FMC Corporation · NYSE:FMC
FMC — Q2 2021 Earnings Presentation
23 slides from FMC's earnings presentation, Aug 4, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 4, 2021
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 Q2 Highlights vs. Guidance Q2 2020 Q2 2021 '21 vs. '20 Revenue $17 million above mid-point of 1 Revenue $1,155 $1,242 8% guidance, up 4% organically , excluding a 4% FX tailwind Adjusted EBITDA $2 million above the GAAP Net Income $185 $203 10% midpoint of guidance % R
Slide 4: Q2 2021 Revenue Up 8%, Up 4% Organically
Q2 2021 Revenue Up 8%, Up 4% Organically1 Regional Revenue Bridge Asia Latin America ▪ Q2 ‘21 Revenue: $379 million ▪ Q2 ‘21 Revenue: $300 million (+20% YOY, +13% ex-FX) (+15% YOY, +12% ex-FX) ▪ Record quarter in India driven by ▪ Growth in Brazil after planned diamides growth in rice, soybean, chan
Slide 5: Q2 2021 Adjusted EBITDA Increased 2%
Q2 2021 Adjusted EBITDA1 Increased 2% Q2 2021 Adjusted EBITDA Bridge Q2 2021 Adj. EBITDA Drivers Volume gains in Asia, LatAm, and North America offset by delayed season and loss of registrations in EMEA New product introductions and continued growth of our diamides helped drive high quality volume g
Slide 6: FY 2021 and Q3/Q4 Earnings Outlook
FY 2021 and Q3/Q4 Earnings Outlook FY 2021 Q3 2021 Q4 2021 $6.54 - $6.94 $1.23 - $1.39 $1.96 - $2.20 Adjusted EPS +9% YOY at midpoint +7% YOY at midpoint +46% YOY at midpoint Ranges (1,2) WADSO: ~130 million WADSO: ~130 million WADSO: ~130 million Revenue: $4.9 - $5.1 billion Revenue: $1.13 - $1.22
Slide 7: Projected FY 2021 Adj. EBITDA and Revenue Drivers (YOY)
Projected FY 2021 Adj. EBITDA1 and Revenue Drivers (YOY) FY 2021 Adjusted EBITDA Bridge FY 2021 Adj. EBITDA Drivers Strong volume growth led by LatAm, North America and Asia New products launched in last TM12 months ® (Overwatch herbicide, Xyway fungicide, TM ® Vantacor and Elevest insect control) c
Slide 8: Projected Q3/Q4 2021 Adj. EBITDA & Revenue Drivers (YOY)
Projected Q3/Q4 2021 Adj. EBITDA1 & Revenue Drivers (YOY) Q3 2021 Adjusted EBITDA Bridge Q4 2021 Adjusted EBITDA Bridge Note: Amounts in millions of USD Note: Amounts in millions of USD; Factors do not sum due to rounding * Midpoint of guidance * Midpoint of guidance Q3 2021 Revenue Drivers Q4 2021
Slide 9: Q2 Cash Flow Results and 2021 Cash Flow Outlook
Q2 Cash Flow Results and 2021 Cash Flow Outlook ($ in millions) Q2 '20 Q2 '21 Change3 2020 2021 Outlook Change4 Adjusted Cash from Operations 1 $278 $256 ($22) $801 $700 - $860 ($21) Capital Additions and Other Investing Activities ($19) ($27) ($8) ($88) ($150) - ($180) ($77) Legacy and Transformati
Slide 10: Diamide Discussion
Diamide Discussion
Slide 11: Insecticide Market 2007-2030F
Insecticide Market 2007-2030F Total Insecticide Market Value at the Manufacturer Level 2007-2030 $30 $30,000 $24.0 $25 $25,000 $20 $20,000 $17.2 $16.8 Value ($B) $15.6 $15 $15,000 $9.2 $10 $10,000 Total insecticide market value grew by Total insecticide market expected to 83% from 2007-2019 (5% CAGR
Slide 12: Market Shares by Key Active Ingredient Classes
Market Shares by Key Active Ingredient Classes Insecticide Active Ingredient Class by Revenue at the Manufacturer Level 2014-2019 Global Active Ingredient Class Value Diamides* make up 13% 2014 2015 2016 2017 2018 2019 of the market (2019) $4.5 $4,500 Indicates absolute $4.0 $4,000 Diamides* have ga
Slide 13: Diamide Revenue Breakdown
