Fmc Corporation · NYSE:FMC
Fmc — Investor Day (December 2010)
79 slides from Fmc's investor day presentation, Dec 2, 2010
Slide 1: Vision 2015: The Right Chemistry
Exhibit 99.1 Exhibit VISION THE RIGHT 99.1 2015CHEMISTRY
Slide 2: Pierre Brondeau, President, CEO and Chairman
VISION Pierre Brondeau, 2015 President, CEO and Chairman
Slide 3: Vision 2015
Vision Launching Strong Proven return 17% Driving Growing Goal CAGR ofon 2015 Recent record maintaining Revenue Leadership assets from Total of Financial and asuperior and Shareholder Position substantial top Positions EBIT quartile and financial of Growth, Operational Strength Increasing Return fre
Slide 4: Our Vision
Our Vision Sales Sustained Significantly Strong Premium ofcash $5+B TSR mid-teens for generation greater and performance FMC EBIT return in earnings with 2015 of on $1.2+B disciplined stability invested capital cash deployment
Slide 5: Growing Sales to $5B by 2015
Vision Growing 2015 Organic Continued Attractive Innovation—rich External Focused, product Strategy external No planFive and to Growth growth reduces Growth Leadership disciplined end growth add Key technology markets a drives Elements new risk increases pipeline in strategy Positions leadership nor
Slide 6: Innovation-driven organic sales growth
Innovation Sales 2009 2.8 4.2 Growth Other Portfolio Primarily applications APG ($B) Growth From highly products SCG —for Innovation (1) Rich existing levered ICGderived Pipeline 2015 to products faster Organic from Delivers technologies growing Industrial >50%(>>GDP) Chemicals ofalready Organic end
Slide 7: Focused external growth strategy
Externalpotential Focused Agricultural Strengthen Product Disciplined Proactive, growth line Strategy Growth aligned organic Approach and Products RDE Balanced Strategy with growth expansion clear evaluation platforms strategic Industrial by metrics intent acquiring Chemicals inNo selected large new
Slide 8: Increasing reach in rapidly developing economies
Vision 2015 Increasing Invest Focus Growing RDEs Latin Products’ Asia Central —America on deliver in Five and targeting human Leadership where Rapidly leadership Our Key Eastern >50% —Reach the resources Elements investments leveraging Developing growth Europe, of position Positions FMC and is… Turk
Slide 9: Capturing value of common ownership
Visioninfrastructure Growing 2015 Increasing Capturing Shifting Acting Global Procurement RDE Five Supply astoLeadership “One Value Our balanced KeyChain Reach FMC” of Elements Common centralized Positions realizing Ownership /efficiencies decentralized while model maintaining to better strong lever
Slide 10: Proactively managing portfolio
Vision Growing 2015 Increasing Capturing Proactively All Higher current Five margins, Leadership Value Our businesses Managing KeyReach stronger of Elements Common Positions well Portfolio cash positioned Ownership generation, for sustained and greater growth earnings Phosphates stability resolution
Slide 11: FMC Agricultural RONA
FMC Agricultural 10 RONA (%) 35 25 5 -(1) 0 S&P FMC Cost (2) RONA 35 30 where Has Specialty10 Unrivaled Pre-Tax 2009-12 = 30 Agricultural Industrial 2009 20 30 Specialty 5RevenueRONA 0Revenue 5of 500capital1 Cost Fwd 15($MM) of Rev available. Portfolio 10Products 15Chemicals Industrial capital Chemi
Slide 12: Key themes by business
VisionAsh Agricultural 2015 Maintaining Increasing Specialty Food Pharmaceuticals Industrial Soda investing Ingredients Key to Chemicals — Chemicals contribution Themes accelerate Products premium market — —maintaining By growing leadership margins growth from Business market portfolio while and lea
Slide 13: Disciplined cash deployment
