![]() FMC Corporation Morgan Stanley Small Cap Chemicals Roundtable New York, NY November 30, 2005 William G. Walter Chairman, President and CEO Exhibit 99.1 |
![]() 1 Disclaimer Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 • 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 the forward-looking statements. • Additional information concerning factors that may cause results to differ materially from those in the forward-looking statements is contained in the Company’s periodic reports filed under the Securities Exchange Act of 1934, as amended. • The Company undertakes no obligation to update or revise these forward- looking statements to reflect new events or uncertainties. Non-GAAP Financial Terms • These slides contain certain “non-GAAP financial terms” which are defined in the appendix. In addition, we have provided reconciliations of non-GAAP terms to the closest GAAP term in the appendix. |
![]() 2 FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ millions, LTM ending September 30, 2005) FMC Sales: $2,141.7 EBITDA: $420.5 EBITDA Margin: 19.6% Industrial Chemicals Sales*: $866.7 EBITDA: $150.5 EBITDA Margin: 17.4% Agricultural Products Sales*: $728.8 EBITDA: $160.4 EBITDA Margin: 22.0% Specialty Chemicals Sales*: $549.6 EBITDA: $140.0 EBITDA Margin: 25.5% * Segment sales figures exclude $3.4 million in eliminations. |
![]() 3 Realizing the inherent operating leverage within FMC - Sustained earnings growth >10% per year (1) - Industrial Chemicals recovery in mid-cycle in 2005 - Continued growth in Specialty Chemicals and Agricultural Products Creating greater financial flexibility - Maintain investment grade capital policies - Repatriation of cash under the American Jobs Creation Act. - Reduce net debt to approx. $420 million by the end of 2005 Focusing the portfolio on higher growth businesses - Manage Specialty Chemicals and Agricultural Products for growth - Manage Industrial Chemicals for cash - Completed Astaris divestiture in November 2005 - Improve ROIC to 12% minimum by 2006 Disciplined Approach to Unlocking Value (1) Earnings before restructuring and other income and charges |
![]() 4 Industrial Chemicals #1 North American manufacturer of soda ash and peroxygens Backward integration into natural resources Low cost, proprietary production technology Foret is a leading Iberian producer of inorganic chemicals Asia 7% Alkali (Soda ash) 46% Peroxygens 19% Foret 35% Latin America 8% North America 50% Europe/Middle East/Africa 35% Asia 7% Based on 2004 Consolidated Sales of $813.7 million |
![]() 5 Industrial Chemicals Financial Performance Earnings growth of 45% expected in 2005 driven by higher selling prices, partially offset by higher energy, raw material and transportation costs $151 $124 $130 $133 $94 0 50 100 150 200 2001 2002 2003 2004 LTM 9/30/05 0% 5% 10% 15% 20% EBITDA Capital Spending EBITDA Margin |
![]() 6 Industrial Chemicals’ Focus Managing for cash generation Near-term sales growth – Higher selling prices for soda ash – Incremental soda ash capacity addition at Granger – US and European peroxides producers have announced price increases Margin expansion - Working to offset rising energy, raw material and transportation costs |
![]() 7 BioPolymer 72% Lithium 28% Latin America 8% North America 41% Europe/Middle East/Africa 36% Asia 15% • One of two global, integrated manufacturers • Focus on specialty products – pharmaceuticals and energy storage devices Lithium: • Adds structure, texture and stability to food • Acts as a binder & disintegrant for dry tablet drugs • Market leader in every product line BioPolymer: Growth Franchises in Specialty Chemicals Based on 2004 Consolidated Sales of $538.0 million |
![]() 8 Specialty Chemicals Financial Performance $122 $116 $140 $129 $132 0 40 80 120 160 2001 2002 2003 2004 LTM 9/30/05 20% 22% 24% 26% 28% 30% EBITDA Capital Spending EBITDA Margin 2005 earnings growth expected to be approximately 15%, driven by increased selling prices and productivity improvement |
![]() 9 Specialty Chemicals Focus Growing existing core business – Maintaining key positions with category leading customers – Shifting resources toward faster growing segments – Expanding presence in rapidly growing emerging markets Commercializing new technology platforms Managing maturing segments for improved earnings and cash Identifying financially attractive bolt-on acquisition opportunities to further expand our franchises |
