Fmc Corporation · NYSE:FMC
Fmc — Credit Suisse Basics Conference 2006
22 slides from Fmc's conference presentation, Sep 21, 2006
Slide 1: FMC Corporation - Credit Suisse Basics Conference
Exhibit 99.1 FMC Corporation * * * Credit Suisse Basics Conference New York, NY September 21, 2006 William G. Walter Chairman, President and CEO
Slide 2: Disclaimer
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 results
Slide 3: FMC Corporation
FMC Corporation ($ million, LTM ending June 30, 2006) FMC Revenue: $2,218.6 EBITDA: $447.9 Margin*: 20.2% Industrial Specialty Agricultural Chemicals Chemicals Products Revenue: $928.0 Revenue: $572.8 Revenue: $721.0 EBITDA: $155.9 EBITDA: $145.6 EBITDA: $178.4 Margin*: 16.8% Margin*: 25.4% Margin*:
Slide 4: Leading Market Positions
Leading Market Positions Product Group Position(1) Industrial Soda Ash #1 in N.A. Chemicals Peroxygens #1 in N.A. Agricultural Pyrethroids #2 in N.A. Products Carbofuran #1 Globally Microcrystalline Cellulose #1 Globally Specialty Carrageenan #1 Globally Chemicals Alginates #2 Globally Lithium Speci
Slide 5: Diversified Customers and End Markets
Diversified Customers and End Markets 2005 Consolidated Sales Bottle Other 12% Cyclical Non-Cyclical Glass 3% Chemicals 6% 19% 81% Food 8% Pulp & Paper 4% Glass/Fiberglass 4% Pharmaceuticals 11% Electronics 2% Other 3% Detergents 9% Chemicals 4% Agricultural 34% Greater than 80% of sales to non-cycl
Slide 6: Diversified and Integrated Cost Structure
Diversified and Integrated Cost Structure Low cost sourcing of raw materials – Backward integration: soda ash, lithium – Global sourcing of renewable resources: hardwood pulp, seaweed Low reliance on purchased raw materials – Total raw materials represent approximately 25% of cost of sales – No sing
Slide 7: Disciplined Approach to Unlocking Value
Disciplined Approach to Unlocking Value Realizing the inherent operating leverage within FMC - Sustained earnings growth >10% per year (1) - Industrial Chemicals recovery in mid-cycle in 2006 - Continued growth in Specialty Chemicals and Agricultural Products Maintaining financial strength and flexi
Slide 8: Industrial Chemicals
Asia 7% Industrial Chemicals Based on 2005 Consolidated Sales of $870.4 million Asia 7% Foret 33% Alkali (Soda ash) Europe/Middle North America 49% East/Africa 50% 34% Peroxygens Latin 18% America 9% #1 North American manufacturer of soda ash and peroxygens Backward integration into natural resource
Slide 9: Soda Ash Demand
Soda Ash Demand 12 U.S. Soda Ash Shipments 1990-2005 10 Exports 8 6 Glass Containers Flat Glass 4 Chemicals 2 Detergents Other 0 Demand Drivers: – Industrialization rates in key export markets – Cost advantage of natural soda ash vs. synthetic soda ash – GDP growth 8
Slide 10: Industrial Chemicals Financial Performance
Industrial Chemicals Financial Performance 151 150 30.0 133 130 124 100 94 20.0 50 10.0 0 0.0 2001 2002 2003 2004 2005 EBITDA Capital Spending EBITDA Margin 2006 Earnings growth of 30-35% driven by higher selling prices, partially offset by higher energy and raw material costs and the loss of Astari
Slide 11: Specialty Chemicals
Specialty Chemicals Based on 2005 Consolidated Sales of $558.5 million Asia 18% Lithium 31% North America Europe/Middle 39% BioPolymer East/Africa 69% 37% Latin America 6% BioPolymer: • Adds structure, texture and stability to food • Acts as a binder & disintegrant for dry tablet drugs • Market lead
Slide 12: Specialty Chemicals Financial Performance
Specialty Chemicals Financial Performance 150 140 30.0 132 129 122 116 100 20.0 50 10.0 0 0.0 2001 2002 2003 2004 2005 EBITDA Capital Spending EBITDA Margin 2006 Earnings growth of approx. 10%,driven by strong commercial performance in lithium and BioPolymer, offset in part by higher raw material an
Slide 13: Agricultural Products
Agricultural Products Based on 2005 Consolidated Sales of $724.5 million Asia 16% Herbicides 25% Europe/ Middle Latin America East/Africa 39% Fungicides 2% 17% Insecticides 73% North America 28% Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides
Slide 14: Agricultural Products Financial Performance
Agricultural Products Financial Performance 157 148 150 30.0 111 101 99 100 20.0 50 10.0 0 0.0 2001 2002 2003 2004 2005 EBITDA Capital Spending EBITDA Margin 2006 Earnings growth in the mid-to-high teens, reflecting favorable mix and further supply chain productivity improvements, partially offset b
Slide 15: FMC in Summary
FMC in Summary Great businesses, each with EBITDA of at least $140 million Double digit earnings growth - Earnings leverage in Industrial Chemicals - Continued growth in Specialty Chemicals and Ag Products Strong financial position - Robust and growing EBITDA - Substantial decline in unusual demands
Slide 16: FMC Remains Significantly Undervalued
FMC Remains Significantly Undervalued EV/2006E EBITDA 9.3 9.5 8.9 8.4 8.4 8.6 7.9 7.3 7.4 7.0 6.7 6.4 5.5 4.4 4.5 Source: Thomson First Call data as of September 15, 2006 15
Slide 17: Appendix
* * * * FMC Corporation Appendix Glossary of Financial Terms * * * Reconciliations of GAAP to Non-GAAP
Slide 18: Non-GAAP Financial Terms
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. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortizat
Slide 19: Segment Financial Terms
Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 18 of FMC’s 2005 Form 10-K. Some of the segment financial terms are “non-GAAP financial terms” and are defined below. In addition, we have provided reconciliations of non-GAAP ter
Slide 20: EBITDA Reconciliation: LTM 6/30/06
EBITDA Reconciliation: LTM 6/30/06 Reconciliation of LTM 6/30/2006 consolidated income from continuing operations before income taxes (a GAAP measure) to LTM 6/30/2006 EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 6/30/2006 Income (loss) from continuing operations before income taxes $1
Slide 21: Segment EBITDA Reconciliation
Segment EBITDA Reconciliation Reconciliation of LTM 6/30/06 segment operating profit (a GAAP measure) to LTM 6/30/06 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Industrial Specialty Agricultural Segment Chemicals Chemicals Products LTM 6/30/06 segment operating profit (GAAP) $92.0 $115.0 $1
Slide 22: FMC Corporation
* * * * * * FMC Corporation