Visionadditional Growing 2015 Increasing Capturing Proactively Disciplined Expect Cumulative ~$1B amount Completed Five total ofLeadership Value cash Our $100M Managing Cash Key free of ~$3B Reach todebt cash of Elements Deployment shareholders share Common Positions in capacity flow Portfolio cash
Slide 14: Delivering returns to shareholders
Vision Delivering Growing 2015 Increasing Capturing Proactively Disciplined Confident sustainable returning Leadership cash Value that Our high Managing Cash to we Reach returns of shareholders Deployment Our can Common Positions deliver Portfolio Vision Delivering Ownership on Organic Organic Growt
Slide 15: Vision 2015: The Right Chemistry
VISION THE RIGHT 2015CHEMISTRY
Slide 16: Agricultural Products
Agricultural Milton Steele, Products Vice President and General Manager, Agricultural Products
Slide 17: Agricultural Products Vision
Agricultural Vision An $2.3B 30-40% Strategic Proven enhancing agile, Sales 2015 Differentiator ofRoadmap innovative, and 2015 $575M Products expanding Sales EBIT customer-focused Strategy generated the 25%portfolio continuing EBIT fromMargin products andtohighly deliver introduced profitable premiu
Slide 18: Key elements of differentiator strategy
Key Elements Innovation Market Product GloballyInnovation Innovation competitive through of APG aggregating manufacturing Differentiator technologies cost Strategy structure High customer intimacy Disciplined focus Flat, agile and empowered organization
Slide 19: Agricultural Products overview
Agricultural Fungicides Herbicides Insecticides Asia EMEA North Latin Based Long-term Pacific America America on 15% 2009 global 45% &48% 16% Products—Serving Other 48% Consolidated 21%agricultural 7% Sales trends Key ofdriving Agricultural $1,052Mcrop protection Markets Worldwide chemicals growth
Slide 20: Differentiator strategy delivered growth
Differentiator Sales 1,052 615 11% 27% 2002 69 2009 289 EBIT Major new products Margin 2009 ($M) 8% 23% growth manufacturing CAGR ($M) CAGR driven introduced Strategy by cost Has substantial inreductions Delivered the pastmargin 5 and years 23%restructuring expansion EBIT CAGR &Product solid 2002-20
Slide 21: Superior returns versus peers
Differentiator 2009 30% Monsanto 27% Tier Biotech Global Source: 120% EBIT R&D Generic Company 10% FMC Margin Strategy 0% Syngenta Financials Providing BASF and Bayer FMC Superior Analyses DuPont Returns Dow Nufarm MAI
Slide 22: Sales and EBIT vision
Vision Sales ((9% 1,052 EBIT 2,300 (8% 27% 25% ($M) 2009 289 2015 millions) Organic) Margin 14% 12% 2015CAGR $M) — 575Continuing to Deliver Premium Margins and Sales Growth
Slide 23: Strategic imperatives
Strategicspaces Successful implementation adjacent Imperatives execution Increased of Differentiator supply chainStrategy productivity Realizing External richGrowth pipelinefocused of organic on product EBIT growth line acquisitions, projects Continued licensing, growth development in all regions in
Slide 24: Organic EBIT growth components
Organic ($ 400 500 Internal 200 2015 2009 445 289 Technologies Innovation: Market Alliances Operational Maintain M) 300 Access: /Growth Product low-cost, & Improvement: investments to differentiate Contribution —Innovation virtual Rich strengthen Pipeline manufacturing Market existing to EBIT ofmark
Slide 25: Organic growth project pipeline
OrganicFeasibility Higher Strategically Financially Market Bubble $40M Lower Attractive Access size Growth represents / Product —Higher 19 Active maturity Innovation Projects EBIT/Cash Market HaveInnovation Flow. Potential Some to Operational projects Add >$300M projected Improvement EBITto at notMa
Slide 26: External growth opportunities
Components 600 Organic $ 445 Vision 575 External Product Fluthiacet-methyl Access Collaboration Biologicals Millions 5002015 toline 2015 400 Growth growth various EBIT and 300 ofagreements builds technology — Opportunities 200 third In-licensing Highly on party with existing Focused acquisitions, ch
