Fmc Corporation · NYSE:FMC
Fmc — Lehman Brothers 2004 High Yield Bond & Syndicated Loan Conference
25 slides from Fmc's conference presentation, Mar 23, 2004
Slide 1: FMC Corporation – Lehman Brothers High Yield Bond & Syndicated Loan Conference
FMC Corporation Lehman Thomas March 23, C. Brothers 2004 Deas, Jr. 2004Vice High President Yield Bond & Treasurer & Syndicated Loan Conference
Slide 2: Safe Harbor Statement 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: Use of Non-GAAP Terms
Use ofslides These Conference Following interest Adjusted Revenue. Segment segment. 2 Non-GAAP income EBITDA EBITDA isCalls contain a list andand of is Margin (Adjusted Margin Terms expense, certain the some Presentations sum is of is“non-GAAP the income the Earnings of these Income quotient quotien
Slide 4: FMC Corporation
Diversified ($ FMC Adj. Industrial Chemicals Sales: EBITDA: Margin: 3 EBITDA: Corporation $1,921.4 $770.6 16.7% 12.2% million, Specialty $93.9 Chemicals chemical Sales: $321.2 Margin: EBITDA: 12/31/03) Agricultural $515.8 company Products 25.6% $132.2 Sales: with Margin: EBITDA: $640.1 leading 17.4%
Slide 5: FMC Strengths
FMC Strengths Leading Global Diversified Focused Strong Proven 4 credit presence management market R&Dbusiness and profile and integrated positions strong mix withand applications extensive costhigh-quality structure industry expertise customer experience base
Slide 6: Industrial Chemicals Group Overview
Industrial 2003 Alkali Peroxygens Foret North Latin Europe/Middle Asia Excludes #1 Backward Low-cost, 5 North 6% Consolidated America 34% America (Soda American phosphorus Chemicals: proprietary integration 19% ash) 8% 51% East/Africa 47% Sales: manufacturer chemicals Group into production $770.6 na
Slide 7: Industrial Chemicals Performance 2001-2003
Industrial ($ $822 $753 $771 Capital Revenue EBITDA – 6 ‘01-’02 Capacity Continued 2003 Hydrogen Lower 16.2% 17.3% 12.2% effective Expenditures affiliate in Margin recession, Chemicals: mothballs millions) peroxide $87 $28 $39 productivity capacity 2001 2002 2003 earnings overcapacity price and ‘01-
Slide 8: Outlook: Domestic Hydrogen Peroxide
Outlook: Domestic Last Price Effective 7 Peak Index Domestic Capacity prices increased Util. Hydrogen 5% Peroxide in 2003 (versus year-end 2002) and are expected to increase another 5% in 2004
Slide 9: Outlook: Increasing Soda Ash Prices
Outlook: Increasing Last Price Effective 8 Peak Index Domestic Capacity demand Util. and Sodatight Ashsupply have led to the first domestic price increase in several years
Slide 10: Outlook: Astaris Improvement
Outlook: Gradual Significant De-leveraging – 9 Exit ofimprovement Product Substantial Solutia, Expectation Possiblecommodity Astaris our transfers improvement refinancing restructuring improvement JV of and $40 partner, refinancing and STPP million underway ofplant in at Astaris provided Astaris: se
Slide 11: Outlook: European Peroxygens
Outlook: European Steady Phosphorus After – 10Rhodia’s Foret Price Hydrogen Peroxide a recovery strong has Foret Industrial price shutdown recovered chemicals peroxide 2003, – across is increase beginning Chemicals peroxygens of demand STPP inall STPP aofproduct slow volume 8% growth facility in rec
Slide 12: Specialty Chemicals Group Overview
Specialty 2003 BioPolymer Lithium North Latin Europe/Middle Asia BioPolymer: Lithium: – energy 11Acts Market Focus 15% Consolidated America America as storage on 29% –aleader Chemicals: One binder specialty 71% – 8% Adds devices 41% East/Africa of in&two every Sales: disintegrant structure, products
Slide 13: Specialty Chemicals Performance 2001-2003
Specialty ($ Capital Revenue 2003 $516 25.6% 2002 $24 $488 23.8% 2001 $28 $472 25.9% – 12BioPolymer Decline Lithium Productivity Expenditures in Chemicals: in refocused millions) lithium growth initiatives sales inEBITDA ‘01-’03 of‘03 5% result during onper Performance specialty Margin inyear ‘01-’0
