FMC Corporation 2013 Annual Report FMC Corporation FMC Corporation 1735 Market Street Philadelphia, PA 19103 USA www.FMC.com ALIGNING FOR Portions of this publication are printed on recycled paper using soy-based inks. Copyright © 2014, FMC Corporation. All rights reserved. BOARD OF DIRECTORS EXECUTIVE COMMITTEE OFFICERS Pierre R. Brondeau Pierre R. Brondeau Thomas C. Deas, Jr. President, Chief Executive Officer President, Chief Executive Officer Vice President and Treasurer and Chairman of the Board and Chairman of the Board LETTER TO SHAREHOLDERS FMC Corporation Marc L. Hullebroeck Paul Graves Vice President and Business Director Eduardo E. Cordeiro Executive Vice President FMC Agricultural Solutions, Executive Vice President and Chief Financial Officer North America and EMEA and Chief Financial Officer Throughout our more than 130-year history, FMC’s expected to deliver meaningful benefits to the separated Cabot Corporation Mark A. Douglas David A. Kotch President Vice President, Chief Information Officer success has been defined not only by its customer businesses, shareholders, customers, employees and G. Peter D’Aloia FMC Agricultural Solutions relationships, innovative products and financial other stakeholders, and the communities in which Managing Director Eric W. Norris and Member of the Board of Directors Edward T. Flynn Vice President, Global Business Director discipline, but also by a steadfast focus on future they operate. Ascend Performance Materials President Lithium opportunities. Last year was no exception. Holdings, Inc. FMC Minerals Nicholas L. Pfeiffer “FMC Minerals” will be a leading, structurally C. Scott Greer Mike Smith Corporate Controller Early in 2013, after another year of record sales advantaged minerals company and the largest global Principal Vice President, Global Business Director and earnings, we realigned reporting segments to producer of natural soda ash. The Alkali Chemicals Greer and Associates FMC Health and Nutrition Tom Schneberger Vice President, Global Business Director strengthen our core businesses, improve operational business will continue to use unique, low-cost K’Lynne Johnson Andrea E. Utecht Alkali Chemicals efficiencies and manage our portfolio consistent with technologies to extract trona ore to produce soda Chief Executive Officer and President Executive Vice President Elevance Renewable Sciences General Counsel and Secretary Charles J. Thomas Vision 2015 goals. As you will read in this report, we ash and related products used in the glass, chemical Vice President, Finance expanded and invested in FMC’s two leading growth processing and detergent industries. The Lithium Dirk A. Kempthorne Barry J. Crawford President and Chief Executive Officer Vice President, Operations Ulrich Trogele business segments that serve agriculture and health American Council of Life Insurers President, FMC Asia and nutrition markets. We placed two structurally Kenneth A. Gedaka Vice President Edward J. Mooney Vice President FMC Agricultural Solutions, Asia advantaged minerals businesses under common AS A RESULT OF OUR Retired Chairman Communications and Public Affairs management, and announced the divestiture of CONSIDERABLE PROGRESS and Chief Executive Officer Victoria V. Walton FMC Peroxygens. Nalco Chemical Company Kimberly Johnson Vice President, Tax DURING THE LAST FOUR YEARS Vice President TO ACHIEVE VISION 2015, WE Paul J. Norris Human Resources Shawn Whitman As a result of our considerable progress during the Retired Chairman Vice President, Government Affairs CONCLUDED THAT THE BEST and Chief Executive Officer Andrew D. Sandifer last four years to achieve Vision 2015, we concluded W. R. Grace & Co. Vice President Antonio Zem that the best means to realize FMC’s full potential is to MEANS TO REALIZE FMC’S Strategic Development President, FMC Latin America Robert C. Pallash Vice President create two independent, publicly traded companies. FULL POTENTIAL IS TO CREATE Retired President, Global Customer Karen M. Totland FMC Agricultural Solutions, The Board of Directors determined in March 2014 to TWO INDEPENDENT, PUBLICLY Group and Senior Vice President Vice President, Global Procurement, Latin America Visteon Corporation Global Facilities & Corporate pursue the creation of “FMC Minerals,” which will be TRADED COMPANIES. Sustainability comprised of FMC Corporation’s Alkali Chemicals and William H. Powell Lithium businesses; and “New FMC*,” which will include Retired Chairman and Chief Executive Officer the Agricultural Solutions and Health and Nutrition business is the only brine-to-metals producer with a National Starch and Chemical Company segments. The company expects that the separation broad global product portfolio, selling into the energy Vincent R. Volpe, Jr. will take