Slide 27: Agricultural Products Vision summary
Agricultural Vision An $2.3B Sustainable Innovation Supply Focused agile, Sales 2015 chain and innovative, creating Premium $575M Products disciplined efficiencies differentiated EBIT customer-focused Margins external driving 25% EBIT growth global products Margin and competitiveness initiatives Sal
Slide 28: Vision 2015: The Right Chemistry
VISION THE FMC RIGHT 2015CHEMISTRY
Slide 29: Specialty Chemicals
Specialty Chemicals Theodore Butz, Vice President and General Manager, Specialty Chemicals
Slide 30: Specialty Chemicals overview
Specialty BioPolymer Asia North EMEA Latin Based BioPolymers Partnering Employing Extending Lithium Pacific America America on 32% 23% focus 2009 Chemicals customer with deep 77% 20% Food on 8% Consolidated 40% major product faster Ingredients product category growing / application life Sales and le
Slide 31: Specialty Chemicals Vision
Specialty Vision Global $1.5B Well Potential Three Other 13% 2015 Strong North Latin Increasing 7.0% 2010 Weighted Food positioned Revenue 2015 America 5.2% Attractive 7% Asia Sales 2015 Global leader to Chemicals average Energy 47% Participation America supplement / $375M in Position Europe Mix Pha
Slide 32: Leveraging global leadership for growth
Specialty Leveraging 12% Sales 15% EBIT 1,500 ($M) 753 21% ($ 2009 26% 2015 M) margin CAGRChemicals global (7% (11% 160 Organic) 375 Organic) leadership to drive continued strong Sales and EBIT growth over 2009—2015
Slide 33: Comparison of Food, Pharma and Lithium
Comparison Food Lithium Organic 5% Role High Importance External RDE Strategic 6%of Moderate Opportunity Pharmaceutical 12% Sales Ingredients Growth Position ofof Growth Specialty Low High Attractive High Excipients Innovation Moderate High Chemicals’ Attractive High Not(Asia) Strategic Critical Att
Slide 34: Food Ingredients Vision
Food Vision A customer’s through Market Health FMC Sales Medium $700M Ingredients of Starting 2015 & Drivers innovative $330M size, Nutrition specialty global global Position inproduct 2009 ingredient Convenience innovator development solutions supplier ofIndulgence texture solving needs ingredients
Slide 35: Food Ingredients strategic imperatives
Food Ingredients Invest Leverage Increase Expand inRDE participation core customer position products —relationships Strategic in by tohigher investing strengthen Imperatives growth, byinbroadening leadership growth high value-added markets position texture portfolio ingredients
Slide 36: Food ingredients $35B market
Food $35B Sensation Natural 100 Synthetic Gelatin Concentrate 60 Native Soy of Modified Dairy 20 Caseinates 0 0—3% 5% 3—535 Isolates Flavor 10Ingredients space Acidulants Whey 15 Starch growth growth Colors Starch 20 Colors Enhancers Specialty Percent Emulsifiers fragmented Enzymes Nutraceuticals 25
Slide 37: Pharmaceuticals Vision
Visionof Pharmaceuticals $500M Market Aging Strong Changing FMC Sales Recognized positions Starting demographic 2015 growth Drivers leading $240M in development biomedical, leader Position invalue-added in 2009 inand tablet cycle capsules increasing binders supplier andaccess Price addressing algina
Slide 38: Pharmaceuticals strategic imperatives
Pharmaceuticals Invest technologies in coreBroaden products Strategic dose to maintain Imperatives form participation premium position to access Expand larger,RDE faster-growing position toopportunities capture growth markets Redefine innovation and service model to increase customer intimacy Expand
Slide 39: Lithium Vision
$350M Lithium Market Portable FMC Sales Well footprint positioned of Starting Drivers supplier $175M electronics transitioned Position in of early 2009 lithium growth toward stages chemistries Energy future of energy diversification growth profitably market platforms growth Vision Energy/environment
