Slide 1: FMC Corporation Announces Agreement to Acquire Cheminova A/S
September 8, 2014 FMC Corporation Announces Agreement to Acquire Cheminova A/S
Slide 2: Safe Harbor Statement
Safe Harbor Statement • Statements in this presentation that are forward-looking statements are subject to various risks and uncertainties, including concerning specific factors described in FMC Corporation's 2013 Form 10-K and other SEC filings and risks related to the acquisition of Cheminova. Suc
Slide 3: Transaction Overview
F M C A G R I C U L T U R A L S O L U T I O N S 3 Transaction Overview Strengthens Leadership Position in Crop Protection Chemistry • FMC to acquire 100% of the outstanding shares of Cheminova A/S, a wholly-owned subsidiary of Auriga Industries A/S • Aggregate purchase price of $1.8 billion • FMC to
Slide 4: Strategic Rationale for Acquiring Cheminova
F M C A G R I C U L T U R A L S O L U T I O N S 4 Strategic Rationale for Acquiring Cheminova • Broadens market access in Europe, Latin America and select Asian countries • Enhances portfolio with complementary technology and improves formulation capabilities • Expands position in existing crop segm
Slide 5: Cheminova Overview
F M C A G R I C U L T U R A L S O L U T I O N S PRODUCT MIX3 Cheminova Overview Leading Multinational Crop Protection Company • 2013 revenues of ~$1.2 billion1 • 3-year EBIT CAGR of 44%2 • Proven formulation and research capabilities • Attractive portfolio of over 60 active ingredients • Direct repr
Slide 6: Rationale: Enhanced Market Access
F M C A G R I C U L T U R A L S O L U T I O N S FMC AGRICULTURAL SOLUTIONS1 + CHEMINOVA1,2 FMC AGRICULTURAL SOLUTIONS1 6 Latin America 55% North America 24% Asia-Pacific 15% EMEA 6% North America 19% Asia-Pacific 18% EMEA 17% Latin America 46% 1 Sales splits reflect year ended December 31, 2013. 2 C
Slide 7: Rationale: Broadens and Strengthens Portfolio
F M C A G R I C U L T U R A L S O L U T I O N S 7 Insecticides 48% Herbicides 42% Fungicides 9% Herbicides 38% Fungicides 14% Insecticides 48% 1 Sales splits reflect year ended December 31, 2013. 2 Excludes Cheminova’s other products, primarily intermediates and micronutrients. Rationale: Broadens a
Slide 8: Rationale: Technology and Research
F M C A G R I C U L T U R A L S O L U T I O N S Rationale: Technology and Research Deepens Product Development Competencies with Regulatory Efficiencies • Additional active ingredients supplement FMC’s rapid market innovation activities • Brings formulation capabilities to new product development •
Slide 9: Rationale: Expands Crop Positions
F M C A G R I C U L T U R A L S O L U T I O N S 9 Rationale: Expands Crop Positions Reinforces Existing Crop Segments, Accelerates Access to Additional Crops Program CORN SOYBEANS CEREALS OSR RICE SUGARCANE COTTON F&V POTATOES COFFEE BEETS N O R T H A M E R I C A FMC Agricultural Solutions
Slide 10: Financial Impact
F M C A G R I C U L T U R A L S O L U T I O N S Financial Impact Improves Combined Business Profitability as Synergies Are Delivered • Synergies from: – Market access benefits – Rationalization of overlapping capabilities • Additional margin enhancements from operational and supply chain efficiencie
Slide 11: Plans to Divest Alkali Chemicals and Retain Lithium
• Alkali Chemicals a high-quality business with substantial cash generation – 3 year average EBITDA of $177 million, EBITDA margin of 26% and ROCE of 24%1 – World’s largest producer of natural soda ash – Attractive industry structure and significant delivered cost advantage – Tradition of operationa
Slide 12: Proactive Portfolio Management
12 Proactive Portfolio Management • Phosphates (2010) • Sodium Percarbonates (2011) • Zeolites / Silicates (2012) • Peroxygens (2014) • Alkali Chemicals (2015E) Dispositions Non-Core Assets • Fluthiacet-methyl (2010) • Market access JV (2011) • 2 biological acquisitions (2011) • 2 fungicide acquisit
Slide 13: FMC Corporation Business Profile
13 1 Comprised of FMC Agricultural Solutions, FMC Health and Nutrition as well as Lithium and Alkali Chemicals divisions. Also included is the FMC Peroxygens segment discontinued in FY2013. 2 LTM 2014 sales as of June 30, 2014, excluding discontinued FMC Peroxygens. 3 Sum of LTM 2014 sales of FMC op
Slide 14: Summary
• $1.8 billion acquisition of Cheminova creates a leading agriculture and heath and nutrition company with a high growth potential portfolio • Acquisition strengthens leadership position in crop protection chemistry • Significant margin improvement as synergies delivered • Plans to divest Alkali Che