Exhibit 99.1
Exhibit 99.1
VISION 2015
THE RIGHT CHEMISTRY
VISION 2015
Pierre Brondeau, President, CEO and Chairman
Vision 2015
Launching from a Position of Strength
Strong Recent Financial and Operational Performance
Proven record of superior financial performance Business portfolio well positioned —most with margins and asset returns well above peers Strong financial position — liquid balance sheet, high return on assets and substantial free cash flow Performance has created premium shareholder value
17% CAGR Total Shareholder Return over 2002 to 2009, top quartile of our industry
Driving Revenue and EBIT Growth, Returning Shareholder Value
Growing Leadership Positions Increasing our Reach Capturing the Value of Common Ownership Proactively Managing Our Portfolio Strong Financial Performance, Disciplined Cash Deployment Goal of maintaining top quartile Total Shareholder Return
Our Vision for FMC in 2015
Sales of $5+B and EBIT of $1.2+B
Sustained mid-teens return on invested capital
Significantly greater earnings stability
Strong cash generation with disciplined cash deployment
Premium TSR performance
Vision Five Key Elements
2015
Growing Leadership Positions
Organic Growth drives Sales to $4.0—$4.5B
Continued growth in leadership positions
Attractive end markets
Innovation—rich pipeline across businesses
External Growth increases Sales to $5B
Focused, disciplined strategy to include M&A,
product and technology acquisitions
Strategy reduces risk normally inherent in
external growth
No plan to add a new business “leg” to portfolio
Innovation — Rich Pipeline Delivers >50% of Organic Growth
Sales ($B)
4.2
2.8
2009 APG SCG ICG 2015 Organic
Growth From Innovation
Other Growth (1)
Portfolio highly levered to faster growing (>>GDP) end markets
Primarily products derived from technologies already practiced in the industry Agricultural Products — market and product innovation, market access Specialty Chemicals — new products, new applications for existing products Industrial Chemicals — new applications for existing chemistries (1) Other Growth Price, Volume, Mix, etc.
External Growth Strategy
Focused Strategy
Agricultural Products
Strengthen organic growth platforms by acquiring new products and technologies Limited, selective M&A principally in adjacent spaces Specialty Chemicals Food Ingredients top M&A priority Product line and RDE expansion Industrial Chemicals Selective M&A focused in specialty applications
Disciplined Approach
Proactive, aligned with clear strategic intent in selected spaces Clear portfolio objectives and protocols for managing and delivering external growth Strong value creation emphasis, fully realizing growth potential Balanced evaluation metrics No large scale, complex, or transformational acquisitions
Vision Five Key Elements
2015
Growing Leadership Positions
Increasing Our Reach
Invest in human resources and physical infrastructure to enable global growth
Focus on Rapidly Developing Economies (RDEs)
Growing where the growth is…
RDEs deliver >50% of FMC sales by 2015 $2+B Sales; 9-11% CAGR
Latin America — leveraging Agricultural
Products’ leadership position
Asia — targeting investments in human, scientific and technological resources across businesses
Central and Eastern Europe, Turkey and Russia — focusing on internal growth in key countries supplemented by targeted M&A
Vision Five Key Elements
2015
Growing Leadership Positions
Increasing Our Reach
Capturing Value of Common Ownership
Shifting to balanced centralized / decentralized model to better leverage size and scale
Acting as “One FMC” realizing efficiencies while maintaining strong accountability in our business units Priority areas
Procurement
Global Supply Chain
RDE infrastructure
Vision Five Key Elements
2015
Growing Leadership Positions
Increasing Our Reach
Capturing Value of Common Ownership
Proactively Managing Portfolio
All current businesses well positioned for sustained growth Phosphates resolution transforms Industrial Chemicals
Higher margins, stronger cash generation, and greater earnings stability Continually assess portfolio and take actions as needed
FMC Has Unrivaled Portfolio
Agricultural
35
(%) RONA 30
25
20
2009 Pre-Tax 15
10
0
-5 0 5 10 15
S&P 500
FMC Agricultural Products
Cost of capital1
2009-12 Fwd Rev Growth (%)(2)
Specialty
(%) 35 30
RONA
25
20
2009 Pre-Tax 15 10
0
-5 0 5 10 15
S&P 500
FMC Specialty Chemicals
Cost of capital1
2009-12 Fwd Rev Growth (%)(2)
Industrial
35
(%) 30 RONA
25
20
2009 Pre-Tax 15 10
0
-5 0 5 10 15
S&P 500
FMC Industrial Chemicals
Cost of capital1
2009-12 Fwd Rev Growth (%)(2)
= Revenue ($MM)
(1) | | Cost of capital reflects range for broad industrial peer group |
(2) Revenue growth based on consensus estimates. Total company data used if segment data unavailable Note: Pre-Tax RONA = EBIT/identified Assets; based on segment data for each company where available. Source: Thomson Reuters Consensus; Analyst Reports; Compustat; BCG ValueScience
