Fmc Corporation · NYSE:FMC
Fmc — Bear Stearns Fourteenth Annual Global Credit Conference 2005
42 slides from Fmc's conference presentation, May 17, 2005
Slide 1: FMC Corporation at Bear Stearns Fourteenth Annual Global Credit Conference
Exhibit 99.1 FMC17, Bear May Thomas Stearns Corporation C. 2005 Deas, Fourteenth Jr. ViceAnnual President Global & Treasurer Credit Conference
Slide 2: Safe Harbor Statement and Company Disclaimer
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 ($ FMC Industrial Specialty Agricultural Revenue: * 2 EBITDA million, Corporation Chemicals $2,097.9 $833.8 $540.1 $728.2 Chemicals LTM margin chemical Products as EBITDA: EBITDA: ofcompany 3/31/05) $140.4 $132.7 $161.6 $406.6 withMargin*: leading Margin*: market 16.8% 24.6% 22.2% 19.4%
Slide 4: Company Strengths
Company Leading Global Diversified 3 presence market Strengths business positions mix and high-quality customer base Diversified and integrated cost structure Focused R&D and strong applications expertise Commitment to strong credit profile
Slide 5: Leading Market Positions
Leading Industrial Agricultural Specialty Product Soda Hydrogen Phosphorus Persulfates Pyrethroids Carbofuran Microcrystalline Carrageenan Alginates Lithium (1) (2) Note: 4 Shared Held Ash Based Market Specialties Market byChemicals #1 Chemicals #2 Peroxide #1 #1 Astaris, #2 Chemicals Products on #1
Slide 6: Global Presence and Market Positions
Leading Industrial Agricultural Specialty Product Soda Hydrogen Phosphorus Persulfates Pyrethroids Carbofuran Microcrystalline Carrageenan Alginates Lithium (1) (2) Global Geographically North 43 Latin Asia 11 Europe, Note: 5 % Shared Held Pacific Ash America Based America Presence Market Middle Spe
Slide 7: Diversified Revenues and End Markets
Diversified Revenues Non-Cyclical Bottle Food Pharmaceuticals Detergents Agricultural Other Electronics Glass/Fiberglass Pulp Chemicals Cyclical Approximately Top Note: 6 10 &8% Based 12% 3% Glass customers Paper 19% by 4% 6% 9% 2% Customers 34% on 3% End 81% 4%80% 2004 11% 4% Market in aggregate of
Slide 8: Diversified, Low-cost 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 Objectives Unlocking Realize Sustained Industrial Continued Create Reduce Regain Focus Manage Divest Improve Before 9 the greater any restructuring an the net Specialty Industrial ROIC Chemicals portfolio double-digit investment growth value business operating debt financial toto and 12 Chemical
Slide 11: Industrial Chemicals
MC Industrial Chemicals 10
Slide 12: Industrial Chemicals Overview
Industrial LTM Foret Peroxygens Alkali Asia Europe/Middle Latin North Excludes #1 Backward Low-cost, Note: 11 North 7% 3/31/05 America 35% Based America (Soda American phosphorus Chemicals proprietary integration 19% on ash) Consolidated 8% 50% East/Africa 2004 46% manufacturer Overview consolidated
Slide 13: Industrial Chemicals Expected 2005 Outlook
Industrial Expected 2005 Successful Significant Peroxide Higher Peak Partially Freight Balance Increased 12 soda earnings total selling and isoffset price to volumes Chemicals ash price raw price improvement energy beprices to increase materials: by main realization increase becost and account up dr
Slide 14: Industrial Chemicals Performance
Industrial 13 Now $’s 1998 Capital 03/31/05 EBITDA Margin, 25% Millions 20% emerging 1999 Spending %Margin Chemicals 15% 2000 $250 from 10% 2001 (%) $200 5% 2003 Performance 2002 $150 0%trough 2003 $1002004 profits $50 LTM $0that $194 were $208 more $177 than $133 $100 $130 million $94 below $124 $1
