Fmc Corporation · NYSE:FMC
Fmc — CSFB Meeting, November 30, 2004
33 slides from Fmc's conference presentation, Nov 30, 2004
Slide 1: FMC Corporation CSFB Meeting, November 30, 2004
Exhibit 99.1 Exhibit FMC CSFB November William Corporation Meeting 99.1 G.30, Walter 2004Chairman, President and CEO
Slide 2: Safe Harbor Disclaimer
SafeCompany Disclaimer These Actual Additional Securities The 1 Harbor slides results Exchange information Statement and of undertakes the Act Company accompanying under concerning ofno1934, obligation the may Private asfactors presentation differ amended. toSecurities materially update that may con
Slide 3: Non-GAAP Financial Terms
Non-GAAP These presentation. principle EBITDA ROIC debt, Free 2 Cash Current slides (Return and (Earnings Margin Flow Financial contain Depreciation portion onisis Invested the the Before certain of Terms sum quotient long-term Capital) of and Interest, “non-GAAP Cash Amortization. of debt, EBITDA p
Slide 4: Segment Financial Terms
Segment These and in EBITDA Revenue 3 accounting areslides defined for Financial (Earnings Margin that contain principle below. segment. forTerms Before references a segment In foraddition, that Interest, segment to is the segment we Taxes, quotient have andDepreciation financial provided Depreciati
Slide 5: Diversified chemical company
Diversified ($million, FMC Industrial Specialty Agricultural 13.9% $149.6 $130.6 $112.6 EBITDA: $713.3 $535.6 $809.6 Sales: Margin: 24.4% 4 Corporation $2,053.4 Margin: 21.0% Chemicals Chemicals LTM chemical Products EBITDA: 9/30/04) company $362.7 with Margin: leading17.7% market positions in agric
Slide 6: Our Objectives: Unlocking Value
Our Unlocking Realize Industrial Continued Create Reduce Regain Focus Manage Divest Improve * 5 Before Objectives the greater any an the net Specialty Industrial ROIC restructuring Chemicals portfolio investment growth value business operating debt financial toto and 12 Chemicals in Chemicals $600 o
Slide 7: Continued Strong Performance
Continued Strong Outstanding A Healthy Improvement Generally Steady Raw 6 16%material Year-to-Date top-line growth year-over-year pipeline higher reduction performance costs inin growth Industrial of North demand still in-licensed 2004 inincrease in net American unfavorable, in our for Performance C
Slide 8: On Track to Exceed Our Commitments
OnIncludes 2003 2004 Current Earnings 2.30 1.90 3.06 Annual 20 47 Return 100 1. 10.5 8.9 8.4 2. 3. 7 Before Provided -Track 40 -Actual Guidance2 2.50 3.16 on Reduction Outlook3 per restructuring to Invested $3.4 in Exceed Share January million in($)1 Capital Our Net 2004. and or Commitments Debt $0.
