Fmc Corporation · NYSE:FMC
Fmc — Investor Day (November 2020)
71 slides from Fmc's investor day presentation, Nov 17, 2020
Slide 1: Investor Technology Update
1 November 17, 2020 Investor Technology Update Investor Technology Update
Slide 2: Safe Harbor Statement
2 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: Opening Remarks
3 Opening Remarks PRESENTED BY Mark Douglas President Chief Executive Officer Investor Technology Update
Slide 4: Today's Topics and Presenters
4 Today’s Topics and Presenters Opening Remarks Mark Douglas President Chief Executive Officer Technology Portfolio Overview Dr. Kathleen Shelton Vice President Chief Technology Officer Questions Valuing the Pipeline Diane Allemang Vice President Chief Marketing Officer Financial Implications and Po
Slide 5: Technology and Sustainability Must Address World Challenges
5 Technology and Sustainability Must Address World Challenges • Demand for food, protein and feed is rising annually. Global Risks Landscape • Farmers must produce more crops on less land. During Next Decade1 • Environment-related risks rate highest for their impact and likelihood to affect world’s
Slide 6: Our Commitment to Technologies that Maintain a Safe, Secure and Sustainable Food Supply
6 Our Commitment to Technologies that Maintain a Safe, Secure and Sustainable Food Supply R&D Spend on ESG PRIORITIES INNOVATIONS Sustainably 100% Advantaged Products BY 2025 ENVIRONMENTAL SOCIAL GOVERNANCE Safety Total Recordable Incident <0.1 • Energy Use • Gender Equality • Transparency BUSINESS
Slide 7: Office of the Chief Sustainability Officer
7 Office of the Chief Sustainability Officer • Broaden FMC’s Environmental, Social and Governance efforts. • Elevate, expand and integrate sustainability across every facet of the company. • Create one, unified organization that leverages the strengths and expertise of key functions and organization
Slide 8: Powering One of the Most Productive Crop Protection Pipelines in Agriculture
8 Powering One of the Most Productive Crop Protection Pipelines in Agriculture $1.8 - $2.1 BILLION $2.5 - $3.0 BILLION Revenue Contribution by 2030 Peak Sales From New Active Ingredients From New Active Ingredients >35 New Active Ingredients1 >25 New Active Ingredients 11 New Active Ingredients >20
Slide 9: Investing in Innovation and Disruptive Technologies
9 Investing in Innovation and Disruptive Technologies FMC VENTURES PRECISION AGRICULTURE Broadening Access to New Opportunities and Disruptive Technologies FOCUS BENEFITS ARTIFICIAL • Artificial Intelligence and Machine Learning for discovery • Accelerate discovery INTELLIGENCE FOR and development D
Slide 10: Long-Range Plan Remains on Track for Key Target Deliverables
10 Long-Range Plan1 Remains on Track for Key Target Deliverables 2023 REVENUE 2023 Adjusted EBITDA 2023 FREE CASH FLOW 5% - 7% CAGR 7% - 9% CAGR 70% - 80% ~+300bps FCF Conversion $5.5-6.0B Adj. EBITDA Margin 70% - 80% 5.3% CAGR FCF Conv. 2018R – 2020G Expansion $1.5-1.7B 59% $4.75B 8.5% CAGR $4.6B 2
Slide 11: Technology Portfolio Overview
11 Technology Portfolio Overview PRESENTED BY Dr. Kathleen Shelton Vice President Chief Technology Officer Investor Technology Update
Slide 12: Maintaining Research Productivity During COVID
12 Maintaining Research Productivity During COVID No significant impact on R&D operations All major programs on track Produced and shipped nearly 6,000 field samples Completed more than 10,500 planned field programs All research and development sites are open and operating Investor Technology Update
Slide 13: FMC Research and Development
13 FMC Research and Development Synthetic and Biological PIPELINES Advancing Molecules in DISCOVERY AND DEVELOPMENT Technologies Ready for COMMERCIAL LAUNCH PRECISION AGRICULTURE Broadening Research With INVESTMENTS AND PARTNERSHIPS Investor Technology Update