Slide 15: Soda Ash Demand Drivers
SodaGlass North Demand Cost GDP Industrialization Glass Export 14 Flat Other Detergents Chemicals advantage Ash Container American Drivers: Demandof Soda rates natural Ash in key soda Shipments export ash versus markets synthetic soda ash
Slide 16: U.S. Soda Ash Cost Curves and Positions
U.S.1.2 Share General OCI Solvay 29% SVM Cost 1.6 FMC 15 Competitors Soda 20% Curves Index Solution Longwall of0.8 Wyoming Colorado Nameplate 17% Ash 0.4 Base0Mining Supply 19% Mining = Solution Capacity 6%&9% Cost Mining Positions
Slide 17: Sold-out Soda Ash Market
Sold-out Soda 1.2 1990 1992 91 1998 2001 2000 2003 2005 2005F 100% U.S. 16 1.1 Bulk Capacity Ash domestic 19 1993 1999 2002 2004 Contract 95% 1 U.S. 0.9 Price 1994 90% 0.8 Soda Utilization Renewals price Index 85% 1995 Ash increase (1990 1996 Industry Price (%1997 =Effective) is1.0) Index the most E
Slide 18: Tight Hydrogen Peroxide Market
Tight 2005 Hydrogen 1.2 1994 1996 2002 2001 2000 1999 1998 Price 2005F 2004 100 Effective 17 1.1 952003 to 1995 1997 Index Domestic 1represent 900.9 Capacity Peroxide 850.8 80Hydrogen 0.7 75 the Util. Utilization 70 Price 0.6 thirdIndex Peroxide consecutive (%, (1994=1.0) North Market year America)
Slide 19: Specialty Chemicals
MC Specialty Chemicals 18
Slide 20: Specialty Chemicals Overview
Specialty LTM Lithium BioPolymer Asia Europe/Middle North Latin BioPolymer: Acts Market Lithium: Focus Note: 19 15% as 3/31/05 America Based America on leader a28% –binder specialty Chemicals One 72% on –Consolidated in 8% Adds 41% East/Africa 2004 of & every two disintegrant products structure, Ove
Slide 21: Specialty Chemicals Performance
Specialty The $’s $125 $50 $75 2000 $0 EBITDA 03/31/05 $127 25% 30% 10% 15% Margin, 0% 20 Millions $25 benefit 20% 5% $100 2001 $122%Capital Chemicals 2002 $116 of $150 continued $132 2003 Spending Performance $129 2004 sales EBITDA $133 LTMgrowthMargin has recently (%) been offset by cost pressures
Slide 22: Specialty Chemicals Expected 2005 Outlook
Specialty Expected 2005 Strong Focus Earnings Productivity Raw Promising Oral-dosage-form Functional Fine 21 chemistry materials revenue on organic growth lithium to Chemicals new food be improvements, growth to growth the applications products ingredients rate remain specialty technologies long-ter
Slide 23: Agricultural Products
MC Agricultural Products \ mw Wer Whe
Slide 24: Agricultural Products Overview
Agricultural LTM Fungicides Herbicides Insecticides Asia Europe Latin North Proprietary, Key FMC Focused Cost The Note: 23 depth crops: 13% reduction 3/31/05 America differentiated Based America Middle innovation and 25% cotton, 2% branded 73% Products on Consolidated breadth 36% strategies 35% East
Slide 25: Agricultural Products Significant Recovery
Agricultural Significant $’s 2000 Margin, 03/31/05 25% Capital EBITDA 24 Millions 20% 2001 Spending %Margin 15% 2002 recovery $175 Products 10% 2003 (%) $150 5% driven Performance 2004 $125 0%by LTM $114 $100 improving $101 $75 $50 $99 global $25 $111$0 farm $148economy, $162 strength in Brazil and
Slide 26: Agricultural Products Expected 2005 Outlook
