Fmc Corporation · NYSE:FMC
Fmc — Citigroup 14th Annual High Yield & Leveraged Finance Conference (March 2005)
42 slides from Fmc's conference presentation, Mar 7, 2005
Slide 1: FMC Corporation
Exhibit 99.1 FMC Corporation Citigroup March Thomas 7,C. 2004 14th Deas, Annual Jr. Vice High President Yield / & Leveraged TreasurerFinance Conference
Slide 2: Safe Harbor Statement and Non-GAAP Financial Terms
SafeCompany Disclaimer Actual Additional Securities The Non-GAAP These 1 appendix. Harbor slides results Exchange information Financial Statement and contain of undertakes the Act Company accompanying certain Terms under concerning ofno1934, “non-GAAP obligation the may Private asfactors presentatio
Slide 3: FMC Corporation: diversified chemical company
Diversified ($million, FMC Industrial Chemicals Revenue: EBITDA: Margin*: * 2 EBITDA Corporation 18.0% 15.3% $2,051.2 $813.7 Specialty $369.8 $124.3 12/31/04) Chemicals margin chemical Margin*: Revenue: EBITDA: Agricultural company Products 23.9% $538.0 $128.5 with Margin*: Revenue: EBITDA: leading
Slide 4: Company Strengths
Company Leading Global Diversified Focused Commitment 3 presence market R&D Strengths business and toand integrated positions strong strong mix credit and applications costprofile high-quality structure expertise customer base
Slide 5: Leading Market Positions
Leading Product Soda Industrial Persulfates Pyrethroids Products Agricultural Microcrystalline Specialty Alginates Chemicals Lithium (1) (2) 4 Shared Held AshMarket Specialties Market by Carbofuran Carrageenan #1 Hydrogen #2 Phosphorus #1 Astaris, #2 in Globally in in N.A. Position Positions Cellulo
Slide 6: Global Presence
Global Geographically Latin Asia Europe, North Note: 5 Pacific America Based America Presence Middle 11% on17% 43% diversified 2004 East &consolidated Africa business 29%sales
Slide 7: Diversified Revenues and End Markets
Diversified Revenues Other Chemicals Cyclical Pulp Glass/Fiberglass Electronics Agricultural Detergents Pharmaceuticals Food Bottle Non-Cyclical Approximately Top Note: 6 10 &8% Based 16% Glass customers Paper 19% by 6% 10% 2% Customers 33% on 3% End 81% 4%80% Other 2003 11% 4% Market in aggregate o
Slide 8: Low-cost Structure
Diversified Low-cost Backward Global Total Limited No Low Energy 7 single reliance energy raw sourcing costs use sourcing materials raw integration: and of demand represent onmaterial petrochemical Integrated of purchased of renewable represent requirements raw soda approximately represents material
Slide 9: Focused R&D and Applications Expertise
Agricultural Focused Use Specialty BioPolymer Lithium Industrial Process 8 of state-of-the-art R&D focus R&D insecticide Chemicals Chemicals focus Products focused on andnew on Applications discovery developing compounds technologies entirely strategy onExpertise close continued used including that
Slide 10: Our Objectives
Our Unlocking Realize Sustained Industrial Continued Create Reduce Regain Focus Manage Divest Improve * 9 Before Objectives the greater any an the net Specialty Industrial ROIC restructuring Chemicals portfolio double-digit investment growth value business operating debt financial toto and 12 Chemic
Slide 11: Industrial Chemicals
Industrial Chemicals 10
Slide 12: Industrial Chemicals Overview
Industrial 2004 Asia North Latin Europe/Middle Alkali Peroxygens Foret Excludes #1 11 North 7% Consolidated America 35% America (Soda American phosphorus Chemicals 18% ash) 8% 50% East/Africa 47% Sales: manufacturer Overview chemicals $813.7 36% sales million of soda at Astaris ash andJV,peroxygens
Slide 13: Industrial Chemicals 2005 Outlook
Industrial Expected 2005 Successful Higher Partially Freight Increased 12 earnings total selling and offset to volumes Chemicals price price energy beto prices by main realization increase becost and account up driver 2005 forincreases approximately fixed North onOutlook of for domestic cost $50 FMC
Slide 14: Industrial Chemicals EBITDA and Margin
Industrial Now Millions 25% 1998 Margin EBITDA 13 20% emerging 1999$250 Capital Chemicals 15% 2000$200 from 10% 2001 Spending $150 5% 2003 Performance 2002 0% $100 trough EBITDA 2003 $50 2004 profits $0 Margin $194 that$208 (%) were $177 more$133 than $100 $130 million $94 $124below the late 1990’s
Slide 15: Soda Ash Demand Drivers
Soda North 12 Glass Export Chemicals 1990 Other Demand Cost GDP 14 10advantage Ash 1991 Container 8American 6Drivers: 4Demand Detergents 1992 2 0 of Flat Soda 1993 natural Glass Ash 1994soda Shipments 1995 ash1996 versus 1997 synthetic 1998 1999 soda2000 ash Industrialization 2001 2002 2003 rates 20
