Fmc Corporation · NYSE:FMC
Fmc — Banc of America Securities 2005 Basic Industries CEO Conference
27 slides from Fmc's conference presentation, May 4, 2005
Slide 1: FMC Corporation - Banc of America Securities 2005 Basic Industries CEO Conference
Exhibit 99.1 FMC4, Banc May William of Corporation 2005 America G. WalterSecurities Chairman, 2005 President, Basic Industries CEO Conference
Slide 2: Safe Harbor Statement and Company Disclaimer
SafeCompany Disclaimer Actual Additional Securities The Non-GAAP These 1 appendix. Harbor slides results Exchange information Financial Statement and contain of undertakes the Act Company accompanying certain Terms under concerning ofno1934, “non-GAAP obligation the may Private asfactors presentatio
Slide 3: FMC Corporation: diversified chemical company
Diversified ($ FMC Industrial Chemicals Specialty Revenue: Products Agricultural EBITDA: Margin*: * 2 EBITDA million, Corporation 19.3% 16.8% 24.6% 22.2% $2,097.9 $833.8 $540.1 $728.2 $406.6 $140.4 $132.7 $161.6 LTM margin chemical as ofcompany 3/31/05) with leading market positions in industrial, c
Slide 4: Near-term Objectives: Unlocking Value
Near-term Unlocking Realize Sustained Industrial Continued Create Reduce Regain Focus Manage Divest Improve * 3 Before the greater any an the net Specialty Industrial ROIC restructuring Chemicals portfolio double-digit investment Objectives growth value business operating debt financial toto and 12
Slide 5: Track to Exceed Objectives: Earnings per Share, Debt, ROIC
OnBefore 2003 Earnings Share* Net Reduction Return Invested * ** *** 4 This Track Debt From Actual on annual outlook Capital restructuring per $47m to the 8.4% (cumulative) Exceed 2004 $1.90 12-month growth*** $155m 10.5% is Actual as$Our of 3.20 and >11% $220m May period Objectives 2005 $4.15 other
Slide 6: Strong Start to 2005
Off $’s Revenue Operating Industrial Ag Specialty Corporate/Other $74.3 Interest Profit Earnings * 5 Income millions Products to $38.9 before a expense Strong $552.4 per Chem from Chem profit: Q1 $35.4 33.6 tax* share** continuing Start 2005 28.4 (17.2) 21.6 $(9.6) 19.7 $57.1 505.7 in 24.6 Q1 $1.11
Slide 7: Multi-Year Recovery in Sales and Earnings
Multi-Year We Sales, 1,600 1,800 2,000 2,200 2000 1,000 4.00 5.00 6.00 2.00 EPS*, * 6 Earnings remain 3.00 1.00 2001 1,400 $$ millions 2002 before on Recovery 1,200 track 2003 restructuring to 2004 deliver 2005E a and sustained other income multi-year andrecovery charges per in sales diluted andshar
Slide 8: Industrial Chemicals: Operating Profile
Operating 2004 Foret Peroxygens Alkali Asia Europe/Middle North Latin Excludes #1 Backward Low-cost, 7 North 7% Consolidated America 35% America (Soda American phosphorus Leverage process integration 19% ash) 8% 50% East/Africa 46% production Sales: manufacturer inchemicals into Industrial $813.7 na
Slide 9: Industrial Chemicals: Financial Performance
Industrial Earnings $’s 1 0 50 100 150 200 250 Capital 03/31/05 EBITDA Margin, 25 8 998 20 Millions 1999 15Spending % 10 growth Margin Chemicals 2000 5 0 $194 2001 in 2005 Financial $208 2002 of$177 close 2003 Performance $133 2004 to 60$130 LTM percent $94expected $124 $140 driven by higher selling
Slide 10: Specialty Chemicals: Growth Franchises Lithium and BioPolymer
Growth 2004 Lithium BioPolymer Asia Europe/Middle North Latin BioPolymer: Acts Market Lithium: Focus 9 15% as Consolidated America America on leader aFranchises 28% One binder specialty 72% Adds of in 8% 41% East/Africa & two every structure, disintegrant products—pharmaceuticals Sales: inglobal, Sp
Slide 11: Specialty Chemicals: Financial Performance
Specialty Increased $’s 50 75 100 125 150 2000 20 25 30 03/31/05 E 0 5 15 Capital EBITDA 10BITDA $132 % Millions 2001 Margin, $129 Spending Margin Chemicals selling 2002 $133 2003 prices $127 Financial 2004 and $122LTM improved $116 Performance productivity to offset higher raw material costs in 200
Slide 12: Agricultural Products: Operating Profile
2004depth Fungicides Herbicides Insecticides Asia Europe North Latin Proprietary, Key Focused Cost The 11 crops: 13% reduction Consolidated America America Middle Agricultural innovation and 25% cotton, 2% branded 73% breadth 36% strategies 35% Eastcorn, Sales: (R&D Africa insecticides Products ofri
