Fmc Corporation · NYSE:FMC
Fmc — Investor Day (July 2004)
28 slides from Fmc's investor day presentation, Jul 16, 2004
Slide 1: FMC Corporation Green River Analyst Meeting
Exhibit 99.1 FMC Corporation Green River Analyst Meeting July 14, 2004
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 below and 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 of the web site, we have provi
Slide 4: FMC Corporation
FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ million, 12/31/03) FMC Sales: $1,921.4 EBITDA: $309.3 Margin: 16.1% Industrial Chemicals Sales: $770.6 EBITDA: $93.9 Margin: 12.2% Specialty Chemicals Sales: $515.8
Slide 5: FMC Strengths
FMC Strengths Leading market positions Global presence Diversified business mix and high-quality customer base Diversified and integrated cost structure Focused R&D and strong applications expertise Proven management with extensive industry experience
Slide 6: Strategic Objectives
Strategic Objectives Unlocking value and creating a faster growing FMC Realize the operating leverage inherent within FMC Double-digit growth in earnings before restructuring and other charges Industrial Chemicals recovery to add earnings of over $1 per share Create greater financial flexibility Red
Slide 7: Industrial Chemicals Overview
Industrial Chemicals Overview 2003 Consolidated Sales: $770.6 million Foret 34% Alkali (Soda ash) 47% Peroxygens 19% Asia 6% Europe/Middle East/Africa 35% North America 51% South America 8% Excludes phosphorus chemicals sales at Astaris JV of $384.5 million, largely in North America #1 North America
Slide 8: Industrial Chemicals Financial Performance
Industrial Chemicals Financial Performance $’s, millions 250 200 150 100 50 0 $194 $208 $177 $133 $130 $94 1998 1999 2000 2001 2002 2003 2004 25% 20% 15% 10% 5% 0% Margin, % EBITDA Capital Spending EBITDA Margin (%) Industry over-expansion during the late 1990’s Declining demand, price erosion and c
Slide 9: Alkali Chemicals Division
Alkali Chemicals Division Agenda: Background China Demand Supply Pricing FMC Strengths Summary
Slide 10: Defining Characteristics of the Soda Ash Industry
Defining Characteristics of the Soda Ash Industry Commodity Cyclical Large Concentrated Customers Growth Export Driven High Fixed Costs Relatively Flat Supply Curve Hallmarks of Profitable Industries With Similar Characteristics Supply/demand can be influenced to allow profitable operating rates und
Slide 11: Recent Events
Recent Events ............... OCI announced shutdown of Incheon, Korea facility Solvay announced shutdown of Colorado soda ash operation Searles Valley Minerals (formerly IMC) Departed from ANSAC 80% share acquired by Sun Capital Partners Weaker US dollar China remains in balance Synthetic producers
Slide 12: Soda Ash Demand Overview
Soda Ash Demand Overview Global demand ~ 38M Metric Tonnes China is the largest consuming region ~ 11M Metric Tonnes Worldwide growth of ~ 2-3% per year with focus in developing regions Glass represents largest end use sector ~ 50-55% of total demand Two production routes natural and synthetic Low c
Slide 13: ANSAC (American Natural Soda Ash Corporation)
ANSAC (American Natural Soda Ash Corporation) Export Sales/Marketing Logistics Corporation Limited exemption for purpose of export sales from Sherman Anti-trust law ANSAC exports ~ 1/3 of US production Latin America Middle East / Africa Asia – Other China
Slide 14: 2003 Major Trade Flows
2003 Major Trade Flows (Metric Tonnes) to Asia 1.7M Tonnes to Latin America 1. 6M tonnes to Europe 0.5M Tonnes to Latin America 0.3M Tonnes to Africa / ME 0.2M Tonnes from China 1.3M Tonnes from US 1.7M Tonnes
Slide 15: 2003 Global Market Overview / Trade Flows
2003 Global Market Overview / Trade Flows ANSAC – Land North Western Asia Latin America Europe China (ex. China) America % of Global Demand 17% 17% 28% 10% 7% Market Growth—% pa 0-1% 0-1% 7-8% 2-3% 2-3% Net Exports/ 4.3 (0.6) 1.0 (2.8) (2.0) (Imports) – MT U.S. Share—% 100% 7% 3% 35% 64%
