per year. operating costs
• The burner design helps reduce the internal wear,
and thus contributes to increasing availability and
reducing overall maintenance costs of the burner.
31
Key Innovations
CO2
Industry challenge: 5% of global CO2 Solution: Low CO2 cement and

emissions come from cement production QCX/BlendExpert
The cement industry is highly energy-intensive, rep- FLSmidth has successfully concluded a 5-year project
resenting 2% of the global energy consumption. The in collaboration with Aarhus University, Aalborg
industry accounts for 5% of global CO2 emissions, as University and Aalborg Portland on developing high
1 kg of cement produced generates 0.8-0.9 kg CO2. quality low-CO2 cement based on calcined clay. Local
The increasing demand for cement will continue clay variants can replace up to 1/3 of the clinker in
and is driven by industrialisation, urbanisation the traditional cement.
and growing middle classes – creating a need for
technologies capable of lowering CO2 per tonne • The effect is a significant CO2 reduction of 25%
of cement produced. per ton cement produced, due to less CO2 emis-
sions from the calcination process and substantial
50% of the CO2 emitted during cement production savings in thermal energy (depending on the
originates from the chemical process called calci- moisture content of the clay raw material).
nation, i.e. when limestone (calcium carbonate) is
heated and broken down into calcium oxide and CO2. • This significantly lowers the operating costs – and
Another 40% comes from the burning of fuels the initial investments are maintained low by using
needed for pyroprocessing and the remaining 10% FLSmidth’s flash calciner technology or adapting
comes from the electricity used to power additional existing rotary kilns to produce calcined clay.
plant machinery and processes.
Within automation, FLSmidth released its QCX/
Currently, the price per emitted tonne of CO2 under BlendExpert software for optimising the blending
the EU Emissions Trading System (EU ETS) system of cement raw materials. The software enables an
is at a historical low, however, governments are increased use of cost-efficient additives replacing raw
increasingly interested in reducing CO2, and cement materials, while maintaining quality. This effect is:
producers receive emission allowances from govern-
ments and EU subsidies for implementing CO2 and • Fuel savings of up to 1.5%
energy reducing initiatives. • Greenfield plant reduction of silo capacity
by ~30%.
The effect is a significant CO2 reduction

of 25% per ton cement produced, due to less
CO2 emissions from the calcining process and
substantial savings in thermal energy
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32
Water & pollution
Industry challenge: When water is both Solution: Colossal AFP filter model 2040
a scarcity and a threat - Dry Tailings System
Mining operations are often located in remote FLSmidth has pilot tested a new filter in collaboration
regions with no easy access to water; around half of with a customer at a copper mine in the driest
all copper mines are located in areas of moderate to dessert in the world, the Atacama Desert in Chile.
high water scarcity. The process water needed for a The FLSmidth filter solution will enable the mine
large copper mine is around 900,000 m3/day which to reuse 80% of its process water. The technology
means that mining operators have to desalinate was proven, but the size and capacity were signifi-
seawater with high investment costs and high energy cantly increased: With an area of two Olympic-sized
costs to pump the water from the coast up to a mine swimming pools, the new filter is the largest filter for
often at several kilometres above sea level. water recovery ever used in the industry, twice the
size of any other filter on the market:
After use, the process water ends up in giant mine
dumps called tailings ponds used to store the waste • The new filter is capable of discharging 20,000 tons
deriving from separating minerals from rocks. of filter cake and recovering 5,000 m3 of process
Worldwide, there are around 3,500 tailings ponds of water - or what equals six Olympic-sized pools
varying sizes – 50 million m3 is not an unusual size. - every day. The filter is part of the combined
The polluted tailings ponds are a risk to the ground solution, recovering a total of 80% of the
water as well as the surrounding environment and process water.
villages. Worldwide, there are several tailings dam
breaches every year. • Additionally, by dewatering the processed ore
waste rock, the filter solution allows the tailings
to be dry-stacked. This allows the polluted tailings
to be disposed of in an environmentally safe way,
making it possible to rehabilitate the site. This
also eliminates the long-term liability that ponds
leave after mining is finished.
FLSmidth’s AFP filter is capable of

discharging 20,000 tons of filter cake and
recovering 5,000 m3 of process water - the equivalent
of six Olympic sized pools - every day
33
Key Innovations
Ore quality
Solution: FLSmidth® Rapid Oxidative

Industry challenge: Transition from Leach process
oxide to sulphide copper ore
In May, FLSmidth announced a technological break-
A copper mine is like an enormous inverted cone through with the FLSmidth® Rapid Oxidative Leach
and the top 5-40 meters consists of oxide copper ore (ROL) process that enables the copper industry to
that is processed with existing heap leach technology maximise the use of existing SX/EW capacity – and
and solvent extraction and electro-winning (SX/EW) thereby ensure revenue to support continued opera-
equipment. The heap leach operation needs to be tion in the economically challenging transition from
consistent and sufficient enough to pay for the heap leaching of oxide ore to mining of sulphide ore.
investments in the mining equipment for the not so
easily accessible deeper lying sulphide copper ore. • The ROL process is easy to install and only
The challenge for the heap leach operations is that requires a low initial investment. It serves as a
the amount of copper in the oxide copper ore heap means to maximising production and improving
is decreasing as copper is dissolved with acid, which performance during a downturn, thus ensuring
means decreasing utilisation of the SX/EW equipment maximum revenue with existing equipment.
and a decreasing revenue.
• By leaching low to mid-grade sulphide concen-
trates, the pregnant liquor solution (PLS – solution
containing concentrate) from the ROL process
can be blended with the PLS from heap leach and
thereby allow maximum cathode copper production
during the transition from oxide to sulphide ore.
• The ROL process is crucial for the large amount

of copper mines in cold climates that usually has
The ROL process enables to shut down up till 4 months every year, making
it an economical challenge for miners to oper-
the copper industry to get ate their mines. The reason is that in winter, the
concentrated liquid nears 0 °C, causing the solvent
more out of existing capacity used to extract copper to become vicious and pre-
venting the copper from being extracted. With the
warm concentrated liquid from the ROL process,
with an unprecedented equipment installed in very cold climates is now
able to operate efficiently throughout the year.
efficient process to handle
difficult ore
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34
Ore quality
Industry challenge: Arsenic will Solution: Co-development of ROL

threaten future copper mines with BASF
For the minerals industry, recovery of usable ore is FLSmidth and the world’s largest chemical producer
becoming increasingly difficult as the quality of the BASF entered a joint development agreement for
ore grade is decreasing and many of the remaining further developing the FLSmidth® Rapid Oxidative
high grade deposits are laced with high levels of toxic Leach process targeting copper ore deposits laced
impurities like arsenic. This requires costly cleaning as with arsenic.
arsenic is a health and safety risk for copper smelters
and most smelters will not process material contain- BASF is the industry leader within chemical inven-
ing 0.5 wt. percentage arsenic in copper concentrate. tions for the copper industry and FLSmidth has the
leading equipment and process technology. FLSmidth
This is not only a challenge for new operations, but focuses on the leach technology, while BASF focuses
also for existing mines as they increasingly encoun- on the solvent extraction of copper and potentially
ter higher arsenic levels or other impurities as they extraction of other impurities allowing quality copper
exploit more marginal sections of their deposits. cathode to be produced by electro-winning.
On the opportunity side: copper minerals high in • The FLSmidth ROL process dissolves copper and
arsenic content are typically associated with high impurities from primary sulphide ores to produce
amounts of gold that is potentially an additional a pregnant liquor solution (PLS).
source of revenue for copper producers. However,
copper must first be separated from gold as chem- • BASF’s technology efficiently extracts copper from
icals used to dissolve gold also react with copper, the PLS.
making gold recovery uneconomical. It is necessary
to sequentially separate copper first as a product, • The process allows the remaining arsenic to be
then arsenic as an impurity, and finally the gold and separated (for safe disposal) so that precious
silver from the leach residue, because the copper metals like gold and silver can be economically
arsenic mineral encapsulates the gold, and the gold recovered from the leach residue.
cannot be dissolved until the copper arsenic mineral
is dissolved. • With this technology, FLSmidth will be active in
the entire value chain in copper processing from
feasibility studies to cathode copper production
(99.9% Cu).
The collaboration with BASF will make it

economically feasible for miners to refine copper
highly polluted with arsenic – and get access to recover
precious metals like gold and silver from the residues
35
Key Innovations
Service
Industry challenge: A decade of decrease Solution: Remote support and

in productivity intelligent wear parts
During the past decade, mining companies have Within the service business, FLSmidth in 2015
invested heavily in ramping up production volumes launched the concept of operational partnership
to meet the demand created by the commodities packages, the first one together with the second
boom driven by China. However, with the focus on largest cement producer in the world, Heidelberg.
increasing volumes, productivity in the same period
decreased by 28%1). • The service package consists of FLSmidth’s global
team of specialists functioning as back-office for
Following the slowdown of the Chinese economy, the Heidelberg operators and process engineers,
the mining industry has been cost-cutting, deferring ensuring a continuous optimisation of the opera-
investments in equipment and creating a backlog tional performance of the plant.
of maintenance. The industry focus has turned to
increasing productivity; producing at the lowest pos- In addition, FLSmidth developed FerroCer, a compos-
sible cost per ton. This radical change of investment ite tile of steel and ceramic components:
focus has increased industry interest in predictive
maintenance in order to increase utilisation rates and • FerroCer increases wear resistance by 400%
minimise downtime. Operation and maintenance compared to traditional wear solutions, thereby
costs (OPEX) for both the minerals and cement in- reducing maintenance downtime and operational
dustry is typically more than 80% of the total cost of expenses.
ownership over plant life.
FerroCer increases wear resistance by 400%

compared to traditional wear solutions, thereby
reducing maintenance downtime and
operational expenses
1)
Source: McKinsey
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36
37
Management’s
Review
Challenging market conditions impacted Financial developments in Q4 2015
Weak order intake in line with same quarter last year,
the financial performance in 2015. Re- reflecting customers’ focus on cash preservation at year-
ported revenue and earnings were in line end. Earnings reflect high volatility and uncertainty related
to oil exporting countries and were impacted by one-off
with the latest Group guidance. Order costs of DKK -89m in Q4 2015 related to market develop-
ments. Marginal improvement in net working capital and
intake increased 7%, supported by cur-
a positive free cash flow led to a further reduction in net
rency developments. Highest free cash interest bearing debt.
flow in six years owing to the divestment Developments in total service activities
of Cembrit. Reduction in net debt of Total service activities in FLSmidth embrace the entire Customer
Services Division, Operation & Maintenance contracts (now
DKK 0.9bn brings the capital structure part of the Cement Division), and the whole service and
aftermarket part of the Product Companies Division. Order
on target. The guidance for 2016 reflects
intake related to total service activities increased 2% in
high market volatility and low visibility. Q4, accounting for 62% of order intake (Q4 2014: 60%).
Group (continuing activities)
DKKm 2015 2014 Change (%) Q4 2015 Q4 2014 Change (%)
Order intake (Gross) 18,490 17,267 7% 3,691 3,734 -1%
Order backlog 14,858 17,726 -16% 14,858 17,726 -16%
Total revenue 19,682 20,499 -4% 5,297 5,627 -6%
Gross profit 4,946 5,125 -3% 1,255 1,265 -1%
Gross profit margin 25.1% 25.0% 23.7% 22.5%
EBITDA 1,878 2,106 -11% 463 493 -6%
EBITDA margin 9.5% 10.3% 8.7% 8.8%
EBITA 1,582 1,823 -13% 384 419 -8%
EBITA margin 8.0% 8.9% 7.2% 7.4%
EBIT 1,141 1,416 -19% 279 274 2%
EBIT margin 5.8% 6.9% 5.3% 4.9%
Number of employees (Group) 12,969 14,765 -12% 12,969 14,765 -12%
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38
Revenue related to total service activities was unchanged in The decline in Q4 was explained by revenue exceeding
Q4, accounting for 53% of Group revenue (Q4 2014: 50%). order intake by some DKK 1.6bn.
Quarterly order intake and order backlog Quarterly revenue and earnings
Order intake in Q4 2015 amounted to DKK 3,691m, represent- Revenue decreased 6% to DKK 5,297m in Q4 2015 (Q4
ing a decrease of 1% (Q4 2014: DKK 3,734m). Although 2014: DKK 5,627m) as a consequence of the low order
the order intake was nearly on par with last year, it was intake in Minerals and Cement the past couple of years.
sequentially down, reflecting high geo-political uncertainty Organic growth was -11%, particularly related to Minerals
and lengthy decision-making and lack of large orders. Foreign and Cement.
exchange translation effects had a positive impact of 4%.
Organic growth was -5%. Revenue developments in Q4 2015
Companies
Revenue
Customer
FLSmidth
Order intake developments in Q4 2015
Minerals
Services
(vs. Q4 2014)
Cement
Product
Group
Companies
Order intake
Customer
FLSmidth
Minerals
Services
(vs. Q4 2014)
Cement
Product
Group
Organic growth -7% -2% -25% -15% -11%
Currency 6% 4% 5% 5% 5%
Organic growth -1% 3% 3% -31% -5%
Total growth -1% 2% -20% -10% -6%
Currency 6% 2% 1% 3% 4%
Total growth 5% 5% 4% -28% -1%

The gross profit amounted to DKK 1,255m (Q4 2014:
DKK 1,265m), corresponding to a gross margin of 23.7%,
No large capital orders were announced in Q4 2015. The which is up from last year (Q4 2014: 22.5%). Gross profit
only announced order was a five-year maintenance service in the quarter was impacted by one-off costs of DKK -64m
contract from the Chilean copper producer, Minera Doña related to efficiency improvement initiatives and business
Ines de Collahuasi. right-sizing including discontinuation of a product line as well
as costs related to O&M contracts in oil-exporting countries.
The order backlog for the Group decreased to DKK (Q4 2014: DKK -121m of which DKK -73m were related
14,858m, 16% down compared to the same period last to now discontinued O&M contract in Nigeria). Adjusted
year (end of 2014: DKK 17,726m), and 11% lower than for one-off costs, the gross margin was 24.9% (2014:
the previous quarter (end of Q3 2015: DKK 16,666m). 24.6%).
Quarterly order intake Quarterly revenue and EBITA margin
DKKm DKKm EBITA-%

6,000 6,000 12%
5,000 5,000 10%
4,000 4,000 8%
3,000 3,000 6%
2,000 2,000 4%
1,000 1,000 2%
0 0 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2014 2014 2014 2015 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 2015
Announced capital orders Revenue EBITA margin

Unannounced orders
39
Management’s Review
Q4 2015 saw total research and development expenditures The EBITA result in Q4 2015 was impacted by one-off costs of
of DKK 75m (Q4 2014: DKK 83m), representing 1.4% of DKK -89m, of which DKK -48m concerned costs and provisions
revenue (Q4 2014: 1.5%), of which DKK 7m was capitalised related to one O&M contract in an oil producing country. The
(Q4 2014: DKK 25m) and the balance reported as produc- underlying EBITA result in Q4 2015 was DKK 473m, equivalent
tion costs. In addition, project financed developments are to an EBITA margin of 8.9% (Q4 2014: 10.1%).
taking place in cooperation with customers and reported as
regular production costs. Amortisation and impairment of intangible assets amounted
to DKK -105m (Q4 2014: DKK -145m) of which the
Sales, distribution and administrative costs, and other op- effect of purchase price allocations related to acquisitions
erating income, etc. amounted to DKK 792m (Q4 2014: accounted for DKK -71m (Q4 2014: DKK -76m).
DKK 772m) equivalent to 15.0% of revenue (Q4 2014:
13.7%). The increase compared to the same period last Earnings before interest and tax (EBIT) increased 2% to
year is related to one-off costs of DKK 25m and curren- DKK 279m (Q4 2014: DKK 274m), corresponding to an
cy developments of DKK 41m. The one-off costs related EBIT margin of 5.3% (Q4 2014: 4.9%).
to bad debt provisions and business right-sizing of DKK
-54m were partly offset by a gain of DKK 29m related to Financial income net amounted to DKK -175m in Q4 2015
sale of property. (Q4 2014: DKK 67m). This amount includes foreign ex-
change and fair value adjustments of DKK -153m (Q4 2014:
Earnings before interest, tax, depreciation and amortisation DKK 85m). Financial costs were adversely impacted by ter-
(EBITDA) decreased 6% to DKK 473m (Q4 2014: DKK mination of ineffective hedges as well as emerging markets
493m), corresponding to an EBITDA margin of 8.7% (Q4 currency volatility.
2014: 8.8%).
Earnings before tax (EBT) decreased to DKK 104m (Q4 2014:
Depreciation and impairment of tangible assets amounted to DKK 341m), and tax for the period amounted to DKK -40m
DKK -73m (Q4 2014: DKK -76m). (Q4 2014: DKK -155m).
Earnings before amortisation and impairment of intangible Profit from discontinued activities amounted to DKK -41m
assets (EBITA) amounted to DKK 384m (Q4 2014: DKK 419m), (Q4 2014: DKK 60m), and profit for the period decreased to
corresponding to an EBITA margin of 7.2% (Q4 2014: 7.4%). DKK 23m (Q4 2014: DKK 246m).
One-off costs (DKKm) Q4’15 Q4'14 2015 2014
Efficiency programme/Business right-sizing -70 -28 -151 -88
Gain on assets sold 29 0 34 0
Costs & provisions related to O&M contracts -48 -90 -121 0
Bad debt provisions Q2’15 (Chapter 11 filings) 0 0 -83 0
Other 0 -29 0 -87
Total one-off costs -89 -147 -321 -175
Impact on Gross profit -64 -121 -201 -57
Impact on SG&A costs -25 -26 -120 -118
Gross margin reported 23.7% 22.5% 25.1% 25.0%
Gross margin adjusted for one-off costs 24.9% 24.6% 26.2% 25.3%
SG&A ratio 15.0% 13.7% 15.6% 14.7%
SG&A ratio adjusted for one-off costs 14.5% 13.3% 15.0% 14.2%
EBITA margin reported 7.2% 7.4% 8.0% 8.9%
EBITA margin adjusted for one-off costs 8.9% 10.1% 9.7% 9.7%
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40
Quarterly cash flow developments and Cash flow from investing activities amounted to DKK 20m
net working capital in Q4 2015 (Q4 2014: DKK -217m), of which DKK 52m was
Cash flow from operating activities amounted to DKK 148m related to disposal of property. The free cash flow (cash flow
in Q4 2015 (Q4 2014: DKK 739m), of which DKK 333m from operating activities less cash flow from investing activi-
were related to continuing activities. ties) amounted to DKK 168m in Q4 (Q4 2014: DKK 522m).
Net working capital for the continuing activities de-

Quarterly net working capital
creased sequentially by DKK 43m in the fourth quarter to
DKK 2,583m (Q3 2015: DKK 2,626m) despite a positive
DKKm
currency effect of DKK 70m, which means that there was
3,000
an underlying improvement of DKK 113m in the quarter.
The improvement originated predominantly from net 2,500
work-in-progress, inventory and trade payables, however 2,000

partly offset by a decrease in net prepayments and an
1,500
increase in trade receivables. Thus, the high revenue
in Q4 was a result of a lot of shipments and invoicing, 1,000
which meant that significant amounts of work-in-pro-
500
gress were advanced to trade receivables and trade
payables in the quarter. 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2014 2014 2014 2015 2015 2015 2015
Net working capital
41
Financial results for 2015 Order intake developments in 2015
Order intake
Growth efficiency
Companies
(vs. 2014)
Customer
FLSmidth
Minerals
Services
Declining commodity and oil prices had a detrimental impact
Cement
Product
Group
on investments in the cement and minerals industries in
2015. As a consequence, anticipated new orders were de-
layed which had an adverse impact on both order intake and Organic growth -11% 4% 18 % -11% -2%
revenue. Order intake increased 7% in 2015, while revenue Currency 9% 7% 13% 6% 9%
declined 4%. Both were positively impacted by currency
Total growth -2% 11% 31% -5% 7%
translation effects, which meant that revenue came out at
the top of the guided range. The Customer Services and
Product Companies divisions have been fairly resilient, The level of unannounced orders has been hovering around
however not immune, to market headwinds. DKK 4bn per quarter the last couple of years with a tendency
to slide in the fourth quarter.
Developments in total service activities
Total service activities in FLSmidth embrace the entire The order intake in Cement has been disappointing in 2015.
Customer Services Division, Operation & Maintenance More large orders were expected to come up for tender
contracts (now part of the Cement Division) and the whole and to become effective in 2015. The cement industry is still
service and aftermarket part of the Product Companies challenged by low utilisation rates in certain regions, and the
Division. Order intake related to total service activities was low oil price is hindering growth in oil exporting countries.
unchanged in 2015, accounting for 52% of Group order Additionally, tender and negotiation processes have been
intake (2014: 56%). Revenue related to total service activ- dragging out due to financing issues.
ities increased 7% in 2015, accounting for 55% of Group
revenue (2014: 50%). The order intake in Customer Services declined 11% organi-
cally in 2015. If adjusted for internal transfer of small upgrade
Order intake and order backlog projects from Customer Services to the Cement Division at the
The order intake increased 7% to DKK 18,490m (2014: beginning of the year, and for order intake in 2014 related to
DKK 17,267m) due to a positive impact from currency the discontinued Nigerian O&M contract, the organic growth
translation of 9%. Organic growth was -2%, which in Customer Services would have been close to zero in 2015.
is explained by declining order intake in Cement and Geographically, the picture is relatively dispersed, with most
Customer Services. regions seeing stable developments, whereas others, such as
Australia and Russia remain subdued.
Order intake Order backlog and book-to-bill ratio Revenue
DKKm Growth DKKm Book-to-bill ratio* DKKm Growth

100% 30,000 1.5 25%
30,000 30,000
20%
25,000 75% 25,000 1.2 25,000 15%
10%
20,000 50% 20,000 20,000
0.9 5%
15,000 25% 15,000 15,000 0%

0.6 -5%
10,000 0% 10,000 10,000
-10%
0.3 -15%
5,000 -25% 5,000 5,000
-20%
0 -50% 0 0.0 0 -25%

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Order intake Growth Order backlog Book-to-bill Revenue Growth
*) Book-to-bill ratio definition: order backlog relative to revenue
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42
An organic order intake growth of 18% in Minerals in 2015 Revenue 2015 – by segment
is contradictory to the general sentiment and developments
Cement 19%
in the mining industry. However, it is reflecting that the large
greenfield projects disappeared already years ago, whereas Customer Services 36%
the miners’ interest in smaller productivity enhancing invest-
ments is on the rise.
Product Companies 28%
Cement is still the most important industry for FLSmidth, Minerals 17%
accounting for 32% of Group order intake in 2015. Copper

is the most important mineral, accounting for 17% of order
intake. 29% of order intake came from adjacent industries,
such as other base metals, power, steel, etc.
Revenue 2015 – by geography
The order backlog for the Group decreased 16% in 2015
Australia 6%
to DKK 14,858m (end of 2014: DKK 17,726m), negatively Europe 10%
impacted by DKK 2.5bn related to the discontinuation of an North America 26%
O&M contract in Q1 as well as scope changes and run-off
on long-term O&M contracts during the year. 69% of the
backlog is expected to be converted to revenue in 2016, 17% Asia 21%
in 2017, and 14% in 2018 and beyond. The conversion time South America 19%
from order intake to revenue is 12-18 months on average – Africa 18%
ranging from over-the-counter sale of consumables to capital

projects with 2-3 years’ execution time. As an increasing share
of orders come from service and product business, the conver-
sion time from order intake to revenue gets shorter. Revenue 2015 – by country category
Progress is still being made in relation to the material handling

BRIC countries 16%
legacy order backlog. Seven projects are still regarded as
risky (end of 2014: nine projects). These projects accounted
for DKK 147m in the order backlog at the end of Q4 2015 Developing countries
(excl. BRIC) 50%
(end of Q4 2014: DKK 208m).
High income countries 34%
Two of these projects and the vast majority of the remaining
backlog are related to the bulk material handling classified
as discontinued activities.
EBITA and EBITA margin Order intake 2015 – by industry
Adjacent 29%
DKKm EBITA margin
3,000 14% Cement 32%
12%
2,500
10%
2,000 Copper 17%
8% Gold 7%
1,500 Coal 8%
6% Iron ore 5%
1,000 Fertilisers 2%
4%
500 2%
0 0%
2011 2012 2013 2014 2015
EBITA EBITA margin
43
Revenue of DKK 275m and one-off costs of DKK 120m. The one-off
Revenue decreased 4% to DKK 19,682m in 2015 (2014: costs related to bad debt provisions, business right-sizing/
DKK 20,499m), as a consequence of a lower order backlog efficiency programmes and sale of property. Adjusted for
at the beginning of the year, which could not be compensat- one-off costs, the cost percentage (SG&A ratio) was 15.0%
ed for by the 7% increase in order intake. Organic growth in 2015 (2014: 14.2%).
was negative in all divisions, and in Minerals in particular.
Earnings before interest, tax, depreciation, amortisation and
Revenue developments in 2015 impairment (EBITDA) decreased 11% to DKK 1,878m (2014:
DKK 2,106m) corresponding to an EBITDA margin of 9.5%
Companies
Revenue
Customer
FLSmidth
Minerals
(2014: 10.3%).
Services
(vs. 2014) Cement

Product
Group
Earnings before amortisation and impairment of intangible
Organic growth -7% -4% -35% -7% -12% assets (EBITA) decreased 13% to DKK 1,582m (2014: DKK
1,823m), corresponding to an EBITA margin of 8.0% (2014:
Currency 10% 7% 7% 6% 8%
8.9%). Adjusted for one-off costs of DKK 321m, the EBITA
Total growth 3% 3% -28% -1% -4%
margin was 9.7% in 2015 (2014: 9.7%).
Profit efficiency Amortisation and impairment of intangible assets amounted

Challenging market conditions in the global mining and to DKK -441m (2014: DKK -407m). The effect of purchase
cement industries required a changed risk assessment over the price allocations amounted to DKK -284m (2014: DKK
summer resulting in bad debt provisions and higher anticipat- -304m) and other amortisations to DKK -157m (2014: DKK
ed costs in 2015. As a consequence of the market develop- -103m). The higher amortisations than last year relate to the
ments and the reclassification of Bulk Material Handling as increased use of ERP/Business systems.
discontinued activities, the full year EBITA margin guidance
was lowered from originally 9-10% to 7.5-8.5%. The year Earnings before interest and tax (EBIT) amounted to
ended at the midpoint 8.0%, and included one-off costs of DKK 1,141m (2014: DKK 1,416m) corresponding to an
DKK 321m, equivalent to 1.7% points on the EBITA margin. EBIT margin of 5.8% (2014: 6.9%).
The gross profit amounted to DKK 4,946m (2014: DKK Net financial costs amounted to DKK -256m (2014: DKK
5,125m), corresponding to a gross margin of 25.1%, which -137m), of which foreign exchange and fair value adjust-
is on a par with last year (2014: 25.0%). The gross margin ments amounted to DKK -194m (2014: DKK -69m). Financial
was negatively impacted by one-off costs of DKK -201m costs were adversely impacted by termination of ineffective
related to efficiency improvement initiatives and business hedges as well as emerging markets currency volatility.
right-sizing as well as the discontinuation of an O&M con- Net interest costs amounted to DKK -62m (2014: DKK -87m).
tract in Nigeria in the spring (2014: DKK -57m). Adjusted for
one-off costs, the gross margin was 26.2% (2014: 25.3%). Earnings before tax (EBT) decreased to DKK 885m (2014:
DKK 1,279m).
2015 saw total research and development expenses of DKK
263m (2014: DKK 327m), representing 1.3% of revenue The tax for the year amounted to DKK -282m (2014: DKK
(2014: 1.6%), of which DKK 46m was capitalised (2014: -398m) corresponding to an effective tax rate of 32%
DKK 106m) and the balance reported as production costs. (2014: 31%).
In addition, project financed developments take place in
cooperation with customers. Profit/loss from discontinued activities amounted to DKK
-178m (2014: DKK -68m) related to the bulk material hand
Sales, distribution and administrative costs and other operat- ling activities, that was announced for sale in connection
ing income amounted to DKK 3,068m in 2015, which repre- with the third quarter interim report. The negative result is
sents a cost percentage of 15.6% of revenue (2014: 14.7%) a function of impairment write-down, restructuring and an
and a 2% increase on 2014 (2014: DKK 3,019m).SG&A operating loss.
costs were negatively impacted by currency developments
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44
Profit/loss for the year decreased to DKK 425m (2014: earnings and negative impact from change in net working
DKK 813m). capital, however partly offset by a more positive or less
negative cash impact from provisions, financial payments
Capital efficiency and taxes paid.
With capital employed around DKK 15bn, reaching the long-
term target of more than 20% return on capital employed Net working capital (continuing activities) amounted
(ROCE) requires an increase in EBITA to around DKK 3bn to DKK 2,583m at the end of 2015, which represents
through a combination of top-line growth and margin a significant improvement in the second half of 2015,
expansion. While the long-term target for ROCE was not but an increase of DKK 0.3bn in 2015 (end of 2014:
attained in 2015, the targets for the capital structure were. DKK 2,276m). Currency developments accounted for
The equity ratio is now above 30% and the financial gear- DKK 133m of the increase. The net working capital ratio
ing (NIBD/EBITDA) is now below two. amounted to 12.3% in 2015 (2014: 10.5%). The ambi-
tion is that the net working capital ratio should not ex-
Capital employed and ROCE ceed 10% of sales at any point in the cycle, and in times
Average capital employed increased DKK 0.2bn to when project business is predominant, net working capital
DKK 15.2bn in 2015 (2014: DKK 15.0bn), while EBITA should even be low single digit. Each of the divisions have
decreased to DKK 1,582m (2014: DKK 1,823m). As a been given specific net working capital targets, reflecting
consequence, ROCE decreased to 10% (2014: 12%). their respective business models.
Capital employed consists primarily of intangible assets Although the total net working capital did not change
amounting to DKK 10.1bn (average) which is mostly his- significantly in 2015, the composition did. Most notably,
torical goodwill as well as patents and rights, and customer prepayments (net) declined by DKK 0.6bn, as a conse-
relations. Tangible assets account for DKK 2.6bn and net quence of few large orders and execution of the order
working capital for DKK 2.6bn, which leaves little room for backlog, which increased net working capital, but was
significant reductions in capital employed. partly offset by a decrease in trade receivables of DKK 0.1bn
and in inventories of DKK 0.2bn.
Cash flow developments and net working capital
Cash flow from operating activities amounted to DKK Overdue receivables are still a major focus area and progress
538m in 2015 (2014: DKK 1,298m), of which DKK 991m was made in 2015. Long overdue receivables (more than
were related to continuing activities (2014: DKK 1,335m). 60 days) decreased to DKK 1.1bn (end of 2014: DKK 1.4bn),
The decline on last year is explained by lower operational representing 23% of total receivables (end of 2014: 28%).
Capital Employed and ROCE *) Cash flow from operating activities Net working capital (NWC) *)
DKKm DKKm DKKm % of revenue

