Fmc Corporation · NYSE:FMC
Fmc — Debt Investor Presentation (December 2003)
21 slides from Fmc's debt investor presentation, Dec 9, 2003
Slide 1: FMC Corporation Presentation to Senior Lenders
Exhibit 99.1 FMC Corporation Presentation to Senior Lenders December 9, 2003
Slide 2: Safe Harbor Statement
1 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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 Comp
Slide 3: Financial Objectives and Outlook
Financial Objectives and Outlook Kim Foster Senior Vice President and CFO
Slide 4: FMC Corporation: Diversified chemical company
3 $598.4 Agricultural Products Sales: 1 16.8% $1,874.2 315.7 $516.0 FMC Specialty Chemicals Sales: Adjusted EBITDA: Adj. EBITDA Margin: Sales: $763.5 FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ million, LTM R
Slide 5: FMC's Strengths
• 4 • base experience customer expertise high-quality structure industry and cost applications extensive positions mix integrated strong with and Strengths market presence business and R&D management Leading Global Diversified Diversified Focused Proven • FMC’s . . . . .
Slide 6: Operating Performance: 2003 YTD
5 favorable Higher Industrial Chemicals sales due to favorable foreign currency Stronger Specialty Chemical sales driven primarily by pharmaceutical growth Lower Agricultural Product sales resulting mainly from weak North American pest pressure Decreased Industrial Chemicals operating profit (“earni
Slide 7: Year-to-Date Financial Summary
193.2 122.5 $315.7 16.8% $95.2 92.2 0.9x 3.3x 3.3x 2.3x 6 LTM 09/30/03 $1,874.2 $1,083.8 137.7 92.7 $230.4 16.3% $71.7 59.2 the 6.375% debentures due 9-Months 2003 $1,414.5 $1,393.2 131.4 89.0 $220.4 15.8% $48.1 50.9 9-Months 2002 186.9 118.8 $305.7 16.5% $71.6 83.9 1.0x 3.5x 4.3x 3.1x 2002 $1,852.9
Slide 8: Industrial Chemicals: 2003 YTD Performance
7 a partially offset by weaker Astaris Sales up 2% Segment earnings down over 50% YTD performance versus 2002: – – Favorable impact of strong euro at Foret soda ash export prices and lower hydrogen peroxide volumes into the domestic pulp market Significant decline in affiliate earnings resulting fro
Slide 9: Specialty Chemicals: 2003 YTD Performance
8 18% Sales up 8% Segment earnings up YTD 2003 results highlight strong growth compared with 2002: – – BioPolymer driven by continued growth in microcrystalline cellulose for pharmaceutical formulation market Lithium driven by good growth in pharmaceutical synthesis market and in energy storage appl
Slide 10: Agricultural Products: 2003 YTD Performance
9 Sales down 4% Segment earnings up 11% YTD performance versus 2002: – – In North America, weak pest pressure in cotton and corn partially offset by strong non-crop sales into the professional, turf and ornamental markets Significant (and fundamental) improvements in Brazil Segment earnings growth d
Slide 11: Strategic Objectives
10 restructuring and eliminate further financial obligations and volume recovery Astaris Reduce net debt by $300 million (from FYE 2002 level) through FMC’s strong underlying free cash flow generation Grow key franchises in Specialty Chemicals Enhance the value of Agricultural Products through focus
Slide 12: Near-Term Outlook
11 Modest volume growth Improved capacity utilization keep-well obligation Pursue asset divestiture opportunities Key franchises to drive mid- single digit sales growth in Specialty Chemicals in Agricultural Products Higher selling prices Complete Astaris restructuring End Astaris Complete last year
Slide 13: Financial Objectives and Outlook
Financial Objectives and Outlook Tom Deas Vice President and Treasurer
Slide 14: Financial Objectives
level) 13 Leveraging cash from operations as earnings recover Excludes upside from potential asset divestitures Financial Objectives FMC is committed to strengthening its credit profile Debt reduction of $300 million by the end of 2006 (from FYE 2002 – – No dividends No share repurchases Foreign cur
Slide 15: Current Capitalization
14 09/30/03 $153.1 137.4 $25.7 — 248.1 $273.8 220.5 197.5 355.0 45.6 0.4 (9.0) $1,083.8 0.9x 3.3x 3.3x 2.3x Debt Total Bank Debt /LTM EBITDA CapEx)/ Interest Expense Sheet Total Debt (1) ($ in millions) Cash and Cash Equivalents Restricted Cash Account Senior Secured Revolver due 2005 Pollution Cont
Slide 16: Strong Liquidity Position
15 09/30/03 $250.0 0.0 (2.6) $247.4 153.1 $400.5 107.4 507.9 Advised Foreign Credit Lines Outstanding L/C’s Strong Liquidity Position ($ in millions) Revolver Facility Less: Amount Drawn Revolver Availability Plus: Unrestricted Cash Total Committed Liquidity Plus: Undrawn Total Liquidity
Slide 17: Cash Outlook: 2003 and 2004
restructuring plan is expected to minimize 2004 free cash flow generation 16 Working capital reductions of $30-35 million in 2003 Flat capital spending versus 2002; well below D&A Astaris keepwells of $63 million in 2003 ($47.5 million through 9/30/03) $30-40 million of net debt reduction (net of ca
Slide 18: Astaris Restructuring
17 2003 (now $42 million following to profitability in 2004 credit agreement: st Reduce $40-50 million in costs through 4 facility closures and lower overhead Focus the business on higher value food and technical phosphate markets Improve internal capacity utilization from 61% to 90% Astaris Anticip
Slide 19: Create Greater Financial Flexibility
18 2006 TBD TBD ~25 ~10 0 0 2005 TBD TBD ~25 ~10 0 0 2004 —Substantially increasing— TBD TBD ————Decreasing—————- ——-Flat to increasing——— ~25 ~35 0 ~42 13 35 $100 85 25 15 35 63 2003 ~$315 $ ~$ $ $ $ $ $ Create Greater Financial Flexibility Despite Astaris restructuring, FMC on track to reduce $300
Slide 20: Appendix
Appendix
Slide 21: Adjusted EBITDA Calculation
$31.0 122.5 2.8 95.2 (57.4) $308.9 6.8 $315.7 20 LTM 09/30/03 $15.9 92.7 1.5 71.7 (57.5) $239.3 (8.9) $230.4 9-Months 2003 $71.4 89.0 2.1 48.1 4.6 $206.0 14.4 $220.4 9-Months 2002 $86.5 118.8 3.4 71.6 4.7 $275.6 30.1 $305.7 2002 Income (loss) from continuing operations before income taxes D&A Minori