Fmc Corporation · NYSE:FMC
Fmc — Investor Presentation (February 2005)
27 slides from Fmc's investor presentation, Feb 10, 2005
Slide 1: FMC Corporation, February 10-11, 2005
Exhibit FMC February W. SVPKim and Corporation 99.1 Foster Chief 10-11,Financial 2005 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 ($ FMC Industrial Specialty Agricultural Revenue: EBITDA: Margin*: * 4 EBITDA million, Corporation 18.0% 15.3% Chemicals $Chemicals $813.7 $12/31/04) $124.3 margin chemical 2,051.2 369.8 Products Margin*: Revenue: EBITDA: company 23.9% $$538.0 128.5 with Margin*: Revenue: leading EBITDA:
Slide 6: Our Objectives
Our Unlocking Realize Create Focus – * 5 Sustained Industrial Continued Reduce Regain Manage Divest Improve Before Objectives the greater the any restructuring an net portfolio Specialty Industrial ROIC value operating Chemicals double-digit investment growth business debt financial and totoon 12 Ch
Slide 7: Outstanding 2004 Results
Strong Outstanding Improvement –$ Steady – Reduction 6 A Even Healthy Generally Significant Sold-out Steady Several Unfavorable 20 10% million 2004 top-line stronger year-over-year growth unfavorable pipeline in market higher performance Results growth net inraw growth earnings Industrial annual in
Slide 8: On Track to Exceed Our Commitments
OnBefore 2003 Earnings Net Return * ** 7 From Track Debt Actual onthe restructuring per Reduction to Invested Exceed 2004 12-month Share* Actual Capital Our (millions) $ and 1.90 period Commitments 2005 other 8.4% 3.20 ended $Outlook income 3.70 47 10.5 155 12/31/03 –>11 3.90 2006 140 and Minimum Do
Slide 9: Multi-Year Recovery in Sales and Earnings
Multi-Year We Sales, EPS*, 2,200 1,600 2000 1,000 1,200 6.00 3.00 Sales 1.00 * Earnings remain 5.00 2.00 2001 EPS 2,000 1,400 $$ millions 4.00 2002 before on Recovery 1,800 track 2003 restructuring to 2004 deliver 2005E a and sustained other income multi-year andrecovery charges per in sales diluted
Slide 10: Industrial Chemicals Overview
Industrial 2004 Foret Alkali Peroxygens Asia Europe/Middle North Latin Excludes #1 9 North 7% Consolidated America 35% America (Soda American phosphorus Chemicals 19% ash) 8% 50% East/Africa 46% Sales: manufacturer Overview chemicals $813.7 36% sales million of soda at Astaris ash andJV,peroxygens l
Slide 11: Industrial Chemicals Performance
Industrial Now Millions 1998 25% Margin EBITDA 10 20% emerging 1999 $194 $250 Capital Chemicals 15% 2000 $208 $200 from 10% 2001 Spending $177 $150 5% 2003 Performance 2002 0% $133 $100 trough EBITDA 2003 $130 $50 2004 profits $0 $94 Margin $124 that (%) were more than $100 million below the late 19
Slide 12: Sold-out Soda Ash Market
Sold-out Soda 1.2 100% U.S. 1990 2005 11 1.1 Bulk Capacity Ash domestic 1991 Contract 95% 1 U.S. 0.9 Price 1992 90% 0.8 Soda Utilization Renewals price Index 85% 1993 Ash increase (1990 1994 Industry Price (%1995 =Effective) is1.0) Index the 1996 most Effective 1997 significant 1998 Capacity 1999 si
Slide 13: Tight Hydrogen Peroxide Market
Tight 2005 Hydrogen 1.2 100 Effective 1994 Price 12 1.1 951995 to Index Domestic 1represent 900.9 Capacity Peroxide 85 1996 Effective 0.8 80Hydrogen 0.7 75 1997 the Utilization 70 Price 0.6 third Capacity 1998Index Peroxide consecutive 1999 (%, Util. (1994=1.0) 2000 North Market 2001 year America) o
Slide 14: Industrial Chemicals Expected 2005 Outlook
Industrial Expected 2005 Partially – Increased 13Successful Significant Peroxide Higher Peak Freight Balance earnings total soda offset selling and to volumes Chemicals is price price be ash raw price improvement energy to by main realization prices increase materials: becost increase and up driver