20,000 20% 2,000 3,000 15%
2,500 12%
1,500
15,000
15% 2,000
1,000 9%
10,000 1,500
500 6%
10% 1,000
5,000
0 3%
500
0 5% -500 0 0%
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Capital Employed ROCE Cash flow from operating activities Net working capital NWC/Revenue
*) Excl. Cembrit *) Excl. Cembrit
45
Investing in the business Net interest-bearing debt by the end of 2015 amounted to
After years on an acquisitive trajectory, investments have DKK 3,674m (end of 2014: DKK 4,593m) and the financial
been held at a low level in the past three years as a response gearing amounted to 2.0 at the end of 2015 (end of 2014:
to changed market conditions. It is management’s belief that 2.2). The gearing is now in line with Management’s targeted
in a cyclical downturn, the level of cash flow from invest- capital structure of maximum two times EBITDA.
ments (excluding acquisitions and divestments) should be
below the level of depreciation and amortisation (excluding The available capital resources consist of committed credit
amortisations related to purchase price allocations), amount- facilities at a total of DKK 8.3 bn (end of 2014: DKK 8.3bn)
ing to roughly DKK 0.4bn in 2015. with a weighted average maturity of 4.5 years (end of 2014:
4.0 years).
Cash flow from investing activities amounted to DKK 750m
in 2015 (2014: DKK -598m), including cash flow related It is FLSmidth’s policy to pay out 30-50% of the year’s profit
to acquisition and disposal of enterprises and activities of as dividend, and the Board of Directors proposes to the
DKK 873m, predominantly related to the divestment of Annual General Meeting that a dividend of DKK 4 per share
Cembrit. Investments excluding acquisitions and divestments (2014: DKK 9) be distributed, corresponding to a total cash
amounted to DKK -123m, which is below the guidance for distribution of DKK 205m, a pay-out ratio of 49% and a
2015 of DKK -0.3bn. dividend yield of 1.7% (2014: 3.3%). (Please see page 69
for further information about capital allocation).
The free cash flow (cash flow from operating activities
less cash flow from investing activities) amounted to Corporate governance and organisation
DKK 1,288m in 2015 (Q4 2014: DKK 700m). The following information is provided pursuant to Section
107a in the Danish Financial Act:
Balance sheet, capital structure and dividend
The balance sheet total amounted to DKK 24,362m at the • The share capital amounts to DKK 1,025,000,000 con-
end of 2015 (end of 2014: DKK 26,352m). As announced sisting of 51,250,000 issued shares at DKK 20 each. Each
in connection with the Q3 interim report, the bulk mate- share entitles the holder to 20 votes. No special rights are
rial handling activities have been classified as assets held attached to any share and there are no restrictions on the
for sale. transferability of the shares
• The members of the Board elected at the Annual General
Equity at the end of 2015 increased to DKK 7,982m (2014: Meeting retire at each Annual General Meeting. Re-election
DKK 7,761m), and the equity ratio increased to 33% at the may take place. The Nomination Committee identifies and
end of 2015 (2014: 29%). Dividend distributed to share- recommends candidates to the Board of Directors
holders in 2015 amounted to DKK 439m.
Equity and equity ratio NIBD and financial gearing *) Free cash flow
DKKm DKKm DKKm

10,000 40% 5,000 5 1,500
35% 1,000
8,000 4,000 4
30% 500
0
25% 3
6,000 3,000
-500
20%
-1,000
4,000 15% 2,000 2
-1,500
10%
2,000 1,000 1 -2,000
5% -2,500
0 0% 0 0 -3,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Equity Equity ratio NIBD Financial gearing Cash flow from acquisitions & disposals
Free cash flow excl. acquisitions & disposals
*) Excl. Cembrit
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46
• The Board of Directors is authorised until 1 April 2018 Long-term incentive plan (LTIP)
to increase the share capital by issuing new shares in Share option plans
one or more tranches at a total nominal value of DKK At the end of 2015, there were a total of 2,922,579 unexer-
100,000,000 – with or without pre-emption rights for the cised share options under FLSmidth’s incentive plan and the
company’s existing shareholders fair value of them was DKK 88m. The fair value is calculated
• The Board of Directors is authorised until the next Annu- by means of a Black & Scholes model based on a current share
al General Meeting to let the Company acquire treasury price of 240, a volatility of 32.47% and annual dividend of
shares up to a total nominal value of 10% of the Com- DKK 9 per share for 2016 and onwards. The effect of the plan
pany’s share capital pursuant to Section 12 of the Danish on the income statement for 2015 was DKK 43m (2014: DKK
Companies Act 43m). Please see note 30 to the consolidated financial state-
• The adoption of a resolution to amend the Company’s ments for further information. In accordance with the guide-
Articles of Association or to wind up the Company requires lines for incentive pay adopted by the Annual General Meeting
that the resolution is passed by not less than two thirds of in 2015, the current share option program will be phased out.
the votes cast as well as of the share capital represented at
the General Meeting Performance shares
• The Executive Management and a number of key employ- In accordance with the guidelines for incentive pay adopted
ees in the Group have been granted options to purchase by the Annual General Meeting in 2015, a long-term
2,922,579 shares in the Company at a set price (strike incentive scheme based on conditional shares (performance
price). The Group’s share option plan includes a ”change of shares) is being introduced. The primary purpose of the
control” clause giving the holders the right to immediately programme is retain key staff and to align the interests of
exercise their options in connection with an acquisition shareholders and participants, and thus to reward per-
• In the event of dismissal, the Group Executive Management formance in accordance with the long-term strategy and
has 18 months’ notice and shall receive up to six months’ financial targets.
salary on the actual termination of their employment
The programme will be yearly revolving with grants in
The statutory statement on corporate governance February in connection with the Annual Report. The vesting
pursuant to Section 107b of the Danish Financial period is three years and will depend on fulfilment of
Statements Act is available on the company’s website stretched targets based on achievement of KPIs calculated as
http://www.flsmidth.com/governance_statement. three-year-averages. Full vesting of the performance shares
will require fulfilment of stretched targets, meaning perfor-
Group Executive Management’s trading in mance above the set targets. If a minimum threshold for
FLSmidth shares financial performance is not met, there will be no vesting.
At the end of 2015, the members of the Group Executive
Management held a total of 8,438 shares (end of 2014: The Board of Directors has today decided to grant perfor-
5,922 shares), and the members of the FLSmidth & Co. A/S mance shares to the Executive Management and key staff
Board of Directors held a total of 27,520 shares (end of (140 persons). The cost of the programme in 2015 is DKK
2014: 25,110 shares). 45m. The maximum number of shares granted will be cal-
culated on the basis of the average closing price of the first
In 2015, Thomas Schulz acquired 2,000 shares (shareholding five trading days after the publication of this report (12-18
end of 2015: 4,510 shares) and Lars Vestergaard acquired February 2016). The applicable long-term financial targets
311 shares (shareholding end of 2015: 1,341 shares) related to the grant are: EBITA margin and net working
capital ratio.
Treasury shares
FLSmidth’s treasury share capital amounted to 2,327,928 Corporate social responsibility
shares at the end of 2015 (end of 2014: 2,412,491 shares) FLSmidth has submitted a progress report to the UN Global
representing 4.5% of the total share capital (end of 2014: Compact on 11 February 2016. The progress report replac-
4.8%). The holding of treasury shares is adjusted continuously es a statutory statement on corporate social responsibility
to match FLSmidth’s long-term incentive plans. pursuant to the exemption given in the Danish Financial
Statements Act Section 99a. The report can be accessed on
http://www.flsmidth.com/CSRreport2015.
47
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48
Employees Human resource data

FLSmidth is a learning organisation, and our people are
our most valuable resource. In 2015, we have continued to
Age distribution
invest heavily in people development and leadership training
with a strong emphasis on selecting, attracting, developing 5%
21% <30 years
and retaining the right people to support value creation in 15%
30-39 years
the Group.
40-49 years
50-59 years
The global organisation has been heavily impacted by the 24% >59 years
cyclical downturn and the changed market conditions 35%
over the last three years. In 2015, this called for efficiency
improvements and business right-sizing activities in the
Minerals Division in particular. Length of service
The number of employees amounted to 12,969 by the end

22% 22% <2 years
of 2015, representing a decrease of 12% compared to last
2-4 years
year (end 2014: 14,765). The decline is primarily explained
5-10 years
by the sale of Cembrit as well as business right-sizing in the >10 years
Minerals Division and in connection with O&M contracts. 24%
The composition of the global workforce was more or less 32%
unchanged in 2015. 56% of FLSmidth’s employees were

below the age of 40 at the end of 2015 (end of 2014:
55%). 78% of the employees have more than 2 years’
Job function
seniority (2014: 75%). 13% of FLSmidth’s permanently
employed staff is female (end of 2014: 14%). The relatively
Technical and
low proportion of females is explained by the fact that males Engineering
continue to be overrepresented in the engineering profes-
47% Sales, Administration,
sion and among engineering students. 53% Management, etc.
Risk management
Reference is made to pages 62-65 in this Annual Report for
a more detailed description of the company’s commercial
risks and risk management, which is part of the Manage-
Geographical distribution
ment’s Review.
9%
Denmark
29% 16% USA
Number of employees *)
India
Chile
5%
Egypt
7% 24%
18,000
South Africa
10%
15,000 Other
12,000
Gender
9,000
13%
6,000 Men
Women
3,000
0
2011 2012 2013 2014 2015
Number of employees 87%
*) Including discontinued activities
49
Guidance for 2016 Although the long-term targets for ROCE and EBITA margin
are not expected to be achieved in 2016, it is clearly the am-
Guidance1) Realised Guidance bition to reach the long-term targets by gradually improving
DKK 2015 2015 2016 profitability (EBITA margin) and capital efficiency (Revenue/
Revenue*) 19-20bn 19.7bn 17-20bn Capital employed).
EBITA margin 7.5-8.5% 8.0% 7-9% The long-term financial targets by division are as follows:
ROCE 10-12% 10% 8-10%
Growth EBITA% Net working
Tax rate 31-33% 32% 29-31% (over the (over the capital (as pct.
cycle) cycle) of revenue)
CFFI**) -0.3bn -0.1bn -0.4bn
Customer Services 5-10% >15% 15-20%
*) at prevailing currency rates
**) excluding acquisitions and divestments of enterprises and activities
1)
Last updated on 12 November 2015.
Product Companies 5-10% 12-15% ~15%
Minerals 5-6% 3-8% Negative

The Group guidance for 2016 reflects the current high mar-
Cement 3-5% 3-8% Negative
ket volatility and low visibility. In such an environment, the
risk of unforeseen events and surprises is very high, which
has been taken into account. As the year progresses and Please see page 54-61 for more information about the divi-
visibility increases, the guidance will most likely be narrowed. sional long-term targets.
With respect to the divisional performance, it is clear that Events occurring after the balance sheet data
2016 will be another challenging year for the two project As announced on 21 January 2016, FLSmidth has been
divisions, Minerals and Cement, considering their low order informed that Novo A/S on behalf of Novo Nordisk Fonden
backlog at the beginning of the year as well as the current holds a total of 7,700,000 FLSmidth & Co. A/S shares, which
low market activity, resulting in increasing pricing pressure. corresponds to 15.02% of the total nominal share capital in
As a consequence, the EBITA margins in 2016 for both the FLSmidth & Co. A/S.
Cement and Minerals Divisions are expected to be below
their long-term financial target of 3-8%. As announced on 31 January 2016, FLSmidth has signed
a five year contract with Arabian Cement Company (ACC)
The Product Companies and the Customer Services Divisions for operation and maintenance of the production lines at
are expected to show flattish developments in 2016, depend- their cement plant located near the city of Suez in Egypt.
ing on market and currency developments in the year. FLSmidth has been operating and maintaining the two lines
since 2008 and 2010, respectively.
Long-term financial targets
The long-term financial targets for the FLSmidth Group As announced on 2 February 2016, FLSmidth has been in-
remain unchanged: formed that Morgan Stanley, USA controls a total of 6.43%
of the voting rights attached to FLSmidth & Co. A/S shares.
Annual growth in revenue: Above the market average
As announced on 5 February 2016, FLSmidth has been
EBITA margin 10-13%
informed that Morgan Stanley, USA, no longer controls more
ROCE >20% than 5% of the voting rights attached to FLSmidth & Co. A/S
Tax rate 32-34% shares.
Financial gearing (NIBD/EBITDA) <2
As announced on 8 February 2016, FLSmidth has receved an
Equity ratio >30%
EPC contract with a value of more than EUR 200m from the
Pay-out ratio 30-50% of the profit
Algerian cement producer SARL Amouda Engineering.
for the year
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50
Forward-looking statements ward-looking statements involve inherent risks and uncer-

FLSmidth & Co. A/S’ financial reports, whether in the form tainties, both general and specific, which may be outside
of annual reports or interim reports, filed with the Danish FLSmidth & Co. A/S’ influence, and which could materially
Business Authority and/or announced via the company’s affect such forward-looking statements.
website and/or NASDAQ OMX Copenhagen, as well as any
presentations based on such financial reports, and any other FLSmidth & Co. A/S cautions that a number of important
written information released, or oral statements made, to factors, including those described in this report, could cause
the public based on this annual report or in the future on actual results to differ materially from those contemplated in
behalf of FLSmidth & Co. A/S, may contain forward-looking any forward-looking statements.
statements.
Factors that may affect future results include, but are not
Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, limited to, global as well as local political and economic
‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘antici- conditions, including interest rate and exchange rate fluc-
pate’, ‘can’, ‘intend’, ‘target’ and other words and terms of tuations, delays or faults in project execution, fluctuations
similar meaning in connection with any discussion of future in raw material prices, delays in research and/or devel-
operating or financial performance identify forward-looking opment of new products or service concepts, interrup-
statements. Examples of such forward-looking statements tions of supplies and production, unexpected breach or
include, but are not limited to: termination of contracts, market-driven price reductions
for FLSmidth & Co. A/S’ products and/or services, intro-
• Statements of plans, objectives or goals for future opera- duction of competing products, reliance on information
tions, including those related to FLSmidth & Co. A/S’ technology, FLSmidth & Co. A/S’ ability to successfully
markets, products, product research and product market current and new products, exposure to product
development. liability and legal proceedings and investigations, changes
• Statements containing projections of or targets for in legislation or regulation and interpretation thereof,
revenues, profit (or loss), capital expenditures, dividends, intellectual property protection, perceived or actual failure
capital structure or other net financial items. to adhere to ethical marketing practices, investments in
• Statements regarding future economic performance, fu- and divestitures of domestic and foreign enterprises, unex-
ture actions and outcome of contingencies such as legal pected growth in costs and expenses, failure to recruit and
proceedings and statements regarding the underlying retain the right employees and failure to maintain a culture
assumptions or relating to such statements. of compliance. Unless required by law FLSmidth & Co. A/S
• Statements regarding potential merger & acquisition is under no duty and undertakes no obligation to update or
activities. revise any forward-looking statement after the distribution
of this annual report.
These forward-looking statements are based on current
plans, estimates and projections. By their very nature, for-
51
FLSmidth in society
Corporate
social responsibility
FLSmidth has submitted a progress report to the UN Global Compact on
11 February 2016. The progress report replaces a statutory statement
of corporate social responsibility pursuant to the exemption given in the
Danish Financial Statements Act Section 99a. The report is available on
www.FLSmidth.com/CSRreport2015.
Sustainability reporting at a glance
SOCIAL PERFORMANCE 2012 2013 2014 2015
Employees 15,900 15,317 14,765 12,969
Gender – % female employees 16% 15% 14% 13%
Gender – % female managers 9.2% 10.5% 10.3% 9.7%
Safety training hours (per employee) 5.7 7.6 10.0 12.0
Fatalities 1 2 0 0
Lost time injury frequency rate (LTIFR) 4.7 3.9 2.7 1.8
FLSmidth sites audited 12 28 28 25
ENVIRONMENTAL PERFORMANCE 2012 2013 2014 2015
Scope 1 – CO2 (tonnes) 27,600 24,000 12,700 13,460
Scope 2 – CO2 (tonnes) 54,500 59,000 33,100 33,450
Scope 3 – CO2 (tonnes) 39,800 37,400 32,200 31,377
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52
Development in lost time injury frequency rate

LTIFR
5 4.7
4.2
4 3.9
3 2.7
2 1.8
0
2011 2012 2013 2014 2015
Number of lost time injuries per million working hours
FLSmidth operates in about

50 countries all over the world
53
Divisional performance in 2015
Customer Services
Market developments In cement, customer inquiries are primarily on parts, small
In Q4, Customer Services saw a steady level of cement- retrofits projects, and preventative maintenance services. In
related inquiries and a somewhat lower level of mining- some regions, like North America, customers focus mainly
related inquiries. on production maximisation, whereas the key focus in other
regions, like South America and the Middle East, is cost effi-
The lower commodity prices are impacting customer spend- ciency. Both the cement and minerals industries are showing
ing behaviour and several customers have advised that they increasing interest in improved total cost of ownership and
have deferred maintenance work and spare part purchases asset management solutions.
from Q4’15 to 2016. Also, certain miners appear to manage
short-term cash flow by operating machineries well past Cement-related activities saw a steady development in North
recommended service intervals which is raising concerns America, Europe, Middle East, East Africa and parts of Asia,
of costly breakdowns. This is not sustainable practice and however, in some cases, M&A activity has caused decision
deferrals are expected to translate into service business in times to lengthen. In India, activities are cautiously picking
the first half of 2016. up, while the Russian and Brazilian markets remain sluggish
affected by lower oil and gas prices.
The primary focus areas of miners are smaller sized spare
parts orders directly tied to operations and services such Financial performance in Q4 2015
as plant equipment audits to optimise plant performance. Order intake in Q4 2015 was DKK 1,655m, representing
The Americas, especially South America, are still the most an increase of 5% compared to Q4 2014 (Q4 2014: DKK
active markets, while Australia and Russia remain sub- 1,580m) and a sequential increase of 8%. Adjusted for cur-
dued. Overall demand for minerals maintenance contracts rency effects, the order intake decreased 1% despite some
is unchanged. Some customers are evaluating scope customers deferring maintenance and spare part purchases
reductions as a result of tough market conditions while from the fourth quarter to 2016.
others see maintenance contracts as a means to mitigate
risks in the current environment. The announcement of a The order backlog declined 31% from DKK 3,575m in Q4
large five-year minerals maintenance contract in Chile in 2014 to DKK 2,469 in Q4 2015, primarily as a result of the
Q4 is a good example of the latter. discontinued O&M contract in Q1 (impact of DKK -671m)
Customer Services
Order intake (Gross) 6,710 6,847 -2% 1,655 1,580 5%

Order backlog 2,469 3,575 -31% 2,469 3,575 -31%
Total revenue 7,294 7,061 3% 1,920 1,938 -1%
Gross profit 2,109 1,982 6% 567 437 30%
EBITDA 1,056 1,060 0% 305 222 37%
EBITDA margin 14.5% 15.0% 15.9% 11.5%
EBITA 951 968 -2% 279 197 42%
EBITA margin 13.0% 13.7% 14.5% 10.2%
EBIT 790 827 -4% 240 150 60%
EBIT margin 10.8% 11.7% 12.5% 7.7%
Number of employees 4,731 4,473 6% 4,731 4,473 6%
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54
and internal transfer of new small upgrade projects from Long-term financial targets
Customer Services to the Cement Division. The Customer Services Division is targeting an EBITA margin
above 15% (2015: 13.0%) and an annual revenue growth
Revenue decreased 1% to DKK 1,920m (Q4 2014: DKK of 5-10% over the cycle (2015: 3%). The targeted margin
1,938m) and declined 7% adjusted for currency effects. is expected to be achieved through a better product mix,
EBITA increased 42% to DKK 279m (Q4 2014: DKK 197m) where focus is on activities that will maximise customers’
and the EBITA margin increased to 14.5% (Q4 2014: installed base availability and return on assets. Growth is
10.2%). EBITA in Q4 2014 was impacted by the delayed expected to be supported by market developments and
start-up of the above-mentioned O&M contract which was organic growth initiatives such as globalisation of service
discontinued in the subsequent quarter. offerings and concentration of product line management on
productivity focused solutions.
Financial performance in 2015
The full year results reflect varying market conditions and For information about the divisional offerings and business
performance across commodities and geographies. Some model, see Strategy and business model, page 26.
local markets and segments are displaying solid growth and
good performance, while others are challenged.
Order intake in 2015 was DKK 6,710m, representing a

decrease of 2% (2014: DKK 6,847m) and a decline of 11%
adjusted for currency effects. If adjusted for internal transfer
of new small upgrade projects from Customer Services to the
Cement Division at the beginning of the year and for order
intake in 2014 related to the now discontinued Nigerian FACTS
O&M contract, the organic growth in Customer Services
Long-term financial targets:
would have been close to zero from 2014 to 2015.
5-10% annual revenue growth

Revenue increased 3% to DKK 7,294m (2014: DKK 7,061m) (over the cycle)
but declined 7% adjusted for currency effects. Whereas
gross profit and gross margin saw a slight increase from EBITA margin > 15%
2014 to 2015, EBITA decreased 2% to DKK 951m (2014:
NWC 15-20%
DKK 968m) and the EBITA margin declined to 13.0% (2014:
13.7%).
DKKm DKKm EBITA-%

2,000 2,000 20%
1,500 1,500 15%
1,000 1,000 10%
500 500 5%
0 0 0%
2014 2014 2014 2014 2015 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 2015
Order intake Revenue EBITA margin
55
Product Companies
Market developments services, they are not completely immune to changes in
Overall, Product Companies Division saw a stable market demand for new equipment and capex investments by the
development in 2015, including the fourth quarter. Cement- cement and minerals industries. As such, both order intake
related activities are steady and the market continues to and revenue will fluctuate from quarter to quarter, although
show signs of an early recovery, whereas the minerals mar- with significantly less amplitude than the project business.
ket is impacted by the lower commodity prices and political
instability in the Middle East. The product business related Regional activity differs greatly between the different
to new cement and minerals projects remains subdued, product brands. Overall, the US cement market continues
whereas other product and aftermarket activities are holding to show good activity, whereas the US minerals market is
up well. The number of inquiries and tenders out of adjacent negatively impacted by the lower commodity prices. Several
industries, such as power and steel, is on an increasing product brands see increased opportunities out of Africa and
trajectory. All in all, the level of inquiries is stable, though the Southeast Asia, whereas uncertainty around China and the
pipeline for 2016 contains some uncertainty related to the Middle East has increased during 2015.
minerals markets, whereas activity in cement and adjacen-
cies appear to be stable or slightly improving. Financial performance in Q4 2015
Order intake in Q4 2015 increased to DKK 1,252m,
Demand for new products is mostly related to productivity representing an increase of 5% (Q4 2014: DKK 1,194m).
improvements, modernisations, and replacements, and cus- Adjusted for currency effects, the order intake increased
tomers focus increasingly on product life-cycle and environ- 3%. Based on the past two years’ history, order intake
mental issues. Although the product companies are exposed appears to be strongest in the first half of the year.
predominantly to replacement demand as well as parts and
Product Companies
Order intake (Gross) 5,742 5,192 11% 1,252 1,194 5%

Order backlog 2,536 2,667 -5% 2,536 2,667 -5%
Total revenue 5,711 5,523 3% 1,473 1,451 2%
Gross profit 1,652 1,565 6% 406 378 7%
EBITDA 849 774 10% 205 160 28%
EBITDA margin 14.9% 14.0% 13.9% 11.0%
EBITA 756 672 13% 184 138 33%
EBITA margin 13.2% 12.2% 12.5% 9.5%
EBIT 689 596 16% 166 119 39%
EBIT margin 12.1% 10.8% 11.3% 8.2%
Number of employees 3,325 3,376 -2% 3,325 3,376 -2%
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56
Revenue increased 2% to DKK 1,473m (Q4 2014: DKK Long-term financial targets
1,451m), but decreased 2% adjusted for currency effects. The Product Companies Division is targeting an EBITA
margin of 12-15% (2015: 13.2%) and an annual revenue
The EBITA result amounted to DKK 184m in Q4 representing growth of 5-10% over the cycle (2015: 3%). The Product
a 33% increase over last year (Q4 2014: DKK 138m). As Companies Division is already delivering a margin within
a result, the EBITA margin in Q4 increased to 12.5% (Q4 the long-term target range, which means that growth is the
2014: 9.5%), which is a reflection of a change in business key focus area. All product companies have unique growth
mix between different product categories and between targets and opportunities such as expansion of niche leaders
capital and service business. into close adjacent industries as well as increased market
share through focus on core business.
Financial performance in 2015
Overall, the Product Companies Division saw a stable devel- For information about the divisional offerings and business
opment in 2015 compared to 2014. model, see Strategy and business model, page 27.
Order intake increased 11% to DKK 5,742m in 2015 (2014:

DKK 5,192m) and increased 4% adjusted for currency ef-
fects, not least supported by a strong order intake related to
FACTS
air pollution control and gold mining.
Revenue increased 3% to DKK 5,711m (2014: DKK 5,523m
but declined 4% adjusted for currency effects. EBITA 5-10% annual revenue growth
increased 13% to DKK 756m (2014: DKK 672m) and the (over the cycle)
EBITA margin increased to 13.2% (2014: 12.2%), mainly
due lower non-recurring costs in 2015 compared to 2014. EBITA margin 12-15%
NWC ~15%
DKKm DKKm EBITA-%

2,000 2,000 20%
1,500 1,500 15%
1,000 1,000 10%
500 500 5%
0 0 0%
2014 2014 2014 2014 2015 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 2015
Announced orders Revenue EBITA margin

Unannounced orders
57
Minerals
Market developments reluctant to discuss projects with a payback-time of less than
Although the order intake for the Minerals Division increased two years. Copper, gold and nickel offer the best opportu-
in 2015, the underlying market undoubtedly deteriorated nities, including some medium-scale gold projects, whereas
during the year which in August led to the changed expecta- coal, potash and iron ore remain weak. At present, the best
tions that the trough in addressable mining investments for opportunities are within areas such as crushing, screening
FLSmidth would be extended and that growth would not re- and dry tailings management, whereas demand for mineral
sume until the end of 2017. Current visibility is low, resulting processing equipment has weakened during the year.
from a sustained downward pressure on commodity prices
which continue to weigh on miners’ CAPEX (and OPEX) The most active markets are in North and South America,
budgets. As a consequence, pricing pressure is increasing. the Middle East and Southeast Asia. Also, India and South
Smaller single equipment orders have seen a stable devel- Africa offer opportunities, whereas Sub-Saharan Africa as a
opment and still make up the majority of bookings in the whole has been slow in 2015.
Minerals Division. Inquiries for smaller orders saw a steady
development in the fourth quarter as well. Larger projects, Financial performance in Q4 2015
already approved but not yet effective, continue to be de- Order intake in Q4 2015 increased 4% to DKK 630m
ferred, and most new larger projects are in the pre-feasibility (Q4 2014: DKK 604m) and increased 3% adjusted for
stage where it is unknown if they will materialise. Interest currency effects.
for brownfield projects is modest.
Revenue decreased 20% to DKK 1,126m (Q4 2014: DKK
Current demand is mostly related to productivity improve- 1,407m) due to the lower order backlog at the beginning
ments, modernisations, and replacements, and miners are of the year. EBITA amounted to DKK -32m (Q4 2014:
Minerals
Order intake (Gross) 4,112 3,142 31% 630 604 4%

Order backlog 4,614 4,298 7% 4,614 4,298 7%
Total revenue 3,576 4,933 -28% 1,126 1,407 -20%
Gross profit 584 918 -36% 179 228 -21%
EBITDA (193) 72 n/a (10) 35 n/a
EBITDA margin -5.4% 1.5% -0.9% 2.5%
EBITA (258) 11 n/a (32) 17 n/a
EBITA margin -7.2% 0.2% -2.8% 1.2%
EBIT (424) (153) n/a (70) (50) n/a
EBIT margin -11.9% -3.1% -6.3% -3.6%
Number of employees 1,881 2,386 -13% 1,881 2,386 -13%
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58
DKK 17m). The result included one-off costs related to over the cycle (2015: -28%). The Minerals division has been
efficiency and business right-sizing initiatives. As a conse- implementing significant efficiency and business right-sizing
quence, the EBITA margin declined to -2.8% (Q4 2014: measures in the last couple of years and should now be
1.2%). adjusted to a new reality. Thus, profitability is expected to
improve through operational excellence, portfolio manage-
Financial performance in 2015 ment and footprint rationalisation. Growth is expected to be
Order intake in 2015 increased 31% to DKK 4,112m (2014: supported by a cyclical rebound in the mining industry in the
DKK 3,142m) and increased 18% adjusted for currency coming years coupled with new offerings related to ongoing
effects. Despite increased headwind in the minerals industry R&D projects and pilot plants with partners.
throughout the year, it was positive to see that all quarters
in 2015 saw a higher order intake than the corresponding For information about the divisional offerings and business
quarters last year. The increase in order intake was partly ex- model, see Strategy and business model, page 28.
plained by an increase in large announced orders of roughly
DKK 0.5bn and partly by an increase in unannounced orders
of close to DKK 0.5bn. The Minerals Division booked three
large announced orders in 2015.
Revenue decreased 28% to DKK 3,576m (2014: DKK FACTS

4,933m) and declined 35% adjusted for currency effects as
a result of the lower order backlog at the beginning of the Long-term financial targets:
year. EBITA declined to DKK -258m (2014: DKK 11m) and
the EBITA margin decreased to -7.2% (2014: 0.2%), due to 5-6% annual revenue growth
costs related to business right-sizing and efficiency meas- (over the cycle)
ures as well as changed risk assessment of receivables in Q2
EBITA margin 3-8%
2016, resulting in bad debt provisions of DKK -83m.
(over the cycle)
Long-term financial targets Negative NWC

The Minerals Division is targeting an EBITA margin of 3-8%
(2015: -7.2%) and an annual revenue growth of 5-6%
DKKm DKKm EBITA-%

2,000 2,000 20%
1,500 1,500 10%
1,000 1,000 0%
500 500 -10%
0 0 -20%
2014 2014 2014 2014 2015 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 2015

