Fmc Corporation · NYSE:FMC
Fmc — Investor Presentation (February 2005)
24 slides from Fmc's investor presentation, Feb 2, 2005
Slide 1: FMC Corporation, Boston, February 2, 2005
Exhibit FMC Boston February W. SVPKim and Corporation Marketing 99.1 Foster Chief 2, 2005 Financial Trip Officer
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: Non-GAAP Financial Terms
Non-GAAP These presentation. EBITDA ROIC term 2 debt, slides (Return (Earnings Margin Current Financial contain on is Invested portion the Before certain Terms quotient of Capital) Interest, “non-GAAP long-term of EBITDA is Taxes, thedebt, financial sum Depreciation (defined Long-term of Earnings te
Slide 4: Segment Financial Terms
Segment These and Depreciation EBITDA 3 areslides defined Financial (Earnings Margin contain andbelow. for Amortization Terms Before references a segment In addition, Interest, for to is the segment that we Taxes, quotient have segment. Depreciation financial provided of EBITDA items reconciliations
Slide 5: FMC Corporation: Diversified Chemical Company
Diversified ($million, FMC Industrial Specialty Agricultural Revenue: * 4 EBITDA Corporation Chemicals $2,051.2 $813.7 $538.0 $703.5 Chemicals 12/31/04) margin chemical Products EBITDA: EBITDA: company $124.3 $128.5 $147.7 $369.8 withMargin*: leading Margin*: market 15.3% 23.9% 21.0% 18.0% positions
Slide 6: Our Objectives
Our Unlocking Realize Sustained Continued Create Reduce Focus Manage minimum * 5 Before Objectives the greater the net Specialty restructuring portfolio double-digit by growth value operating debt 2006 financial to and Chemicals in $600 onSpecialty creating leverage and higher growth flexibility mil
Slide 7: 2004 Results
Strong Outstanding A Healthy Improvement Generally Steady Reduction 6 10% 2004 top-line growth year-over-year pipeline higher inperformance Results net inin growth Industrial debt of North demand in-licensed of increase in American $155 in our for Chemicals Agricultural BioPolymer Specialty million
Slide 8: On Track to Exceed Our Commitments
OnBefore 2003 Earnings Net Return * 7 Track Debt Actual onrestructuring per Reduction to Invested Exceed 2004 Share* Actual Capital Our (millions) $1.90 andCommitments 2005 other 3.20 8.4%$47 Outlook 3.70 income 10.5 155 –>11 3.90 140 2006 and Minimum Double-digit 300 charges Targets (cumulative) of
Slide 9: Multi-Year Earnings Recovery
Multi-Year We 2,000 2,200 1,600 1,800 2000 1,000 4.00 5.00 6.00 2.00 * EPS Sales 8 Earnings remain $2001 1.00 millions $Sales, 3.00 - 2002 before on Recovery EPS*, 1,400 track 2003 restructuring to 1,200 2004 deliver 2005E a and sustained other income multi-year andrecovery charges per in sales dilu
Slide 10: Industrial Chemicals
Industrial $100 Millions $150 $200 1998 10% Margin 15% 20% 25% Capital EBITDA #1 9 North 5% $50 1999 Spending 0% American Margin $0 Chemicals 2000 2001 (%) manufacturer to2002 be the 2003 Primary 2004 of soda Driver $194 ash$208 and of Higher peroxygens $177 $133 Earnings $130 Backward $250 $94 $124
Slide 11: Sold-out U.S. Soda Ash
Sold-out U.S. Soda 0.8 1990 1992 1998 2001 2000 2005F 2003 85% 2005 10 0.9 Bulk 90% Ash 1991 1993 1999 2002 Contract 2004 1 U.S. 1.1 Price 95% 1994 1.2 Soda Renewals 100% Index 1995 Ash U.S. (1990 1996 Industry Price Capacity 1997 = 1.0) IndexUtilization Effective Capacity (% Effective) Util.
