Slide 1: Agricultural Products Group Welcomes
Exhibit 99.1 Agricultural Products Group Welcomes: Mike Judd – Greenwich Consultants Jay Chen – Wellington Management Company Josh Kaufthal – Reich & Tang Jim O’Melia—Sunnymeath Joe Pilaro – Brae Partners Richard Rosen – J. & W. Seligman & Co., Inc. Wayne Simon – Mutual of America Capital Management
Slide 2: Agricultural Products Group Business Overview and R&D Presentation
Agricultural Products Group Business Overview and R&D Presentation Milton Steele and Ann B. Orth, Ph.D. FMC Investor Meeting 10 June 2004 10 June 2004
Slide 3: Disclaimer
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
Slide 4: Use of Non-GAAP Terms
Use of Non-GAAP Terms These slides contain certain “non-GAAP financial terms” which are defined below and on FMC’s Investor Relations web site (http://ir.fmc.com) in the Glossary of Financial Terms section. In addition, in the Conference Calls and Presentations section of the web site, we have provi
Slide 5: FMC Corporation
FMC Corporation Diversified chemical company with leading market positions in industrial, consumer and agricultural markets globally ($ million, 12/31/03) FMC Sales: $1,921.4 EBITDA: $309.3 Margin: 16.1% Industrial Chemicals Sales: $770.6 EBITDA: $93.9 Margin: 12.2% Specialty Chemicals Sales: $515.8
Slide 6: FMC Products & Markets
FMC Products & Markets 2003 Sales by Product 2003 Sales by Region Herbicides 24% Insecticides 76% Asia 17% EMEA 15% N. America 36% L. America 32%
Slide 7: Attractively Positioned and Focused Product Portfolio
Attractively Positioned and Focused Product Portfolio Crops/Markets Fruit & vegetables Specialty markets Tree, Fruits & Vines Rice Cereals Sugar cane Cotton Corn $27B $640M Chemistries Pyrethroids Carbamates Niche herbicides Flonicamid Accessing complementary chemistries Key Geographies N. America (
Slide 8: Serving Specialty and Crop Chemical Protection Industry
Serving Specialty and Crop Chemical Protection Industry Size Projected Growth1 Drivers / Trends Herbicides Insecticides $13.2 bn 0.9% $6.7 bn 1.1% Increased demand for food / changing diets Increased productivity on “fixed” arable land Growth in developing markets as production becomes less labor in
Slide 9: 3-Tier Industry Structure – Creating Significant Market Access Challenges
3-Tier Industry Structure – Creating Significant Market Access Challenges… 2002 Sales ($M) Tier 1 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 6197 6176 4433 3809 2795 2717 Tier 2 Tier 3 Syngenta Bayer Monsanto DuPont BASF Dow Sumitomo MAI FMC Nufarm Griffin Kumiai Ishihara >100 Generics Source: Phil
Slide 10: Recent Industry Threats / Changes and APG's Response
Recent Industry Threats / Changes and APG’s Response Over the past six years, four phenomena, in particular have significantly impacted the chemical crop protection: Genetically Modified Crops (GMO) Asian generics pesticide competitors Low commodity prices Declining industry profitability and massiv
Slide 11: Our Strategy is Enabling Us to Contend with the Key Challenges & Opportunities
Our Strategy is Enabling Us to Contend with the Key Challenges & Opportunities Facing the Business People / Org Growth & Development Focus Global Cost Competitiveness Innovation Growth in Specialty Crops / Markets Leverage Alliances Voluntary Stakeholder Alignment Become Tier 2 Market Access Vehicle
Slide 12: Strategy – Focused Insecticide Innovation
Strategy – Focused Insecticide Innovation People / Org Growth & Development Focus Manufacturing Flexibility Innovation Growth in Specialty Crops & Markets Leverage Alliances Focused on insecticide discovery only Annual R&D spend 10-12% of sales Robust insecticide pipeline with >20 insecticide-active
Slide 13: Agricultural Products – '01-'03 Performance
Agricultural Products – ’01-’03 Performance ($ in millions) $700 2001 $22 15.4% $653 2002 $21 16.1% $615 2003 $16 17.4% $640 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Revenue Capital Expenditures EBITDA Margin Declining global chemical crop protection market since 1996 2001 exit from pre-emergent herbicide
Slide 14: Positive Outlook in 2004
Positive Outlook in 2004 Driven by robust crop markets and our focused strategy Improving global farm economy: Rising global crop prices Significant cost savings from productivity initiatives: Manufacturing initiatives continue to produce savings Refocus and deployment of SG&A Global supply chain re
