Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation February 8, 2023 Q4 2022 Earnings Presentation FMC CORPORATION 1
Slide 2: Safe Harbor Statement and Non-GAAP Financial Terms
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. In some cases, you can identify these statements by such words or phrases as “will likely result,” “is confident that,
Slide 3: Record Q4 2022 Results
Record Q4 2022 Results Q4 20211 Q4 2022 2022 VS. 20211 Revenue $1,414 $1,622 15% GAAP Net Income $185 $280 52% Adjusted EBITDA2 $370 $432 17% % Revenue 26.2% 26.6% ~40 bps GAAP EPS $1.50 $2.17 45% Adjusted EPS2 $2.12 $2.37 12% Note: Amounts in millions of USD except for EPS Q4 2022 HIGHLIGHTS Reve
Slide 4: Q4 2022 Regional Revenue Drivers
Q4 2022 Regional Revenue Drivers Revenue up 15%, up 17% organically1 REGIONAL REVENUE BRIDGE North $440 million Latin $694 million +13% YOY, America +35% YOY America +9% ex-FX • Price increases in the quarter • Price increases in the quarter • Strong channel and grower • Growth led by Brazil with sa
Slide 5: Q4 2022 Adjusted EBITDA Drivers
Q4 2022 Adjusted EBITDA1 Drivers EBITDA1 up 17% Point of inflection – Price was higher than Cost + FX EBITDA1 BRIDGE Note: Amounts in millions of USD KEY DRIVERS AT A GLANCE Volume, Mix, Launches Cost • Volume growth led by herbicides and fungicides • Continued SG&A and R&D investments in growth • S
Slide 6: Record FY 2022 Results
Record FY 2022 Results FY 20211 FY 2022 2022 VS. 2021 Revenue $5,045 $5,802 15% GAAP Net Income $737 $742 1% Adjusted EBITDA2 $1,314 $1,407 7% % Revenue 26.0% 24.2% (180) bps GAAP EPS $5.73 $5.81 1% Adjusted EPS2 $6.87 $7.41 8% Note: Amounts in millions of USD except for EPS FY 2022 HIGHLIGHTS Rev
Slide 7: Significant Progress Across Sustainability and Biologicals
Significant Progress Across Sustainability and Biologicals SUSTAINABILITY PLANT HEALTH / BIOLOGICALS Significant progress in ESG rankings—FMC at or above the industry average in 2022. Launches and Registrations 17 Biologicals CDP D- B- A- A 19 New Plant Health products launched globally 2 Crop Nutri
Slide 8: Significant Progress Across Precision Agriculture and FMC Ventures
Significant Progress Across Precision Agriculture and FMC Ventures PRECISION AGRICULTURE FMC VENTURES Continued geographic expansion Recent Investments of Arc™ farm intelligence, FMC’s propriety mobile solution that helps ~6,500 Traive: Credit and financing platform tailored for growers farmers mana
Slide 9: 2023 Market and FMC Outlook
2023 Market and FMC Outlook • Robust soft commodity prices • Yield impacted by volatile weather; new technologies needed • Solid demand for crop protection products • FX volatility Ag Chem Market North America Market Up Low-Single Digit Latin America Market Down Mid-Single Digit Outlook Asia Market
Slide 10: FY 2023 Financial Outlook
FY 2023 Financial Outlook FY 2022 FY 2023 Guidance REVENUE DRIVERS REVENUE • Revenue growth balanced between price and • New launches and market access expansion drive $5,802 $6,080 - $6,220 volume for the full year volume growth million million • Targeting mid-single digit price increases • Modest
Slide 11: Q1 2023 Financial Outlook
Q1 2023 Financial Outlook Q1 2022 Q1 2023 Guidance REVENUE DRIVERS REVENUE • Revenue growth driven by price as opposed to • New launches and market access expansion drive $1,351 $1,410 - $1,450 volume for the quarter volume growth million million • Targeting mid-to-high single digit price increases
Slide 12: Potential Range of Outcomes for 2023 Adjusted EBITDA