Slide 12: Tight Hydrogen Peroxide Market
Tight P 1 1.1 1.2 0.9 1994 0.6 1996 2002 2001 2000 1999 1998 70 2005F 2004 Price Effective 11eroxide 75 Hydrogen 1995 1997 2003 Index Domestic 80 85 (1994=1.0) Capacity 90Price 95 Hydrogen 100 Util. Index Effective 0.8 Peroxide 0.7Capacity MarketUtilization (%, North America)
Slide 13: Industrial Chemicals 2005 Outlook
Industrial Successful Higher Total Freight Balance Increased 12 price cost selling and isvolumes Chemicals increases raw price realization energy prices materials: increase and account of2005 for of $25 ongoing North $50 on caustic, Outlook million for domestic million American 2/3’s fixed sulfuric
Slide 14: Specialty Chemicals Platforms to Drive Top-line Growth
Platforms Millions $100 $120 $60 1998 15% Margin 20% 25% 30% Capital EBITDA BioPolymer: Lithium: – 13Strong Focus $40 10% 1999 Spending on $20 $80 franchises –Margin in 5% One 2000 specialty Specialty $0 –0% Market of2001 (%) two inmarkets—pharmaceuticals food 2002 Chemicals global, leader ingredien
Slide 15: Specialty Chemicals 2005 Outlook
Specialty Revenue Strong Earnings Productivity Raw 14 materials organic growth Chemicals improvements to growth in rate remain mid-single 2005 ininexcess stable BioPolymer Outlook to drive digits of versus revenue margin end-markets 2004growth expansion and improve of 3-6% thereafter per year Focus
Slide 16: Agricultural Products
Agricultural $80 Millions $100 1998 15% 20% 25% 10% Capital EBITDA Refocused Significant Improved Discovery 15 $60 Margin 5% 1999 Spending $40 0% Margin product pipeline strategy 2000 cost Products $20savings 2001 $0 (%) mix with yielding to 2002 through from potential Remain 2003 projected outsourc
Slide 17: Agricultural Products 2005 Outlook
Agricultural Growth American Similar Relatively Continued 16 earnings in insecticides new flat progress Products revenue sales products in 2005 in 2005 reducing versus and versus Outlook labels 2004 manufacturing 2004 in the Americas costsand via Europe outsourcing Brazilian Higher market energy, to
Slide 18: In Summary
In Summary Great requirements 17 businesses, Significant each generating balance sheet EBITDA deleveraging of over $100 underway million Industrial Chemicals earnings still over $50 million below peak Steady growth in the balance of the portfolio Low capital expenditure
Slide 19: FMC Corporation
FIC FMC Corporation
Slide 20: Appendix: Reconciliation of Net Income (Non-GAAP)
Appendix: RECONCILIATION (NON-GAAP) Twelve December 2004 Discontinued Restructuring Write-off Tax Diluted excluding Average after-tax *Restructuring and ended **In ***For pronouncement adjustments 19 were effect adjustments conjunction 2003 December the Months earnings after-tax number income $0.7 o
Slide 21: Appendix: Reconciliation of EBITDA
Appendix: Reconciliation (Unaudited, Income 12/31/2004 income Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 20 taxes (loss) expense, Interest (Non-GAAP) ofEBITDA in deferred and $31.1 and from millions) ofExpense net amortization full-year other continuing Reconciliation 78.4 f
Slide 22: Appendix: Reconciliation of Segment EBITDA
Appendix: Reconciliation (Unaudited, Industrial Segment Depreciation Add: FY 21 2004 EBITDA segment Chemicals Specialty Segment inand millions) of amortization full-year operating (Non-GAAP) Agricultural Chemicals EBITDA 2004 profit Reconciliation 67.0 Products segment $124.3 (GAAP) 32.4 $128.5 29.3
Slide 23: Appendix: Reconciliation of ROIC
Appendix: Reconciliation interest (Unaudited, 2003 Actual Income Interest Restructuring Write-off Tax 2-Point Short-term Current Long-term Shareholder’s $1,673.0 ROIC *Restructuring and ended **In ***For pronouncement adjustments 22 Adjustments*** were effect conjunction 2004 December numerator (den
Slide 24: FMC Corporation
FIC FMC Corporation