Fmc Corporation · NYSE:FMC
Fmc — Bank of America Merrill Lynch Global Industries Conference 2009
22 slides from Fmc's conference presentation, Dec 10, 2009
Slide 1: FMC Corporation – Bank of America Merrill Lynch Global Industries Conference
FMC Corporation Bank of America Merrill Lynch Global Industries Conference New York, NY December 10, 2009 William G. Walter Chairman, President and CEO Exhibit 99.1
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 of
Slide 3: FMC Corporation LTM ending September 30, 2009
FMC CORPORATION Revenue: $2,842 EBITDA: $599 Margin*: 21.1% AGRICULTURAL PRODUCTS Revenue: $1,023 EBITDA: $288 Margin*: 28.1% SPECIALTY CHEMICALS Revenue: $749 EBITDA: $186 Margin*: 24.8% INDUSTRIAL CHEMICALS Revenue: $1,075 EBITDA: $180 Margin*: 16.7% FMC Corporation LTM ending September 30, 2009 (
Slide 4: Disciplined Approach to Unlocking Value
Realizing the inherent operating leverage within FMC • Sustaining earnings growth > 10% per year (1) • Maintaining return on capital > 12% Focusing the portfolio on higher growth businesses • Managing Specialty Chemicals and Agricultural Products for growth • Managing Industrial Chemicals for cash M
Slide 5: Leading Market Positions
Leading Market Positions ( 1) Based on 2008 consolidated sales (2) Shared Industrial Chemicals #1 in N.A. Soda Ash #1 in N.A. (2) Peroxygens #1 Globally Carrageenan #1 Globally Carbofuran #2 in N.A. Pyrethroids Agricultural Products #1 Globally Alginates Specialty Chemicals #1 Globally (2) #1 Global
Slide 6: Global Presence
Global Presence Agricultural Products Group Industrial Chemicals Group Specialty Chemicals Group Manufacturing Facilities: Based on 2008 Consolidated Sales North America 34% of Sales Latin America 24% of Sales Europe / Middle East / Africa 28% of Sales Asia / Pacific 14% of Sales
Slide 7: Diversified Customers and End Markets
Non-Cyclical 78% Cyclical 22% Diversified Customers and End Markets Approximately 78% of sales to non GDP-cyclical end markets Long-term relationships with blue chip customers No single customer represents more than 3% of sales Top 10 customers in total represent ~ 12% of sales Food 9% Pharmaceutica
Slide 8: 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: wood pulp, seaweed Low reliance on purchased raw materials - Total raw materials represent ~ 32% of cost of sales in 2008 - No single raw m
Slide 9: Agricultural Products
Agricultural Products Based on 2008 Consolidated Sales of $1.1 billion Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides Strategic Focus: • Selected products, crops and regions • Shifting to significantly shorter innovation cycle • Reducing glob
Slide 10: Agricultural Products Financial Performance
Agricultural Products Financial Performance segment earnings growth in the high teens -- reflecting higher selling prices, continued supply chain productivity improvements, lower raw material costs and lower selling and administrative expense
Slide 11: Specialty Chemicals
Specialty Chemicals BioPolymers – pharmaceutical and food ingredients Lithium focus on specialties – pharmaceuticals and energy storage Strategic Focus: • Growing core market segments • Commercializing new technology platforms • Pursuing financially attractive bolt-on acquisitions Based on 2008 Cons
Slide 12: Specialty Chemicals Financial Performance
Specialty Chemicals Financial Performance segment earnings up in the mid-single digits -- driven by strong BioPolymer results partially offset by lower lithium performance
Slide 13: Industrial Chemicals
Industrial Chemicals Based on 2008 Consolidated Sales of $1.3 billion #1 North American manufacturer of soda ash and peroxygens Low cost, proprietary production technologies Strategic Focus: - Managing for cash generation - Aligning capacity to highest margin markets - Controlling costs and increasi
Slide 14: Industrial Chemicals Financial Performance
Industrial Chemicals Financial Performance segment earnings down approximately percent -- driven primarily by lower volumes across the segment and reduced phosphate selling prices
Slide 15: FMC in Summary
FMC in Summary Great businesses, each with EBITDA >$180 million Sustained double-digit earnings growth (1) • Diverse end-markets, low correlation to economic cycles • Diversified and integrated cost structure • Products aligned with global secular growth trends Strategic and financial flexibility •
Slide 16: FMC Corporation
FMC Corporation
Slide 17: Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
FMC Corporation 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. Some of the segment financial terms are “non-GAAP financial terms” and are defined below. In addition, we have provided reconciliations of non-GAAP terms to the closest GAAP term in the appendix of this presentation.
Slide 20: EBITDA Reconciliation: LTM 9/30/2009
Reconciliation of consolidated income from continuing operations before income taxes (a GAAP measure) to EBITDA (a Non-GAAP measure) EBITDA Reconciliation: LTM 9/30/2009 (Unaudited, in $ millions) LTM 9/30/2009 Income (loss) from continuing operations before income taxes $336.0 Net Income attributab
Slide 21: Reconciliation of Segment Operating Profit to EBITDA
Reconciliation of Segment Operating Profit (a GAAP measure) to EBITDA (a Non-GAAP measure) Segment EBITDA Reconciliation: LTM 9/30/2009 (Unaudited, in $ millions ) LTM 9/30/2009 Segment Industrial Chemicals Specialty Chemicals Agricultural Products Segment Operating Profit (GAAP) $110.3 $154.6 $275.
Slide 22: FMC Corporation
FMC Corporation
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