Unannounced orders
59
Cement
Market developments At present, the sharp decline in the oil price means that
The market for new cement capacity was largely unchanged customers in countries strongly dependent on the income
in 2015. On a global scale, capacity utilisation rates remain from oil production remain challenged which continues to
low with few new large orders for tender, which also exerts impact in particular one Operation & Maintenance contract,
pressure on pricing and conditions. FLSmidth’s expectations on which FLSmidth is working closely with the customer
at the beginning of the year factored in a slow recovery in to adapt their business and cost structure to the changed
the industry which never really materialised. Mainly as a market environment.
result of the sharp decline in the oil price, as customer
decision-making was dragging out, the amount of available Overall, the pipeline for potential cement projects is roughly
cement orders from oil-exporting countries was confined, similar to that one year ago, but with a relatively higher pro-
and the total order intake for the year ended up below portion of potential projects in oil-importing countries. The
company expectations for the Cement Division. In 2015, shift in demand from what used to be relatively cash-rich
the global cement demand growth excluding China was oil-exporting countries towards oil-importing countries that
modest. Cement demand outside of China is expected are generally more dependent on external financing reduces
to grow modestly in 2016 as well, driven by growth in the visibility in terms of predicting the timing of new orders.
both developed on emerging markets excluding China.
Combined with a slow-down in the pace of capacity Financial performance in Q4 2015
additions, the supply-demand dynamics on a global scale Order intake in Q4 2015 decreased 28% to DKK 396m (Q4
still support an imminent recovery of the industry, although 2014: DKK 547m) due to the lack of announceable orders in
current market uncertainty makes it difficult to predict when Q4 2015 compared to receipt of two large orders in Q4 2014.
the recovery is to really take shape. However, market activity Adjusted for currency effects, the order intake decreased 31%
should improve, especially when the better economy in many compared to Q4 2014. The order intake in a project business
oil-importing countries starts to translate into increased is lumpy per se but nevertheless it was a disappointment that
demand for cement. no announceable orders were booked in Q4.
Cement
Order intake (Gross) 2,803 2,943 -5% 396 547 -28%

Order backlog 5,852 7,768 -25% 5,852 7,768 -25%
Total revenue 3,911 3,951 -1% 985 1,098 -10%
Gross profit 601 660 -9% 124 221 -44%
EBITDA 132 203 -35% (15) 71 -121%
EBITDA margin 3.4% 5.1% -1.6% 6.5%
EBITA 99 181 -45% (29) 64 -145%
EBITA margin 2.5% 4.6% -3.0% 5.8%
EBIT 52 155 -66% (39) 52 -175%
EBIT margin 1.3% 3.9% -3.9% 4.7%
Number of employees 2,793 3,227 2,793 3,227
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60
Revenue decreased 10% to DKK 985m (Q4 2014: DKK Long-term financial targets
1,098m) and decreased 15% adjusted for currency effects. The Cement Division is targeting an EBITA margin of 3-8%
The lower revenue is a result of the lower backlog at the (2015: 2.5%) and an annual revenue growth of 3-5% over
beginning of the year. the cycle (2015: -1%). The Cement Division is six years
into a cyclical downturn and margins are currently under
EBITA amounted to DKK -29m which is significantly below last pressure. Nevertheless, the Cement Division has been de-
year (Q4 2014: DKK 64m). EBITA was negatively impacted by livering margins within or above the targeted margin range
DKK -48m related to in particular one O&M contract with a in the recent past. Growth is expected to be supported by
customers in an oil-exporting country as well as execution a cyclical rebound in the cement industry in the coming
of projects taken in a less favourable competitive environ- years coupled with leveraging the ‘Design, Build, Operate’
ment. Thus, the EBITA margin decreased to -3.0% (Q4 business model and offering the most productive and
2014: 5.8%). sustainable cement technology.
Financial performance in 2015 For information about the divisional offerings and business
Order intake in 2015 decreased 5% to DKK 2,803m (2014: model, see Strategy and business model, page 29.
DKK 2,943m) and decreased 11% adjusted for currency
effects which was considerably below company expectations
at the beginning of the year. Although FLSmidth achieved a
fair share of the orders tendered for, the market in general
was characterised by few available orders, lengthy decision-
FACTS
making and financing issues.
Revenue decreased 1% to DKK 3,911m (2014: DKK
3,951m) but declined 7% adjusted for currency effects. 3-5% annual revenue growth
EBITA decreased 45% to DKK 99m (2014: DKK 181m) and (over the cycle)
the EBITA margin decreased to 2.5% (2014: 4.6%) as a
result of a lower margin in the second half of 2015. The
EBITA margin 3-8%
(over the cycle)
negative margin development is a result of execution of
projects taken in a less favourable competitive environment Negative NWC
and especially the fact that certain Operation & Maintenance
contracts with customers in oil-exporting countries are nega-
tively impacted by the effects of the lower oil price.
DKKm DKKm EBITA-%

2,000 2,000 9%
1,500 1,500 6%
1,000 1,000 3%
500 500 0%
0 0 -3%
2014 2014 2014 2014 2015 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 2015

Unannounced orders
61
Risk
Management
Risks and Risk Management are inherent Each Division, Country, Business Unit and Group Function
has the responsibility to identify, assess and actively manage
parts of the nature of FLSmidth’s business. risks - this is a fundamental principle in FLSmidth’s risk man-
The Group undertakes considerable risks agement philosophy that is executed at the following levels:
within areas where it has established Group Executive Management: covering all group level
the competencies to identify, assess and risks, including major external risks that may impact the
Group’s ability to achieve its strategic objectives on a sus-
manage the risks. tainable basis;
Division: covering general risks related to the respective
focus industries, as well as risks related to the interaction
Risk taking is an intrinsic, necessary and accepted part of between the Business Units and Group Functions;
FLSmidth’s business and effectively managing risk has a Country: with the overall responsibility and ownership for
high priority within the Group’s business model. Through mitigating identified risks in their country;
a simplified and standardized enterprise risk management Business Units: covering specific risks related to their
practice designed to ensure that FLSmidth achieves its specific business activities, e.g. projects, products, services,
strategic, business and governance objectives, the Group own manufacturing, operations and management, Super-
continuously strives to protect its corporate reputation, centres, etc., and;
values and integrity. Group Functions: such as legal, tax, treasury, governance
and compliance, intellectual property rights, strategic
FLSmidth’s Risk Management Framework supply chain, research and development, health and safety,
and Process travel security and IT covering all global risk areas that
FLSmidth’s approach to risk management is based on a com- function across the Divisions and Business Units.
bined top-down/bottom-up approach with the underlying
premise that all Divisions, Business Units and Group Func- Risk Reporting
tions exist to provide value for the Group’s stakeholders. The Group’s Risk Management Department is responsible for
the facilitation of annual assessments and biannual reporting
The Risk Management Framework is set out in the Group’s to the Audit Committee and the Board of Directors including
Risk Management Policy, which describes the purpose, Group Executive Management. This report includes identifica-
scope, principles, expectations, roles and responsibilities, tion of key risks and the relevant action plans.
policy authority and the monitoring and managing of risks.
The Board of Directors is ultimately responsible for this
policy, including defining the Group’s overall risk appetite
and risk tolerance.
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62
Risk reporting
Formal Reporting Informal Reporting

• Audit Committee • Mitigation status
• Board of Directors • Continuous
Board
of Directors
Group
Executive
Risk Reporting Management
Audit Committee
Countries Divisions
Business Units
Insurance
Mitigating the financial impact of certain types of risk shortage of skilled labor, raw material price fluctuations,
allows FLSmidth to transfer some of the financial loss to an currency, counterpart, design, technology/product, theft of
insurance partner, if an insured risk materializes. intellectual property rights, business integration, IT, legal,
compliance, tax, natural disasters and environmental.
The Group’s Insurance Department is an integrated part of
the Risk Management Department, and is responsible for While FLSmidth has a low risk appetite for certain types of
the Group’s asset risk management, which consists of a risk such as: safety, currency, theft of intellectual property
combination of global and local insurance policies. rights, business integration, IT, legal, compliance and tax,
the Group is prepared to accept considerable project-re-
The retention level of risk the Group chooses to take is lated risks within the areas where the Group has the
evaluated on an annual basis, taking into consideration the competencies to manage such risks.
Group’s financial strength, the magnitude of the insured
risk and the cost benefits that are based on current insur- During the risk assessment process in 2015, the following
ance market conditions. key risks were identified in random order of priority:
2015 Key risks • Safety

FLSmidth is exposed to a vast array of strategic, opera- • Projects
tional, financial and hazardous risks that must be identi- • Legal, Compliance & Tax
fied, evaluated and managed on an ongoing basis. These • Quality
risks include, but are not limited to: country, political, • Market
manufacturing, peers group, supply chain, logistical, • Litigation
63
Risk Management
Risk Mitigation
RISK CONTEXT MITIGATION
Safety In general, the mining industry has high Safety is the Group’s first priority with continuous
safety standards whereas the standards in focus on improving LTIFR, Safety Audits by top
the cement industry may vary. management and continuous training.
Projects A large part of FLSmidth’s business consists The Group focuses on projects that lie within its core
of supplying equipment to customer-built, competencies and match its strategic goals. Rigorous
or managing the entire construction on an contract and project management play important roles
EPC basis for very large, complex process- in managing project-related risks.
ing plants.
Both Project Divisions have formal sign-off processe s
in order to support the sales phase.
Large EPC projects must be reviewed and pre-approved

by the Group’s EPC Board, which consists of members
from the Divisions, Business Units, Legal and EPC.
FLSmidth’s projects are often located in The Group conducts monthly project reviews of all
remote locations with poor infrastructure, large projects which include risk assessments. The
and in countries with challenging political, Group has also established project task forces with
administrative and judicial structures in participants from selected areas of expertise, including
place. This can pose significant logistical, Divisional CEO’s/CFO’s and relevant specialists to
country-specific and political risks. create a uniform platform for liaising on projects that
are complex due to size, scope and/or geographical
location.
Compliance with local regulatory & tax The Group's Legal Department is actively involved in
Legal,
Compliance requirements has top-priority in FLSmidth. the organisation and Group Compliance is responsible
& Tax for ensuring that the company lives up to basic ethical
standards and employs a range of policies including
the global Code of Business Conduct, Anti-Bribery
policy and Whistleblower Hotline. Group Tax is involved
early during the sales phase to ensure risks have been
identified and are properly managed.
Quality Quality is the determining factor for the The Group has rolled out a "One Global Quality
Group's customers who often expect a Policy" and has focus on creating a Quality Mindset,
company-wide management philosophy continuously measuring and improving upon quality
geared towards delivering quality products performance, the role of leadership and the impor-
and services every time. tance of each individual making a personal commit-
ment to quality throughout the organization.
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64
RISK CONTEXT MITIGATION
Market Market conditions for both the Cement The Group's strategy for managing the headwinds
and Mining industries continue to experi- is focused on improving and enhancing customer
ence headwinds, with declining commodity productivity, new capacity and environment while the
prices, increased risk of mine closures and Service and Products businesses provide a stable base
continued announcements of CAPEX cuts. during the tough market conditions.
Litigation FLSmidth is a defendant in a large number Part of the Group’s insurance for asbestos-related
of pending lawsuits in the United States claims expired in 2014. The strategy for managing
that seek to recover damages for personal the ongoing exposure includes a potential pool-shar-
injury allegedly caused by exposure to ing agreement which FLSmidth expects to enter into
asbestos-containing products manufac- this year. Management’s present belief is that the
tured and /or distributed by FLSmidth in risk caused by the pending asbestos litigation cases
the past. in the United States is not material in the context of
FLSmidth’s total business operations.
100
Detect and monitor Manage to reduce impact
90
Market
80 Legal, Compliance & Tax
70 Safety
Projects
60
Litigation Quality
Impact
50
Low control Monitor
40
Political Instability
30
20
10
0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of occurrence
65
Board of Directors
Name Vagn Ove Sørensen Torkil Bentzen Martin Ivert Sten Jakobsson
Chairman Vice chairman
Age 56 69 68 67
Nationality Danish Danish Swedish Swedish
Gender Male Male Male Male
Member of the Board since 2009, Chairman since 2002, Vice Chairman 2008 (elected at the AGM). 2011 (elected at the AGM).
2011 (elected at the since 2012 (elected at the Member of the Technology Member of the Audit
AGM). Member of the AGM). Chairman of the Committee. Committee.
Audit, Compensation and Technology Committee.
Nomination Committees. Member of the Nomina-
tion and Compensation
Committees.
Number of shares in FLSmidth 6,301 5,000 300 2,000
Executive positions Chairman of the Boards of Chairman of the Board None None
in Denmark Directors of TDC A/S, of Directors of Burmeister
TIA Technology A/S, Zebra & Wain Scandinavian
A/S, and Thor Denmark Contractor A/S, State of
Holding ApS. Vice Chair- Green and Boel Bentzen
man of the Board of Direc- A/S. Member of the
tors of DFDS A/S. Member Boards of Directors of
of the Board of Directors of Mesco Danmark A/S and
CP Dyvig & Co. A/S and JP/ Siemens A/S Danmark.
Politikens Hus A/S. Senior CEO of Boel Bentzen
Advisor to EQT Partners. Holding ApS.
CEO of E-FORCE ApS.
Executive positions Chairman of the Boards Chairman of TGE Marine Chairman of the Board Chairman of the Boards
outside Denmark of Directors of Scandic AG (Germany). Senior of Directors of Åkers of Directors of Power
Hotels AB (Sweden), Advisor to the Board of (Sweden). Member of Wind Partners AB (Swe-
Select Service Partner Plc Mitsui Engineering & the Board of Directors of den) and LKAB (Sweden).
(UK), Automic Software Shipbuilding Ltd. (Japan). Ovako (Sweden). Vice Chairman of the
GmbH (Austria) and Bu- Board of Directors of
reau van Dijk BV (Holland). SAAB (Sweden). Member
Member of the Boards of of the Boards of Directors
Directors of Lufthansa of Stena Metall (Sweden)
Cargo (Germany), Air and Xylem Inc (USA).
Canada (Canada), Royal
Caribbean Cruises Ltd.
(USA), and Braganza AS
(Norway). Senior Advisor
to Morgan Stanley.
Experience
CEO
M&A
Financing & stock markets
International contracts
Accounting
Technology management
Minerals and process industry
Building contracting
Cement industry
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66
Tom Knutzen Caroline Grégoire Mette Dobel Søren Quistgaard Larsen Jens Peter Koch
Sainte Marie
53 58 48 37 33
Danish French Danish Danish Danish
Male Female Female Male Male
2012 (elected at 2012 (elected at 2009 (elected by 2013 (elected by 2013 (elected by
the AGM). Chairman of the AGM). Member of the the employees) the employees) the employees)
the Audit Committee. Technology Committee.
12,500 250 864 65 240
None None None None None
CEO of Jungbunzlauer Member of the Boards of None None None

Suisse AG (Switzerland). Directors of Groupama SA
Member of the Board of (France), Eramet (France),
Directors and Chairman Wienerberger AG (Austria)
of the Audit Committee and CALYOS (Belgium).
for Nordea Bank AB
(publ) (Sweden).
67
The Executive Management
5 7 6 2 3 8
54,39 mm
1 4
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68
1: Thomas Schulz 2: Lars Vestergaard 3: Bjarne Moltke Hansen 4: Virve Elisabeth Meesak
MSc (Engineering), PhD Mining MSc (Economics and Manage- BSc (Engineering), Group Executive BSc (Psychology and Be-
Engineering (Dissertation in ment), Group Executive Vice Presi- Vice President, Product Companies haviourism), Group Executive Vice
Mineral Mining and Quarrying), dent and CFO, with FLSmidth since Division since January 2015, with President, Group Human Resourc-
Group Chief Executive Officer, with April 2014. Born 1974, Danish. FLSmidth since 1984. Born 1961, es, with FLSmidth since 2013.
FLSmidth since May 2013. Born Danish. Born 1960, Swedish.
1965, German.
Formerly various managerial Formerly with Carlsberg: Vice Formerly Group Executive Vice Formerly independent human
positions in Sandvik since 2001: President and Chief Information President, Customer Services resource consultant, since 2010,
Member of Group Executive Officer (2013-2014), Chief Division, FLSmidth (2002-2015), Human Resource Director, Alstom
Management (2011-2013), Financial Officer Carlsberg UK CEO, Aalborg Portland Holding Power Services, North East Europe
Chairman of SJL Shan Bao (2011- (2009-2013), Vice President, A/S (2000-2002), CEO, Cembrit (2008-2010), Vice President,
2012), President of the Business Treasury (2005-2009) and Direc- Holding A/S (1995-2000), various Human Resources Sandvik Mining
Area Construction (2011-2012), tor, Treasury (2004-2005). With managerial posts in Unicon A/S and Construction AB (2005-2008).
President, Construction, and SVP, ISS: Vice President, Treasury (2004) (1984-1995). Before 2005, different positions
Mining and Construction (2005- and Assistant Treasurer (2000- within Sales, Marketing, and HR
2011), Regional President Mining 2003). With Jyske Bank: Fixed Executive posts in Denmark with Ericsson, Nokia, Electrolux,
and Construction Central Europe Income Analyst (1997-2000). Member of the Board of Directors Philips, Perstorp.
(2001-2002). With Svedala, of RMIG A/S and Burmeister &
Germany (1998-2001). PhD from Wain Scandinavian Contractor A/S
Technical University of Aachen
(1999).
5: Brian M. Day 6: Manfred Schaffer 7: Per Mejnert Kristensen 8: Eric Thomas Poupier
BSc, Sales recruiting and train- Mechanical Engineering degree, MSc (Mechanical Engineering), MBA (Finance & Strategic
ing, Leadership and business IFL Executive Education, IMD Bachelor of Commerce degree, Management) Specialised Master,
management, Group Executive People Development and Business International Trade, Graduate (Supply Chain Management),
Vice President, Customer Services Strategy, Group Executive Vice Diploma (Bus. Admin.), Inter- Mechanical Engineer, Group
Division since 1 January 2015, President, Minerals Division since national Trade, GMP, CEDEP Executive Vice President, Business
with FLSmidth since 1980. Born January 2015, with FLSmidth (INSEAD), Group Executive Vice Development, with FLSmidth since
1956, American. since 2015. Born 1958, Austrian. President, Cement Division since January 2014. Born 1976, French.
March 2012, with FLSmidth since
1992. Born 1967, Danish.
Formerly various managerial Formerly Group Executive Vice Formerly Vice President, Head Formerly with Bain & Company:
positions in FLSmidth in the President, Mineral Processing of Project Division EMEA/APAC, Strategy Consulting Manager
period 2007-2015: Senior Vice Division, FLSmidth (2014-2015). FLSmidth (2009-2012), Vice (2011-2014), Strategy Consulting
President, Global Customer Various managerial positions in President, Head of Project Division Consultant (2007-2011). With
Services, Minerals (2012-2015), Sandvik in the period 2003- 1, FLSmidth (2005-2008), General Bosch Group: Purchasing Manag-
Vice President, Global Customer 2013: Most recently as President, Manager, FLSmidth China (2000- er, Bosch Rexroth, China (2005),
Services, Minerals (2007-2012). Mining Systems (2012-2013) and 2005), Chief Representative, Strategic Purchaser, Corporate
With GL&V-Dorr Oliver Eimco, President, Surface Mining (2006- Thailand, FLSmidth (1996-1999). Purchasing, Bosch Rexroth (2002-
Vice President Aftermarket 2012). With Voest-Alpine in the 2005), Germany, Purchasing
(2002-2007), Baker Hughes Inc., period 1979-2003 in various Rotational Program, Robert Bosch
Aftermarket Manager (1991- managerial positions. GmbH, Germany (2000-2002).
2002), EIMCO Process Equipment
Company, Product Engineer /
Process Engineer (1980-1991).
69
Shareholder
information
FLSmidth has a sustainable business Limited and Franklin Mutual Advisors, USA (2014: 35%),
while Danish institutional investors increased their share to
model and good growth opportunities.
32% including Lundbeckfonden and Novo A/S (2014: 16%).
With roughly two-thirds of revenue be- In 2015, FLSmidth’s holding of treasury shares was roughly
unchanged 4.5% (2014: 4.8%).
ing generated in emerging markets, an
investment in FLSmidth is an investment
in the emerging markets’ growth story.
Shareholder structure
Capital and share structure

10% Lundbeck Foundation
FLSmidth & Co. A/S is listed on NASDAQ OMX Copenhagen.
25% Novo A/S
The share capital is DKK 1,025,000,000 (end of 2014: 10%
Franklin Mutual Advisors
DKK 1,025,000,000) and the total number of issued
5%
Templeton Global Advisors
shares is 51,250,000 (end of 2014: 51,250,000). Each Foreign
share entitles the holder to 20 votes. No special rights 5% FLSmidth & Co. A/S
are attached to any share and there are no restrictions 12%
Danish (non-registered)
on the transferability of the shares. 2% Danish (institutional)
5% 26%
Danish (private)
The FLSmidth & Co. A/S share is included in a number
of share indices on NASDAQ OMX Copenhagen,
including OMXC20, a leading share index. In total,
the FLSmidth & Co. A/S share is included in 146 Danish,
Historical development in shareholder structure
Nordic, European and global share indices.
The company had approximately 44,000 shareholders at 100%

the end of 2015 (end of 2014: approximately 52,000). In 90%
80%
addition, some 2,000 present and former employees hold
70%
shares in the company (end of 2014: some 2,000).
60%
50%
The FLSmidth & Co. A/S share has a free float of 95%. 40%
Two new shareholders reported a shareholding exceeding 30%
20%
10%: Lundbeckfonden and Novo A/S on behalf of
10%
Novo Nordisk Fonden.
0%
2011 2012 2013 2014 2015
Another two shareholders have reported a shareholding Lundbeck Foundation Foreign

exceeding 5%: Franklin Mutual Advisors and Templeton Novo A/S FLSmidth & Co. A/S
Global Advisors Limited (part of Franklin Resources Inc.). Franklin Mutual Advisors Danish (non-registered)
Templeton Global Advisors Danish (institutional)
2015 saw a slight increase in the share of foreign investors OppenheimerFunds Inc. Danish (private)
to approximately 39% including Templeton Global Advisors
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70
Shares and share options held by the Board The Board of Directors’ priority for capital structure and
and Management capital allocation is the following:
The Board of Directors holds a total of 27,520 FLSmidth
shares (2014: 25,110 shares). The holdings of the individual 1. Well-capitalized (NIBD/EBITDA < 2)
members appear on the pages 66-67. 2. Stable dividends (30-50% of net profit)
3. Invest in organic growth
The Group Executive Management holds a total of 8,438 4. Value adding M&As
FLSmidth shares (2014: 5,922 shares) and 315,667 share op- 5. Share buyback or special dividend
tions (2014: 217,162 share options). In total, management
and other key staff (309 persons) own 2,955,571 share The Board of Directors will propose at the Annual General
options (2014: 2,268,299 share options). Meeting that a dividend of DKK 4 per share (2014: DKK 9)
corresponding to a dividend yield of 1.7% (2014: 3.3%)
Return on the FLSmidth share in 2015 and a pay-out ratio of 49% (2014: 57%) be distributed
The total return on the FLSmidth & Co. A/S share in 2015 for 2015.
was -9% (2014: -8%). By comparison, the leading Danish
stock index ”OMXC20 CAP” increased 32% and ”Dow The available capital resources consist of committed credit
Jones STOXX 600 Basic Resource” index decreased 32% in facilities at a total of DKK 8.3bn (end of 2014: DKK 8.3bn)
2015. The share price started the year at 272 and ended the with a weighted average maturity of 4.5 years (end of 2014:
year at 240, having ranged between 218 and 341 during 4.0 years).
the year.
FLSmidth Investor Relations
Capital structure and dividend for 2015 Through the Investor Relations function, the Board of Direc-
FLSmidth Management takes a conservative approach to tors maintains an ongoing dialogue between the company
capital structure, with an emphasis on relatively low debt, and the stock market and ensures that the positions and
gearing and financial risk. views of the shareholders are reported back to the Board.
Share and dividend figures, the Group
2011 2012 2013 2014 2015
CFPS (Cash Flow per share), DKK (diluted) 21.8 33.0 (3.1) 26.3 11.0
EPS (earnings per share), DKK (diluted) 27.1 25.1 (15.3) 16.4 8.6
Equity value per share, DKK 169 181 139 158 162
DPS (Dividend per share), DKK 9 9 2 9 4
Pay-out ratio (%) 34 37 n/a 57 49
Dividend yield (dividend as pct. of share price end of year) 2.7 2.8 0.7 3.3 1.7
FLSmidth & Co. A/S share price end of year, DKK 337.5 327.2 296.1 272.3 240
Listed number of shares (1,000), end of year 53,200 53,200 53,200 51,250 51,250
Number of shares excl. own shares (1,000), end of year 52,273 51,840 49,460 49,443 48,922
Average number of shares (1,000) (diluted) 52,550 52,233 50,707 49,518 48,996
Market capitalisation, DKKm 17,955 17,407 15,753 13,955 12,300
71
Shareholder information
The purpose of the FLSmidth & Co. A/S Investor Relations FLSmidth & Co. A/S is generally categorised as a capital goods,
function is to contribute to ensuring and facilitating that: engineering or industrial company and is currently being
covered by 16 stockbrokers including seven international.
• All shareholders have equal and sufficient access to For further details regarding analyst coverage, please see the
timely, relevant and price-sensitive information company website (http://www.FLSmidth.com/analysts).
• The share price reflects FLSmidth’s underlying financial
results and a fair market value All investor relations material is available to investors at the
• The liquidity and the day-to-day trading turnover of company website (http://www.FLSmidth.com/investor).
the FLSmidth share is sufficiently attractive for both To contact the company’s Investor Relations
short-term and long-term investors department, please see the company website
• The shareholder structure is appropriately diversified in (http://www.FLSmidth.com/IR_contacts).
terms of geography, investment profile and time scale.
To achieve these goals, an open and active dialogue is

maintained with the stock market both through FLSmidth’s
website and electronic communication service and via Financial calendar 2016
investor presentations, investor meetings, webcasts,
5 April Annual General Meeting
teleconferences, roadshows, the Annual General Meeting
18 May Q1 interim report
and capital market days.
11 August Q2 interim report
Management and Investor Relations attended some 350 9 November Q3 interim report
investor meetings and presentations (2014: ~350) held in
cities including Amsterdam, Boston, Brussels, Chicago, The Annual General Meeting will take place on 5 April
Copenhagen, Dublin, Edinburgh, Frankfurt, Geneva, 2016 at 16.00 hours at Tivoli Congress Center,
Helsinki, London, New York, Paris, Stockholm and Zurich. Arni Magnussons gade 2, DK-1577 Copenhagen.
Development in share price and trading in 2015
Daily trading (number of shares) Share price
2,500,000 350
300
2,000,000
250
1,500,000
200
150
1,000,000
100
500,000
50
0 0
01/01 29/01 26/02 26/3 23/04 21/05 18/06 16/07 13/08 10/09 08/10 05/11 03/12 31/12
2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015
FLSmidth & Co. A/S share price

FLSmidth & Co. A/S daily trading
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72
Company Announcements
Company Announcements 2015
Date Description No. Date Description No.
12-Jan FLSmidth sells Cembrit for 1.1 billion DKK 1/2015 15-Jul FLSmidth: Correction to recently published 14/2015
Sale of Cembrit stock exchange announcement
Correction to announcement no. 13-2015
12-Feb Annual Report for FLSmidth & Co. A/S 2/2015
1 January - 31 December 2014 25-Aug Interim Report for FLSmidth & Co. A/S 15/2015
Annual Report 2014 1 January - 30 June 2015
Q2 Interim Report
02-Mar NOTICE of the Annual General Meeting 3/2015
of FLSmidth & Co. A/S 01-Sep Large shareholder announcement 16/2015
Notice of Annual General Meeting – Lundbeckfonden
Large shareholder announcement
26-Mar Summary of FLSmidth & Co. A/S 4/2015
Annual General Meeting 09-Sep FLSmidth to supply equipment for 17/2015
Summary of Annual General Meeting copper-magnetite plant
DKK 600m copper order in Russia
27-Mar FLSmidth receives order from 5/2015
Moroccan phosphate producer 16-Sep FLSmidth & Co. A/S financial calendar 2016 18/2015
DKK 223m phosphate order in Morocco Financial calendar
07-Apr Large shareholder announcement 6/2015 16-Sep New candidates for FLSmidth’s Board of Directors 19/2015
– Franklin Mutual Advisers, LLC New candidates for the Board of Directors
22-Sep Large shareholder announcement 20/2015
06-May FLSmidth reaches agreement to exit 7/2015 – Lundbeckfonden
O&M contracts in Nigeria Large shareholder announcement
Discontinuation of Operation & Maintenance contract
08-Oct Large shareholder announcement 21/2015
08-May Interim Report for FLSmidth & Co. A/S 8/2015 – Novo Nordisk Fonden and Novo A/S
1 January - 31 March 2015 Large shareholder announcement
Q1 Interim Report
19-Oct FLSmidth wins five-year maintenance 22/2015
11-May FLSmidth to supply equipment for 9/2015 contract in Chile
pet coke plant in Saudi Arabia Copper maintenance contract in Chile
DKK 216m pet coke order in Saudi Arabia (contract value not disclosed)
23-May FLSmidth to supply largest cement plant 10/2015 12-Nov Interim Report for FLSmidth & Co. A/S 23/2015
in South-East Asia 1 January - 30 September 2015
DKK 750m cement order in Vietnam Q3 Interim Report
08-Jul Reports in the Russian and Danish media 11/2015 20-Nov New share option plan 24/2015
Reports in Russian and Danish media New share option plan
11-Jul FLSmidth to supply cement plant in Pakistan 12/2015 26-Nov Large shareholder announcement 25/2015
DKK 425m cement order in Pakistan – Novo Nordisk Fonden and Novo A/S
15-Jul FLSmidth to supply complete Air Pollution 13/2015
Control system
DKK 266m iron ore order in the USA
73
Statement by Management on the annual report
The Board of Directors and the Executive Board have today 2015 as well as of the results of their operations and cash
considered and approved the annual report for the financial flows for the financial year 1 January - 31 December 2015.
year 1 January - 31 December 2015.
In our opinion, the management’s review contains a fair
The consolidated financial statements are presented in review of the development of the Group’s and the Parent’s
accordance with International Financial Reporting Standards business and financial matters, the results for the year and
as adopted by the EU. The parent financial statements are of the Parent’s financial position and the financial position as
presented in accordance with the Danish Financial Statements a whole of the entities included in the consolidated financial
Act. Further, the annual report is prepared in accordance with statements, together with a description of the principal risks
Danish disclosure requirements for listed companies. and uncertainties that the Group and the Parent face.
In our opinion, the consolidated financial statements and the We recommend the annual report for adoption at the
parent financial statements give a true and fair view of the Annual General Meeting.
Group’s and the Parent’s financial position at 31 December
Copenhagen, 11 February 2016
Group Executive Management
Thomas Schulz Lars Vestergaard

Group Chief Executive Officer Group Executive Vice President and CFO
Bjarne Moltke Hansen Per Mejnert Kristensen

Group Executive Vice President Group Executive Vice President
Board of Directors
Vagn Ove Sørensen Torkil Bentzen Martin Ivert