Slide 14: Innovation Driving Commercial Success in a World-Class R&D Organization
14 Innovation Driving Commercial Success in a World-Class R&D Organization R&D PRIORITIES • Anticipate grower needs >800 SCIENTISTS AND ASSOCIATES o New technologies o Filling gaps to support Integrated Pest Management (IPM) • Focus on synthetic and biological crop protection >20 5 FIELD AND BIOLOGY
Slide 15: Sustainability Assessment Tool Supports FMC's Focus
15 Sustainability Assessment Tool Supports FMC’s Focus on Sustainably Advantaged Technologies FOOD EXPECTATIONS SAMPLE OF ASSESSMENT QUERIES • Will the product maintain/improve an ecosystem? 10 • Will product have a new mode of action that delays resistance ENVIRONMENTAL 5 HEALTH & SAFETY developmen
Slide 16: A Productive Pipeline Advancing Molecules Regularly
16 A Productive Pipeline Advancing Molecules Regularly Synthetic ~2-4 years Synthetic ~7-10 years DISCOVERY PIPELINE Biological ~2-3 years DEVELOPMENT PIPELINE Biological ~3-5 years • Find biological • Optimize activity and solve problems • Define product offering and potential • Major markets, coun
Slide 17: Discovery Pipeline / Synthetics
17 Discovery Pipeline / Synthetics Target Market Discovery Stage Gate New Mode Stage Stage Stage Name Attributes F&V Rice Cereals Corn Soy of Action A B C WEED CONTROL Herbicide A Selective, broad spectrum, pre- to early-post application, resistance grass control Herbicide B Selective, post-emergenc
Slide 18: Discovery Pipeline / Biologicals
18 Discovery Pipeline / Biologicals BIOLOGICALS DISCOVERY PIPELINE ~2-3 years HITS DEVELOPMENT ~25/Year STAGE A STAGE B STAGE C STAGE D PIPELINE LEADS LEADS LEADS LEADS ~3-5 years CANDIDATES 3 Foliar Bioinsecticides 1 Foliar Greenhouse Fermentation ~700/Year Bioinsecticide and Field and Field • Bios
Slide 19: Substantial Progress Advancing Molecules since December 2018
19 Substantial Progress Advancing 9 Molecules since December 2018* Synthetic ~2-4 years Synthetic ~7-10 years DISCOVERY PIPELINE Biological ~2-3 years DEVELOPMENT PIPELINE Biological ~3-5 years STAGE A STAGE B STAGE C PROGRESS TO LAUNCH AND HITS DEVELOPMENT PIPELINE DEFINITION VALIDATION DEVELOPMENT
Slide 20: Development Pipeline / Synthetics and Biologicals
20 Development Pipeline / Synthetics and Biologicals Target Market Regions Current Launch New Mode North Latin Name Market Area F&V Rice Cereals Corn Soy Asia EMEA Development Year1 of Action2 America America Gate3 WEED CONTROL Isoflex™ Active 2021 Selective (grasses) Launch & Realization Herbicide
Slide 21: Isoflex Active—New Mode of Action Herbicide
21 IsoflexTM Active—New Mode of Action Herbicide Expected Launch: 2021 - 2026 Regions: Asia, Latin America, EMEA EFFICACY ON RYEGRASS (Australia) TARGET CROPS IP LANDSCAPE Cereals | Rapeseed | Corn | Sugarcane 4 Patent Families Additional crops under evaluation in regional projects. INNOVATION FEATU
Slide 22: Isoflex Active—New Mode of Action Herbicide
22 IsoflexTM Active—New Mode of Action Herbicide TECHNICAL and PERFORMANCE ATTRIBUTES | Overwatch® Herbicide1 Overwatch® Metric Parameter Competitor Overwatch® Herbicide Summary Herbicide INCREASED CROP BIOMASS (Australia) Efficacy ++++ ++++ Excellent control of key grass weeds and selected broadlea
Slide 23: Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades
23 Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades Expected Launch: 2023 - 2027 Regions: Asia, Latin America, North America, EMEA EFFICACY ON RYEGRASS (Brazil) TARGET CROPS IP LANDSCAPE Other key U.S. Composition 15 patent filings Rice Patent Families of Matter pate
Slide 24: Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades
24 Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades TECHNICAL and PERFORMANCE ATTRIBUTES Japonica Rice Herbicide Tetflupyrolimet Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Transplanted Rice Mechanization Resistance/Cross Resistance +++++ ++++ ++