Vision Key Themes By Business
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 Ingredients — growing portfolio into other texturants and in RDEs through M&A
Pharmaceuticals — maintaining leading share and margin, selectively broadening portfolio Lithium — focusing on high growth Asian / Energy Storage markets
Industrial Chemicals
Soda Ash — market leadership and operational excellence Peroxygens — consolidating into global business, shifting to specialty applications Environmental — commercializing product pipeline and investing to accelerate growth
Vision Five Key Elements
2015
Growing Leadership Positions
Increasing Our Reach
Capturing Value of Common Ownership
Proactively Managing Portfolio
Disciplined Cash Deployment
Expect total of ~$3B in cash for deployment over 2010 2015
Cumulative free cash flow of ~$2B
~$1B additional debt capacity consistent with solid investment grade credit rating External growth strategy not expected to consume all cash available for deployment Expect to return meaningful amount of cash to shareholders over this period
Completed $100M share repurchase in 4th quarter 2010
Vision Delivering Our Vision
2015
Growing Leadership Positions
Increasing Our Reach
Capturing Value of Common Ownership
Proactively Managing Portfolio
Disciplined Cash Deployment
Confident that we can deliver on Organic Growth plans Sales growth consistent with past performance and in line with end market exposures Maintains and reinforces leadership positions, resulting in sustainable high returns Delivering Organic Growth goals alone will support substantial shareholder value creation Disciplined, value-creating External Growth strategy provides upside Balanced with returning cash to shareholders
VISION 2015
THE RIGHT CHEMISTRY
Agricultural Products
Milton Steele, Vice President and General Manager, Agricultural Products
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
Proven Differentiator Strategy continuing to deliver premium margins and sales growth Organic Growth driven by rich pipeline of EBIT growth projects External Growth initiatives focused on enhancing and expanding the portfolio
Key Elements of APG Differentiator Strategy
Innovation through aggregating technologies
Market Innovation
Product Innovation
Globally competitive manufacturing cost structure High customer intimacy Disciplined focus Flat, agile and empowered organization
Agricultural Products—Serving Key Agricultural Markets Worldwide
Fungicides & Other 7%
Herbicides 45%
Insecticides 48%
Asia Pacific 16%
EMEA 15%
North America 21%
Latin America 48%
Based on 2009 Consolidated Sales of $1,052M
Long-term global agricultural trends driving crop protection chemicals growth
Differentiator Strategy Has Delivered 23% EBIT CAGR 2002-2009
Sales 8% CAGR
615
1,052
2002 2009 ($M)
EBIT 23% CAGR
11% Margin
69
2002
27% Margin
289
2009 ($M)
EBIT growth driven by substantial margin expansion & solid sales growth
Major manufacturing cost reductions and restructuring Product line expansion via innovation, alliances, licensing and acquisitions in all regions Robust market innovation — ~25% of 2010 sales from new products introduced in the past 5 years
Differentiator Strategy Providing Superior Returns
2009 EBIT Margin
30% 20% 10% 0%
27%
Monsanto FMC Syngenta BASF Bayer DuPont Dow Nufarm MAI
Biotech
Tier 1 R&D
Global Generic
Source: Company Financials and FMC Analyses
Vision 2015 — Continuing to Deliver Premium Margins and Sales Growth
Sales 14% CAGR
(9% Organic)
1,052
2009
(
( millions) $M)
2,300
2015
EBIT 12% CAGR
(8% Organic)
27% Margin
289
2009
($M)
25% Margin 575
2015
Strategic Imperatives
Successful execution of Differentiator Strategy Realizing rich pipeline of organic EBIT growth projects Continued growth in all regions — numerous market expansion projects in various stages of implementation Increased supply chain productivity External Growth focused on product line acquisitions, licensing, development investments/alliances, accessing third-party active ingredients and adjacent spaces
Organic Growth — Rich Pipeline of EBIT Growth Opportunities
500
400
($ M) 300
200
Internal Growth Contribution to EBIT
289
445
2009
2015
Market / Product Innovation Market Access Operational Improvement
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 Access:
Alliances & investments strengthen market access in focus markets
Operational Improvement:
Maintain low-cost, virtual manufacturing structure Reinvent supply chain processes/systems to improve efficiencies and working capital performance Develop next-generation of low-cost sourcing
Organic Growth — 19 Active Projects Have Potential to Add >$300M EBIT at Maturity
Higher Attractive
Financially
Strategically /
Lower
Market Access Product Innovation Market Innovation Operational Improvement
$40M
Bubble size represents maturity EBIT/Cash Flow. Some projects projected to not reach maturity until > 2015.
