Fmc Corporation · NYSE:FMC
Fmc — Investor Day (November 2023)
135 slides from Fmc's investor day presentation, Nov 16, 2023
Slide 1: FMC Investor Day 2023
FMC Investor Day 2023 Mc
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made in this presentation are forward- looking statements that are based on our current views and assumptions regarding future events, future business conditions and the outlook
Slide 3: The New Strategic Plan
The New Strategic Plan Mark Douglas President, CEO
Slide 4: Investor Day Showcase
Investor Day Showcase At-plant launch featuring Xyway® brand fungicides | PrecisionPac® application innovation expansion | Zironar® biofungicide/ bionematicide launch | Supporting underserved farmers Isoflex™ active product launch to control resistant grasses Cyazypyr™ active product launches | Stew
Slide 5: FMC Investor Day 2023
FMC Investor Day 2023 Mc
Slide 6: Agenda
Agenda Current State of Crop Strategic Plan Protection Industry Strategic Imperatives FMC Actions Financial Targets 6
Slide 7: Today's Crop Protection Market
Today’s Crop Protection Market How We Got Here State of the Market FMC’s Response Pricing and Supply Inflationary prices and concerns • Prioritizing sales of existing inventory and adjusting over supply security … Channel destocking manufacturing plans 1 impacting volumes • Innovative and differenti
Slide 8: FMC Cost Efficiencies and Restructure
FMC Cost Efficiencies and Restructure Align Business Operations with Current Market Realities Restructure Brazil business Restructure company • Right size all functions and commercial teams • Every region, business line, and function • TIMING: 4Q’23 – 1Q’24 • Costs and projects re-assessed, prioriti
Slide 9: FMC's Business Fundamentals are Strong
FMC’s Business Fundamentals are Strong Differentiated portfolio with strong pricing for value New molecule introductions and new formulations driving growth Broad portfolio of insecticides, including market-leading, patent-protected diamides Fast growing, differentiated Plant Health business driven
Slide 10: New Strategic Plan
New Strategic Plan AMBITIONS Transform Deliver Maintain our relationship with superior growth our industry leadership in growers and own the and returns safety, sustainability, technical relationship and innovation Build on the core strengths of FMC • Strong innovation • Strong market access • Deep
Slide 11: New Strategic Plan: Strategic Imperatives
New Strategic Plan STRATEGIC IMPERATIVES Drive profitability and Grow leading Plant Health Accelerate discovery Be a trusted advisor competitiveness of FMC’s business with a focus on and commercialization to the grower core portfolio bio-solutions of FMC’s pipeline Lead the industry in Expand BD1 to
Slide 12: Mid-Term Goals, Long-Term Aspirations
Mid-Term Goals, Long-Term Aspirations In Support of Sustained Long-Term Value Creation 2026 Goals 2033 Aspiration Revenue $5.5B to $6.0B 1.5X to 2X+ 6% - 9% CAGR(1) Market Growth EBITDA $1.3B to $1.5B Mid-20s EBITDA 9% - 14% CAGR(1) Margin Return on Invested Capital Return to Mid-Teens Mid-Teens ~1.
Slide 13: 2024 Preliminary View
2024 Preliminary View 2024 Preliminary View Revenue $4.65B to $4.85B +3% vs. 2023(1) EBITDA $1.025B to $1.125B +8% vs 2023(1) ROIC >10% ~1.2X WACC Free Cash Flow >100% Conversion 2024 EPS Expected To Grow Faster Than EBITDA 1. Comparison of midpoint to midpoint of 2023 guidance provided 10/31/23 13
Slide 14: Right Elements to Deliver Results
Right Elements to Deliver Results FMC’s Growth is Not Dependent on Just One Element Exceptional portfolio and strong track record Breadth of FMC Plant Health business: of successful product launches biologicals, pheromones, micronutrients Extensive pipeline of new technologies, Growing Precision Ag
Slide 15: Right Elements to Deliver Results
Right Elements to Deliver Results FMC’s Growth is Not Dependent on Just One Element Exceptional portfolio and strong track record Breadth of FMC Plant Health business: of successful product launches biologicals, pheromones, micronutrients Extensive pipeline of new technologies, Growing Precision Ag
Slide 16: Delivering the Plan | Today's Presenters
Delivering the Plan | Today’s Presenters Maximizing Our Innovative Growing Our Leading Plant Portfolio in a Growing Market Health Business Diane Allemang Bénédicte Flambard, Ph.D. Executive Vice President, Vice President, Chief Marketing Officer FMC Plant Health Advancing Discovery and A Resilient,
Slide 17: Maximizing Our Innovative Portfolio in a Growing Crop Protection Market
Maximizing Our Innovative Portfolio in a Growing Crop Protection Market Diane Allemang Executive Vice President, Chief Marketing Officer
Slide 18: Historical Crop Protection Market
Historical Crop Protection Market The Crop Protection Market Has Grown at ~3% Over the Last 40+ Years 80.0 70.0 60.0 MARKET VALUE ($B) 50.0 40.0 30.0 20.0 10.0 0.0 FMC Forecast Source: AgbioInvestor, FMC Analysis 18
Slide 19: Historical Crop Protection Market
Historical Crop Protection Market The Crop Protection Market Has Grown at ~3% Over the Last 40+ Years Notable Growth Drivers 2010-2022 • In 2022, wheat reached its highest price ever, and corn and soy reached their highest point since 2012 • Demand for food increased as the world’s population grew o
Slide 20: Historical Crop Protection Market: Growth and Contraction
