On this page of StockholderLetter.com we present the 3/10/2023 shareholder letter from FMC CORP — ticker symbol FMC. Reading current and past FMC letters to shareholders can bring important insights into the investment thesis.
FMC Corporation 2022 ANNUAL REPORT
Message to Shareholders FMC delivered record business performance in 2022. Annual revenue of $5.8 billion increased 15 percent compared to the previous year. Adjusted EBITDA* of $1.407 billion was up 7 percent and Adjusted Earnings Per Share* of $7.41 increased 8 percent. In December, we raised FMC s dividend, the fifth consecutive annual increase. Since establishing FMC s current dividend policy in December 2018, we have increased dividends at a compound annual growth rate of 10 percent. Resilience and Agility FMC s record 2022 performance is a testament to the resilience, resolve and agility of our organization. Throughout the year, FMC and the industry continued to face unprecedented challenges, including lockdowns in China related to COVID, Russia s invasion of Ukraine, increasing energy costs and rising inflation. FMC s Manufacturing, Procurement, Supply Chain and Logistics teams once again demonstrated why they are among the best in the business. These cross-functional groups work together to ensure FMC is prepared for world or regional events that could affect our business. As complexities and challenges evolve, our teams respond with solutions that mitigate potential impacts on our ability to safely and efficiently manufacture, transport and sell our leading crop protection products. When necessary, we take difficult but appropriate decisions to address complex events. FMC was the first major crop protection company to exit the Russian market following the outbreak of war in February 2022. With more than 80 employees in Russia prior to the war, as well as a formulation plant and a robust business presence, the impact of our departure from the Russian market was meaningful. But it was the right decision considering overwhelming reports of potential war crimes, human rights abuses and other atrocities. Safety, Sustainability and Diversity Safety is embedded in every aspect of our company not just in manufacturing, but across the organization, including in offices, research sites, field stations and among our commercial teams. It is a core value and mindset embraced by every employee. Not a single meeting begins at FMC without a safety share where employees remind their colleagues about staying focused on safe behaviors. In 2022, FMC achieved an annual injury rate of 0.0795, slightly higher than the previous year s record low. This injury rate maintains FMC s position in the top decile of American Chemistry Council (ACC) companies for safety, and we re proud to have been named ACC Company of the Year for the fourth time since 2017. FMC continued to make substantial progress in our sustainability and net zero journey. As previously announced, we were one of the first crop protection companies to commit to a net zero goal, and among very few companies to pursue an aggressive net zero timeline of less than 15 years. In 2022 we reduced our Scope 1 and Scope 2 greenhouse gas emissions at FMC operating sites, while at the same time growing our overall production. Furthermore, our consistent progress on various ESG metrics was recognized by several raters that moved FMC up in their rankings in 2022. Today FMC is at or above the industry average ranking across many leading ESG raters. We made great strides in our Diversity, Equity and Inclusion (DEI) programs and strategy. Employee engagement is an important aspect of our success in DEI. Regional Inclusion Councils, which include workstreams that represent our Employee Resource Groups, such as The Bridge (multicultural), i-Gen (intergenerational), Women s Initiative Network, SPECTRUM (LGBTQ+), and others, drive