Fmc Corporation · NYSE:FMC
Fmc — First Annual Chemical Industry Conference 2004
24 slides from Fmc's conference presentation, Jun 23, 2004
Slide 1: FMC Corporation at First Annual Chemical Industry Conference
Exhibit 99.1 Exhibit FMC First The June W. Senior Kim Chemical Annual 22, Corporation Vice 99.1 Foster 2004 President Chemical Heritageand Industry Foundation CFO Conference
Slide 2: Safe Harbor Statement and Company 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: Diversified Chemical Company
Diversified ($ FMC Industrial Specialty Agricultural Sales: EBITDA: Margin: 3 million, Corporation $1,921.4 $770.6 $515.8 $640.1 16.1% 12.2% 25.6% 17.4% Chemicals Chemicals $309.3 $93.9 $132.2 $111.3 12/31/03) chemical Productscompany with leading market positions in industrial, consumer and agricul
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 Foret Peroxygens Alkali Asia Europe/Middle South North 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 Financial Performance
Industrial $’s, 250 Margin, 25% 1998 Capital EBITDA $194 Industry Declining 2003 6 millions 200 20% 1999 $208 price Spending % 150 over-expansion Margin Chemicals 15% demand, improvement 2000 $177 100 10% 2001 $133 50 (%) price 05% Financial 2002 $130 0% during in erosion peroxygens 2003 $94Performa
Slide 8: Tight Soda Ash Market
Tight Contract Soda 1.2 Last U.S. 100% 1990 Price 7 1.1 Peak Bulk Capacity Ash 1991 Index Domestic 95% 1 caps 0.9 Price 1992 90% Effective 0.8 have Utilization Index Soda 85% 1993 limited Ash Capacity (1990 1994 (% Market 2004’s 1995 =Effective) 1.0) Util. 1996 price1997 increase, 1998but 1999 are20
Slide 9: Stabilizing Chinese Soda Ash Market
Stabilizing We Growth Demand Excess Domestic There With Higher Salt, Energy VAT Ocean 8 expect drawback amarket are key freight costs supply costs, of of47 Chinese the ingredient Export 11pricing are soda particularly for Chinese impact million of for limiting 2soda ash pricing Soda exported million
Slide 10: Rising Hydrogen Peroxide Prices
Rising Higher Hydrogen 1.2 Last 100 Effective (%, 1994 Price 9 1.1 North 95 Peak 1995 Index Domestic 1capacity 90 0.9 Capacity America) Peroxide 85 1996 (1994=1.0) Effective 0.8 80 utilization 0.7 75 1997 Hydrogen Utilization 70 0.6 Capacity 1998isPeroxide 1999 driving Util. 2000higher Prices 2001pr
Slide 11: Steady Recovery in Peroxygens and Phosphorus Chemicals
Industrial Steady After Hydrogen Peroxide Phosphorus Rhodia’s Foret Price 10 recovery ahas recovery strong price shutdown recovered Chemicals peroxide chemicals 2003, is increase across beginning of demand STPP peroxygens Improvement Rouen innearly ofavolume 8% slow growth STPP all inrecovery expect
Slide 12: Astaris Turnaround
Turnaround Significant Plant Annualized North Astaris Strong Chinese Broad-based De-leveraging Expectation Possible 11 closures American euro capacity P4 refinancing restructuring supply savings In has of price and and Domestic $40 reduced reductions market product increases refinancing has million
Slide 13: Specialty Chemicals Overview
Specialty 2003 Lithium BioPolymer Asia Europe/Middle South North Adds BioPolymer: Acts Market One Lithium: Focus 12 of 15% as Consolidated structure, America on two leader a29% binder specialty Chemicals global, 71% in41% 8% East/Africa texture & every disintegrant products—pharmaceuticals integrate
Slide 14: Specialty Chemicals Financial Performance
Specialty $’s, 140 30% Margin, 1998 Capital EBITDA $115 BioPolymer Exit Steady 13 millions 120 of 25% $110 1999 4-6% lower commodity Spending % 100 Margin Chemicals 20% $127 2000 acquisition 80 growth margin 15% 60 $122 2001 (%) 40 grade 10% Financial in process $116 20 2002 BioPolymer of0lithium 5%
Slide 15: BioPolymer: MCC Market Share and Growth
BioPolymer: MCC Share Market Pharmaceutical Food FMC 14 demand Market FMC has Carrageenan Position: Size Growth: disproportionate FMC (M): the Share: driven #demand 4-6% Core 1$Alginates #235 by 1of 3-5% #$dynamic driven 2Specialty’s 335 share 3-5% $by185 with health strong Growth industry and growt
Slide 16: Lithium: Solid Growth
Lithium: Solid 28% Strong 26% Significant Key Uses: 17% 15 products: of growth polymer synthesis primary growth FMC Repositioned growth in Lithium lithium and in synthesis of polymer pharmaceutical pharmaceutical secondary in energy sales metals, inorganics, forand markets Growth initiation storage
Slide 17: Agricultural Products Overview
Agricultural 2003 Herbicides Insecticides Asia Europe/Middle South North Proprietary, Key FMC Focused Cost The 16 depth crops: 15% reduction Consolidated differentiated America innovation and 24% cotton, branded 76% Products breadth strategies 36% 32% East/Africa corn, Sales: by: (R&D insecticides O
Slide 18: Agricultural Products Financial Performance
Agricultural $’s, $120 20% Margin, 1998 EBITDA $106 Depressed Peak Refocusing Growth 17 millions 18% in $100 1999 $87FMC’s in %Capital $114 16% 2003 crop $80 2000 inProducts key $101 14% $60 row market driven 20012002 Spending crops, $40 crop 12% $99 Financial by 1998-2003 $20 herbicide regions $111
Slide 19: Positive Agricultural Outlook
Positive Driven Improving Rising Significant Manufacturing Global Success Focused Label Novel Access 18 expansions ISK global supply by toof Outlook product two robust global market chemistry cost crop new chain initiatives savings development for crop in farm access prices and both redesign Agtarge
Slide 20: Longer-term Growth: R&D Evolution
Longer-term A FMC 1990 Discovery Plant Fungicides PPO Use Insecticides 2000 Field-Level 10 19robust ofPlatform 1995 2001 Growth R&D advanced pipeline Focus 2000 2002 Evolution Insecticide Herbicides Growth Regulators (Herbicides) 2005 2003 technologies of >20 in2004 Chemistries Nematicides Insectici
Slide 21: Summary: Great Businesses
Summary: Great Industrial Steady Low However, 20 capital businesses, growth Chemicals legacy Great expenditure in Businesses items Specialty eachearnings generating and requirements Chemicals restructuring that EBITDA are $50 and have million Ag of impaired Products nearbelow $100free million normal
Slide 22: Improving Financial Highlights
Improving EBITDA Pre-Tax Capital Cash Legacy Phosphorus * ** 21Calculated Includes Taxes Flow Expenditures Environmental Interest * Cash Highlights $345 15 $82 Restructuring using ———Relatively million ** Flow ————Increasing————— mid-point 8490 2004 ————Decreasing———— 25 of ———Relatively 75 ———Relat
Slide 23: Strategic Objectives
Strategic Unlocking Realize Double-digit Industrial Create Reduce Regain Focus Manage Divest Improve 22 the greater any an the net Specialty Industrial ROIC Objectives Chemicals portfolio investment value business operating debt growth financial toto and 12 Chemicals Chemicals $600 on that in recove
Slide 24: FMC Corporation
Fic FMC Corporation