Lower Feasibility Higher
External Growth — Highly Focused and Disciplined Approach
Components of
Vision 2015 EBIT
600 500 400 300 200
Organic 2015
445
$ Millions
575
Vision 2015
External Growth Opportunities
External growth builds on existing internal growth platforms, focused on aggressively pursuing:
Product line and technology acquisitions, e.g.
Fluthiacet-methyl In-licensing
Access to various third party chemistries Development investments and alliances
Collaboration agreements with agricultural and non-agricultural research companies worldwide Adjacent spaces
Biologicals
Agricultural Products
Vision 2015
An agile, innovative, customer-focused and highly profitable business with:
$2.3B Sales $575M EBIT 25% EBIT Margin
Sustainable Premium Margins
Innovation creating differentiated products Sales growth in all regions
Supply chain efficiencies driving global competitiveness
Focused and disciplined external growth initiatives complementing strategic focus and customer intimacy initiatives
VISION 2015
THE RIGHT CHEMISTRY
FMC
Specialty Chemicals
Theodore Butz, Vice President and General Manager, Specialty Chemicals
Specialty Chemicals
Lithium 23%
BioPolymer 77%
Asia Pacific 20%
North America 40%
EMEA 32%
Latin America 8%
Based on 2009 Consolidated Sales of $753M
BioPolymers Food Ingredients and Pharmaceuticals
Partnering with major category leaders across the globe
Employing deep product / application expertise to customer solutions
Extending customer product life cycles
Lithium focus on faster growing energy storage and pharmaceuticals
Specialty Chemicals
Vision 2015
Global leader in functional chemistries serving Food, Pharmaceutical and Energy Storage markets
$1.5B Sales / $375M EBIT
Well positioned in attractive end market segments Strong global presence Increasing levels of sustainable organic growth
Potential to supplement growth through external development
Three Attractive End Markets
Other 7% Energy Storage
13% Food 47% Pharma 33%
2015 Revenue Mix
Strong Global Position
North Asia America 33% 29%
Latin America Europe 12% 26%
Increasing Participation In Faster Growing End Markets
7.0% 5.2%
2010 2015
Weighted average market growth (5-year forward-looking)
Specialty Chemicals
Leveraging global leadership to drive continued strong Sales and EBIT growth over 2009—2015
Sales
12% CAGR (7% Organic)
753
2009
($M)
1,500
2015
EBIT
15% CAGR (11% Organic)
21% margin 160
2009
(
$M)
26% margin 375
2015
Comparison of Specialty Chemicals’ Strategic Positions
Food Pharmaceutical
Lithium Ingredients Excipients
Organic Sales
5% 6% 12% Growth
Role of
High Moderate Low Innovation
Importance of
External Growth High Moderate Not Critical to Strategy
RDE Opportunity High High High (Asia)
Strategic Position Attractive Attractive Attractive
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 Starting Position
Sales of $330M in 2009
Medium size, global innovator of texture ingredients Leadership positions in seaweed and cellulose specialties Low cost, premium supplier Premier performance among peers
Food Ingredients — Strategic Imperatives
Invest in core products to strengthen leadership position
Leverage customer relationships by broadening texture portfolio
Increase participation in higher growth, high value-added ingredients
Expand RDE position by investing in growth markets
Food Ingredients Market — ~4% Stable Annual Growth
$35B space fragmented by end-use applications and ingredient technology
Sensation Specialty Proteins Texturants Function
100
Natural Colors Pectin Vitamins
Gelatin
Synthetic Colors Gums Preservatives Category 80 Antioxidants Sweeteners Soy Cellulosic
Concentrate Enzymes Seaweed
60 Flavor Enhancers
Soy
Native Starch Cultures
of Isolates Percent 40
Dairy Whey Nutraceuticals
Modified Starch Fractions Flavors
20
Dairy Acidulants
Caseinates Emulsifiers
0 35
0 5 10 15 20 25 30
0—3% growth Market Size ($B)
3—5% | | growth Current FMC market >5% growth |
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
Strong growth in
Changing development cycle
FMC Starting Position