Diamide Revenue Breakdown FMC Diamide Revenue FMC Diamide Revenue FMC Diamide Revenue by Region (2020) by Active Ingredient (2020) by Crop (2019) (Source: Kynetec Sigma CP) Other Cotton 7% Cyazypyr® AI 4% $300M NA Sugar F&V 27% 7% 29% Asia 38% Soybeans $1.8 billion 15% LatAm 16% Rice Rynaxypyr AI ®
Slide 14: Diamide Strategy Delivering Strong Growth from both FMC Branded and Partners
Diamide Strategy Delivering Strong Growth from both FMC Branded and Partners1 Partners Represent ~40% of FMC FMC Diamide Growth Since 2017 Pro Forma2 Diamide Revenue 2017PF-2021F FMC Partners Partners Branded ~$0.7B Partners FMC Branded 2020 FMC Diamide Revenue* ($B) FMC Partners Branded FMC Branded
Slide 15: Diamide Growth Drivers – New Innovations
Diamide Growth Drivers – New Innovations 2021-2026 Innovative Formulations Recently Launched in U.S. We are developing new product offerings for our patented PrecisionPac® and 3RIVE 3D® systems Additional services to be provided to growers and dealers, such Crops: soybeans, corn, cotton, potatoes, O
Slide 16: Diamide Growth Drivers – Registrations / Label Extensions
Diamide Growth Drivers – Registrations / Label Extensions 990 approved uses 1,480 approved uses + 20 under review + 275 under review FMC Diamide Registrations + 1 planned submission + 95 planned submissions 2,665 APPROVED PRODUCT USES1 Rynaxypyr® active EMEA North America Asia 785 approved uses 1,10
Slide 17: Diamide Patent Profile
Diamide Patent Profile Patent Type Summary Composition of Matter Patents (active Protects proprietary molecular structure of active ingredient and molecular structure ingredient [AI] and certain intermediates) of certain intermediates. Protects the manufacturing processes for the active ingredient a
Slide 18: Diamide Patent Timelines – Rynaxypyr Active
Diamide Patent Timelines – Rynaxypyr® Active 2022 2023 2024 2025 2026 2027 HIGHLIGHTS 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 PATENT PROTECTIO
Slide 19: Diamide Patent Timelines – Cyazypyr Active
Diamide Patent Timelines – Cyazypyr® Active 2022 2023 2024 2025 2026 2027 2028 HIGHLIGHTS 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10
Slide 20: Enforcing Our Intellectual Property
Enforcing Our Intellectual Property FMC will aggressively enforce its patent estate on the diamides and all other intellectual property / regulatory rights • Obtained injunctions and/or settlements against six (6) separate infringers in India. This includes a major EUROPE victory won on July 5, 2021
Slide 21: Appendix – Other Financial Items
Appendix – Other Financial Items Interest Expense $130 – $135 million Adjusted Tax Rate (1) 12.5 – 14.5 percent Non-Controlling Interest ~$4 million Full-Year Weighted Avg. Diluted ~130 million Shares Outstanding (WADSO) (2) Depreciation & Amortization $165 – $175 million Free Cash Flow (1) $480 – $
Slide 22: Appendix – Regional Growth (YOY)
Appendix – Regional Growth (YOY) FMC Q2 FMC H1 % Chg % (ex-FX) % Chg % (ex-FX) Sales* Sales NA $291 -7% -8% $592 -8% -8% LatAm $300 15% 12% $503 -3% -1% 2021 EMEA $273 3% -3% $672 -1% -6% Asia $379 20% 13% $671 19% 13% Total $1,242 8% 4% $2,438 1% -1% Note: Amounts in millions of USD * Factors do no
Slide 23: Appendix – 2021 Half-Year Adj. EBITDA & Revenue Drivers (YOY)
Appendix – 2021 Half-Year Adj. EBITDA1 & Revenue Drivers (YOY) H1 ’21 Adjusted EBITDA Bridge H2 ‘21 EBITDA Guidance (+20% YOY) Note: Amounts in millions of USD; Factors do not sum due to rounding Note: Amounts in millions of USD; Factors do not sum due to rounding * Midpoint of guidance H1 2021 Reve