Fmc Corporation · NYSE:FMC
Fmc — Non-Deal Roadshow (March 2004)
23 slides from Fmc's roadshow presentation, Mar 23, 2004
Slide 1: FMC Corporation West Coast Marketing Trip
Exhibit 99.1 FMC Coast West March William Corporation 23rd G. Walter Marketing – 25th,Chairman, 2004 Trip President and CEO
Slide 2: Safe Harbor Statement Disclaimer
SafeCompany Disclaimer These Actual Additional Securities The 1 Harbor slides results Exchange information Statement and of undertakes the Act Company accompanying under concerning ofno1934, obligation the may Private asfactors presentation differ amended. toSecurities materially update that may con
Slide 3: Use of Non-GAAP Financial Terms
Use ofCurrent These addition, segment principle EBITDA ROIC debt, 2 slides (Return Non-GAAP financial in and (Earnings Margin the contain Depreciation portion on Conference is Invested items Terms the Before certain ofquotient which long-term Capital) and Interest, Calls “non-GAAP are Amortization.
Slide 4: FMC Corporation: Diversified Chemical Company
Diversified ($ FMC Industrial Chemicals Sales: EBITDA: Margin: 3 Corporation $1,921.4 $770.6 16.1% 12.2% million, Specialty $Chemicals $93.9 chemical 309.3 Sales: Margin: EBITDA: 12/31/03) Agricultural $515.8 company Products 25.6% $132.2 Sales: with Margin: EBITDA: $640.1 leading 17.4% market $111.
Slide 5: FMC Strengths
FMC Strengths Leading Global Diversified Focused Proven 4 presence management market R&Dbusiness andand integrated positions strong mix withand applications extensive costhigh-quality structure industry expertise customer experience base
Slide 6: Industrial Chemicals Overview
Industrial 2003 Alkali Peroxygens Foret North South Europe/Middle Asia Excludes #1 Backward Low-cost, 5 North 6% Consolidated 34% America (Soda American phosphorus Chemicals proprietary integration 19% ash) 51% 8% East/Africa 47% Sales: manufacturer Overview chemicals into production $770.6 natural
Slide 7: Industrial Chemicals Performance
Industrial ($ $822 $753 $771 Capital Revenue EBITDA – 6 ‘01-’02 Capacity Cost 2003 Hydrogen Lower 16.2% 17.3% 12.2% reductions effective Expenditures affiliate in Margin recession, Chemicals mothballs millions) peroxide $87 capacity $28 $39 2001 2002 2003 earnings ‘02-’03 overcapacity –price and ‘01
Slide 8: The Domestic Soda Ash Market Is Tight
The Domestic Contract Last Price Effective 7 Peak Index caps Capacity have SodaUtil. limited Ash Market 2004’s Is price Tightrelease, but are expected to have significantly less impact on 2005 price negotiations
Slide 9: Hydrogen Peroxide Prices Continue to Rise
Hydrogen Higher Last Price Effective 8 Peak Index capacity Capacity Peroxide utilization Util. Prices Continue is drivingtohigher Rise prices, even though the North America pulp industry recovery has been sluggish
Slide 10: Specialty Chemicals Overview: BioPolymer and Lithium
Specialty 2003 BioPolymer Lithium North South Europe/Middle Asia BioPolymer: Lithium: – 9 Acts Market Focus 15% Consolidated America ason 29% –aleader Chemicals One binder specialty 71% – Adds 41% 8% East/Africa of in&two every Sales: disintegrant structure, Overview products—pharmaceuticals global,
Slide 11: Specialty Chemicals Performance
Specialty ($ 25.9% 23.8% 25.6% Capital Revenue EBITDA – 10BioPolymer Decline Lithium Productivity $472 $488 $516 Expenditures in Margin Chemicals in refocused millions) $28 $24 lithium CAGR and 2001 2002 2003 improved sales in –of‘01-’03 ‘03 5%during ondriven mix specialty Performance ‘01-’02 drive
Slide 12: Agricultural Products Overview
