Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — BMO Capital Markets Presentation May 2018
14 slides from Mosaic Company (the)'s conference presentation, Jun 4, 2018
Slide 1: The Mosaic Company
The Mosaic Company Joc O’Rourke, President and Chief Executive Officer May 17, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the anticipated benefits and synergies of our acquisition of the global phosp
Slide 3: Mosaic's Mission
Mosaic’s Mission We help the world grow the food it needs.
Slide 4: Improving Market Conditions
Improving Market Conditions Stripping Margin Phosphate and Potash Prices MOP $ Tonne $ Tonne 300 325 Source: Argus 300 275 275 250 250 225 225 200 200 175 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 DAP Stripping Margin MOP cfr Brazil 4
Slide 5: Global Operational and Logistics Flexibility
Global Operational and Logistics Flexibility
Slide 6: Moving Toward the Low End of the Cost Curve
Moving Toward the Low End of the Cost Curve $/Tonne Mined Rock Costs $/Tonne Conversion Costs $50 $80 $70 $40 $60 $30 $50 $20 $40 2014 2015 2016 2017 Q1 2018 2014 2015 2016 2017 Q1 2018 Cash Production Costs Cash Conversion Costs * Phosphate cash conversion costs are reflective of actual costs, excl
Slide 7: Moving Toward the Low End of the Cost Curve
Moving Toward the Low End of the Cost Curve $ Per Tonne $140 Despite Logistics Related Costs $120 $100 $80 $60 $40 $20 $- 2013 2014 2015 2016 2017 Q1 2018 MOP Cash Production Costs Per Tonne* Brine *MOP cash production costs are reflective of actual costs during the quarter, excluding CRT and realiz
Slide 8: Visible Cost Controls
Visible Cost Controls $ Per Tonne Selling, General & Administrative Expenses 20 18 16 14 12 10 8 2013 2014 2015 2016 2017 2018F *Does not include the intra-segment volume eliminations, which are negative impacting SG&A/Tonne metric starting in 2018 as a result of the Vale Fertilizantes acquisition 8
Slide 9: Mosaic Fertilizantes Transformation on Track
Mosaic Fertilizantes Transformation on Track Mosaic Fertilizantes Transformation Actions taken in Q1’18 $300 expected to generate $100M of value $250 $200 $150 $100 H2 $50 H1 $- H1 2018E 2019E 2020E
Slide 10: Commodity Company with Differentiated Products
Commodity Company with Differentiated Products In millions Sales Volumes – Premium Products 3.7 3.5 3.3 3.1 2.9 2.7 2.5 2.3 2013 2014 2015 2016 2017 2018F 10
Slide 11: Our Commitments
Our Commitments Highest ethics and principles Quality products Respected business partner Good employer and neighbor Responsible operations
Slide 12: Tremendous Upside Leverage
Tremendous Upside Leverage ($ in billons) Low High $ 1.70B $ 1.90B Adjusted EBITDA guidance dated 05/08/18 $ 0.00 Income taxes paid $ 0.20 Interest expense paid 2018 Guidance $ 0.00 Other working capital changes $ 0.20B Total adjustments to estimate cash flow from operating activities $ 1.50B $ 1.70
Slide 13: 2018 Priorities
2018 Priorities Deliver Mosaic Fertilizantes value creation targets Continue to transform Potash and Phosphates Engage and harness power of 15,000 employees Maintain strong balance sheet Create shareholder value
Slide 14: Questions?
Questions?