Slide 1: Q4 2023 Earnings Presentation
Q4 2023 Earnings Presentation February 6, 2024 Q4 2023 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 that are based on our current views and assumptions regarding future events, future business conditions and the outlook
Slide 3: Q4 2023 Results
Q4 2023 Results Q4 2023 Q4 2022 2023 VS. 2022 Revenue $1,146 $1,622 -29% GAAP Net Income $1,096 $280 291% Adjusted EBITDA1 $254 $432 -41% % Revenue 22.2% 26.6% -440 bps GAAP EPS $8.77 $2.17 304% Adjusted EPS1 $1.07 $2.37 -55% Note: Amounts in millions of USD except for EPS Q4 2023 HIGHLIGHTS Reven
Slide 4: Q4 2023 Regional Revenue Drivers
Q4 2023 Regional Revenue Drivers Revenue down 29%, down 30% organically1 REGIONAL REVENUE BRIDGE North $275 million Latin $433 million -38% YOY, America -37% YOY America -41% ex-FX • Lower volume, most notably in • Lower volumes herbicides • Drought conditions in Brazil • Price in line with prior ye
Slide 5: Q4 2023 Adjusted EBITDA Drivers
Q4 2023 Adjusted EBITDA1 Drivers EBITDA1 down 41% EBITDA1 BRIDGE Note: Amounts in millions of USD KEY DRIVERS AT A GLANCE Volume, Mix, Launches Cost • Lower volume from destocking as well as additional • Input cost tailwinds headwinds in Latin America from adverse weather • Exceeded our $60-$70M of
Slide 6: FY 2023 Results
FY 2023 Results FY 2023 FY 2022 2023 VS. 2022 Revenue $4,487 $5,802 -23% GAAP Net Income $1,321 $742 78% Adjusted EBITDA1 $978 $1,407 -30% % Revenue 21.8% 24.2% -240 bps GAAP EPS $10.53 $5.81 81% Adjusted EPS1 $3.78 $7.41 -49% Note: Amounts in millions of USD except for EPS FY 2023 HIGHLIGHTS Lowe
Slide 7: 2024 Market and FMC Outlook
2024 Market and FMC Outlook • Solid end-market demand for crop protection products • Yield potentially impacted by volatile weather patterns Ag Chem Market • Channel destocking continues to be a headwind in H1 • New technologies needed to combat resistance Outlook Flat to down low-single digit globa
Slide 8: FY 2024 Financial Outlook
FY 2024 Financial Outlook FY 2023 FY 2024 Guidance REVENUE DRIVERS • Strongest growth from NPI3 increase of ~$200M, • Low-single digit price headwind with largest impact REVENUE $4.49 $4.50 - $4.70 mostly in H2 in H1 billion billion • Market expected to be flat to down low-single digits • High chann
Slide 9: Global Restructure and Cost Reduction Plan
Global Restructure and Cost Reduction Plan Transform operating model to deliver lower costs, sustained growth and superior results $50 - $75 million in 2024 (net savings vs. 2023) $150 million by end of 2025 (run rate savings) DIVEST OPERATING MODEL CHANGES REDUCE SPEND NON-CORE ASSETS ACTIONS STATU
Slide 10: Potential Range of Outcomes for 2024 Adjusted EBITDA
Potential Range of Outcomes for 2024 Adjusted EBITDA1 • Market grows mid-to-high single-digits in H2 $1.05 UPSIDE • Stronger than expected NPI2 growth billion • High end of restructuring benefits • FX tailwind • Channel destocking largely complete by end of H1 • Market flat to down low-single digit
Slide 11: Q1 2024 Financial Outlook
Q1 2024 Financial Outlook Trough earnings profile with improved performance going forward Q1 2023 Q1 2024 Guidance REVENUE DRIVERS REVENUE • Lower volume • Low-to-mid single digit overall price decline driven $1,344 $925 million - • Drought conditions in Q4 in Brazil impact by Latin America and Asia