Slide 40: Lithium market demand scenarios
Market 350,000 Tons Base 300,000 Downside Indust./Const./Other 100,000 Air 2008 Source: Note: Upside: Base: Downside: treatment Auto of 2009 Vehicle 15% Demand Lithium FMC 21% Upside Grease 200,000 250,000 2010 penetration 8%penetration -estimates electrification penetration /Carbonate 2011 Scenario
Slide 41: Substantial lithium market growth
Substantial 2000 ($M) $1,700 1500 CAGR 6% 1000 500 0 2010 Industrial 0 $950 500 2000 12% CAGR 2015 ($M) $1,700 1500 Polymers 2020 Acceleration 1000 2010 $950 Americas 2015 $700 in Lithium 2020 $700 Europe Market Japan Growth Synthesis Expected Energy 2015—2020 Storage China Other Asia
Slide 42: Lithium strategic imperatives
Lithium—Strategic Expand position in energy Imperatives storage segment Strengthen downstream business Additional capacity expansion decision in 2012
Slide 43: Specialty Chemicals Vision summary
Specialty Vision Strong Attractive 12% 15% 25% Significant Well Sales EBIT of positioned Global portfolio Sales Chemicals organic CAGR increase from Leader to ofgrowth participate innovation businesses ininRDE Functional in participation all in businesses, faster-growing Chemistries Asia with toend
Slide 44: Vision 2015: The Right Chemistry
VISION THE [Graphic RIGHT 2015 Appears CHEMISTRY Here]
Slide 45: Industrial Chemicals
Industrial D. MichaelChemicals Wilson, Vice President and General Manager, Industrial Chemicals
Slide 46: Industrial Chemicals Group vision
Industrial Group 2015 20% 7% 859 2009 (1) CAGR (1) Margin Greater 2015 of10% 2009 high Chemicals 2009 19% Margin 1,300 sales Sales/EBIT performance CAGR ($M) restated 260 902015 Sales growth to businesses—created EBIT exclude Superior phosphates returnsthrough on assets restructuring, Higher margins
Slide 47: Industrial Chemicals businesses
Industrial Silicates Asia EMEA Latin Based Three Soda GlobalPacific Ash America businesses on Soda Peroxygens North Zeolites 2009 Chemicals 5% Ash 31% 13% Consolidated Peroxygens going 4% America Zeolites Phosphates forward: 51% / Sales Silicates 56%16%24% of $1,027M
Slide 48: Industrial Chemicals strategic imperatives
Industrial Exiting Driving Utilizing Shifting Propagation Pursuing Efficacious, Combination Phosphates strong product Granger an Chemicals early cost-effective ofofearnings specialties, organic mix stage astoa— toachieve strategic Environmental deliver growth Strategic solutions globalization, signi
Slide 49: Exiting phosphates
Exiting Key Unsustainable Change Raw Approved Actions Financial Modest including GoingDrivers material forward, Phosphates 2011 inImpact cash closure environmental EBIT volatility, competitive charges Foret ofimpact; Huelva, will of cost regulation $60—$70M be position phosphates disadvantage, aSpai
Slide 50: Soda Ash Vision
Soda An Vision 2015 Market GDP Regulatory Current World’s Secondary $800M Ash growth position, specialty Drivers Position largest Solution global initiatives ininnovation natural mature sodium leader Mining soda markets salts inand natural Sustained ash with profitability Growth producer respect sod
Slide 51: Soda ash industry structure and position
Industry Limited Favorable FMC Supply-driven Global ANSAC has supply access Structure as scale, U.S. a highly cost cycle, to industry proprietary key and curve efficient steady raw Competitive structure ismaterial process not global sales flatand demand due technology Position distribution to natura
Slide 52: Soda Ash strategic imperatives
Soda Ash Maintain Actions Build Global Leverage Operational strategy pursue on market Reach consistent Cost Market cost Strategic Excellence Leadership and entry Leadership scale with Imperatives in profitable program our positions globaland regions toview outperform process Latininnovation America