awareness, dialog and overall employee experiences across our company. We continued to make improvements in both of our workforce diversity goals for representation of women globally and Black/ African Americans in our U.S. workforce. In both, we increased the overall representation, closing 2022 at 31.7 percent women globally and 10.1 percent Black/African Americans in our U.S. workforce. Innovation and Growth Investments We operate one of the most productive research organizations in the industry. Farmers rely on FMC s fungicides, herbicides and insecticides including our growing portfolio of biological products to protect their crops from diseases, weeds and insects that can negatively impact crop quality and yield. Our R&D pipeline features 23 new active ingredients in discovery and 11 new active ingredients in development. More than 18 of these molecules feature new modes of action, which is critical to address a pest s resistance to older technologies. New products launched in 2022 from our pipeline contributed approximately $100 million in revenue, while new products launched in the last five years contributed revenue of more than $600 million. In FMC Plant Health, we launched 17 new biological products around the world, as well as 2 new micronutrient products. In addition to innovation from our R&D labs, FMC expanded its biologicals portfolio with the acquisition of BioPhero ApS. This Danish-based company is a pioneer in biologically produced pheromone technology featuring a patented fermentation platform, enabling significantly lower cost production of pheromones compared to current industry practices. We also continue to assess technology outside of FMC that can support or augment our current capabilities. FMC Ventures expanded its portfolio in 2022 with strategic investments in start-ups and early-stage companies working on new or disruptive technologies. These engagements span several important technology segments, including robotics, drone technology, AgFinTech, pathogen detection, soil health, peptides and pheromones. For example, FMC increased its investment in Micropep, a start-up developing short natural peptide molecules that target and regulate plant genes and proteins. In addition, we entered a strategic collaboration with Micropep late last year to develop solutions to control herbicide-resistant weeds. In Precision Agriculture, we are growing our Arc farm intelligence platform, FMC s proprietary mobile solution that helps farmers identify and manage pest pressure through predictive modeling. Arc farm intelligence is currently deployed across 20 million acres spanning over 20 countries. The platform delivers field-level insights that drive farmer engagement, improve return on investment and support the sustainable use of FMC products. Furthermore, we have found that farmers who use Arc farm intelligence tend to buy a broader range of products from FMC. Our 6,600 employees are committed to supporting farmers around the world with sustainable technologies that protect their crops and help feed the world s growing population. We are passionate about our purpose and focused on continuing to deliver market-leading performance. Mark Douglas President and Chief Executive Officer FMC Corporation *Denotes a non-GAAP term. The adjusted EBITDA non-GAAP reconciliation is included within the Form 10-K on page 22. Adjusted EPS is not included in the Form 10-K. See inside back cover for chart that reconciles it to the closest GAAP term.
 • shareholder letter icon 3/10/2023 Letter Continued (Full PDF)
 • stockholder letter icon 3/15/2024 FMC Stockholder Letter
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 • stockholder letter icon 3/13/2026 FMC Stockholder Letter
 • stockholder letter icon More "Agricultural Chemicals" Category Stockholder Letters
 • Benford's Law Stocks icon FMC Benford's Law Stock Score = 97