Historical Crop Protection Market The Market Has Periods of Growth and Contraction 80.0 70.0 60.0 MARKET VALUE ($B) 50.0 40.0 30.0 20.0 10.0 0.0 FMC Forecast Source: AgbioInvestor, FMC Analysis 20
Slide 21: Historical Crop Protection Market: Growth and Contraction
Historical Crop Protection Market The Market Has Periods of Growth and Contraction 2009 contraction factors • General economic downturn 21
Slide 22: Historical Crop Protection Market: Growth and Contraction
Historical Crop Protection Market The Market Has Periods of Growth and Contraction 2009 contraction factors 2015 contraction factors • General economic downturn • Build up of channel inventory over several years, particularly in Brazil • Weak currency in Brazil • Introduction of new, genetically mod
Slide 23: Historical Crop Protection Market: Growth and Contraction
Historical Crop Protection Market The Market Has Periods of Growth and Contraction 2009 contraction factors 2015 contraction factors 2023 contraction factors • General economic downturn • Build up of channel inventory over • Prior to 2023, the Global COVID-19 several years, particularly in Brazil pa
Slide 24: A Growing Crop Protection Market
A Growing Crop Protection Market Expect Moderate Market Growth Over the Next 10 Years Crop Protection Market ($M) 120,000 The market will be driven by key macro factors such as: 100,000 High-end of range: ~4% growth ~$95B market size by 2033 • Crop demand Middle of range: ~2-3% growth (e.g. food sec
Slide 25: The Biologicals Market is Expected to Grow Rapidly
The Biologicals Market is Expected to Grow Rapidly $26B • The market will grow driven by integration $19B of biologicals with synthetic crop protection products, enabled by precision applications, digital solutions, and data 10.5% analytics CAGR • Regulatory pressures and consumer $8B preferences cr
Slide 26: FMC's Portfolio
FMC’s Portfolio FMC’s Portfolio Composition Expected to Change Significantly Over 10-Year Period 2033 2023 Plant Health 1.5-2x+ New Pipeline AI $4.6B1 market Crop Protection growth Portfolio K E Y TA K E AW AY S Today, New Pipeline Active Ingredients (AIs) and Plant Health products account for less
Slide 27: Diamides Continue to Gain Share in the Global Insecticide Market
Diamides Continue to Gain Share in the Global Insecticide Market Leading Insecticide Active Ingredient Classes by Revenue at the Manufacturer Level (2016-2022) Highlights Global Active Ingredient Class Value • Diamides made up 2016 2017 2018 2019 2020 2021 2022 15% of the global insecticide market i
Slide 28: FMC's Diamides Growth Strategy
FMC’s Diamides Growth Strategy The Diamides Lifecycle Strategy Has Six Pillars IP & Expansion Innovation Commercial Partnerships Operations Label and Market Driven Strong, local, decision Formulations and Supply Chain & Regulatory Geographical Formulations and making, globally Tech supply Procuremen
Slide 29: Historic Post-Patent Trends
Historic Post-Patent Trends FMC’s Historical Post-Patent Performance is Very Strong Brand Owner Share of Compound Value 600 Patent Expiry (PE) Compound Value Analysis Sulfentrazone: ~95% 500 Bifenthrin: ~95% % Growth of Compound Value 400 Tebuconazole: ~95% Clomazone: ~80% 300 Azoxystrobin: ~80% 200
Slide 30: Diamide Growth Strategy: Market Expansion
Diamide Growth Strategy: Market Expansion There Are Opportunities in Untapped Markets for FMC Diamides Current Estimated Insecticide Market Area Treated by Crop & Class Spinosyns Area Treated Diamides OP Neonic Pyrethroid Other Soybeans F&V Corn Rice Cotton Sugar OSR All others Diamides and Spinosyn
Slide 31: Diamide Growth Strategy: Innovation
Diamide Growth Strategy: Innovation Branded Diamide Portfolio Expected To Grow Mid-Single Digits Over the Next Ten Years Driven By New Patented Products Current Products and New Product Introductions (NPIs) by Active Ingredient • Launching ~20 new diamide formulations from 2024-2033 - ~30% of 2026 r
Slide 32: New Product Introductions Expected To Be >50% of Branded Diamide Sales in 2033
New Product Introductions Expected To Be >50% of Branded Diamide Sales in 2033 Launching ~20 New Patented Formulations from 2024-2033 Cyazypyr ® active NPIs, including new formulations and new mixtures (e.g. Zedelis™ insecticide) Revenue Rynaxypyr® active NPIs, including new formulations and new mix
Slide 33: Diamide New Product Innovation
Diamide New Product Innovation Rynaxypyr® Active Large LEG (left) next to current sand granule product (right) Effervescent Granule (LEG) Target Crop: Rice Patent-pending, breakthrough application technology in rice farming that can drive significant cost savings and convenience of application for t
Slide 34: Diamide New Product Innovation
Diamide New Product Innovation FMC’s Pipeline of Diamide Innovation Expected to Drive Growth and Provide Critical, Unique Crop Protection Tools to Growers Around the World Exirel® Bait insecticide • Patent-pending, easy-to-use, • Brings innovation to the olive and combination of Rynaxpyr® active cit
Slide 35: Diamide Growth Strategy: Commercial
Diamide Growth Strategy: Commercial Powerful Global Brands • Research agencies have spotlighted the power of the Rynaxypyr ® active and Cyazypyr ® active products brands and their unparalleled brand awareness and brand loyalty • FMC new products will build on these brands which will boost the introd
Slide 36: The Strength of FMC's Innovative Portfolio
