EXHIBIT 99(a)
FMC Presentation at Merrill Lynch Chicago Chemical Conference, June 14, 2001
"Increasing Shareholder Value"
Slide 1
FMC
Increasing Shareholder Value
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Slide 2
Disclaimer
Statement under the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995: These slides and the accompanying presentations contain
"forward-looking statements," which 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
materially differ 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.
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Slide 3
Presentation Contents
.Spin-off of FMC Technologies
.FMC Corporation
-Agricultural Products
-Specialty Chemicals
-Industrial Chemicals
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Slide 4
Spin-off of FMC Technologies
[Organization Chart]
FMC
FMC FMC Technologies
Industrial Specialty Agricultural Energy Food &
Chemicals Chemicals Products System Transportation
Systems
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Slide 5
Spin-off of FMC Technologies
$3.9B Sales [Pie Chart] $436M Operating Profit [Pie Chart]
Industrial Chem. $906M Industrial Chem. $115M
Ag Products $665M Ag. Products $ 88M
Specialty Chem. $489M Specialty Chem. $ 92M
Food & Trans. Systems $839M Food & Trans. Systems $ 69M
Energy Systems $1,037M Energy Systems $ 72M
FMC Technologies FMC Technologies
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Slide 6
Spin-off of FMC Technologies
The spin-off will provide both companies with:
.Increased management focus
.Increased customer and market focus
.Ability to adopt capital structures aligned with industry peers of each
business
.Ability to reward employees with equity compensation tied to businesses
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Slide 7
Spin-off of FMC Technologies
.IPO of approximately 17% of FMC Technologies completed June 14th
.Distribution of remaining shares of FMC Technologies to FMC shareholders by
year end
.Shareholders will receive or retain:
-If distribution by dividend:
.Retain 1 share FMC Corporation (chemicals)
.Receive ~1.7 shares of FTI per share of FMC
-Or if distribution by exchange:
.Receive option to exchange FMC Corporation stock for FMC Technologies
stock
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Slide 8
FMC (Chemicals)
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[Pie Chart]
Industrial Chemicals $1,106 M
Specialty Chemicals $489 M
Ag Products $665 M
Sales $2,260 M
Industrial chemicals sales includes FMC's half of Astaris sales.
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Slide 9
FMC (Chemicals) History
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[Summation Bar Graph]
EBIT ($M)
1997 1998 1999 2000
---- ---- ---- ----
Agricultural 35 76 64 88
Industrial 77 78 73 92
Specialty 136 117 145 115
Corporate &
Other (44) (42) (32) (27)
Total 204 230 250 268
9.5% CAGR (1997-2000)
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Slide 10
FMC (Chemicals) Debt Post-IPO
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12/31/00
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FMC Corporation total debt 1,049
Less: debt transferred to FMC Technologies 315
Less: estimated net IPO proceeds 205
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=Proforma FMC (Chemicals) debt post-IPO 529
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Anticipated average debt to be $750M for 2001.
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Slide 11
FMC (Chemicals) Earnings Perspective
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1997 1998 1999 2000
------ ------ ------ ------
Revenue $2,414 $2,384 $2,338 $2,260
EBIT ex-spec. ch. 204 230 250 268
EBIT / Revenue 8.5% 9.7% 10.7% 11.9%
Interest expense 55 55 55 55
Tax (23.5% est. avg. rate) 35 41 46 50
Net Income 114 134 149 163
Net Income per share $ 3.54 $ 4.16 $ 4.63 $ 5.06
Pro forma Notes:
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Sales include 1/2 Astaris sales and required restatement of shipping costs.
Estimated proforma interest expense based on estimated $750M average debt level
and FMC's 2000 average interest rate.
Using 1Q 2001's average shares outstanding (32.2M) for each proforma period.