Slide 16: China Balance
China Balance (K metric tons) 2003 2004 2005 Production 11,050 12,030 12,980 Actual thru April 4,003 Demand 10,070 10,780 11,530 Growth 7% 7% 7% Exports 1,250 1,400 1,450 Actual thru April 460 Imports 270 150 Actual thru April 100 China will remain balanced as growth absorbs planned capacity additio
Slide 17: U.S. Soda Ash Exports
U.S. Soda Ash Exports 2003 exports: 4.9 million short tons * Increase in U.S. Exports by Region ’04 vs. ‘03 Latin America 36% Asia 38% ROW 5% Canada (net) 9% Western Europe 12% k short tons 300 250 200 150 100 50 0 -50 Asia Latin Western ROW America Europe U.S. Export increase ~340 k tons
Slide 18: Opportunity for Higher Export Prices and Volumes Exists
Opportunity for Higher Export Prices and Volumes Exists All synthetic producers facing higher costs due to soaring coke prices China supply/demand will remain in balance Higher ocean transport costs need to be recovered U.S. dollar relatively weak Global demand growth as: Asian and Latin American ec
Slide 19: 2004 U.S. Soda Ash Demand
2004 U.S. Soda Demand ~6.85M Short Tons U.S. End Use Sectors Other Glass 7% Pulp & Paper 2% Other 11% Glass Containers 25% Detergents 10% Chemicals 27% Flat Glass 18% Domestic gains as U.S. economy recovers (+) Strength across economically sensitive segments (e.g. chemicals/flat glass) (+) Solvay pl
Slide 20: Demand Growth will continue for US Soda Ash
Demand Growth will continue for US Soda Ash (Short Tons) 2001 2002 2003 2004E 2005F Domestic Demand 6,900 6,850 6,850 6,850 6,900 Net Exports 4,480 4,635 4,880 5,220 5,350 Total Demand 11,380 11,485 11,730 12,070 12,250
Slide 21: U.S. Soda Ash Supply
U.S. Soda Ash Supply Nameplate Capacity OCI 20% FMC 29% Solvay-CO 6% Solvay-WY 19% SVM * 9% General 17% * Searles Valley Minerals 2004 Nameplate Capacity MT/year Post-Mothball FMC 4.85 3.55 General 2.8 2.8 OCI 3.25 2.4 Solvay -WY 3.1 3.1 Solvay—CO 1.0 0.0 SVM 1.5 1.5 16.5 13.35 Effective Capacity 12
Slide 22: The U.S. Industry Will Be Tight Heading Into 2005
The U.S. Industry Will Be Tight Heading Into 2005 Effective Capacity – M Short Tons 13.00 12.50 12.00 11.50 11.00 10.50 10.00 1997 1998 1999 2000 2001 2002 2003 2004F 100% 95% 90% 85% Effective Capacity Utilization—% Capacity Operating rate
Slide 23: Industry operating rates a leading indicator of future pricing
Historically, industry operating rates have been a leading indicator of future pricing Domestic Price Base 1990 = 1 1.15 1.10 1.05 1.00 0.95 0.90 0.85 2004E 2005F 100% 95% 90% 85% Industry Operating Rate -% Effective Operating rate Domestic Price
Slide 24: FMC Price Increase Details
FMC Price Increase Details Effective July 1, 2004 or as contract terms permit for US and Canada All grades of soda ash Off-list prices +$15/ton List prices + $5/ton FOB freight terms or freight prepaid and added at customers’ request with $1/ton service charge (no delivered pricing) Energy surcharge
Slide 25: Alkali Chemicals Division Key Product Offerings
Alkali Chemicals Division Key Product Offerings High Volume High Value (i.e. niche) Other Soda Ash Sodium Sesquicarbonate Sodium Bicarbonate Light Density Soda Ash Chemical Caustic Soda
Slide 26: ACD Strengths
ACD Strengths World’s leading natural ( globally advantaged) soda ash producer Greatest North American market position (~29%) in soda ash Highest industry margins Niche product positions (Sodium Bicarbonate and Sodium Sesquicarbonate) difficult for competitors to duplicate Largest scale & multiple m
Slide 27: Alkali Chemicals Division Summary
Alkali Chemicals Division—Summary U.S. industry operating at full effective capacity 7% growth in U.S. export demand History shows operating rate is a leading indicator for price Financial pressure worldwide is leading to a rising price environment Raw material and energy costs Freight (rail and/or
Slide 28: +NiIC
+NiIC