The Strength of FMC’s Innovative Portfolio New Products Meet Grower Needs With Proven AIs Xyway® LFR® fungicide LQM™ herbicide liquid Authority® Edge herbicide formulation technology • Provides season-long control • Patented technology combines SU • Designed as the next generation to of key diseases
Slide 37: The Power of Our New AI Pipeline
The Power of Our New AI pipeline Delivering Significant Growth In the Near and Long Term K E Y TA K E AW AY S • Collectively, we expect new active ingredients to drive ~$2B approximately $2B in sales by 2033 • Innovative and transformative technologies in all indications and all regions and will add
Slide 38: Summary Points
Summary Points Expect moderate growth of the crop protection market over the next 10 years with higher growth in biologicals, including pheromones. Robust diamide strategy supports continued growth of diamides, including new patented diamide formulations that are expected to make up more than 50% o
Slide 39: Advancing Discovery and Commercialization of FMC's New AI Pipeline
Advancing Discovery and Commercialization of FMC’s New AI Pipeline Seva Rostovtsev, Ph.D. Vice President, Chief Technology Officer
Slide 40: A Culture of Innovation Solving Growers' Future Challenges
A Culture of Innovation Solving Growers’ Future Challenges R&D investment, scientists, regulatory teams, laboratories and field stations FMC Sustainability are focused on synthetic chemical and biological crop protection Assessment Tool APPROACH INVESTMENT EMPLOYEES LOCATIONS BENCHMARK Utilize synth
Slide 41: A Productive Discovery Pipeline
A Productive Discovery Pipeline Synthetic Chemistry and Biologicals Target Markets F&V Rice Cereals Corn Soy WEED CONTROL LEADS X X X 8 X Active 5 X X X X Ingredients New Modes X X of Action X X X X X X X X X X X X INSECT & NEMATODE CONTROL LEADS X X X X X X 7 X X X X X New Modes 9 X X X X Active of
Slide 42: Rigorous Process to Advance from Discovery into Development
Rigorous Process to Advance from Discovery into Development The process of discovering a molecule lead compound, progressing it towards a safe and effective candidate, and successful commercialization into the market Synthetic ~3-5 years Synthetic ~7-12 years Discovery Pipeline Biological ~2-3 years
Slide 43: Accelerating the Discovery of Crop Protection Innovation
Accelerating the Discovery of Crop Protection Innovation Machine Learning DTU Using Machine Learning to Generate Hits Compounds Descriptors Assays Imputed Assays DNA-encoded Libraries Library of small molecules Expose immobilized Wash away non-binders Separate binders, each tagged with a unique targ
Slide 44: A Robust Development Pipeline
A Robust Development Pipeline Synthetic Chemistry and Biologicals Target Market Regions New Mode North Latin Name Launch Year1 Market Area F&V Rice Cereals Corn Soy Asia EMEA of Action2 America America WEED CONTROL Isoflex™ active Ongoing Selective (grasses) ★ x x x x ● ● ● ● Dodhylex™ active (Herbi
Slide 45: Fungicide 1
Fungicide 1 Resistance Management Tool for Asian Soybean Rust Expected Launch: 2034 - 2036 Regions: North America & Latin America Efficacy on Asian Soybean Rust Target Crops IP Landscape U.S. Composition Soybeans 4 of Matter patent Other key patent filings underway Patent Families issued in April 20
Slide 46: Dodhylex Active
Dodhylex™ Active First New Mode of Action Herbicide in Decades Expected Launch: 2026 - 2031 Regions: Asia, Latin America, North America, EMEA Efficacy on Echinochloa Species (US) Target Crops IP Landscape U.S. Composition Other key patent Rice 15 of Matter patent in filings extend Patent Families fo
Slide 47: Indazapyroxamet Insecticide
Indazapyroxamet Insecticide Novel Technology Targets Aphids on High-Value Crops and Row Crops Expected Launch: 2033 Regions: Asia, Latin America, North America, EMEA Efficacy on Cereals Target Crops IP Landscape U.S. Composition Other key patent F&V | Tree Fruits & Nuts | Cereals Cotton | Corn | Soy
Slide 48: The Future of Discovery and Development
The Future of Discovery and Development BRINGING NEW SOLUTIONS TO GROWERS THROUGH THE INNOVATION ECOSYSTEM FMC IN-HOUSE FMC INNOVATION INNOVATION OBJECTIVES R&D FMC Plant Precision Sustainability Strengthen Expand the Reimagine the Ventures Health Agriculture the Core Business Future of Our Business
Slide 49: Micropep Technologies and AgroSpheres
The Future of Discovery and Development Micropep Technologies and AgroSpheres Micropep Technologies AgroSpheres Micropep Technologies uses proprietary technology AgroSpheres is developing biodegradable to precisely enhance plant traits through the use of micro-encapsulation technology to very small
Slide 50: One of the Most Productive Crop Protection Pipelines in Agriculture
One of the Most Productive Crop Protection Pipelines in Agriculture KEY MESSAGES Anticipate grower needs – Direct our New Active >40 Ingredients1 research to create new sustainable products that address those opportunities >25 Synthetic chemistry will continue to play New Active Ingredients a signif
Slide 51: Trusted Advisor
Trusted Advisor Ronaldo Pereira EVP & President, FMC Americas
Slide 52: FMC's Commercial Organization Today
FMC’s Commercial Organization Today Serving 20,000 Customers and Millions of Growers Globally North America EMEA GO-TO-MARKET GO-TO-MARKET Distributors/Wholesalers Retailers/Co-ops Growers Distributors Retailers Growers Retailers/Co-ops Growers GROWER DYNAMICS GROWER DYNAMICS SMA M EDIUM A GE SMA M