Slide 12: Full Year 2024 Adj. EBITDA Guidance Bridge
Full Year 2024 Adj. EBITDA1 Guidance Bridge Growth in Q2 – Q4 centers on continued out-performance of NPI2 as well as restructuring benefits Q2 – Q4 $900M – $978M $1.05B Full Year Comments • NPI2 expected to grow by about $200M in 2024 ($590M in 2023) with growth driven by Premio® Star insecticide i
Slide 13: 2023 Cash Generation Significantly Impacted by Lower Payables and Adjusted EBITDA
2023 Cash Generation Significantly Impacted by Lower Payables and Adjusted EBITDA1 Q4 FY 2023 Full Year ‘23 Drivers (M) (M) $514M Adj. Cash from Significantly lower payables $318 ($300) Operations and lower Adjusted EBITDA1 Capital Additions & Includes continued investment Other Investing $27 $144 t
Slide 14: Strong 2024 Cash Flow Expected from Working Capital Release
Strong 2024 Cash Flow Expected from Working Capital Release >$1.0B of Free Cash Flow Improvement 1 2024 2023 Full Year 2024 Guidance Actual Drivers Range (M) (M) Adj. Cash from Recovery in payables $670 - $850 ($300) Operations1 and inventory $400 - 600M Capital Additions & Includes continued Other
Slide 15: Reiterating Rolling Three Year Forward Outlook
Reiterating Rolling Three Year Forward Outlook(1) 2026 Goals • Assume market grows at historical trend in low-single digits Revenue $5.5B to $6.0B Path to ’26 Outlook Unchanged 7% - 10% CAGR(2) • FMC expected to outpace market growth due to strong performance of new products and effective pricing •
Slide 16: Appendix
Q4 2023 Earnings Presentation FMC CORPORATION 16
Slide 17: Modeling Assumptions for 2024
Modeling Assumptions for 2024 Appendix $225 – $235 14 – 17 $1 – $3 million percent million INTEREST EXPENSE ADJUSTED TAX RATE1 NON-CONTROLLING INTEREST ~125.5 $172 – $180 $400 – $600 $95 – $105 million million million million FULL-YEAR WEIGHTED AVG. DILUTED SHARES DEPRECIATION & CAPITAL ADDITIONS AN
Slide 18: Q4 2023 Adjusted EPS Variance
Q4 2023 Adjusted EPS1 Variance Appendix $2.37 -$1.22 -$0.08 -$0.02 +$0.02 $1.07 Q4 ’22 Adj. EBITDA1 INTEREST EXPENSE D&A OTHER Q4 ’23 • EBITDA1 lower • Reflects • Depreciation & • Minority 41% additional debt Amortization Interest, Taxes, Share Count 1. Denotes non-GAAP financial term. Refer to non-
Slide 19: FY 2023 Regional Revenue Drivers
FY 2023 Regional Revenue Drivers Revenue down 23%, down 22% organically1 REGIONAL REVENUE BRIDGE North $1,205 million Latin $1,401 million (-16% YOY, (-33% YOY, America -15% ex-FX) America -35% ex-FX) • Lower volumes from destocking by • Lower volumes from destocking channel and growers • Adverse we
Slide 20: FY 2023 Adjusted EBITDA Drivers
FY 2023 Adjusted EBITDA1 Drivers Appendix EBITDA1 BRIDGE Note: Amounts in millions of USD KEY DRIVERS AT A GLANCE Volume, Mix, Launches Cost • Volume decline mainly from inventory destocking in all regions • Input cost favorability • Robust NPI2 sales comprised higher percentage of revenue by • Tigh
Slide 21: 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 22: Q4 2023 Earnings Presentation FMC CORPORATION
Copyright © 2024, FMC Corporation. All Rights Reserved. Q4 2023 Earnings Presentation FMC CORPORATION 22