Slide 15: Research and Development
Research and Development Dr. Ann Orth
Slide 16: Agenda
Agenda Insecticide Market People (This section omitted for 8-K filing) Discovery Technology Development Capabilities Research Strategy and Pipeline Status Summary Q&A
Slide 17: APG R&D Overview – Focused Insecticide Innovation
APG R&D Overview – Focused Insecticide Innovation Consistently invests 10-12% of sales on R&D innovation Recently completed external evaluation puts our APG’s Insecticide discovery program as among the most competitive in the industry Sustainable long-term growth enabled by robust pipeline; we have
Slide 18: Consistently Spends ~10-12% of Sales on R&D
Consistently Spends ~10-12% of Sales on R&D… 12% 10% 8% 6% 4% 2% 0% ‘97A ‘98A ‘99A ‘00A ‘01A ‘02A ‘03A Discovery Pre-Development/Development Defense & Cost Reduction Label Expansion
Slide 19: The Insecticide Market
BME acrcuturat Products Group The Insecticide Market... 410 June 2004 19
Slide 20: Global Insecticide Market of ~$7B is ~25% of Global Crop Protection Market
Global Insecticide Market of ~$7B is ~25% of $27B1 Global Chemical Crop Protection Market Mites 10% Piercing-sucking 36% Nematodes 8% Chewing 46% 1Philips McDougal, Sigma and FMC Internal, 2003 data
Slide 21: Insecticide Market is Projected to Grow Slightly over the Next 10 Years
Insecticide Market is Projected to Grow Slightly over the Next 10 Years1 R&D Focused On These Market Segments Piercing-sucking pests ($2.4B) Increasingly important due to decreased use of broad-spectrum insecticides Resistance due to multiple applications Chewing pests ($3.1B) Market crowded, domina
Slide 22: Older Chemistries are >60% of Total Insecticide Market
Older Chemistries are >60% of Total Insecticide Market; Growth Favors New Chemistries Other (6%) Other IGRs (2%) Natural (8%) Benzoylurea (3%) Acaricide (6%) Organochlorine (2%) Neonicotinoid (12%) Pyrethroid (20%) Carbamate(13%) Organophosphate (28%) -15 -10 -5 * % Total insecticide market 2007F/20
Slide 23: Future Insecticide Discoveries Span a Wide Range of Potential Outcomes
Future Insecticide Discoveries Span a Wide Range of Potential Outcomes… Broad Spectrum Family-Focused Sales >$250M New FMC Insecticide Sales $50-150M Sales ~$30M “Game changer” ? New MOA; 1st to market ?Broad spectrum activity (2-4 different insect orders) ? Excellent application flexibility ?Broad
Slide 24: The Market – Implications & Conclusions
The Market – Implications & Conclusions Increasing populations, changing dietary habits of majority of the world’s population, restricted growth of arable land are likely to drive need for increased agricultural productivity; Older products likely to decline due to resistance and regulatory pressure
Slide 25: Our People
Our People… World-Class Scientists State-of-the-Art Technologies An Organization Passionate and Motivated about Discovering Novel Insecticides
Slide 26: Discovery Process and Technology
Discovery Process and Technology…
Slide 27: Core Competencies
Core Competencies Compound Handling: Safely and efficiently store and retrieve compounds, our most valuable physical asset; build quality chemical library for screening Target Research (Genomics): Identify novel, commercially viable, registerable new insecticide targets Biochemistry MOA: Elucidate t
Slide 28: Discovery Research Process
Discovery Research Process Compound Library Targets & HTS Insect screens Leads MOA Chemical lead optimization Efficacy / spectrum Field translation ADMEET Advanced Projects Chemical lead optimization Biology; Pilot Field Trials Global Field Trials Pre-Development ADMEET June 2004 28
Slide 29: Technology Applied to Discovery Research
Technology Applied to Discovery Research Chemical Optimization Insect-Active Leads Advanced Projects Mode of Action for Active Chemistry Assays & Genetics on fruit fly & C. elegans (Devgen) DNA Sequence & Bioinformatics Compound Logistics Fiber-Optic Gigabit Ethernet Backbone Backup Sun Server IBM S
Slide 30: Technology Applied to Insecticide Discovery
Technology Applied to Insecticide Discovery Automated, High Throughput Insect Testing Pilot/Translation Field Trials Continuous Chemical Optimization Global Field Trials
Slide 31: Development Capabilities
BME acrcuturat Products Group Development Capabilities... 410 June 2004 a