Slide 9: Financial Performance
1. Before 2. 2004E 3. Turn We Sales, 2,600 19981 6.00 EPS3, Sales 8 1998 2004E remain 5.00 in EPS 2,400 $$19991 EPS Financial and millions sales restructuring 4.00 on is 1999 2,200 2000 calculated track 3.00 arePerformance EPS 2,000 calculated 2001 2.00 to deliver were and 1,800 2002 1.00 using othe
Slide 10: Industrial Chemicals Overview
Industrial 2003 Foret Peroxygens Alkali Asia Europe/Middle North South Excludes #1 9 North 6% Consolidated 34% America (Soda American phosphorus Chemicals 19% ash) 51% 8% East/Africa 47% Sales: manufacturer Overview chemicals $770.6 35% sales million of soda at Astaris ash andJVperoxygens of $384.5
Slide 11: Industrial Chemicals Poised for Significant Turn in Earnings
Industrial $’s 250 1998 25 Margin, Capital EBITDA * 10Last 20 Million 200 1999 15 twelve Spending %150 10 Margin Chemicals 2000 5100 months, 0 2001 50 0is2002 $194 9/30/04 Poised $208 2003 for2004* $177 a Significant $133 $130Turn $94in$113 Earnings
Slide 12: Sold-out U.S. Soda Ash
Sold-out U.S. Soda 1.2 1990 Last 2004F 100 Price Effective 11 1.1 95 Peak Bulk Ash 1991 Index 1 U.S. 900.9 Capacity Price 85 1992 0.8 Soda Index 1993 Utilization Util. Ash (1990 1994 Industry 1995 = (%, 1.0)1996 U.S.)1997 1998 1999 2000 2001 2002 2003
Slide 13: Rising Hydrogen Peroxide Prices
Rising Hydrogen 1.2 Last 1994 100 2004F Price Effective 12 1.1 95 Peak 1995 Index Global 1 0.9 90Capacity Peroxide 85 1996 0.8 80 Hydrogen 0.7Util. 1997 75 Utilization 70 Price 0.6 1998 Peroxide Index 1999 (%, (1994=1.0) 2000 Prices North2001 America) 2002 2003
Slide 14: Turnaround for Astaris
Turnaround Domestic Annualized for Sold-out Driven Astaris 13 2005, by deleveraging isEuropean which debt improvement capacity savings In free, Phosphorus willSTPP closures and of be to$40 impact partially resulting keepwell market Chemicals million andcash decreased offset from payments are flowin
Slide 15: FMC Corporation CSFB Meeting
FMCH. CSFB November Ted Vice President Corporation Meeting Butz30, 2004 and Group Manager Specialty Chemicals
Slide 16: Specialty Chemicals Overview
Specialty 2003 Lithium BioPolymer Asia North South Adds BioPolymer: One Lithium: 15 of 15% Consolidated structure, America two 29% Chemicals global, 71% 41% 8% texture integrated Sales: Europe/Middle Overview and$515.8 stability manufacturers million to East/Africa food Acts Focus 36% as on a binder
Slide 17: Specialty Chemicals Platforms Drive Steady Growth
Platforms $’s 140 1998 M 0 5 10 15 20 25 30 EBITDA * 16Last argin, Million 120 1999 twelve % 100 Capital in2000 Specialty 80 months, 60 2001 Spending 40 2002 20 9/30/04 Chemicals 0 EBITDA 2003 2004* Drive Margin Steady $115 $110 Growth $127 $122 $116 $132 $131
Slide 18: FMC BioPolymer
* Last FMC LTM* ~$385 Balanced Leading Excellent Personal 7% Food North Employees 17 Other 17% BioPolymer America twelve 2004 million Positions Asia Portfolio Global Latin 900 Sales: months, Care 42% Manufacturing America Coverage In Segmentation of Alginates Cellulose All Growth 9/30/04 Product &Bu
Slide 19: Strength and Market Leadership
Strength MCC Market FMC Share $185 $335 $235 # 5.5 Scale*: Leadership 2.2 * 0.95X 1821 X FMC FMC BioPolymer Carrageenan Position: market Size in All (M): share Core Market Alginates Product divided Positions Areas by the market share of the largest competitor in each product line
Slide 20: Lithium: Solid Growth
Lithium: Solid Strong Significant Key 19 products: growth growth Repositioned growth inlithium inpolymer pharmaceutical in energy metals, inorganics, formarkets Growth storage butyllithium, synthesis of lithium 3-6% of over metal, of specialty 10% 7-9% lithium organometallics cobalt oxide Uses: Uses
Slide 21: Specialty Chemicals Outlook is Promising
