BAML Global Agriculture and Materials Conference. February 28, 2018

Transcription

1 BAML Global Agriculture and Materials Conference February 28, 2018

2 Safe Harbor Statement Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporation's 2016 Form 10-K and other SEC filings. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. FMC Corporation does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance. Non-GAAP Financial Terms These slides contain certain non-gaap financial terms which are defined on our website In addition, we have also provided on our website at reconciliations of non-gaap terms to the most directly comparable GAAP term. Amounts in this presentation focus on Adjusted Earnings for all EBIT, EBITDA and EPS references. Although we provide forecasts for adjusted EPS and adjusted cash from operations (both of which are non-gaap financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to restructuring, acquisition charges, and discontinued operations and related cash activity. As a result, no GAAP outlook is provided. 2

3 FMC Agricultural Solutions By Region By Technology NA LA EMEA APAC 23% 25% 25% 22% 28% Herbicide Insecticide Fungicide Plant Health and Other 8% 4% 58% 32% By Crop Type Soybeans Rice TF&V Sugarcane Peas/beans OSR Cereals Vegetables Cotton Corn Potatoes Other 2% 2%2% 9% 6% 7% 7% 8% 11% 20% 12% 14% 3

4 Herbicides Insecticides FMC Agricultural Solutions - Enhanced Portfolio Legacy FMC Ag Solutions FMC Ag Solutions (2018) 1% 5% 5% 13% 33% 90% 53% Broad-spectrum Selective Chewing Selective Piercing-sucking Acaricides Broad-spectrum Selective Chewing Selective Piercing-sucking Acaricides Biologicals Oth 5% 16% 6% FMC 43% Pre-plant/pre-emerg grass Pre-plant/pre-emerg BL Pre-plant/pre-emerg cross-spectrum Post grass 35% 5% FMC+X 30% Pre-pla Pre-pla Pre-pla cross-s Post gr 30% Post BL 9% 21% Post BL Post cross-spectrum Post cr Pre-emerg. Broadleaf Pre-emerg. Cross-spectrum Post- Grass Post- Broadleaf Post- Cross-spectrum 4

5 * $ Billions Percent Change Global Crop Protection Chemical Market $60 40% $50 30% $40 20% $30 10% $20 0% $10-10% $- -20% Source: Phillips McDougall, FMC *2017 estimate is FMC estimate 5

6 Ag Solutions Recap of 4Q 2017 Results and Guidance 4Q 2017 Results 4Q 2017 Revenue: $866 million Overall +40% vs. 4Q 16 Legacy +9% vs. 4Q 16 Acquisition $193 million 4Q 2017 EBITDA: $223 million 1Q 2018 Outlook 1Q 2018 Revenue: $1.0 to $1.07 billion +95% vs. 1Q 17 1Q 2018 EBITDA: $290 - $320 million +200% vs. 1Q 17 Full Year 2017 Full-year 2017 Revenue: $2.5 billion Overall +11% vs Legacy +3% vs Full-year 2017 EBITDA: $576 million +20% vs with 2 months of acquisition impact Full Year 2018 Outlook Full-year 2018 Revenue: $4.05 billion Overall +60% vs Legacy +2% to +4% Acquired products +6% to +10% Full-year 2017 EBITDA: $1.1 billion +91% vs

7 Agricultural Solutions Key Drivers for 2018 Overall Ag Chem Market Growth USD Asia up low- to mid-single digits Latin America up low-single digits North America flat to up low-single digits EMEA flat to up low-single digits Total flat to up low-single digits FMC Legacy Rev. +2% to +4% Brazil Asia EMEA Volume/Price in Soybean / Cotton / Sugarcane Growth from Rice / Fruits & Veg. mainly in India / ASEAN / China and Cotton growth in AUS / India New direct market access in FRA, price increases and new product introductions Acquired Business Rev. +6% to +10% Cyazypyr insect control Rynaxypyr insect control SU's 7 Growth from Cotton / Soybean in Brazil New registrations in EMEA New product introduction in Soybean in Brazil Continuous crop and geographic expansion [Rice/Sugarcane in India] Penetrate further into ASEAN countries New formulations in North America

8 FMC Free Cash Flow 2018 Guidance (1) (FMC) 2018 Normalized (2) (ex-lithium) Total EBITDA Working Capital Change (230) (50) Legacy Liabilities (3) (85) (85) Interest &Tax (285) (285) Adj. Cash from Oper Total CapEx (250) (120) Free Cash Flow (1) Based on midpoint of 2018 guidance ranges (2) Assumes Lithium is separate public company, and $100m savings from SAP implementation (3) Pensions, environmental, and other liabilities 8