Fmc Corporation · NYSE:FMC
Fmc — Warburg Global Soda Ash Conference (February 2005)
28 slides from Fmc's conference presentation, Feb 18, 2005
Slide 1: FMC Corporation Soda Ash Outlook Conference
Exhibit 99.1 FMC Warburg Global UBS Grassroots Corporation SodaChemical Ash Outlook Conference E.T. Flynn February 17, 2005
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 Presentation and Financial Terms
Non-GAAP presentation: These terms” Depreciation EBITDA 2 slides andMargin (Earnings are Financial contain also and defined contain is for Amortization the Before certain a Terms segment below. quotient references Interest, “non-GAAP Infor isofaddition, the EBITDA that Taxes, toquotient segment segm
Slide 4: FMC Corporation: Diversified Chemical Company
Diversified ($ FMC Industrial Specialty Agricultural Revenue: * 3 EBITDA million, 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% position
Slide 5: Multi-Year Recovery in Sales and Earnings
Multi-Year We millions 2,200 Sales, $1,600 2000 1,000 Sales $3.00 4.00 5.00 6.00 * 1.00 2.00 4 Earnings are 2001 EPS EPS*, 1,400 on 2,000 track 2002 before Recovery 1,200 1,800 to 2003 restructuring deliver 2004a 2005E sustained and other multi-year incomerecovery and charges in sales per diluted an
Slide 6: Industrial Chemicals EBITDA and Outlook
Industrial Millions $200 $100 $133 15% 20% 25% $94 1998 0% 5% 10% EBITDA 2005 Higher 5 Margin $50 $130 1999 outlook selling $150 Capital $0 Chemicals $124 2000 $208 calls prices 2001 Spending $194 forto2002 ~50 be contribute $177 the percent EBITDA 2003 Primary 2004 $50 growth Margin million Driver
Slide 7: Industrial Chemicals Overview
Industrial 2004 Asia 35% Foret (Soda Excludes #1 6 North Alkali 7% Consolidated ash)American phosphorus Chemicals Europe/Middle Sales: manufacturer Overview chemicals $813.7 Northsales America million of soda at Astaris ash 46%andEast/Africa JV,peroxygens largely in 50% North Backward 36% America Pe
Slide 8: Agenda: Soda Ash Outlook
GlobalStrengths FMC Pricing Supply Demand China Background Agenda: 7 Summary Soda Ash Outlook
Slide 9: Soda Ash Production and Demand Overview
Sodaproduction 2004 China Worldwide Glass Two Low 8 cost Ash global represents is the position Demand growth demand largest routes: largest has Overview of market ~~made 43.2M natural 2-3% endconsuming use the per Tons and US sector; year synthetic largest primarily ~~12.4M 50% export ofShort intota
Slide 10: American Natural Soda Ash Corporation (ANSAC)
American Export Limited ANSAC Latin Asia China Middle 9 –America Other sales/marketing East exemption exports Natural / Africa ~ Soda 1/3 from oflogistics Ash Sherman USCorporation productionf corporation Anti-trust (ANSAC) law for the purpose of export sales
Slide 11: Weaker Industry Financial Environment and Events
Industry Weaker Financial Ocean Cost Synthetic for OCI Capacity Solvay China FMC 10 Chinese shutdown announced is supply freight shutdown announced US experiencing Events producers dollar soda /rates demand Incheon, Have restart ash ofshutdown have impacted Colorado producers Reset a remains salt of
Slide 12: Export Pricing Momentum Continues
Upward European Chinese Higher U.S. Strong Functional 11 dollar GDP ocean Momentum producers domestic producers substitution relatively growth transport price under in worldwide for weak Asia and occurs has Export additional energy doubled andasPricing facing Latin caustic costs cost inAmerica highe
Slide 13: China Industry Summary
(K short Production Demand Growth Exports Imports China Higher RMB 12 revaluation Industry will raw 8.4% 1,378 298 tons) 11,100 remain 12,160 material 210 11.4% 2003 1,574 Summary 12,370 170 remains balanced 13,734 2004 costs 1,600 8%13,370 2005 (salt, a14,800 as possibility growth coal, electricity
Slide 14: 2004 Regional Soda Ash Demand
Est. Europe ROW Canada 9% 2004 U.S. Demand Region North Asia Latin Western Rest Total 13 2004 of Soda Regional 34% (ex exports: 43.2 America America 8% World (M Western Europe China) %Exports Ash 28 tons) 11% US5.2 21.4 Share 38% 2.9 Exports 7.3 4.4 7.2 Share million by 69 100 41 9Region tons(%)