Slide 14: Outlook: Solid Growth in Specialty Chemicals
Outlook: Solid BioPolymer Leading – 13Technology Leading Industry Globally Disproportionately Specialty Pharmaceutical Energy growth lithium Specialty storage: global leading integrated polymers: franchises driven investments chemistry position synthesis: 17% formulation Chemicals by higher and 28%
Slide 15: Agricultural Products Group Overview
Agricultural 2003 Insecticides Herbicides North Latin Europe/Middle Asia Manufacturer Key FMC – 14The Focused Strategy crops: 15% Consolidated America differentiated America depthof innovation 24% cotton, 76% and Products: outsourced of 32% 36% East/Africa breadth proprietary, corn, Sales: by:(R&D G
Slide 16: Agricultural Products Performance 2001-2003
Agricultural ($ Capital Revenue 2003 $16 17.4% $640 2002 $21 16.1% $615 2001 $22 15.4% $653 – 15Declining ‘01 Strong Significant 2003 Margin exit growth Expenditures underlying in improvement from millions) global Products: refocusing in pre-emergent Brazil, chemical ‘01-’03 EBITDA ‘01-’03 driven an
Slide 17: Outlook: Agricultural Products Earnings and Productivity
Outlook: Earnings Productivity Near-term Long-term – 16Manufacturing SG&A New Global Novel Many Several Commercial labels chemistries ISK supply alliance leverage Agricultural growth ofgrowth growth these to chemistry inopportunity result core chain through outsourcing with across novel from resulti
Slide 18: FMC Financial Objectives
Financial FMC Continued No Foreign Maximize Reestablish 17 dividends share is committed currency repurchases Objectives liquidity debt a full reduction and investment-grade to andenergy strengthening address through hedging near-term use rating itscontracts ofcredit cash maturities profile from to r
Slide 19: Significant Other Collateral
Significant ($ Other Collateral Second First Principal Debt Fixed FMC Total (1) (2) (3) (4) (5) (6) domestic 18 As Limited Excess Consists Includes Lien $Wyoming Assets First of 612 Lien 12/31/03. in Properties real $872 Secured value Lien Collateral to millions, current of Secured (5) property 10%
Slide 20: Credit Statistics
Credit 12/31/2003 Interest Capital Net Adj. (Adj. 1) principle 2) 3) 19 The Interest Long-term Debt EBITDA EBITDA—CapEx) Statistics sum Expenditures Expense and /(3) expense Adj. of1,001 Depreciation debt /(1) Income EBITDA Interest (2) $321 net net 84 87 $43 from ofExp. 3.1x /amortization million I
Slide 21: Capital Structure and Debt
Capital 12/31/02 $ Debt ($—millions) Term 10.25% Public Other Industrial Foreign Restricted Cash Stockholders’ Total Net 20250 Debt Debt/Total 89.6 Debt Cash Capital Loan million Public Debt Structure Notes Debt 12/31/03 $Revenue (32.6) Cash $902.8 Due due 1,267.0 364.2 & (Total 64.3 Revolving Equit
Slide 22: Lengthened Our Maturities
Lengthened Our $69 63 3 292 78 357 248 212004 2006 2005 2008 million 2007 2009 2010 successful & Maturities Beyond refinancing in 2002 addresses our maturity profile
Slide 23: Free Cash Flow Outlook
Free Trough Capital Strong – 22Astaris Mothballed De-bottlenecking Manufacturing Last cash major Cash 2004 expenditures adjusted keepwells flow cash Flow component capacity generation EBITDA outsourcing flow ofshould ~$40 partially ofofPocatello million be over $300 relatively offset $320 million re
Slide 24: Strategic Objectives
Strategic Unlocking Realize Create Focus – 23Achieve Drivethe Reduce Regain Grow Manage Divestgreater the cost Specialty underperforming Objectives anet portfolio Industrial peak value full operating improvements debt financial investment Industrial and Chemicals toon Chemicals $600 creating leverag
Slide 25: FMC Corporation
+ ivic FMC Corporation
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