Slide 1: 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 o
Slide 2: FMC Corporation
FMC Revenue: $2,191.9 EBITDA: $448.3 Margin*: 20.5% Agricultural Products Revenue: $733.0 EBITDA: $179.3 Margin*: 24.5% Specialty Chemicals Revenue: $564.9 EBITDA: $142.4 Margin*: 25.2% FMC Corporation ($ millions, LTM ending March 31, 2006) Industrial Chemicals Revenue: $897.2 EBITDA: $155.8 Margin
Slide 3: Company Strengths
Company Strengths Leading market positions Global presence Diversified business mix and high-quality customer base Diversified and integrated cost structure Disciplined approach to unlocking value
Slide 4: Leading Market Positions
Leading Market Positions (1) Based on 2005 consolidated sales (2) Shared Industrial Chemicals #1 in N.A. Soda Ash #1 in N.A. Peroxygens #1 Globally Carrageenan #1 Globally Carbofuran #2 in N.A. Pyrethroids Agricultural Products #2 Globally Alginates Specialty Chemicals #1 Globally (2) #1 Globally Li
Slide 5: Global Presence
Global Presence Agricultural Products Group Industrial Chemicals Group Specialty Chemicals Group Manufacturing Facilities: Note: Based on 2005 Consolidated Sales North America 40% of Sales Latin America 18% of Sales Europe / Middle East / Africa 29% of Sales Asia / Pacific 13% of Sales
Slide 6: Diversified Customers and End Markets
Non-Cyclical 81% Cyclical 19% Diversified Customers and End Markets Greater than 80% of sales to non-GDP cyclical end markets Long-term relationships with blue chip customers No single customer represents more than 5% of sales Top 10 customers in total represent approximately 15% of sales Note: Base
Slide 7: Diversified and Integrated Cost Structure
Diversified and Integrated Cost Structure Low-cost sourcing of raw materials – Backward integration: soda ash, lithium – Global sourcing of renewable resources: wood pulp, seaweed Low reliance on purchased raw materials – Total raw materials represent approximately 25% of cost of sales – No single r
Slide 8: Disciplined Approach to Unlocking Value
Realizing the inherent operating leverage within FMC - Sustained earnings growth >10% per year (1) - Industrial Chemicals recovery in mid-cycle in 2006 - Continued growth in Specialty Chemicals and Agricultural Products Maintaining financial strength and flexibility - Investing to grow our businesse
Slide 9: Industrial Chemicals
Industrial Chemicals
Slide 10: Industrial Chemicals
Asia 7% Alkali (Soda ash) 49% Peroxygens 18% Foret 33% Latin America 9% North America 50% Europe/Middle East/Africa 34% Asia 7% Industrial Chemicals #1 North American manufacturer of soda ash and peroxygens Backward integration into natural resources Low-cost, proprietary production technology Foret
Slide 11: Industrial Chemicals Financial Performance
Industrial Chemicals Financial Performance 2006 earnings growth of 40-45% driven by higher selling prices, partially offset by higher energy costs and the loss of Astaris earnings. $156 $151 $124 $130 $133 $94 LTM 3/31/06 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% EBITDA Capital Spending EBITDA Margin (
Slide 12: Industrial Chemicals' Focus
Industrial Chemicals’ Focus Managing for cash generation Near-term sales growth – Higher soda ash selling prices – Re-commissioning the second increment of soda ash capacity at Granger to support export demand growth – Additional peroxide price increases in North America and Europe. Margin expansion
Slide 13: Specialty Chemicals
Specialty Chemicals
Slide 14: Growth Franchises in Specialty Chemicals
BioPolymer 69% Lithium 31% Latin America 6% North America 39% Europe/Middle East/Africa 37% Asia 18% • One of two global, integrated manufacturers • Focus on specialty products – pharmaceuticals and energy storage devices Lithium: • Adds structure, texture and stability to food • Acts as a binder &
Slide 15: Specialty Chemicals Financial Performance
Specialty Chemicals Financial Performance 2006 earnings growth in the mid-single digits, driven by higher sales and continued productivity improvements $122 $116 $140 $142 $129 $132 LTM 3/31/06 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% EBITDA Capital Spending EBITDA Margin (%)
Slide 16: Specialty Chemicals Focus
Specialty Chemicals Focus Growing core business market segments – Maintaining key positions with category leading customers – Shifting resources toward faster growing segments – Expanding presence in rapidly growing emerging markets Commercializing new technology platforms Managing maturing segments
Slide 17: Agricultural Products
• Agricultural Products
Slide 18: Agricultural Products