Slide 53: FMC's Crop and Product Mix will Evolve with the Pipeline
FMC’s Crop and Product Mix will Evolve with the Pipeline Portfolio Expected to Become More Comprehensive Plant Health 5% Plant Health Insecticides Fungicides Product Mix 8% Fungicides Evolution 2023 2033 Herbicides 28% Insecticides 59% Herbicides Cotton Cotton Rice 8% Soy Rice 9% 28% Soy Crop Mix Su
Slide 54: Drivers for Product Decision Making
Drivers for Product Decision Making Commercial Technical Product Efficacy Commercial Programs and Safety Coverage of Distributors Research and Trials and Retailers Label and Regulatory Brand Equity Requirements Marketing Support Referrals from Agronomists Focus For Focus For Existing Technologies Ne
Slide 55: Grower Product Adoption Process – New Technologies
Grower Product Adoption Process – New Technologies Technical Considerations Drive Decision-Making Drivers for Decision-Making COMMERCIAL FMC needs to extend collaboration across • Commercial programs crop cycle to drive new technologies • Ease of access through Awareness Research local retailers or
Slide 56: Trusted Advisor – Early Wins
Trusted Advisor – Early Wins USA Brazil Investments Investments • Increased technical presence • Early-stage product testing with • Virtual plot tours and demos Co-operatives Corn Soybeans 3x Fungicide sales growth from 2020 to 2023 led by Xyway® 50% Product penetration growth in soybeans from 20% i
Slide 57: Early Wins – Xyway Fungicide in US Corn
Early Wins – Xyway® Fungicide in US Corn USA Xyway® Treated Corn Fungicides Investments • Increased technical presence in mid-west, especially with disease management capabilities Untreated • Virtual plot tours and demos over 2 years to supplement on-site visits 3x Fungicide sales growth from 2020 t
Slide 58: Early Wins – Overwatch Herbicide in Australian Cereals
Early Wins – Overwatch® Herbicide in Australian Cereals Australia Cereals Herbicide Investments • 100+ demo plots and several local field trials over 2 years • 1,500 growers and agronomists engaged in technical aspects • Local formulation 10% Pre-emergent Market Share in Cereals within 2 years 58
Slide 59: Twelve Focus Markets
Twelve Focus Markets Target Markets Align with Technology Pipeline North America Asia Canada Germany USA France Italy EMEA Mexico India Philippines Brazil Indonesia Australia Argentina Latin America 59
Slide 60: Targeted Investments Required & Measures of Success
Targeted Investments Required & Measures of Success Targeted Investments People Technology • Existing personnel and new hires • Innovation hubs • Technical skills development • Digital tools • Communications platforms KPIs Metrics Net Promoter Score® & K E Y T A K E AW AY Higher awareness and image
Slide 61: Grow Our Leading Plant Health Business with a Focus on Bio-solutions
Grow Our Leading Plant Health Business with a Focus on Bio-solutions Bénédicte Flambard, Ph.D. Vice President, Plant Health
Slide 62: Building FMC's World-Class Platform for Biological Crop Protection
Building FMC’s World-Class Platform for Biological Crop Protection ACQUISITIONS, PARTNERSHIPS & COLLABORATIONS MARKET DRIVERS Established First Global European Alliance Innovation Center Increased Pest Resistance 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Regulatory Hurdles Ataplan™ Cons
Slide 63: Plant Health Portfolio
Plant Health Portfolio Plant Health Crop Nutrition Inorganic Crop/Soil Enhancers Fertilizers containing Biocontrol Biofertilizers Biostimulants concentrated forms of nitrogen, phosphorus, Biocontrol products (biopesticides) protect crops from pests, Bacteria or fungi capable Seaweed extracts, potass
Slide 64: FMC Plant Health Business by Region
FMC Plant Health Business by Region North America 10% Asia 32% AccudoTM biostimulant: F&V Ethos® Brands: Corn and Soybeans Ataplan® biofungicide: F&V Zironar® biofungicide/bionematicide: Corn, Soybeans, Cotton, Sugar beets and Sugarcane Nema C S biofungicide/bionematicide: F&V Avodigen® bionematicid
Slide 65: Top Tier Global Provider of Integrated Solutions – Towards $2B
Top Tier Global Provider of Integrated Solutions – Towards $2B Global Biologicals Market = ~$26B 2033 Billion USD North America Latin America 30,000 Biostimulant $ 1.6B (2021) $ 1.4B (2021) 25,000 $ 5.2B (2033*) $ 5.0B (2033*) Biofertilizer 20,000 Biocontrol Biologicals 15,000 ~11% CAGR EMEA Asia as
Slide 66: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 WHAT HOW Biologicals as Focus 1 Invest in enhanced capabilities 2B 2 Grow commercial portfolio Integrated Approach 3 Successfully launch new products $ By 2033 4 Evaluate opportunities for inorganic growth Dual Approach to Growth 5 Scale pheromones platfor
Slide 67: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 Invest in enhanced 1 capabilities European Innovation Center • Invest in expansion of biological laboratories and greenhouses at the European Innovation Center • Establish a Plant Health- dedicated commercial organization including Plant Health-dedicated R
Slide 68: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 Foliar bacillus combination to address Grow commercial leaf spot and white mold in: 2 portfolio • Increase penetration in Soybeans Cotton Beans existing markets with existing products • Introduce existing products into new markets and Korea extend use of e
