FMC Corporation William G. Walter Chairman, President and CEO New York, NY February 8, 2007 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 For the FY ending December 31, 2006 ($ millions) FMC Revenue: $2,347.0 EBITDA: $455.0 Margin*: 19.4% Industrial Chemicals Revenue: $990.9 EBITDA: $161.2 Margin*: 16.3% Agricultural Products Revenue: $767.0 EBITDA: $182.4 Margin*: 23.8% Specialty Chemicals Revenue: $592.8 EBITDA: $150.1 Margin*: 25.3% * EBITDA margin Leading Market Positions Greater than 80% of Sales in Non-GDP Cyclical Markets Backward Integration and Global Sourcing Limited Dependence on Petrochemical Feedstocks |
3 Performance in 2006 ($ millions, expect per share data) $ % v. PY $ % v. PY FMC Sales 588.4 13 2,347.0 9 FMC EPS (1) 1.24 15 5.48 25 Operating Income (2) Agricultural Products 23.2 15 151.0 21 Specialty Chemicals 24.5 7 118.8 10 Industrial Chemicals 21.2 8 96.7 15 (1) Earnings before restructuring and other charges (2) Income from continuing operations before income taxes 4Q06 FY 2006 |
4 Realizing the inherent operating leverage within FMC - Sustained trend line earnings growth >10% per year (1) - Fourth year of recovery in Industrial Chemicals - Continued growth in Specialty Chemicals and Agricultural Products Maintaining financial strength and flexibility - Investing in higher growth businesses - Pursuing external growth opportunities - Returning cash to shareholders – dividend and share repurchase Focusing the portfolio on higher growth businesses - Managing Specialty Chemicals and Agricultural Products for growth - Managing Industrial Chemicals for cash Disciplined Approach to Unlocking Value (1) Earnings before restructuring and other income and charges |
5 Agricultural Products Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides FMC differentiated by: – Focused strategy in selected products, crops and regions – Shifting primary paradigm to shorter innovation cycle – Joint ventures, alliances and in-licensing – Global supply chain productivity improvements Insecticides 73% North America 28% Latin America 39% Asia 16% Europe/ Middle East/Africa 17% Herbicides 25% Fungicides 2% Based on 2005 Consolidated Sales |
6 BioPolymer 69% Lithium 31% Latin America 6% North America 39% Europe/Middle East/Africa 37% Asia 18% • 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: Specialty Chemicals Based on 2005 Consolidated Sales |
7 Industrial Chemicals Pursuing near-term sales growth thru higher volumes and prices Working to offset higher energy, raw material and transportation costs Favorable soda ash market conditions Near-term energy situation in Spain Asia 7% Alkali (Soda ash) 49% Peroxygens 18% Foret 33% Latin America 9% North America 50% Europe/Middle East/Africa 34% Asia 7% Based on 2005 Consolidated Sales |
8 FMC in Summary Great businesses, each with EBITDA of at least $150 million Double-digit trend line earnings growth - Earnings leverage in Industrial Chemicals - Continued growth in Specialty Chemicals and Ag Products Strategic and financial flexibility - Robust and growing EBITDA - Recent balance sheet de-leveraging - Low capex requirements Disciplined approach to unlocking value |
FMC Corporation # # |
10 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. |
11 Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 18 of FMC’s 2005 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. |
12 Reconciliation of Fiscal Year 2006 consolidated income from continuing operations before income taxes (a GAAP measure) to Fiscal Year 2006 EBITDA (a Non-GAAP measure (Unaudited, in $ millions) FY 2006 Income from continuing operations before income taxes $213.5 Add: Restructuring and other charges 74.8 EBITDA Reconciliation: FY 2006 Interest expense, net 32.9 Depreciation and amortization 131.8 EBITDA (Non-GAAP) $455.0 In process research and development 2.0 |
13 Reconciliation of Fiscal Year 2006 segment operating profit (a GAAP measure) To Fiscal Year 2006 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Industrial Specialty Agricultural Segment Chemicals Chemicals Products FY 2006 segment operating profit (GAAP) $96.7 $118.8 $151.0 Add: Depreciation and amortization 64.5 31.3 31.4 FY 2006 EBITDA (Non-GAAP) $161.2 $150.1 $182.4 Segment EBITDA Reconciliation |