Sales of $240M in 2009
Recognized leader in tablet binders Price premium driven by strong quality and reliable service Broad customers positions across RX RDE’s and GX Cost parity with other suppliers Growing niche positions in biomedical, capsules and alginates
Pharmaceuticals Strategic Imperatives
Invest in core products to maintain premium position Expand RDE position to capture growth markets Redefine innovation and service model to increase customer intimacy Expand tablet excipient technologies Broaden dose form participation to access larger, faster-growing opportunities
Lithium
$350M supplier of lithium chemistries profitably Vision serving a broad base of customers in the Energy 2015 Storage, Polymers, Synthesis and Industrial markets
Market Drivers
Portable electronics growth Energy diversification Energy/environmental policies Long term supply availability RDE growth in downstream markets
FMC Starting Position
Sales of $175M in 2009
Well positioned in early stages of energy market growth Attractive cost position Recognized leader in several high value market niches Well positioned in Asia vs. major competition Manufacturing footprint transitioned toward future growth platforms
Market Demand Scenarios 2008 2020
350,000 Upside
Tons of Lithium Carbonate Equivalent Auto
300,000
Base Auto 250,000
Downside 200,000 Auto
Indust./Const./Other 150,000 Primary battery
100,000 Grease / lubricants Glass / ceramics 50,000 BuLi / Spec. Org.
Air treatment -
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Secondary battery non-auto
Source: FMC estimates
Note: Vehicle electrification assumptions:
Upside: 21% penetration in 2020 (8.0% HEV / 7.7% PHEV / 5.6% EV)
Base: 15% penetration in 2020 (6.5% HEV / 5.1% PHEV / 3.1% EV)
Downside: 8% penetration in 2020 (3.6% HEV / 2.2% PHEV / 1.8% EV)
Substantial Acceleration in Lithium Market Growth Expected 2015—2020
2000 2000
($M) ($M)
$1,700 $1,700
1500 12%
CAGR 1500
6% $950
1000 CAGR 1000 $950 $700 $700
500 500
0 0
2010 2015 2020 2010 2015 2020
Industrial Polymers Americas Europe Japan Synthesis Energy Storage China Other Asia
Lithium—Strategic Imperatives
Expand position in energy storage segment Strengthen downstream business Additional capacity expansion decision in 2012
Specialty Chemicals
Vision Global Leader in Functional Chemistries for Food, 2015 Pharmaceuticals and Energy Storage Markets
Strong portfolio of businesses
Attractive organic growth in all businesses, with significant external growth opportunities Increasing and sustainable EBIT margins
12% Sales CAGR
15% EBIT CAGR
25% of Sales from innovation
Significant increase in RDE participation Asia to become largest region for group
Well positioned to participate in faster-growing end markets
VISION 2015
THE RIGHT CHEMISTRY
[Graphic Appears Here]
Industrial Chemicals
D. Michael Wilson, Vice President and General Manager, Industrial Chemicals
Industrial Chemicals
Group of high performance businesses—created through restructuring, transformation and innovation-driven growth Vision that delivers:
2015 Greater Sales/EBIT growth Superior returns on assets Higher margins Stronger cash generation Greater earnings stability Less sensitivity to GDP cycles
20% Margin 1,300 260 Sales EBIT
7% CAGR 19% CAGR
859 (1) 10% Margin 90
2009 2015 2009 ($M) 2015
(1) | | 2009 sales restated to exclude phosphates |
Industrial Chemicals
Silicates Zeolites 4% Phosphates 16%
Global Soda Ash Peroxygens 56% 24%
Asia Pacific 5%
EMEA North 31% America 51%
Latin America 13%
Based on 2009 Consolidated Sales of $1,027M
Three businesses going forward:
Soda Ash
Global Peroxygens Zeolites / Silicates
Industrial Chemicals — Strategic Imperatives
Exiting Phosphates to achieve significantly greater earnings stability Leveraging our global, low-cost Soda Ash position
Driving strong earnings growth with high margins, low volatility and superior returns
Utilizing Granger as a strategic asset Maximizing our Global Peroxygens franchise
Shifting product mix to deliver >50% revenue in specialty applications