Slide 69: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 Regions Main Segment Key Attributes Diseases/Pests Latin North Asia EMEA America America Successfully launch 3 Biofungicide 1 Soil-Borne Pythium • Mode of Action: Biofungicide effect F&V Row Crops Row Crops, Row Crops Diseases Rhizoctonia through root colo
Slide 70: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 Evaluate opportunities 4 for inorganic growth Distribution R&D / Supplier M&A* • Accessing third party Partnerships* Partnerships* products through complementary partnerships • Evaluating external opportunities to access the right biological capabilities o
Slide 71: How We Plan to Achieve $2B in Sales by 2033
How We Plan to Achieve $2B in Sales by 2033 ADULT ADULT Scale pheromones 5 platform GENERATION 1 GENERATION 2 Pheromones Insecticide Pheromones Insecticide • Global introduction of a new Application Treatment Application Treatment Adult Flying Pests generation of insect pest Larvae management tools
Slide 72: Accelerating the Launch of Pheromones
Accelerating the Launch of Pheromones BioPhero Acquisition Today Automation with expansion R&D Fully functioning manual process, planned at EIC – 5x higher Process though not automated capacity achieved in screening 3 new candidates in Discovery Several candidates shortlisted Discovery and significa
Slide 73: Pheromone Production in Yeast Cell Factories
Pheromone Production in Yeast Cell Factories Significant Advances in Fermentation Technology Synthetic Biology Production Downstream Processing Field Application • Yeast strain • Biological • Purification and • Sprayable products engineering/ fermentation vs. concentration at never used before modif
Slide 74: Pheromone Development Pipeline
Pheromone Development Pipeline TARGET PEST TECHNICAL COMMERCIAL CROP REGION AI LAUNCH PRODUCT LAUNCH1 The discovery pipeline has 3 Fall 2023 2025 Global candidates in earlier Armyworm SOFERO™ FALL Corn, Cotton, Soybean, Cereals stages in addition to these development Cotton 2023 2026 Global candidat
Slide 75: Working with the Grower Every Step of the Way
Working with the Grower Every Step of the Way 1 2 Determine Engage with intensity of growers to specific insect understand fit pest problem with practices 3 4 Build positioning Provide supported by integrated field trials solution with Arc™ farm intelligence 75
Slide 76: Pheromones Field Trial Results
Pheromones Field Trial Results • 60 trials across 15 countries • Yield improvements up to 15% Program Without Pheromone Program With Pheromone Leaf Damage Ear Damage •Program conducted on insecticide resistant pest population 76
Slide 77: Leading Plant Health Business with a Focus on Bio-Solutions
Leading Plant Health Business with a Focus on Bio-Solutions Strong commercial portfolio and development pipeline with pheromones being a significant part of $2B goal Game-changing technologies and access to accelerate pheromones development pipeline with first launch expected in 2025 Key positioning
Slide 78: FMC Investor Day 2023
FMC Investor Day 2023 Mc
Slide 79: A Resilient, Agile, Cost Efficient Supply Chain
A Resilient, Agile, Cost Efficient Supply Chain Thaisa Hugenneyer Vice President, Procurement, Logistics and Global Facilities
Slide 80: Global Procurement, Operations and Logistics
Global Procurement, Operations and Logistics • Global Procurement, Operations and Logistics teams are closely integrated to ensure open communication, and strong collaboration across all functions and regions. • Continuous input Commercial Procurement Operations Logistics from Commercial teams ensur
Slide 81: A Resilient and Agile Supply Network
A Resilient and Agile Supply Network Integrated management processes drive strong alignment across FMC Procurement, Operations and Logistics organizations Strategically positioned organization provides real time insights on local events that may become disruptive Strategic relationship with supplier
Slide 82: Supporting FMC's Future Growth
Supporting FMC’s Future Growth NEW • Develop efficient, reliable supply networks to support more PRODUCTS frequent launch plans and manufacturing scale-up • More than 50 products in Plant Health portfolio, many more NEW expected to launch in coming years BIOLOGICALS • Operate a supply chain to handl
Slide 83: Strategic Imperative: Drive a Competitive and Resilient Supply Network
Strategic Imperative Drive a Competitive and Resilient Supply Network • Operate a transformed, • De-risk key supply nodes Goals digitized network • Optimize formulation flows • Advance our analytical capabilities FOCUSED INITIATIVES Strengthen resilience of supply chain while further optimizing cost
Slide 84: Strengthen Resilience of Supply Chain While Further Optimizing Cost Position
Strengthen Resilience of Supply Chain While Further Optimizing Cost Position 1 Refresh Diamides Supply Strategy 2 De-Risk Global Supply Chain Comprehensive review of supply profile Develop a fully integrated model in India Increased geographic footprint balance Increased ability to flex production c
Slide 85: Implementing Fit For Purpose End-to-End Supply Chain Network Models
Implementing “Fit For Purpose” End-to-End Supply Chain Network Models Raw Material Production Warehouse Distribution/ Traditional Suppliers Plants Worldwide Retailer Farmer Model Future Model Customer and Shareholder Value 85
