Chairman's - FMC Corporation

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Growth We plan to grow by obtaining new and approved uses for existing product lines and acquiring, accessing, developing, marketing, distributing and/or selling complementary chemistries and/or related technologies in order to enhance and expand our product portfolio and our capabilities to effectively service our target markets and customers. Our growth will depend on our ability to deliver unique innovative solutions to our customers. Over the next several years, growth is anticipated from our proprietary insecticides, herbicides and fungicides, as well as recently-accessed third party chemistries and/or technologies. For our insecticides, we launched a number of new products, expanded labels and/or introduced unique formulations that deliver value-adding solutions to our customers. The continued spread of herbicide-resistant weeds and shifts in weed populations, coupled with several recently launched product formulations, expanded labels, premixes and new chemistries provide growth opportunities for our herbicide product line. The successful development and commercialization of our productivity-enhancing technologies should also contribute to growth over the next three to five years. Industry Overview The three principal categories of agricultural and non-crop chemicals are herbicides, representing approximately half of global industry revenue, insecticides, representing approximately a quarter of global industry revenue, and fungicides, representing most of the remaining portion of global industry revenue. Insecticides are used to control a wide range of insects, including chewing pests (such as caterpillars) and sucking pests (such as aphids). Insecticides are applied as sprays, dusts or granules and are used on a wide variety of crops such as fruits, vegetables, cotton, soybean, corn and cereals. There are several major classes of insecticide chemistries, including organophosphates, carbamates, pyrethroids and neonicotinoids. Herbicides prevent or inhibit weed growth, thereby reducing or eliminating the need for manual or mechanical weeding. Herbicides can be selective (controlling only specific unwanted vegetation) or non-selective (controlling all vegetation), and are also segmented by their time of application: pre-planting, pre-emergent and post-emergent. Fungicides prevent or inhibit the spread of plant disease which can adversely impact crop yields and quality. Fungicides are used on a wide variety of crops such as fruits, vegetables, soybean, cereals and rice. The agrochemicals industry has undergone significant consolidation over the past ten years. Leading crop protection companies, Syngenta AG, Bayer AG, Monsanto Company, BASF AG, The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont), currently represent approximately 75 percent of the industry’s global sales. Significant drivers for this consolidation have been the growth and grower acceptance of biotechnology employed in row crops, and the escalation of research and development and marketing costs. The next tier of agrochemical producers, including <strong>FMC</strong>, Makhteshim-Agan Industries Ltd., Sumitomo Chemical Company Limited, Nufarm Limited, Arysta LifeScience <strong>Corporation</strong>, United Phosphorous Limited and Cheminova A/S, employ various differentiated strategies and compete by (1) unique technologies, (2) focusing on certain crops, markets and geographies, and/or (3) competitive pricing based on low-cost manufacturing positions. Some of these producers are generic competitors with little or no investment in innovation. There is a growing trend among these producers to partner with one another to gain economies of scale and competitive market access more comparable to larger competitors. Additionally, a number of these companies have grown rapidly through acquisitions of other companies and/or product divestitures from the leading crop protection companies. 8
Specialty Chemicals Financial Information (In Millions) $1000 $750 $500 $250 Specialty Chemicals: Revenue and Operating Margin 2005-2009 559 19% Revenue Operating Margin 593 20% 660 22% 765 753 20% 21% 40% 30% 20% 10% $0 0% Overview Specialty Chemicals: Capital Expenditures and Depreciation and Amortization 2005-2009 $70 $60 $50 $40 $30 $20 $10 $0 Capital Expenditure Depreciation and Amortization 30 32 34 31 31 32 33 34 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Our Specialty Chemicals segment, which represents 27 percent of our 2009 consolidated revenues, is focused on high-performance food ingredients, pharmaceutical excipients and encapsulants, biomedical technologies and lithium specialty products, all of which enjoy solid customer bases and consistent, growing demand. The significant majority of Specialty Chemicals sales are to customers in non-cyclical end markets. We believe that our future growth in this segment will continue to be based on the value-added performance capabilities of these products and our research and development capabilities, as well as on the alliances and the close working relationships we have developed with key global customers. Products and Markets Lithium Specialty Chemicals: Specialty Chemicals: 2009 Sales Mix 2009 Revenue by Region 23% 77% Bio Europe, Middle Polymer East & Africa 9 Latin America 8% Asia Pacific North 20% 40% America 32% 46 66
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FMC CORPORATION CONSOLIDATED STATEM
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FMC CORPORATION NOTES TO CONSOLIDAT
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NOTE 3: ACQUISITIONS 2009 Acquisiti
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MANAGEMENT’S ANNUAL REPORT ON INT
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FMC CORPORATION SCHEDULE II—VALUA
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ITEM 13. CERTAIN RELATIONSHIPS AND
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Exhibit No. Exhibit Description *10
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Exhibit No. Exhibit Description 23.
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Signature Title Date /S/ ROBERT C.
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COMPUTATION OF RATIO OF EARNINGS TO
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The Board of Directors FMC Corporat
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I, W. Kim Foster, certify that: CHI
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CFO CERTIFICATION OF ANNUAL REPORT
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Chairman's - FMC Corporation

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