Chairman Vice chairman
Sten Jakobsson Tom Knutzen Caroline Grégoire Sainte Marie
Mette Dobel Søren Quistgaard Larsen Jens Peter Koch
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74
Independent auditor’s reports
To the shareholders of FLSmidth & Co. A/S including the assessment of the risks of material misstate-
ments of the consolidated financial statements and parent
Report on the consolidated financial state- financial statements, whether due to fraud or error. In
ments and parent financial statements making those risk assessments, the auditor considers internal
We have audited the consolidated financial statements and control relevant to the entity’s preparation of consolidated
parent financial statements of FLSmidth & Co. A/S for the financial statements and parent financial statements that
financial year 1 January - 31 December 2015, which comprise give a true and fair view in order to design audit procedures
the income statement, balance sheet, statement of changes that are appropriate in the circumstances, but not for the
in equity and notes, including the accounting policies, for purpose of expressing an opinion on the effectiveness of the
the Group as well as the Parent, and the statement of entity’s internal control. An audit also includes evaluating the
comprehensive income and the cash flow statement of the appropriateness of accounting policies used and the reason-
Group. The consolidated financial statements are prepared in ableness of accounting estimates made by Management, as
accordance with International Financial Reporting Standards well as the overall presentation of the consolidated financial
as adopted by the EU and Danish disclosure requirements for statements and parent financial statements.
listed companies, and the parent financial statements are pre-
pared in accordance with the Danish Financial Statements Act. We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our audit opinion.
Management’s responsibility for the c onsolidated
financial statements and parent financial statements Our audit has not resulted in any qualification.
Management is responsible for the preparation of consoli-
dated financial statements that give a true and fair view in Opinion
accordance with International Financial Reporting Standards In our opinion, the consolidated financial statements give
as adopted by the EU and Danish disclosure requirements a true and fair view of the Group’s financial position at
for listed companies as well as the preparation of parent 31 December 2015 , and of the results of its operations and
financial statements that give a true and fair view in accord- cash flows for the financial year 1 January - 31 December
ance with the Danish Financial Statements Act, and for such 2015 in accordance with International Financial Reporting
internal control as Management determines is necessary to Standards as adopted by the EU and Danish disclosure
enable the preparation of consolidated financial statements requirements for listed companies.
and parent financial statements that are free from material
misstatement, whether due to fraud or error. Further, in our opinion, the parent financial statements
give a true and fair view of the Parent’s financial position
Auditor’s responsibility at 31 December 2015, and of the results of its operations
Our responsibility is to express an opinion on the consoli- for the financial year 1 January - 31 December 2015 in
dated financial statements and parent financial statements accordance with the Danish Financial Statements Act.
based on our audit. We conducted our audit in accordance
with International Standards on Auditing and additional re- Statement on the management’s review
quirements under Danish audit regulation. This requires that Pursuant to the Danish Financial Statements Act, we have
we comply with ethical requirements and plan and perform read the management’s review. We have not performed any
the audit to obtain reasonable assurance about whether further procedures in addition to the audit of the consolidated
the consolidated financial statements and parent financial financial statements and parent financial statements.
statements are free from material misstatement.
On this basis, it is our opinion that the information provided in
An audit involves performing procedures to obtain audit the management’s review is consistent with the consolidated
evidence about the amounts and disclosures in the consoli- financial statements and parent financial statements.
dated financial statements and parent financial statements.
The procedures selected depend on the auditor’s judgement,
Copenhagen, 11 February 2016
Deloitte (CVR-nr. 33963556) Anders Dons Lars Siggaard Hansen

Statsautoriseret Revisionspartnerselskab State Authorised Public Accountant State Authorised Public Accountant
75
Quarterly key figures
Quarterly key figures (unaudited)

DKKm 2013 2014 2015
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
INCOME STATEMENT
Revenue 6,837 4,833 5,063 4,976 5,627 4,683 5,093 4,609 5,297
Gross profit 1,375 1,226 1,348 1,286 1,265 1,190 1,327 1,174 1,255
Sales, distr. and admin. costs and other
operating items (976) (761) (765) (721) (772) (718) (815) (743) (792)
EBITDA 399 465 583 565 493 472 512 431 463
Special non-recurring items 46 0 (6) (4) 2 0 2 (1) (6)
Depreciation and impairment of tangible assets (66) (66) (65) (68) (76) (72) (74) (72) (73)
EBITA 379 399 512 493 419 400 440 358 384
Amortisation and impairment of intangible assets (161) (87) (88) (87) (145) (104) (119) (113) (105)
EBIT 218 312 424 406 274 296 321 245 279
Financial income/costs, net (122) (56) (56) (92) 67 (18) 30 (93) (175)
EBT 96 256 368 314 341 278 351 152 104
Tax for the period (103) (67) (95) (81) (155) (82) (113) (47) (40)
Profit/(loss) on continuing activities for the (7) 189 273 233 186 196 238 105 64
period
Profit/loss on discontinued activities for the period (172) (74) (36) (18) 60 76 (24) (189) (41)
Profit/(loss) for the period (179) 115 237 215 246 272 214 (84) 23
Effect of purchase price allocations (79) (76) (76) (76) (76) (71) (71) (71) (71)
Gross margin 20.1% 25.4% 26.6% 25.9% 22.5% 25.4% 26.1% 25.5% 23.7%
EBITDA margin 5.8% 9.6% 11.5% 11.4% 8.8% 10.1% 10.1% 9.4% 8.7%
EBITA margin 5.5% 8.3% 10.1% 9.9% 7.4% 8.5% 8.6% 7.8% 7.2%
EBIT margin 3.2% 6.5% 8.4% 8.2% 4.9% 6.3% 6.3% 5.3% 5.3%
CASH FLOW
Cash flow from operating activities 77 (552) 224 887 739 (45) (61) 496 148
Cash flow from investing activities (101) (72) (157) (152) (217) 760 (44) 14 20
ORDERS
Order intake, continuing activities 4,528 4,824 4,286 4,423 3,734 4,440 5,208 5,151 3,691
Order backlog, continuing activities 20,777 20,818 20,113 19,874 17,726 17,562 16,952 16,666 14,858
SEGMENT REPORTING
Customer Services
Revenue 1,731 1,586 1,744 1,793 1,938 1,768 1,813 1,793 1,920
Gross profit 424 485 548 512 437 456 564 522 567
EBITDA 166 264 291 283 222 199 292 260 305
EBITA 154 241 270 260 197 173 266 233 279
EBIT 131 211 237 229 150 135 223 192 240
Gross margin 24.5% 30.6% 31.4% 28.6% 22.5% 25.8% 31.1% 29.1% 29.6%
EBITDA margin 9.6% 16.6% 16.7% 15.8% 11.5% 11.3% 16.1% 14.5% 15.9%
EBITA margin 8.9% 15.2% 15.5% 14.5% 10.2% 9.8% 14.7% 13.0% 14.5%
EBIT margin 7.6% 13.3% 13.6% 12.8% 7.7% 7.6% 12.3% 10.7% 12.5%
Order intake 1,866 1,943 1,613 1,711 1,580 1,796 1,733 1,526 1,655
Order backlog 3,925 4,168 4,009 4,187 3,575 2,783 3,003 2,725 2,469
Product Companies
Revenue 1,607 1,356 1,369 1,347 1,451 1,371 1,531 1,336 1,473
Gross profit 401 386 412 389 378 422 438 386 406
EBITDA 174 151 243 220 160 223 235 186 205
EBITA 151 130 214 190 138 200 211 161 184
EBIT 129 110 197 170 119 182 198 143 166
Gross margin 25.0% 28.5% 30.1% 28.8% 26.1% 30.8% 28.6% 28.9% 27.5%
EBITDA margin 10.8% 11.1% 17.8% 16.4% 11.0% 16.3% 15.3% 13.9% 13.9%
EBITA margin 9.4% 9.6% 15.6% 14.1% 9.5% 14.6% 13.8% 12.0% 12.5%
EBIT margin 8.0% 8.1% 14.4% 12.7% 8.2% 13.3% 12.9% 10.7% 11.3%
Order intake 1,149 1,516 1,326 1,156 1,194 1,580 1,431 1,479 1,252
Order backlog 2,939 3,133 3,067 2,962 2,667 3,291 2,887 2,864 2,536
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76
Quarterly key figures (unaudited)

DKKm 2013 2014 2015
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Minerals
Revenue 2,406 1,286 1,152 1,088 1,407 822 812 816 1,126
Gross profit 508 222 236 232 228 140 130 135 179
EBITDA 140 39 (6) 4 35 (25) (112) (46) (10)
EBITA 139 24 (21) (9) 17 (39) (127) (60) (32)
EBIT 56 (8) (55) (40) (50) (78) (174) (102) (70)
Gross margin 21.1% 17.3% 20.5% 21.3% 16.2% 17.0% 16.0% 16.6% 15.9%
EBITDA margin 5.8% 3.0% -0.5% 0.4% 2.5% -3.0% -13.8% -5.6% -0.9%
EBITA margin 5.8% 1.9% -1.8% -0.7% 1.2% -4.7% -15.6% -7.4% -2.8%
EBIT margin 2.3% -0.6% -4.8% -3.7% -3.6% -9.5% -21.4% -12.5% -6.3%
Order intake 711 834 742 962 604 851 1,057 1,574 630
Order backlog 5,830 5,422 5,108 5,120 4,298 4,746 4,806 5,138 4,614
Cement
Revenue 1,430 858 1,023 972 1,098 951 1,183 792 985
Gross profit 55 133 152 154 221 166 192 119 124
EBITDA (60) 22 49 61 71 54 85 8 (15)
EBITA (65) 17 44 56 64 47 79 2 (29)
EBIT (77) 12 40 51 52 38 63 (10) (39)
Gross margin 3.8% 15.5% 14.9% 15.9% 20.1% 17.5% 16.2% 15.1% 12.5%
EBITDA margin -4.2% 2.6% 4.8% 6.3% 6.5% 5.7% 7.2% 1.0% -1.6%
EBITA margin -4.5% 2.0% 4.3% 5.8% 5.8% 4.9% 6.7% 0.3% -3.0%
EBIT margin -5.4% 1.4% 3.9% 5.3% 4.7% 4.0% 5.3% -1.3% -3.9%
Order intake 1,092 769 817 810 547 438 1,289 680 396
Order backlog 8,751 8,768 8,596 8,274 7,768 7,331 6,883 6,529 5,852
Calculations of margins are based on non-rounded figures.
Bulk Material Handling and Cembrit classified as discontinued activities.
77
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78
Consolidated financial
statements 2015
79
Consolidated financial statements
Contents
Consolidated income statement ................................ 81 List of Group companies ......................................... 141

Consolidated statement of comprehensive income ..... 82 Parent company financial statements ....................... 147
Consolidated cash flow statement ............................. 83 Parent company income statement .......................... 148
Consolidated balance sheet ...................................... 84 Parent company balance sheet ................................ 149
Consolidated equity .................................................. 86 Parent company equity ........................................... 150
Notes to the consolidated financial statements .......... 88 Notes to the parent company financial statements ........ 151
List of notes
Consolidated financial statements Other disclosure requirements
37. Earnings per share (EPS)................................................ 137
Operating activities and EBITA
38. Acquisition of enterprises and activities......................... 138
1. Geographical information............................................... 90
39. Disposal of enterprises and activities.............................. 138
2. Breakdown of Group by segment.................................... 92
40. Discontinued activities.................................................. 139
3. Revenue......................................................................... 95

41. Specification of assets and liabilities classified as held
4. Other operating items..................................................... 96 for sale............................................................................... 140
5. Special non-recurring items............................................. 96 42. Charged assets............................................................. 140
6. Minority interests............................................................ 97 43. Fee
to parent company auditors appointed
7. Income statement classified by function........................... 97 at the Annual General Meeting..................................... 140
Cash flow statement 44. Shareholders................................................................ 141
8. Change in provisions...................................................... 99 45. Events occurring after the balance sheet date................ 141
9. Change in net working capital........................................ 99 46. Approval of the Annual Report for publication............... 141
10. Financial items received and paid.................................. 100 47. List of Group companies............................................... 141
11. Change in net interest-bearing debt ............................. 100 Basis for preparation
Net working capital, Capital employed and ROCE 48. Significant
accounting estimates and assessments by
12. Specification of net working capital............................... 102 Management..................................................................... 143
13. Work-in-progress for third party.................................... 103 49. Accounting policies....................................................... 143
14. Inventories................................................................... 104 50. Standards
and interpretations that have not yet come
15. Trade and other receivables .......................................... 105 into force.................................................................................... 145
16. Intangible assets........................................................... 106 51. Terminology.................................................................. 146
17. Tangible assets............................................................. 109
18. Impairment test............................................................ 111
FLSmidth & Co. A/S financial statements
19. ROCE............................................................................ 113
Provisions, liabilities and financial items Income statement
20. Provisions................................................................................. 115 1. Dividend from Group enterprises................................... 151
21. Long-term liabilities...................................................... 117 2. Other operating income................................................ 151
22. Contractual liabilities and contingent liabilities............... 118 3. Staff costs.................................................................... 151
23. Pension assets and liabilities.......................................... 119 4. Financial income........................................................... 151
5. Financial costs.............................................................. 151
Financial items
6. Tax for the year............................................................ 152
24. Financial income and cost............................................. 122
25. Maturity structure of financial liabilities......................... 122 Balance sheet
26. Specification of net interest-bearing debt....................... 123 7. Tangible assets............................................................. 153
27. Financial risks................................................................ 124 8. Financial assets............................................................. 153
28. Derivatives.................................................................... 126 9. Deferred tax assets and liabilities................................... 153
29. Treasury shares.............................................................. 127 10. Receivables, cash and cash equivalents.......................... 154
30. Share-based payment, option plans............................... 128 11. Provisions..................................................................... 154
31. Categories
of financial instruments and 12. Maturity structure of liabilities....................................... 154
fair value hierarchy of financial instruments.................... 130 13. Other liabilities............................................................. 154
Tax Others
32. Tax for the year............................................................ 132 14. Charges....................................................................... 155
33. Deferred tax assets and liabilities................................... 133 15. Contractual liabilities and contingent liabilities............... 155
Staff cost and remuneration 16. Related party transactions............................................. 155
34. Staff cost...................................................................... 135 17. Shareholders................................................................ 155
35. Related party transactions............................................. 135 18. Accounting policies (parent company)........................... 156
36. Board of directors and Executive Management............... 136
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80
Consolidated income statement
DKKm 2015 2014
Notes
1+3 Revenue 19,682 20,499

Production costs (14,736) (15,374)
Gross profit 4,946 5,125
Sales and distribution costs (1,480) (1,405)

Administrative costs (1,654) (1,651)
4 Other operating items 66 37
EBITDA 1,878 2,106
5 Special non-recurring items (5) (8)

17 Depreciation and impairment of tangible assets (291) (275)
EBITA 1,582 1,823
16 Amortisation and impairment of intangible assets (441) (407)

EBIT 1,141 1,416
24 Financial income 1,652 1,399

24 Financial costs (1,908) (1,536)
EBT 885 1,279
32 Tax for the year (282) (398)

Profit/(loss) for the year, continuing activities 603 881
40 Profit/(loss) for the year, discontinued activities (178) (68)

Profit/(loss) for the year 425 813
To be distributed as follows:
FLSmidth & Co. A/S’ shareholders’ share of profit/(loss) for the year 421 812
6 Minority shareholders’ share of profit/(loss) for the year 4 1
425 813
37 Earnings per share (EPS):

Continuing and discontinued activities per share 8.6 16.4
Continuing and discontinued activities, diluted, per share 8.6 16.4
Continuing activities per share 12.3 17.8
Continuing activities, diluted, per share 12.3 17.8
81
Consolidated statement of comprehensive income
DKKm 2015 2014
Notes
Other comprehensive income for the year
Items that will not be reclassified to profit or loss

Actuarial gains/(losses) on defined benefit plans (16) (123)
32 Tax on items that will not be reclassified to profit or loss 3 19
Items that are or may be reclassified subsequently to profit or loss

Foreign exchange adjustments regarding enterprises abroad 73 295
Foreign exchange adjustments of loans classified as equity in enterprises abroad 206 107
Value adjustments of hedging instruments:
Value adjustments for the year (85) (153)
Value adjustments transferred to work-in-progress 4 0
Value adjustments transferred to production costs 86 0
Value adjustments transferred to financial income and costs (48) 107
Value adjustments transferred to other operating items 0 6
32 Tax on items that are or may be reclassified subsequently to profit or loss (35) 4
Other comprehensive income for the year after tax 188 262
Comprehensive income for the year 613 1,075
Comprehensive income for the year attributable to:

FLSmidth & Co. A/S’ shareholders’ share of comprehensive income for the year 612 1,073
Minority shareholders’ share of comprehensive income for the year 1 2
613 1,075
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82
Consolidated cash flow statement
DKKm 2015 2014
Notes
EBITDA, continuing activities 1,878 2,106

EBITDA, discontinued activities (289) (60)
EBITDA 1,589 2,046
Adjustment for gain/(losses) on sale of tangible and intangible assets and special
non-recurring items etc. 2 12
Adjusted EBITDA 1,591 2,058
8 Change in provisions 68 (431)

9 Change in net working capital (733) 168
Cash flow from operating activities before financial items and tax 926 1,795
10 Financial items received and paid (50) (86)

32 Taxes paid (338) (411)
Cash flow from operating activities 538 1,298
38 Acquisition of enterprises and activities 0 (200)

16 Acquisition of intangible assets (72) (141)
17 Acquisition of tangible assets (139) (366)
Acquisition of financial assets (2) 0
39 Disposal of enterprises and activities 873 16
Disposal of intangible assets 7 10
Disposal of tangible assets 82 77
Disposal of financial assets 1 6
Cash flow from investing activities 750 (598)
Dividend paid (446) (104)

Acquisition of treasury shares (6) (195)
Disposal of treasury shares 23 10
11 Change in net interest-bearing debt (707) (514)
Cash flow from financing activities (1,136) (803)
Change in cash and cash equivalents 152 (103)

26 Cash and cash equivalents at 1 January 1,021 1,077
Foreign exchange adjustment, cash and cash equivalents (16) 47
Cash and cash equivalents at 31 December 1,157 1,021
41 Cash and cash equivalents included in assets held for sale 34 58

26 Cash and cash equivalents 1,123 963
Cash and cash equivalents at 31 December 1,157 1,021
The cash flow statement cannot be inferred from the published financial information only.
83
Consolidated balance sheet
Assets
DKKm 2015 2014
Notes
Goodwill 4,362 4,275

Patents and rights 1,335 1,490
Customer relations 1,102 1,207
Other intangible assets 53 109
Completed development projects 281 336
Intangible assets under development 345 336
16 Intangible assets 7,478 7,753
Land and buildings 1,723 1,707

Plant and machinery 678 693
Operating equipment, fixtures and fittings 169 191
Tangible assets in course of construction 52 111
17 Tangible assets 2,622 2,702
31 Other securities and investments 125 98

23 Pension assets 0 3
33 Deferred tax assets 1,096 979
Financial assets 1,221 1,080
Total non-current assets 11,321 11,535
14 Inventories 2,445 2,628
15 Trade receivables 4,884 5,026

13 Work-in-progress for third parties 2,526 3,289
Prepayments to subcontractors 347 279
15 Other receivables 1,076 1,236
Receivables 8,833 9,830
26 Cash and cash equivalents 1,123 963
41 Assets classified as held for sale 640 1,396
Total current assets 13,041 14,817
TOTAL ASSETS 24,362 26,352
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84
Equity and liabilities
DKKm 2015 2014
Notes
Share capital 1,025 1,025

Foreign exchange adjustments (50) (332)
Value adjustments of hedging transactions (106) (63)
Retained earnings 6,873 6,629
Proposed dividend 205 461
FLSmidth & Co. A/S’ shareholders’ share of equity 7,947 7,720
Minority shareholders’ share of equity 35 41
Total equity 7,982 7,761
33 Deferred tax liabilities 380 552

21+23 Pension liabilities 278 263
20+21 Other provisions 509 551
21 Bank loans and mortgage debt 4,791 4,129
21 Prepayments from customers 120 229
21 Other liabilities 150 144
Long-term liabilities 6,228 5,868
23 Pension liabilities 5 6
20 Other provisions 1,047 1,047
Bank loans 87 1,401
Prepayments from customers 1,147 1,602
13 Work-in-progress for third parties 2,453 3,223
Trade payables 2,546 2,736
Current tax liabilities 411 261
Other liabilities 1,915 1,964
Short-term liabilities 9,611 12,240
41 Liabilities directly associated with assets classified as held for sale 541 483
Total liabilities 16,380 18,591
TOTAL EQUITY AND LIABILITIES 24,362 26,352
85
Consolidated equity
DKKm Share Foreign Value Retained Proposed FLSmidth & Co. Minority Total
capital exchange adjustments earnings dividend A/S’ shareholders’
adjustments of hedging shareholders’ share of equity
transactions share of equity
Equity at 1 January 2015 1,025 (332) (63) 6,629 461 7,720 41 7,761
Comprehensive income for

the year
Profit/(loss) for the year 421 421 4 425
Other comprehensive income

Actuarial gains/losses on defined
benefit plans (16) (16) (16)
Foreign exchange adjustments
regarding enterprises abroad 76 76 (3) 73
of loans classified as equity in
enterprises abroad 206 206 206
Value adjustments of hedging
instruments:
Value adjustments for the year (85) (85) (85)
V
alue adjustments transferred
to work- in-progress 4 4 4
V
to production costs 86 86 86
V
to financial income and costs (48) (48) (48)
Tax on other comprehensive
income* (32) (32) (32)
total 0 282 (43) (48) 0 191 (3) 188

the year 0 282 (43) 373 0 612 1 613
Dividend distributed (439) (439) (7) (446)

Dividend treasury shares 22 (22) 0 0
Share-based payment, share
options 37 37 37
Proposed dividend (205) 205 0 0
Disposal treasury shares 23 23 23
Acquisition treasury shares (6) (6) (6)
Equity at 31 December 2015 1,025 (50) (106) 6,873 205 7,947 35 7,982
* For specification of tax on other comprehensive income see note 32 in the consolidated financial statements.
Dividend distributed in 2015 consists of DKK 9 per share (2014: DKK 2).
Proposed dividend for 2015 amounts to DKK 4 per share (2014: DKK 9).
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86
DKKm Share Foreign Value Retained Proposed FLSmidth & Co. Minority Total
capital exchange adjustments earnings dividend A/S’ shareholders’
adjustments of hedging shareholders’ share of equity
transactions share of equity
Equity at 1 January 2014 1,064 (733) (23) 6,474 106 6,888 34 6,922

the year
Profit/(loss) for the year 812 812 1 813

Actuarial gains/losses on defined
benefit plans (123) (123) (123)
regarding enterprises abroad 294 294 1 295
of loans classified as equity in
enterprises abroad 107 107 107
Value adjustments of hedging
instruments:
Value adjustments for the year (153) (153) (153)
V
to financial income and costs 107 107 107
V
to other operating items 6 6 6
Tax on other comprehensive
income* 23 23 23
total 0 401 (40) (100) 0 261 1 262

the year 0 401 (40) 712 0 1,073 2 1,075
Dividend distributed (99) (99) (5) (104)

Dividend treasury shares 7 (7) 0 0
Share-based payment, share
options 43 43 43
Proposed dividend (461) 461 0 0
Disposal treasury shares 10 10 10
Acquisition treasury shares (195) (195) (195)
Cancellation of treasury shares (39) 39 0 0
Addition of minority interests 0 0 14 14
Reduction of minority interests 0 (4) (4)
Equity at 31 December 2014 1,025 (332) (63) 6,629 461 7,720 41 7,761
* For specification of tax on other comprehensive income see note 32 in the consolidated financial statements.
Dividend distributed in 2014 consists of DKK 2 per share (2013: DKK 9).
Proposed dividend for 2014 amounts to DKK 9 per share (2013: DKK 2).
87
Notes to the consolidated financial statements
At a glance
Operating activities and EBITA
EBITA bridge
DKKm
2,200 1,823 50 -607 77 58 133 33 5 9 1582
1,700
1,200
700
200
-300
EBITA, Net currency Gross profit Gross profit Sales and Administrative Other Special Depreciation and EBITA,
2014 effect from from distribution costs operating items non-recurring impairment 2015
revenue contribution costs items of tangible assets
Revenue by region DKKm Book-to-bill

30,000 140%
6% 25,000 120%
10%
Europe 100%
20,000
21% North America 80%
15,000
South America 60%
26% 10,000
Africa 40%
5,000 20%
Asia
18% 0 0%
Oceania
2011 2012 2013 2014 2015
19%
Order intake Book-to-bill
Order intake Order backlog

continuing activities (DKKm) continuing activities (DKKm)
18,490 14,858
up from 17,267 down from 17,726
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88
89
1. Geographical information
North America Europe

Revenue: 5,046 (2014: 4,431) Revenue: 1,931 (2014: 2,396)
Assets: 8,583 (2014: 8,236) Assets: 7,618 (2014: 9,300)
Employees: 2,300 (2014: 2,547) Employees: 2,625 (2014: 3,815)
USA Denmark
Revenue: 3,412 (2014: 3,171) Revenue: 86 (2014: 43)
Non-current assets: 3,685 Non-current assets: 2,040
(2014: 3,440) (2014: 2,228)
Canada
Revenue: 815 (2014: 738)
Non-current assets: 662
(2014: 738)
South America
Revenue: 3,776 (2014: 3,451)
Assets: 2,554 (2014: 3,072)
Employees: 1,568 (2014: 1,448)
Chile
Revenue: 1,723 (2014: 1,523)
(2014: 432)
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90
Asia
Revenue: 4,171 (2014: 4,964)
Assets: 2,731 (2014: 2,694)
Employees: 3,663 (2014: 3,846)
India
Revenue: 1,191 (2014: 1,200)
(2014: 432)
Africa Oceania
Revenue: 3,557 (2014: 3,559) Revenue: 1,201 (2014: 1,698)
Assets: 1,068 (2014: 969) Assets: 1,808 (2014: 2,081)
Employees: 2,253 (2014: 2,497) Employees: 560 (2014: 612)
Australia
Revenue: 1,179 (2014: 1,679)
(2014: 1,015)
91
Segment information
Accounting policy
FLSmidth operates in following business segments: Customer Services, Product Companies, Minerals and Cement which forms
the basis of Management’s day-to-day control of the business.
Customer Services include service, spare part and wear part sales and upgrades carried out before, while and after FLSmidth installs a plant
and commissions it.
Product Companies include nine diverse product companies. Some offer primarily systems while the majority offer products with a focus
on assembly or manufacturing. All product companies are characterised by a high service content.
Minerals encompasses all the technologies, products, processes and systems used to separate commercially viable minerals
from their ores. The Minerals division delivers engineered and customised single products, EPS projects and EPC projects to the global
mining industry.
Cement includes design/engineering and building of complete cement plants, production lines, single machinery, spare parts, knowhow,
services and maintenance to the global cement industry.
Operating and maintenance of cement and minerals plants are included in the Cement and Minerals divisions, respectively.
Other companies, etc. consist of companies with no activities, real estate, eliminations and the parent company, while discontinued activi-
ties consist of Cembrit, bulk material handling activities and run-off on activities sold in previous years.
Revenue, assets, non-current assets and employees are presented by geographical region.
Segment income and costs include transactions between segments. Such transactions are determined on market terms. The transactions
are eliminated in connection with the consolidation.
As announced on 13 August 2014, FLSmidth has implemented a new structure 1 January 2015. The Material Handling and Mineral
Processing divisions are merged into a Minerals Division. Cement and Customer Services are maintained as separate divisions. A new
Product Companies Division is created including nine product companies earlier reported as part of the other divisions. Additionally, it has
been decided to transfer all active and future cement operation and maintenance contracts from the Customer Services Division to the
Cement Division with effect from 30 September 2015. As a consequence of the new structure, the comparative figures for 2014 have
been restated accordingly.
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92
2. Breakdown of the Group by segments for 2015
DKKm Customer Product Minerals Cement Other Continuing Discon- FLSmidth

Services Companies companies activities tinued Group
etc. activities
INCOME STATEMENT
External revenue 7,240 4,969 3,562 3,911 0 19,682 1,113 20,795
Internal revenue 54 742 14 0 (810) 0 0 0
Revenue 7,294 5,711 3,576 3,911 (810) 19,682 1,113 20,795
Production costs (5,185) (4,059) (2,992) (3,310) 810 (14,736) (1,206) (15,942)
Gross profit 2,109 1,652 584 601 0 4,946 (93) 4,853
Sales, distr. and admin. costs
and other operating items (1,053) (803) (777) (469) 34 (3,068) (196) (3,264)
EBITDA 1,056 849 (193) 132 34 1,878 (289) 1,589
Special non-recurring items (3) 0 (9) 0 7 (5) 127 122
Depreciation and impairment of
tangible assets (102) (93) (56) (33) (7) (291) (7) (298)
EBITA 951 756 (258) 99 34 1,582 (169) 1,413
Amortisation and impairment of
intangible assets (161) (67) (166) (47) 0 (441) (80) (521)
EBIT 790 689 (424) 52 34 1,141 (249) 892
ORDER INTAKE (GROSS) 6,710 5,742 4,112 2,803 (877) 18,490 332 18,822
ORDER BACKLOG 2,469 2,536 4,614 5,852 (613) 14,858 868 15,726
FINANCIAL RATIOS
Gross margin 28.9% 28.9% 16.3% 15.4% n/a 25.1% n/a 23.3%
EBITDA margin 14.5% 14.9% -5.4% 3.4% n/a 9.5% n/a 7.6%
EBITA margin 13.0% 13.2% -7.2% 2.5% n/a 8.0% n/a 6.8%
EBIT margin 10.8% 12.1% -11.9% 1.3% n/a 5.8% n/a 4.3%
Number of employees at 31
December 4,731 3,325 1,881 2,793 0 12,730 239 12,969
Reconciliation of the year’s

profit/(loss)
Segment earnings before interest and tax (EBIT) of reportable segments 1,141 (249)
Financial income 1,652 40
Financial costs (1,908) (59)
EBT 885 (268)
Tax for the year (282) 90
Profit/(loss) for the year 603 (178)
It has been decided to ring-fence and restructure the bulk material handling activities with a view to divest the activities. Consequently, the
impacted activities have been reclassified as discontinued activities. Cembrit was sold as of 30 January 2015. Therefore, Cembrit activities are
reported as discontinued. Comparative figures are adjusted accordingly.
93
2. Breakdown of the Group by segments for 2014
DKKm Customer Product Minerals Cement Other Continuing Discon- FLSmidth

