FMC Corporation FMC Tower at Cira Centre South 2929 Walnut Street Philadelphia, PA 19104 USA www.FMC.com THE POWER TO FMC Corporation 2017 ANNUAL ANNUAL REPORT 2017 80 Portions of this publication are SGP printed on recycled paper. Copyright © 2018, FMC Corporation. All rights reserved. FMC Corporation | 2017 Annual Report FMC_AR2017_Cover_FullWrap.indd 1 3/2/18 4:45 PM BOARD OF DIRECTORS EXECUTIVE COMMITTEE OFFICERS Pierre R. Brondeau Pierre R. Brondeau Bill Chester President, Chief Executive Officer President, Chief Executive Officer Vice President, Global Tax and Chairman of the Board and Chairman of the Board A letter from Pierre R. Brondeau FMC Corporation Marc L. Hullebroeck Paul Graves President, FMC EMEA A MESSAGE TO President, Chief Executive Officer Eduardo E. Cordeiro Executive Vice President Vice President and Business Director and Chairman of the Board Executive Vice President, and Chief Financial Officer FMC Agricultural Solutions, EMEA FMC CORPORATION Chief Financial Officer and President OUR SHAREHOLDERS Americas Region Andrea E. Utecht David A. Kotch Cabot Corporation Executive Vice President Vice President, Chief Information Officer General Counsel and Secretary G. Peter D’Aloia Amy O’Shea FMC’s crop protection transaction with highly successful business, delivering strong earnings and Former Managing Director and Mark A. Douglas Vice President and Business Director President FMC Agricultural Solutions operating margins. The DuPont transaction elevates our Member of the Board of Directors DuPont marked an important milestone in Ascend Performance Materials FMC Agricultural Solutions North America company to a tier-one agchem leader with scale, global our journey. We completed one of the most Holdings, Inc. reach and a broader portfolio of differentiated products. Tom Schneberger Ronaldo Pereira transformative acquisitions in our company’s C. Scott Greer Vice President, Global Business Director President, FMC Latin America history on November 1, 2017, when FMC Principal FMC Lithium Vice President and Business Director The acquisition included: Greer and Associates FMC Agricultural Solutions, Latin America acquired a significant part of the DuPont Brian P. Angeli Vice President Nicholas L. Pfeiffer Crop Protection business and also sold FMC • 12 active ingredients (AIs), including some of the K’Lynne Johnson industry’s most successful AIs: Rynaxypyr® insect control, Former Chief Executive Officer, Corporate Strategy and Development Vice President, Corporate Controller President and Executive Chair and Chief Accounting Officer Health and Nutrition to DuPont. Earlier in ® Cyazypyr insect control, and Indoxacarb insecticides Elevance Renewable Sciences Barry J. Crawford the year, we announced our intention to Vice President Michael F. Reilly • 14 manufacturing sites unlock the full potential of FMC Lithium by Dirk A. Kempthorne Operations Vice President, Associate General • 15 R&D sites around the world, including the Stine President and Chief Executive Officer Counsel and Chief Compliance Officer separating it into a publicly traded company American Council of Life Insurers Kenneth A. Gedaka Research Center in Delaware in 2018. Vice President Andrew D. Sandifer Communications and Public Affairs Vice President and Treasurer • 15 active ingredients currently under development Paul J. Norris Retired Chairman • 1.8 million synthetic compounds and Chief Executive Officer Kyle Matthews Bethwyn Todd FMC AGRICULTURAL SOLUTIONS W. R. Grace & Co. Vice President President, FMC Asia We now have a larger global footprint and a well-balanced Human Resources Vice President and Business Director On March 31, 2017, FMC agreed to acquire a significant regional presence. In fact, we are almost equally balanced Margareth Øvrum FMC Agricultural Solutions, Asia portion of DuPont’s Crop Protection business, which was Executive Vice President of Technology Karen M. Totland across North America, Latin America, Europe/Middle East/ Projects & Drilling Vice President, Global Procurement, Shawn Whitman being divested to comply with European Commission Africa, and Asia Pacific, ensuring business performance that Statoil Group Global Facilities & Corporate Vice President, Government Affairs requirements for DuPont to merge with The Dow Chemical is less susceptible to market swings in any given region. Sustainability Company. When our transaction closed, FMC acquired Robert C. Pallash Retired President, Global Customer the majority of DuPont’s industry-leading insecticides and Our ag team is excited about the opportunities ahead. Group and Senior Vice President herbicides, patented technologies, exceptional discovery FMC Agricultural Solutions is now one of the fastest- Visteon Corporation research capabilities and a global