Slide 15: Specialty Chemicals Overview
Specialty 2004 Lithium BioPolymer Asia Europe/Middle North Latin BioPolymer: Lithium: – energy 14Acts Market Focus 15% Consolidated America America as storage on 28% –aleader Chemicals One binder specialty 72% – 8% Adds devices 41% East/Africa of in&two every Sales: disintegrant structure, Overview
Slide 16: Specialty Chemicals Performance
Specialty The Millions 30% 2000 Margin EBITDA 15 benefit 25% 2001$140 Capital Chemicals 20% 2002 of $120 continued 15% 2003 Spending $100 10% Performance 2004 sales $80 5% EBITDA $127 0% $60 growth $122 $40 Margin has $20 $116 recently $0$132 (%) $129 been offset by cost pressures in BioPolymer
Slide 17: Specialty Chemicals Expected 2005 Outlook
Specialty Expected 2005 Earnings Promising – 16Strong Focus Selective Productivity Raw Oral Functional Finerevenue dosage chemistry materials on organic growth to Chemicals new lithium increases be food growth form improvements the products to rate growth applications ingredients long-term remain sp
Slide 18: Agricultural Products Overview
Agricultural 2004 Fungicides Herbicides Insecticides Asia Europe North Latin Proprietary, Key – 17The Focused Cost crops: 13% Consolidated America America depth reduction Middle innovation 25% cotton, 2% branded 73% and Products 36% 35% East breadth strategies corn, Sales: Africa insecticides (R&D O
Slide 19: Agricultural Products Performance
Agricultural Significant Millions 25% Margin 2000 EBITDA 18 20% 2001 $114 $160 Capital 15% 2002 recovery Products $101 $140 10% 2003 Spending $99 $120 5% driven Performance 2004 $111 0%$100 EBITDA by $148 improving $80 $60 Margin $40 global $20 (%) farm $0 economy, strength in Brazil and benefits of
Slide 20: Agricultural Products Expected 2005 Outlook
Agricultural Expected Relatively Similar – In-licensed 19Growth Brazilian Unfavorable Relatively Continued Higherearnings energy, to inflat market products remain new flat Products progress revenue impact sales in raw products to 2005 strong to material remain in 2005 ofversus contribute reducing pr
Slide 21: In Summary
In Summary Great requirements 20 businesses, Significant each generating balance sheet EBITDA deleveraging of over $100 million Industrial Chemicals earnings still over $50 million below peak Steady growth in the balance of the portfolio Low capital expenditure
Slide 22: FMC Corporation
FiNvIC FMC Corporation
Slide 23: Appendix: Reconciliation of Net Income (Non-GAAP)
Appendix: RECONCILIATION (NON-GAAP) Twelve December 2004 Discontinued Restructuring Write-off Tax Diluted Average *Restructuring and ended **In ***For pronouncement adjustments 22 were effect adjustments conjunction 2003 December the Months earnings after-tax number $0.7 of of 31, Earnings three inc
Slide 24: Appendix: Reconciliation of EBITDA
Appendix: Reconciliation (Unaudited, Income 12/31/2004 Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 23 (loss) expense, Interest (Non-GAAP) ofEBITDA in deferred and and from millions) ofExpense net amortization full-year other continuing Reconciliation 78.4 financing 369.8 char
Slide 25: Appendix: Segment EBITDA Reconciliation
Appendix: Reconciliation (Unaudited, Segment Depreciation Add: FY 24 2004 EBITDA segment Industrial Segment inand millions) of amortization full-year operating (Non-GAAP) Chemicals EBITDA2004 profit Reconciliation Specialty 67.0 segment $(GAAP) 124.3 32.4 Chemicals 29.3 $operating 128.5 $ 57.3$$147.
Slide 26: Appendix: ROIC Reconciliation
Appendix: Reconciliation interest (Unaudited, 2003 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 Actual December numerator (denomina
Slide 27: FMC Corporation
FiNvIC FMC Corporation