Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FMC CORP | d8k.htm |
 BB&T Capital Markets
August 30, 2010
New York, NY
Pierre Brondeau
-
President and CEO
Exhibit 99.1
W. Kim Foster, Senior Vice President and CFO |
 Disclaimer
Safe Harbor Statement
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.
|
 FMC
Corporation LTM ending June 30, 2010 ($ millions)
*EBITDA margin |
 Vision 2015 –
Disciplined Approach to Growth
Solid investment grade rating : S&P BBB+/Moody’s Baa1
Debt maturing in next 5 years < $200 million
Free cash flow of ~$200 million projected in 2010
Increased emphasis on internal technology development
Complemented by financially attractive bolt-on acquisitions and
technology in-licensing
Biased toward capturing share in rapidly developing economies
Procurement ,logistics and supply chain savings up to $50M
annually at maturity
Announced consolidation of offices and labs in Shanghai
Reducing earnings volatility
Leveraging strengths of Soda Ash and Peroxygens
Evaluating new environmental platform
Expansion of Salar
del Hombre Muerto
production facility
in Argentina to increase capacity by 30 percent
Maintaining financial strength and
strategic flexibility
Focusing on growth in Agricultural
Products and BioPolymer
Lowering our operating costs by
leveraging company size
Strengthening Industrial
Chemicals products portfolio
Positioning Lithium as the next
growth platform
Strategic Thrusts
Actions |
 Operating from a Position of Strength |
 (1) Based on 2009 consolidated sales
Industrial
Chemicals
#1 in N.A.
Soda Ash
#1 in N.A.
Persulfates
#1 Globally
Carrageenan
#1 Globally
Carbofuran
#2 in N.A.
Pyrethroids
Agricultural
Products
#1 Globally
Alginates
Specialty
Chemicals
#2 Globally
#1 Globally
Lithium Specialties
Microcrystalline Cellulose
Product Group
Position(1)
Leading Market Positions |
 Approximately 80% of sales to non GDP-cyclical end markets
Long-term relationships with blue chip customers
No single customer represents more than ~1 % of sales
Top 10 customers in total represent ~11% of sales
Non-
Cyclical
80%
Cyclical
20%
Based on 2009 Consolidated Sales
Diversified Customers and End Markets |
 Diversified and Integrated Cost Structure |
 Based on
2009 Consolidated Sales North America
37% of Sales
Latin America
25% of Sales
Europe / Middle East / Africa
25% of Sales
Asia / Pacific
13% of Sales
Global Presence |
 Based
on 2009 Consolidated Sales of $1,052 million Strong niche positions in the
Americas, Europe and Asia Proprietary, branded insecticides and herbicides
Strategic Thrusts:
Focused in attractive intersections of products, crops and regions
Developing new actives & formulations to serve selected new crops
Enhancing growth through acquisitions
Agricultural Products |
 2010
segment earnings growth in the mid-single digits reflecting higher sales in most
regions partially offset by less favorable product and geographic mix, higher first
half inventory costs and increased spending on growth initiatives.
Agricultural Products |
 BioPolymers
–
pharmaceutical and food ingredients
Lithium focus on specialties –
pharmaceuticals and energy storage
Strategic Thrusts:
Strengthening positions in core market segments
Continue high focus on close-to-customer technology development and
formulation Pursuing financially attractive bolt-on acquisitions to
strengthen core platforms or expand portfolio
Positioning
capacity
and
technology
to
capture
premium
growth
in
lithium
Based on 2009 Consolidated Sales of $753 million
Specialty Chemicals |
 2010
segment earnings up approximately 20 percent reflecting strong commercial
performance in BioPolymer, higher volumes in lithium primaries and continued
productivity improvements
Specialty Chemicals |
 Based
on 2009 Consolidated Sales of $1,027 million #1 North American manufacturer of
soda ash Low cost, proprietary production technologies
Strategic Thrusts:
Managing for cash generation
Aligning capacity to highest margin markets
Controlling costs and increasing productivity
Strengthening products portfolio to reduce earnings volatility
Evaluating a new environmental platform
Industrial Chemicals |
 Industrial Chemicals
2010 segment earnings segment earnings up 25 to 30 percent driven by volume growth
and favorable raw material and energy costs, partially offset by
lower selling prices and
higher plant outage costs |
 FMC
in Summary |
 Glossary of Financial Terms
&
Reconciliations of GAAP to Non-GAAP |
 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.
|
 These
slides contain references to segment financial items. 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.
Segment Financial Terms |
 Reconciliation of consolidated income from continuing operations
before
income taxes (a GAAP measure) to EBITDA (a Non-GAAP measure)
EBITDA Reconciliation: LTM 6/30/2010
(Unaudited, in $ millions)
LTM 6/30/2010
Income (loss) from continuing operations before income taxes
$359.6
Net Income attributable to non-controlling interests
(12.3)
Restructuring and other charges/(income), net
112.2
Purchase accounting inventory fair value impact and other
related inventory adjustments
4.8
Interest expense, net
32.9
Depreciation and amortization
132.5
EBITDA (Non-GAAP)
$629.7 |
 Reconciliation of Segment Operating Profit (a GAAP measure) to
EBITDA (a Non-GAAP measure)
Segment EBITDA Reconciliation: LTM 6/30/2010
(Unaudited, in $ millions)
LTM 6/30/2010
Segment
Industrial
Chemicals
Specialty
Chemicals
Agricultural
Products
Segment Operating Profit (GAAP)
$117.8
$172.9
$278.4
Add:
Depreciation and Amortization
72.9
32.9
20.8
EBITDA (Non-GAAP)
$190.7
$205.8
$299.2 |
 |