Propagation of specialties, globalization, innovation and focused M&A
Pursuing an early stage Environmental Solutions platform
Efficacious, cost-effective solutions to environmental challenges in air, soil and water
Combination of organic growth and acquisition of complementary / adjacent technologies Executing Operational Excellence programs to enhance cost leadership
Exiting Phosphates
Key Drivers
Unsustainable competitive position
Change in environmental regulation prohibits gypsum disposal
Raw material volatility, cost disadvantage, regional oversupply Fully pursued opportunities to attractively restructure/partner/divest
Actions
Approved closure of Huelva, Spain phosphates facility effective Dec 31, 2010 Plant decommissioning, dismantlement and environmental remediation to be completed in 2011/2012
Financial Impact
Modest 2011 EBIT impact; phosphates near break-even in 2010 Action avoids future projected losses driven by change in environmental regulation Estimated one-time charges of $100—$110M, including cash charges of $60—$70M for closure, environmental and severance related costs
Going forward, Foret will be a focused silicates / zeolites business with significant growth potential
Soda Ash
An $800M global leader in natural soda ash and
Vision specialty sodium salts with respect to cost
2015 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 Relative freight cost Relative cost of substitutes Regulatory initiatives
Current Position
World’s largest natural soda ash producer Significant cost advantage versus synthetic soda ash production Cost position and efficient distribution enable global reach Leader in Longwall and Secondary Solution Mining Sustained earnings well in excess of reinvestment economics
Industry Structure and Competitive Position Make Soda Ash an Attractive Business for FMC
Limited access to key raw material
Favorable U.S. industry structure
FMC has scale, proprietary process technology and low-cost position
Supply-driven cycle, steady global demand growth
Global supply cost curve is not flat due to natural vs. synthetic production
ANSAC as a highly efficient sales and distribution channel
Soda Ash Strategic Imperatives
Actions
Maintain Market Leadership
Build on Cost Leadership
Global Reach
Leverage cost and scale positions to outperform the industry Domestic price leadership Strategic account management Manage Granger capacity strategically Enhance low cost position via robust Operational Excellence program and process innovation Execute global procurement initiatives Advocate interests regarding potential climate change regulation and legislation Influence ANSAC strategy consistent with our global view Latin America — defend existing position and capture incremental growth Asia — raise pricing levels while preserving market positions Other RDEs — pursue market entry in profitable regions
Global Peroxygens
A $375M leading global supplier of oxidation solutions to Vision environmental, anti-microbial, and other specialty 2015 markets building on our peroxygens chemistries and adjacent technologies
Market Drivers
Growth of core demand in North America and Western Europe with economic recovery Greater regulation of environmental and food safety standards
Sustainability and
RDE adoption of Western standards Core markets growing faster in RDEs
Current Position
North America leader in attractive and growing specialty peroxygens applications Opportunity to drive specialty transition in Europe “green Significant opportunity to enhance chemistry” growth via more rapid globalization
Peroxygens Targeting Three Sets of Applications
Environmental
Technologies employed to reduce, eliminate or remediate pollutants contained in or emitted into air, water, and soil.
Cost Growth
Globalization Core Anti-Microbial Innovation
All traditionally All served areas in served markets which our oxidants such as pulp/paper, are principally polymer, cosmetic, employed to kill pharmaceuticals, bacteria, pathogens distribution, and or other microbes. electronics.