Slide 53: Peroxygens market position
Global A Market Growth Sustainability RDE Current North more $375M adoption rapid America Peroxygens Drivers Position ofleading core globalization and of leader demand Western global in in attractive supplier standards North America ofand oxidation Core growing markets and solutions Western specialt
Slide 54: Peroxygens technologies
Peroxygens Technologies Environmental Cost Globalization All other traditionally Growth microbes. Targeting employed Core electronics. AllAnti-Microbial served Three to reduce, areas Sets in ofeliminate Innovation served Applications markets or remediate which pollutants our oxidants contained such
Slide 55: Peroxygens specialty applications
Peroxygens Soil Specialties Safety attributes: Sustainability Efficacy Aseptic Intellectual Personal Treatment—Core Water -Polymer Pulp 0% Commodities Market Antimicrobial Environmental 5% Electronics Hard NOx /10% Application (Air) Mining sold Property Mix sold Oilfield on Price Shift Surface on Fo
Slide 56: Peroxygens strategic imperatives
Propagate Cost Actions Global Enhance Innovation franchises sustainable intellectual Peroxygens Reach competitive Specialties inproperty competitive environmental, Strategic cost advantages position electronics, Imperatives via in new process food geographies safety redesign andand Ensure water ongo
Slide 57: Environmental Solutions
Environmental A environmental Market Increasing Current Technology Efficacious, Strategic Validate reaching sustainable Drivers Position technologies critical Imperatives regulations leader cost business challenges Solutions mass effective in destruction through Focused for platform in air, and air,
Slide 58: Industrial Chemicals Vision summary
Industrial Vision Restructured Key Attractive Environmental Financial Sales 7% 19% 2009-2015 EBITCAGR Elements CAGR $1.3B $260M Margin 2015Highlights Chemicals portfolio and 20% business transformed of2015 businesses platform business Increased segment specialty Delivering focus Global sustained rea
Slide 59: Vision 2015: The Right Chemistry
VISION THE [Graphic RIGHT 2015 Appears CHEMISTRY Here]
Slide 60: Rapidly Developing Economies and Procurement
Rapidly Mark Global Douglas, Services Developing Vice and International President Economies (RDEs) Development and Procurement
Slide 61: Dynamic growth trends driving RDE opportunities
Dynamic Central Asia Population Industrial Urbanization Growing Middle / Eastern Middle Global Capital Growth EastGrowth Class Europe, & Investment Africa Consumerism Trends Turkey, Latin Driving America Russia RDE Opportunities
Slide 62: Rapidly Developing Economies Vision
Rapidly RDEs Vision CAGR 2015 Strong Strategic People resources Shanghai BioPolymer to Sales local — ofDeveloping deliver Roadmap Innovation for 9-11% recruitment, labs leadership of business $2+B 50% in over Turkey, Economies Center or 2009-2015 growth, retention with more Singapore, developed of e
Slide 63: Actions to capitalize on RDE opportunities
Enablingtailored Locally infrastructure Actions Shifting products to Capitalize costrequired competitiveness on RDE for local Opportunities markets Government Talentsupport acquisition for growth — increasing — incentives, need now subsidies drivenIncreasing by both MNCs environmental and local legi
Slide 64: RDE sales drivers by segment
RDEDrivers Sales 2009 $1.1B $2.0B APG Key Organic Pharmaceuticals Expanding 2015 SCG by growth Segment ICG Organic and Lithium Impact newAcross products/markets growthFMC in Energy Businesses drive Storage Agricultural markets inProducts Asia Food Ingredients growth driven by trends towards convenie
Slide 65: RDE Vision