Agricultural 2003 Insecticides Herbicides North South Europe/Middle Asia Proprietary, Key FMC – 11The Focused Strategy crops: 15% Consolidated differentiated America depthof innovation 24% cotton, branded 76% and Products outsourced 36% 32% East/Africa breadth corn, Sales: by: insecticides (R&D Over
Slide 13: Agricultural Products Performance
Agricultural ($ $653 $615 $640 Capital Revenue EBITDA – 12Declining Strong ‘01 Significant 2003 Margin 15.4% 16.1% 17.4% exit growth Expenditures underlying in Margin improvement from millions) global $22 $21 $16 Products refocusing in pre-emergent 2001 2002 2003 Brazil, chemical growth – in ‘01-’03
Slide 14: 2003 Exceeded Expectations Despite Astaris
2003exceeded Despite Astaris We 13 met Wascommenced challenges ourOn earnings our Plandebt inaexpectations Industrial significant reductionChemicals expectations restructuring
Slide 15: Strategic Objectives: Unlocking Value
Strategic Unlocking Realize Create Focus – 14Double-digit Industrial Net Regaining Manage Divest Improve debt the greater the any Objectives portfolio Specialty Industrial ROIC reduction value operating Chemicals an business financial growth investment and to on 12 Chemicals Chemicals of creating le
Slide 16: Undervalued Even with Recent Stock Recovery
Undervalued Even Enterprise (as ——S&P 15 of with March400 the Value 19, Compared recent, Chemicals—— 2004) to Trailing significant to Peers EBITDA recovery in our stock, we are valued at the lower end of our peer group
Slide 17: FMC Sum-of-the-Parts Valuation
FMC A 2003 $ Industrial Agricultural Specialty SUBTOTAL Corporate NET March *Valuation 16large 309 EBITDA Business 19, amount M9.3 Chemicals Chemicals (net 2003 at Multiple Products 337 X the of Valuation Mix of 2,880 —multiple 2,908 D&A 2003 Enterprise Warrants $132 94 111 and EBITDA 5-7 Valuation*
Slide 18: Why Is FMC Undervalued?
Why isare There Successful Chinese Timing Sustainability Legacy 17 FMC of drains impact still price completion Undervalued? of some onon recovery Agricultural free soda perceived cash ofash in Astaris flow North export Products risks generation restructuring American prices earnings soda ash and hyd
Slide 19: Astaris Restructuring and De-leveraging
Astaris Significant North De-leveraging – 18Annualized Astaris PlantAmerican Substantial Strong Chinese Broad-based Expectation Possible closures Restructuring euro capacity P4 refinancing restructuring improvement supply savings has of and price and market $40 reduced reductions refinancing product
Slide 20: Chinese Soda Ash Export Growth
Chinese We Growth Domestic Cost – 19There With VAT Demand Excess Salt, Energy Ocean expect escalation drawback acurrent of are Impact key freight supply costs, Chinese of the 47ingredient 11 Chinese impact market soda is particularly for On million of for exacerbating pricing 2soda Soda ash exported
Slide 21: Agricultural Products Sustainability and Improving Earnings
Sustainability Improving Significant Focused, – 20Risingexpansions Improving Increasing Manufacturing Global Network Label Novel Discovery ISK global supply successful global of cost efforts global U.S. chemistry global ofcrop savings chain Agricultural outsourcing farm competitiveness have in innov
Slide 22: Our Cash Flow Highlights
Our EBITDA* Pre-Tax Capital Cash Legacy Restructuring Astaris Total * ** 21Calculated Includes legacy Taxes Flow Legacy Keepwells Expenditures Cash Environmental Interest** $Highlights cash 15 $82 326 using Outflows (Pocatello) ------Relatively million outflows --------Increasing----------Æ 40 84 mi
Slide 23: FMC Corporation
+Fivic FMC Corporation