Agricultural Expected Flat-to-modest Growth Brazilian Unfavorable 2005 Continued Higher In-licensed 25 earnings sales raw inmarket tonew progress products material remain Products impact growth revenue products to remain strong in of and to2005 of reducing price contribute growth and freight about n
Slide 27: Financial Overview
FMC Financial Overview
Slide 28: Strong 1st Quarter Results
Strong Outstanding A Continued Even Improvement Sales Significant Higher Sold-out Steady Earnings Poised Over 2714% one stronger increase 2005 to top-line growth year-over-year domestic market of up full reach growth improvement $21.6 15% performance 1st year in earnings of in growth net Quarter Ind
Slide 29: Multi-Year Recovery in Sales and Earnings
Multi-Year We Sales, 2,200 1,800 1,200 2000 6.00 EPS Sales 4.00 1.00 EPS*, * 28Earnings remain 5.00 -3.00 2001 2,000 1,600 1,000 $$ millions 2.00 2002 before on Recovery 1,400 track 2003 restructuring to 2004 deliver 2005E a and sustained other income multi-year andrecovery charges per in sales dilu
Slide 30: Contingent Legacy Obligations Update
Contingent Legacy As-of Astaris TG FTI Note: *** 29 Soda TG Guarantees *2001 Keepwell contingent Reflects Soda Ash Obligation YEAsh Payment*** Current $50% Payments 289 final obligations of million Update payment Astaris’ $75 $111.9 $4 have million of total million million* $32.4 largely debt $ -mil
Slide 31: Credit Statistics
Credit3/31/2005 LTM Interest Capital Total EBITDA (EBITDA 30 Debt Statistics Expenditures Expense, /$406 -Interest /909.6 CapEx) EBITDA net Exp. / 75 Interest 86 2.2x 5.4x Exp. 4.3x
Slide 32: Capital Structure
Capital 12/31/2003 ($ $250 Debt $100 $400 10.25% Industrial Other Short-term Restricted Cash Stockholders’ Total Net 31 - millions) Debt Debt/Total Term million 57.0 Debt Cash Capital Public Structure Notes $856.3 Revenue 212.4 Cash $1,050.2 $193.9 Loan Debt 12/31/2004 Domestic Revolving (Total Equi
Slide 33: Lengthened Debt Maturities
Lengthened Our 2004 32 successful 2005 2006 Maturities refinancing 2007 2008in2009 20042010+ of our$1bank $70 facilities $10 $63 addressed $88 $417 $248 our maturity profile $ - millions $450 $400 $350 $300 $250 $200 $150 $100 $50 $0
Slide 34: Summary
Great businesses, Summary requirements 33 Substantial each with decline EBITDA in unusual of at least demands $130 on million cash Industrial flow Continued Chemicals improvements earnings only in credit at mid-cycle quality in 2005 Steady growth in Specialty Chemicals and Ag Products Low capital ex
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: Appendix: Reconciliation (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: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation (Unaudited, LTM Income income Restructuring Add: Interest Write-off Affiliate Depreciation EBITDA 38 3/31/2005 taxes (loss) expense, Interest (Non-GAAP) ofEBITDA in deferred and $and from millions) of 178.7 Expense net amortization LTM other continuing Reconciliation 75.0 fi
Slide 40: Appendix: Segment EBITDA Reconciliation
Appendix: Reconciliation (Unaudited, Industrial Segment Depreciation Add: LTM 39 03/31/2005 Chemicals Specialty Segment inand millions) of EBITDA segment amortization LTM Agricultural Chemicals EBITDA 03/31/2005 operating (Non-GAAP) Reconciliation 68.2 Products segment 32.8 profit29.3 $140.4 (GAAP)
Slide 41: Appendix: ROIC Reconciliation
Appendix: Reconciliation expense, (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 — Bear Stearns Fourteenth Annual Global Credit Conference 2005 on 6ix