Slide 1: Q3 2020 Earnings Presentation
Q3 2020 Earnings Presentation November 3, 2020
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. In some cases, you can identify these statements by such words or phrases as “will likely result,” “is confident that,”
Slide 3: FMC Reported Financial Results
FMC Reported Financial Results Q3 2019 Q3 2020 '20 vs. '19 Q3 Highlights 1 Revenue $1,014 $1,085 7% 15% organic revenue growth , excluding an 8% FX headwind 1 Adj. EBITDA margins increased GAAP Net Income $90 $112 25% 260 bps, driven primarily by cost % Revenue 8.8% 10.3% reductions GAAP EPS $0.69 $
Slide 4: Q3 2020 Revenue Up 7%, Up 15% Organically
Q3 2020 Revenue Up 7%, Up 15% 1 Organically Regional Revenue Bridge Asia North America ▪ Q3 ‘20 Revenue: $255 mil. ▪ Q3 ‘20 Revenue: $212 mil. (+16% YOY, +19% ex-FX) (+8% YOY) ▪ India strong in rice, soybeans, ▪ Increased planted acres in pulses, sugarcane and F&V soybeans, corn and rice in south an
Slide 5: Q3 2020 Adj. EBITDA Increased 20%
1 Q3 2020 Adj. EBITDA Increased 20% Q3 2020 Adj. EBITDA Bridge Q3 2020 Adj. EBITDA Drivers EBITDA $44 million above a strong Q3 2019, mainly driven by volume increases and cost controls Significant FX headwinds, both YOY and relative to guidance, offset partially by price increases Accelerated addit
Slide 6: FMC Is #4 in Asia Region Driven by Diverse Mix of Countries and Crops
FMC Is #4 in Asia Region Driven by Diverse Mix of Countries and Crops FMC Revenue Asia Sub-Regions & Countries Asia NA SUB-REGIONS COUNTRIES 23% 24% North Asia China | Korea | Japan | Taiwan ASEAN Indonesia | Philippines | Thailand | Vietnam | Malaysia | Cambodia LAST 12 MONTHS SW Asia Pakistan | Ba
Slide 7: FMC Presence in Asia Has Expanded Dramatically Since 2014
FMC Presence in Asia Has Expanded Dramatically Since 2014 2014 2020 Total Employees: ~1,100 Total Employees: ~2,500 NORTH ASIA NORTH ASIA SW ASIA China Korea SW ASIA China Korea Pakistan Japan Pakistan Japan India Taiwan India Taiwan INDIA Thailand INDIA Thailand ASEAN ASEAN Vietnam Vietnam Philippi
Slide 8: Fundamentals Show India Is a Significant Growth Opportunity
Fundamentals Show India Is a Significant Growth Opportunity India has highest arable land globally… …but yields are low today… …driven by low input usage 2016 Arable Land Yield 1 Low Pesticide Usage (mil. of hectares) (tonnes/ha) (kg/ha) 20 17 3 India 156 3 15 13 12 Wheat 5 4 10 7 7 5 5 5 US 152 2 1
Slide 9: Crop Demand / Exports Driving a $3B India Market Growing at 6%
Crop Demand / Exports Driving a $3B India Market Growing at 6% Crop Demand CPC Market Size Crop Mix (M tonnes) ($M – 2020 CC) +136% 7% 3% Others 673 ~$3,867 5% Corn +6% 29% Sugarcane F&V ~$636 5% Pulses Pulses Wheat ~$2,951 6% 285 Wheat Cereals ~$750 ~$413 Rice 7% Soybeans F&V ~$561 ~$829 2000 2030
Slide 10: Q3 Cash Flow Results and 2020 Cash Flow Outlook
Q3 Cash Flow Results and 2020 Cash Flow Outlook ($ in millions) Q3 '19 Q3 '20 % Chg.3 YTD '19 4 YTD '20 4 % Chg.3 2019 2020 Outlook % Chg.3 Adjusted Cash from Operations 1 $301 $376 25% $127 $367 188% $633 $750 - $850 26% Capital Additions and Other ($41) ($15) -65% ($78) ($58) -25% ($148) ($100) -
Slide 11: FCF Growth Projections and Seasonality Trends
FCF Growth Projections and Seasonality Trends FCF1 Growth FCF1 by Half-Year Increments $475 $642 (prior midpoint) (prior midpoint) FCF 18% 38% 59% Conv. Note: Amounts in millions of USD Note: Amounts in millions of USD Strong growth in both FCF dollars and Similar FCF seasonality in each year conver
Slide 12: FY 2020 and Q4 Earnings Outlook
FY 2020 and Q4 Earnings Outlook FY 2020 Q4 2020 $6.45 - $6.57 $1.70 - $1.82 Adjusted EPS +7% YOY at midpoint Flat YOY at midpoint (3) Ranges (1,2) WADSO: ~131 million WADSO: ~131 million Revenue: $4.72 - $4.78 billion Revenue: $1.23 - $1.29 billion Revenue Adj. EBITDA: $1.295 - $1.315 billion Adj. E
Slide 13: Projected FY 2020 Adj. EBITDA and Revenue Drivers (YOY)
1 Projected FY 2020 Adj. EBITDA and Revenue Drivers (YOY) FY 2020 Adj. EBITDA Bridge FY 2020 Adj. EBITDA Drivers Volume growth driven by Latin America and Asia Price coverage of FX headwinds >55% for FY 2020 Strong cost controls and accelerated SAP synergies Aug Guide: +122 +177 +5 (230) 1,295 FY 20
Slide 14: Projected Q4 2020 Adj. EBITDA and Revenue Drivers (YOY)
1 Projected Q4 2020 Adj. EBITDA and Revenue Drivers (YOY) Q4 2020 Adj. EBITDA Bridge Q4 2020 Adj. EBITDA Drivers Volume growth solid FX headwinds significant YOY headwind Price increases expected to more than offset F/X headwind Cost headwind partially due to shift in costs from Q3 Q4 2020 Revenue D
Slide 15: Appendix – Other Financial Items
Appendix – Other Financial Items Interest Expense $150 – $155 million Adjusted Tax Rate (1) 13 – 14 percent Non-Controlling Interest ~$3 million Full-Year Weighted Avg. Diluted ~131 million Shares Outstanding (WADSO) (2) Depreciation & Amortization $160 – $165 million Free Cash Flow (1) $475 – $525
Slide 16: Appendix – Regional Growth
Appendix – Regional Growth FMC Q3 % Chg % (ex-FX) YTD (Sept) % Chg % (ex-FX) Sales NA $212 8% 8% $852 0% 1% LatAm $465 1% 18% $985 7% 24% EMEA $153 10% 10% $834 -2% 0% Asia $255 16% 19% $819 4% 9% Total $1,085 7% 15% $3,490 2% 9% Note: Amounts in millions of USD 16