Slide 86: Fit For Purpose End-to-End Supply Chain Network Models
“Fit For Purpose” End-to-End Supply Chain Network Models Refining Segmentation of Brands Cost Sensitive EXAMPLE • Lower-margin products Speed Prioritized EXAMPLES Service Prioritized • Product availability during EXAMPLES significant channel disruptions • Newly commercialized • Plant Health new p
Slide 87: A Resilient, Agile Supply Chain
A Resilient, Agile Supply Chain Strengthen resilience of supply chain while further optimizing cost position Implement “fit for purpose” end-to-end supply chain models that support FMC’s growing business needs 87
Slide 88: Delivering Superior Returns
Delivering Superior Returns Andrew Sandifer Executive Vice President, Chief Financial Officer
Slide 89: Mid- and Long-Term Targets Support Sustained Long-Term Value Creation
Mid- and Long-Term Targets Support Sustained Long-Term Value Creation 2024 2026 2033 Preliminary Outlook Goals Aspiration $4.65B to $4.85B $5.5B to $6.0B 1.5X to 2X+ Revenue +3% vs. 2023(1) 6% - 9% CAGR(2) Market Growth $1.025B to $1.125B $1.3B to $1.5B Mid-20s EBITDA EBITDA +8% vs 2023(1) 9% - 14%
Slide 90: An Unprecedented Global Correction
An Unprecedented Global Correction Global Crop Protection Chemicals Market 80,000 100% 2023 Global Channel Reset 90% 70,000 • Unprecedented double digit drop 80% across all regions from destocking 70% 60,000 • Outsized growth in ‘22 resulted in ’23 whiplash caused by higher interest 60% 50,000 rates
Slide 91: 2024 Preliminary Outlook Components
2024 Preliminary Outlook Components Increase in EBITDA Not Dependent on Full Year Market Growth 2024 Preliminary Outlook • Weak Q1 followed by progressively stronger quarters Revenue $4.65B to $4.85B as we ‘lap’ the global channel reset +3% vs. 2023(1) • Strong NPI growth • Volume and lower input co
Slide 92: Restructuring Program Will Address Near Term Pressures
Restructuring Program Will Address Near Term Pressures As Well As Position FMC for Long Term Success Program Objectives Program Structure • Address current market dynamics • C-Suite Ownership Expected Outcomes • estore and preserve FMC’s margin • Designated Executive Leadership • $150M+ run rate sav
Slide 93: Revenue Outlook
1.5X – 2X+ Market Revenue Outlook Growth • Through 2026, Core Portfolio is the Plant Health + AI pipeline primary driver of growth, with increasing New AI Pipeline grows from less than 10% contribution from New AI Pipeline and ~8% CAGR of portfolio in 2023 to over ~$2B Plant Health 2023 - 2026 35% b
Slide 94: Diamide Growth Strategy: Innovation
Diamide Growth Strategy: Innovation Branded Diamide Portfolio Expected To Grow Mid-Single Digits Over the Next Ten Years Driven By New Patented Products Current Products and New Product Introductions (NPIs) by Active Ingredient • Launching ~20 new diamide formulations from 2024-2033 - ~30% of 2026 r
Slide 95: New AI Pipeline Increasingly Contributes to Revenue Growth
New AI Pipeline Increasingly Contributes to Revenue Growth K E Y TA K E AW AY S • Fluindapyr and Isoflex™ active are growth drivers from 2023 to 2026 ~$2B • Dodhylex™ active and Rimisoxafen add additional growth from 2026 to 2033 • Four additional active synthetic ingredients in Development Pipeline
Slide 96: Plant Health Path to $2B by 2033
Plant Health Path to $2B by 2033 $2B Further Investment and Partnership Opportunities Successfully Launch New Products Including Pheromones Grow Existing Product Portfolio 2023 2033 Enhanced • Invest in expansion of biological laboratories and greenhouses at the European Innovation Center Capabiliti
Slide 97: Mid-Term EBITDA Drivers
Mid-Term EBITDA Drivers $1.3B - $1.5B $1.0B(1) • High-cost inventory and unabsorbed fixed • Positive contribution • Modest price costs impact 2024 from New Products pressure in ’24 in select markets • $50M-$75M P&L • AI Pipeline and Plant benefit in ’24 from Health Growth • Price offsets any Restruc
Slide 98: Long Term EBITDA Growth Supported by Strategic Initiatives
Long Term EBITDA Growth Supported by Strategic Initiatives Operating leverage further supports margins Plant Health an increasing contributor, anchored by biological products Mid-20s Active Ingredient pipeline adds growth percent and reinvigorates mix EBITDA Margin $1.3B - New formulations, broader
Slide 99: FMC Delivers Strong ROIC Even In Challenging Years
FMC Delivers Strong ROIC Even In Challenging Years 25 • ROIC in excess of WACC by over 6% on 20 average over past five years • Even at depressed earnings levels in 2023, 15 still earn well above WACC • ROIC recovers rapidly, returning to mid-teens % percent by 2026 10 • Fixed asset light but working
Slide 100: Free Cash Flow Recovers Rapidly Over Plan Horizon
Free Cash Flow Recovers Rapidly Over Plan Horizon Strong Free Cash Flow and Rising Average Conversion Expect Strong Free Cash Flow Recovery in 2024 Sustained Rate from 2018 to 2022 through 2026 90% 70+% 750 80% 80% Rolling 3 year FCF 68% 67% 70% conversion rate of 70+% from 2026 60% 21% onward 500 6
Slide 101: Healthy Leverage and Working Capital Prior to Global Market Reset
Healthy Leverage and Working Capital Prior to Global Market Reset Net Leverage At Or Below Trade Working Capital Also At Targeted Levels Prior To Reset Historically Normal Levels Prior To Reset Rolling 4 Quarter Average Net Debt / TTM EBITDA Net Trade Working Capital(1) / TTM Sales 3.20 80% Global 7
