Slide 1: FMC Corporation at KeyBanc Basic Materials Conference
FMC Corporation D. Michael Wilson President, Specialty Chemicals Group KeyBanc Basic Materials Conference Boston, MA September 14, 2011
Slide 2: Disclaimer
Disclaimer • Safe Harbor Statement 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 the Company may differ materially from those contained in
Slide 3: FMC Corporation revenue and EBITDA by segment
• FMC Corporation • Revenue: $3,190 • EBITDA: $707 • EBITDA Margin: 22.1% • Agricultural Products • Revenue: $1,317 • EBITDA: $354 • EBITDA Margin: 26.8% • Specialty Chemicals • Revenue: $846 • EBITDA: $229 • EBITDA Margin: 27.0% • Industrial Chemicals • Revenue: $1,033 • EBITDA: $202 • EBITDA Margi
Slide 4: Strong Operating Position Across Global Economic Scenarios
Strong Operating Position Across Global Economic Scenarios • Leading market positions serving diverse end markets - low correlation to economic cycles • Over 80% of sales in markets with low correlation to economic cycles • Agriculture, Food, Pharmaceuticals, Energy Storage, Environmental • Biasing
Slide 5: On Track to Meet Key Vision 2015 Targets
On Track to Meet Key Vision 2015 Targets • Sales of $5B and EBIT of $1.2B • Sustained mid-teens return on invested capital • Significantly greater earnings stability • Strong cash generation with disciplined cash deployment • Premium TSR performance
Slide 6: Vision 2015 Launched from a Position of Strength
Vision 2015 Launched from a Position of Strength Growing Leadership Positions Increasing our Reach Capturing Value of Common Ownership Proactively Managing Portfolio Disciplined Cash Deployment • Confident that we can deliver on Organic Growth plans • Sales growth consistent with past performance an
Slide 7: Vision 2015 Five Key Elements: Growing Leadership Positions
Vision 2015 • Five Key Elements Growing Leadership Positions Organic Growth drives Sales to $4.2B • Continued growth in leadership positions • Attractive end markets with low correlation to economic cycles; biasing growth to RDEs • Innovation - rich pipeline across businesses • Selected high-return
Slide 8: Vision 2015 Key Themes By Business
Vision 2015 Key Themes By Business Agricultural Products • Maintaining premium margins while growing sales • Increasing contribution from market and product innovations • External growth focused on acquiring new product lines and accessing third-party active ingredients • Specialty Chemicals • Food
Slide 9: Agricultural Products Vision 2015
Agricultural Products Vision 2015 An agile, innovative, customer-focused and highly profitable business with: • $2.3B Sales: 13% CAGR (7% organic) 2010-2015 • $575M EBIT: 13% CAGR (8% organic) 2010-2015 • 25% EBIT Margin • 30-40% of 2015 Sales generated from products introduced during the plan perio
Slide 10: Specialty Chemicals Vision 2015
Specialty Chemicals Vision 2015 Global Leader in Functional Chemistries for Food, Pharmaceuticals and Energy Storage Markets • Strong portfolio of businesses with attractive organic growth in all businesses and significant external growth opportunities • $1.5 billion Sales and $375 million EBIT • 12
Slide 11: Industrial Chemicals Vision 2015
Industrial Chemicals Vision 2015 • Restructured and transformed business segment • Delivering sustained Sales/EBIT growth • Greater earnings stability • Strong cash generation • Above hurdle rate returns across economic cycles • Key Elements • Attractive portfolio of businesses • Increased specialty
Slide 12: Increasing our Reach: Focus on Rapidly Developing Economies
Five Key Elements Growing Leadership Positions Increasing our Reach Vision 2015 • Focus on Rapidly Developing Economies (RDEs) • Going where the growth is… • RDEs deliver >50% of FMC sales by 2015 • $2+B Sales; 9-11% CAGR • Latin America -- leveraging Agricultural Products' leadership position • Asi
Slide 13: Capturing Value of Common Ownership
Five Key Elements Growing Leadership Positions Increasing our Reach Vision 2015 Capturing Value of Common Ownership • hifting to balanced centralized / decentralized model to better leverage size and scale • Acting as “One FMC” realizing efficiencies while maintaining strong accountability in our bu
Slide 14: Proactively Managing Portfolio
Five Key Elements Growing Leadership Positions Increasing our Reach Vision 2015 Capturing Value of Common Ownership Proactively Managing Portfolio • All current businesses well positioned for sustained growth • Phosphates exit EO2010 and Percarbonates exit EO2011 transforms Industrial Chemicals • Hi
Slide 15: Disciplined Cash Deployment
Five Key Elements Growing Leadership Positions Increasing our Reach Vision 2015 Capturing Value of Common Ownership Proactively Managing Portfolio Disciplined Cash Deployment • Expect cumulative cash of ~$3B for deployment over 2010 - 2015 • Delivering on organic growth goals generates ~$2B cash flo
Slide 16: Vision 2015 FMC The right chemistry
Vision 2015 FMC The right chemistry
Slide 17: Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
Slide 18: 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 Amortiza
Slide 19: EBITDA Reconciliation: LTM 6/30/2011
EBITDA Reconciliation: LTM 6/30/2011 Reconciliation of consolidated income from continuing operations before income taxes (a GAAP measure) to EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 6/30/2011 Income (loss) from continuing operations before income taxes $394.5 Net Income attributab
Slide 20: Segment EBITDA Reconciliation: LTM 6/30/2011
Segment EBITDA Reconciliation: LTM 6/30/2011 Reconciliation of Segment Operating Profit (a GAAP measure) to EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 6/30/2011 Segment Agricultural Products Specialty Chemicals Industrial Chemicals $331.9 $194.0 $135.0 21.6 34.6 67.1 $353.5 $228.6 $2
Slide 21: Vision 2015 FMC The right chemistry
Vision 2015 FMC The right chemistry