Slide 16: U.S. Soda Ash Cost Positions
U.S. Share OCI 29% Cost F 0 0.4 0.8 1.2 1.6 FMC 15 Competitors MCGeneral Soda 20% Index Solution Longwall of Nameplate 17% Ash Base Solvay Mining Supply 19% Mining = Solution Capacity 6% Wyoming &9% Cost Mining Positions Solvay Colorado SVM
Slide 17: Sold-out Soda Ash
Sold-out Soda 1.2 100% U.S. 1990 1993 1992 1996 1995 2005F 2003 2002 2001 2000 1999 1998 2005 16 1.1 Bulk Capacity Ash domestic 1991 1994 1997 Contract 95% 2004 1 U.S. 0.9 Price 90% 0.8 Soda Utilization Renewals price Index 85%Ash increase (1990 Industry Price (%=Effective) is1.0) Index the most Eff
Slide 18: Tight Hydrogen Peroxide Market
Tight 2005 Hydrogen 1.2 100 Effective 1995 1994 2000 1999 1998 1997 2003 2002 Price 2005F 17 1.1 952004 to 1996 2001 Index Domestic 1represent 900.9 Capacity Peroxide 85Effective 0.8 80Hydrogen 0.7 75 the Utilization 70 Price 0.6 third Capacity Index Peroxide consecutive (%, Util. (1994=1.0) North M
Slide 19: Specialty Chemicals
MC Specialty Chemicals 18
Slide 20: Specialty Chemicals Overview
Specialty 2004 Asia North Latin Europe/Middle BioPolymer Lithium Adds BioPolymer: Acts Market One Lithium: Focus 19 of 15% as Consolidated America structure, America on two leader a28% binder specialty Chemicals global, 72% in 8% 41% East/Africa texture & every disintegrant products—pharmaceuticals
Slide 21: Specialty Chemicals EBITDA and Margin
Specialty The Millions 30% 2000 Margin EBITDA 20 benefit 25% 2001$140 Capital Chemicals 20% 2002 of $120 continued 15% 2003 Spending $100 10% Performance 2004 sales $80 5% EBITDA 0% $60 growth $40 Margin has $20recently $0(%) $127been $122offset $116by$132 cost$129 pressures in BioPolymer
Slide 22: Specialty Chemicals 2005 Outlook
Specialty Expected 2005 Strong Focus Selective Earnings Productivity Raw Promising Oral-dosage-form Functional Fine 21 chemistry materials revenue on organic growth lithium increases to Chemicals new food be improvements growth to growth the applications products ingredients rate remain specialty te
Slide 23: Agricultural Products
Agricultural Products 22
Slide 24: Agricultural Products Overview
Agricultural 2004 Asia North Latin Europe Insecticides Fungicides Herbicides Proprietary, Key Focused Cost The 23 depth crops: 13% reduction Consolidated America America Middle innovation and 25% cotton, 2% branded 73% Products breadth 36% strategies 35% Eastcorn, Sales: (R&D Africa insecticides Ove
Slide 25: Agricultural Products EBITDA and Margin
Agricultural Significant Millions 25% 2000 Margin EBITDA 24 20% 2001$160 Capital 15% 2002 recovery Products $140 10% 2003 Spending $120 5% driven Performance 2004 0%$100 EBITDA by improving $80 $60 Margin $40 global $20 (%) farm $0 $114 economy, $101 $99 strength $111 $148 in Brazil and benefits of
Slide 26: Agricultural Products 2005 Outlook
Agricultural Expected elatively Growth Brazilian Unfavorable Similar Relatively Continued Higher In-licensed 25 energy, earnings inflat market tonew flat progress products remain Products impact revenue sales raw products in to 2005 material remain strong in of toversus 2005 reducing price contribut
Slide 27: Financial Overview
Financial Overview 26
Slide 28: Outstanding 2004 Results
Strong Outstanding A Even Healthy Improvement Generally Significant $20 Sold-out Steady Several Unfavorable Reduction 2710% million stronger 2004 top-line growth year-over-year unfavorable pipeline market higher in growth in performance Results raw net in earnings annual in growth Industrial conditi
Slide 29: Multi-Year Recovery in Sales and Earnings
Multi-Year We 2,200 1,600 Sales, 1,000 1,200 6.00 3.00 -E 1.00 2000 Sales * 28PS*, Earnings remain 5.00 2.00 2001 EPS 2,000 1,400 $$ millions 4.00 2002 before on Recovery 1,800 track 2003 restructuring to 2004 deliver 2005E a and sustained other income multi-year andrecovery charges per in sales dil
Slide 30: Contingent Legacy Obligations Update
Contingent Legacy As-of Astaris TG FTI Note: ** *** 29 Keepwell Soda TG Guarantees *2001 Keepwell contingent Reflects Soda Ash Obligation YEobligation Ash Payment*** Current 289 50% Payments final obligations million ofUpdate payment ended Astaris’ $75 $111.9 $4February have million of total million
Slide 31: Credit Statistics
Credit 12/31/2004 Interest Capital Debt EBITDA (EBITDA—CapEx) 1) 30 Long-term /(1) EBITDA Statistics Expenditures Expense, 893 /$370 Interest debt 2.4x net plus Exp. /78 85 Interest current 4.7x Exp. portion 3.7xof long-term debt.