Peroxygens Mix Shift Driven by Specialty Applications
Specialties
Soil Electronics
Specialties sold on Food
Safety NOx
attributes: (Air)
Aseptic
Efficacy
Sustainability Oilfield
Personal
Intellectual Property Care
Polymer
Water
Treatment—Core
Commodities sold on
- Environmental Price
- Antimicrobial
Pulp Hard Mining Surface
Commodities
0% 5% 10%
Market / Application Growth Rate
Global Peroxygens Strategic Imperatives
Actions
Cost
Propagate Specialties
Global Reach
Innovation
Enhance competitive cost position via process redesign and ongoing cost reduction initiatives Continue to enhance profitability and reduce cyclicality while growing globally Globalize specialty franchises in environmental, electronics, food safety and water treatment Leverage specialty opportunities via integration of Western European peroxygens Capture growth in RDEs Establish sustainable competitive advantages in new geographies Ensure long-term sales and earning growth Pipeline of new applications and continued process enhancements Protect technology with intellectual property
Environmental Solutions
A sustainable business platform created through organic Vision growth and acquisition of complementary and adjacent 2015 technologies—providing efficacious and cost effective solutions to environmental challenges in air, soil and water
Market Drivers
Increasing regulations for air, soil and water environmental protection Corporate Sustainability Increasing environmental and natural resource pressures in RDEs
Current Position
Technology leader in destruction of organic containments in soil and groundwater Portfolio of promising technologies for scrubbing acid gas from air emissions, supported by intellectual property Efficacious, cost effective and “green” technologies in alkali, peroxygens, silicates and zeolites
Strategic Imperatives
Validate technologies through plant trials Provide optimal funding to accelerate earnings Globalize appropriately —after commercialized in target geography Create standalone growth entity after reaching critical mass Focused M&A to enhance growth
Industrial Chemicals
Vision 2015
Restructured and transformed business segment Delivering sustained Sales/EBIT growth Greater earnings stability Strong cash generation Above hurdle rate returns across economic cycles
Key Elements
Attractive portfolio of businesses Increased specialty focus Global reach, with greater exposure to RDEs and faster growing markets Reduced sensitivity to GDP in mature markets Sustainable Environmental business platform
Financial Highlights 2015
Sales $1.3B
2009-2015
7% CAGR
EBIT $260M
2009-2015
19% CAGR
EBIT Margin 20%
VISION 2015
THE RIGHT CHEMISTRY
[Graphic Appears Here]
Rapidly Developing Economies (RDEs) and Procurement
Mark Douglas, Vice President
Global Services and International Development
Dynamic Global Growth Trends Driving RDE Opportunities
Central / Eastern Europe, Turkey, Russia
Asia Middle East & Africa Latin America
Population Growth
Urbanization
Industrial Capital Investment
Growing Middle Class Consumerism
Rapidly Developing Economies (RDEs)
RDEs to deliver 50% or more of FMC’s total sales by
2015
Vision Sales of $2+B
2015
CAGR of 9-11% over 2009-2015
Strong local leadership with developed bench
Strategic Roadmap
People — recruitment, retention and development of local workforce and leadership Technology — local development of product offerings tailored for local markets Asset Placements — supporting resources for business growth, e.g.
Shanghai Innovation Center
BioPolymer labs in Turkey, Singapore, India
Enabling Actions to Capitalize on RDE Opportunities
Locally tailored products required for local markets Talent acquisition — increasing need now driven by both MNCs and local companies Continued rapid development of logistical / industrial infrastructure Shifting cost competitiveness Government support for growth — incentives, subsidies Increasing environmental legislation
RDE Expanding Impact Across FMC Businesses
Sales by Segment
$2.0B
$1.1B
2009 2015 Organic
APG SCG ICG
Key Drivers
Organic growth and new products/markets drive Agricultural Products Food Ingredients growth driven by trends towards convenience and protein delivery Strong excipient growth drives Pharmaceuticals Lithium growth in Energy Storage markets in Asia
Rapidly Developing Economies
Enabling growth in RDEs to provide >50% of FMC Sales
Vision
Sales of $2+B
2015
CAGR of 9-11% over 2009-2015
Enabling activities we will focus on:
People — recruit, retain and develop local talent
Technology — continuing to invest to ensure highest levels of local development Assets/Infrastructure — selectively adding to support business
