Fmc Corporation · NYSE:FMC
Fmc — Bear Stearns 13th Annual Global Credit Conference 2004
26 slides from Fmc's conference presentation, May 20, 2004
Slide 1: FMC Corporation Bear Stearns 13th Annual Global Credit Conference
Exhibit 99.1 FMC19, Bear May Thomas Stearns Corporation C. 2004 Deas, 13thJr. Annual Vice President Global Credit & Treasurer Conference
Slide 2: Safe Harbor Statement
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 and Glossary of Financial Terms
Use ofCurrent These Conference Following interest Adjusted Segment segment. ROIC debt, 2 slides (Return Non-GAAP income EBITDA EBITDA isCalls contain aportion on list andand Invested of is Margin (Adjusted Margin Terms expense, certain the some of Presentations long-term sum is Capital) of is“non-GA
Slide 4: FMC Corporation: Diversified chemical company
Diversified ($ FMC Industrial Specialty Agricultural Sales: 3 million, Corporation $1,921.4 $770.6 $515.8 $640.1 Chemicals Chemicals 12/31/03) chemical Products EBITDA: Adj. EBITDA: company $93.9 Margin: $132.2 $111.3 with $321.2 Margin: leading Margin: 12.2% 17.4% 25.6% market 16.7% positions in in
Slide 5: FMC Strengths
FMC Strengths Leading Global Diversified extensive 4 presence market industry business positions experience mix and high-quality customer base Diversified and integrated cost structure Focused R&D and strong applications expertise Strong credit profile Proven management with
Slide 6: Industrial Chemicals Overview
Industrial 2003 Foret Alkali Peroxygens Asia Europe/Middle North South Excludes #1 5 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 $384.5
Slide 7: Industrial Chemicals Performance
Industrial ($ 900 2001 16.2% 17.3% 12.2% 30% Capital Revenue ‘01-’02 Hydrogen 6 in800 25% millions) 2002 $87 $28 $39 Expenditures recession, 700 Chemicals 20% peroxide 2003 $753 $771 600 15% $822 500 overcapacity price 10% –EBITDA 400 ‘01-’03 increases 5% 3000% 200 Margin Performance and100 inprice
Slide 8: Tight Soda Ash Market
Tight Contract Last U.S. Soda 1.2 1998 1997 1996 1995 1994 1993 1992 1991 1990 2003 2002 2001 2000 Price Effective 100% 7 1.1 Peak Bulk Ash 1999 2004F Index Domestic 95% 1 caps 0.9 Capacity Price 90% 0.8 have Index Soda 85% Util. limited Ash (1990 Market 2004’s = 1.0)price increase, but are expected
Slide 9: Stabilizing Chinese Soda Ash Export Market
Stabilizing We Growth Demand Domestic There Higher Salt, ash 8 expect exports a are key costs of of47 Chinese the ingredient Export 11 has are soda Chinese impact million risen limiting ash pricing Soda significantly in of producers, metric soda Ash synthetic excess Chinese is ash at Market tons or
Slide 10: Rising Hydrogen Peroxide Prices
Rising Higher Last Hydrogen 1.2 1994 1996 2000 1999 1998 Price 2004F 2003 2002 100 Effective 9 1.1 95 Peak 1995 1997 2001 Index Domestic 1capacity 90 0.9 Capacity Peroxide 850.8 80 utilization 0.7 75 Hydrogen Util. Utilization 70 Price 0.6 Index isPeroxide driving (%, (1994=1.0) North higher Prices
Slide 11: Industrial Chemicals: Peroxygens and Phosphorus Outlook
Industrial Steady After Hydrogen Phosphorus Rhodia’s 10 a recovery strong shutdown Chemicals peroxide chemicals 2003, across of demand peroxygens Improvement Rhouen innearly a slow growth all STPP recovery expected ofinof Foret’s facility Europe 4%driven to per product has continue year improved by
Slide 12: Astaris Turnaround
Turnaround Significant Plant Annualized North Astaris Chinese Broad-based De-leveraging Expectation 11 closures American capacity P4 restructuring supply savings In of price and and Domestic $40 reductions market product increases refinancing has million of $40-50 greatly dynamics at Phosphorus line
Slide 13: Specialty Chemicals Overview
Specialty 2003 Lithium BioPolymer Asia North Europe/Middle South Adds Lithium: BioPolymer: products—pharmaceuticals 12 15% Consolidated structure, America 29% Chemicals 71% 41% 8% East/Africa texture Sales: Overview and$515.8 stability 36% and energy million to food storage Actsdevices as a binder &
Slide 14: Specialty Chemicals Performance
