Fmc Corporation · NYSE:FMC
Fmc — Morgan Stanley Small Cap Chemicals Roundtable 2005
20 slides from Fmc's conference presentation, Dec 2, 2005
Slide 1: FMC Corporation, Morgan Stanley Small Cap Chemicals Roundtable
Exhibit 99.1 FMC Corporation Morgan Stanley Small Cap Chemicals Roundtable New York, NY November 30, 2005 William G. Walter Chairman, President and CEO
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 o
Slide 3: FMC Corporation
FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ millions, LTM ending September 30, 2005) FMC Sales: $2,141.7 EBITDA: $420.5 EBITDA Margin: 19.6% Industrial Specialty Agricultural Chemicals Chemicals Products Sale
Slide 4: Disciplined Approach to Unlocking Value
Disciplined Approach to Unlocking Value Realizing the inherent operating leverage within FMC - Sustained earnings growth >10% per year (1) - Industrial Chemicals recovery in mid-cycle in 2005 - Continued growth in Specialty Chemicals and Agricultural Products Creating greater financial flexibility -
Slide 5: Industrial Chemicals
Asia 7% Industrial Chemicals Based on 2004 Consolidated Sales of $813.7 million Asia 7% Foret 35% Alkali (Soda ash) Europe/Middle North America 46% East/Africa 50% 35% Peroxygens Latin 19% America 8% #1 North American manufacturer of soda ash and peroxygens Backward integration into natural resource
Slide 6: Industrial Chemicals Financial Performance
Industrial Chemicals Financial Performance Earnings growth of 45% expected in 2005 driven by higher selling prices, partially offset by higher energy, raw material and transportation costs 200 20% 150 $151 15% $133 $130 $124 100 $94 10% 50 5% 0 0% 2001 2002 2003 2004 LTM 9/30/05 EBITDA Capital Spend
Slide 7: Industrial Chemicals' Focus
Industrial Chemicals’ Focus Managing for cash generation Near-term sales growth – Higher selling prices for soda ash – Incremental soda ash capacity addition at Granger – US and European peroxides producers have announced price increases Margin expansion - Working to offset rising energy, raw materi
Slide 8: Growth Franchises in Specialty Chemicals
Growth Franchises in Specialty Chemicals Based on 2004 Consolidated Sales of $538.0 million Asia 15% Lithium 28% North America Europe/Middle 41% BioPolymer East/Africa 72% 36% Latin America 8% BioPolymer: • Adds structure, texture and stability to food • Acts as a binder & disintegrant for dry table
Slide 9: Specialty Chemicals Financial Performance
Specialty Chemicals Financial Performance 2005 earnings growth expected to be approximately 15%, driven by increased selling prices and productivity improvement 160 30% $140 $132 $129 $122 28% $116 120 26% 80 24% 40 22% 0 20% 2001 2002 2003 2004 LTM 9/30/05 EBITDA Capital Spending EBITDA Margin 8
Slide 10: Specialty Chemicals Focus
Specialty Chemicals Focus Growing existing core business – Maintaining key positions with category leading customers – Shifting resources toward faster growing segments – Expanding presence in rapidly growing emerging markets Commercializing new technology platforms Managing maturing segments for im
Slide 11: Agricultural Products
Agricultural Products Based on 2004 Consolidated Sales of $703.5 million Asia 13% Herbicides 25% Europe/ Middle Latin America East/Africa 36% Fungicides 2% 16% Insecticides 73% North America 35% Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides
Slide 12: Agricultural Products Financial Performance
Agricultural Products Financial Performance Earnings growth of 5% expected in 2005, reflecting higher sales and lower manufacturing costs partially offset by lower bifenthrin pricing and higher raw materials costs. 175 $160 25 $148 150 $114 $111 20 125 $101 $99 100 15 75 10 50 5 25 0 0 2000 2001 200
Slide 13: Agricultural Products' Focus
Agricultural Products’ Focus Creating competitive advantage through innovation – Investing 10% of sales in R&D – In-licensing products & technologies that complement segment strategies Driving near-term sales growth – Label expansions and new formulations in crop and non-crop segments – In-licensed
Slide 14: FMC in Summary
FMC in Summary Great businesses, each with EBITDA of at least $140 million Double digit earnings growth - Earnings leverage in Industrial Chemicals - Continued growth in Specialty Chemicals and Ag Products Strong financial position - Robust and growing EBITDA - Substantial decline in unusual demands
Slide 15: FMC Remains Significantly Undervalued
FMC Remains Significantly Undervalued EV/2006E EBITDA 8.1 7.7 7.3 7.4 7.1 6.8 6.0 6.0 6.1 5.8 5.5 4.4 4.2 3.8 OLN CEM LYO FMC FUL ARJ HPC MTX RPM CBT LZ CYT ALB VAL Source: Bloomberg and Thomson First Call 14
Slide 16: FMC Corporation
*********** *********** FMC Corporation ***********
Slide 17: Non-GAAP Financial Terms
Non-GAAP Financial Terms These slides contain certain “non-GAAP financial terms” which are defined below. In addition, we have provided reconciliations of non-GAAP terms to the closest GAAP term in the appendix of this presentation. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortizat
Slide 18: Segment Financial Terms
Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 18 of FMC’s 2004 Form 10-K. Some of the segment financial terms are “non-GAAP financial terms” and are defined below. In addition, we have provided reconciliations of non-GAAP ter
Slide 19: EBITDA Reconciliation: LTM 9/30/05
EBITDA Reconciliation: LTM 9/30/05 Reconciliation of LTM 9/301/2005 consolidated income from continuing operations before income taxes (a GAAP measure) to LTM 9/30/2005 EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 9/30/2005 Income (loss) from continuing operations before income taxes $
Slide 20: Segment EBITDA Reconciliation
Segment EBITDA Reconciliation Reconciliation of LTM 9/30/05 segment operating profit (a GAAP measure) to LTM 9/30/05 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Industrial Specialty Agricultural Segment Chemicals Chemicals Products LTM 9/30/05 segment operating profit (GAAP) $82.6 $106.9 $1
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