Regional growth:
Latin America — Sales reaches $1.1B, primarily by leveraging Agricultural Products position Asia RDEs — Sales increase to $750M through targeted investments Central / Eastern Europe, Turkey and Russia — Sales of $150M by establishing strong footholds in key countries
Procurement—A Next Generation Operating Model
Best in class, cost efficient services via technology-Vision driven procurement
2015 Operational excellence yields run rate cash cost reductions reaching $80M in 2015
Strategic Roadmap
Create a center-led, global sourcing & procurement organizational structure
Leverage spend globally through increased “spend under management”
Robust standardization of Purchase-to-Pay process across the entire organization
Procurement organization enablement through technology systems and tools Cost forecasts and market insights provided, as well as risk mitigation strategy and execution Integration with M&A transaction teams to identify cost reduction opportunities and to scale the business
Our Path to Operational Excellence
Operations 2010 2011 2012 2013 2014 2015 Organization Sourcing
Center of Excellence
Process
Spend Management Purchase-to-Process Pay Process
Accounts Broad organizational engagement supported by Payable external expertise E- Early wins identified and captured
Procurement
Adoption Iterative process
Master Data
Technology New leadership in place
Roll-out
Process & Technology Development
Evole Operating Model
Best-in-Class Procurement to Drive Significant Cost Savings
Run Rate Cash Cost Reduction
$80M
Early wins deliver ~$3M annual savings Packaging
Telecom $50M Travel HR Services
$25M 20
Dec 2011 Dec 2012 Dec 2015
VISION 2015
THE RIGHT CHEMISTRY
Financial Strength Enables Achievement of Vision 2015
W. Kim Foster, Senior Vice President and Chief Financial Officer
Vision 2015—Path to $5B Sales and $1.2B EBIT
Sales Target: $5.0B EBIT Target: $1.2B
$5.0B $1.2B
$2.8B
$0.5B
2009 Organic Growth External Vision 2009 Organic Procurement External Vision
Growth 2015 Growth Growth 2015
Sales—Modest Acceleration in Organic Growth Rate
2009 2015: 7% CAGR Key Drivers $4.2B
2002 2009: 6% CAGR 2009-15 Attractive end
CAGR% markets
3% Continued growth in $2.8B leadership positions 2002-09 Increased RDE
CAGR%
7% participation
5%
$1.9B Rich innovation pipeline across our 6% businesses
9%
Industrial Chemicals
8%
Specialty Chemicals Agricultural Products
2002 2009 2015
Continued Double-Digit EBIT Growth Rate with Margin Expansion
2009 2015: 11% CAGR Key Drivers
~21%
2002 2009: 14% CAGR APG rich organic
~$900M growth pipeline,
2009-15
CAGR% sustained premium 19% margins SCG—new product 2002-09 16% introductions and CAGR% 11% market-driven volume $466M growth
3%
EBIT ICG—Soda Ash
10%
Margin 9% growth, Peroxygens’ $188M specialty shift and
8% phosphates exit
23%
Industrial Chemicals Specialty Chemicals Agricultural Products
2002 2009 2015
Corporate
Delivering on Organic Goals Generates Over $2B Free Cash Flow
2010 2015 Cumulative Key Drivers
~$5B Strong operating profit growth in all businesses Improved capital efficiency ~$2B Legacy liabilities remain constant Improved translation of EBITDA to FCF
Cumulative Increase in Capital All Other Items Cumulative Organic EBITDA Working Investment Organic FCF
Capital
External Growth Complements Organic Growth
2015 Sales from External Growth Disciplined Approach to External Growth
$50M $850M
Proactive, aligned with clear $300M strategic intent in selected spaces Clear portfolio objectives Strong value creation emphasis, fully realizing growth potential $500M No large scale, complex, or transformational acquisitions Balanced evaluation metrics
Deal-specific
IRR > risk-adjusted hurdle rate
EPS accretion year 2 or sooner
Attractive growth rate
Premium EBIT Margins
Portfolio
Sustainable mid-teens ROIC
APG SCG ICG Total Strategic optionality
Over $3B in Cash to Deploy Over 2010-2015
~$1B >$3B
Total of over $3B in cash to Borrowing Cash to deploy over 2010 2015
capacity return to
shareholders Cumulative ~$2B Organic
~$ 2.2B
Free Cash Flow
Additional debt capacity of ~$1B consistent with solid investment grade credit
External rating Growth
Expect to use $1.5B to $2.0B to fund external growth Expect to return significant
Cumulative Deployment cash to shareholders Organic Free Options Cash Flow
Our Vision for FMC in 2015
Sales of $5+B and EBIT of $1.2+B
Sustained mid-teens return on invested capital
Significantly greater earnings stability
Strong cash generation with disciplined cash deployment
Premium TSR performance
VISION 2015
THE RIGHT CHEMISTRY
VISION 2015
THE RIGHT CHEMISTRY