Specialty ($ 2001 25.9% 23.8% 25.6% 30% Capital Revenue BioPolymer specialty 13 in 25% millions) 2002 $472 $488 $516 Expenditures markets Chemicals 20% 2003 $28 $24 CAGR $600 15% including of 500 10% –EBITDA ‘01-’03 5%400 5% driven pharmaceutical 300 0% Performance Margin 200 by food 100 ingredient
Slide 15: Specialty Chemicals: Steady Growth Outlook
Steady Growth Driven BioPolymer Disproportionately Leading Specialty 14 byglobal lithium polymers: leading franchises position Outlook chemistry positions higher 28%inin for of food share markets position Specialty in sales enabling ingredients with growing growing with market Chemicals chemistries
Slide 16: Agricultural Products Overview
Agricultural 2003 Herbicides Insecticides Asia Europe/Middle North South Proprietary, Key Focused The 15 depth crops: 15% Consolidated America innovation and 24% cotton, branded 76% Products breadth 36% 32% East/Africa corn, Sales: (R&D insecticides Overview ofrice, partnerships $640.1 is17% ~10% ce
Slide 17: Agricultural Products Performance
Agricultural ($ 15.4% 16.1% 17.4% 2001 25.0% Declining reductions Capital Revenue 16 in millions) 2002 $22 $21 $16 20.0% Expenditures global in 2003 $615 $640 Products 2002 15.0% $700 chemical 2003 600 10.0% EBITDA – ‘01-’03 growth 500 crop 5.0% 400 Margin protection Performance in300 0.0% Brazil, 2
Slide 18: Agricultural Products: Very Strong Outlook
Very Strong Driven Improving Rising Increasing Significant Manufacturing Network Focused, Label Discovery 17 expansions global byof successful robust efforts global cost global Outlook crop initiatives savings crop competitiveness have in farm partnerships prices innovation: both for markets resulte
Slide 19: FMC Financial Objectives
Financial FMC Continued No Foreign Maximize Reestablish 18 dividends share is committed currency repurchases Objectives liquidity debt a full reduction and investment-grade to andenergy strengthening address through hedging near-term use rating itscontracts ofcredit cash maturities profile from to r
Slide 20: Significant Excess Collateral Value
Significant ($ Other Second First Principal Fixed Collateral (1) (2) (3) (4) (6) debt. 19 in As Excess Limited Includes Consists Lien millions, Assets First ofLien 12/31/03. Properties $911 Secured Debt value Lien Collateral to current of Secured (6) 10% as the Assets $366 over of$355 Debt of 3/31/0
Slide 21: Credit Statistics
Credit Adj. 12/31/2003 Net (1) impairments (2) (3) 20 Total Income Interest Debt EBITDA Statistics debt / Adj. (loss) expense and net (1) EBITDA gain of from $321 net $43 on continuing Interest ofmillion divestitures 3.1x amortization Adj. Expense ofoperations EBITDA cash of of business that (2) dis
Slide 22: Capital Structure
Capital 12/31/2002 ($ Debt 218.7 Foreign Net Fixed 21 - millions) Debt Debt/Total $250 218.7 rate Structure Cash $902.8 % million 12/31/2003 Other 64% 44.6 Capital $856.3 62% Public Revolving 43.954.0% 58% 63.9 3/31/2004 $920.4 Domestic Total Credit 52.3%Cash Debt Agreement 53.5% $364.2 386.3 222.7
Slide 23: Lengthened Our Debt Maturities
Lengthened Our Debt 400 2004 2010 6 2 3 22 248 357 783 350 92 successful Maturities 2005 & Beyond 300 2006 Maturities 250refinancing ($ $69 2007 200 millions) million 150 2008 100 in2009 2002 50 0 addressed our maturity profile
Slide 24: Our Cash Flow Highlights
Our Cash EBITDA* Legacy * Adjusted ** 23Adjusted Includes legacy Flow Cash Environmental EBITDA ~$321 EBITDA Highlights cash $82 Outflows million outflows Increasing forfor 2004 full-year 25 of the will ~25 GAAP 2005 period Pre-Tax be ~25 2004. substantially 2006 interest ending ~25 Interest** 2007
Slide 25: Strategic Objectives
Strategic Unlocking Realize Double-digit Create Net Focus Manage minimum 24 debt the greater the Specialty reduction Objectives portfolio byvalue operating growth 2006 financial and Chemicals of onin creating leverage $300 higher earnings flexibility million and growth ainherent faster before Agricu
Slide 26: FMC Corporation
+NiIC FMC Corporation
FMC — Bear Stearns 13th Annual Global Credit Conference 2004 on 6ix