Services Companies companies activities tinued Group
etc. activities
INCOME STATEMENT
External revenue 6,944 4,708 4,898 3,949 0 20,499 2,165 22,664
Internal revenue 117 815 35 2 (969) 0 0 0
Revenue 7,061 5,523 4,933 3,951 (969) 20,499 2,165 22,664
Production costs (5,079) (3,958) (4,015) (3,291) 969 (15,374) (1,822) (17,196)
Gross profit 1,982 1,565 918 660 0 5,125 343 5,468
Sales, distr. and admin. costs
and other operating items (922) (791) (846) (457) (3) (3,019) (403) (3,422)
EBITDA 1,060 774 72 203 (3) 2,106 (60) 2,046
Special non-recurring items 0 (5) (3) 0 0 (8) (17) (25)
Depreciation and impairment of
tangible assets (92) (97) (58) (22) (6) (275) (60) (335)
EBITA 968 672 11 181 (9) 1,823 (137) 1,686
Amortisation and impairment of
intangible assets (141) (76) (164) (26) 0 (407) (3) (410)
EBIT 827 596 (153) 155 (9) 1,416 (140) 1,276
ORDER INTAKE (GROSS) 6,847 5,192 3,142 2,943 (857) 17,267 494 17,761
ORDER BACKLOG 3,575 2,667 4,298 7,768 (582) 17,726 1,291 19,017
FINANCIAL RATIOS
Gross margin 28.1% 28.3% 18.6% 16.7% n/a 25.0% n/a 24.1%
EBITDA margin 15.0% 14.0% 1.5% 5.1% n/a 10.3% n/a 9.0%
EBITA margin 13.7% 12.2% 0.2% 4.6% n/a 8.9% n/a 7.4%
EBIT margin 11.7% 10.8% -3.1% 3.9% n/a 6.9% n/a 5.6%
Number of employees at 31
December 4,473 3,376 2,386 3,227 9 13,471 1,294 14,765
Reconciliation of the year’s

profit/(loss)
Segment earnings before interest and tax (EBIT) of reportable segments 1,416 (140)
Financial income 1,399 35
Financial costs (1,536) (19)
EBT 1,279 (124)
Tax for the year (398) 56
Profit/(loss) for the year 881 (68)
impacted activities have been reclassified as discontinued activities. Cembrit was sold as of 30 January 2015. Therefore, Cembrit activities are
reported as discontinued. Comparative figures are adjusted accordingly.
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94
3. Revenue
Accounting policy
Revenue is recognised in the income statement on delivery and passing of the risk to the buyer, and when the revenue can
be measured reliably. Revenue consists of the following products and services:
• Project sales
• Product sales
• Services, spare parts, wear parts and sales, etc.
Work-in-progress for third parties is recognised in revenue based on the value of the work completed at the balance sheet date, whereby
the revenue corresponds to the sales value of the year’s completed work based on costs incurred as percentage of the total estimated costs
(percentage of completion method).
Revenue from the supply of services, spare parts and wear parts are recognised as revenue in line with the services agreed being supplied, so
that the revenue corresponds to the sales value of the work completed in the financial year.
Production costs include raw materials, consumables, direct labour costs and production overheads such as administration and factory
management.
Research and development costs are charged to production costs in the income statement for the financial year in which they are incurred.
Development costs related to certain products or processes are recognised as intangible assets to the extent that such costs are likely to
generate future earnings. See note 16 in the consolidated financial statements for further specification.
Sales and distribution costs comprise direct distribution and marketing costs, salaries for the sales and marketing functions as well as other
indirect costs related to sales activities.
Administrative costs comprise the costs of administrative staff and management as well as other indirect administrative costs.
Significant estimates and assessments by Management
Total expected costs related to work-in-progress for third parties are partly based on an estimate, as they include provisions
for unforeseen cost deviations in future supplies of raw materials, subcontractor products and services plus construction and
handing over. Provisions for warranties on work-in-progress for third parties are based on Management estimates for each
project, while taking underlying contracts as well as collected historical provision and warranty data into account.
The contract value of services in the form of Operation & Maintenance contracts is in some cases dependent upon the productivity of the plant
serviced. In such cases, revenue recognition of the contracts includes Management´s estimate of the productivity of the plant.
Major projects are often sold to companies located in politically unstable countries and therefore entail enhanced risks and uncertainties
related to project execution, delivery and payments.
DKKm 2015 2014
Project sales 5,982 7,703

Product sales 2,780 2,537
Total service activities 10,920 10,259
19,682 20,499
Income recognition criteria
Income recognised when delivered 8,950 8,218
Income recognised in accordance with the percentage-of-completion method 10,732 12,281
19,682 20,499
Service activities consist of sale in the Customers Service division as well as services, spare and wear part sales in the product companies that
are part of the Product Companies division, and Operation & Maintenance contracts which are included in the Minerals and Cement divisions.
95
4. Other operating items
Accounting policy
Other operating items consist of income and costs of secondary nature to the Group’s activities, including certain grants, rent
income, royalties, fees, etc. plus gains and losses on disposal of individual assets, land and buildings, which are not considered
part of the disposal of a complete activity, and which are considered part of continued activities.
DKKm 2015 2014
Profit/(loss) on disposal of tangible assets 34 5

Other income 38 71
Other costs (6) (39)
Total other operating items 66 37
Gains and losses on disposal of tangible assets includes gain on sale of an administrative building in Denmark of DKK 29m.
5. Special non-recurring items
Accounting policy
Special non-recurring items consist of costs and income of a special nature in relation to the main activities of the continued
activities, including gains and losses on disposal of enterprises and run-off on purchase price allocations to inventories in
connection with acquisitions. In order to give a true and fair view of the Group’s operational activities, which are considered part
of continued activities, Cembrit and bulk material handling are reported as discontinued activities.
DKKm 2015 2014
Gain/(losses) on disposal of enterprises and activities (5) (8)

(5) (8)
Included in discontinued activities are special non-recurring items of DKK 127m (2014: DKK -17m), of which gain on sale of Cembrit accounts
for DKK 134m.
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96
6. Minority interests
Accounting policy
On initial recognition minority interests are measured at fair value or at their proportionate share of the fair value of the
identifiable assets, liabilities and contingent liabilities of the enterprise acquired.
The minority shareholders’ share of profit/(loss) for the year is based on the specific company’s shareholder agreement.
Minority shareholders’ share of profit/(loss) for the year concerns the following companies:
DKKm 2015 2014
Roymec (Proprietary) Limited (1) 7

FLSmidth SEPEC* 0 (1)
FLSmidth South Africa (Pty.) Ltd. 5 (5)
4 1
* FLSmidth SEPEC was sold on 18 November 2014.
7. Income statement classified by function
The Group presents the Income Statement continuing business based on a classification of the costs by function in order to show the earnings
before special non-recurring items, depreciation and amortisation (EBITDA). Depreciation, amortisation and impairment of tangible and
intangible assets are therefore separated from the individual functions, presented on separate lines.
DKKm 2015 2014
Revenue 19,682 20,499

Production costs, including depreciation and amortisation (14,998) (15,590)
Gross profit 4,684 4,909
Sales and distribution costs, including depreciation and amortisation (1,480) (1,434)
Administrative costs, including depreciation and amortisation (2,124) (2,088)
Other operating items 66 37
Special non-recurring items (5) (8)
EBIT 1,141 1,416
Depreciation and amortisation consist of:

Amortisation of intangible assets 441 407
Depreciation of tangible assets 291 275
732 682
Depreciation and amortisation are divided into:
Production costs 262 216
Sales and distribution costs 0 29
Administrative costs 470 437
732 682
97
At a glance
Cash flow statement
CFFO CFFO
DKKm
(DKKm) 2,000
538
1,500
1,000
500
down from 1,298 -500

2011 2012 2013 2014 2015
Cash flow from operating activities
CFFI CFFI
DKKm
(DKKm) 1,000
500
750
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
up from (598) -3,500
2011 2012 2013 2014 2015
Cash flow from investing activities
Free cash flow Free cash flow

DKKm
(DKKm) 1,500
1,000
1,288
500
0
-500
-1,000
-1,500
up from 700 -2,000
2011 2012 2013 2014 2015
Free cash flow
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98
Cash flow statement
Accounting policy
The consolidated cash flow statement is presented according to the indirect method and shows the composition of cash flow
divided into operating, investing and financing activities, respectively, and the changes in cash and cash equivalents during
the year.
The cash flow statement is based on earnings before special non-recurring items, depreciation, amortisation and impairment (EBITDA).
In net working capital and net interest-bearing debt distinction is made between interest-bearing and non-interest-bearing items, and cash
and cash equivalents:
• Cash and cash equivalents consist of cash and bank deposits
• Interest-bearing debt items are less interest-bearing receivables
• All other non-interest-bearing receivables and debt items are regarded as working capital
Cash flow from operating activities consists of earnings before special non-recurring items, depreciation, amortisation and impairment
(EBITDA) adjusted for non-cash operating items, changes in net working capital and provisions, taxes paid and financial items.
Cash flow from investing activities comprises payments made in connection with the acquisition and disposal of enterprises and activities,
the acquisition and disposal of assets and prepayments of assets.
Cash flow from financing activities comprises changes in the size of the share capital and related costs as well as acquisitions and disposal of
non-controlling interests, treasury shares and payment of dividends to shareholders. The Group’s cash and cash equivalents mainly consist of
cash deposited with banks.
8. Change in provisions
DKKm 2015 2014
Pensions and similar obligations (15) (12)

Other provisions 83 (419)
68 (431)
The change in provisions consist of changes in defined benefit pensions, long-term employee liabilities, guarantees and other provisions.
9. Change in net working capital
DKKm 2015 2014
Inventories 305 (142)

Trade receivables 325 193
Trade payables (262) (557)
Work-in-progress for third parties (236) 1,306
Prepayments from customers (599) (1,217)
Prepayments to subcontractors (120) 149
Other receivables and other liabilities 43 332
Foreign exchange adjustment (189) 104
(733) 168
The change in net working capital is largely impacted by prepayments and work-in-progress for third parties, as a result of few large orders and
current market conditions, slightly offset by collection of trade receivables.
99
10. Financial items received and paid
DKKm 2015 2014
Interest received 42 33
Interest paid (92) (119)
(50) (86)
11. Change in net interest-bearing debt
DKKm 2015 2014
Bank loans, gross (562) (437)

Other liabilities (105) (60)
(707) (514)
For further details, please refer to note 26 of the consolidated financial statements.
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100
At a glance
Net working capital, Capital employed and ROCE
Net working capital - bridge

DKKm
Development from 2014 to 2015
2,700 2,164 112 132 -279 -568 -204 675 229 322 2,583
2,200
1,700
1,200
Net working Bulk material Currency Inventory Work- Trade Prepayments, Trade Other Net working
capital 2014 handling effect in-progress, net receivables net payables capital 2015
Capital employed and ROCE Trade receivables ageing

DKKm (end of year) ROCE DKKm
20,000 20% 6,000
5,000
15,000 15%
4,000
10,000 10% 3,000
2,000
5,000 5%
1,000
0 0% 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Net working capital Tangible assets Intangible assets Overdue more than two months Not overdue
ROCE Long-term ROCE target Overdue up to two months
Net working capital* Trade receivables

(DKKm) (DKKm)
2,583 4,884
up from 2,276 down from 5,026
*continued activities
101
Net working capital, Capital employed and ROCE
12. Specification of net working capital
Notes 13, 14 and 15 show additional specification of selected working capital items. The Group’s net working capital is specified as follows:
DKKm 2015 20141)
Inventories 2,445 2,628

Trade receivables 4,884 5,026
Work-in-progress for third parties, asset 2,526 3,289
Prepayments to subcontractors 347 279
Other receivables 409 527
Financial instruments 128 115
10,739 11,864
Prepayments from customers 1,267 1,831

Trade payables 2,546 2,736
Work-in-progress for third parties, liability 2,453 3,223
Other liabilities 1,616 1,620
Financial instruments 274 290
8,156 9,700
Net working capital 2,583 2,164
Net assets held for sale 133 240
Net working capital of the Group 2,716 2,404

1)
Net working capital amount to DKK 2,276m adjusted for bulk material handling which is reported as discontinued activities.
Other liabilities mainly consist of vendor progress related to projects.
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102
13. Work-in-progress for third parties
Accounting policy
Work-in-progress for third parties is recognised in revenue based on the value of the work completed at the balance sheet date.
The revenue corresponds to the sales value of the year´s completed work based on costs incurred in percentage of the total esti-
mate costs (percentage of completion method).
The stage of completion for the individual project is calculated as the ratio between the cost incurred at the balance sheet date and the total
estimated cost to complete the project. In some projects, where cost estimates cannot be used as a basis, the ratio between completed
subactivities and the total project is used instead. All direct and indirect costs that relates to the completion of the contract are included in
the calculation. Costs deriving from sales work and winning of contracts are not included in the calculation, but are instead recognised in the
income statement in the financial year during which they are incurred.
When invoicing on account exceeds the value of the work completed, the liability is recognised as work-in-progress for third parties under
short-term liabilities. Prepayments are recognised as prepayment received from customers split between long-term and short-term liabilities
based on when they are expected to become effective.
Prepayments to subcontractors consist of prepayments to subcontractors in connection with work-in-progress for third parties and are
measured at amortised cost.
If projects are expected to be loss-making, the loss is recognised immediately in the income statement. Costs not yet incurred are p
rovided
for as other provisions. Provisions are based on individual assessment of the estimated loss until the projects is completed.
Total expected costs related to work-in-progress for third parties are partly based on estimates, as they include provisions
for unforeseen cost deviations in future supplies of raw materials, subcontractor products and services plus construction and
handing over. Provisions for warranties on work-in-progress for third parties are based on Management estimates for each
project, while taking contract obligations into account.
DKKm 2015 2014
Total costs incurred 38,056 40,683

Profit recognised as income, net 6,441 7,483
Work-in-progress for third parties 44,497 48,166
Invoicing on account to customers (44,424) (48,100)
Net work-in-progress for third parties 73 66
of which work-in-progress for third parties is stated under assets 2,526 3,289
and under liabilities (2,453) (3,223)
Net work-in-progress for third parties 73 66
Work-in-progress for third parties consist of all open projects at 31 December, including cost and profit recognised in prior years, not finalised.
103
14. Inventories
Accounting policy
Inventories are measured at cost based on weighted average prices.
In the event that cost of inventories exceeds the expected selling price less cost of completion and selling costs, the inventories
are written down to the lower net realisable value. The net realisable value of inventories is measured as the expected sales price less costs of
completion and costs to finalise the sale.
Write down assessment is performed item by item including:

• Test for slow moving inventory
• Test for aging of inventory
• Assessment of expected market (pricing and market potential)
• Assessment of strategic items
Obsolete items are written down to zero and disposed of.
Work-in-progress, finished goods and goods for resale include cost of manufacturing including materials consumed and labour costs plus
an allowance for production overheads. Production overheads include operating costs, maintenance of production facilities and as well as
administration and factory management directly related to manufacturing.
Assessing net realisable value of inventories requires Management estimates taking into account marketability, obsolescence
and development in expected selling prices. Following the economic downturn in the market, special attention from
Management has been paid to inventory turnover, when determining net realisable value.
DKKm 2015 2014
Raw materials and consumables 304 336

Work-in-progress 244 346
Finished goods and goods for resale 1,876 1,916
Prepayments for goods 21 30
Inventories net of write downs at 31 December 2,445 2,628
Inventories valued at net realisable value 190 182
Write down of inventories

Write down at 1 January (325) (378)
Reclassification to/from assets classified as held for sale 3 61
Additions (53) (41)
Disposals 42 33
Reversals 7 14
Write down at 31 December (339) (325)
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104
15. Trade and other receivables
Accounting policy
Receivables comprise trade receivables, receivables from construction contracts and other receivables.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost. A write down cost is
recognised when there is an indication that an individual receivable cannot be collected. Assessment of bad debt is carried out for individual
receivables and includes:
• Evaluation of the customer´s ability to pay
• Ageing of receivable
• Possibility to offset assets against claims
• Access to other securities
The write down is deducted from the carrying amount of trade receivables and the amount of the cost is recognised in the income statement
as administrative costs.
Estimates are used in determining the level of receivables that cannot, in the opinion of Management, be collected. When
evaluating the adequacy of the allowance for doubtful receivables, Management analyses trade receivables and examines
changes in customer creditworthiness, customer payment patterns and current economic trends.
Trade receivables
Trade receivables net of write downs are specified according to ageing as follows:
DKKm 2015 2014
Ageing:
Not due for payment 2,625 2,491
Overdue up to one month 798 830
Overdue between one and two months 315 319
Overdue between two and three months 154 298
Overdue between three and six months 252 472
Overdue more than six months 740 616
Write down, trade receivables at 31 December 4,884 5,026
Trade receivables include retentions on contractual terms of DKK 366m (2014: DKK 343m), not yet due for payment.
Compared to the end of 2014, currency impacted trade receivables by DKK 143m.
Specification of changes in write down of trade receivables
DKKm 2015 2014
Write down at 1 January (244) (179)

Reclassification to/from assets classified as held for sale 10 14
Foreign exchange adjustment 7 (13)
Additions (229) (130)
Reversals 76 40
Realised 43 24
Write down, trade receivables at 31 December (337) (244)
Other receivables
In 2015, other receivables amounted to DKK 1,076m (2014: DKK 1,236m) which includes the fair value of derivatives of DKK 128m, corporate tax
receivables of DKK 380m, indirect taxes of DKK 141m, prepayments of DKK 28m and a deferred payment of DKK 71m related to the sale of
Cembrit.
105
16. Intangible assets
Accounting policy
Goodwill
Goodwill is measured in the balance sheet at cost in connection with initial recognition. Subsequently, goodwill is measured at
cost less accumulated impairment losses. When recognising goodwill, it is allocated to the cash-generating units as defined
by the Management. The determination of cash-generating units complies with the managerial structure and the internal financial control
and reporting in the Group. Goodwill is tested for impairment at least once a year.
Other intangible assets

Other intangible assets than goodwill with a finite useful life are measured at cost less accumulated amortisation and impairment losses.
Other intangible assets with indefinite useful life are not amortised, but are tested for impairment at least once a year.
Development costs consist of salaries, amortisation and other costs that are directly attributable to development activities.
Development projects, for which the technical rate of utilisation, sufficient resources and a potential future market or application in the
Group can be demonstrated and which are intended to be manufactured, marketed or used, are recognised as completed development
projects. This requires that the cost can be determined and it is sufficiently certain that the future earnings or the net selling price will cover
production, sales and administrative costs plus the development costs. Other development costs are recognised in the income statement
when the costs are incurred.
Amortisation of completed development projects except from software is charged on a straight line basis during their estimated useful life.
Development projects are written down for impairment to recoverable amount if lower. Development projects in progress are tested for
impairment at least once a year.
The amortisation profile is systematically based on the expected useful life of the assets, taking into account remaining patent and agreement period
and consumption (unit for production method) at the time of implementation. The basis of amortisation is reduced by impairment, if any.
Amortisation takes place systematically over the estimated useful life of the assets which is as follows:
• Development costs, up to 5 years
• Software applications, up to 5 years
• Patents, rights and other intangible assets, up to 20 years
• Customer relations, up to 30 years
Management estimates the useful life and expected users of software systems. The asset is then depreciated and amortised
systematically over the expected future useful life.
In connection with restructuring, Management reassesses the useful life and residual values for non-current assets used after the
restructuring.
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106
16. Intangible assets (continued)
DKKm Goodwill Patents Customer Other Completed Intangible Total

and rights relations intangible development assets under
assets projects development
Cost at 1 January 2015 4,305 2,124 1,922 752 507 480 10,090
Reclassification to assets held for sale (37) (32) (14) (11) (3) 0 (97)
Foreign exchange adjustments 129 18 78 15 0 0 240
Disposals of enterprises 0 (12) 0 0 0 0 (12)
Additions 0 0 0 6 0 78 84
Disposals (35) (10) 0 (26) (2) (145) (218)
Transferred between categories 0 0 0 (126) 194 (68) 0
Cost at 31 December 2015 4,362 2,088 1,986 610 696 345 10,087
Amortisation and impairment at 1 January 2014 (30) (634) (715) (643) (171) (144) (2,337)
Reclassification to assets held for sale 5 7 0 1 0 0 13
Foreign exchange adjustments (1) (7) (28) (11) 0 0 (47)
Disposals 26 6 0 26 1 144 203
Amortisation 0 (125) (141) (30) (145) 0 (441)
Transferred between categories 0 0 0 100 (100) 0 0
Amortisation and impairment
at 31 December 2015 0 (753) (884) (557) (415) 0 (2,609)
Carrying amount at 31 December 2015 4,362 1,335 1,102 53 281 345 7,478
DKKm Goodwill Patents Customer Other Completed Intangible Total

and rights relations intangible development assets under
assets projects development
Cost at 1 January 2014 4,738 2,118 1,963 750 199 687 10,455
Reclassification to assets held for sale (49) (20) (5) (11) 0 0 (85)
Foreign exchange adjustments 270 25 148 22 0 0 465
Additions 0 1 0 0 2 130 133
Disposals (654) 0 (184) (42) (10) 0 (890)
Transferred between categories 0 0 0 21 316 (337) 0
Transfer from tangible assets 0 0 0 12 0 0 12
Cost at 31 December 2014 4,305 2,124 1,922 752 507 480 10,090
Amortisation and impairment at 1 January (644) (512) (709) (625) (83) (144) (2,717)
2014
Reclassification to assets held for sale 2 16 4 9 0 0 31
Foreign exchange adjustments (42) (10) (56) (19) 0 0 (127)
Disposals 654 0 184 42 0 0 880
Amortisation 0 (131) (138) (50) (88) 0 (407)
Other adjustments 0 3 0 0 0 0 3
Amortisation and impairment
at 31 December 2014 (30) (634) (715) (643) (171) (144) (2,337)
Carrying amount at 31 December 2014 4,275 1,490 1,207 109 336 336 7,753
In accordance with IFRS, Income statement comparative figures for 2014 have been adjusted, while balance sheet figures are not adjusted. Figures in the Income
Statement, Balance Sheet and Cash flow statement may therefore not be directly comparable.
107
16. Intangible assets (continued)
Much of the knowledge generated in the Group originates from work performed for customers. In 2015, the Group´s research and development
costs totalled DKK 263m (2014: DKK 327m). The total addition of intangible assets includes internal capitalisation of DKK 77m (2014: DKK
36m), where research and development capitalised accounts for DKK 46m (2014: DKK106m). Research and development costs not capitalised
are included in production costs.
For 55% of patents and rights acquired, the estimated useful life is between 10-20 years and for 75% of customers´ relations, the estimated
useful life is between 0-10 years.
Goodwill and trademarks acquired through acquisitions are considered to have indefinite useful life. The carrying amount of goodwill and
trademarks are shown below, divided into segments.
Intangible assets considered to have indefinite useful life
DKKm Customer Product Minerals Cement 2015 2014

Services Companies
Goodwill 2,159 1,772 431 0 4,362 4,275

Trademarks 182 231 518 16 947 1,006
Carrying amount at 31 December 2,341 2,003 949 16 5,309 5,281
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108
17. Tangible assets
Accounting policy
Land and buildings, plant and machinery and other facilities, operating equipment and tools and equipment are measured at
cost less accumulated depreciation and impairment losses. The cost of self-constructed assets includes the cost of materials and
direct labour costs.
epreciation is charged on a straight line basis over the estimated useful life of the assets until they reach the estimated residual value.
D
Estimated useful life is as follows:
• Buildings, 20 – 40 years
• Plant and machinery, 3 – 10 years
• Operating equipment and other tools and equipment, 3 – 10 years
• Lease hold improvements, up to 5 years
• Land is not depreciated
Assets with an acquisition value of less than DKK 50,000 or expected life of less than one year are expensed in the Income Statement at
acquisition.
Newly acquired assets and assets of own construction are depreciated from the time they are available for use.
Where acquisition or use of the asset places the Group under an obligation to incur the costs of pulling down or re-establishing the asset, the
estimated costs for this purpose are recognised as part of the cost of the asset, and are depreciated during the asset’s useful life.
Assets held under a finance lease are measured in the balance sheet at fair value or the present value of future lease payments at the time of
entering the contract, if lower. In calculating the present value, the internal interest rate of the lease agreement is used as a discounting fac-
tor or as the Group’s alternative borrowing rate. Assets held under a finance lease are depreciated like other tangible assets of the Group.
The capitalised residual lease commitment is recognised in the balance sheet as debt whilst the interest component of the lease payment is
recognised in the income statement as a financial item.
For operating leases, the lease payments are recognised in the income statement on a straight line basis over the lease period.
Management makes an estimate of the useful life and residual values. The asset is then depreciated and amortised systemati-
cally over the expected future useful life.
In connection with restructuring, Management reassesses the useful life and residual values for non-current assets used after the
restructuring.
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17. Tangible assets (continued)
DKKm Land and Plant and Operating Tangible Total

buildings machinery equipment, assets
fixtures and in course of
fittings construction
Cost at 1 January 2015 2,374 1,600 826 117 4,917

Reclassification to assets held for sale 0 (5) (12) 0 (17)
Foreign exchange adjustments 119 105 28 3 255
Disposals of enterprises (26) (3) 0 0 (29)
Additions 14 41 35 46 136
Disposals (123) (45) (65) (1) (234)
Transfer from other assets 0 14 0 0 14
Transferred between categories 35 38 32 (105) 0
Cost at 31 December 2015 2,393 1,745 844 60 5,042
Depreciation and impairment at 1 January 2015 (667) (907) (635) (6) (2,215)
Reclassification to assets held for sale 0 3 9 0 12
Foreign exchange adjustments (25) (65) (23) (2) (115)
Disposals 88 41 60 0 189
Depreciations (66) (139) (86) 0 (291)
Depreciation and impairment at 31 December 2015 (670) (1,067) (675) (8) (2,420)
Carrying amount at 31 December 2015 1,723 678 169 52 2,622
DKKm Land and Plant and Operating Tangible Total

buildings machinery equipment, assets
fixtures and in course of
fittings construction
Cost at 1 January 2014 2,441 2,374 824 243 5,882

Reclassification to assets held for sale (284) (1,003) (58) (31) (1,376)
Foreign exchange adjustments 155 132 38 4 329
Disposals of enterprises (5) (8) 0 0 (13)
Additions 20 90 45 38 193
Disposals (18) (36) (37) (1) (92)
Transferred between categories 76 45 17 (138) 0
Transfer to intangible assets (12) 0 0 0 (12)
Other adjustments 1 6 (3) 2 6
Cost at 31 December 2014 2,374 1,600 826 117 4,917
Depreciation and impairment at 1 January 2014 (704) (1,402) (589) (12) (2,707)
Reclassification to assets held for sale 119 701 48 4 872
Foreign exchange adjustments (27) (82) (30) 3 (136)
Disposals 6 0 31 0 37
Depreciation (62) (127) (89) 0 (278)
Transferred between categories 0 4 (4) 0 0
Other adjustments 1 (1) (2) (1) (3)
Depreciation and impairment at 31 December 2014 (667) (907) (635) (6) (2,215)
Carrying amount at 31 December 2014 1,707 693 191 111 2,702
In accordance with IFRS, Income Statement comparative figures for 2014 have been adjusted, while balance sheet figures are not adjusted. Figures in the Income
Statement, Balance Sheet and Cash flow statement may therefore not be directly comparable.
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110
18. Impairment test
Accounting policy
Goodwill and other intangible assets with indefinite useful life are tested for impairment at least once a year and when there is
indication of impairment, the first time being before the end of the year of acquisition. Ongoing development projects are also
tested for impairment at least once per year. The carrying amounts of other non-current assets are reviewed each year
to determine whether there is any indication of impairment. If any such indication exists, the recoverable value of the asset is calculated. The
recoverable amount is the higher of the fair value of the asset less expected disposal costs or value in use.
Loss on impairment is recognised if the carrying amount of an asset or a cash-generating unit exceeds the recoverable amount of the asset or
the cash-generating unit. Impairment losses are recognised in the income statement under the same heading as the related amortisation and
depreciation. Impairment of goodwill is not reversed. Recognition of impairment of other assets is reversed to the extent that changes have
taken place in the assumptions and estimates that led to the recognition of impairment.
Loss on impairment is only reversed to the extent that the new carrying amount of the asset does not exceed the carrying amount the asset
would have had after depreciation or amortisation if the asset had not been impaired.
Intangible assets are primarily related to acquisition of enterprises and activities, software and research and development
projects.
In performing the annual impairment test of assets, an assessment is made as to whether the individual units of the Group
(cash-generating units) to which assets are allocated will be able to generate sufficient positive net cash flow in the future to
support the value of the unit concerned.
Management defines the cash-generating units based on the smallest group of identifiable assets which together generate incoming
cash flow from continued use of the assets and which are independent of cash flow from other assets or groups of assets. The definition
of the cash-generating units is reconsidered once a year.
An estimate is made of the future free net cash flow based on budgets and the strategy for the coming nine years and projections for
the subsequent years (the terminal value). The budget period is set at nine years to include a normal business cycle within the cement
and mining industry. Significant parameters in this estimate are discount rate, revenue development, EBITA margin, expected investments
and growth expectations for the terminal period.
The recoverable amount of a cash-generating unit is based on value in use calculations and is calculated by discounting expected future
cash flow.
Result of annual impairment test

As at 31 December 2015, the carrying amount of goodwill and other intangible assets of indefinite useful life were tested for impairment.
The impairment test as at 31 December 2015 showed no indication of impairment for 2015 (2014: DKK 0). Management is currently of the belief
that no changes in the key assumptions are reasonably likely to reduce the headroom in any of the cash-generating units to zero.
At the annual test of goodwill and other intangible assets of indefinite useful life, impairment was based on the reporting segments: Customer
Services, Product Companies, Minerals and Cement, these being the lowest level of cash-generating unit as defined by Management. The definition
of cash-generating units is based on the certainty by which the carrying amount of the intangible assets can reasonably be allocated and monitored.
The level of allocating and monitoring the Group’s intangible assets among cash-generating units should also be seen in conjunction with the
Group´s strategy. The impairment test is based on the divisional structure implemented in 2015 and for which are the cash-generating units that are
expected to benefit from the intangible assets going forward.
Carrying amounts of goodwill and other intangible assets included in the cash-generating unit for impairment test of those assets are specified on
the following page:
111
18. Impairment test (continued)
Carrying amount 2015
DKKm Goodwill Patents and Customer Development Other

rights acquired relations projects and intangible
software assets
Customer Services 2,159 396 658 158 24

Product Companies 1,772 446 339 156 2
Minerals 431 491 105 155 0
Cement 0 2 0 156 2
Key assumptions
The key assumptions in assessing the recoverable amount are annual growth rate in the budget period, discount rate, long-term growth in the
terminal period and investments.
Key assumptions
Cash-generating unit Investments Annually Growth rate Discount rate Discount rate EBITA
average growth in the terminal after tax before tax margin
rate in budget period
period
Customer Services 2.5% of revenue 5.0% 1.5% 7.5% 10.2% 16.3%

