Fmc Corporation · NYSE:FMC
Fmc — UBS Grass Roots Chemical Conference 2004
21 slides from Fmc's conference presentation, Feb 11, 2004
Slide 1: FMC Corporation: Catching the Asian Wave
FMC Corporation UBS Grass Roots Chemical Conference: “Catching the Asian Wave” February 10th, 2004 Marty Kisliuk Director, Global Supply Chain & Asia Agricultural Products Group
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 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, we have provided reconciliations of non
Slide 4: Sales and EBITDA by segment
Sales: $1,921.4 EBITDA: $ 309.3 Margin: 16.1 % Sales: $770.6 EBITDA: $ 93.9 Margin: 12.2 % Sales: $515.8 EBITDA: $ 132.2 Margin: 25.6 % Sales: $640.1 EBITDA: $ 111.3 Margin: 17.4 %
Slide 5: Agricultural Products: Group Overview
Agricultural Products: Group Overview 2003 Segment Sales: $640.1 million Herbicides 24% Insecticides 76% Asia 15% North America 36% South America 32% Europe/Middle East/Africa 17% Manufacturer of proprietary, branded insecticides and herbicides Key crops: cotton, corn, rice, cereals, fruits and vege
Slide 6: The Conventional Crop Protection Market Has Declined 1.3% CAGR Since 1996
The Conventional Crop Protection Market Has Declined 1.3% CAGR Since 1996 Global Agrochemical Market $Billion Conventional Crop Protection Includes Biotechnology Source: Phillips McDougall – AgriServices, FMC
Slide 7: Off-Patent Sales Increase
Off-Patent Sales Increase Source: FMC; Phillips McDougall
Slide 8: Multi-faceted Plan To Reduce And Variabilize Manufacturing Costs
We Have A Multi-faceted Plan To Reduce And Variabilize Manufacturing Costs . . . We are midway through this cost reduction initiative It is based on a proven, low cost manufacturing and process development strategy It is not just where, but with whom and how The supply chain has and will continue to
Slide 9: The Supply Chain For AI's & Intermediates Has Changed
The Supply Chain For AI’s & Intermediates Has Changed FMC US Zeta-cype Clomazone Cypermethrin Permethrin Bifenthrin DVE 7OH Pentenoate Sulfentrazone MAC TMOA Site A Toller US BFA Site D Carfentrazone Site C Carbofuran Carbosulfan Site B FMCAPI Carbofuran Cadusafos Site E Site F Now Zeta-cype Clomazo
Slide 10: FMCAPI Operates In The Same Countries, And For The Same Reasons As Others
FMCAPI Operates In The Same Countries, And For The Same Reasons As Others PRC, India, Mexico primarily – Home of the generics They have developed chemical industries – Technical talent – Raw material availability – Infrastructure Available capacity Able and willing partners Low cost inputs and servi
Slide 11: Significant Product Cost Reductions
Significant Product Cost Reductions AI -1 AI -2 AI -3 AI—4 AI—5 AI—6 AI—7 AI—8 AI—9 AI—10 AI—11
Slide 12: Product Cost Structure Is Being Variable-ized
Product Cost Structure Is Being Variable-ized Change In % of Product Cost Other Variable Cost Materials Fixed Cost D&A
Slide 13: Five FMCAPI Tollers Do Steps With $41 Million Of Assets
Five FMCAPI Tollers Do 34 Steps With $41 Million Of Assets 34 Total Chemical Steps Prod A AI #10 Interm C AI #8 AI #4 Interm B AI #9 Interm A AI #6 AI #2 $41M Gross Toller Assets Toller 5 Toller 1, PRC Toller 2, PRC Toller 3, PRC Toller 4 . . and FMCAPI invests $12 million to use these $41 million o
Slide 14: Manufacturing Assets Can Be Significantly Less
Manufacturing Assets Can Be Significantly Less Physical Manufacturing Assets
Slide 15: As A Result, Capital Investment Is Reduced
As A Result, Capital Investment Is Reduced
Slide 16: Efficient Models Drive Staff Reductions
Efficient Models Drive Staff Reductions Global Supply Chain Staff Excludes O/S Formulations
Slide 17: Each Partner Contributes In The FMCAPI Model
Each Partner Contributes In The FMCAPI Model Contract Manufacturing By FMCAPI Factor A Factor B Factor C Factor D Factor E Factor F Factor G Factor H Factor I Factor J Factor K Factor L Includes Elements Of : Design, Technology, Investment, Improvement, Operations, Support, Regulatory, Logistics, Ra
Slide 18: Most Value Is Added In US—More Can Shift To PRC
Most Value Is Added In US—More Can Shift To PRC Value-Added By Country—% Of COGS Brazil 10% 2% US 54% China 14% Japan 6% Europe 5% India 4% Mexico 5% 2% US 44% China 22% Japan 6% Europe 5% India 4% Mexico 6% Brazil 11% Possible
Slide 19: Superb Project Management Is Key To Implementing The FMCAPI Model
Superb Project Management Is Key To Implementing The FMCAPI Model
Slide 20: FMCAPI – Our New Manufacturing Paradigm
FMCAPI – Our New Manufacturing Paradigm Buy many services & from low-cost sources Be selective in creating partnerships Back-integrate; use excess capacity Build/use local resources, many local methods, knowledge Core staff: experience, hands-on, external focus Always: Make the risk acceptable Minim
Slide 21: Thank You
FNC THANK YOU Grass Roots Chemical Conference - New Orleans