Fmc Corporation · NYSE:FMC
Fmc — Citigroup 12th Annual Leveraged Finance High Yield Conference 2004
25 slides from Fmc's conference presentation, Feb 10, 2004
Slide 1: Citigroup 12th Annual Leveraged Finance High Yield Conference
Exhibit 99.1 FMCPresident Citigroup Leveraged February Thomas Vice Corporation C.9, 12th Finance Deas, 2004 & Annual Treasurer Jr.Conference High Yield /
Slide 2: Safe Harbor Statement and Disclaimer
SafeCompany Disclaimer These Actual Additional Securities The Harbor slides results Exchange information Statement and of undertakes the Act Company accompanying under concerning ofno1934, obligation the may Private asfactors presentation differ amended. toSecurities materially update that may conta
Slide 3: Use of Non-GAAP Terms
Use ofslides These Conference Following interest Adjusted Segment segment.Non-GAAP income EBITDA EBITDA isCalls contain a list andand of is Margin (Adjusted Margin Terms expense, certain the some Presentations sum is of is“non-GAAP the income the Earnings of these Income quotient quotient non-GAAP s
Slide 4: FMC: Diversified Chemical Company
Diversified ($ FMC Industrial Specialty Agricultural Sales:Corporation $1,921.4 $770.6 $515.8 $640.1 million, Chemicals Chemicals chemical Products EBITDA: Adj. 12/31/03) EBITDA: company $93.9 Margin: $132.2 $111.3 with $321.2 Margin: leading Margin: 12.2% 17.4% 25.6% market 16.7% positions in indus
Slide 5: FMC Strengths
FMC Strengths Leading Global Diversified Focused Strong Proven credit presence management market R&Dbusiness and profile and integrated positions strong mix withand applications extensive costhigh-quality structure industry expertise customer experience base
Slide 6: Industrial Chemicals Overview
Industrial 2003 Foret Alkali Peroxygens Asia North South Europe/Middle Excludes #1 Backward Low-cost, North 6% Consolidated 33% America (Soda American phosphorus Chemicals: proprietary integration 20% ash) 51% 8% East/Africa 47% Sales: manufacturer chemicals Group into production $770.6 natural 35%
Slide 7: Industrial Chemicals Performance
Industrial ($ 16.2% 17.3% 12.2% – ‘01-’02 Capacity Continued 2003 Hydrogen Lower$87 $28 $39 effective affiliate in recession, Chemicals: mothballs $753 $771 millions) peroxide productivity capacity earnings overcapacity $822 price and ‘01-’03 and utilizations shutdowns from increases cost-saving Per
Slide 8: Outlook: Domestic Hydrogen Peroxide
Outlook: Domestic Domestic prices increased Hydrogen 5% Peroxide in 2003 (versus year-end 2002) and are expected to increase another 5% in 2004
Slide 9: Outlook: Domestic Soda Ash
Outlook: Domestic Increasing demand and Sodatight Ashsupply have led to the first domestic price increase in several years
Slide 10: Outlook: Astaris Restructuring and De-leveraging
Outlook: Gradual Significant De-leveraging – Exit ofimprovement Product Substantial Solutia, Expectation Possiblecommodity Astaris our transfers improvement refinancing restructuring improvement JV of and $40 partner, refinancing and STPP million underway ofplant in at Astaris provided Astaris: sell
Slide 11: Outlook: European Peroxygens and Phosphorus
Outlook: European Steady Phosphorus After – Rhodia’s Foret Price Hydrogen Peroxide a recovery strong has Foret Industrial price shutdown recovered chemicals peroxide 2003, – across is increase beginning Chemicals peroxygens of demand STPP inall STPP aofproduct slow volume 8% growth facility in recov
Slide 12: Specialty Chemicals Overview
Specialty 2003 Lithium BioPolymer Asia North South Europe/Middle BioPolymer: Lithium: – Acts Market Focus 15% Consolidated America ason 29% –aleader Chemicals: One binder specialty 71% – Adds 41% 8% East/Africa of in&two every Sales: disintegrant structure, products—pharmaceuticals Group global, pro
Slide 13: Specialty Chemicals Performance