Slide 32: We Have a Full Complement of Development Capabilities
We Have a Full Complement of Development Capabilities, Technology and Scientific Expertise Analytical Sciences Formulations Residue/Environmental Fate/Metabolism Toxicology/Ecotoxicology/Risk Assessment Product Understanding Process Chemistry & Engineering Quality Assurance Global Regulatory Interna
Slide 33: Recent Development Accomplishments
Recent Development Accomplishments Increased Efficiencies and Add to Sales Growth Flonicamid—new, novel insecticide licensed from ISK: Rapid submission of registration package and reduced risk document; granted OP Replacement status; and greenhouse registration in September 2003 Two additional new m
Slide 34: Success in Discovery, a Robust Pipeline
Success in Discovery, a Robust Pipeline…
Slide 35: FMC's R&D Focused on Insecticides
FMC’s R&D Focused on Insecticides Utilizes Advanced Technologies to Drive Innovation… R&D Approach Balance of biochemical target and insect screening Pipeline of projects moving into Pre-development Exceptional use of advanced technologies Close alignment with business objectives FMC R&D Evolution 1
Slide 36: Pipeline Status 2002
Pipeline Status 2002 Assay Screening Advanced Field Pilot Field Global Field Pre- Development Greenhouse Translation Trials Trials Development Testing MAP* Ant-18* MAC CASK* GAGA DAG* Chitin Synthase* CAMP Worms (chewing) insects Piercing/sucking insects *Eventually terminated
Slide 37: Pipeline Status 2003
Pipeline Status 2003 Assay Screening Advanced Field Pilot Field Global Field Pre- Development Greenhouse Translation Trials Trials Development Testing Receptor MAP* PSL018 GAGA Channel PSL014 CASK I* ADV1 SAT009 CASK II* ADV2 MAC006 CAM034 15-20 new lead areas Worms (chewing) insects Piercing/suckin
Slide 38: Pipeline Status 2004
Pipeline Status 2004… Assay Screening Advanced Field Pilot Field Global Field Pre- Development Greenhouse Translation Trials Trials Development Testing Receptor B SAT013 PSL028 Receptor A PSL018 F2704? GAGA ADV1 F2704 PSL014 PSL066 PSL003 Channel A ADV2 MAC051 F7663 PSL007 PSL065 1H-05 Channel B PSL
Slide 39: Discovery Research Process and Pipeline
Discovery Research Process and Pipeline Receptor A Channel A Channel B Receptor B Receptor C PSL003 PSL007 PSL017 PSL048 PSL065 PSL018 PSL014 PSL044 CAM179 SAT013 PSL028 PSL066 MAC051 ADV1 ADV2 Library Screening Leads Advanced Projects Translation/Pilot Field Trials +15 Other New Leads F2704? 1H-05
Slide 40: Approximately Thirty-Fold Increase in Insecticide Field Trials Since 2001
Approximately Thirty-Fold Increase in Insecticide Field Trials Since 2001… Total number of trials/year 2001 2002 2003 2004* micro-plots pilot field trials global field trials *Projected
Slide 41: More than Twenty-two Countries in which R&D Field Efficacy Trials are Conducted
More than Twenty-two Countries in which R&D Field Efficacy Trials are Conducted CAN USA MEX BRA ARG SPA UK FRA GRE EGY ISR PAK IND CHI KOR TAI JAP THAI PHIL SA AUS NZ Global micro-plot field/lab bioassay locations
Slide 42: A Full, Sustainable Pipeline, State of the Art Technology, and World-Class Talent
A Full, Sustainable Pipeline, State of the Art Technology, and World-Class Scientific Talent…
Slide 43: Recent External Assessment of FMC's Discovery Program Strongly Positive
Recent External Assessment of FMC’s Discovery Program, Science and Talent Strongly Positive “The FMC APG Discovery organization clearly has the talent, structure and leadership to be a significant player in the arena of proprietary insecticide chemistry. “This organization’s current and emerging pat
Slide 44: In Summary
In Summary… Our pipeline is full and sustainable, from early stage leads to pre-development; recently validated by an external expert In 2004, we are conducting: – 150 full-scale global field trials on 2 new products from two different areas of chemistry; – 100 small plot pilot trials on 3-4 compoun
Slide 45: Q&A
BMS Acricutural Products Group 410 June 2004 Q&A... 48
Slide 46: Agenda
Agenda 8:30 – 10:30 AM Business Overview and Mr. M. Steele – VP & General Manager, APG R&D Presentation Mr. E. Norris – Director of Investor Relations Dr. A. Orth – Director, R&D Dr. T. Merriam – Director, Global Product Development 10:30 AM – 2:00 PM R&D Tour Biology Dr. P. Rensner, Manager Special