Slide 25: Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades
25 Tetflupyrolimet (Herbicide 1)—First New Mode of Action DHODH Herbicide in Decades TETFLUPYROLIMET PROVIDES EXCELLENT CONTROL of major weed species that have developed resistance Weeds Class Japan Korea China India ASEAN US LatAm Sample of weed species now Echinochloa species/complex Grass R R R R
Slide 26: Herbicide 2—New Mode of Action PDS Type Herbicide to Address Resistance Management
26 Herbicide 2—New Mode of Action PDS Type Herbicide to Address Resistance Management Expected Launch: 2027 Regions: EMEA EFFICACY ON RYEGRASS IN WHEAT TARGET CROPS IP LANDSCAPE Cereals (Wheat & Barley) 5 Patent Families INNOVATION FEATURES AND BENEFITS Untreated Control Herbicide 2 Mixture • New Mo
Slide 27: Herbicide 2—New Mode of Action PDS Type Herbicide to Address Resistance Management
27 Herbicide 2—New Mode of Action 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
Slide 28: Herbicide 3—New Mode of Action Herbicide for Resistant Broadleaf Weeds
28 Herbicide 3—New Mode of Action Herbicide for Resistant Broadleaf Weeds Expected Launch: 2028 Regions: North America, Latin America, Asia, EMEA EFFICACY ON PALMER AMARANTH TARGET CROPS IP LANDSCAPE Other key Corn | Soybeans U.S. Composition of 8 Matter patent in force patent filings Exploring addi
Slide 29: Herbicide 3—New Mode of Action Herbicide for Resistant Broadleaf Weeds
29 Herbicide 3—New 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 Premixtur
Slide 30: Herbicide 4—Novel Mode of Action Herbicide with Strong Broadleaf Activity
30 Herbicide 4—Novel Mode of Action Herbicide with Strong Broadleaf Activity Expected Launch: 2031 Regions: North America EFFICACY ON AMBROSIA IN CORN AND SOYBEANS (Country) TARGET CROPS IP LANDSCAPE Other key U.S. Composition of Corn | Soybeans | Cereals 8 Matter patent in force patent filings Pate
Slide 31: Herbicide 4—Novel Mode of Action Herbicide with Strong Broadleaf Activity
31 Herbicide 4—Novel Mode of Action Herbicide with Strong Broadleaf Activity TECHNICAL and PERFORMANCE ATTRIBUTES Metric Parameter Herbicide 4 Competitor Herbicide 4 Summary Efficacy +++++ +++ Excellent control of Ambrosia species POST-EMERGENCE DRONE IMAGE | Demonstrating Ambrosia species efficacy
Slide 32: Insecticide 1—Novel Technology Targets Aphids on High-Value Crops and Row Crops
32 Insecticide 1—Novel Technology Targets Aphids on High-Value Crops and Row Crops Expected Launch: 2028 - 2030 Regions: Asia, Latin America, North America, EMEA EFFICACY ON CROPS (Spain) TARGET CROPS IP LANDSCAPE Other key U.S. Composition of F&V | Tree Fruits & Nuts | Cereals 8 Matter patent in fo
Slide 33: Insecticide 1—Beyond Insect Control Attributes
33 Insecticide 1—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 Insecticide 1 applications early in the crop cycle and continued crop mainten
Slide 34: Insecticide 1—Novel Technology Targets Aphids on High-Value Crops and Row Crops
34 Insecticide 1—Novel Technology Targets Aphids on High-Value Crops and Row Crops TECHNICAL and PERFORMANCE ATTRIBUTES EFFICACY ON APPLES (U.S.) Metric Parameter Insecticide 1 Competitor Insecticide 1 Summary Rosy apple aphid control Efficacy +++++ +++ Excellent control of piercing-sucking pest tar
Slide 35: Fluindapyr—Novel SDHI Fungicide
35 Fluindapyr—Novel SDHI Fungicide Expected Launch: 2021 - 2024 Regions: North America, Latin America, Asia, EMEA EFFICACY ON CEREALS (France) TARGET CROPS IP LANDSCAPE Other key Soybeans | Corn | Cotton | Cereals U.S. Composition of 13 Matter patent in force patent filings Patent Families extended
Slide 36: Fluindapyr—Novel SDHI Fungicide