the form of a tax-free distribution of shares storage, pharmaceuticals, polymers and industrial Chief Executive Officer and President to existing FMC shareholders and be completed in markets. Underlying market demand for lithium remains Dresser-Rand Group, Inc. early 2015, subject to final board approval and other strong, driven by growth in energy storage from electric customary conditions. vehicle adoption and other applications. STOCKHOLDER DATA Stock Exchange Listing: New York Stock Exchange Chicago Stock Exchange FMC Corporation’s Annual Meeting of Stockholders will be We believe that creating two companies, each with its “New FMC” will continue to develop health, nutrition held on Tuesday, April 29, 2014, at 2:00 p.m. ET at the Top Stock Exchange Symbol: FMC own publicly listed equity, will enable the management and crop protection products that help safeguard and of the Tower, 1717 Arch Street, 50th Floor, Philadelphia, Pa., 19103. Notice of the meeting, together with proxy materials, FMC Corporation is an active participant in the American of each company to pursue its own strategies. This improve human health, and enable growers to produce will be mailed approximately five weeks prior to the meeting, Chemistry Council (ACC) and we support the principles of will give each company greater focus on the success more food. As in the past, customers will be able to to stockholders of record as of Tuesday, March 4, 2014. the ACC’s Responsible Care® Program by working with factors that are most important to its business and rely on “New FMC’s” Health and Nutrition business for our employees, suppliers, customers, contractors and Transfer Agent and Registrar of Stock: commercial partners to promote responsible management of allow the adoption of a capital structure that is its technical excellence and innovative solutions. This Wells Fargo Bank N.A. our products and processes through their entire life cycle, and appropriate to its business profile. Each company is business provides texture, stability and natural color Shareholder Services for their intended use, worldwide. FMC has received third- 1110 Centre Pointe Curve party certification of our conformance with the Responsible Mendota Heights, MN 55120 Care Management System requirements at our headquarters offices and all of our sites located in the United States. For Phone: 1.800.468.9716 additional information on our Responsible Care Program, (1.651.450.4064 local and outside the United States) please go to www.FMC.com. * The official name for New FMC will be determined in the coming months. www.wellsfargo.com/shareownerservices FMC, SeaGel, and Epax are trademarks of FMC Corporation or its subsidiaries. Clube da Fibra and Clube da Cana are FMC was incorporated in Delaware in 1928. service marks of FMC Corporation or its subsidiaries. F M C C O R P O R A T I O N OUR LEADERSHIP TEAM FMC’s executive leadership includes (left to right): Kym Johnson, vice president, human resources; Mike Smith, vice president and global business director, FMC Health and Nutrition; Paul Graves, executive vice president and chief financial officer;Edward T. Flynn, president, FMC Minerals; Andrea E. Utecht, executive vice president, general counsel and secretary; Pierre Brondeau, president, chief executive officer and chairman of the board;Mark A. Douglas, president, FMC Agricultural Solutions; Andrew D. Sandifer, vice president, strategic development; Karen M. Totland, vice president, global procurement, global facilities & corporate sustainability; Kenneth A. Gedaka, vice president, communications and public affairs; and Barry Crawford, vice president, operations. solutions that go into healthy, convenient foods, as well Another High-Performance Year as naturally derived binders, encapsulations and high We concluded 2013 with noteworthy results: purity, high concentration omega-3 for pharmaceutical and nutraceutical uses. Growers will continue to rely on • Sales of $3.9 billion were up 14 percent, while the Agricultural Solutions business for innovative crop adjusted earnings rose 12 percent. protection products developed from science-based • Adjusted earnings per share grew 15 percent to innovation, field development and applications expertise $3.88 per diluted share, and return on invested that, on a crop-by-crop, region-by-region basis, capital was 19 percent – well above our mid- enhance quality and yield. teens target. • We returned $360 million to shareholders in the This is an exciting time for FMC Corporation. We look form of share repurchases and another $74 million forward to keeping our investors and other important in dividends. Our total cash returned to investors stakeholders apprised of our transition. since 2010 is now over $1 billion, a Vision 2015 goal achieved