Potential Range of Outcomes for 2023 Adjusted EBITDA1 • Mid-to-high single digit market growth • High-single digit price increases $1,560 UPSIDE • Better than anticipated mix million • Cost headwinds ease more rapidly • Lower FX impact Low-single digit market growth MID-POINT Mid-single digit pric
Slide 13: 2022 Cash Flow Results and Deployment
2022 Cash Flow Results and Deployment 2022 CASH GENERATION ($ million) CASH DEPLOYMENT Cash from Operations $660 • Working capital growth due to year-on-year inflationary impacts and Adjusted Cash from Operations1 $661 higher sales • Investments in capacity Capital Additions and Other Investing Acti
Slide 14: 2023 Cash Flow Outlook
2023 Cash Flow Outlook 2023 CASH GENERATION OUTLOOK ($ million) CASH DEPLOYMENT OUTLOOK Cash from Operations • Working capital growth $800 - $920 due to year-on-year Adjusted Cash from Operations1 inflationary impacts • Dividend payments at the increased rate announced in December 2022 • Investments
Slide 15: Free Cash Flow and Cash Deployment Trends
Free Cash Flow1 and Cash Deployment Trends FREE CASH FLOW1 TRENDS 2018-2023G CASH DEPLOYMENT 2019 – 2022 90% Incremental Net Incremental Net Acquisitions Debt Debt 80% 80% 2,000 and Other 750 67% 70% 2022 FCF 68% 67% 65% 60% 1,500 62% 55% Dividends 500 50% 2021 FCF 42% 40% 1,000 38% 30% 250 Share 20
Slide 16: Appendix
Q4 2022 Earnings Presentation FMC CORPORATION 16
Slide 17: Modeling Assumptions for 2023
Modeling Assumptions for 2023 Appendix $200 – $210 14 – 16 $2 – $6 million percent million INTEREST EXPENSE ADJUSTED TAX RATE1 NON-CONTROLLING INTEREST ~126.5 $178 – $182 $530 – $720 $140 – $180 million million million million FULL-YEAR WEIGHTED AVG. DILUTED SHARES DEPRECIATION & CAPITAL ADDITIONS A
Slide 18: Q4 2022 Adjusted EPS Variance
Q4 2022 Adjusted EPS1 Variance Appendix $2.12 +$0.43 -$0.08 -$0.07 -$0.03 $2.37 Q4 ’21 Adj. EBITDA1 INTEREST EXPENSE TAXES OTHER Q4 ’22 • EBITDA1 up • Significantly • Higher YoY • Minority Interest 17% higher interest taxes ($0.04), Share rate count +$0.02, environment and rounding ($0.01) 1. Denote
Slide 19: FY 2022 Regional Revenue Drivers
FY 2022 Regional Revenue Drivers Appendix REGIONAL REVENUE BRIDGE North $1,436 million Latin $2,088 million +28% YOY, America +29% YOY America +25% ex-FX • Multiple pricing actions through the • Multiple pricing actions through the year year • Double digit gains in all product • Commodity price and
Slide 20: FY 2022 Adjusted EBITDA Drivers
FY 2022 Adjusted EBITDA1 Drivers Appendix EBITDA1 BRIDGE Note: Amounts in millions of USD KEY DRIVERS AT A GLANCE Volume, Mix, Launches Cost • Volume growth across all regions and Plant Health • Unprecedented cost headwinds, ~2.5x 2021 cost headwinds • Mix improvement led by new launches and growth
Slide 21: Cash Flow Results
Cash Flow Results Appendix ($ in millions) 20201 20211 2022 Adjusted Cash from Operations2 $801 $908 $661 Capital Additions and Other Investing Activities $88 $114 $119 Legacy & Transformation $169 $81 $28 Free Cash Flow (FCF)2 (before dividends, repurchases and M&A) $544 $713 $514 FCF Conversion2 6
Slide 22: Additional Disclaimers
Additional Disclaimers Always read and follow all label directions, restrictions and precautions for use. Products listed here may not be registered for sale or use in all states, countries or jurisdictions. No offer for sale, sale, or use of any such products is permitted prior to the issuance of t
Slide 23: Q4 2022 Earnings Presentation FMC CORPORATION
Copyright © 2023, FMC Corporation. All Rights Reserved. Q4 2022 Earnings Presentation FMC CORPORATION 23