FMC 3/10/2023 Shareholder/Stockholder Letter Transcript:

FMC Corporation
2022
ANNUAL REPORT

Message to Shareholders
FMC delivered record business performance in 2022. Annual revenue of
$5.8 billion increased 15 percent compared to the previous year. Adjusted
EBITDA* of $1.407 billion was up 7 percent and Adjusted Earnings
Per Share* of $7.41 increased 8 percent. In December, we raised FMC   s
dividend, the fifth consecutive annual increase. Since establishing FMC   s
current dividend policy in December 2018, we have increased dividends
at a compound annual growth rate of 10 percent.
Resilience and Agility
FMC   s record 2022 performance is a testament to the resilience, resolve and
agility of our organization. Throughout the year, FMC and the industry
continued to face unprecedented challenges, including lockdowns in China
related to COVID, Russia   s invasion of Ukraine, increasing energy costs
and rising inflation.
FMC   s Manufacturing, Procurement, Supply Chain and Logistics teams
once again demonstrated why they are among the best in the business.
These cross-functional groups work together to ensure FMC is prepared for
world or regional events that could affect our business. As complexities and
challenges evolve, our teams respond with solutions that mitigate potential
impacts on our ability to safely and efficiently manufacture, transport and
sell our leading crop protection products.
When necessary, we take difficult but appropriate decisions to address
complex events. FMC was the first major crop protection company to exit
the Russian market following the outbreak of war in February 2022. With
more than 80 employees in Russia prior to the war, as well as a formulation
plant and a robust business presence, the impact of our departure from the
Russian market was meaningful. But it was the right decision considering
overwhelming reports of potential war crimes, human rights abuses and
other atrocities.
Safety, Sustainability and Diversity
Safety is embedded in every aspect of our company   not just in
manufacturing, but across the organization, including in offices, research
sites, field stations and among our commercial teams. It is a core value
and mindset embraced by every employee. Not a single meeting begins at
FMC without a    safety share    where employees remind their colleagues
about staying focused on safe behaviors. In 2022, FMC achieved an annual
injury rate of 0.0795, slightly higher than the previous year   s record low.
This injury rate maintains FMC   s position in the top decile of American
Chemistry Council (ACC) companies for safety, and we   re proud to have
been named ACC Company of the Year for the fourth time since 2017.
FMC continued to make substantial progress in our sustainability and
net zero journey. As previously announced, we were one of the first crop
protection companies to commit to a net zero goal, and among very few
companies to pursue an aggressive net zero timeline of less than 15 years.
In 2022 we reduced our Scope 1 and Scope 2 greenhouse gas emissions at
FMC operating sites, while at the same time growing our overall production.
Furthermore, our consistent progress on various ESG metrics was recognized
by several raters that moved FMC up in their rankings in 2022. Today FMC
is at or above the industry average ranking across many leading ESG raters.
We made great strides in our Diversity, Equity and Inclusion (DEI) programs
and strategy. Employee engagement is an important aspect of our success in
DEI. Regional Inclusion Councils, which include workstreams that represent
our Employee Resource Groups, such as The Bridge (multicultural), i-Gen
(intergenerational), Women   s Initiative Network, SPECTRUM (LGBTQ+),
and others, drive awareness, dialog and overall employee experiences
across our company. We continued to make improvements in both of our
workforce diversity goals for representation of women globally and Black/
African Americans in our U.S. workforce. In both, we increased the overall
representation, closing 2022 at 31.7 percent women globally and 10.1
percent Black/African Americans in our U.S. workforce.
Innovation and Growth Investments
We operate one of the most productive research organizations in the industry.
Farmers rely on FMC   s fungicides, herbicides and insecticides   including
our growing portfolio of biological products   to protect their crops from
diseases, weeds and insects that can negatively impact crop quality and yield.
Our R&D pipeline features 23 new active ingredients in discovery and 11
new active ingredients in development. More than 18 of these molecules
feature new modes of action, which is critical to address a pest   s resistance
to older technologies. New products launched in 2022 from our pipeline
contributed approximately $100 million in revenue, while new products
launched in the last five years contributed revenue of more than $600
million. In FMC Plant Health, we launched 17 new biological products
around the world, as well as 2 new micronutrient products.
In addition to innovation from our R&D labs, FMC expanded its biologicals
portfolio with the acquisition of BioPhero ApS. This Danish-based company
is a pioneer in biologically produced pheromone technology featuring a
patented fermentation platform, enabling significantly lower cost production
of pheromones compared to current industry practices.
We also continue to assess technology outside of FMC that can support
or augment our current capabilities. FMC Ventures expanded its portfolio
in 2022 with strategic investments in start-ups and early-stage companies
working on new or disruptive technologies. These engagements span several
important technology segments, including robotics, drone technology, AgFinTech, pathogen detection, soil health, peptides and pheromones. For
example, FMC increased its investment in Micropep, a start-up developing
short natural peptide molecules that target and regulate plant genes and
proteins. In addition, we entered a strategic collaboration with Micropep
late last year to develop solutions to control herbicide-resistant weeds.
In Precision Agriculture, we are growing our Arc    farm intelligence
platform, FMC   s proprietary mobile solution that helps farmers identify and
manage pest pressure through predictive modeling. Arc    farm intelligence
is currently deployed across 20 million acres spanning over 20 countries.
The platform delivers field-level insights that drive farmer engagement,
improve return on investment and support the sustainable use of FMC
products. Furthermore, we have found that farmers who use Arc    farm
intelligence tend to buy a broader range of products from FMC.
Our 6,600 employees are committed to supporting farmers around the
world with sustainable technologies that protect their crops and help feed
the world   s growing population. We are passionate about our purpose and
focused on continuing to deliver market-leading performance.
Mark Douglas
President and Chief Executive Officer
FMC Corporation
*Denotes a non-GAAP term. The adjusted EBITDA non-GAAP reconciliation is included within the Form 10-K on page 22. Adjusted EPS is not included in the
Form 10-K. See inside back cover for chart that reconciles it to the closest GAAP term.


shareholder letter icon 3/10/2023 Letter Continued (Full PDF)
 

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