Product Companies 2.5% of revenue 5.0% 1.5% 7.5% 10.2% 15.4%
Minerals 1.0% of revenue 7.0% 1.5% 7.5% 10.2% 2.0%
Cement 1.5% of revenue 4.0% 1.5% 7.5% 10.2% 5.0%
The Group expects an EBITA margin of 7-9% in 2016 and in the long-term margin of 10-13%.
The discount rate has been revised for each cash-generating unit to reflect the latest market assumptions for the risk free rate based on a 10-year
Danish government bond, the equity risk premium and the cost of debt.
The long-term growth rate for the terminal period is based on the expected growth in the world economy as well as input from current long term
inflation swaps. Due to the current low interest rate environment, a conservative approach regarding the long-term growth rate for the terminal
period has been applied. This methodology has been applied to ensure consistency with the level of the risk free rate applied as a basis for the
estimation of discount rate (WACC) and the long-term growth rate. Based on these factors, a long term growth rate for the terminal period of 1.5%
has been applied.
Investments reflect both maintenance and expectations of organic growth.
Management determines the expected annual growth rate in the budget period and the expected margins based on historical experience and
assumptions about expected market developments:
Customer Services
Growth is based on servicing the existing installed base as well as the additional installed base generated from new Cement and Minerals project
business. Further growth is expected from expanding the wear parts and maintenance business, both of which contain a significant organic growth
potential.
Despite the mining CAPEX downturn and a significant decline in commodity prices, production levels have been stable or even increasing for
FLSmidth’s key minerals in recent years, and production levels are the key driver for parts and other service business. Although the global cement
industry remains subdued, global cement consumption continues to rise, and the increasing demand for cement results in wear and tear of cement
plants and a need for parts and services.
Growth is expected to be supported by market developments and organic growth initiatives such as globalisation of service offerings and
concentration of product line management on productivity focused solutions. Customers’ increased focus on productivity means good growth
opportunities within plant audits, retrofits and preventive maintenance services.
Product Companies
Growth is based on expanding the division’s leading niche products to their full global potential. The nine product companies all have a potential to
grow in their core markets as well as adjacent industries where existing technologies can be applied.
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112
18. Impairment test (continued)
Minerals
Growth is based on a trough in mining CAPEX in 2016, slight growth from the end of 2017, and an expected long-term increase in activity. Shorter-
term fundamentals are strongest for copper and gold which historically made up the biggest part of FLSmidth’s minerals business, whereas coal
and iron ore will pick up again in the medium to long-term. Growth is expected to be supported by new offerings related to ongoing research and
development projects and pilot plants with partners, for example, increased focus on process expertise, water recovery, dry-stacked tailings and waste
handling systems, and innovations surrounding energy efficient comminution and flotation technologies.
Cement
Growth is based on a rising world population, increasing urbanisation, growing wealth and increasing demand for energy and infrastructure. Growth
is expected to be supported by a cyclical rebound in the cement industry in the coming years coupled with leveraging the ‘Design, Build, Operate’
business model and offering the most productive and sustainable cement technology.
Sensitivity analysis
A sensitivity analysis has been performed of the main assumptions in the impairment test to identify the lowest and/or the highest discount rate
and the lowest growth rate for each cash-generating unit without resulting in any impairment losses. A summary of the sensitivity analysis is shown
below:
DKKm Average growth rate in Minimum growth* Discount rate applied Maximum discount rate
the budget
Customer Services 5% n/a* 7,5% 20%
Product Companies 5% n/a* 7,5% 19%
Minerals 7% n/a* 7,5% 11%
Cement 4% n/a* 7,5% n/a
* With a growth of zero there are no indications of impairment.
19. ROCE
DKKm 2015 2014 1) 2013 1) 2012 1) 2011 1)
Intangible assets, cost 10,087 10,059 10,356 10,757 8,231

Tangible assets, carrying amount 2,622 2,697 2,665 2,783 1,913
Net working capital 2,583 2,276 2,027 1,553 1,174
Total capital employed 15,292 15,032 15,048 15,093 11,318
Total capital employed, average 15,162 15,040 15,070 13,205 10,236
EBITA 1,582 1,823 1,379 2,703 2,399
ROCE 10% 12% 9% 18% 21%
ROCE, average 10% 12% 9% 20% 23%
1)
Capital employed, 2011-2014 figures are adjusted for capital employed related to Cembrit and bulk material handling.
113
At a glance
Provisions, liabilities and financial items
Provisions Provisions
(DKKm) DKKm
2,500
1,556
2,000
1,500
1,000
500
down from 1,598 0
2011 2012 2013 2014 2015
Total provisions
Warranties Pension - over/underfunding

DKKm
(DKKm) 0
782
-50
-100
-150
-200
-250
up from 737 -300
2011 2012 2013 2014 2015
Pension funding
Net interest-bearing debt Net interest-bearing debt

Net interest-bearing debt Financial gearing (NIBD/EBITDA)
(DKKm) DKKm
5,000 5
3,674
4,000 4
3,000 3
2,000 2
down from 4,593 1,000 1
0 0
2011 2012 2013 2014 2015
Net interest-bearing debt

Financial gearing Financial gearing target
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114
Provisions and liabilities
20. Provisions
Accounting policy
Provisions are recognised when the Group, due to an event occurring before or at the balance sheet date, has a legal or
constructive obligation and it is probable that financial benefits must be waived to settle the obligation. Provisions are
measured according to Management’s best estimate of the amount whereby the obligation is expected to be settled.
Provisions for warranty claims are estimated on a project-by-project basis based on historical realised cost related to claims in the past. The
provision covers estimated own costs of completion, subsequent warranty supplies and unsettled claims from customers or subcontractors.
Provisions regarding disputes and lawsuits are based on Management’s assessment of the likely outcome settling the cases based on the
information at hand at the balance sheet date.
The cost of loss-making projects covering projects expected to result in a loss, is recognised immediately in the income statement. Losses not
yet incurred are provided for as other provisions.
Provisions for restructuring costs are based on Management’s best estimate. Provisions are only made for liabilities deriving from restructuring
that has been decided at the balance sheet date in accordance with a specific plan, and only provided that the parties involved have been
informed about the overall plan.
Provisions consist of:

• Estimated warranty claims in respect of goods or services already delivered
• Restructuring including the provisions for costs related to efficiency programmes
• Guarantees and liabilities resulting from disposal of enterprises and activities (included in other provisions)
• Provisions for loss-making contracts (included in other provisions)
• Provisions for losses resulting from disputes and lawsuits (included in other provisions)
• Provisions for tax risks (included in other provisions)
When assessing work-in-progress for third parties, a number of project-related risks have been taken into account, including performance
guarantees and operation and maintenance contracts for which allowances are made based on Management estimates. A few cases are
pending before the court in connection with previously supplied projects. Provisions have been made to counter any losses that are estimated
to occur in settling the cases.
Management assesses provisions and the likely outcome of pending and probable lawsuits, ect. on an ongoing basis.
The outcome depends on future events, which are by nature uncertain. In assessing the likely outcome of lawsuits and
tax disputes, Management bases its assessment on internal and external legal assistance and established precedents. Tax
provisions are made to cover expected additional future tax liabilities related to financial year or previous years.
Warranties and other provisions are measured on the basis of empirical information covering several years as well as legal opinions.
Together with estimates by Management of future trends this forms the basis for warranty provisions and other provisions. Long-term
warranties and other provisions, discounting to net present value takes place based on the future cash flow and discount rate expected
by Management.
115
20 Provisions (continued)
DKKm 2015
Warranties Restructuring Other Total
Provisions at 1 January 737 49 812 1,598
Transfer to assets held for sale (14) (17) (46) (77)
Exchange rate and other
adjustments 31 (4) 8 35
Disposal of Group enterprises 0 0 9 9
Provision for the year 389 3 494 886
Used during the year (159) (17) (237) (413)
Reversals (234) 0 (243) (477)
Discounting of provisions 1 0 0 1
Reclassification to/from
other liabilities 31 0 (37) (6)
Provisions at 31 December 782 14 760 1,556
The maturity of provisions

is specified as follows:
Short-term liabilities 1,047
Long-term liabilities 509
1,556
DKKm 2014
Warranties Restructuring Other Total
Provisions at 1 January 919 187 1,003 2,109
Transfer to assets held for sale (149) (27) (20) (196)
Exchange rate and other
adjustments 35 9 23 67
Disposal of Group enterprises 0 (8) (1) (9)
Provision for the year 287 23 473 783
Used during the year (164) (120) (402) (686)
Reversals (179) (15) (244) (438)
Discounting of provisions 1 0 0 1
Reclassification to/from
other liabilities (13) 0 (20) (33)
Provisions at 31 December 737 49 812 1,598
The maturity of provisions is

specified as follows:
Short-term liabilities 1,047
Long-term liabilities 551
1,598
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116
21. Long-term liabilities
The maturity structure of long-term liabilities divided into liabilities between one and five years and liabilities where time to maturity is more than five
years.
DKKm 2015 2014
Maturity structure of long-term liabilities:

Deferred tax liability 47 245
Other provisions 407 537
Pension liabilities 21 123
Bank loans and mortgage debt 2,907 1,916
Prepayments from customers 120 229
Other liabilities 128 126
Between one and five years 3,630 3,176
Deferred tax liability 333 307

Other provisions 102 14
Pension liabilities 257 140
Bank loans and mortgage debt 1,884 2,213
After five years 2,598 2,692
6,228 5,868
Other long-term liabilities consist of employee bonds and other employee liabilities such as service liabilities and bonuses.
117
22. Contractual liabilities and contingent liabilities
The Group leases properties and operating equipment under operating leases. The lease period is primarily one to five years with an option for
extension after the period expires.
DKKm 2015 2014
Minimum rent and operating lease commitments, time to maturity:

Within one year 31 8
Between one and five years 122 151
After five years 4 1
157 160
Guarantees 53 32
Other contractual obligations 260 306
313 338
Rent commitments are mainly related to commercial leases and equipment.
In connection with the disposal of Group enterprises, guarantees, etc. are issued to the acquiring enterprise. Provisions are made for estimated
losses on such items.
When assessing work-in-progress for third parties, a number of project-related risks such as performance, quality and delay of projects are
taken into consideration, and estimates and allowances are made based on Management estimates. The financial partners of the Group provide
usual security in the form of performance guarantees, etc. for contracts and supplies. At the end of 2015, the total value of performance and
payment guarantees issued amounted to DKK 5.6bn (2014: DKK 5.9bn). In cases where a guarantee is expected to materialise, a provision
for this amount is made under the heading of other provisions. The Group has non-committed guarantee facilities in financial institutions
exceeding DKK 11.3bn (2014: DKK 11.2bn).
In addition, the Group is from time-to-time involved in disputes that are normal for its business. The outcome of ongoing disputes is not
expected to have any significant impact on the Group’s financial position.
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118
23. Pension assets and liabilities
Accounting policy
The Group has signed post-employment benefit plans or similar arrangements with a large part of the Group’s employees.
Under defined contribution plans, the employer is required to contribute a certain amount (for example a fixed sum or a fixed
percentage of their pay). Under a defined contribution plan, the employees usually bear the risk with regard to future developments in the
rates of interest, inflation, mortality and disability. Payments by an enterprise into defined contribution plans are recognised in the income
statement for the period to which they apply and any outstanding payments are recognised in the balance sheet under other payables.
Under defined benefit plans, the employer is required to contribute a certain amount (for example a retirement pension as a fixed sum or a
fixed percentage of the final pay). Under a defined benefit plan, the enterprise usually bears the risk with regard to future developments in
the rates of interest, inflation, mortality and disability. Changes in the computation basis result in a change in the actuarial net present value
of the benefits which the enterprise is to pay in the future under this plan. Fair value is only calculated for benefits to which the employees
have become entitled through their employment with the enterprise to date. The actuarial net present value less the fair value of any assets
related to the plan is stated in the balance sheet among pension assets and liabilities.
Differences between the expected development of pension assets and liabilities and the realised values are described as actuarial gains or
losses. Actuarial gains and losses are recognised in other comprehensive income.
Changes in benefits concerning the employees’ former employment in the enterprise result in a change in the actuarial net present value,
which is considered a historical cost. Historical costs are charged immediately to the income statement if the employees have already acquired
a right to the changed benefit. Otherwise, the historical costs are recognised in other comprehensive income.
In stating the value of the Group’s defined benefit plans, the statement is based on external actuarial assessments and
assumptions such as discount rate, expected return on the plan assets, expected increases in salaries and pension, inflation
and mortality.
The pension liabilities incumbent on the Danish Group enterprises are funded through insurance plans. The pension liabilities of certain foreign
Group enterprises are also funded through insurance plans. Foreign enterprises, primarily in USA, Switzerland and Germany, whose pension
liabilities are not - or only partially - funded through insurance plans (defined benefit plans) state the unfunded liabilities on an actuarial basis
at the present value at the balance sheet date. These pension plans are partly covered by assets in pension funds. The Group’s defined benefit
plans were DKK 283m underfunded at 31 December 2015 (2014: DKK 266m) for which a provision has been made as pension liabilities.
In the consolidated income statement, DKK 493m (2014: DKK 427m) has been recognised as contribution plans funded through insurance
(defined contribution plans) and other security costs etc. In the case of plans not funded through insurance (defined benefit plans), DKK -5m is
recognised (2014: DKK 7m) in the consolidated Income Statement.
The actuarial result for the year at DKK -16m (2014: DKK -123m) is recognised in the statement of other comprehensive income.
119
23. Pension assets and liabilities (continued)
DKKm 2015 2014 2013 2012 2011
Present value of defined

benefit plans (1,044) (974) (786) (893) (784)
Fair value of the plan assets 761 708 626 600 567
Over-/(underfunded) (283) (266) (160) (293) (217)
Actuarial gains/losses, liabilities 18 (123) 71 (119) (32)

Actuarial gains/losses, assets (34) 0 43 17 (6)
Actuarial gains/losses, total (16) (123) 114 (102) (38)
In 2016, the Group expects to pay a contribution of DKK 50m into its defined benefit plans.
DKKm 2015 2014
Present value of defined benefit plans (1,044) (974)

Fair value of the plan assets 761 708
Total (283) (266)
Change in recognised liability

Net liability at 1 January (266) (160)
Other adjustments including foreign exchange adjustments (12) (6)
Net amount recognised in the income statement (5) 7
Actuarial gains and losses recognised in other comprehensive income (16) (123)
Contributions 1 13
Paid-out benefits 15 10
Settlements 0 (7)
Net liability at 31 December (283) (266)
Presented as assets 0 3
Presented as liabilities (283) (269)
(283) (266)
Recognised in the income statement
Pension costs (17) (8)
Calculated interest on liabilities (36) (31)
Calculated return on the plan assets 48 46
Recognised in the income statement regarding defined benefit plans (5) 7
The amounts are included in production costs, sales and distribution costs and
administrative costs.
Adjustments for the year of defined benefit plans based on experience

(pension liabilities), gains/losses 18 (123)
Return on plan assets

Calculated return on the plan assets (48) (46)
Actual return on the plan assets 14 46
Actuarial gains/losses for the year on the plan assets (34) 0
The expected return is fixed on the basis of the weighted return on the plan assets.
The assumptions on which the actuarial computations at the balance sheet date are based are
as follows on average (weighted):
Average discounting rate applied 2.5% 3.0%

Expected return on tied-up assets 0.1% 2.0%
Expected future pay increase rate 1.4% 1.2%
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120
23. Pension assets and liabilities (continued)
DKKm 2015 2014

Present value of defined benefit plans
Present value at 1 January (974) (786)
Pension costs (17) (9)
Calculated interest on liabilities (36) (31)
Paid-out benefits 56 54
Actuarial gains and losses* 18 (123)
Membership contributions (5) (4)
Settlements 0 (5)
Present value at 31 December (1,044) (974)
Fair value of the plan assets

Fair value of the plan assets at 1 January 708 626
Foreign exchange adjustment 74 64
Calculated return on the plan assets 48 46
Payment 3 (6)
Paid-out benefits (44) (22)
Actuarial gains and losses* (34) 0
Membership contribution 6 0
Fair value of the plan assets at 31 December 761 708
Specification of the fair value of the plan assets

Equity instruments 344 328
Debt instruments 240 232
Other assets 177 148
Total fair value of the plan assets 761 708
Specification of the fair value of the plan assets in per cent

Equity instruments 45% 46%
Debt instruments 32% 33%
Other assets 23% 21%
Defined benefit plan liabilities specified by country

USA 56% 59%
Switzerland 22% 17%
Germany 14% 15%
India 4% 4%
Italy 2% 2%
Canada 1% 2%
Mexico 1% 1%
* Actuarial gain and losses relate primarily to changes in financial assumptions.
Sensitivity analysis defined benefit plans:

Below is shown a sensitivity analysis based on possible changes in the assumptions defined at the balance sheet date, while other assumptions
are held constant.
Change in defined benefit obligation:
DKKm 2015 2014
Discount rate - 1% (104) (138)

Discount rate + 1% 127 117
121
Financial items
24. Financial income and costs
Accounting policy
Financial income and costs comprise interest income and costs, the interest portion of finance leases, realised and
unrealised exchange gains and losses on securities, liabilities and transactions in foreign currency, amortisation related
to mortgage debt, etc.
Interest income and costs are accrued on the basis of the principal amount and the effective interest rate. The effective interest rate
is the discount rate used to discount the anticipated future payments which are related to the financial asset or the financial liability
so that the present value of the payments corresponds to the carrying amount of the asset and the liability, respectively.
DKKm 2015 2014
Financial income
Interest income from financial assets that are not measured at fair value in the income statement 36 32
Fair value adjustment of derivatives 386 279
Foreign exchange gains 1,198 1,069
Dividend from shares 32 19
1,652 1,399
Financial costs
Interest costs from financial liabilities that are not measured at fair value in the income statement (98) (119)
Fair value adjustment of derivative financial instruments (463) (429)
Foreign exchange losses (1,347) (988)
(1,908) (1,536)
Financial cost were adversely impacted by settlement of ineffective hedges as well as emerging markets currency volatility.
25. Maturity structure of financial liabilities
DKKm 2015 2014
Time to maturity:
Within one year 4,369 5,939
Between one and five years 3,001 2,003
Total 9,275 10,174
Financial liabilities include bank loans and mortgage debt of DKK 4,878m (2014: DKK 5,530m) and trade payables of DKK 2,546m
(2014: 2,736m).
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122
26. Specification of net interest-bearing debt
Currency 2015 Effective Interest period 2014 1) Effective

DKKm interest rate DKKm interest rate
< 1 year 1-5 years > 5 years
Mortgage debt EUR (307) 0.5% 100% 0% 0% (352) 0.7%
Bank loans USD (1,605) 1.0% 100% 0% 0% (2,234) 1.0%
Bank loans EUR (2,966) 1.1% 100% 0% 0% (2,944) 1.4%
Total debt (4,878) (5,530)
Total cash and cash equivalents,

excl. net asset held for sale 1,123 963
Other asset 80 9
Total securities 1 1
Net interest-bearing debt (3,674) (4,557)
1)
Net interest-bearing debt amount to DKK 4,593m adjusted for bulk material handling reported as discontinued activities.
Bank deposits which are placed in countries with currency restrictions, or are difficult to repatriate to Denmark. The cash is used to cover local
operating costs.
Bank deposits with currency restrictions total DKK 819m (2014: DKK 792m) and are attributable to the following countries:
DKKm
350
300
250
200
150
100
50
0
India China South Africa Egypt Brazil Russia Peru Indonesia Botswana Chile Other
2015 2014
Development in net interest-bearing debt:
DKKm 2015 2014
Net interest-bearing debt at 1 January (4,557) (4,718)

Cash flow from operating activities 538 1,298
Acquisition of enterprises and activities 0 (200)
Net investments in intangible, tangible and financial assets 750 (412)
Paid dividend (446) (104)
Acquisition/disposal of treasury shares 17 (185)
Other items 20 (17)
Earn-out value adjustment (17) (6)
Currency adjustments, etc. 55 (155)
Interest-bearing debt at 31 December, Group (3,640) (4,499)
Net assets held for sale (34) (58)
Net interest-bearing debt, excluding assets and liabilities held for sale (3,674) (4,557)
123
27. Financial risks
Introduction
The Group is exposed to multiple financial risks due to its global operations. The financial risks include currency, interest, liquidity and credit risks.
The overall framework for managing financial risks is contained in the Groups’ Financial Policy, which is approved by the Board of Directors.
Most of the Group’s financial transactions are carried out centrally by Group Treasury, located in Denmark.
Group Treasury creates value by utilizing economies of scale ensuring cost effective management of financial facilities, daily loans /deposits,
currency and interest exposure and cash management optimization. Group Treasury identifies, evaluates and hedges financial risks in close
coordination with the various business units.
Additionally, Group Treasury negotiates both global and local credit and guarantee facilities. Group Treasury acts as financial advisor to Group
companies on financial risks, and wording of export letters of credit, bank and corporate guarantees and financial packages for customers.
Financial risk Impact Policy Mitigation

(Low, Medium
or High)
Currency risk Medium Limit set out in Group Financial • Group Treasury uses derivative financial instruments to hedge risk
Policy and managed by VaR (Value exposures
at Risk) at Group level on a daily
basis • Exposures are hedged no later than when purchase orders or sales
contracts become effective
The primary purpose of hedging
currency exposures is to reduce
cash flow and earnings volatility.
The Financial Policy sets out various
hedging thresholds to be managed
by Group Treasury
Credit risk Medium Credit risks on customers and • Continuous credit assessment of customers and trading
partner / suppliers are mainly partners / suppliers. Credit risks are mainly managed by the four
managed by the different business business divisions
units
• Credit risks is reduced by receiving prepayments and export letters
The Board of Directors has of credits
approved a framework for
managing counterparty risks on • Group Treasury uses financial institutions with acceptable credit
banks for Group Treasury ratings
Interest Risk Low The Financial Policy sets out various • Group Treasury uses derivative financial instruments to hedge risk
thresholds to manage the interest exposures
risk of the Group
Modified duration of the debt

portfolio and exposures thresholds
per currency are the main
parameters managed by Group
Treasury
Liquidity Risk Low The Financial Policy sets out various • FLSmidth has various long-term committed financial facilities with
thresholds to manage the liquidity multilateral banks and core commercial banks
risk of the Group
• FLSmidth also has various short-term uncommitted overdraft
Diversity in debt resources, debt facilities with its core commercial banks
maturities and liquidity buffers are
the key parameters managed by • Cash management is optimised by operating cash pool systems
Group Treasury in accordance with
the Financial Policy • Group Treasury aims at having cash centralised in our cash pools
where possible
Currency risk
The Group currency risks derive from the impact of exchange rates on future commercial and financial payments. A large portion of the Group’s
revenue is order based with long time to completion which creates currency exposures, for instance between the revenue currency of the contract
(typically USD) and the costs associated to the project which might be in local currencies.
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124
27. Financial risks (continued)
The main purpose of hedging the Group’s currency risk is to reduce cash flow and earnings volatility by hedging exposures back to local
(functional) currencies. Group Treasury uses various financial derivatives to hedge these risks. The main aspects of currency hedging policy are:
• Hedge FX exposures on large projects and other large transactional exposures
• Hedge debt and cash back to the functional currency of the entity holding the exposures
Group Treasury manages the Group´s overall currency position by means of Value at Risk (VaR) which must not exceed DKK 5m per day. VaR as of
December 31 2015 was under DKK 1m for the risks known to Group Treasury. A 5% increase in a given exchange rate against the Danish Krone
would have had the following impact on the consolidated profit and equity for 2015:
Impact:
DKKm EUR USD INR AUD ZAR CAD CLP
EBITA 4 5 0 5 4 1 8
Equity 136 217 63 42 24 53 25
Credit risk
The use of financial instruments entails the risk that the counterparties might not honour their obligations. This financial counterparty risk is
minimized by using various financial counterparties, all with an acceptable credit rating.
The Group is also exposed to commercial credit risks, which arise from our customers not paying their receivables, or our suppliers not delivering
their goods. However, FLSmidth has no particular concentration of suppliers or customers. For instance, in 2014 and 2015, no single customer
accounted for more than 5% of the revenue. Moreover, the credit risk related to trade receivables is generally managed by continuous risk
assessment and credit evaluation of major customers and trading partners. Credit risks on counterparties other than banks are minimized to the
extent possible through the use of export letters of credit and guarantees, or by securing positive cash flow throughout the project execution.
Interest rate risks

Interest rate risks concern the interest-bearing assets and liabilities of the Group. The interest-bearing financial assets consist primarily of
cash in financial institutions and the interest-bearing liabilities mainly consist of bank and mortgage debt. The main funding currencies of the
Group are DKK, EUR, USD and AUD. The hedging of interest rates is governed by a duration range and it is managed by using derivatives
such as interest rates swaps.
As of December 31 2015, close to 100% of the Group’s interest-bearing debt carried a floating rate. Other things being equal, a 1% increase
in the interest rate will have a DKK 37m negative effect on the Group’s interest earnings (2014: DKK 46m).
Liquidity Risks
The purpose of the Group’s cash management is to ensure that the Group at all times has sufficient and flexible financial resources at its
disposal to assure continuous operations and honour obligations when due. The Group manages its short-term liquidity risks through cash
pools systems in various currencies and by having short-term overdraft facilities in place with various financial institutions. Long-term liquidity
risk is managed through committed financial facilities.
At the end of 2015, FLSmidth & Co A/S had entered into the following committed financial facilities:
DKKm
Commitment expiry 0 - 12 months 12 - 60 months > 60 months
Multilateral banks:
European Investment Bank (EUR) (fully drawn) 0 930
Nordic Investment Bank (EUR) (fully drawn) 0 967
Commercial banks:
Core relationship banks 0 1,100 5,306
The weighted average maturity is 4.5 years (2014: 4 years) which is within the limits of the Group’s Financial Policy.
The committed facilities contain standard clauses such as pari passu, negative pledge, change of control and a leverage financial covenant.
The Group did not in 2015 or 2014 default on or failed to fulfil any financial facilities.
Additionally, the Group continuously monitors its liquidity buffer which shall never be lower than DKK 2bn at any point of time, at present and
based on 12-month forecasts. Liquidity buffers are monitored on a daily basis. As of December 31 2015, the liquidity buffer of the Group is well
above the threshold.
Please see note 25 in the consolidated financial statements for maturity structure of financial liabilities.
125
28. Derivatives
Accounting policy
Derivatives are initially recognised in the balance sheet at fair value and subsequently measured according to fair value at the
balance sheet date. The fair value of derivatives is included in other receivables (positive fair value) or other liabilities (nega-
tive fair value) as the case may be. Positive fair values are only offset against negative fair values if the enterprise is entitled
to and intends to make a net settlement of several financial instruments (cash settlement). The fair values of derivatives are measured on
the basis of market data and recognised valuation methods.
Changes in the fair value of derivatives that are classified as and fulfil the criteria for hedging the fair value of already recognised assets or
liabilities or binding agreements (fair value hedge) are recognised in the income statement together with changes in the value of the assets
and liabilities hedged as far as the hedged portion is concerned. Hedging of future cash flow in accordance with an agreement signed,
including exchange rate hedging of sales or purchase contracts in connection with orders, is treated as hedging of the fair value of a
recognised asset or a recognised liability.
Derivatives that do not fulfil the criteria for hedge accounting are regarded (hedge accounting disregarded) as trading portfolio and
recognised in the balance sheet at fair value on the balance sheet date. Value adjustments are recognised in the income statement as
financial items.
Certain contracts contain conditions that correspond to derivatives. In case the embedded derivatives deviate significantly from the overall
contract, they are recognised and measured as separate instruments at fair value, unless the contract concerned as a whole is recognised
and measured at fair value.
Fair value of hedge instruments not qualifying for hedge accounting (economic hedge)
Fair value adjustments recognised in financial items in the Income Statement amounted to DKK -156m in 2015 (2014: DKK -35m).
At 31 December 2015, the fair value of the Group’s hedge agreements that are not recognised as hedge accounting amounted to DKK -135m
(2014: DKK -43m).
Fair value hedge

To minimise the foreign currency exposure arising from trade receivables, financial liabilities and firm commitments, the Group uses forward
exchange contracts. The change in the fair value is specified below:
DKKm 2015 2014
Fair value recognised in hedged items 0 (2)

Included in the income statement (1) 2
At 31 December 2015, the fair value of the Group’s fair value hedge instruments amounted to DKK 0m (2014: DKK -1m).
Hedging of forecast transactions (cash flow hedge)

The Group uses forward exchange contracts to hedge currency risks regarding expected future cash flows that meet the criteria for cash flow
hedging. The fair value reserve of the derivatives is recognised in other comprehensive income until the hedged items are included in the income
statement. In addition, unrealised fair value of derivatives is recognised in other receivables and other liabilities.
DKKm 2015 2014
Cash flow hedge reserve recognised in other comprehensive income (85) (153)
Reclassified from other comprehensive income into income statement 43 113
Hedge ineffectiveness on cash flow hedges (45) 0
At 31 December 2015, the fair value of the Group’s cash flow hedge instruments amounted to DKK -40m (2014: DKK -128m).
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126
29. Treasury shares
Accounting policy
Treasury shares
Treasury shares are recognised in the balance sheet at zero value. When buying or selling treasury shares, the purchase or selling
amount plus any dividend is recognised directly in equity among retained earnings.
The year’s movements in holding of treasury shares (number of shares): 2015 2014
Treasury shares at 1 January 2,412,491 3,739,783

Cancellation of shares 0 (1,950,000)
Acquisition of treasury shares 18,666 664,485
Share options exercised (103,229) (41,777)
Treasury shares at 31 December 2,327,928 2,412,491
The holding of treasury shares represents 4.5% (2014: 4.7%) of the share capital.
127
30. Share-based payment, option plans
Accounting policy
Plans classified as equity-settled share options are measured at fair value at grant date of allocation and are recognised in the
income statement as staff costs within the period in which the final entitlement to the options is attained. The counter item is
recognised directly in the equity.
In connection with initial recognition of share options, an estimate is made of the number of options to which Management and key staff are
expected to become entitled. Subsequent adjustment is made for changes in the estimate of the number of option entitlements so the total
recognition is based on the actual number of option entitlements.
The fair value of the options allocated is estimated by means of the Black & Scholes model. The calculation takes into account the terms and
conditions under which the share options are allocated.
Share-based incentive plans under which the employees may only choose to receive the value in cash are measured at fair value at the time
of allocation and are recognised in the income statement among staff costs for the period in which the final entitlement to the cash amount
is achieved. The incentive plans are subsequently re-measured on each balance sheet date and at the time of final settlement. The changes in
the fair value of the plans are recognised in the income statement among staff costs in relation to the past period during which the employees
achieved final entitlement to settlement in cash. The counter item is recognised under liabilities.
The Executive Management and a number of key employees in the Group have been granted options to purchase 2,955,571 shares in the
company at a set price (strike price).
The Group’s share option plan includes a “change of control” clause giving the holders the right to immediately exercise their options in
connection with an acquisition.
Share-based plans (2008-2015 plan)

