Slide 1: FMC Corporation - UBS Warburg Meetings
Exhibit 99.1 [logo] FMC Corporation UBS Warburg Meetings September 2nd – 4th, 2003 William G. Walter Chairman, President and CEO
Slide 2: Disclaimer
[LOGO] Disclaimer 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 res
Slide 3: FMC Corporation
[LOGO] FMC Corporation Diversified chemical company with leading market positions in agricultural, industrial and consumer markets globally ($ million, 12/31/02) FMC Sales: $1,852.9 EBITDA: $313.7 Margin: 16.9% Agricultural Products Specialty Chemicals Industrial Chemicals Sales: $615.1 Sales: $488.
Slide 4: Agricultural Products Group Overview
[LOGO] Agricultural Products Group Overview 2002 Consolidated Sales: $615.1 million [PIE CHART] [PIE CHART] · Manufacturer of proprietary, branded insecticides and herbicides · Key crops: cotton, corn, rice, cereals and vegetables · FMC differentiated by: —Concentration in insecticides —Focus on sel
Slide 5: Agricultural Products Financial Performance
[LOGO] Agricultural Products Financial Performance ($ in millions) Historical Performance [BAR CHART] —Global crop recession since 1997 —Sulfentrazone row crop peak in 2000 —Steady ‘00 -’02 sales growth in pyrethroid insecticides of 5% CAGR —2002 refocusing on insecticides, key crops and select regi
Slide 6: Growth in Agricultural Products
[LOGO] Growth in Agricultural Products • Near-term growth is in our core, patented products representing nearly 45% of total sales: — Bifenthrin insecticide driven predominately by corn — Zeta-cypermethrin insecticide driven by 9 new labels — Carfentrazone post-emergent herbicide driven by 4 new lab
Slide 7: Specialty Chemicals Group Overview
[LOGO] Specialty Chemicals Group Overview 2002 Consolidated Sales: $488.2 million [PIE CHART] [PIE CHART] · BioPolymer: — Adds structure, texture and stability to food — Acts as a binder & disintegrant for dry tablet drugs — Market leader in each product line · Lithium: — One of two global, integrat
Slide 8: Specialty Chemicals Financial Performance
[LOGO] Specialty Chemicals Financial Performance ($ in millions) Historical Performance — Strong ‘00 -’02 BioPolymer unit growth of over 5% CGR: • Demand for dry tablet pharmaceuticals [BAR CHART] • Health and convenience demands in food — Decline in lithium sales: • SQM entry into lithium carbonate
Slide 9: Growth in BioPolymer
[LOGO] Growth in BioPolymer Food Ingredients Pharmaceutical Formulation Market FMC Market FMC Growth Share Growth Share Cellulosics 5% #1 Binders 5% #1 Carrageenan 4% #1 Hydrocolloids 4% #1 Alginates 3% #2 Disintegrants 4% #2 • Competitive advantage: • Competitive advantage: – Breadth of product lin
Slide 10: Growth in Lithium
[LOGO] Growth in Lithium Growth profile to improve substantially beginning in 2003 · Solid growth in polymer markets of 4-6%: – Key products: lithium metals, butyllithium, specialty organometallics – Uses: polymer synthesis and initiation – 28% of FMC Lithium sales · Strong growth in pharmaceutical
Slide 11: Industrial Chemicals Group Overview
[LOGO] Industrial Chemicals Group Overview 2002 Consolidated Sales: $753.4 million [PIE CHART] [PIE CHART] Excludes phosphorus chemicals sales at Astaris JV of $445.7 million, largely in North America • #1 North American manufacturer of soda ash, peroxygens and phosphorus chemicals • Backward integr
Slide 12: Industrial Chemicals Financial Performance
[LOGO] Industrial Chemicals Financial Performance ($ in millions) Historical Performance [BAR CHART] — ‘01-’02 recession and overcapacity — Capacity mothballs and shutdowns: • Soda ash mothball: 1.3 mil. tons • Hydrogen peroxide mothball: 100 mil. lbs • Shutdown of Astaris elemental phosphorus plant
Slide 13: Price Recovery in Hydrogen Peroxide
[logo] Price Recovery in Hydrogen Peroxide About ~1 cent per lb. increase in hydrogen peroxide has been achieved in 2003 and several more cents possible in 2004 [LINE CHART]
Slide 14: Improving Price Outlook for Soda Ash
[LOGO] Improving Price Outlook for Soda Ash Soda ash price announcements for 2004 have begun, while rumors surrounding industry consolidation continue [LINE CHART] Source: Isonex/USGS and FMC
Slide 15: Bottoming in Phosphorus Chemicals
[LOGO] Bottoming in Phosphorus Chemicals In North America, Astaris to be down over $20 million vs. 2002 (FMC basis). In Europe, Foret to be relatively flat vs. 2002. [BAR CHART] [BAR CHART] · End of power resale contract (Astaris only) · Shift to low cost purified phosphoric acid (Astaris only) · De
Slide 16: FMC's Strengths
[LOGO] FMC’s Strengths Strong businesses in a diversified portfolio · Leading market positions · Global presence · Diversified business mix and high-quality customer base · Diversified and integrated cost structure · Focused R&D and strong applications expertise · Proven management with extensive in
Slide 17: FMC Valuation
[LOGO] FMC Valuation For all our strengths, we continue to be grossly undervalued Enterprise Value to Trailing EBITDA (as of August 31st, 2003) [BAR CHART] S&P 400 Chemicals Index Components Source: Bloomberg Financial andSEC Filings
Slide 18: Unlocking Shareholder Value
[LOGO] Unlocking Shareholder Value · Maximize and realize operating leverage · Create greater financial flexibility · Focus the portfolio on higher growth businesses
Slide 19: Maximize and Realize Operating Leverage
[LOGO] Maximize and Realize Operating Leverage · Reduce costs in Industrial Chemicals to enhance impact of recovery · Grow Agricultural Products and Specialty Chemicals profit · Deploy free cash flow to reduce $300 million of debt by end of 2006 [CHART]
Slide 20: Create Greater Financial Flexibility
[LOGO] Create Greater Financial Flexibility Debt reduction to begin in 2004 ($ in millions) TROUGH 2003 EBITDA* $300-305 Less normal: Net interest expense ($100) Capital spending (70% of D&A) (85) Environmental spending (legacy) (25) NORMAL TROUGH FREE CASH FLOW* $ 90-95 Less 2003: Pocatello-related
Slide 21: Focus Portfolio on Higher Growth Businesses
[LOGO] Focus Portfolio on Higher Growth Businesses · Selectively grow our more attractive businesses, managing the balance of our portfolio for cash – Leverage growth platforms in Specialty and Ag – Manage Industrial Chemicals for cash · Focus the portfolio on businesses in which FMC is the natural
Slide 22: FMC Corporation
FNC FMC Corporation [LOGO] FMC Corporation