![]() 10 Agricultural Products Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides FMC differentiated by: – Focused strategy in selected markets, crops and regions – Leverage proprietary products and third party products/technologies – Depth and breadth of alliances and partnerships – Manufacturing cost competitiveness via sourcing from lower cost regions Insecticides 73% North America 35% Latin America 36% Asia 13% Europe/ Middle East/Africa 16% Herbicides 25% Based on 2004 Consolidated Sales of $703.5 million Fungicides 2% |
![]() 11 Agricultural Products Financial Performance $114 $101 $99 $111 $148 $160 0 25 50 75 100 125 150 175 2000 2001 2002 2003 2004 LTM 9/30/05 0 5 10 15 20 25 EBITDA Capital Spending EBITDA Margin Earnings growth of 5% expected in 2005, reflecting higher sales and lower manufacturing costs partially offset by lower bifenthrin pricing and higher raw materials costs. |
![]() 12 Agricultural Products’ Focus Creating competitive advantage through innovation – Investing 10% of sales in R&D – In-licensing products & technologies that complement segment strategies Driving near-term sales growth – Label expansions and new formulations in crop and non-crop segments – In-licensed products, e.g., flonicamid and acetamiprid with maturity sales of ~$50-90 million Strengthening Market Access – Distribution joint ventures & alliances – Third party products Reducing global supply chain and overhead costs – Sourcing initiatives should produce additional manufacturing savings – Further redesign of global supply network – Market access strategies/alliances drive SG&A reductions |
![]() 13 FMC in Summary Great businesses, each with EBITDA of at least $140 million Double digit earnings growth - Earnings leverage in Industrial Chemicals - Continued growth in Specialty Chemicals and Ag Products Strong financial position - Robust and growing EBITDA - Substantial decline in unusual demands on cash flow - Balance sheet de-leveraging - Low capex requirements Strategic and financial flexibility |
![]() 14 3.8 4.2 4.4 5.5 5.8 6.0 6.0 6.1 6.8 7.1 7.3 7.4 7.7 8.1 OLN CEM LYO FMC FUL ARJ HPC MTX RPM CBT LZ CYT ALB VAL FMC Remains Significantly Undervalued Source: Bloomberg and Thomson First Call EV/2006E EBITDA |
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![]() 16 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 Amortization) is the sum of Income (loss) from continuing operations before income taxes and Depreciation and Amortization. EBITDA Margin is the quotient of EBITDA (defined above) divided by Revenue. ROIC (Return on Invested Capital) is the sum of Earnings from continuing operations before restructuring and other income and charges and after-tax Interest expense divided by the sum of Short-term debt, Current portion of long-term debt, Long-term debt and Total shareholders’ equity. |
![]() 17 Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 18 of FMC’s 2004 Form 10-K. Some of the segment financial terms are “non-GAAP financial terms” and 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 Amortization) for a segment is the sum of Income (loss) from continuing operations before income taxes for that segment and Depreciation and Amortization for that segment. EBITDA Margin for a segment is the quotient of EBITDA (defined above) divided by Revenue for that segment. |
![]() 18 Reconciliation of LTM 9/301/2005 consolidated income from continuing operations before income taxes (a GAAP measure) to LTM 9/30/2005 EBITDA (a Non-GAAP measure) (Unaudited, in $ millions) LTM 9/30/2005 Income (loss) from continuing operations before income taxes $133.3 Add: Restructuring and other charges 24.4 Interest expense, net 64.8 Write-off of deferred financing fees 9.9 Affiliate Interest Expense 0.9 Depreciation and amortization 138.1 EBITDA (Non-GAAP) $420.5 EBITDA Reconciliation: LTM 9/30/05 Gain on Sale of Investment (9.3) Loss on Extinguishment of Debt 58.4 |
![]() 19 Reconciliation of LTM 9/30/05 segment operating profit (a GAAP measure) to LTM 9/30/05 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Industrial Specialty Agricultural Segment Chemicals Chemicals Products LTM 9/30/05 segment operating profit (GAAP) $82.6 $106.9 $128.3 Add: Depreciation and amortization 67.9 33.1 32.1 LTM 9/30/05 EBITDA (Non-GAAP) $150.5 $140.0 $160.4 Segment EBITDA Reconciliation |