36 Fluindapyr—Novel SDHI Fungicide TECHNICAL and PERFORMANCE ATTRIBUTES Key Targets Crop Segment* Fluindapyr Performance Compared to Notes EFFICACY ON ASIAN SOY RUST (Brazil) Commercial Standards Asian Soy Rust Leaf spots Better than most two-way mixture products ++++ + ++++ + ++++ ++++ + Soybeans +
Slide 37: Biologicals Offer New Modes of Action and Excellent Sustainability Profiles
37 Biologicals Offer New Modes of Action and Excellent Sustainability Profiles Main Regions Segment Diseases/ Key Attributes Pests Asia EMEA Latin America North America Pythium • Mode of Action: Biofungicide effect through root colonization and production of Row Crops, Soil-Borne Rhizoctonia Biofung
Slide 38: Innovating and Investing Beyond the R&D Pipeline—Precision Agriculture and Arc Farm Intelligence
38 Innovating and Investing Beyond the R&D Pipeline — Precision Agriculture and Arc™ Farm Intelligence FMC Precision Agriculture solutions enable growers and their advisors to operate more effectively and sustainably through the power of data and machine learning Proprietary mobile platform is a fir
Slide 39: Arc Farm Intelligence Expansion
39 Arc™ Farm Intelligence Expansion 2020 Local App Launches 2020 2021 EXPANSION U.S. // Brassicas 500+ TBD ACTIVE USERS ACTIVE USERS 2,250 Acres of Brassicas Covered (3% of Total Russia // Corn California Market) 3.5 kha Hectares of Corn 3.8 million ~25 million Covered (0.1% of Total ACRES ACRES Rus
Slide 40: Augmenting R&D with New Investments and Collaborations
40 Augmenting R&D with New Investments and Collaborations FMC VENTURES INVESTMENTS & PARTNERSHIPS Broadening Access to New Opportunities and Disruptive Technologies FOCUS BENEFITS • Artificial Intelligence and Machine ARTIFICIAL INTELLIGENCE Learning for discovery and development • Accelerate discov
Slide 41: Technology Driven Growth
41 Technology Driven Growth • Award-winning pipeline of 35+ new and sustainable molecules that begin to launch in 2021 ‒ Discovery pipeline features diverse set of synthetic and biological molecules with new modes of action ‒ Development pipeline addresses growers’ needs for sustainable products in
Slide 42: Investor Technology Update
42 November 17, 2020 Investor Technology Update Investor Technology Update
Slide 43: Valuing the Pipeline
43 Valuing the Pipeline PRESENTED BY Diane Allemang Vice President Chief Marketing Officer Investor Technology Update
Slide 44: Assessing the Commercial Opportunity
44 Assessing the Commercial Opportunity • A continuous process as a IDENTIFY • Key market needs compound moves through ADDRESSABLE development, and even after • Grower challenges MARKET commercialization • Consider the current market value and the historical trend to VALUE • Secondary market data es
Slide 45: Development Pipeline Expected to Generate ~$2B in Revenue by 2030
45 Development Pipeline Expected to Generate ~$2B in Revenue by 2030, with Total Peak Sales Approaching $3B 2021 2022 2023 2024 2025 2026 2027 2028 2031 IsoflexTM active IsoflexTM active Tetflupyrolimet IsoflexTM active Tetflupyrolimet IsoflexTM active Herbicide 2 Herbicide 3 Herbicide 4 Australia A
Slide 46: Lucento Fungicide is a Key Driver of Revenue Growth
46 Lucento® Fungicide is a Key Driver of Revenue Growth • Launched in the U.S. in 2019 • Dual-mode of action – bixafen plus FMC’s proprietary fungicide flutriafol • Differentiated solution to a wide range of diseases on corn, soybeans and peanuts • Important part of FMC’s U.S. fungicide portfolio •
Slide 47: Isoflex Active—Accomplishing Launch Milestones
47 Isoflex™ Active—Accomplishing Launch Milestones Global brand name Isoflex™ active ingredient FIRST QUARTER 2020 developed. Commercial scale production of technical FIRST QUARTER 2020 material began at Panoli, India, site. Active ingredient registration granted by SECOND QUARTER 2020 Australian re
Slide 48: Isoflex Active—New Mode of Action Herbicide
