Fmc Corporation · NYSE:FMC
Fmc — Q4 2019 Earnings Presentation
15 slides from Fmc's earnings presentation, Feb 6, 2020
Slide 1: Q4 2019 Earnings Presentation
Q4 2019 Earnings Presentation February 6, 2020
Slide 2: Safe Harbor Statement; 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: FMC Reported Financial Results
FMC Reported Financial Results Q4 2019 Q4 2018^ '19 vs. '18 Q4 Highlights • 11% organic revenue growth, Revenue $1,197 $1,099 9% excluding a 2% FX headwind (1) • EBITDA margins increased Adj. EBITDA $320 $273 17% 180 bps YOY % Revenue 26.7% 24.9% • Strong beat vs. guidance on operational results and
Slide 4: Q4 2019 Revenue Increased 9%
Q4 2019 Revenue Increased 9% Regional Revenue Bridge Latin America North America ▪ Q4 ‘19 Revenue: $518 mil. ▪ Q4 ‘19 Revenue: $273 mil. $7 $1,197 (+10% YOY, +13% ex-FX) (+10% YOY) $21 $24 ▪ Strong double-digit growth in ▪ Lucento® fungicide demand $46 Argentina, led by herbicide strong $1,099 deman
Slide 5: Q4 2019 Adj. EBITDA Increased 17%
Q4 2019 Adj. EBITDA Increased 17% $75 $0 Q4 2019 Adj. EBITDA Drivers $320 $273 ($25) ($3) EBITDA $10 million above midpoint of guidance Stronger volume contribution & smaller cost headwind, relative to guidance Price increases across all geographies except North America where strong volume resulted
Slide 6: Full-Year 2019 Financial Results
Full-Year 2019 Financial Results 2019 2018^ '19 vs. '18 FY 2019 Highlights Revenue $4,610 $4,285 8% • 11% organic revenue growth, excluding a 3% FX headwind Adj. EBITDA (1) $1,221 $1,109 10% • Company EBITDA margins % Revenue 26.5% 25.9% increased 60 bps YOY Adjusted EPS (1) $6.09 $5.24 16% EPS vs.
Slide 7: FMC Outperforms CPC Market in All Regions in 2019
FMC Outperforms CPC Market in All Regions in 2019 FMC Revenue by Region – 2018 & 2019 (millions of USD) North America Latin America EMEA Asia WORLD 2018 $1,091 $1,210 $966 $1,018 $4,285 2019 $1,121 $1,442 $1,002 $1,045 $4,610 YOY % North America Latin America EMEA Asia WORLD +3% +19% +4% +3% +8% 201
Slide 8: FY 2019 Adj. EBITDA and Revenue Drivers (YOY)
FY 2019 Adj. EBITDA and Revenue Drivers (YOY) FY 2019 Adj. EBITDA Bridge FY 2019 Adj. EBITDA Drivers Double-digit EBITDA growth $137 despite $228M in headwinds $203 from higher costs and FX $1,221 $1,109 ($167) ($61) Strong pricing improvement across 3 of 4 geographies Price coverage of ~60% Cost +
Slide 9: 2019 Cash Flow Results and 2020 Cash Flow Outlook
2019 Cash Flow Results and 2020 Cash Flow Outlook ($ in millions) 2018^ 2019 % Chg. 2020 Outlook % Chg. Adjusted Cash from Operations 1 $464 $633 36% $735 - $935 32% Capital Additions and Other Investing Activities ($97) ($148) 53% ($135) - ($185) 8% Legacy and Transformation 2 ($237) ($183) -23% ($
Slide 10: FY 2020 and Q1 Earnings Outlook
FY 2020 and Q1 Earnings Outlook FY 2020 Q1 2020 $6.45 - $6.70 $1.76 - $1.86 Adjusted EPS +8% YOY at midpoint +5% YOY at midpoint Ranges (1,2) WADSO: ~131 million WADSO: ~131 million Revenue: $4.8 - $4.95 billion Revenue: $1.23 - $1.27 billion Revenue Adj. EBITDA: $1.3 - $1.34 billion Adj. EBITDA: $3
Slide 11: Projected FY 2020 Adj. EBITDA and Revenue Drivers (YOY)
Projected FY 2020 Adj. EBITDA and Revenue Drivers (YOY) FY 2020 Adj. EBITDA Bridge FY 2020 Adj. EBITDA Drivers $80 Volume increases +10% $125 $1,320 $1,221 ($61) ($45) $40M of cost increase is growth in R&D spending Price coverage of >100% Cost + FX headwinds (ex-incremental R&D) FY 2020 Revenue Dri
Slide 12: Projected Q1 2020 Adj. EBITDA and Revenue Drivers (YOY)
Projected Q1 2020 Adj. EBITDA and Revenue Drivers (YOY) Q1 2020 Adj. EBITDA Bridge Q1 2020 Adj. EBITDA Drivers $28 Volume increases +10% $33 $356 $343 ($32) Cost headwinds due to raw ($16) materials, tariffs and growth in R&D spending Price coverage of ~65-75% Cost + FX headwinds (ex-incremental R&D
Slide 13: Appendix – Other Financial Items
Appendix – Other Financial Items (1) Interest Expense $160 – $170 million Adjusted Tax Rate 12.5 – 14.5 percent Non-Controlling Interest $3 – $5 million Full-Year Weighted Avg. Diluted ~131 million Shares Outstanding (WADSO) (2) Depreciation & Amortization $150 – $160 million Capital Additions and O
Slide 14: Appendix – Regional Growth
Appendix – Regional Growth FMC Q4 % Chg FMC 2019 % Chg CPC Marke % (ex-FX) % (ex-FX) Sales (USD) Sales (USD) Growth (USD NA $273 10% 10% $1,121 3% 3% -6% LA $518 10% 13% $1,442 19% 23% 13% EMEA $147 5% 7% $1,002 4% 10% -3% Asia $259 9% 10% $1,045 3% 8% -5% Total $1,197 9% 11% $4,610 8% 11% 0% 14
Slide 15: Appendix – Summary of 2018
Appendix – Summary of 2018 Recast Financials (1) 1Q '18 2Q '18 3Q '18 4Q '18 FY 2018 Revenue $ 1,107.9 $ 1,154.4 $ 923.6 $ 1,099.4 $ 4,285.3 Adj. EBITDA (2) $ 329.5 $ 319.6 $ 186.5 $ 273.3 $ 1,108.9 D&A ($ 34.8) ($ 38.8) ($ 37.8) ($ 38.8) ($ 150.2) Interest Expense ($ 33.9) ($ 34.4) ($ 33.4) ($ 31.4