Insecticides 73% North America 28% Latin America 39% Asia 16% Europe/ Middle East/Africa 17% Herbicides 25% Fungicides 2% Agricultural Products Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides FMC differentiated by: – Focused strategy in select
Slide 19: Agricultural Products Financial Performance
Agricultural Products Financial Performance 2006 earnings growth in the mid-teens, reflecting higher sales, favorable mix and further manufacturing productivity benefits partially offset by lower bifenthrin pricing and higher raw material costs. $179 $157 $148 $99 $81 $111 LTM 3/31/06 0% 5% 10% 15%
Slide 20: Agricultural Products' Focus
Agricultural Products’ Focus Driving near-term sales growth – Label expansions and new formulations in crop and non-crop segments – In-licensed products, e.g., flonicamid, acetamiprid and cyazofimid with maturity sales of ~$50-90 million in 2008-2009. Strengthening Market Access – Distribution joint
Slide 21: Financial Overview
Financial Overview
Slide 22: Financial Objectives
Financial Objectives Maintain strong liquidity Lower after-tax financing cost on a worldwide basis Match foreign currency cash flows with like-currency debt Reduce the tax cost of any required cross-border funds movements – American Jobs Creation Act Extend and disperse the debt portfolio’s maturity
Slide 23: Consistent Debt Reduction
Consistent Debt Reduction 902.8 856.3 707.5 513.8 364.2 193.9 222.1 206.4 1,000 1,500 Net Debt Cash ($M) Net debt reduction of approximately $400 million over the past 4 years 1,267.0 1,050.2 929.6 720.2
Slide 24: 2005 Financing Steps
2005 Financing Steps (amounts in millions) Amt Date Unsecured 5-Year Credit Facility $850 10¼% Notes Redemption $355 1 st International Cash Repatriation $180 IRB Refunding $90 European Credit Facility €220 2 nd International Cash Repatriation $340 Domestic Term Loan Repayment $242 Total Cash Repatr
Slide 25: Capital Structure
Capital Structure 12/31/2004 12/31/2005 3/31/2006 ($ - millions) Debt $250 million Revolving Credit Agreement - $ - $ - $ $250 Term Loan Due 2007 - $600 million Senior Secured Credit Agreement 100.0 - - $850 million Senior Credit Agreement - - European Facility due 2010 - 260.3 264.2 10.25% Notes Du
Slide 26: Common Stock Dividend & Buybacks
Common Stock Dividend & Buybacks • We have initiated quarterly cash dividends on FMC common stock, with the first payment in April. ($ - millions) Shares O/S Rate Per Quarter 39.0 million 18¢ 7.0 21.0 • BOD authorized $150 million share repurchase program: – To be accomplished over the next two year
Slide 27: Net Interest Expense
Net Interest Expense 71.6 92.2 78.4 58.1 Note: Net interest expense excluding loss on debt extinguishment 2006 based on guidance issued 4/27/06 ($ in millions) 2006E ~35
Slide 28: Multi-Year Recovery
2,400 $2.55 $1.90 $3.20 $4.39 $3.10 $5.45E 1,600 2,000 2006E** 0.00 2.00 4.00 6.00 Multi-Year Recovery * Earnings before restructuring and other income and charges per d iluted share. ** 2006E calculated using midpoint of guidance issued by FMC on Apr il 27, 2006 On track to deliver sustained multi-
Slide 29: FMC in Summary
FMC in Summary Great businesses, each with EBITDA of at least $140 million Double-digit earnings growth - Earnings leverage in Industrial Chemicals - Continued growth in Specialty Chemicals and Ag Products Meeting or exceeding strategic objectives - Robust and growing EBITDA - Greater than 12% retur
Slide 30: Appendix
Appendix
Slide 31: Non-GAAP Financial Terms
Non-GAAP Financial Terms These slides contain certain “non-GAAP financial terms” which are defined below: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of Income (loss) from continuing operations before income taxes and Depreciation and Amortization . EBITDA Marg
Slide 32: Segment Financial Terms
Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 18 of FMC’s 2005 Form 10-K. Some of the segment financial terms are “non-GAAP financial terms” and are defined below. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amo
Slide 33: Reconciliation of LTM 3/31/2006 income to EBITDA
Reconciliation of LTM 3/31/2006 consolidated income from continuing operations before income taxes (a GAAP measure) to LTM 3/31/2006 EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 3/31/2006 Income (loss) from continuing operations before income taxes $201.8 Add: Restructuring and other c
Slide 34: Reconciliation of LTM 3/31/06 segment operating profit to EBITDA
Reconciliation of LTM 3/31/06 segment operating profit (a GAAP measure) to LTM 3/31/06 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Industrial Specialty Agricultural Segment Chemicals Chemicals Products LTM 3/31/06 segment operating profit (GAAP) $91.5 $111.2 $145.9 Add: Depreciation and amo