[PHOTO OF TEB BUTZ] Ted Butz
General Manager,
FMC BioPolymer
Specialty Chemicals
2000 Forecast
[PIE CHART]
Food & Transportation
21%
Industrial
Chemicals
20%
Specialty
Chemicals
13%
$500M
Agricultural
Products
18%
Energy Systems
28%
Total FMC Sales = $3.9 Billion
Specialty Chemicals
2000 Overview
Sales [PIE CHART] Key Markets [PIE CHART]
BioPolymer Lithium Pharmaceutical Approximately 1/3
Approximately 2/3 Approximately 1/3 Food Ingredients Approximately 1/3
Specialty Approximately 1/3
Total Specialty Chemical Sales = $500 Million
FMC
Specialty Chemicals
Segment Sales ($M)
[Bar graph A]
750
602.0 604.8 598.2
564.5
500 --
250
0
1996 1997 1998 1999 2000 Fcst
Segment EBIT ($M)
[Bar graph B]
100
--
80
77.9
77.2
73.5
65.5
60
40
20
0
1996 1997 1998 1999 2000 Fcst
Positioned for growth:
Consolidating and Strengthening in 1999
1. Divested businesses that lacked long-term growth potential
2. Reduced production of commodity lithium carbonate
3. Focused resources on high margin products
4. Acquired & integrated Pronova BioPolymer with FMC's food ingredients and
pharmaceutical businesses
Specialty Chemicals
Segment Margins
Year Results
---- -------
2000 17.5%
(forecast)
1999 13.0%
1998 13.0%
1997 12.9%
Specialty Chemicals
Opportunities and Outlook
- - FMC BioPolymer
- - FMC Lithium
FMC BioPolymer Was Created In
1999
FMC BioPolymer
Not Just Products. Partners.
Leading Products Serving A Global
Market
[PIE CHART 1] [PIE CHART 2]
Algin ROW
19% 17%
CGN North Am
37% 47%
Other Europe
8% 36%
MCC
36%
Leading Pharmaceutical,
Food, & Specialty Customers
- - Abbot Labs - Mars
- - American Home - Merck
- - Bristol Myers - Mylan
- - Brahma - Nestle
- - Colgate - Novartis
- - ConAgra - Pharmacia
- - CPC - Pfizer
- - Danisco - Reckitt Coleman
- - General Mills - San Ei
- - Glaxo - SlimFast
- - Goodman Fielder - SmithKline
- - Johnson & Johnson - Unilever
- - Kraft Foods
FMC BioPolymer Consists of
Three Attractive Businesses
Business Total Growth
- -------- Sales Prospects
----- ---------
Pharmaceuticals 37% 5-6%
Food Ingredients 42% 4-6%
Specialty 21% 2-10%
FMC
Pharmaceutical Opportunities
CORE PRODUCTS NEW SEGMENTS
- ------------- ------------
- - MCC - EnTec(SM) Drug Delivery
- - ALGINATES - Wound Care / Immunostimulants
- - COATINGS AND HYDROCOLLOIDS - Medical Materials
- Taste-masking
- Other Services
CORE GROWTH [PHOTO OF PHARMACEUTICALS APPEARS HERE]
- -----------
- - Nutraceuticals
- - Coatings
- - Other Anti-reflux
- - Acquisition
- - Coatings
FMC
Pharmaceutical Opportunities
- - Core growth
- Alginates used for anti- [PHOTO OF ALIGNATES IN ACTION APPEARS HERE]
reflux treatment
- - New segment growth [PHOTO OF PROTANAL(R) IN USE APPEARS HERE]
- Protanal(R) for use in
advanced wound dressing
Food Ingredients Opportunities
CORE PRODUCTS NEW TRENDS
- ------------- ----------
- - MCC - Taste
- - CARRAGEENAN - Nutrition
- - ALGINATES - Convenience
- Niche applications
CORE GROWTH
- ----------- [PHOTO OF FOOD APPEARS HERE]
- - Dairy
- - Convenience foods
- - Meat and poultry
- - Bakery and confection
FMC
Food Ingredients Opportunities
- - Taste, nutrition and convenience
- Cultured products, such as yogurt
- Nutritional beverages
- Other nutritional applications
FMC
Specialty Opportunities
- - Oral care
- - Personal care
- - Laundry and dishwasher tablets
- - Niche industrial applications
FMC BioPolymer
Not Just Products. Partners.
- - Strong core business
- - Earnings on track
- - Focused on higher margin segments
- - Strong growth potential
- --------------------------------------------------------------------------------
FMC Lithium
. Lithium and lithium derived products
. Manufacturing facilities in 4 countries
. 52% of sales outside of US
[PHOTO APPEARS HERE]
- --------------------------------------------------------------------------------
Lithium Markets
Total
Business Focus Sales
- -------------- -----
Downstream applications 75%
Pharmaceuticals, energy and
specialty polymers
Upstream applications 25%
Refrigeration, rubber treatment
Overall CGR of 7%
FMC
FMC Lithium Strategy
- - Focused resources on downstream specialty opportunities
- - Outsourced production of most commodity lithium carbonate requirements
- - Maintain manufacturing cost position of high-value lithium
- - Increased technical resources to help customers speed product development
FMC
FMC Lithium Opportunities
- - Lifetime(R) and Renew(R) ASR [PHOTO OF LITHIUM BATTERIES APPEARS HERE]
concrete technologies
- - Pharmaceutical, Agricultural, [PHOTO OF A PHARMACIST APPEARS HERE]
and specialty polymers.
- - Lithium ion batteries [PHOTO OF A CONCRETE SURFACE APPEARS HERE]
FMC
FMC Lithium Opportunities
- - Electric and hybrid
electric vehicles
[PHOTO OF ELECTRIC/HYBRID ELECTRIC VEHICLE
APPEARS HERE]
- Available by 2005
- Consortium headed by
Argonne National Labs
(US DOE) [PHOTO OF ELECTRIC/HYBRID ELECTRIC VEHICLE
APPEARS HERE]
- Lithium ion batteries are
key to this opportunity
FMC
FMC
Specialty Chemicals Panel
Joseph H. Netherland President
FMC Corporation
Ted Butz General Manager
FMC BioPolymer
D. Michael Wilson General Manager
Lithium