Specialty ($ 25.9% 23.8% 25.6% – BioPolymer Decline Lithium Productivity $472 $488 $516 in Chemicals: in refocused millions) $28 $24 lithium growth initiatives sales in‘01-’03 of‘03 5% result during onper Performance specialty inyear ‘01-’02 improved during markets duemargins the to exit ‘01-’03 inc
Slide 14: Outlook: BioPolymer and Lithium
Outlook: Solid BioPolymer Leading – Technology Leading Industry Globally Disproportionately Specialty Pharmaceutical Energy growth lithium Specialty storage: global leading integrated polymers: franchises driven investments chemistry position synthesis: 17% formulation Chemicals by higher and 28% of
Slide 15: Agricultural Products Overview
Agricultural 2003 Herbicides Insecticides Asia North South Europe/Middle Manufacturer Key FMC – The Focused Strategy crops: 15% Consolidated differentiated America depthof innovation 24% cotton, 76% and Products: outsourced of36% 32% East/Africa breadth proprietary, corn, Sales: by:(R&D Group rice,
Slide 16: Agricultural Products Performance
Agricultural ($ 15.4% 16.1% 17.4% – Declining ‘01 Strong Significant 2003 Margin exit $22 $21 $16 growth underlying in improvement from $615 $640 millions) global Products: refocusing in pre-emergent Brazil, chemical ‘01-’03 $653 ‘01-’03 driven and non-crop growth crop related herbicides by Performa
Slide 17: Outlook: Agricultural Products Earnings Growth
Outlook: Earnings Productivity Near-term Long-term – Manufacturing SG&A New Global Novel Many Several Commercial labels chemistries ISK supply alliance leverage Agricultural growth ofgrowth growth these to chemistry inopportunity result core chain through outsourcing with across novel from resulting
Slide 18: Financial Objectives
Financial FMC Continued No Foreign Maximize Reestablish dividends share is committed currency repurchases Objectives liquidity debt a full reduction and investment-grade to andenergy strengthening address through hedging near-term use rating itscontracts ofcredit cash maturities profile from to redu
Slide 19: Significant Collateral
Significant ($ Other Collateral Second First Principal Debt Fixed FMC Total (1) (2) (3) (4) (6) domestic Limited Excess Consists Includes Lien $Wyoming Assets First 612 Lien in Properties real Secured $872 value Lien Collateral to millions, current of Secured (5) property 10% the $248 Stock Assets $
Slide 20: Credit Statistics
Credit 12/31/2003 Interest Capital Net Adj. (Adj. (1) impairments (2) (3) Income Interest Long-term Debt EBITDA EBITDA Statistics Expenditures Expense /(3) Adj. (loss) expense and 1,001 /(1) debt -EBITDA Interest CapEx) (2) gain from $ net 321 net 84 87 on continuing $43 of Exp. /divestitures 3.1x I
Slide 21: Capital Structure and Debt
Capital 12/31/02 ($ $ Debt Term 10.25% Public Other Industrial Foreign Restricted Cash Stockholders’ Total Net 250 - millions) Debt Debt/Total 89.6 Debt Cash Capital Loan million Public Debt Structure Notes Debt 12/31/03 $Revenue (32.6) Cash $902.8 Due due 1,267.0 364.2 & (Total 64.3 Revolving Equit
Slide 22: Lengthened Maturities
Lengthened Our $69 6 2 3 248 357 783 million 92 successful Maturities refinancing in 2002 addresses our maturity profile
Slide 23: Free Cash Flow Outlook
Free Trough Captial Strong – Astaris Mothballed De-bottlenecking Manufacturing Last cash major Cash 2004 expenditures adjusted keepwells flow cash Flow component capacity generation EBITDA outsourcing flow ofshould ~$40 partially ofofPocatello million be over $300 relatively offset $320 million reme
Slide 24: Strategic Objectives
Strategic Unlocking Realize Create Focus – Achieve Drivethe Reduce Regain Grow Manage Divestgreater the cost Specialty underperforming Objectives an net portfolio Industrial peak value operating investment improvements debt financial Industrial and Chemicals toon Chemicals $600 creating leverage hig
Slide 25: FMC Corporation
FIC FMC Corporation
FMC — Citigroup 12th Annual Leveraged Finance High Yield Conference 2004 on 6ix