Slide Presentation

EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation

FMC Corporation

Citigroup Chemicals Conference

New York, NY

December 6, 2005

William G. Walter

Chairman, President and CEO

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.

Exhibit 99.1

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.

Leading Market Positions

(1)

Based on 2004 consolidated sales

(2)

Shared

Industrial

Chemicals

#1 in N.A.

Soda Ash

#1 in N.A.

Hydrogen Peroxide

#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)

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

2004 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%

Diversified and Integrated Cost Structure

Low cost sourcing of raw materials

–

Backward integration: soda ash, lithium

–

Global sourcing of renewable resources: wood pulp, seaweed

Low reliance on purchased raw materials

–

Total raw materials represent approximately 25% of cost of sales

–

No single raw material accounts for more than 7% of total raw material

purchases

–

Reduced volatility from limited use of petrochemical feedstocks

Low energy demand requirements

–

Energy represents approximately 10% of cost of sales

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

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

Alkali

(Soda ash)

46%

Peroxygens

19%

Foret

35%

Latin

America

North America

50%

Europe/Middle

East/Africa

35%

Asia

Based on 2004 Consolidated Sales of $813.7 million

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

100

150

200

2001

2002

2003

2004

LTM 9/30/05

10%

15%

20%

EBITDA

Capital Spending

EBITDA Margin

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

BioPolymer

72%

Lithium

28%

Latin

America

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

Specialty Chemicals Financial Performance

$122

$116

$140

$129

$132

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

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

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%

Agricultural Products Financial Performance

100

150

25%

$101

$99

$111

$148

$160

2001

2002

2003

2004

LTM

9/30/05

10%

15%

20%

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.

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

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

FMC Remains Significantly Undervalued

Source: Thomson First Call; Data as of December 2, 2005

EV/2006E EBITDA

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

FMC Corporation

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 .

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 .

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

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

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