Slide 15: U.S. Soda Ash Demand by End Use
2004 U.S. Pulp Other 2% Flat Domestic (+) 14 Strength 25% Glass End & U.S. Paper Detergents Use gains Chemicals Soda across 11% Sectors as Demand U.S. Glass economically 10% 18% economy Containers ~6.9M 27% Other Tons recovers sensitive Glasssegments 7% (e.g. chemicals/flat glass) (+) Solvay plans t
Slide 16: U.S. Soda Ash Demand and Exports
U.S.short 2005 (K Domestic Net Total 15 Exports Soda demand Demand tons) Demand Ash 4,480 will 2001 11,380 Demand be 4,635 6,900 2002 restricted 11,485 4,880 6,850 200311,730 5,170 2004E by 6,850 available 12,070 5,200 6,900 2005F7,000 capacity 12,200
Slide 17: U.S. Soda Ash Capacity by Producer
U.S. 19% Solvay-WY * 2005 M FMC General OCI Solvay—WY Solvay—CO SVM 16.5 Estimated ** 16Searles Tons Granger Solvay-CO 3.3 13.4 Soda General Capacity 29% 4.9 1.5Nameplate 2.8 2.4 3.8 Valley 1.5 Ash Effective @ 2.8 ** 1.0 17% 3.1 250 Post Supply Minerals 20% 0.0 3.1 SVM KMothball Capacity tons 6%* pe
Slide 18: FMC Granger Restart in Future Supply
FMC In Supply Future 17 January Granger increments strategic FMCRestart export announced of total customers/markets 1.3the Mrecommission tons capacity Juneof will 1,250K 2005 onlytons be startup recommissioned per date year Capacity of production aswill business be capacity based conditions on: at G
Slide 19: Domestic U.S. Soda Ash Price and Utilization
Domestic U.S. Soda 1990 1991 Price Effective 1999 2003 85% 2005F 18 Bulk 90% Ash 0.8 1992 2004 Index 0.9 Capacity Price Soda 95% 1993 1998 1 1.1 100% Ash Index 1994 Last 1.2 Util. U.S. (1990 1995 Peak 2000 Capacity 1996 =2001 1.0)1997 2005 Utilization Contract (%Renewals Effective)2002
Slide 20: 2004 Pricing Actions and Contract Renewals
2004producers Domestic Off-list List Significant Most Limited Added ANSAC Increased Offset All Europe 19 grades prices Price successful by an prices byrising Asian of raised Actions progress competitive soda have +$30/ton ocean pricing fuel contract +ash Will announced $20/ton made surcharge freight
Slide 21: Alkali Chemicals Division Key Product Offerings
AlkaliAsh High Soda Other Sodium Chemical 20 Volume Value Chemicals Sesquicarbonate Caustic (i.e. niche) Division Soda Sodium Key Product Bicarbonate Offerings Light Density Soda Ash
Slide 22: Alkali Chemicals: World's Largest Natural Soda Ash Producer
Alkali World’s Niche Largest 1.6 0.8 Cost Base Mining Solution 2 0 FMC 1 Mining Index =product Chemicals 0.4 1.2 scale largest Longwall FMC &positions and multiple Competitors Business lowest difficult mining cost Strengths natural methods for domestic soda ash competitors producer Leading to duplic
Slide 23: Alkali Chemicals Division Summary
Alkali U.S. 7% History Financial Raw Chinese FMC Lowest Domestic Incremental 22 growth industry material isChemicals cost shows positioned governmental pressure and incapacity producer operating and U.S. export operating Division—Summary energy worldwide for export price options higher influence atr
Slide 24: FMC Corporation
Fic FMC Corporation
Slide 25: Appendix: Reconciliation of Net Income (Non-GAAP)
Appendix: RECONCILIATION (NON-GAAP) Twelve December Discontinued Restructuring Write-off Tax Diluted Average *Restructuring and ended **In ***For pronouncement adjustments 24 were effect adjustments conjunction December the Months earnings after-tax number $0.7 of of 31, Earnings three includes defe
Slide 26: Appendix: Reconciliation to 2004 EBITDA
Appendix: Reconciliation (Unaudited, Income 12/31/2004 Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 25 (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 27: Appendix: Segment EBITDA Reconciliation
Appendix: Reconciliation (Unaudited, Industrial Segment Depreciation Add: FY 26 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 28: FMC Corporation
Fic FMC Corporation
FMC — Warburg Global Soda Ash Conference (February 2005) on 6ix