Fmc Corporation · NYSE:FMC
Fmc — Credit Suisse First Boston 17th Annual Chemical Conference (September 2004)
19 slides from Fmc's conference presentation, Sep 28, 2004
Slide 1: FMC Corporation
FMC Corporation Credit Suisse First Boston 17th Annual Chemical Conference September 28, 2004 W. Kim Foster SVP and Chief Financial Officer
Slide 2: Disclaimer
Disclaimer Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 These slides and the accompanying presentation contain “forward-looking statements” that represent management’s best judgment as of the date hereof based on information currently available. Actual results of
Slide 3: Use of Non-GAAP Terms
Use of Non-GAAP Terms These slides contain certain “non-GAAP financial terms” which are defined below and on FMC’s Investor Relations web site (http://ir.fmc.com) in the Glossary of Financial Terms section. In addition, in the Conference Calls and Presentations section of the web site, we have provi
Slide 4: FMC Corporation
FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ million, LTM 6/30/04) FMC Sales: $2,017.4 EBITDA: $343.5 Margin: 17.0% Industrial Chemicals Sales: $793.1 EBITDA: $96.6 Margin: 12.2% Specialty Chemicals Sales: $52
Slide 5: Our Commitments
Our Commitments Unlocking value and creating a faster growing FMC Realize the operating leverage inherent within FMC Double-digit growth in earnings* Industrial Chemicals recovery Continued growth in Specialty Chemicals and Agricultural Products Create greater financial flexibility Reduce net debt t
Slide 6: Strong First Half 2004 Performance
Strong First Half 2004 Performance Outstanding performance in Agricultural Products A 21% year-over-year increase in sales Even stronger earnings growth of over 100% Improvement in Industrial Chemicals $20 million in annual restructuring savings at Astaris Higher selling prices in hydrogen peroxide,
Slide 7: On Track to Exceed Our Commitments
On Track to Exceed Our Commitments 2003 Actual Jan. 2004 Outlook July 2004 Outlook Earnings per Share ($)* 1.90 2.30—2.50 3.10—3.25 Annual Reduction in Net Debt ($ millions) 47 20—40 40—60 Return on Invested Capital (%) 8.4 8.9 10.5 * Before restructuring and other charges
Slide 8: Turn in Financial Performance
Turn in Financial Performance We remain on track to deliver a sustained multi-year recovery in sales and earnings 2,200 2,000 1,800 1,600 1,400 1,200 1,000 Sales*, $ millions 2000 2001 2002 2003 2004E 6.00 5.00 4.00 3.00 2.00 1.00 EPS**, $ Sales EPS * 2004E sales are calculated using last twelve mon
Slide 9: Industrial Chemicals to be the Primary Driver of Higher Earnings
Industrial Chemicals to be the Primary Driver of Higher Earnings Millions $250 $200 $150 $100 $50 $0 1998 1999 2000 2001 2002 2003 2004 (LTM) 25% 20% 15% 10% 5% 0% Margin $194 $208 $177 $133 $130 $94 $97 EBITDA Capital Spending EBITDA Margin (%)
Slide 10: Sold-out U.S. Soda Ash Industry
Sold-out U.S. Soda Ash Industry U.S. Bulk Soda Ash Price Index (1990 = 1.0) 1.2 1.1 1 0.9 0.8 Last Peak 100 95 90 85 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004F Effective Capacity Utilization (%, U.S.) Price Index Effective Capacity Util.
Slide 11: Rising Domestic Hydrogen Peroxide Prices
Rising Domestic Hydrogen Peroxide Prices Hydrogen Peroxide Price Index (1994=1.0) 1.2 1.1 1 0.9 0.8 0.7 0.6 Last Peak 100 95 90 85 80 75 70 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004F Effective Capacity Utilization (%, North America) Price Index Effective Capacity Util.
Slide 12: Turnaround in Domestic Phosphorus
Turnaround In Domestic Phosphorus Significant restructuring at Astaris Plant closures and product line transitions are completed Annualized savings of $40 million are in place (a $20 million benefit to FMC’s operating profit) North American market dynamics are improving Astaris capacity reductions h
Slide 13: Platforms in Specialty Chemicals To Drive Top-line Growth
Platforms in Specialty Chemicals To Drive Top-line Growth Millions $140 $120 $100 $80 $60 $40 $20 $0 $115 $110 $127 $122 $116 $132 $132 30% 25% 20% 15% 10% 5% 0% Margin 1998 1999 2000 2001 2002 2003 2004 (LTM) EBITDA Capital Spending EBITDA Margin (%) BioPolymer: Attractive end-use markets growing a
Slide 14: Agricultural Products to Remain Strong
Agricultural Products to Remain Strong Millions $160 $140 $120 $100 $80 $60 $40 $20 $0 $106 $87 $114 $101 $99 $111 $145 25% 20% 15% 10% 5% 0% Margin 1998 1999 2000 2001 2002 2003 2004 (LTM) EBITDA Capital Spending EBITDA Margin (%) Global farm economy expected to remain strong through 2005 Refocused
Slide 15: Significant Improvement to Cash Flow
Significant Improvement to Cash Flow $ millions Cash Flow Components 2004 2005 2006 2007 EBITDA* $ 368 ————Increasing————— Pre-Tax Interest** 84 ————Decreasing———— Capital Expenditures 90 ———Relatively Flat——— Cash Taxes 15 ———Relatively Flat——— Environmental 25 ———Relatively Flat——— Phosphorus-Rela
Slide 16: In Summary
In Summary Great businesses, each generating EBITDA of over $100 million Industrial Chemicals earnings are currently $50 million below mid-cycle and $100 million below peak Steady growth in the balance of the portfolio Low capital expenditure requirements Significantly improving free cash flow
Slide 17: Terrific Stock Performance
Terrific Stock Performance The Street has recognized the deep value opportunity and has driven strong stock performance Price, $/share 50 40 30 20 10 0 3/3/2003 5/3/2003 7/3/2003 9/3/2003 11/3/2003 1/3/2004 3/3/2004 5/3/2004 7/3/2004 9/3/2004 FMC stock performance from March 3, 2003 through Septembe
Slide 18: Yet Still, FMC Remains Grossly Undervalued
Yet Still, FMC Remains Grossly Undervalued Enterprise Value/EBITDA (LTM) 30 25 20 15 10 5 0 Lyondell Olin Lubrizol Valspar IMC Scotts Crompton Airgas Ferro Sensient Cytec Albemarle RPM Min. Tech Cabot FMC S&P 400 Midcap Chemicals Enterprise value as of the close on September 24, 2004
Slide 19: FMC
FMC FMC Corporation
FMC — Credit Suisse First Boston 17th Annual Chemical Conference (September 2004) on 6ix