Fmc Corporation · NYSE:FMC
Fmc — UBS Warburg Grass Roots Conference 2003
26 slides from Fmc's conference presentation, Feb 26, 2003
Slide 1: FMC Corporation Industrial Chemicals
INC FMC Corporation Industrial Chemicals Robert I. Harries, Senior Vice President UBS Warburg Grass Roots Conference February 26", 2003
Slide 2: Disclaimer
MC 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
MC FMC Corporation Diversified chemical company with leading market positions in agricultural, industrial and consumer markets globally ( milion, 12/3102) FMC Sales: $1,852.9 EBITDA: $313.6 Margin: 16.9% Agricultural Specialty Industrial Products Chemicals Chemicals Sales: $615.1 z $488.2 Sales: $75
Slide 4: FMC Priorities
MC FNC Priorities Maximize and realize operating leverage Create greater financial flexibility “Focus the portfolio on higher growth businesses
Slide 5: Leading Market Positions
MIC Leading Market Positions Product Market Pos! Agricultural Pyrethroids #2 in NA. Products Carbamates #1 Globally Microcrystalline Cellulose #1 Globally Specialty Carrageenan #1 Globally Chemleals Alginates #2 Globally Lithium #1/#2 Globally Soda Ash #1 in NA. Industrial Hydrogen Peroxide #1 in NA
Slide 6: Industrial Chemicals Group
Mc Industrial Chemicals Group 2002 Consolidated Sales $753.4 Astaris Sales (50% basis) $226.1 TOTAL $979.5 Astaris 23% Peroxygens 16% Consolidated Sales mAstaris JV
Slide 7: Phosphorus Chemicals Review
Phosphorus Chemicals Review
Slide 8: Global Phosphorus Chemicals Demand
MIC _ Global Phosphorus Chemicals Demand Phosphate derivatives produced from building blocks of elemental phosphorus (P,) and/or purified phosphoric acid (PPA) 2002 Demand of 2.6 n MT PO; 3% CAGR, 2002-7 Source: CRU International Limited and FMC Estimates
Slide 9: North and Central American Markets
MC _ North and Central American Markets FMC addresses these markets through the ASTARIS joint venture 2002 Demand of 0.7 million MT P,0,; 2002 Sales of $1 billion 2% CAGR, 2002-7 1-2% CAGR, 2002-7 = Source: CRU International Limited, Astaris Estimates a
Slide 10: European and Middle Eastern Markets
‘NMIC_ European and Middle Eastern Markets FMC addresses these markets through its wholly-owned FORET subsidiary 2002 Demand of 0.9 million MT P,0, 2002 Sales of $0.8* billion 3% CAGR, 2002-7 3% CAGR, 2002-7 = Source: CRU International Limited and FMC Estimates Excludes Animal Feed 3
Slide 11: Industry Trends: Stable Demand
MIC Industry Trends: Stable Demand Phosphorus chemicals demand remains stable despite slowing economies 4600 5 4400 4200 Europe/Middle East = North/Gentral America 600 400 200 o 4999 2000 2004-2002 MT, x000, P205 8 8 3 Source: CRU International Limited ai
Slide 12: Industry Trends: Competition
Mc Industry Trends: Competition FMcC/Astaris and Rhodia are only global, full-line producers North America Western Europe 2002, MT P,0, 2002, MT P,O, Budenheim Source: FMC and Astaris Estimates “
Slide 13: Industry Trends: Reducing Overcapacity
MIC Industry Trends: Reducing Overcapacity Recent plant closures have improved phosphate ut NorthiCentral America 1000 100% é a0 ee 4s 80% a ge m 60% [mmmCapacity 2 40 40% | |—s-Utiization = 20 20% a4 + 0% 19 200m Europe/Middle East 1400 100% = 1200 80% 1000 oS 800 60% B 600 40% 400 = 200 20% 0 0% 1
Slide 14: Industry Trends: Globalization
MIC Industry Trends: Globalization “> World trade in the phosphate industry has recently increased - Chinese P4, PPA and phosphate exports — Israeli exports of PPA “> Imports into North America have had an unfavorable impact, particularly on selling prices - Chinese entry - Israeli share gain in hig