Slide 102: Returning Leverage and Working Capital To Normal Levels
Returning Leverage and Working Capital To Normal Levels Covenant Amendment Moving Forward • Expect peak leverage Q1 2024 • Focus throughout 2024 on returning Working Capital to more normal levels – Inventory → Receivables → Collections – Cautiously ramp production to keep Inventory at lower targeted
Slide 103: Balance Sheet Strength and Targets
Balance Sheet Strength and Targets Committed to Solid Investment Grade Ratings • BBB/A-2, Baa2/P-2 or better • Current metrics out of line with target rating • Returning to metrics in line with target rating a key priority New Target: ~2.0X Net Debt / Adj. EBITDA (4 Qtr. Avg.) • We believe consisten
Slide 104: Cash Deployment Priorities
Cash Deployment Priorities MAINTAIN TARGET LEVERAGE Debt a source or use of cash to deploy depending on leverage levels INORGANIC GROWTH SHARE REPURCHASES FREE Enhance growth with Return remaining cash flow CASH modest inorganic growth to shareholders through FLOW investments periodic share repurcha
Slide 105: Mid- and Long-Term Targets Support Sustained Long-Term Value Creation
Mid- and Long-Term Targets Support Sustained Long-Term Value Creation • Realistic outlook for 2024 – Self-help and new products key drivers 2024 2026 2033 Preliminary Outlook Goals Aspiration – Not counting on market recovery to deliver Revenue $4.65B to $4.85B $5.5B to $6.0B 1.5X to 2X+ EBITDA grow
Slide 106: The New Strategic Plan Closing Remarks
The New Strategic Plan Closing Remarks Mark Douglas President, CEO
Slide 107: FMC Investment Thesis
FMC Investment Thesis Compelling Expectations Through 2026 6 – 9% CAGR 9 – 14% CAGR ~24% Adj. EBITDA Margin Organic Revenue Growth Adjusted EBITDA Growth ~260 BPS Expansion Return to Adjusted EPS Growing Faster 70%+ Than Adjusted EBITDA Mid Teens FCF Conversion1 ROIC Mid- and Long-Term Factors Suppo
Slide 108: FMC Investor Day 2023
FMC Investor Day 2023 Mc
Slide 109: Appendix
Appendix FMC Investor Day 2023
Slide 110: FMC's Diamide Revenues are Diversified
FMC’s Diamide evenues are Diversified FMC Diamide Revenue FMC Diamide Revenue by Active Ingredient* (2022) Partners vs Branded* (2022) Highlights Cyazypy® Partners • Cyazypyr® makes up more than 20% of overall $2.1 $2.1 FMC diamide sales billion billion • Partner sales make up Branded 30%-40% of ove
Slide 111: The Discovery Pipeline
The Discovery Pipeline Synthetic Chemistry and Biologicals Target Markets Name Market Area New Mode F&V Rice Cereals Corn Soy of Action WEED CONTROL Herbicide A Selective (broadleaf) ★ X X X Herbicide B Selective Broad Spectrum (new chemical class) X Herbicide C Selective Broad Spectrum ★ X X X X He
Slide 112: A Robust Development Pipeline
A Robust Development Pipeline Synthetic Chemistry and Biologicals Target Market Regions New Mode North Latin Name Launch Year1 Market Area F&V Rice Cereals Corn Soy Asia EMEA of Action2 America America WEED CONTROL Isoflex™ active Ongoing Selective (grasses) ★ x x x x ● ● ● ● Dodhylex™ active (Herbi
Slide 113: Isoflex Active
Isoflex™ Active New Mode of Action Herbicide Expected Launch: Ongoing Regions: Asia, Latin America, North America, EMEA Efficacy on Ryegrass Target Crops IP Landscape Cereals | Rapeseed | Corn | Pulses Additional crops under evaluation in regional projects. 15 Patent Families Innovation Features and
Slide 114: Isoflex Active
Isoflex™ Active New Mode of Action Herbicide Technical and Performance Attributes – Overwatch® herbicide1 Metric Parameter Overwatch® Competitor Overwatch® Herbicide Summary Increased Crop Biomass Herbicide Efficacy ++++ ++++ Excellent control of key grass weeds and selected broadleaf weeds >= to co
Slide 115: Dodhylex Active
Dodhylex™ Active First New Mode of Action Herbicide in Decades Expected Launch: 2026 - 2031 Regions: Asia, Latin America, North America, EMEA Efficacy on Echinochloa species (US) Target Crops IP Landscape U.S. Composition Other key patent Rice 15 of Matter patent in filings extend Patent Families fo
Slide 116: Dodhylex Active
Dodhylex™ Active First New Mode of Action Herbicide in Decades Technical and Performance Attributes Japonica Rice Transplanted Rice Mechanization HERBICIDE Dodhylex™ Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Resistance/Cross Indica Resistance +++++ ++++ ++++ + + ++ Japonica Ja
Slide 117: Dodhylex Active
Dodhylex™ Active First New Mode of Action Herbicide in Decades • Dodhylex™ provides excellent control of major weed species that have developed resistance. Weeds Class Japan Korea China India ASEAN US LATAM Sample of weed Echinochloa species/complex Grass R R R R R R R species now resistant [R] to L
Slide 118: Rimisoxafen
Rimisoxafen New Dual Mode of Action Herbicide for Resistant Broadleaf Weeds including Palmer Amaranth Expected Launch: 2028 Regions: North America, Latin America, Asia, EMEA Efficacy on Palmer Amaranth Target Crops IP Landscape Corn | Soybeans U.S. Composition Other key patent Exploring additional c
Slide 119: Rimisoxafen
Rimisoxafen New Dual Mode of Action Herbicide for Resistant Broadleaf Weeds Technical and Performance Attributes PRE-EMERGENCE CORN AND SOYBEANS (U.S.) Palmer amaranth control / 29 days post application Herbicide 3 Herbicide 3 Competitor 1 Competitor 2 Competitor 3 Herbicide Solo Premixtures Premixt
Slide 120: Herbicide 2
