FMC (FMC) investor relations material

Strategic direction and options

• Focused on a 2026 strategic plan with four pillars: debt reduction, manufacturing restructuring, asset strategy, and financing.

• Actively exploring strategic alternatives, including sale, merger, or partnerships, with a decision expected by July or the Q2 earnings call.

• Over 20 companies engaged in discussions, with options ranging from equity injection to full sale or merger.

• Industry consolidation is anticipated due to high R&D costs and the need for scale in technology and manufacturing.

• Board and management are fully involved in the ongoing review process.

Financial initiatives and deleveraging

• Targeting $1 billion in debt reduction this year, with $700 million already in negotiation.

• Sale of the Indian business expected to generate $255 million, with total cash collections from the deal reaching $425 million.

• Additional deleveraging through a licensing agreement, real estate sale-leasebacks, and divestiture of non-strategic assets.

• Recent amendments to the revolving credit agreement, now backed by $6 billion in collateral, support a $2 billion facility.

• Plans to issue a secured high-yield bond in Q2 to address upcoming maturities and reduce short-term borrowings.

Operational and market trends

• Manufacturing restructuring and outsourcing of non-core products are on track, with completion expected by Q1 2027.

• Core portfolio growth depends on achieving cost competitiveness and leveraging formulation technology by mid-2027.

• Market stabilization observed, especially in Brazil, with direct sales orders for H2 rising from 36% to 50% in two weeks.

• Pricing in Latin America remains stable, with selective increases possible depending on geopolitical developments.

• Generic competition, especially post-exclusivity for key molecules, is leveling off, leading to more predictable market conditions.