![]() FMC Corporation Bank of America Investment Conference September 15, 2008 San Francisco, CA 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 LTM ending June 30, 2008 ($ millions) FMC Revenue: $2,857.7 EBITDA: $585.2 Margin*: 20.5% Industrial Chemicals Revenue: $1,183.7 EBITDA: $202.5 Margin*: 17.1% Agricultural Products Revenue: $976.3 EBITDA: $258.9 Margin*: 26.5% Specialty Chemicals Revenue: $702.0 EBITDA: $180.7 Margin*: 25.7% * EBITDA margin Leading Market Positions Greater than 80% of Sales in Non-GDP Cyclical Markets Diversified and Integrated Cost Structure Limited Dependence on Petrochemical Feedstocks |
![]() 3 Leading Market Positions (1) Based on 2007 consolidated sales (2) Shared Industrial Chemicals #1 in N.A. Soda Ash #1 in N.A. (2) Peroxygens #1 Globally Carrageenan #1 Globally Carbofuran #2 in N.A. Pyrethroids Agricultural Products #2 Globally Alginates Specialty Chemicals #1 Globally (2) #1 Globally Lithium Specialties Microcrystalline Cellulose Product Group Position (1) |
![]() 4 Diversified Customers and End Markets Greater than 80% of sales to non-cyclical end markets Long term relationships with blue chip customers No single customer represents more than 5% of sales Top 10 customers in total represent approximately 15% of sales 2007 Consolidated Sales Agricultural 34% Detergents 9% Pharmaceuticals 11% Food 8% Other 12% Glass/Fiberglass 4% Chemicals 6% Pulp & Paper 4% Electronics 2% Other 3% Bottle Glass 3% Non-Cyclical 81% Cyclical 19% Chemicals 4% |
![]() 5 Diversified and Integrated Cost Structure Low cost sourcing of raw materials • Backward integration: soda ash, lithium • Global sourcing of renewable resources: hardwood pulp, seaweed Low reliance on purchased raw materials • Total raw materials represented 28% of cost of sales in 2007 • No single raw material accounted for more than 8% of total raw material purchases in 2007 • Reduced volatility from limited use of petrochemical feedstocks Low energy demand requirements • Energy represents approximately 13% of cost of sales • Sourced from natural gas, electricity, coal and fuel oil |
![]() 6 Realizing the inherent operating leverage within FMC • Sustained earnings growth >10% per year (1) • 2008 expected to be the fifth straight year of growth in Industrial Chemicals’ soda ash business • 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 |
![]() 7 Insecticides 57% Herbicides 41% Fungicides 2% Agricultural Products Strong niche positions in the Americas, Europe and Asia Proprietary, branded insecticides and herbicides Strategic Focus: • Selected products, crops and regions • Shifting to significantly shorter innovation cycle • Reducing global supply chain and overhead costs Based on 2007 Consolidated Sales of $889.7 million North America 22% Asia Pacific 15% EMEA 17% Latin America 46% |
![]() 8 Lithium 32% BioPolymer 68% Specialty Chemicals BioPolymers add structure, texture and stability to food and act as binders & disintegrants for dry tablet drugs Lithium focus on downstream specialties - pharmaceuticals and energy storage devices Strategic Focus: • Growing core market segments • Commercializing new technology platforms • Identifying financially attractive bolt-on acquisitions Based on 2007 Consolidated Sales of $659.5 million Latin America 7% Asia Pacific 21% EMEA 36% North America 36% |
![]() 9 Industrial Chemicals #1 North American manufacturer of soda ash and peroxygens Backward integration into natural resources Low cost, proprietary production technologies Strategic Focus: • Managing for cash generation • Continued top line growth driven primarily by higher selling prices • Aggressive cost management Asia 7% Based on 2007 Consolidated Sales of $1,087.1 million Alkali (Soda Ash) 52% Peroxygens 16% Foret 32% North America 48% Latin America 11% EMEA 34% Asia Pacific 7% |
![]() 10 FMC in Summary Great businesses, each with EBITDA >$180 million Sustained double-digit earnings growth (1) Earnings leverage in Industrial Chemicals Continued growth in Specialty Chemicals and Ag Products Strategic and financial flexibility Robust and growing EBITDA Balance sheet de-leveraged Low capex requirements Disciplined approach to unlocking value (1) Earnings before restructuring and other income and charges |
![]() FMC Corporation Appendix Glossary of Financial Terms and Reconciliations of GAAP to Non-GAAP |
![]() 12 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. |
![]() 13 Segment Financial Terms These slides contain references to segment financial items which are presented in detail in Note 19 of FMC’s second quarter 2008 Form 10-Q. 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. |
![]() 14 Reconciliation of LTM 6/30/2008 consolidated income from continuing operations before income taxes (a GAAP measure) to LTM 6/30/2008 EBITDA (a Non-GAAP measure) EBITDA Reconciliation: LTM 6/30/2008 ( Unaudited, in $ millions) LTM 6/30/2008 Income (loss) from continuing operations before income taxes $381.2 In-process research and development 1.0 Restructuring and other charges/(income), net 42.2 Interest expense, net 33.5 Loss on Extinguishment of Debt 0.3 Depreciation and amortization 127.0 EBITDA (Non-GAAP) $585.2 |
![]() 15 Reconciliation of LTM 6/30/2008 segment operating profit (a GAAP measure) to LTM 6/30/2008 EBITDA (a Non-GAAP measure) (Unaudited, in millions) Segment EBITDA Reconciliation: LTM 6/30/2008 Segment Industrial Specialty Agricultural Chemicals Chemicals Products LTM 6/30/2008 segment operating profit (GAAP) $134.2 $148.6 $238.5 Add: Depreciation and Amortization 68.3 32.1 20.4 LTM 6/30/2008 EBITDA (Non-GAAP) $202.5 $180.7 $258.9 |
![]() FMC Corporation |