Herbicide 2 New PDS Type Herbicide to Address Resistance Management Expected Launch: 2030 Regions: EMEA Efficacy on Papaver rhoeas Target Crops IP Landscape Cereals (Wheat & Barley) 6 Patent Families Innovation Features and Benefits Untreated Control Herbicide 2 • Tool for resistance management in •
Slide 121: Herbicide 2
Herbicide 2 New PDS Type Herbicide to Address Resistance Management Technical and Performance Attributes Herbicide 2 + IsoflexTM Active & Competitor 1 Competitor 2 Competitor 3 HERBICIDE 2 ATTRIBUTES Herbicide other premixtures Premixtures Premixtures Premixtures • Single isomer of current FMC’s com
Slide 122: Herbicide 4
Herbicide 4 Novel Mode of Action Herbicide with Strong Broadleaf Activity Expected Launch: 2035 Regions: North America, Latin America, Asia Efficacy on Ambrosia in Corn and Soybeans (country) Target Crops IP Landscape Corn | Soybeans | Cereals U.S. Composition Other key patent Rice and sugarcane bei
Slide 123: Herbicide 4
Herbicide 4 Novel Mode of Action Herbicide with Strong Broadleaf Activity Technical and Performance Attributes POST-EMERGENCE DRONE IMAGE | Demonstrating Ambrosia species efficacy Metric Parameter Herbicide 4 Competitor Herbicide 4 Summary FLA-19-442 Efficacy +++++ +++ Excellent control of Ambrosia
Slide 124: Indazapyroxamet Insecticide
Indazapyroxamet Insecticide Novel Technology Targets Aphids on High-Value Crops and Row Crops Expected Launch: 2033 Regions: Asia, Latin America, North America, EMEA Efficacy on Cereals Target Crops IP Landscape U.S. Composition Other key patent F&V | Tree Fruits & Nuts | Cereals Cotton | Corn | Soy
Slide 125: Indazapyroxamet: Beyond Insect Control Attributes
Indazapyroxamet Novel Technology Targets Aphids on High-Value Crops and Row Crops VALUE PROPOSITION: Benefits Beyond Just Insect Control SUPERIOR CROP PROTECTION FROM PEST DAMAGE ‘BEYOND INSECT CONTROL’ ATTRIBUTES YIELDS Indazapyroxamet applications early in the crop cycle and continued crop mainten
Slide 126: Indazapyroxamet
Indazapyroxamet Novel Technology Targets Aphids on High-Value Crops and Row Crops Technical and Performance Attributes EFFICACY ON APPLES (U.S.) Metric Parameter Indazapyroxamet Competitor Indazapyroxamet Summary Rosy apple aphid control Efficacy +++++ +++ Excellent control of piercing-sucking pest
Slide 127: Fluindapyr Fungicide
Fluindapyr Fungicide Novel SDHI Fungicide Expected Launch: Ongoing Regions: North America, Latin America, Asia, EMEA Efficacy on Soybeans Target Crops IP Landscape U.S. Composition Other key patent Soybeans | Corn | Cotton | Cereals Rapeseed | Tree Nuts | F&V | Turf 9 of Matter patent in filings ext
Slide 128: Fluindapyr
Fluindapyr Novel SDHI Fungicide Technical and Performance Attributes Tremisia™ fungicide efficacy on Rice Sheath Blight Crop Segment Key Targets1 Product Asian Soy Rust* +++ ONSUVA™ fungicide Soybean Target leaf spot +++++ ONSUVA™ fungicide Frogeye leaf spot +++++ ADASTRIO™ fungicide Gray leaf spot
Slide 129: Fungicide 1
Fungicide 1 Resistance Management Tool for Asian Soybean Rust Expected Launch: 2034 - 2036 Regions: North America & Latin America Efficacy On Asian Soybean Rust Target Crops IP Landscape U.S. Composition Soybeans 4 of Matter patent Other key patent filings underway Patent Families issued in April 20
Slide 130: Fungicide 1
Fungicide 1 Resistance Management Tool for Asian Soybean Rust Technical and Performance Attributes EFFICACY ON Asian Soybean Rust (Brazil) Untreated Control Fungicide 1 Competitive Product Effective against resistant Asian Soybean Rust populations Crop Segment Key Target Performance 1 Notes Better t
Slide 131: Biologicals Pipeline
Biologicals Pipeline Main Regions Segment Key Attributes Diseases/Pests Asia EMEA Latin America North America Biofungicide 1 Soil-Borne Pythium • Mode of Action: Biofungicide effect through root F&V Row Crops Row Crops, Row Crops Diseases Rhizoctonia colonization and production of metabolites F&V Fu
Slide 132: Pheromone Development Pipeline
Pheromone Development Pipeline TARGET PEST TECHNICAL COMMERCIAL CROP REGION AI LAUNCH PRODUCT LAUNCH1 The discovery pipeline has 3 Fall 2023 2025 Global candidates in earlier Armyworm SOFERO™ FALL Corn, Cotton, Soybean, Cereals stages in addition to these development Cotton 2023 2026 Global candidat
Slide 133: Global Market is Expected to Continue to Grow Rapidly at Double Digits in all 5 Continents
Global Market is Expected to Continue to Grow Rapidly at Double Digits in all 5 Continents Global Biologicals Market = ~$ 26B 2033 Across all regions, the market is expected to grow Billion USD 30,000 North America 10.2% CAGR EMEA 10.1% CAGR $1.6B (2021) $ 2.8B (2021) 25,000 $ 5.2B (2033*) $ 9.0B (2
Slide 134: Supporting ROIC Calculation
Supporting ROIC Calculation Full Year Adjusted Earnings + Net Interest Expense (After Tax) ROIC* = 2 Year Average of Total Debt + Total Equity (Excluding NCI) 2022 Example $1,069M FMC ROIC = $6,474M = 16.5% Full Year Adjusted Earnings $938M1 + ((Interest Expense $152M2 * (1 – Non-GAAP Effective Tax
Slide 135: FMC Trademark and Copyright Ownership and Product Label Notice
FMC Trademark and Copyright Ownership and Product Label Notice FMC, the FMC logo, Accudo, Adastrio, Altacor, Arc, Ataplan, Authority, Avodigen, Benevia, Coragen, Cyazypyr, Dodhylex, Elevest, Entazia, Ethos, Exirel, Fidresa, Frootus, Furagro, Imensia, Isoflex, Kalida, Legend, LFR, LQM, Nema C, Nutrom