FMC Corporation · NYSE:FMC
FMC — Q3 2019 Earnings Presentation
14 slides from FMC's earnings presentation, Oct 30, 2019
Slide 1: Q3 2019 Earnings Presentation
Q3 2019 Earnings Presentation October 30, 2019
Slide 2: Safe Harbor Statement; Non-GAAP Financial Terms
Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements made in this presentation that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporation's 2018 Form 10-K an
Slide 3: FMC Reported Financial Results
FMC Reported Financial Results Q3 2019 Q3 2018^ '19 vs. '18 Q3 Highlights Revenue $1,014 $924 10% • 12% organic revenue growth, excluding a 2% FX headwind Adj. EBITDA (1) $219 $187 18% • Company EBITDA margins of % Revenue 21.6% 20.2% ~22%, an increase of 140 bps YOY Adjusted EPS (1) $0.94 $0.71 32%
Slide 4: Q3 2019 Revenue Increased 10%
Q3 2019 Revenue Increased 10% Regional Revenue Bridge Latin America Asia ▪ Q3 ‘19 Revenue: $460 mil. ▪ Q3 ‘19 Revenue: $219 mil. (+21% YOY, +22% ex-FX) (+5% YOY, +9% ex-FX) $10 $5 $1,014 $81 ▪ Double-digit growth in Brazil, ($6) ▪ Double-digit organic growth Argentina and Mexico in India, China and
Slide 5: Q3 2019 Adj. EBITDA Bridge
Q3 2019 Adj. EBITDA Bridge $37 $37 Q3 EBITDA Drivers $219 $0 $187 ($42) EBITDA $19 million above midpoint of guidance Strong volume contribution Price increases across all geographies, led by LatAm and Asia Price increases nearly offset the entire impact from Cost + FX of Recast Volume Price / Cost
Slide 6: FY 2019 and Q4 Earnings Outlook
FY 2019 and Q4 Earnings Outlook FY 2019 (2) Q4 2019 (2) Revenue: $4.58 - $4.62 billion Revenue: $1.17 - $1.21 billion Revenue Adj. EBITDA: $1.2 - $1.22 billion Adj. EBITDA: $300 - $320 million & Adjusted EBITDA (1) Revenue growth of +7% YOY at Revenue growth of +8% YOY at midpoint (+11% organic) mid
Slide 7: Projected FY 2019 Adj. EBITDA and Revenue Drivers (YOY)
Projected FY 2019 Adj. EBITDA and Revenue Drivers (YOY) FY 2019 Adj. EBITDA Bridge FY 2019 Adj. EBITDA Drivers $156 Volume increases +17% $183 $1,210 Volume growth $30 million higher $1,109 ($185) ($53) than prior guidance Price coverage of ~66% Cost + FX headwinds FY 2019 Revenue Drivers Recast Vol
Slide 8: Projected Q4 2019 Adj. EBITDA and Revenue Drivers (YOY)
Projected Q4 2019 Adj. EBITDA and Revenue Drivers (YOY) Q4 2019 Adj. EBITDA Bridge Q4 2019 Adj. EBITDA Drivers Volume increases +21% $19 $56 $5 $310 Volume driven by new products $273 and growth in all regions ($43) Price coverage of ~50% Cost + FX headwinds Q4 2019 Revenue Drivers Recast Volume Pri
Slide 9: Latin America Is the Largest Region for FMC in Revenue and EBITDA
Latin America Is the Largest Region for FMC in Revenue and EBITDA FMC Revenue CPC Market Size & FMC Share LatAm Sub-Regions Andean LA North (FMC 9% share Asia NA LAN 23% 24% of $1.5B CPC) S. Cone Last 12 2019F Months REV EMEA 22% LA Brazil 31% Andean Zone (FMC <5% share Brazil LatAm Crop Exposure of
Slide 10: Latin America Is FMC's Fastest Growing Region Since 2017
Latin America Is FMC’s Fastest Growing Region Since 2017 LatAm Growth Strong Presence Across Region Sustainable Growth $1.4B LA North • Regional formulations $1.2B 60 agronomists drive demand for high- $1.0B 1 field station margin products 2 offices • Proactive pricing and Brazil hedging strategy to
Slide 11: 2019 Cash Flow Outlook
2019 Cash Flow Outlook ($ in millions) Q2 YTD Q3 YTD Implied Q3 '19 2019 Outlook '19 '19 Q4 '19 3 Adjusted Cash from Operations 1 ($174) $301 $127 $750 - $850 $673 Capital Additions and Other Investing Activities ($36) ($42) ($78) ($140) - ($160) ($72) Legacy and Transformation 2 ($107) ($61) ($168)
Slide 12: Appendix – Other Financial Items
Appendix – Other Financial Items (1) Interest Expense $153 – $157 million Adjusted Tax Rate 14 – 15 percent Non-Controlling Interest ~$3 million Full-Year Weighted Avg. Diluted 131.5 – 132.0 million Shares Outstanding (WADSO) (2) Depreciation & Amortization $148 – $152 million Capital Additions and
Slide 13: Appendix – Regional Growth
Appendix – Regional Growth Q3 Sales % Chg % (ex-FX) YTD Sales % Chg % (ex-FX) NA $196 -3% -3% $848 1% 1% LA $460 21% 22% $923 25% 29% EMEA $138 4% 8% $855 3% 10% Asia $219 5% 9% $786 1% 7% Total $1,014 10% 12% $3,413 7% 11% 13
Slide 14: 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