manufacturing network. growing crop protection companies in the world, William H. Powell well-positioned to deliver strong financial performance. Retired Chairman and Chief Executive Officer National Starch and Chemical Company FMC LITHIUM FMC IS NOW ONE OF THE Vincent R. Volpe, Jr. The global lithium industry is growing at an unprecedented Chairman, CEO, President and Principal fastest-growing crop protection rate, driven mostly by the ongoing adoption of hybrid and LeHavre Athletic Club companies in the world. electric vehicles (EVs) powered by lithium ion batteries. The EV market is predicted to triple in the next three years, becoming the largest consumer of lithium materials. STOCKHOLDER DATA FMC Corporation’s Annual Meeting of Stockholders will be held on Tuesday, April Stock Exchange Listing: New York Stock Exchange We made several strategic decisions during the last few 24, 2018, at 2:00 p.m. ET, FMC Tower at Cira Centre South, 2929 Walnut Street, Stock Exchange Symbol: FMC The crop protection industry has undergone changes during years to focus FMC Lithium on downstream, higher-value Philadelphia, PA 19104. Notice of the meeting, together with proxy materials, will be mailed approximately five weeks prior to the meeting to stockholders of record the last few years that have led to a series of mega mergers as of Tuesday, February 27, 2018. FMC Corporation is an active participant in the American Chemistry Council (ACC) products. We convert most of our lithium carbonate and and we support the principles of the ACC’s Responsible Care® Program by working with our employees, suppliers, customers, contractors and commercial partners to and consolidations. When these mergers are completed, chloride production into high-purity materials, including Transfer Agent and Registrar of Stock: Equiniti Trust Company promote responsible management of our products and processes through their entire the agricultural industry will be served by two types of crop lithium hydroxide used in EV batteries, and butyllithium EQ Shareowner Services life cycle, and for their intended use, worldwide. FMC undergoes third-party review and certification of our conformance with the Responsible Care Management System protection companies—technology-focused innovators and lithium metals for specialty applications. 1110 Centre Pointe Curve Mendota Heights, MN 55120 requirements at our headquarters offices and all of our sites located in the United States. and generics. FMC Agricultural Solutions has been a For additional information on our Responsible Care Program, please go to www.FMC.com. Phone: 1.800.468.9716 (1.651.450.4064 local and outside the United States) Responsible Care® is a service mark of American Chemistry Council, Inc. www.equiniti.com FMC, TH!NK. SAFE., Rynaxypyr and Cyazypyr are trademarks of FMC Corporation FMC was incorporated in Delaware in 1928. or an affiliate. FMC_AR2017_Cover_FullWrap.indd 2 3/2/18 4:45 PM FMC Agricultural Solutions is now a FMC Lithium is set to become a tier-one agchem leader with scale, separate, publicly traded company by global reach and a broader portfolio the end of 2018. It has a strong balance of differentiated products, delivering sheet and the financial capacity to be a strong operating margins. leading force in a high-growth industry. 2017 was a year of significant growth for this business. the years. We believe it will thrive within the larger DuPont We expanded capacity in multiple locations, including a Nutrition & Health business, giving it additional resources new lithium hydroxide plant in China that is producing to grow in new and different ways. We wish all our former 9,000 metric tons per year to meet accelerating demand Health and Nutrition colleagues the best of luck. for FMC’s products. We announced additional production investments that will add another 12,000 metric tons GROWING SAFELY AND SUSTAINABLY per year of lithium hydroxide capacity. To feed these downstream products, we announced plans to more than FMC’s goal is zero injuries, and in 2017 we took another double lithium carbonate production at our Argentina site, step closer with an injury rate of 0.18. This represents an 18 from 18,000 metric tons per year to more than 40,000 percent year-over-year reduction, and a nearly 75 percent metric tons per year by 2022, with incremental production reduction compared to our injury rate in 2010. In fact, our starting as early as 2020. In addition, debottlenecking company attained the lowest full-year injury rate since FMC projects at our major facilities are contributing to short- began keeping incident rate records. term capacity increases. Our employees are committed to operating safely and responsibly every day, and their efforts have had a positive impact across the company.