48 IsoflexTM Active—New Mode of Action Herbicide Expected Launch: 2021 - 2026 Regions: Asia, Latin America, EMEA Expected Launch: 2021 - 2025 Regions: Asia, Latin America, EMEA INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Excellent tool for resistance management • Pro
Slide 49: Isoflex Active—Launch Preparations in Australia
49 IsoflexTM Active—Launch Preparations in Australia 8 Hectare Grower Demo 108 Plots 5 FMC Technology Sites VIRTUAL DEMOS Small Plot Replicated Trials 30 With Retail Partners 1,500 Growers/Agronomists Engaged UP TO 12 WEEKS OF WEED CONTROL Field trial site in Australia. 153 days after application. U
Slide 50: Fluindapyr—Strengthening Our Portfolio With a Novel Fungicide
50 Fluindapyr—Strengthening Our Portfolio With a Novel Fungicide Expected Launch: 2021 - 2024 Regions: North America, Latin America, Asia, EMEA INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Full ownership of fluindapyr and related intellectual property $350M-$400M $350
Slide 51: Fluindapyr—Premix Fungicides to Address Growers' Needs and Combat Disease Resistance
51 Fluindapyr—Premix Fungicides to Address Growers’ Needs and Combat Disease Resistance ARGENTINA LAUNCH ACTIVITIES • ~50 Demo Plots, Field Days and Workshops Conducted • ~50 Field Demonstrations for Agronomists and Growers Planned Untreated Control Fluindapyr Premix • Participation in Aapresid 202
Slide 52: Biological Active Ingredients in Development
52 Biological Active Ingredients in Development FOUR NEW BIOLOGICALS SALES POTENTIAL OF THE BIOLOGICAL PIPELINE AVODIGEN™ 2030 / PEAK SALES POTENTIAL 2021 Novel bionematicide protects against nematodes with biostimulant activity and control of soil diseases Asia, EMEA, North America $150M-$300M Year
Slide 53: Tetflupyrolimet—A New Mode of Action Herbicide
53 Tetflupyrolimet—A New Mode of Action Herbicide Expected Launch: 2023 - 2027 Regions: Asia, Latin America, North America INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • First entirely new mode of action herbicide in 3 decades • Proprietary area of chemistry for FMC $30
Slide 54: Herbicide 2—A New Mode of Action Herbicide for Cereals
54 Herbicide 2—A New Mode of Action Herbicide for Cereals Expected Launch: 2027 Regions: EMEA INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Pre and early post emergence control of broadleaf weeds and some grasses $30M-$50M $30M-$50M Year: 2029 • Complementary biology t
Slide 55: Advancing a Compound Through Development
55 Advancing a Compound Through Development Synthetic ~7-10 years DEVELOPMENT PIPELINE Biological ~3-5 years • Define product offering and potential business case opportunities • Major markets country and crop segments finalized and • Develop strategy for in-scope country/crop segments registration
Slide 56: Herbicide 3—A New Mode of Action Herbicide for Resistant Broadleaf Weeds
56 Herbicide 3—A New Mode of Action Herbicide for Resistant Broadleaf Weeds Expected Launch: 2028 Regions: North America INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Proprietary area of chemistry for FMC • Outstanding pre-emergent residual control of key grass $150M-$
Slide 57: Insecticide 1—Novel Technology Targets Aphids on High-Value Crops and Row Crops
57 Insecticide 1—Novel Technology Targets Aphids on High- Value Crops and Row Crops Expected Launch: 2028 - 2030 Regions: Asia, Latin America, North America, EMEA INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Opportunities in all major agricultural countries in all reg
Slide 58: Herbicide 4—Novel Mode of Action Herbicide
58 Herbicide 4—Novel Mode of Action Herbicide Expected Launch: 2031 Regions: North America INNOVATION FEATURES AND BENEFITS 2030 SALES POTENTIAL PEAK SALES POTENTIAL • Proprietary mode of action • Pre- and post-emergent efficacy on resistant weeds and 2031 Launch $150M-$300M Year: 2035 grasses • Exc
Slide 59: Broadening Our Global Footprint While Diversifying the Portfolio
