Slide 1: FMC Corporation, Paul Graves, August 2013
FMC Corporation Paul Graves Executive Vice President and Chief Financial Officer August, 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement • These slides and the accompanying presentation contain “forward-looking statements” that represent management’s best judgment as of the date hereof based on information currently available. Actual results of the Company may differ materially from those c
Slide 3: FMC: Sustained Profitable Growth
FMC: Sustained Profitable Growth • Proven record of superior financial performance − 2012 revenue $3.7 billion and $738 million in EBIT • Business portfolio well positioned, with high margins and return on invested capital − Three strong core platforms − Low reliance on GDP cycles • Strong financial
Slide 4: LTM June 30, 2013 Results
LTM June 30, 2013 Results ($ millions) • Soda Ash • Lithium • Food • Pharmaceuticals • Nutraceuticals • Herbicides, Insecticides, Fungicides, Seed Treatment, Biologicals FMC Corporation • Peroxygens • Environmental Solutions 4 * FMC Peroxygens was reclassified as a Discontinued Operation as of July
Slide 5: FMC's Portfolio: The Foundation Of Success
FMC’s Portfolio: The Foundation Of Success 5 5 Leading market positions serving diverse end markets >80% of sales in markets with low correlation to economic cycles Low energy requirements and exposure to petro- chemicals In 2012, energy represented only 7% of cost of sales Diversified raw material
Slide 6: Reaffirming Our Vision For FMC In 2015
Reaffirming Our Vision For FMC In 2015 6 P R E M I U M T S R P E R F O R M A N C E Strong cash generation with disciplined cash deployment Significantly greater earnings stability Sustained mid-teens or higher return on invested capital Sales of $5B+ and EBIT of $1.2B Adjusted EPS of $5.75 - $6.25
Slide 7: FMC Agricultural Solutions Overview
FMC Agricultural Solutions Overview • An agile, innovative, customer- focused and highly profitable business • Global in scope, with particular strength in the Americas • Sustainable competitive advantage driven by unique business model • Industry leading technologies and services that bring solutio
Slide 8: Key Elements of Our Unique Business Model
Key Elements of Our Unique Business Model 8 F M C A G R I C U L T U R A L S O L U T I O N S Low-cost, variable manufacturing network Active ingredient innovation driven by aggregating technologies Disciplined focus on niche crops and technically- advantaged products for row crops Decentralized R&D,
Slide 9: Focus on Niche Crops And Pockets Of Technical Differentiation In Row Crops
11 – 20 % Each Fruits and Vegetables Sugarcane Cotton Soybean 6 – 10 % Each 2 - 5% Each Potato Wheat Sunflower Focus on Niche Crops And Pockets Of Technical Differentiation In Row Crops 9 FMC Mix By Crop F M C A G R I C U L T U R A L S O L U T I O N S Corn Rice Turf/Home & Garden Oilseeds
Slide 10: Delivering High Margins
Delivering High Margins (1) 2012 Reported Adjusted Operating Margin (2) Data for DOW Ag. Sciences is EBITDA margin 10 10 Crop Protection Chemicals 2012 EBIT Margin F M C A G R I C U L T U R A L S O L U T I O N S (1) (2) 0% 5% 10% 15% 20% 25%
Slide 11: FMC Health and Nutrition Overview
FMC Health and Nutrition Overview • Leading supplier of functional ingredients to food and pharmaceutical markets • Texturants and natural colors for food applications • Tablet binders for pharmaceutical and nutraceutical applications • Provide high degree of technical support, consistent quality, a
Slide 12: Epax: An Attractive Expansion Point In Nutraceuticals And Pharmaceutical API
Epax: An Attractive Expansion Point In Nutraceuticals And Pharmaceutical API 12 Overview • Leading producer of premium grades of omega-3 EPA/DHA fatty acids • Premium-positioned functional ingredient backed by strong clinical data • Two manufacturing locations: Alesund, Norway and Seal Sands, UK • S
Slide 13: Nutraceutical Segment: Fast-Growing and Highly Fragmented Ingredient Industry
Nutraceutical Segment: Fast-Growing and Highly Fragmented Ingredient Industry • Global nutraceutical ingredient market projected to reach $24B by 2015(1) • Estimated annual growth rate of 7%; faster growth if clinically confirmed health benefits and broad applications • Growth driven by: − Populatio
Slide 14: Omega-3 Projected to Lead Nutraceutical Growth
Omega-3 Projected to Lead Nutraceutical Growth: $2B Growing 12% to 15% Over Next 5 Years(1) • Common uses include dietary supplements, pharmaceutical, food applications and infant nutrition • One of the most widely studied nutraceuticals; large-scale studies overwhelmingly support health benefits •
Slide 15: Epax Produces High and Ultra-High Concentration Omega-3
Epax Produces High and Ultra-High Concentration Omega-3 15 OMEGA 3 Alesund, Norway • Produces high- concentration Omega-3 • Sold into the supplement and food markets • Shipped to Seals Sands for additional processing Pharmaceutical Supplement Functional Food Ingredient Purification/Concentration Ult
Slide 16: FMC Health And Nutrition Expanded Product Line
FMC Health And Nutrition Expanded Product Line Common End Markets and Characteristics • Regulated • Sizeable ($ billions) market segments with attractive growth rates − Food − Pharmaceuticals − Nutraceuticals − Personal Care • Branded products • High quality requirements, consistent standards • Proc
Slide 17: FMC Minerals Overview
FMC Minerals Overview • Advantaged commodity businesses that are managed to optimize supply/demand market characteristics • Largest natural soda ash producer • Market leader in key lithium segments • Favorable cost positions − Natural vs synthetic trona − Brine-based lithium extraction vs spodumene
Slide 18: FMC Minerals: Challenges of 2013 Turning Into Tailwinds For 2014
FMC Minerals: Challenges of 2013 Turning Into Tailwinds For 2014 2013 Challenges • Lithium manufacturing process issues related to the recent expansion project • Trough in soda ash export pricing 2014 Tailwinds • Completing process implementation changes in 3Q13 • Expect 4Q14 Lithium operating margi
Slide 19: On Track For Vision 2015 EPS target
$3.37 $3.80 $4.60 5.75 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2012A* 2013* 2014 2015 On Track For Vision 2015 EPS target 19 Expecting 2013 FY EPS $3.72- $3.87 Adjusted EPS Trend $5.75 – $6.25 2012 – 2015F CAGR 19 – 23% * Excludes Peroxygen Contributions. 2013 based on midpoint of July 30, 2013
Slide 20: Reaffirming Our Vision For FMC In 2015
Reaffirming Our Vision For FMC In 2015 20 P R E M I U M T S R P E R F O R M A N C E Strong cash generation with disciplined cash deployment Significantly greater earnings stability Sustained mid-teens or higher return on invested capital Sales of $5B+ and EBIT of $1.2B Adjusted EPS of $5.75 - $6.25
Slide 21: Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP 21
Slide 22: Non-GAAP Financial Terms
• These slides contain certain “non-GAAP financial terms” which are defined below. In addition, we have provided reconciliations of non- GAAP terms to the closest GAAP term in the appendix of this presentation • Adjusted Operating Profit (Adjusted earnings from continuing operations, before interest
Slide 23: EBIT Reconciliation: LTM 6/30/2013
Reconciliation of consolidated income from continuing operations before income taxes (a GAAP measure) to Adjusted Operating Profit (a Non-GAAP measure) EBIT Reconciliation: LTM 6/30/2013 This amount is before the reduction of non-controlling interests. As defined on the preceding Non-GAAP Financial
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