Slide 32: Capital Structure
Capital 12/31/2002 ($ $250 Debt $100 $400 10.25% Industrial Other Short-term Restricted Cash Stockholders’ Total Net 31 - millions) Debt Debt/Total Term million 89.6 Debt Cash Capital Public Structure Notes $Revenue 57.0 Cash $Loan Debt 902.8 12/31/2003 1,267.0 364.2 Domestic Revolving (Total Equity
Slide 33: Lengthened Maturities
Lengthened Our 2004 32 successful 2005 2006 Maturities refinancing 2007 2008in2009 20042010+ of our bank facilities addressed our maturity profile $ - millions $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $1 $70 $10 $63 $88 $417 $248
Slide 34: Summary
Great businesses, Summary Industrial Steady 33 growth Chemicals in Ag each Products earnings generating still & Specialty EBITDA $75 million Low of over below capital $100 peak expenditure million requirements Significant improvement in creditworthiness
Slide 35: FMC Corporation
Fic FMC Corporation
Slide 36: Non-GAAP Financial Terms
Non-GAAP These presentation. EBITDA ROIC term 35 debt, slides (Return (Earnings Margin Current Financial contain on is Invested portion the Before certain Terms quotient of Capital) Interest, “non-GAAP long-term of EBITDA is Taxes, thedebt, financial sum Depreciation (defined Long-term of Earnings t
Slide 37: Segment Financial Terms
Segment These and Depreciation EBITDA 36 areslides defined Financial (Earnings Margin contain andbelow. for Amortization Terms Before references a segment In addition, Interest, for to is the segment that we Taxes, quotient have segment. Depreciation financial provided of EBITDA items reconciliation
Slide 38: Reconciliation of Net Income (Non-GAAP)
Appendix: RECONCILIATION (NON-GAAP) Twelve December 2004 Discontinued Restructuring Write-off Tax Diluted excluding Average after-tax *Restructuring and ended **In ***For pronouncement adjustments 37 were effect adjustments conjunction 2003 December the Months earnings after-tax number income $0.7 o
Slide 39: Reconciliation of EBITDA
Appendix: Reconciliation (Unaudited, Income 12/31/2004 Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 38 (loss) expense, Interest (Non-GAAP) ofEBITDA in deferred and and from millions) ofExpense net amortization full-year other continuing Reconciliation 78.4 financing 369.8 char
Slide 40: Segment EBITDA Reconciliation
Appendix: Reconciliation (Unaudited, Industrial Segment Depreciation Add: FY 39 2004 EBITDA segment Chemicals Specialty Segment inand millions) of amortization full-year operating (Non-GAAP) Agricultural Chemicals EBITDA 2004 profit Reconciliation 67.0 Products segment $124.3 (GAAP) 32.4 128.5 29.3
Slide 41: Reconciliation of ROIC
Appendix: Reconciliation interest (Unaudited, 2003 Actual Income Interest Restructuring Write-off Tax 2-Point Short-term Current Long-term Shareholder’s $1,673.0 ROIC *Restructuring and ended **In ***For pronouncement adjustments 40 Adjustments*** were effect conjunction 2004 December numerator (den
Slide 42: FMC Corporation
Fic FMC Corporation
FMC — Citigroup 14th Annual High Yield & Leveraged Finance Conference (March 2005) on 6ix