Fmc Corporation · NYSE:FMC
Fmc — Non-Deal Roadshow (November 2011)
30 slides from Fmc's roadshow presentation, Nov 3, 2011
Slide 1: FMC Corporation
FMC Corporation W. Kim Foster Executive Vice President and CFO Milton Steele President, Agricultural Products Group NY and Boston November 3-4, 2011
Slide 2: Disclaimer: Safe Harbor Statement
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 t
Slide 3: FMC Corporation LTM ending September 30, 2011
FMC Corporation LTM ending September 30, 2011 ($ millions) FMC Corporation Revenue: $3,280 EBIT: $593 EBIT Margin: 18.1% Agricultural Products Revenue: $1,390 EBIT: $338 EBIT Margin: 24.3% Focus Markets, Crops, Regions Specialty Chemicals Revenue: $862 EBIT: $195 EBIT Margin: 22.6% BioPolymer - Food
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 growth t
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: Five Key Elements: Growing Leadership Positions
Five Key Elements Growing Leadership Positions Organic Growth drives Sales to $4.2B Continued growth in leadership positions Innovation - rich pipeline across businesses Biasing growth to RDEs Selected high-return capital projects add upside to organic sales target External Growth increases Sales to
Slide 7: Key Themes By Business
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 Ingredients - growing
Slide 8: Agricultural Products
Agricultural Products An agile, innovative, customer-focused and highly profitable business with: $2.3B Sales $575M EBIT @ 25% EBIT Margin 30-40% of 2015 Sales generated from products introduced during the plan period Strategic Roadmap Continued successful execution of Differentiator Strategy Realiz
Slide 9: Organic Growth -- Rich Pipeline of EBIT Growth Opportunities
Organic Growth -- Rich Pipeline of EBIT Growth Opportunities Organic Growth Contribution to EBIT Innovation: Technologies to differentiate existing chemistries, e.g., increased control at lower use rates Access to third party chemistries Continue to extend and/or expand product life cycles Market Ac
Slide 10: Organic Growth -- Active Projects Have Potential to Add >$300M EBIT
Organic Growth -- 19 Active Projects Have Potential to Add >$300M EBIT at Maturity Strategically / Financially Attractive Bubble size represents maturity EBIT/Cash Flow. Some projects projected to not reach maturity until > 2015. $40M
Slide 11: External Growth -- Highly Focused and Disciplined Approach
External Growth -- Highly Focused and Disciplined Approach Components of Vision 2015 EBIT External Growth Opportunities External growth builds on existing organic growth platforms, focused on aggressively pursuing: Product line and technology acquisitions, e.g. Fluthiacet-methyl In-licensing Access
Slide 12: Specialty Chemicals
Specialty Chemicals Global leader in functional chemistries serving Food, Pharmaceutical and Energy Storage markets $1.5B Sales / $375M EBIT Well positioned in attractive end market segments Strong global presence Increasing levels of sustainable organic growth Potential to supplement growth through
Slide 13: Food Ingredients
Food Ingredients A $700M specialty ingredient supplier solving customer's global product development needs through innovative ingredient solutions Market Drivers Health & Nutrition Convenience Indulgence Rising Incomes (RDEs) Value FMC Starting Position Sales of ~$370M in 2010 Medium size, global in
Slide 14: Food Ingredients Market -- ~4% Stable Annual Growth
Food Ingredients Market -- ~4% Stable Annual Growth $35B space fragmented by end-use applications and ingredient technology Percent of Category Natural Colors Synthetic Colors Flavor Enhancers Flavors Gelatin Soy concentrate Soy isolates Dairy whey fractions Dairy caseinates Pectin Gums Cellulosic S
Slide 15: Pharmaceuticals
Pharmaceuticals $500M leading value-added supplier addressing customers' needs with enabling solutions for Active Pharmaceutical Ingredients Market Drivers Aging demographic and increasing access to medicines Increasing generic penetration Broad cost pressures across system Strong growth in RDE's Ch
Slide 16: Lithium
Lithium $350M supplier of lithium chemistries profitably serving a broad base of customers in the Energy Storage, Polymers, Synthesis and Industrial markets Market Drivers Portable electronics growth Energy diversification Energy/environmental policies Long term supply availability RDE growth in dow
Slide 17: Lithium Demand 2010-2020 (LCE)
Lithium Demand 2010-2020 (LCE) Transportation: ~35% CAGR New applications: ~35% CAGR (2015-2020) Consumer electronics: ~10% CAGR Conventional applications: 3.5% CAGR Conventional applications include glass/ceramics, grease/lubricants, construction, industrial, air treatment, downstream, and others N
Slide 18: Industrial Chemicals
Industrial Chemicals Group of high performance businesses - created through restructuring, transformation and innovation-driven growth that delivers: Sustained Sales/EBIT growth Greater earnings stability Strong cash generation Above hurdle rate returns across economic cycles Attractive portfolio of
Slide 19: Soda Ash
Soda Ash An $800M global leader in natural soda ash and specialty sodium salts with respect to cost position, innovation and profitability Market Drivers GDP growth in mature markets Growth in industrial production and per capita consumption in RDEs Supply / Demand balance regionally and globally Re
Slide 20: Global Peroxygens
Global Peroxygens A $375M leading global supplier of oxidation solutions to environmental, anti-microbial, and other specialty markets building on our peroxygens chemistries and adjacent technologies Market Drivers Growth of core demand in North America and Western Europe with economic recovery Grea
Slide 21: Peroxygens Mix Shift Driven by Specialty Applications
Peroxygens Mix Shift Driven by Specialty Applications Specialties Specialties sold on attributes: Efficacy Sustainability Intellectual Property Commodities Commodities sold on Price
Slide 22: Five Key Elements: Increasing our Reach
Five Key Elements Increasing our Reach 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 Asia -- targeting investments in human, scientific and t
Slide 23: Five Key Elements: Capturing Value of Common Ownership
Five Key Elements Capturing Value of Common Ownership Shifting to balanced centralized / decentralized model to better leverage size and scale Acting as “One FMC” realizing efficiencies while maintaining strong accountability in our business units Priority areas Procurement - year end run rate cash
Slide 24: Five Key Elements: Proactively Managing Portfolio
Five Key Elements Proactively Managing Portfolio All current businesses well positioned for sustained growth Phosphates exit EO2010 and Percarbonates exit EO2011 transforms Industrial Chemicals Higher margins (e.g., LTM 9/30/2011 EBIT margin of 13.6%, stronger cash generation, and greater earnings s
Slide 25: Five Key Elements: Disciplined Cash Deployment
Five Key Elements Disciplined Cash Deployment Expect cumulative cash of ~$3B for deployment over 2010 - 2015 Delivering on organic growth goals generates ~$2B cash flow ~$1B additional debt capacity consistent with solid investment grade credit rating External growth strategy not expected to consume
Slide 26: Vision 2015 FMC The right Chemistry
Vision 2015 FMC The right Chemistry
Slide 27: Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
Glossary of Financial Terms & Reconciliations of GAAP to Non-GAAP
Slide 28: 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 EBIT (Earnings Before Interest and Taxes) is the sum of Adjusted Inc
Slide 29: EBIT Reconciliation: LTM 9/30/2011
EBIT Reconciliation: LTM 9/30/2011 Reconciliation of consolidated income from continuing operations before income taxes (a GAAP measure) to EBIT (a Non-GAAP measure) (Unaudited, in $ millions) Income (loss) from continuing operations before income taxes Net Income attributable to non-controlling int
Slide 30: Vision 2015 FMC The right Chemistry
Vision 2015 FMC The right Chemistry