Fmc Corporation · NYSE:FMC
Fmc — Non-Deal Roadshow (November 2004)
19 slides from Fmc's roadshow presentation, Nov 10, 2004
Slide 1: FMC Corporation Marketing Trip
FMC Corporation Marketing Trip Cleveland, Ohio November 10, 2004 W. Kim Foster SVP and Chief Financial Officer
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: Use of Non-GAAP Terms
Use of Non-GAAP Terms These slides contain certain “non-GAAP financial terms” which are defined below and on FMC’s Investor Relations web site (http://ir.fmc.com) in the Glossary of Financial Terms section. In addition, in the Conference Calls and Presentations section of the web site, we have provi
Slide 4: FMC Corporation
FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ million, LTM 9/30/04) FMC Sales: $2,053.4 EBITDA: $362.7 Margin: 17.7% Industrial Chemicals Specialty Chemicals Agricultural Products Sales: $809.6 Sales: $535.6 Sa
Slide 5: Our Objectives
Our Objectives Unlocking value and creating a faster growing FMC Realize the operating leverage inherent within FMC Sustained double-digit growth in earnings* Industrial Chemicals recovery Continued growth in Specialty Chemicals and Agricultural Products Create greater financial flexibility Reduce n
Slide 6: Strong Year-to-Date 2004 Performance
Strong Year-to-Date 2004 Performance Outstanding performance in Agricultural Products A 16% year-over-year increase in sales Even stronger earnings growth of 67% Healthy pipeline of in-licensed and newly discovered compounds Improvement in Industrial Chemicals Generally higher North American selling
Slide 7: On Track to Exceed Our Commitments
On Track to Exceed Our Commitments 2003 Actual 2004 Guidance** Current Outlook Earnings per Share ($)* 1.90 2.30—2.50 3.06—3.16 Annual Reduction in Net Debt ($ millions) 47 20—40 100 Return on Invested Capital (%) 8.4 8.9 10.5 * Before restructuring and other charges ** Provided in January 2004
Slide 8: Turn in Financial Performance
Turn in Financial Performance We remain on track to deliver a sustained multi-year recovery in sales and earnings Sales, $ millions 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 1998* 1999* 2000 2001 2002 2003 2004E** 6.00 5.00 4.00 3.00 2.00 1.00 - EPS, $ Sales EPS * 1998 and 1999 EPS were
Slide 9: Industrial Chemicals to be the Primary Driver of Higher Earnings
Industrial Chemicals to be the Primary Driver of Higher Earnings Millions $250 $200 $150 $100 $50 $0 1998 1999 2000 2001 2002 2003 2004* 25% 20% 15% 10% 5% 0% Margin EBITDA Capital Spending EBITDA Margin (%) * Last twelve months, 9/30/04 $194 $208 $177 $133 $130 $94 $113
Slide 10: Sold-out U.S. Soda Ash Industry
Sold-out U.S. Soda Ash Industry U.S. Bulk Soda Ash Price Index (1990 = 1.0) 1.2 1.1 1 0.9 0.8 Effective Capacity Utilization (%, U.S.) 100 95 90 85 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004F Price Index Effective Capacity Util. Last Peak
Slide 11: Rising Global Hydrogen Peroxide Prices
Rising Global Hydrogen Peroxide Prices Hydrogen Peroxide Price Index (1994=1.0) 1.2 1.1 1 0.9 0.8 0.7 0.6 Last Peak Effective Capacity Utilization (%, North America) 100 95 90 85 80 75 70 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004F Price Index Effective Capacity Util.
Slide 12: Turnaround in Phosphorus Chemicals
Turnaround In Phosphorus Chemicals Domestic improvement resulting from Astaris restructuring Annualized savings of $40 million are in place (a $20 million benefit to FMC’s operating profit) Astaris capacity reductions have tightened domestic supply Price increases of 4-7 percent are expected for 200
Slide 13: Platforms in Specialty Chemicals to Drive Top-line Growth
Platforms in Specialty Chemicals To Drive Top-line Growth Millions $140 $120 $100 $80 $60 $40 $20 $0 1998 1999 2000 2001 2002 2003 2004* Margin 30% 25% 20% 15% 10% 5% 0% $115 $110 $127 $122 $116 $132 $131 EBITDA Capital Spending EBITDA Margin (%) * Last twelve months, 9/30/04
Slide 14: Strong Market Positions in Growing Markets
Strong Market Positions In Growing Markets Leading biopolymers supplier Strong franchises in food ingredients and pharmaceutical formulation markets End-market growth of 3-6 percent per year Global leader in all three product lines Leading lithium producer in high value markets Specialty polymers: 2
Slide 15: Agricultural Products to Remain Strong
Agricultural Products to Remain Strong Millions $160 $140 $120 $100 $80 $60 $40 $20 $0 1998 1999 2000 2001 2002 2003 2004* Margin 30% 25% 20% 15% 10% 5% 0% $106 $87 $114 $101 $99 $111 $150 EBITDA Capital Spending EBITDA Margin (%) * Last twelve months, 9/30/04
Slide 16: Refocused Strategy Yielding Benefits
Refocused Strategy Yielding Benefits Significant cost savings Total outsourcing savings of $50 million since 1999 Supply chain redesign in North America and Mexico Efficiency improvements in selling and development organizations Improved product mix New labels in North America and Europe Niche marke
Slide 17: Significant Improvement to Cash Flow
Significant Improvement to Cash Flow $ millions Cash Flow Components 2004 2005 2006 2007 EBITDA* $365 Increasing Pre-Tax Interest** 84 Decreasing Capital Expenditures 80 ~90 ~90 ~90 Cash Taxes 15 Relatively Flat Environmental 25 Relatively Flat Phosphorus-Related: Pocatello 25 <20 <10 <10 Keepwells
Slide 18: In Summary
In Summary Great businesses, each generating EBITDA of over $100 million Industrial Chemicals earnings are currently $50 million below mid-cycle and $100 million below peak Steady growth in the balance of the portfolio Low capital expenditure requirements Significantly improving free cash flow
Slide 19: FMC Corporation
FMC FMC Corporation