Slide 1: FMC Corporation Longbow Research Basic Materials Conference
FMC Corporation Longbow Research Basic Materials Conference W. Kim Foster Executive Vice President and CFO Mark Douglas President, Industrial Chemicals
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: LTM ending December 31, 2011 Overview
LTM ending December 31, 2011 ($ millions) FMC Corporation Revenue: $3,378, EBIT: $621, EBIT Margin: 18.4% Agricultural Products Revenue: $1,465, EBIT: $348, EBIT Margin: 23.8% • Focus markets, crops, regions Specialty Chemicals Revenue: $879, EBIT: $200, EBIT Margin: 22.7% • BioPolymer ◦ Food & Phar
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 grow
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 Vision 2015: Growing Leadership Positions
Five Key Elements Vision 2015 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 G
Slide 7: Key Themes By Business Vision 2015
Key Themes By Business Vision 2015 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 In
Slide 8: Agricultural Products Vision 2015
Agricultural Products Vision 2015 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 Different
Slide 9: Key Elements of Differentiator Strategy
Key Elements of Differentiator Strategy • Innovation through aggregating technologies • Market Innovation • Product Innovation • Virtual manufacturing - globally competitive cost structure • Disciplined focus on crops and applications were we have sustainable competitive advantage • High customer in
Slide 10: Agricultural Products: Serving Focus Markets Worldwide
Agricultural Products: Serving Focus Markets Worldwide 2011 Revenue by Product • Fungicides & Others: 9%, Herbicides 43%, Insecticides 48% 2011 Revenue by Region • EMEA: 10%, Asia Pacific 17%, North America 20%, Latin America 53% Typical Revenue by Crop 11-15% Each: Cotton, Soybean, Sugarcane, Fruit
Slide 11: Organic Growth Drives 2015 EBIT to ~$445M
Organic Growth Drives 2015 EBIT to ~$445M Market & Product Innovation: • Technologies to differentiate existing chemistries • Access to 3 rd party chemistries • Extend/expand product life cycles Market Access: • Alliances & investments to strengthen market access in focus markets Operational Improve
Slide 12: External Growth - Highly Focused and Disciplined
External Growth - Highly Focused and Disciplined Builds on existing organic growth platforms: • Product line and technology • acquisitions • Rovral and Sportak fungicide product lines from Bayer CropScience. • In-licensing • Access to various third party chemistries, • Kumiai herbicide (Japan) • ECU
Slide 13: Specialty Chemicals Vision 2015
Specialty Chemicals Vision 2015 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 sup
Slide 14: Food Ingredients Vision 2015
Food Ingredients Vision 2015 • 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 Position • Medium size, global innovator
Slide 15: Food Ingredients Market -- ~4% Stable Annual Growth
Food Ingredients Market -- ~4% Stable Annual Growth $35B space fragmented by end-use applications and ingredient technology Market Size ($B) Sensation • Natural Colors, Synthetic Colors, Sweeteners, Flavor Enhancers, Flavors Specialty Proteins • Gelatin, Soy Concentrate, Soy Isolates, Dairy Whey Fra
Slide 16: Pharmaceuticals Vision 2015
Pharmaceuticals Vision 2015 - $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 • Str
Slide 17: Lithium Vision 2015
Lithium Vision 2015 = $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 availabi
Slide 18: Lithium Demand 2010-2020 (LCE)
Lithium Demand 2010-2020 (LCE) • Energy storage/consumer electronics remains growth driver - smart phones and tablets • Transportation sector grows to 25% of 2020 demand - EV, HEV, PHEV light-duty vehicles (passenger cars); electric and hybrid buses; electric two-wheeled vehicles • New applications
Slide 19: Industrial Chemicals Vision 2015 & Key Elements
Industrial Chemicals Vision 2015 & Key Elements 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 econ
Slide 20: Soda Ash Vision 2015
Soda Ash Vision 2015= 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 regiona
Slide 21: Global Peroxygens Vision 2015
Global Peroxygens Vision 2015 = 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 econom
Slide 22: Peroxygens Mix Shift Driven by Specialty Applications
Peroxygens Mix Shift Driven by Specialty Applications Specialties Specialties sold on attributes: • Efficacy • Sustainability • Intellectual Property Commodities sold on • Price Market / Application Growth Rate Yellow= Core • Pulp, Mining, Polymer, Personal Care, Electronics, Green= Environmental •
Slide 23: Five Key Elements: Increasing our reach
Five Key Elements (Vision 2015) Growing Leadership Positions, Increasing our reach • Focus on Rapidly Developing Economies (RDEs) • Going where the growth is… • RDEs deliver 43% of FMC sales by 2011 • RDEs grow to >50% of FMC sales by 2015 • $2+B Sales; 9-11% CAGR • Latin America -- leveraging Agric
Slide 24: Five Key Elements: Capturing Value of Common Ownership
Five Key Elements (Vision 2015) Growing Leadership Positions, Increasing our reach, 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 o
Slide 25: Five Key Elements: Proactively Managing Portfolio
Five Key Elements (Vision 2015) Growing Leadership Positions, Increasing our reach, Capturing Value of Common Ownership, Proactively Managing Portfolio • All current businesses well positioned for sustained growth • Phosphates exit in 2010 and Percarbonates exit in 2011 transforms Industrial Chemica
Slide 26: Five Key Elements: Disciplined Cash Deployment
Five Key Elements (Vision 2015) Growing Leadership Positions, Increasing our reach, 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 ca
Slide 27: Vision 2015 FMC • The Right Chemistry
Vision 2015 FMC • The Right Chemistry