Servingposition Strong Specialty 20 attractive Chemicals with endindustry-driving Outlook marketsis Promising customers Leading product positions Coordinated global capabilities Proven track record of performance
Slide 22: FMC Corporation CSFB Meeting
FMC CSFB November W. Senior Kim Corporation Meeting Vice Foster 30, President 2004 and Chief Financial Officer
Slide 23: Agricultural Products Overview
Agricultural 2003 Herbicides Asia North Insecticides South Proprietary, Key Focused The 22 depth crops: Consolidated America innovation and 15% cotton, branded 17% Products breadth Europe/Middle 32% 24% 76% corn, Sales: (R&D insecticides Overview ofrice, partnerships $640.1 is ~10% cereals, 36% and
Slide 24: Ag Products Has Delivered Significant Growth
AgLast $’s 160 1998 $106 30 Margin, EBITDA * 23 25 Million Products 140 1999 $87 20 twelve %120 15 Capital $114 2000 10 Has 100 months, $101 52001 Spending 80 0 Delivered 60 $99 2002 9/30/04 40$111 20 EBITDA Significant 2003 0$150 2004* Margin Growth
Slide 25: Refocused Strategy
Flonicamid Newly-licensed Refocused Significant Total Efficiency Improved New Niche Growth 24 labels outsourcing market from product improvements Strategy cost in insecticide newly focus North savings acetamiprid savings mix Yielding (row licensed America forcrops in of sucking selling chemistry $50
Slide 26: Longer-term Growth: R&D Pipeline
Longer-term A FMC 1990 Focus Discovery 2000 Field-Level 10 25robust 1995 2001 R&D Insecticides pipeline Fungicides 2000 2002 Evolution Insecticide Growth 2005 2003 ofHerbicides insecticide-active inPlant 2004 Chemistries Insecticides Growth Nematicides Regulators chemistries Insecticides PPOis expec
Slide 27: In Summary
In Summary Great Industrial Steady Low 26 capital businesses, growth Chemicals expenditure in the eachearnings balance generating requirements ofarethecurrently EBITDA portfolio$50 of over million $100below million mid-cycle and $100 million below peak
Slide 28: Significant Cash Flow Improvement
Significant $millions EBITDA1 Pre-Tax Capital Cash 90 Environmental Pocatello Phosphorus-Related: Keepwells 1. 2. 27 Calculated Includes Taxes Expenditures Interest2 25 Cash $365 36 $82 Improvement 15 <20 using —------Relatively 25 Flow million --------Increasing---------- — <10 84 ------Relatively
Slide 29: FMC Corporation
Fic FMC Corporation
Slide 30: Appendix: Reconciliation of diluted EPS
Appendix: Reconciliation (Unaudited, [As 2003 Diluted 29 of September restructuring tax income Earnings effect in millions) ofper from 2003 of 30, share Reconciliation restructuring and continuing 2004] diluted other beforeearnings charges restructuring operations and other per per share per share c
Slide 31: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation (Unaudited, [As Income LTM income in Restructuring Add: Interest Affiliate Depreciation EBITDA 30 accounting of September taxes (loss) expense, Interest (Non-GAAP) EBITDA inand principle and from millions) ofExpense net amortization last cumulative 30, other continuing Recon
Slide 32: Appendix: Reconciliation of ROIC
Appendix: Reconciliation expense (Unaudited, Income Actual 2003 Interest Restructuring Tax 2-Point Short-term Current Long-term Shareholder’s $1,673.0 ROIC (1) (2) 31 -effect mid numerator (denominator Average Using (loss) Expense portion (Non-GAAP) $1,638.5 point of ROIC debt Debt inrestructuring I
Slide 33: Appendix: Reconciliation of Segment EBITDA
Appendix: Reconciliation (Unaudited, [As Segment Depreciation Add: LTM 32 ofEBITDA segment September Industrial Segment inand operating millions) of (Non-GAAP) amortization last 30, Chemicals EBITDA twelve 2004] profitmonths $112.6 Reconciliation Specialty (GAAP) 64.9 31.8 $130.6 (LTM) $47.7 Chemica