The share option plans for 2008-2015 are share-based payment arrangements. The value of the options is recognised in the income
statement under staff costs on a linear basis from the time of allocation to the initial time of acquisition, which means that, at the time
of exercising the option, no further recognition in the income statement takes place.
Specification of outstanding numbers:

Number of shares Executive Management Key employees Total number
Outstanding options 1 January 2014 169,519 1,602,084 1,771,603

Allocated for 2013 (issued 15 November 2013) 0 6,000 6,000
Terminations, member of Executive Management (46,918) 46,918 0
Exercised of 2009 plan 0 (19,600) (19,600)
Lapsed (8,650) (102,450) (111,100)
Allocated for 2014 (issued 22 August 2014) 103,211 490,574 593,785
Allocated for 2014 (issued 15 November 2014) 0 266,950 266,950
Outstanding options 31 December 2014 217,162 2,268,299 2,485,461
Allocated for 2013 (issued 15 November 2013) (37,131) 37,131 0

Terminations, member of Executive Management 23,895 (23,895) 0
Exercised of 2009 plan (8,025) (59,525) (67,550)
Lapsed 0 (48,602) (48,602)
Allocated for 2015 (issued 15 November 2015) 119,766 502,175 621,941
Outstanding options 31 December 2015 315,667 2,639,904 2,955,571
Number of options that are exercisable at 31 December 2015 49,845 862,282 912,127
Number of options that are exercisable at 31 December 2014 42,183 580,801 622,984
Total fair value of outstanding options DKKm
At 31 December 2015 10 78 88
At 31 December 2014 8 82 90
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128
30. Share-based payment, option plans (continued)
2015 2014
Average weighted fair value per option 29.75 36.40

Average weighted strike price per option 276.71 279.78
Average price per share at the time of exercising the option 304.49 305.54
In 2015, the recognised fair value of share options in the consolidated income statement amounts to DKK 37m (2014: DKK 43m).
The calculation of average weighted fair value and strike prices per option is based on a dividend of DKK 4 in 2015 and DKK 9 expected going
forward in the exercise period.
Year of allocation, strike price and exercise period for the individual allocations are as follows:
Year of allocation Strike price Exercise period Allocated Lapsed Exercised Outstanding
2009 200.00 2014-2015 161,210 (14,304) (146,906) 0
2010 358.00 2015-2016 170,700 (15,000) 0 155,700
2011 allocated in August 245.00 2015-2016 340,390 (13,158) (57,856) 269,376

236.00 2016-2017
2011 allocated in November 326.00 2015-2016 80,050 (1,601) 0 78,449

317.00 2016-2017
2012 allocated in August 336.00 2015-2016 311,732 (8,340) 0 303,392

332.00 2016-2017
323.00 2017-2018
287.00 2016-2017
278.00 2017-2018
280.00 2017-2018
271.00 2018-2019
246.00 2017-2018
237.00 2018-2019
285.20 2018-2019
276.20 2019-2020
2014 allocated in November 247.00 2017-2018 266,950 0 0 266,950
238.00 2018-2019
229.00 2019-2020
2015 allocated in November 248.00 2018-2019 621,941 0 0 621,941
239.00 2019-2020
230.00 2020-2021
The calculated fair values in connection with allocation are based on the Black & Scholes model for valuation of options.
The calculation of the fair value of share options at the time of allocation is based on the following assumptions:
Allocated in Allocated in Allocated in

November 2015 November 2014 August 2014
Average price per share 279.00 278.00 325.20

Strike price per share 279.00 278.00 325.20
Expected volatility 33.26% 26.42% 29.50%
Expected life 4 1/2 years 4 1/2 years 4 1/2 years
Expected dividend per share DKK 9 DKK 9 DKK 9
Risk-free interest 0.0-0.6% 0.0-0.6% 0.0-0.6%
Number of share options allocated 621,941 266,950 593,785
Fair value per option, DKK 55.79 39.33 55.93
Total fair value, DKKm 35 10 33
The expected volatility is based on the historical volatility in the preceding 12 months.
The expected life is the weighted average residual life of the share options allocated.
129
31. Categories of financial instruments and fair value hierarchy of financial instruments
The carrying amount of financial instruments for each category is specified in the table below:
DKKm 2015 2014
Financial assets available for sale 116 90

Receivables measured at amortised cost including cash and cash equivalents 9,415 10,878
Financial assets measured at fair value through the income statement 128 116
Financial liabilities measured at amortised cost 9,079 9,950
Financial liabilities measured at fair value through the income statement 274 290
The fair value of financial assets and financial liabilities measured at amortised cost is approximately equal to the carrying amount.
Receivables measured at amortised cost including cash and cash equivalents include trade receivables of DKK 4,884m (2014: 5,026m) work-in-
progress for third parties of DKK 2,526m (2014: DKK 3,289m), inventories of DKK 2,445m (2014: 2,628m) and cash and cash equivalents of
DKK 1,123m (2014: DKK 963m).
Financial liabilities measured at amortised cost include bank loans and mortgage debt of DKK 4,878m (2014: DKK 5,530m) and trade payables
of DKK 2,546m (2014: DKK 2,736m).
Financial assets and liabilities measured at fair value through the Income Statement are measured at quoted prices in an active market for similar
assets or liabilities or other valuation methods, where all significant inputs are based on observable market data (level 2).
Of financial assets available for sale, DKK 91m (2014: DKK 66m) are measured at quoted prices in an active market for the same type of
instruments (level 1). The remaining financial assets available for sale are measured using valuation methods, where any significant input are not
based on observable market data (level 3).
There have been no significant transfers between level 1 and level 2 in 2015 or 2014.
The carrying amount is equal to the fair value except for the financial liabilities measured at amortised cost.
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130
At a glance
Tax, staff cost and remuneration, other disclosure requirements
and basis for preparation
Effective tax rate Taxes paid

DKKm
1,000
31.9%
800
600
400
200
up from 31.1% 0
2011 2012 2013 2014 2015
Taxes paid
Profit/(loss) Earnings per share

discontinuing business (DKKm) DKK
30
25
(178)
20
15
10
5
0
-5
-10
down from (68) -15
2011 2012 2013 2014 2015
Earnings per share (diluted)
Staff costs Deferred tax asset

Continued activities (DKKm) DKKm
1,200
1,000
5,052
800
600
400
200
up from 4,789 0
2011 2012 2013 2014 2015
Deferred tax asset
131
Tax
32. Tax for the year
Accounting policy
Tax for the year comprises current tax and changes in deferred tax and is recognised in the Income Statement with the share
attributable to the profit/(loss) of the year, and in the other comprehensive income with the share attributable to items
recognised in other comprehensive income. Exchange rate adjustments of deferred tax are included as part of the year’s
adjustments of deferred tax.
Current tax comprises tax calculated on the basis of the expected taxable income for the year, using the applicable tax rates for the financial
year, and any adjustments of taxes for previous years.
DKKm 2015 Effective 2014 Effective

tax rate tax rate
Current tax on the profit/(loss) for the year (415) (408)

Withholding tax (9) (11)
Change in deferred tax 219 24
Change in tax rate on deferred tax 3 4
Adjustments regarding previous years, deferred taxes 14 (76)
Adjustments regarding previous years, current taxes (130) 68
Other adjustments 36 1
Tax for the period, continuing activities (282) (398)
Earnings before tax on continuing activities 885 1,279

Earnings before tax on discontinued activities (268) (124)
617 1,155
Reconciliation of tax
Tax according to Danish tax rate 208 23.5% 313 24.5%
Differences in the tax rates in foreign subsidiaries relative to 23.5%
(2014: 24.5%) (3) -0.3% 47 3.7%
Non-taxable income and non-deductible costs 37 4.1% 13 1.0%
Deductible loss on shares (18) -2.1% (3) -0.3%
Differences in tax assets valued at nil (28) -3.2% 14 1.1%
Differences due to adjustment of tax rate (3) -0.3% (4) -0.3%
Adjustments regarding previous years, deferred taxes (14) -1.6% 76 5.9%
Adjustments regarding previous years, current taxes 130 14.7% (68) -5.3%
Withholding taxes 9 1.0% 11 0.9%
Other adjustments (36) -4.0% (1) -0.1%
Effective tax rate 282 31.9% 398 31.1%
Adjustments regarding previous years are impacted by recognition of deferred tax of goodwill and true ups from filing final tax returns.
Corporate income tax paid in 2015 amounts to DKK 338m (2014: DKK 411m) of which the main part is attributable to Group companies in the
following countries:
DKKm
140
120
100
80
60
40
20
0
-20
-40
-60
Denmark USA Switzerland India South Africa Chile Italy Australia Peru
2015 2014
Besides corporate income tax, the activities of the Group generate sales taxes, custom duty, personal income taxes paid by the employees, etc.
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132
32. Tax for the year (continued)
DKKm 2015 2014
Tax on other comprehensive income Deferred Current Tax income/ Deferred Current Tax income/
tax tax cost tax tax cost
Foreign exchange adjustment of loans classified as

equity in enterprises abroad 0 (48) (48) 0 (28) (28)
Value adjustments of hedging instruments 9 4 13 32 0 32
Actuarial gains/losses on defined benefit plans 3 0 3 19 0 19
12 (44) (32) 51 (28) 23
33. Deferred tax assets and liabilities
Accounting policy
Deferred tax is calculated using the balance sheet liability method on all temporary differences between the carrying amounts
for financial reporting purposes and the amounts used for taxation purposes, except differences relating to initial recognition
of goodwill. Deferred tax is calculated based on the applicable tax rates for the individual financial years. The effect of
changes in the tax rates are stated in the income statement unless they are items previously entered in the statement of other
comprehensive income.
A deferred tax liability is made to cover re-taxation of losses in foreign enterprises if shares in the enterprises concerned are likely to be sold
and to cover expected additional future tax liabilities related to financial year or previous years. No deferred tax liabilities regarding invest-
ments in subsidiaries are recognised if the shares are unlikely to be sold in the short term.
The tax value of losses that are expected with adequate certainty to be available for utilisation against future taxable income in the same
legal tax unit and jurisdiction is included in the measurement of deferred tax.
FLSmidth & Co. A/S is jointly taxed with all Danish subsidiaries, FLSmidth & Co. A/S being the administrator of the Danish joint taxation.
All the Danish subsidiaries provide for the Danish tax based on the current rules with full distribution. Recognition of deferred tax assets and
tax liabilities is made in the individual Danish enterprises based on the principles described above. The jointly taxed Danish enterprises are
included in the Danish tax payable on account scheme.
If companies in the Group have deferred tax liabilities, they are valued independently of the time when the tax, if any, becomes payable.
Deferred tax assets are recognised if it is likely that there will be taxable income in the future against which timing differences or
tax loss carry forwards may be used. For this purpose, Management estimates the coming years’ earnings based on budgets.
DKKm 2015
Balance Assets Foreign Adjust- Changed Included Included Balance

sheet held for exchange ment to tax rate in other in the sheet
1 January sale transla- previous compre- profit/ 31
tion years, hensive (loss) December
etc. income
Deferred tax consists of

Intangible assets (10) 0 (7) (66) (8) 0 (16) (107)
Tangible assets 27 0 (16) 146 (8) 15 35 199
Current assets 619 (240) 25 (157) 2 0 58 307
Liabilities (322) 265 22 76 18 (3) 126 182
Tax loss carry-forwards, etc. 199 0 (4) 26 (5) 0 (12) 204
Share of tax asset valued at nil (86) 0 (4) (11) 4 0 28 (69)
Net deferred tax
assets/(liabilities) 427 25 16 14 3 12 219 716
133
33. Deferred tax assets and liabilities (continued)
DKKm 2014
Balance Assets Foreign Adjust- Changed Included Included Balance

sheet held for exchange ment to tax rate in other in the sheet
1 January sale transla- previous compre- profit/ 31
tion years, hensive (loss) December
etc. income
Deferred tax consists of

Intangible assets (4) (26) (27) (20) (16) 0 83 (10)
Tangible assets 147 0 (6) (56) (6) (24) (28) 27
Current assets 761 (5) 21 (35) 5 0 (128) 619
Liabilities (573) (41) 27 46 14 75 130 (322)
Tax loss carry-forwards, etc. 403 (170) 4 1 0 0 (39) 199
Share of tax asset valued at nil (144) 65 0 (1) 7 0 (13) (86)
Net deferred tax
assets/(liabilities) 590 (177) 19 (65) 4 51 5 427
DKKm 2015 2014
Deferred tax assets 1,096 979

Deferred tax liabilities (380) (552)
716 427
Maturity profile of tax assets valued at nil:
Within one year 81 0
Between one and five years 129 83
After five years 80 284
290 367
Tax value 69 86
Deferred tax assets not recognised in the balance sheet consist of:
Temporary differences 0 82
Tax losses 290 285
290 367
Temporary differences regarding investments in Group enterprises are estimated as a tax liability of DKK 300-350m in 2015 (2014: DKK 300-
350m). The amount is not included because the Group is able to control whether the liability is released and it is considered likely that the
liability will not be released in the foreseeable future.
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134
Staff cost and remuneration
34. Staff costs
Accounting policy
Staff costs consist of direct wages and salaries, remuneration, pension, share-based payments, training, etc. related to the
continuing activities.
DKKm 2015 2014
Wages, salaries and other remuneration 4,201 3,964

Contribution plans and other social security costs, etc. 493 427
Defined benefit plans 17 9
Share-based payment, option plans 38 43
Other staff costs 303 346
5,052 4,789
The amounts are included in the items:
Production costs 3,139 2,892
Sales and distribution costs 977 966
Administrative costs 936 931
5,052 4,789
The average number of employees in the continuing activities was 13,070 (2014: 13,570).
Increase in staff costs related to exchange rates amounts to DKK 377m, and is mainly due to changes in USD and INR exchange rates.
For further details concerning the remuneration of the Executive Management and Board of Directors, see note 35 in the consolidated financial
statements regarding related parties.
Redundancy costs incurred in 2015 amount to DKK 41m (2014: DKK 48m).
35. Related party transactions
Related parties with significant influence consist of the Group’s Board of Directors and Executive Management as well as close relatives of these
persons. Related parties also include companies on which these persons exert considerable influence.
Transactions between the consolidated Group enterprises are eliminated in the consolidated financial statements. In 2015 and 2014 there were
no transactions between related parties that are not part of the Group apart from the below mentioned.
DKKm 2015 2014
Remuneration of Board of Directors

Board of Directors fees 5 5
Total remuneration of Board of Directors 5 5
Remuneration of the Group Executive Management

Wages and salaries 28 28
Bonus etc. 5 4
Termination benefit 0 5
Share-based payment 4 4
Total remuneration of the Group Executive Management 37 41
This includes remuneration of the Group Chief Executive Officer, Mr. Thomas Schulz 9 9
The remuneration includes eight Group Executive Management members, of which four are registered with Erhvervsstyrelsen (The Danish
Business Authority).
The members of the Group Executive Management have 18 months’ notice in the event of dismissal and shall receive up to six months’ salary on
the actual termination of their employment.
Each member of the Group Executive Management may receive a yearly bonus which may not exceed 40% of the relevant member´s Gross Salary,
including pension, for the year in question.
135
36. Board of Directors and Executive Management
The members of the FLSmidth & Co. A/S´ Board and Executive Management hold shares per 31 December in FLSmidth & Co. A/S and other
executive positions in Danish and foreign commercial enterprises as specified below:
Remuneration Nominal shareholding Executive positions in other enterprises*

Board of Directors 2015 2014 31 Dec. 31 Dec.
DKK DKK 2015 2014
(1,000) (1,000) Number Number
of shares of shares
Vagn Ove Sørensen 1,200 1,200 6,301 4,191 Chairman of the Boards of Directors TDC A/S (Denmark), TIA Technology
(Chairman) A/S (Denmark), Zebra A/S, Scandic Hotels AB (Sweden), Select Service
Partner Plc (UK), Automic Software GmbH (Austria), Bureau van Dijk BV
(Holland) and Thor Denmark Holding ApS (Denmark). Vice Chairman of
the Boards of Directors of DFDS A/S (Denmark). Member of the Boards of
Director of CP Dyvig & Co. A/S (Denmark), JP/Politikens Hus A/S (Denmark),
Lufthansa Cargo (Germany), Air Canada (Canada), Royal Caribbean Cruises
Ltd. (USA), and Braganza AS (Norway). Senior Advisor to EQT Partners and
Morgan Stanley. CEO of E-Force ApS (Denmark)
Torkil Bentzen 800 800 5,000 5,000 Chairman of the Boards of Directors of Burmeister & Wain Scandinavian
Contractor A/S (Denmark), State of Green (Denmark), Boel Bentzen A/S
(Denmark) and Chairman of TGE Marine AG (Germany). Member of the
Boards of Directors of Mesco Danmark A/S (Denmark) and Siemens A/S
Danmark (Denmark). Senior Advisor to the Board of Mitsui Engineering &
Shipbuilding Ltd. (Japan). CEO of Boel Bentzen Holding ApS (Denmark).
Mette Dobel 400 400 864 864 None

(employee-elected)
Caroline Grégoire 500 500 250 150 Member of the Boards of Directors of Groupama SA (France), Eramet
Sainte Marie (France), and Wienerberger AG (Austria) and Investor and Member of the
Board of Directors of CALYOS (Belgium)
Martin Ivert 500 500 300 300 Chairman of the Board of Directors of Åkers (Sweden). Member of the
Board of Directors of Ovako (Sweden)
Sten Jakobson 500 500 2,000 2,000 Chairman of the Boards of Directors of Power Wind Partners AB (Sweden)
and LKAB (Sweden). Vice Chairman of the Board of Directors of SAAB
(Sweden). Member of the Boards of Directors of Stena Metall (Sweden) and
Xylem Inc (USA)
Tom Knutzen 600 600 12,500 12,500 CEO of Jungbunzlauer Suisse AG (Switzerland). Member of the Board of
Directors and Chairman of the Board Audit Committee for Nordea Bank
AB (publ) (Sweden)
Søren Qvistgaard
Larsen 400 400 65 65 None
(employee-elected)
Jens Peter Koch 400 400 240 40 None

(employee-elected)
Executive Management
Thomas Schulz** 4,510 2,510 None
Lars Vestergaard** 1,341 1,030 None
Bjarne Moltke Hansen** 177 177 Member of the Board of Directors of RMIG A/S, (Denmark) and
Burmeister & Wain Scandinavian Contractor A/S (Denmark)
Brian M. Day 0 0 None
Manfred Schaffer 0 0 None
Virve Elisabeth Meesak 500 500 None
Per Mejnert Kristensen** 1,705 1,705 None
Eric Thomas Poupier 205 0 None
* Apart from 100% owned FLSmidth & Co. A/S’ subsidiaries.
** Registered with Erhvervsstyrelsen (The Danish Business Authority).
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136
Other disclosure requirements
37. Earnings per share (EPS)
Accounting policy
Earnings per share (EPS) and diluted earnings per share (EPS, diluted) are measured according to IAS 33. Non-diluted e arnings
per share are calculated as the earnings for the year after tax from continuing and discontinued activities allocated to the
shareholders of FLSmidth & Co A/S divided by the total average number of shares outstanding during the year, (shares issued
adjusted for treasury shares). Share options in-the-money are included in the calculation of the diluted earnings per share.
DKKm 2015 2014
Earnings
FLSmidth & Co. A/S´ shareholders’ share of profit/(loss) for the year 421 812
FLSmidth & Co. A/S´ profit/(loss) from discontinued activities (178) (68)
Number of shares, average

Number of shares issued 51,250,000 52,150,000
Adjustment for treasury shares (2,360,294) (2,778,225)
Potential increase of shares in circulation, share options in-the-money 106,376 70,864
Average number of shares 48,996,082 49,442,639
Earnings per share

Continuing and discontinued activities per share 8.6 16.4
Continuing and discontinued activities, diluted, per share 8.6 16.4
Continuing activities per share 12.3 17.8
Continuing activities, diluted, per share 12.3 17.8
Non-diluted earnings per share in respect of discontinued activities amount to DKK -3.6 (2014: DKK -1.4) and diluted earnings per share in
respect of discontinued activities amount to DKK 3.6 (2014: DKK -1.4).
The calculation of diluted earnings per share is inclusive of 106,376 share options in-the-money (2014: 70,864), which is the difference
between the number of shares that could have been acquired at fair value with proceeds from exercised share options, and the number of
shares which would have been issued assuming the exercises from the share options.
137
38. Acquisition of enterprises and activities
There have been no acquisitions of enterprises and activities in 2015 or in 2014.
39. Disposal of enterprises and activities
Accounting policy
On disposal of enterprises and activities the difference between the selling price and the carrying amount of the net assets at
the date of disposal including remaining goodwill less expected costs of disposals is recognised in the income statement among
special non-recurring items. If the activities prior to the sale were classified as discontinued activities, the difference is recognised
as profit/(loss) for the year, discontinued activities.
If the final consideration is dependent on future events (contingent consideration), it is stated at fair value at the time of sale, and classified
as financial assets and adjusted directly in the income statement.
Enterprises and activities sold are included in the consolidated financial statements until the date of disposal.
DKKm 2015 2014
Intangible assets 66 0
Tangible assets 640 13
Inventories 290 5
Work-in-progress for third parties 0 12
Other assets 167 28
Cash and cash equivalents 82 4
Liabilities (1,035) (34)
Carrying amount of net assets disposed 394 28
Net interest-bearing debt 455 -

Enterprise value 849 28
Selling price 1,078 20

Enterprise value (849) (28)
Transaction costs (115) -
Profit/loss on disposal of enterprises and activities 114 (8)
Cash received 999 20

Deferred payment 71 -
Total selling price 1,070 20
Transaction costs (115) -

Cash and cash equivalents disposed of, see above (82) (4)
Net cash effect 873 16
Disposal of enterprises and activities in 2015 consists of Cembrit and disposal of non-core activities in USA and Canada.
Disposal of enterprises and activities in 2014 consists of disposal of non-core activities in Germany, China and France.
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138
40. Discontinued activities
Accounting policy
Discontinued activities are presented in the Income Statement as follows: profit/(loss) for the year, discontinued activities. The item
consists of operating income after tax from activities concerning gains or losses from fair value adjustment. Disposal of the assets
related to the activities are likewise presented as discontinued activities.
In the consolidated cash flow statement, cash flow from discontinued activities is included in cash flow from operating, investing and financing
activities together with cash flow from continuing activities.
The financial highlights and key ratios of discontinued activities are as follows:
DKKm 2015 2014
Revenue 1,113 2,165

Costs (1,381) (2,289)
Earnings before tax (EBT) (268) (124)
Tax for the year 90 56
Profit/(loss) for the year, discontinued activities (178) (68)
Cash flow statement

Cash flow from operating activities (453) 120
Cash flow from investing activities (82) (162)
Cash flow from financing activities (73) (31)
Earnings per share

Discontinued activities per share -3.6 -1.4
Discontinued activities, diluted, per share -3.6 -1.4
impacted activities have been reclassified as discontinued activities.
Cembrit was sold as of 30 January 2015. Included in discontinued activities are special non-recurring items of DKK 127m (2014: DKK -17m), of
which gain on sale of Cembrit accounts for DKK 134m.
139
41. Specification of assets and liabilities classified as held for sale
Accounting policy
Non-current assets as well as assets and liabilities expected to be sold as a group (disposal group) in a single transaction
are reclassified to assets and liabilities classified as held for sale, if their carrying value is likely to be recovered by sale within
12 months in accordance with a formal plan.
Assets or disposal groups held for sale are measured at the lower of the carrying value and the fair value less costs to sell. Assets are not
depreciated from the time they are reclassified as held for sale.
DKKm 2015 2014
Intangible assets 1 56
Deferred tax assets 52 72
Inventories 11 286
Cash and cash equivalents 34 58
Other assets 131 99
Assets classified as held for sale total 640 1,396
Provisions 139 160

Trade payables 84 158
Liabilities directly associated with assets classified as held for sale total 541 483
impacted activities have been reclassified as discontinued activities. Assets and liabilities connected to the activities are reclassified as held for
sale.
Cembrit was sold as of 30 January 2015. Therefore, Cembrit´s assets and liabilities were classified as held for sale in 2014.
42. Charged assets
DKKm 2015 2014
Carrying amount of Charge Carrying amount of Charge

charged assets charged assets
Land and buildings 53 307 68 352
43. Fee to parent company auditors appointed at the Annual General Meeting
In addition to statutory audit, Deloitte, the Group auditors appointed at the Annual General Meeting, provides other assurance engagements
and other c onsultancy services to the Group.
DKKm 2015 2014
Statutory audit 19 20
Other assurance engagements 0 2
Tax and indirect taxes consultancy 4 10
Other services 6 2
29 34
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140
44. Shareholders
Two shareholders have reported a participating interest above 10%:

Lundbeck Foundation and Lundbeckfond Invest A/S
Novo A/S on behalf of Novo Nordisk Fonden
Another two shareholders have reported a participating interest above 5%:

Franklin Resources Inc.
Templeton Global Advisors Limited (part of Franklin Resources Inc.)
45. Events occurring after the balance sheet date
As announced on 21 January 2016, FLSmidth has been informed that Novo A/S on behalf of Novo Nordisk Fonden holds a total of 7,700,000
FLSmidth & Co. A/S shares, which corresponds to 15.02% of the total nominal share capital in FLSmidth & Co. A/S.
As announced on 31 January 2016, FLSmidth has signed a five year contract with Arabian Cement Company (ACC) for operation and
maintenance of the production lines at their cement plant located near the city of Suez in Egypt. FLSmidth has been operating and maintaining the
two lines since 2008 and 2010, respectively.
As announced on 2 February 2016, FLSmidth has been informed that Morgan Stanley, USA controls a total of 6.43% of the voting rights attached
to FLSmidth & Co. A/S shares.
As announced on 5 February FLSmidth has been informed that Morgan Stanley, USA controls less than 5% of the voting rights attached to
FLSmidth & Co. A/S shares.
As announce on 8 February FLSmidth has signed an EPC (Engineering, Procurement and Construction) contract with a value of more than EUR
200m with the Algerian cement producer SARL Amouda Ingineering for the supply of a greenfield cement plant in Algeria. The plant will be
located in El Beida (Laghouat), approximately 400 km from the capital Algiers.
46. Approval of the Annual Report for publication
At its meeting on 11 February 2016, the Board of Directors has approved this Annual Report for publication.
The Annual Report will be presented to the shareholders of FLSmidth & Co. A/S for approval at the Annual General Meeting on
5 April 2016.
47. List of Group companies

Company name Country Direct Group Company name Country Direct Group
holding (pct.) holding (pct.)
FLSmidth & Co. A/S Denmark 100 NL Supervision Company Tunisia Tunisia 100
DEF 1994 A/S Denmark 100 NL Supervision DRC Sarl Democratic
Republic of Congo 100
FLS Plast A/S Denmark 100
FLS Real Estate A/S Denmark 100
FLSmidth (Beijing) Ltd. China 100 FLSmidth A/S Denmark 100
FLSmidth Finans A/S Denmark 100 FLS EurAsia AG** Switzerland 33
FLSmidth Dorr-Oliver Eimco Venezuela S.R.L. Venezuela 100 FLS Maroc Morocco 100
FLSmidth S.A.C. Peru 100 FLSmidth A/S Armenia limited liability company (LLC) Armenia 100
SLF Romer XV ApS Denmark 100 FLSmidth A/S (Jordan) Ltd. Jordan 100
Cembrit GmbH Germany 100 FLSmidth AB Sweden 100
Cembrit Roof S.r.l. Italy 100 FLSmidth Argentina S.A. Argentina 100
Gemena Sp. Z.o.o. Poland 100 FLSmidth Co. Ltd. Vietnam 100
Interfer S.A.S. France 100 FLSmidth S.A. Spain 100
NASS B.V. Netherlands 100 FLSmidth SAS Colombia 100
FLSmidth (Private) Ltd. Pakistan 100
FLSmidth Operation & Maintenance A/S Denmark 100 FLSmidth Solutions ApS Danmark 100
NLS-SSBIL* UAE 50 FLSmidth Milano S.R.L. Italy 100
NLSupervision Company Angola, LDA. Angola 100 FLSmidth (UK) Limited United Kingdom 100
NL Supervision Company Nigeria LLC Nigeria 100 FLSmidth (Jersey) Limited Jersey 100
141
47. List of Group companies (continued)
Company name Country Direct Group Company name Country Direct Group
holding (pct.) holding (pct.)
FLSmidth Philippines, Inc. Philippines 100 FLSmidth ABON Pty. Ltd. Australia 100
FLSmidth Ireland Limited Ireland 100 FLSmidth Krebs Australia Pty. Ltd. Australia 100
FLSmidth Ltd. United Kingdom 100 FLSmidth M.I.E. Enterprises Pty. Ltd. Australia 100
FLSmidth Ltda. Brazil 100 Ludowici Pty. Limited Australia 100
FLSmidth MAAG Gear AG Switzerland 100 Hicom Technologies Pty. Ltd. Australia 100
FLSmidth MAAG Gear Sp. z o.o. Poland 100 Ludowici Australia Pty. Ltd. Australia 100
Reset Holding AG Switzerland 100 Ludowici China Pty Limited Australia 100
Teutrine GmbH Switzerland 100 Ludowici Beijing Ltd. China 100
FLSmidth Kenya Limited Kenya 100 Ludowici Hong Kong Limited Hong Kong 100
FLSmidth Krebs GmbH Austria 100 Yantai Ludowici Mineral Processing Equipment Limited China 100
FLSmidth Mongolia Mongolia 100 Rojan Advanced Ceramics Pty. Ltd. Australia 100
FLSmidth Qingdao Ltd. China 100 Ludowici Hong Kong Investments Ltd. Hong Kong 100
FLSmidth Rusland Holding A/S Denmark 100 Qingdao Ludowici Mining Equipment Ltd. China 100
FLSmidth Rus OOO Russia 100 J.C. Ludowici & Son Pty. Limited Australia 100
FLSmidth Bel Belarus 100 Ludowici Packaging Australia Pty. Ltd. Australia 100
FLSmidth Sales and Services Limited Nigeria 100 Ludowici Technologies Pty. Ltd. Australia 100
FLSmidth Sales and Services Limited Turkey 100 Ludowici Plastics Limited New Zealand 100
FLSmidth SAS France 100 Ludowici Packaging Limited New Zealand 100
FLSmidth Shanghai Ltd. China 100 FLSmidth S.A. Chile 100
FLSmidth Spol. s.r.o. Czech Republic 100 FLSmidth S.A. de C.V. Mexico 100
FLSmidth Ventomatic SpA Italy 100 FLSmidth Private Limited India 100
FLSmidth MAAG Gear S.p.A Italy 100 FLSmidth (Pty.) Ltd. South Africa 100
FLSmidth Zambia Ltd. Zambia 100 FLSmidth Buffalo (Pty.) Ltd. South Africa 100
LFC International Engineering JSC* Vietnam 40 FLSmidth Mozambique Limitada Mozambique 100
MAAG Gear Systems AG Switzerland 100 FLSmidth South Africa (Pty.) Ltd. South Africa 75
Phillips Kiln Services International F.Z.E. UAE 100 FLSmidth Roymec (Pty) Ltd. South Africa 74
Pfister Holding GmbH Germany 100 FLSmidth (Pty) Ltd. Botswana 74
PT FLSmidth Indonesia Indonesia 100 Euroslot KDSS (South Africa) (Pty.) Ltd.** South Africa 50
FLSmidth LLP Kazakhstan 100
P.T. FLSmidth Construction Indonesia Indonesia 67 FLS US Holdings, Inc. United States 100
The Pennies and Pounds Holding, Inc.* Philippines 33 FLSmidth USA, Inc. United States 100
FLSmidth Dorr-Oliver Eimco SLC Inc. United States 100
FLSmidth Tyskland A/S Denmark 100 FLSmidth Dorr-Oliver Inc. United States 100
FLS Germany Holding GmbH Germany 100 FLSmidth Dorr-Oliver International Inc. United States 100
FLSmidth Real Estate GmbH Germany 100 FLSmidth Krebs (Beijing) Ltd. China 100
FLSmidth Pfister GmbH Germany 100 Ludowici Mineral Processing Equipment Inc. USA 100
FLSmidth Hamburg GmbH Germany 100 Phillips Kiln Services (India) Pvt. Ltd. India 50
Möller Materials Handling GmbH Germany 100 Phillips Kiln Services Europe Ltd. United Kingdom 50
FLSmidth Wiesbaden GmbH Germany 100 SLS Corporation United States 100
FLSmidth Wadgassen GmbH Germany 100 FLSmidth Inc. United States 100
FLSmidth Wuppertal GmbH Germany 100 Fuller Company United States 100
FLSmidth Oelde GmbH Germany 100 * Associate
Fuller Offshore Finance Corp. B.V. Netherlands 100 ** Joint venture
All other enterprises are Group enterprises.
FLSmidth Kovako B.V. Netherlands 100
FLSmidth Minerals Holding ApS Denmark 100