Slide 13: Agricultural Products: Financial Performance
Agricultural Continued $’s 50 75 100 125 150 175 2000 Margin, 15 20 25 03/31/05 5 10 Capital EBITDA 12025 Millions 2001 0 Spending $114 %Margin strength 2002 Products $111 2003 $101 in Financial Brazil 2004 $99LTM and $162 Performance a $148 strong farm economy, coupled with benefits of a focused st
Slide 14: Significant Net Cash Flow in 2005
Significant Net $’s 0 100 200 300 400 500 2005 Pre-tax EBITDA* Capex Other * ** *** 13Assumes -100 Includes Millions debt Includes Cash Uses** Sources*** -200 Interest to Flow mid-point Free be legacy gain near Cash Drivers on Free environmental $500 sale guidance Flow Cash million of San Flow provi
Slide 15: In Summary
In Summary Great requirements 14 businesses, Substantial each with decline EBITDA in unusual of at least demands $130 on million cash Industrial flow Significant Chemicals balance earnings sheetonly deleveraging at mid-cycle in 2005 Steady growth in Specialty Chemicals and Ag Products Low capital ex
Slide 16: Despite Strong Financial Performance, FMC Remains Undervalued
Despite 14 E 0 2 4 6 8 10 Min. Lubrizol Sensient Valspar Albemarle Crompton Scotts Lyondell Ferro Airgas S&P Cabot FMC Olin Cytec Enterprise 15V/LTM 12400 Tech. Remains RPM our Midcap EBITDA value strong Grossly asChemicals financial of the Undervalued close performance on April 29, 2005
Slide 17: Our Disciplined Approach to Unlocking Value
Disciplined Our Maintain 16 long term strategic Approach objectives and to financial Unlocking are focused flexibility Value on proactively to invest in unlocking growth Actively value once manage financial the business flexibility portfolio is achieved to create value Return capital to shareholders
Slide 18: FMC Corporation
Fic FMC Corporation
Slide 19: Non-GAAP Financial Terms
Non-GAAP These presentation. EBITDA ROIC term 18 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 t
Slide 20: Segment Financial Terms
Segment These and Depreciation EBITDA 19 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 reconciliation
Slide 21: Appendix: Reconciliation of Net Income (Non-GAAP)
2003were Appendix: RECONCILIATION (NON-GAAP) Twelve 2004 Discontinued Restructuring Write-off Tax Diluted excluding Average after-tax *Restructuring and ended **In ***For pronouncement adjustments 20 effect adjustments conjunction and 2003 December the Months earnings after-tax number income $0.7 20
Slide 22: Q1 2005 Appendix: Reconciliation
Q1 2005 Appendix: RECONCILIATION RESTRUCTURING EXCLUDING (Unaudited, Three March ADD: Income excluding *Restructuring income, 2005 21 2004 represents Months Restructuring 31, from form before Operating restructuring incontinuing Ended millions, and tax, adjustments other for Profit and AND OFthe and
Slide 23: Q1 2005 Appendix: Reconciliation of Net Income
Q1 2005 Appendix: RECONCILIATION (NON-GAAP) Three March Net After-tax Discontinued Restructuring Tax Diluted excluding Average after-tax *Restructuring income, 2005 **Tax 22 income adjustments** effect adjustments 2004 represents Months adjustments 31, earnings after-tax before number income and inc
Slide 24: Appendix: LTM EBITDA Reconciliation
Appendix: Reconciliation (Unaudited, LTM Income income Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 23 March 3/31/2005 taxes (loss) expense, Interest (Non-GAAP) of in deferred 31, and $and from millions) of 178.7 2005 Expense net amortization LTM other continuing 75.0 financin
Slide 25: Appendix: Segment EBITDA Reconciliation
Appendix: FY Reconciliation (Unaudited, Industrial Segment Depreciation Add: LTM 24 2004 03/31/2005 segment EBITDA Chemicals Specialty inand millions) of EBITDA segment amortization full-year LTM operating (Non-GAAP) Reconciliation Agricultural Chemicals 03/31/2005 operating 2004 (Non-GAAP) profit 6
Slide 26: Appendix: ROIC Reconciliation
Appendix: Reconciliation interest (Unaudited, 2003 Actual Income Interest Restructuring Write-off Tax 2-Point Short-term Current Long-term Shareholder’s $ ROIC *Restructuring and ended **In ***For pronouncement adjustments 251,673.0 Adjustments*** were effect conjunction 2004 December Reconciliation
Slide 27: FMC Corporation
Fic FMC Corporation
FMC — Banc of America Securities 2005 Basic Industries CEO Conference on 6ix