Slide 15: Industry Trends: Restructuring
+IVIC Industry Trends: Restructuring “> Restructuring completed — Formation of Astaris - Rhodia’s acquisition of Albright and Wilson - Shutdown of Rhodia Whitehaven plant in U.K. - Recent purchase of Thermphos “> Several significant opportunities remain for restructuring - Production restructuring w
Slide 16: Astaris' Supply Chain Restructuring
MIC sAstaris’ Supply Chain Restructuring Significant shift to PPA over three-year timeframe % of PO, Needs 10% yg Purchased PPA 4% Purchased PPA PPA 10% 90% 80% Monsanto P, PCS PPA 70% PPA’ 60% Astaris PPA 50% 40% Pocatello P, 30% Monsanto and 20% Chinese P, 10% 0% 2000 2003 6
Slide 17: FMC Phosphorus Chemicals in 2003
Mc FMC Phosphorus Chemicals in 2003 Complete Astaris’ supply chain shift to low cost purified phosphoric acid Increase prices selectively at Astaris “Reduce costs throughout phosphate operations +Leverage Foret’s low-cost, vertically integrated STPP position Astaris 2003 vs. 2002 Foret 2003 vs. 2002
Slide 18: Alkali and Peroxygens Update
Alkali and Peroxygens Update
Slide 19: FMC Alkali: Ready for Recovery
FMC Alkal Ready for Recovery “« Demand - Stable domestic growth - Further caustic soda conversion likely — Positive international outlook: — Strong domestic growth in China results in diminished exports — Indian market now open to ANSAC participation — Continued closures of inefficient synthetic cap
Slide 20: North American Soda Ash Cycle
‘IVIC_ North American Soda Ash Cycle Despite favorable conditions, producers undermines the p! incertainty surrounding two exiting ing outlook for 2003 $90 1 Last Peak 10% $85 100% Industry Price (/ST) 8 g 3 80% 70% 1987 1991 1995 1999 2003E — Industry Price — Effective Capacity Util. Source: Isonex
Slide 21: Market Leader, Lowest Cost
IMC Market Leader, Lowest Cost World’s largest natural soda ash producer North American soda ash market leader (~29%) Highest industry margins due in part to niche product positions — Sodium bicarbonate — Sodium sesquicarbonate Largest scale and multiple mining methods Soda Ash Cash Cost = ze FMC Co
Slide 22: Peroxygens: Well Positioned for Recovery
IVIC_ Peroxygens: Well Positioned for Recovery > Demand returning to positive growth Capacity utilization increasing due to demand growth and mothballs “Increased margins driven by higher prices ‘ Demand Growth (%) Effective Capacity Util (%) 100 : it | 95 0 2002 2003E oo 2 lothball 4 s Impact 16 10
Slide 23: North American Hydrogen Peroxide Cycle
MIC North American Hydrogen Peroxide Cycle Price increase of ~1 cent per Ib. in January 2003 on over 300 million Ibs. 12 100 Last Peak 1 ' 14 8s = = 5 a 1 2 & i s 3 5 3 5 = 09 a = g 4 8 = J & 8 os i 80 rf z 04 ! g = 1 g | 2 0.7 ' 7m w 1 ! 1 0.6 To 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 —P
Slide 24: Market Leader, Lowest Cost
IMC Market Leader, Lowest Cost “> FMC is North American leader (~25% hydrogen peroxide share) Industry leading margins built upon: — Electronics-grade hydrogen peroxide — Specialty peroxygens Leading cost position recently improved upon: — Spring Hill mothball and Bayport mothball restart — Continuo
Slide 25: Summary
Mc Summary Industrial Chemicals has a strong foundation for recovery “* Leading market positions “* Low-cost, integrated cost structure %* Expected stabilization of phosphorus chemicals * Significant operating leverage of $75 million (~$1.50 EPS) over cycle 24
Slide 26: FMC Corporation
INC FMC Corporation