FLSmidth Ltd. Canada 100
9189-6175 Quebec Inc. Canada 100
4437845 Canada Inc. Canada 100
FLSmidth Pty. Ltd. Australia 100
DMI Holdings Pty. Ltd. Australia 100
DMI Australia Pty. Ltd. Australia 100
ESSA Australia Limited Australia 100
ESSA International Pty. Ltd. Australia 100
Fleet Rebuild Pty. Ltd. Australia 100
Mayer Bulk Group Pty. Ltd. Australia 100
FLSmidth Mayer Pty. Ltd. Australia 100
Mayer International Machines South Africa Pty. Ltd. South Africa 100
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142
Basis for preparation
48. Significant accounting estimates and assessments by Management
The preparation of the Annual Report requires that Management makes accounting estimates, assumptions and judgments that affect the rec-
ognized assets and liabilities, including the disclosures made regarding contingent assets and liabilities, when applying the Group’s accounting
policies.
The management accounting estimates, assumptions and judgments are based on historical experience, available information and other assump-
tions considered relevant and reliable at the time, in order to fairly present the Group´s financial position and results of operations.
The estimates made and the underlying assumptions are reconsidered on an ongoing basis. These estimates and assumptions form the basis of
the recognized carrying amounts of assets and liabilities and the derived effects on the income statement and other comprehensive income.
The actual results may deviate over time.
The significant accounting estimates and assessments essential for preparing the consolidated financial statements are presented in the Annual
Report, as follows:
• Revenue: note 3
• Work-in-progress for third parties: note 13
• Inventories: note 14
• Trade receivables: note 15
• Intangible assets: note 16
• Tangible assets: note 17
• Impairment test: note 18
• Provisions: note 20
• Pension assets and liabilities: note 23
• Deferred tax assets and liabilities: note 33
Please refer to the specific notes for further information on the accounting estimates, assumptions and judgments made by Management.
49. Accounting policies
This note sets out the Group´s accounting policies that relate to the financial statements as a whole. Where an accounting policy is specific to
one financial statement item, the policy is described in the note to which it relates.
The consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) as adopted by the
EU. The Annual Report is also presented in accordance with Danish disclosure requirements for annual reports published by listed companies as
well as the IFRS executive order issued in compliance with the Danish Financial Statements Act.
The financial statements of the parent company FLSmidth & Co. A/S are presented in conformity with the provisions of the Danish Financial
Statements Act for reporting class D enterprises. The instances in which the parent company’s accounting policies deviate from those of the
Group have been separately described on page 156.
The Annual Report is presented in Danish kroner (DKK) which is the presentation currency of the activities of the Group and the functional
currency of the parent company.
The accounting policies for the consolidated financial statements and for the parent company are unchanged from 2014. However, a few
reclassifications have taken place in the comparative figures for 2014.
As a consequence of Cembrit being sold 30 January 2015, Cembrit was reported as discontinued activity in 2014. Furthermore, it has been
decided to ring-fence and sell the bulk material handling activities, why this activity will be separated from the business and transferred into a
standalone unit. As a consequence hereof, bulk material handling is reported as discontinued activity in 2015. Profit and loss comparative
figures for 2014 have been adjusted accordingly.
The assets and related liabilities of the discontinued activity, Cembrit and bulk material handling, are presented in the separate lines “Assets
classified as held for sale” and “Liabilities directly associated with assets classified as held for sale” in the balance sheet without restatement
of comparative figures.
Implementation of new and changed standards and interpretations

The Annual Report for 2015 is presented in conformity with the new and revised standards (IFRS/IAS) and new interpretations (IFRIC) approved
by the EU, which apply to financial years beginning on 1 January 2015 or later.
The implementation of new and revised standards and interpretations has not had material impact on the financial reporting for 2015.
143
49. Accounting policies (continued)
General principles for recognition and measurement

Assets are recognised in the balance sheet when it is likely that future economic benefits will flow to the Group and the value of the asset can
be measured reliably. Liabilities are recognised in the balance sheet when it is likely that future economic benefits will depart from the Group
and the value of the liability can be measured reliably. In case of initial recognition, assets and liabilities are measured at cost. Subsequent
measurements are based on value adjustments as described in the notes.

The consolidated financial statements comprise the parent company, FLSmidth & Co. A/S´ and all enterprises in which the Group holds the
majority of the voting rights or in which the Group in some other way holds control. Enterprises, in which the Group holds between 20% and
50% of the voting rights or in some other way holds significant influence, but not control, are regarded as associates. Investments in jointly
controlled entities are recognised as joint ventures by using the pro-rata method.
The consolidated financial statements are based on the financial statements of the parent company and the individual subsidiaries which are
recognised in accordance with the Group accounting policies. All items of a uniform nature are added together, while intercompany income,
costs, balances and shareholdings are eliminated. Unrealised gains and losses on transactions between consolidated enterprises are also
eliminated.
The items in the financial statements of subsidiaries are included one hundred per cent in the consolidated financial statements. The
proportionate share of the earnings attributable to the minority interests is included in the Group’s profit/loss for the year and as a separate
portion of the Group’s equity.
Translation of foreign currency

The functional currency is determined for each of the reporting enterprises. The functional currency is the currency primarily used by the
individual reporting enterprises in connection with day-to-day operations.
Transactions in another currency than the functional currency are transactions in foreign currency. Transactions in another currency than the
Group’s functional currency are translated at the exchange rate of the day of transaction. Financial assets and liabilities in foreign currency are
translated at the exchange rates prevailing at the balance sheet date. Any foreign exchange differences between the rates prevailing at the date
of the transaction and the payment date or the balance sheet date, as the case may be, are recognised in the income statement as financial
items.
Non-monetary assets and liabilities in foreign currency are recognised at the rate of exchange prevailing at the date of the transaction.
Non-monetary items that are measured at fair value (shares) are translated at the exchange rate prevailing at the date of the latest fair value
adjustment.
The income statements of foreign subsidiaries with a functional currency that differs from Danish kroner and of foreign associates and pro-rata
consolidated joint ventures are translated at average exchange rates while their balance sheet items are translated at the exchange rates quoted
at the balance sheet date. The differences deriving from the translation of the income statements of foreign business units at average exchange
rates and of their balance sheet items at the rate of exchange at the balance sheet date are adjusted in the equity.
The foreign exchange adjustment of receivables from or debt to subsidiaries, that are considered part of the parent company’s total investment
in the subsidiary concerned, is recognised in the statement of comprehensive income in the consolidated financial statements.
If the financial statements of a foreign business unit are presented in a currency in which the accumulated rate of inflation over the past three
years exceeds 100 per cent, adjustments for inflation are made. The adjusted financial statements are translated at the exchange rate quoted on
the balance sheet date.
Equity
Dividend is allocated in the financial statements at the time when it is decided at the Annual General Meeting, and the company thereby incurs
a liability. The dividend, which is proposed for distribution, is stated separately in the equity.
Dividend
Dividend is allocated in the financial statements at the time when it is decided at the Annual General Meeting, and the company thereby incurs
a liability. The dividend, which is proposed for distribution, is stated separately in the equity.
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144
49. Accounting policies (continued)

Reserve for foreign exchange adjustments comprises exchange rate differences arising during the translation of the financial statements for enti-
ties with a functional currency other than Danish kroner, foreign exchange adjustments regarding assets and liabilities which account for a por-
tion of the Group’s net investment in such entities, and foreign exchange adjustments regarding hedging transactions which hedge the Group’s
net investment in such entities. On full or partial realisation of the net investment, the foreign exchange adjustments are recognised in the
income statement in the same item as the gain/loss.
Value adjustments regarding hedging transactions

Fair value adjustments comprise changes in the fair value of hedging transactions that qualify for recognition as cash flow hedges and where the
hedged transaction has not yet been realised.
Group financial highlights

Financial highlights and key ratios are defined and calculated in accordance with the Danish Society of Financial Analysts’ “Recommendations
and Financial Ratios 2015 Nordic Edition”.
EBITDA (Earnings before special non-recurring items, depreciation, amortisation and impairment) is defined as the operating income (EBIT) with
addition of the year’s amortisation, depreciation and impairment of intangible and tangible assets and special non-recurring items.
The working capital cannot be directly derived from the published balance sheet figures. The principal items included in the calculation of
working capital are: inventories, trade receivables, other receivables (exclusive of interest-bearing items), work-in-progress for third parties
(both assets and liabilities), prepayments (both from customers and to subcontractors), trade payables, and other liabilities (exclusive of
interest-bearing items).
50. Standards and interpretations that have not yet come into force
Standards and interpretations which have been approved for use in the EU, but have not yet come into force
Below amended standards and improvements were not incorporated in the 2015 Annual Report as they
were not yet into force:
• Amendments to IAS 16 and IAS 38, clarification of Acceptable Methods of Depreciation and Amortisation
• Amendments to IFRS 11, Construction Contracts
• Annual Improvements to IFRS 2010-2012
• Annual Improvements to IFRS 2012-2014
The other new standards and amendments are not expected to have material impact on the financial reporting for the coming
financial years.
Standards and interpretations which have not been approved for use in the EU and have therefore not yet come into force
At the time of releasing this Annual Report, the following new or amended standards and interpretations were not incorporated in the
Annual Report as they were not in force and not approved for use in the EU:
• IFRS 15, Revenue from contracts with customers
• IFRS 9, Financial instruments: Classification and Measurement and Hedge Accounting
• IFRS 16, Leases
• Amendments to IAS 7, Reconciliation of liabilities from financing activities
• Amendments to IFRS 10, IFRS 12 and IAS 28, Investment Entities
• Amendments to IAS 12, Recognition for Deferred Tax Assets for Unrealised Losses
The implementation of the new IFRS 15 in year 2018 is expected to have impact on the revenue recognition and disclosures in the
Group financial reporting. IFRS 15 will not impact the business model, but may lead to changes in the pattern of the revenue and profit
recognition. Long-term contracts, will primarily be affected in terms of the recognition of the revenue and profit.
Furthermore, IFRS 15 will impact the preparation of long-term contracts, which may be split into smaller contracts due to the performance
obligations where recognition may differ with regards to product and services in the overall contract. Currently it is not possible to provide
a reasonable estimate of the effect before the detailed review and investigations are completed.
The new standards and amendments are not expected to have material impact on the financial reporting for the coming financial years.
145
51. Terminology for the Annual Report
EBITDA EBITA margin Net asset value per share

Earnings before special non-recurring EBITA as a percentage of revenue. Net asset value as a percentage of total
items, interest, tax, depreciation, number of shares outstanding.
amortisation and impairment. EBIT margin
EBIT as a percentage of revenue. Number of shares outstanding
EBITA The total number of shares, excluding the
Ordinary earnings of operations before EBT margin holding of treasury shares.
special non-recurring items, interest, tax, EBT as a percentage of revenue.
amortisation and impairment. Pay-out ratio
Cash conversion The total dividends for the year as a
EBIT Free cash flow adjusted for acquisitions percentage of profit/(loss) excluding
Earnings before interest and tax. and disposals as a percentage of EBIT. minority.
EBT Book-to-bill Market capitalisation

Earnings before tax. Order intake as a percentage of revenue. The share price multiplied the number of
shares outstanding end of period.
CFFO Order backlog / Revenue
Cash flow from operating activities. Order backlog as a percentage of revenue. Effective tax rate
Income taxes as a percentage of profit/
CFFI Return on equity (loss) before income taxes.
Cash flow from financing activities. Profit/(loss) for the period as a percentage
of equity (average). Other comprehensive income
Free cash flow All items recognised in equity other that
CFFO + CFFI. Equity ratio those related to transactions with owners
Equity as a percentage of total asset. of the company.
Free cash flow adjusted for acquisition
and disposals of enterprises ROCE (return on capital employed) Capital expenditure (CAPEX)
CFFO + CFFI ± acquisition and disposals of EBITA as a percentage of capital employed. Investment in tangible assets.
enterprises.
Net working capital ratio Operational expenditure (OPEX)
Net working capital Net working capital as a percentage of External costs, personal cost and other
Cash up directly related to the daily revenue. income and costs.
operation: Inventories + Trade receivables
+ work-in-progress for third parties, net + Financial gearing
prepayments, net + financial instruments, Net interest-bearing debt (NIBD) as a
net + other receivables – other liabilities percentage of EBITDA.
– trade payables.
Capital employed, end of period
Net interest-bearing debt Intangible assets (cost) + Tangible assets
Interest-bearing debt less interest-bearing (carrying amount) + Working capital.
assets and bank balances.
Capital employed, average
Order intake (Capital employed, end of period + capital
Orders are included as order intake when employed end of period last year)/2.
an order becomes effective, meaning
when the contract becomes binding for CFPS (cash flow per share), (diluted)
both parties dependant on the specific CFFO as a percentage of average number
conditions of the contract. of shares (diluted).
Order backlog EPS (earning per share)

The value of future contracts end of Net profit/(loss) divided by the average
period. number of shares outstanding.
Gross margin EPS (earnings per share), (diluted)

Gross profit as a percentage of revenue. Net profit/(loss) divided by the average
number of shares outstanding, including
EBITDA margin the dilutive effect of share options ”in the
EBITDA as a percentage of revenue. money”.
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146
FLSmidth & Co. A/S

financial statements
147
Parent company financial statements
Income statement
DKKm 2015 2014
Notes
1 Dividend from Group enterprises 500 200

2 Other operating income 33 19
3 Staff costs (6) (9)
Other operating costs (15) (25)
7 Depreciation, amortisation and impairment (9) (6)
EBIT 503 179
4 Financial income 2,814 1,708

5 Financial costs (2,334) (1,459)
EBT 983 428
6 Tax for the year (57) (77)

Distribution of profit for the year:

Retained earnings 926 351
926 351
Distribution of dividend:
205 461
The Board of Directors recommends that the Annual General Meeting approves a dividend of DKK 4 per share
(2014: DKK 9 per share).
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148
Balance sheet
Assets
DKKm 2015 2014
Notes
Land and buildings 57 54
Operating equipment, fixtures and fittings 0 0
7 Tangible assets 57 54
8 Investments in Group enterprises 2,658 2,996

8 Other securities and investments 22 22
9 Deferred tax assets 29 32
Financial assets 2,709 3,050
Total non-current assets 2,766 3,104
Receivables from Group enterprises 10,041 10,754

Other receivables 425 401
10 Receivables 10,466 11,155
Other securities and investments 1 1
10 Cash and cash equivalents 4 0
Total current assets 10,471 11,156
TOTAL ASSETS 13,237 14,260
Equity and liabilities
DKKm 2015 2014
Notes
Share capital 1,025 1,025
Retained earnings 1,772 1,005
Equity 3,002 2,491
11 Provisions 20 0
Provisions 20 0
12 Mortgage debt 307 307

12 Other liabilities 106 110
12 Bank loans 4,477 3,770
Long-term liabilities 4,890 4,187
12 Bank loans 37 1,373

12 Debt to Group enterprises 5,042 5,921
12+13 Other liabilities 246 288
Short-term liabilities 5,325 7,582
Liabilities 10,235 11,769
TOTAL EQUITY AND LIABILITIES 13,237 14,260
149
Parent company financial statements
Equity
DKKm Share capital Retained Proposed Total

earnings dividend
Equity at 1 January 2014 1,064 1,249 106 2,419

Profit for the year 351 351
Dividend paid 7 (106) (99)
Proposed dividend (461) 461 0
Share-based payment, share options 2 2
Transfer between categories (39) 39 0
Equity at 31 December 2014 1,025 1,005 461 2,491
Profit for the year 926 926

Dividend paid 22 (461) (439)
Proposed dividend (205) 205 0
Share-based payment, share options 1 1
Equity at 31 December 2015 1,025 1,516 461 3,002
DKKm 2015 2014 2013 2012 2011
Movements in share capital

(number of shares)
Share capital at 1 January 51,250,000 53,200,000 53,200,000 53,200,000 53,200,000
Cancellation of shares (1,950,000) 0
Share capital at 31 December 51,250,000 51,250,000 53,200,000 53,200,000 53,200,000
Each share entitles its holder to twenty votes, and there are no special rights attached to the shares.
The year’s movements in holding of treasury shares (number of shares): 2015 2014
Treasury shares at 1 January 2,412,491 3,739,783

Cancellation of shares 0 (1,950,000)
Acquisition of treasury shares, others 18,666 664,485
Share options settled (103,229) (41,777)
Treasury shares at 31 December 2,327,928 2,412,491
Representing 4.5% (2014: 4.7%) of the share capital.
The holding of treasury shares is adjusted continuously to match FLSmidth´s incentive plans. The holding of treasury shares at the
beginning of 2014 included 1,950,000 shares that were cancelled at the Annual General Meeting in 2014.
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150
Notes to the parent company financial statements
Income statement
1. Dividend from Group enterprises
DKKm 2015 2014
Dividend from Group enterprises 500 210

Dividend from Group enterprises set off against cost 0 (10)
500 200
2. Other operating income
DKKm 2015 2014

Profit from disposal of Land and Buildings 1 0
Management fee, etc. 32 19
33 19
3. Staff costs
DKKm 2015 2014
Salaries and other remuneration (5) (4)

Termination benefit 0 (3)
Share-based payment (1) (2)
(6) (9)
Average number of employees 8 7
Remuneration of the Board of Directors for 2015 amounts to DKK 5m (2014: DKK 5m), including DKK 1m (2014: DKK 1m), which
was incurred by the parent company. The total remuneration of the parent company´s Executive Management amounted to DKK 37m
(2014: 41m), of which DKK 5m (2014: 8m) was incurred by the parent company.
4. Financial income
DKKm 2015 2014
Profit from disposal of enterprises and activities 62 10

Interest receivable and other financial income from financial assets not measured at fair value 6 2
Interest received from Group enterprises 302 229
Foreign exchange gains 2,444 1,467
2,814 1,708
5. Financial costs
DKKm 2015 2014
Write-down of investments in Group enterprises (7) 0

Interest receivable and other financial costs from financial liabilities not measured at fair value (68) (109)
Interest to Group companies (17) (70)
Foreign exchange losses (2,242) (1,280)
(2,334) (1,459)
151
6. Tax for the year
DKKm 2015 2014
Tax for the year

Current tax on the profit/loss for the year (51) (41)
Withholding tax (4) 9
Adjustments of deferred tax (11) (8)
Adjustments of tax rate on deferred tax (3) 1
Adjustments regarding previous years, deferred taxes 12 (11)
Adjustments regarding previous years, current taxes 0 (27)
Tax for the year (57) (77)
Tax paid in 2015 amounts to DKK 24m (2014: DKK 52m).
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152
Balance sheet
7. Tangible assets
DKKm Operating equipment,

Land and buildings fixtures and fittings Total
Cost at 1 January 2015 250 2 252

Additions 12 0 12
Cost at 31 December 2015 262 2 264
Depreciation and impairment at 1 January 2015 (196) (2) (198)

Depreciation (9) 0 (9)
Depreciation and impairment at 31 December 2015 (205) (2) (207)
Carrying amount at 31 December 2015 57 0 57
8. Financial assets
DKKm Investments in Other securities Total

Group enterprises and investments
Cost at 1 January 2015 3,435 37 3,472

Disposals 97 0 97
Additions (728) 0 (728)
Cost at 31 December 2015 2,804 37 2,841
Impairment at 1 January 2015 (439) (15) (454)

Disposals 300 0 300
Write-downs (7) 0 (7)
Impairment at 31 December 2015 (146) (15) (161)
Carrying amount at 31 December 2015 2,658 22 2,680
The Group expects an EBITA margin of 7-9% in 2016 and in the long-term margin of 10-13%.
The discount rate has been revised for each cash-generating unit to reflect the latest market assumptions for the risk free rate based on a
10-year Danish government bond, the equity risk premium and the cost of debt.
The long-term growth rate for the terminal period is based on the expected growth in the world economy as well as input from current long
term inflation swaps. Due to the current low interest rate environment, a conservative approach regarding the long-term growth rate for the
terminal period has been applied. This methodology has been applied to ensure consistency with the level of the risk free rate applied as a basis
for the estimation of discount rate (WACC) and the long-term growth rate. Based on these factors, a long term growth rate for the terminal
period of 1.5% has been applied.
9. Deferred tax assets and liabilities
DKKm 2015 2014
Deferred tax consists of the following items:

Liabilities 3 7
Net value of deferred tax assets/(liability) 29 32
153
10. Receivables, cash and cash equivalents
Debtors falling due after more than one year DKK 4,835m (2014: DKK 1,725m). Other receivables include fair value of derivatives (positive value)
and tax on account for the Danish jointly taxed enterprises. Cash and cash equivalents consist of bank deposits.
11. Provisions
DKKm 2015 2014
Provisions at 1 January 0 127

Additions 35 0
Used during the year (15) (127)
Provisions at 31 December 20 0
The European Court of Justice ruled that the liability obligation imposed on FLS Plast A/S is upheld at EUR 14.45m. The amount was paid in Q2 2014.
12. Maturity structure of liabilities
DKKm 2015 2014
Maturity structure of liabilities:

Bank loans 37 1,373
Debt to Group enterprises 5,042 5,921
Within one year 5,325 7,582
Bank loans 2,907 1,905

Within one to five years 3,013 2,015
Bank loans 1,570 1,865

Mortgage debt 307 307
Total 10,215 11,769
13. Other liabilities
Other liabilities include provisions for insurance and fair value of financial contracts (negative value) and tax on account for Danish
enterprises participating in joint taxation.
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154
Others
14. Charges
DKKm 2015 2014

Carrying amount of Charge Carrying amount of Charge
charged assets charged assets
Land and buildings 45 307 40 307
15. Contractual liabilities and contingent liabilities
The Company has provided guarantees to financial institutions at an amount of DKK 4,792m (2014: DKK 5,585m).
In connection with disposal of enterprises, normal guarantees, etc. are issued to the acquiring enterprise. Provisions are made for estimated
losses on such items.
The Company is the administration company of the Danish joint taxation. According to the Danish corporate tax rules, as of 1 July 2012, the
Company is obliged to withhold taxes on interest, royalty and dividend for all companies subjected to the Danish joint taxation scheme.
There are no significant contingent assets or liabilities apart from the above.
See also note 22 in the consolidated financial statements.
16. Related party transactions
Related parties include the parent company’s Board of Directors and Group Executive Management and the Group companies and associates
that are part of the Group.
In 2015 and 2014, there were no transactions with related parties, apart from Group Executive Management´s remuneration stated in note 3,
which was not included in the consolidation of the Group, nor were there any transactions with associates.
Parent company sales of services consist of managerial services and insurance services. The parent company´s purchase of services mainly consists
of legal and tax assistance provided by FLSmidth A/S.
Financial income and costs are attributable to the FLSmidth & Co. A/S. Group’s in-house Treasury function, which is performed by the parent
company, FLSmidth & Co. A/S. Receivables and payables are mainly attributable to the activity.
These transactions are carried out on market terms and at market prices.
For guarantees provided by the parent company for related parties, please see note 15 in the parent company financial statements.
17. Shareholders
Two shareholders have reported a participating interest above 10%:

Lundbeck Foundation and Lundbeckfond Invest A/S
Novo A/S on behalf of Novo Nordisk Fonden
Another two shareholders have reported a participating interest above 5%:

Franklin Resources Inc.
Templeton Global Advisors Limited (part of Franklin Resources Inc.)
155
18. Accounting policies (parent company)
Accounting policy
The financial statements of the parent company (FLSmidth & Co. A/S) are presented in conformity with the provisions of
the Danish Financial Statements Act for reporting class D enterprises.
To ensure uniform presentation, the terminology used in the consolidated financial statements has as far as possible been applied in the
parent company’s financial statements. The parent company’s accounting policies on recognition and measurement are generally
consistent with those of the Group. The instances in which the parent company’s accounting policies deviate
from those of the Group have been described below.
The accounting policies for the parent company are unchanged from 2014.
The company’s main activity, dividend from Group enterprises, is presented first in the income statement.
Description of accounting policies

Translation of foreign currency
The foreign exchange adjustment of receivables from subsidiaries that are considered to be part of the parent company’s total investment in
the said subsidiary, is recognised in the parent company´s income statement.
Dividend from Group enterprises

Dividend from investments in subsidiaries is recognised as income in the parent company´s income statement in the financial year in which
the dividend is declared. This will typically be at the time of the approval in Annual General Meeting of distribution from the company
concerned. However, where the dividend distributed exceeds the accumulated earnings after the date of acquisition, the dividend is not
recognised in the income statement but is stated as impairment of the cost of the investment.
Tangible assets
Depreciation is charged on a straight line basis over the estimated useful life of the assets until they reach the estimated residual value.
Pursuant to the provisions of IFRS, the residual value is revalued annually. In the parent company’s financial statements, the residual value is
determined at the date of the entry into service and is not subsequently adjusted.
Financial assets
Investments in Group enterprises
Investments in Group enterprises are measured at cost less impairment. Where the cost exceeds the recoverable amount, an impairment loss
is recognised to this lower value.
To the extent that the distributed dividend exceeds the accumulated earnings after the date of acquisition, that dividend is recognised as
impairment of the investment’s cost.
Other securities and investments

Other securities and investments consist of shares in cement plants that are acquired in connection with the signing of contracts and are
measured at fair value. If the fair value is not immediately ascertainable, the shares are measured at a prudently assessed value. Value
adjustments are recognised in the income statement as financial items.
Cash flow statement

As the consolidated financial statements include a cash flow statement for the whole Group, no individual statement for the parent company
has been included, see the exemption provision, section 86 of the Danish Financial Statements Act.
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156
FLSmidth & Co. A/S
Vigerslev Allé 77
DK-2500 Valby
Denmark
Tel.: +45 36 18 18 00
Fax: +45 36 44 11 46
corppr@flsmidth.com
www.flsmidth.com
CVR No. 58180912

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Annual Report 2015

One Source of Productivity

ROCE EBITA margin Free cash flow Order intake

10% 8.0% DKKm 1,288 DKKm 18,490

Consolidated financial statements.................................... 79-146

FLSmidth & Co. A/S financial statements ........................147-156

Net working capital 1,174 1,553 2,027 2,276 2,583 347

Proposed dividend to shareholders 479 479 106 461 205 28

CFFO / Revenue 5.9% 7.1% -0.6% 6.3% 2.7% 2.7%

Book-to-bill 122.1% 114.1% 79.1% 84.2% 93.9% 93.9%

Return on equity 17% 14% -10% 11% 5% 5%

Free cash flow was the highest in six

Revenue (DKKm) EBITA (DKKm)

CFFO (DKKm) Order intake (DKKm)

Net interest-bearing debt (DKKm) Net working capital (DKKm)

Financial gearing (NIBD/EBITDA) EPS (Earnings per share) (DKK)

On 1st of January 2015, our new organisational structure

ROCE > 20%

• New organisational structure

Meet the chairman

Matching staff and competencies

We were very pleased to announce that Marius Jacques

scheme based on conditional shares - performance shares

Inevitably, short-term results are impacted by current market

Managing the downturn

Long-term financial targets Investing in FLSmidth

Divisional long-term financial targets

Growth EBITA% Net working capital FACTS

Share and dividend figures 2015:

Earnings per share (diluted) DKK 8.6 16.4

Financial r­ esults 2015

Customer Product Minerals Cement

Revenue DKKm Revenue DKKm Revenue DKKm Revenue DKKm

Total service business Total capital business

Customer Services Minerals

Product Companies Product Companies

55% of revenue 45% of revenue

Customer Product Minerals Cement

Vision Strategy and

Customer Product Minerals Cement

Risk management Market trends

FLSmidth’s strategy in a nutshell

Life-cycle Full service Focus on six Full

A sustainable business model

Urbanisation and industrialisation. Demand for cement

FLSmidth’s equipment and services. Demand for FLSmidth’s

FLSmidth’s life-cycle approach

FLSmidth’s equipment is Value proposition

Highest productivity per $ spent

FLSmidth’s services help:

Full-service provider Focus on six key commodities

‘Full-service provider’ exemplified by FLSmidth’s Design-Build-Operate model

Design Build Operate

Cement and Minerals CAPEX Service OPEX

COPPER GOLD COAL

1,000 6,000 150 900 4,000 60

IRON ORE FERTILISER CEMENT

2,000 160 50,000 350 4,000 80%

Financial r esults 2015

• Limestone, • Stackers/ • Raw meal • Preheaters • Cooling of • Clinker • Truck loaders

Type of business Engineered, customised Our excellence • Process expertise and

The effect is a significant CO2 reduction

FLSmidth’s AFP filter is capable of

• The ROL process is crucial for the large amount

FerroCer increases wear resistance by 400%