4Q 2017 Earnings Presentation February 13, 2018
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 www.fmc.com. In addition, we have also provided on our website at www.fmc.com 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
FMC Reported Financial Results 4Q (1)* Full Year 4Q 2017 4Q 2016 (1) '17 vs. '16 2017 2016 (1) '17 vs. '16 Revenue $980 $688 42% 42.4% $2,879 $2,539 13% Adj. Oper. Profit (2) $204 $118 72% 72.9% $510 $386 32% % Revenue 20.8% 17.2% 17.7% 15.2% Adjusted EPS (2) $1.10 $0.66 67% $2.71 $1.92 41% GAAP Net Income $531 $16 3138% 3218.8% $538 $212 154% % Revenue 54.2% 2.4% 18.7% 8.3% GAAP EPS $3.94 $0.12 3183% $3.99 $1.56 156% Note: Amounts in millions of USD (1) Recasted results, excluding Health and Nutrition (discontinued operations). (2) Denotes non-gaap financial term. Refer to definitions at the beginning of this presentation. 3
4Q 2017 Agricultural Solutions Reported Results Segment Results Segment Revenue Bridge 4Q 2017 4Q 2016 Revenue $866 $618 $618 ($17) $62 $10 $673 $193 $866 Earnings $189 $127 % Revenue 21.8% 20.6% Note: Amounts in millions of USD 4
Ag Solutions 4Q 2017 Regional Performance North America 4Q 17 Revenue: $216 million (+38% vs. PY; Legacy +14%) Strong growth of pre herbicides driven by positive 2018 soybean acreage expectations Strong demand for acquired SU herbicide portfolio Europe 4Q 17 Revenue: $93 million (+59% vs. PY; Legacy +13%) Favorable customer response on direct market access transition in France Good growth in Eastern Europe Latin America 4Q 17 Revenue: $354 million (+21% vs. PY; Legacy +3%) FMC benefitted from channel inventory reductions in Brazil Growth in Brazil soybean acreage for 2017 / 2018 season Successful launches of new products Asia 4Q 17 Revenue: $203 million (+84% vs. PY; Legacy +14%) Strong growth in Plant Health portfolio Successful launches of new products Insecticide growth in India 5
4Q 2017 Lithium Reported Results Segment Results 4Q 2017 4Q 2016 Segment Earnings Bridge $6 Revenue $113 $71 $24 ($6) ($1) $44 Earnings $44 $21 $21 % Revenue 38.9% 30.2% Revenue Impact Volume: 26% F/X: 1% Price/Mix: 34% 4Q 2016 Price / Mix Volume Cost & Other F/X 4Q 2017 Note: Amounts in millions of USD 6
FY 2018 and 1Q Earnings Outlook (1) FY 2018 1Q 2018 Segment Revenue AGS Revenue: $3.95 to $4.15 billion EBITDA: $1.05 to $1.15 billion Revenue: $1.0 to $1.07 billion EBITDA: $290 to $320 million & EBITDA (1) Lithium Revenue: $420 to $460 million EBITDA: $180 to $200 million Revenue: $95 to $110 million EBITDA: $44 to $48 million FMC Adjusted EPS (1) $5.20 to $5.60 $1.45 to $1.59 (1) Denotes non-gaap financial term. Refer to definitions at the beginning of this presentation. 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 Growth 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 Outpacing Market Cyazypyr insect control Rynaxypyr insect control SU's 8 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
FMC DRIVERS MARKET Lithium Key Drivers for 2018 & Beyond Market Supply / Demand Remains a Positive Demand continues to accelerate; 1 million MT/yr will be required by 2025 (on an LCE basis) Additional investment will be required in both brine and hard rock resources to meet demand Market reliance on high-cost production creates price floor that will persist for several years Higher 2018 Prices / Multi-Year Contracts Majority of 2018 revenue is under multi-year contracts with defined price range for the out-years All product categories realizing higher prices versus 2017 Higher LCE & Hydroxide Production Successful debottlenecking projects increase FMC production to ~ 21,000 MT LCE in 2018 Full year of production at new (sold out) lithium hydroxide plant in China Capital investment to progress lithium hydroxide and lithium carbonate expansions per announced plans 9
Millions of Pure EVs Lithium Demand (kmts of LCEs) Lithium Demand Outlook Pure EV s Lithium Demand Pure EVs Other Energy Storage Other Applications 14 1,200 12 1,000 10 China 800 8 Other 600 6 4 ROW 400 2 0 China ROW China ROW OEM Region OEM Region OEM Region 200 0 Other LiOH Other LiOH LiOH 2017 2020 2025 2017 2020 2025 FMC Estimate of Effective Capacity Source: FMC estimates 10
200 kmt 335 kmt Estimated Cash Cost Estimated Total 2017 Demand Estimated Cash Cost Estimated Total 2020 Demand Lithium Supply Outlook Cost Curves 2017 Lithium Carbonate Cost Curve 2020 Lithium Carbonate Cost Curve Current Carbonate Market Price Range ($11-14/kg) Current Carbonate Market Price Range ($11-14/kg) Brine - Argentina Brine - Chile Brine China / ROW Spodumene Sources Source: FMC estimates 11
2017 Cash Flow & Outlook Full Year Outlook ($ in millions) 2017 2016R* '17 vs. '16 Outlook 2018 '18 vs. '17 Cash From Operations (GAAP) $315 $369 ($54) Adjusted Cash from Operations 1 $393 $392 $1 $550 - $650 $207 Of Which: Operating Cash Flow 1,2 $586 $617 ($31) $920 - $1020 $384 Pensions, Tax, Interest ($164) ($179) $15 ($310) - ($350) ($166) All Other Operating Cash Flow 1,3 ($29) ($46) $17 ($30) - ($50) ($11) Capital Expenditures ($86) ($91) $6 ($225) - ($275) ($164) (1) Denotes non-gaap financial term. Refer to definitions at the beginning of this presentation. (2) Operating Cash Flow reflects EBITDA plus / minus changes in working capital, excluding all discontinued operations [e.g., Health and Nutrition]. (3) Restructuring expenses and environmental remediation of continuing operations. * Recasted results, excluding Health and Nutrition (discontinued operations). 12