EX-99.1 2 dex991.htm FMC PRESENTATION BY WILLIAM G. WALTER FMC presentation by William G. Walter
FMC Corporation
William G. Walter
Chairman, President and CEO
New York, NY
February 8, 2007
Exhibit 99.1
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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
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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