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Slide 12
FMC (Chemicals) Overview of Segments
- ------------------------------------
.Number 1 or 2 market position in most product lines
.Focus on low cost production in Industrial Chemicals
.Focus on R&D / innovation in Agricultural Chemicals
.Development of high growth, high return Specialty Chemical applications
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Slide 13
Agricultural Products Group
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Sales $665M
Sales by Product Sales by Region
[Pie Chart] [Pie Chart]
Insecticides $489M Asia $128M
Herbicides $176M Mexico/Latin America $173M
North America $201M
Europe, Middle East, Africa $83M
Specialty $80M
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Slide 14
Agricultural Products Group
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APG strengths
.Strong insecticide position
.Growing herbicide position
.Growing specialty non-crop
.R&D Focus
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Slide 15
Agricultural Products Group
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New Herbicide
. Carfentrazone - new herbicide with annual sales potential of $125M -
$150M in next few years
R&D
.Finding new molecular target sites sensitive to chemicals can provide a
rapid and cost-effective means of uncovering new classes of insecticides
.FMC partnership with Devgen provides key technologies
.The first target site generated by this partnership is entering high
throughput screening
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Slide 16
Agricultural Products Group
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**2000 Results: Strong earnings improvement from 1999 as pest pressures returned
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to more normal levels
**2001 Forecast: Expect profits up over 2000 from label expansions on
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insecticides and herbicides, continued cost reductions. Issues surrounding
genetically modified crops should benefit FMC
[Bar Graph] 1994 1995 1996 1997 1998 1999 2000
----- ----- ----- ----- ----- ----- -----
Sales ($ Millions) $ 517 $ 590 $ 650 $ 638 $ 648 $ 632 $ 665
[Overlapping Line Graph]
% EBITDA Margin 19.0% 19.8% 17.8% 10.0% 16.3% 13.8% 17.1%
[photo of agricultural products]
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Slide 17
Specialty Chemicals Group
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Sales $489M
[Pie Chart]
BioPolymer $351M
Lithium $138M
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Slide 18
Specialty Chemicals Group
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BioPolymer: Growing Global Businesses
Total Growth
Business Sales Prospects
Pharmaceuticals 37% 4-5%
Food Ingredients 42% 4-5%
Specialty 21% 6-7%
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Slide 19
Specialty Chemicals Group
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BioPolymer: Sales by product and function
Sales by product Sales by function
[Pie Chart] [Pie Chart]
Algin 19% Specialty 21%
MCC 36% Food Ingredients 42%
CGN 37% Pharmaceutical 37%
Other 8%
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Slide 20
Specialty Chemicals Group
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FMC Lithium Strategy
.Unique chemical properties of lithium
.Focused resources on downstream specialty opportunities
.Profitability hurt by commodity competition
.Maintained manufacturing cost position of high-value lithium
.Growth opportunities:
-Lifetime/(R)/ and Renew/(R)/ ASR concrete technologies
-Electric and hybrid electric vehicles
[Two photos of vehicles]
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Slide 21
Specialty Chemicals Group
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**2000 Results: Sales lower from PAD divestiture, but profits up from successful
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Pronova integration. Lithium sales & profits up, but market remained difficult
**2001 Forecast: Both businesses' profits approximately flat with strong 2000.
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Continuing Pronova synergies in BioPolymer.
[Bar Graph] 1994 1995 1996 1997 1998 1999 2000
---- ---- ---- ---- ---- ---- ----
Sales ($ Millions) $544 $588 $602 $605 $598 $565 $489
[Overlapping Line Graph]
% EBITDA Margin 20.5% 18.1% 17.1% 19.3% 19.2% 19.5% 26.0%
[customer logos: Lilly, Merck, Novartis, Pfizer, Johnson & Johnson]
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Slide 22
Industrial Chemicals Group
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Sales $1.106B
[Pie Chart]
Peroxygens $189M
Foret SA $233M
Phosphorus $278M
Alkali $406M
Includes FMC's portion of Astaris' sales
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Slide 23
Industrial Chemicals Group
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ICG Overview
.Strong market positions
.Low cost positions
.Phosphorus / Astaris
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Slide 24
Industrial Chemicals Group
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Strong Market Positions:
Market Share
------------
N. America Europe
.Hydrogen Peroxide 26% 10%
.Soda Ash 34% -
.Phosphates 55% 15%
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Slide 25
Industrial Chemicals Group
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Continued focus on cost reductions
.Soda ash capacity rationalization
.New purified phosphoric acid plant
.Hydrogen peroxide cost reductions
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Slide 26
Industrial Chemicals Group
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Phosphorus / Astaris
.Astaris JV (combination of FMC and Solutia phosphorus businesses)
-Strong market share
-Pocatello plant
.Hampered by high energy costs
.Accelerated closure of 3 of 4 furnaces
.Power resale
-New PPA plant
.Low-cost North American plant replaces higher-cost thermal
phosphorous
.Equivalent of approximately 1/3 of Pocatello output
.Actively pursuing low-cost alternatives to mitigate ongoing consent decree
spending
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Slide 27
Industrial Chemicals Group
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**2000 Results/ 2001 Forecast: Sales & profits adversely impacted by lower euro
& increased energy costs. 2000 sales also appeared lower as Astaris JV began in
2Q 2000. 2001 profits expected to be down slightly
**Soda Ash: 2001 volumes flat as strengthening exports offset impact of new
entrant; Energy surcharge results still uncertain
**Hydrogen Peroxide: Higher prices & volumes in 2000 and 2001, plus reduction in
cost base
**Phosphorus: Significant power cost impact in `01 & `02, partially offset by
resale of power beginning in 2Q 2001. New low cost PPA plant start-up 2Q '01
**Foret: Modest improvement expected from low 2000
[Bar Graph] 1994 1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ------
Sales ($ Millions)* $1,027 $1,137 $1,201 $1,173 $1,138 $1,141 $1,106
[Overlapping Line Graph]
% EBITDA Margins 18.3% 20.1% 22.8% 19.5% 17.1% 18.2% 16.0%
*Sales include 1/2 of Astaris sales and required shipping costs.
[Customer logos: The Gillette Company, Dow, Procter & Gamble, Colgate-Palmolive
Company, Rohm Haas]
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Slide 28
FMC Corporation Direction
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FMC Corporation to focus on:
.Growing our position in BioPolymers, and continuing to improve Lithium's
profitability
.Improving our cost structure in industrial chemicals
.Expanding herbicide sales in agricultural products and continuing to
search for new pesticides through the use of biotechnology
.Managing businesses to grow long-term profitability
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Slide 29
Summary
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.IPO of FMC Technologies today
.Spin-off of FMC Technologies before end of year
.FMC (Chemicals) company to focus on long-term profitable growth