Rapidly Sales Vision CAGR 2015 Enabling People Technology Regional Latin and Russia America of— ofDeveloping $2+B growth activities growth: 9-11% recruit, ——Sales — continuing in over Sales retain we RDEs of Economies 2009-2015 will $150M reaches and to to focus develop provide invest by $1.1B, on:
Slide 66: Procurement strategic roadmap
Procurement—A Best 2015 Strategic Create Leverage Robust Procurement transaction in Operational aclass, standardization center-led, Roadmap spend teams organization cost globally Next to excellence efficient global identify Generation ofthrough Purchase-to-Pay enablement sourcing services cost yield
Slide 67: Procurement path
Our Path Operations Center Spend Accounts Adoption Procurement Master Technology Process Roll-out Evole Operating Management of Data &to Excellence Broad Iterative Technology 2010 Operational Neworganizational Model 2011 leadership process Purchase-to-Process 2012 Development Excellence 2013 in plac
Slide 68: Best-in-class procurement savings
Best-in-Class Run Early $80M Telecom $25M Dec 2011 Rate wins 20 $50M Cash Dec deliver Procurement 2012 Cost Travel ~$3M Dec Reduction HR2015 annual Services to Drive savings Significant Packaging Cost Savings
Slide 69: Vision 2015: The Right Chemistry
VISION THE RIGHT 2015CHEMISTRY
Slide 70: Financial Strength Enables Achievement of Vision 2015
Financial W. Kim Foster, Strength Senior Enables ViceAchievement President andofChief Vision Financial 2015 Officer
Slide 71: Path to $5B sales by 2015
VisionOrganic Sales $5.0B 2009 $0.5B $2.8B GrowthTarget: $1.2B 2015—Path 2015 $5.0B Growth Growth to EBIT Growth $5B External Target: Sales 2015 Vision and $1.2B $1.2B 2009 EBIT Organic Procurement External Vision
Slide 72: Sales growth drivers
Sales—Modest 2009 3% 7% CAGR% $1.9B 5% Industrial 9% Specialty 8% 2002Continued participation 2015: 2009: 2009 Richmarkets Chemicals Chemicals 2015 7% 6% innovation growth Acceleration CAGR Agricultural in pipeline Key 2009-15 $2.8B Drivers in Organic leadership across Attractive Products $4.2B our
Slide 73: EBIT growth and margin expansion
Continued 2009 ~21% ~$900M CAGR% 2009-15 EBIT 3% Margin 10% 8% Industrial 23% 2002 Corporate phosphates 2015: 2009: 2009 ICG—Soda 9% growth sustained Chemicals Double-Digit 2015 growth, 11%exit 14% pipeline, CAGR Ash premium Peroxygens’ Specialty APG Key EBIT 19% Drivers rich Growth Chemicals $188M
Slide 74: Delivering strong cumulative free cash flow
Delivering 2010 ~$5B Cumulative Capital 2015 Strong Cumulative on Increase operating OrganicinGoals profit Key Capital Drivers Generates growth All Other in all Over Items businesses $2B Cumulative FreeImproved CashOrganic Flow capital EBITDA efficiency Working ~$2BInvestment Legacy liabilities Orga
Slide 75: External growth
External 2015 $50M Proactive, transformational IRR Deal-specific EPS Attractive Premium Sustainable Portfolio APG > accretion Sales SCG $850M risk-adjusted Growth EBIT growth aligned ICG from mid-teens year Margins Total External acquisitions Complements rate with 2hurdle or Strategic ROIC clear soo
Slide 76: Cash deployment 2010-2015
Over ~$1B Total capacity shareholders ~$ Free Additional External Expect Cumulative 2.2B Cash $3B of >$3B toover return rating use in Flow debt Deployment Cash Cumulative $3B $1.5B to Growth capacity in to to cash Deploy $2.0B of cash ~$2B to~$1B Borrowing Over to toOrganic fund shareholders consist
Slide 77: Our Vision
Our Vision Sales Sustained Significantly Strong Premium ofcash $5+B TSR mid-teens for generation greater and performance FMC EBIT return in earnings with 2015 of on $1.2+B disciplined stability invested capital cash deployment
Slide 78: Vision 2015: The Right Chemistry
VISION THE RIGHT 2015CHEMISTRY
Slide 79: Vision 2015: The Right Chemistry
VISION THE RIGHT 2015CHEMISTRY