59 Broadening Our Global Footprint While Diversifying the Portfolio Regions North Latin Name Launch Year* Asia EMEA America America WEED CONTROL Isoflex™ Active 2021 Herbicide 1 (Tetflupyrolimet) 2023 Herbicide 2 2027 Herbicide 3 2028 Herbicide 4 2031 INSECT & NEMATODE CONTROL Insecticide 1 2028 Avo
Slide 60: Innovation Will Be a Key Contributor to FMC's Growth
60 Innovation Will Be a Key Contributor to FMC’s Growth $1.8B to $2.1B revenue contribution by 2030 Revenue Expected from Active Ingredient Pipeline through 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Lucento® Isoflex™ Fluindapyr Tetflupyrolimet Herbicide 2 Herbicide 3 Insecticide 1
Slide 61: Financial Implications and Policies
61 Financial Implications and Policies PRESENTED BY Andrew Sandifer Executive Vice President Chief Financial Officer Investor Technology Update
Slide 62: Innovation Will Be a Key Contributor to FMC's Growth
62 Innovation Will Be a Key Contributor to FMC’s Growth Revenue Expected from Active $1.8B to $2.1B revenue Near-term new active ingredient Ingredient Pipeline through 2030 contribution by 2030 introductions provide a boost to growth through 2023 • IsoflexTM active • Fluindapyr fungicide World-class
Slide 63: Assessing the Attractiveness of Active Ingredient Innovation
63 Assessing the Attractiveness of Active Ingredient Innovation WHAT MAKES AN “ATTRACTIVE” PROJECT Maintain crop and Respond to ‘mega trends’, geographic balance e.g. sustainability, regulation • Meaningful revenue potential • Margin accretive to overall margin • Project IRR > WACC Move at least 1 n
Slide 64: Financial Policies
Financial Policies Investor Technology Update
Slide 65: Balance Sheet Strength and Targets
65 Balance Sheet Strength and Targets What is Solid Investment Grade and Why? SPLIT RATED TODAY Moody’s: Baa2 and P2 rating • BBB/A-2, Baa2/P-2 or better S&P: BBB- and A3 • Commercial paper as part of business model Average 2.5X Gross Debt / Adj. EBITDA CURRENT LEVERAGE OF ~2.5X Expect to <2.5X at 1
Slide 66: Cash Deployment Policy
66 Cash Deployment Policy FUND GROWTH DIVIDENDS SHARE REPURCHASE Fully fund organic Grow dividends at rate Substantial remaining growth and of adj. earnings growth, free cash flow returned opportunistically maintaining 25-35% to shareholders through enhance with modest payout ratio regular share rep
Slide 67: Delivering on FCF Generation and Deployment
67 Delivering on FCF Generation and Deployment Continue to expect to generate Deployment in first 2 years balanced Deployment over remainder of 5-year ~$3B cumulative FCF across share repurchases and dividends plan heavily weighted to share over the 5-year plan horizon with modest inorganic growth i
Slide 68: FCF Generation and Conversion On Long-Range Trend
68 FCF Generation and Conversion On Long-Range Trend 1,000 90% Free Cash Flow Generation Growing Strongly 80% 70% Strong underlying adj. EBITDA growth Free Cash Flow ($M) 4 750 FCF Conversion (%) 5 60% 50% Working capital normalizes 2018 – 2020 500 40% Working capital efficiency improves 2021 – 2023
Slide 69: FMC Remains a Compelling Investment Opportunity
69 FMC Remains a Compelling Investment Opportunity Compelling Expectations Through 2023 5–7% 7–9% ORGANIC REVENUE ~29% Adj. EBITDA Margin GROWTH ADJ. EBITDA GROWTH ~300BPS EXPANSION Adj. EPS GROWING ROIC DEPLOYABLE CASH FASTER THAN ADJ. EBITDA MID-TO-HIGH TEENS UP TO $4.5B Long-Term Factors Supporti
Slide 70: Legal Disclosures
70 Legal Disclosures IsoflexTM, Overwatch®, Bixlozone, Accudo®, Avodigen™, Fluindapyr and Tetflupyrolimet are not registered for sale or use in the United States or other jurisdictions. No offer for sale, sale, or use of any such products is permitted prior to issuance of the required U.S. EPA and s
Slide 71: Investor Technology Update
71 November 17, 2020 Investor Technology Update Investor Technology Update