Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q4 2022 Earnings Presentation
19 slides from Mosaic Company (the)'s earnings presentation, Feb 23, 2023
Slide 1: Full Year 2022 Results
The Mosaic Company Full Year 2022 Results February 22, 2023 Date:
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending common dividends, speci
Slide 3: Full Year 2022 Performance
Full Year 2022 Performance CONSOLIDATED OPERATING NET ADJUSTED(1) REVENUES EARNINGS EARNINGS EBITDA $19.1B $4.8B $3.6B $6.2B +55% Y/Y +94% Y/Y +120% Y/Y +73% Y/Y PHOSPHATES POTASH MOSAIC FERTILIZANTES Net Operating Adjusted Net Operating Adjusted Net Operating Adjusted Revenues Earnings EBITDA(1) Re
Slide 4: 2022 Free Cash Flow
2022 Free Cash Flow(1) 98% of Free Cash Flow(1) after obligations was returned to shareholders in 2022 $ in millions Cash Flow from Operations $3,936 Capital Expenditures $(1,247) Adjustments for Working Capital Financing $(95) Free Cash Flow(1) $2,594 Long-term Debt $(550) Leases and Other Obligati
Slide 5: 2023 Capital Allocation
2023 Capital Allocation Our capital allocation strategy remains unchanged. Invest in the Maintain Strong Return Capital to Business Balance Sheet Shareholders High-returning, modest Current balance sheet Continue returning virtually investments reflects investment grade all Free Cash Flow to metrics
Slide 6: Opportunities for Growth
Opportunities for Growth • Expansion of Microessentials capacity at our Riverview plant in Florida to be completed by the end of the year Value-Add • ~50% of North American annual phosphate sales volumes will be Products comprised of value-add products following the expansion • $40 million investmen
Slide 7: Still-Elevated Agriculture Prices
Still-Elevated Agriculture Prices Ag commodities remain elevated from a historical standpoint, despite giving back war premium Indexed Daily Close of Front Month Contract Indexed Daily Close of Front Month Contract 400 400 Corn Soy Wheat Palm Oil Coffee Rice Sugar Cotton 350 350 300 300 2018=100 201
Slide 8: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Slow down in yield growth in recent years has pushed our stocks-to-use ratio metric below 15%, a 25-year low and unlikely to recover in a single season Mil Tonnes Grain and Oilseed Stocks Percent World Less China 475 22% 450 21% 425 20% 400 19% 375 18% 350 17% 325 16%
Slide 9: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Lower benchmark fertilizer prices, coupled with still-elevated ag commodity prices, has made fertilizers more affordable and is expected to spur demand as the year progresses North America Plant Nutrient Affordability Brazil Soybean Barter Ratio Ferts Price Index / Cr
Slide 10: Outlook for 2023
Outlook for 2023 Pricing & Sensitivities FY 2022 Sensitivity Average DAP fob plant ($/tonne)(1) $804 $10 price = $90 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $632 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.16 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 11: Appendix
Appendix
Slide 12: Potash 2022 Performance
Potash 2022 Performance Y/Y Adjusted EBITDA(1) Bridge 2022 2021 Variance + $1,831 Sales Volumes (mt in millions) 8.101 8.186 (0.085) $2,646 $(703) MOP Selling Price (FOB Mine) ($/mt) $ 632 $ 285 $ 347 MOP cash costs of production (excl Brine) ($/mt) $ 78 $ 67 $ 11 $7 $(82) $2 $(39) $3,117 Brine Mana
Slide 13: Phosphate 2022 Performance
Phosphate 2022 Performance Y/Y Adjusted EBITDA(1) Bridge 2022 2021 Variance Sales Volumes (mt in millions) 6.558 7.693 (1.135) + $490 DAP Selling Price (FOB Plant) ($/mt) $ 804 $ 564 $ 240 $1,711 $(204) $(837) Production volume (mt in millions) 6.647 7.331 (0.684) FL Cash Rock Cost of production ($/
Slide 14: Mosaic Fertilizantes 2022 Performance
Mosaic Fertilizantes 2022 Performance Y/Y Adjusted EBITDA(1) Bridge 2022 2021 Variance Sales Volumes (mt in millions) 9.438 10.102 (0.664) $228 Average Finished Product Selling Price ($/mt) $ 878 $ 504 $ 374 $3,236 $(2,902) MAP Price (delivered price to third party) ($/mt) $ 868 $ 597 $ 271 Cash Roc
Slide 15: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) 2022 2021 Consolidated net earnings attributable to Mosaic $3,583 $1,631 Less: Consolidated interest expense, net (139) (169) Plus: Consolidated depreciation, depletion and amortization 933 813 Plus: Accretion expense 81 72 Plus
Slide 16: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) 2022 2021 Operating earnings $2,768 $837 Plus: Depreciation, depletion and amortization 307 268 Plus: Accretion expense 8 10 Plus: Foreign exchange gain (loss) (19) 8 Plus: Other income (expense) - - Plus: Notable items 53 163 Adjuste
Slide 17: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) 2022 2021 Operating earnings $1,347 $1,180 Plus: Depreciation, depletion and amortization 485 429 Plus: Accretion expense 55 48 Plus: Foreign exchange gain (loss) (8) 9 Plus: Other income (expense) (32) 8 Less: Earnings (loss) from
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) 2022 2021 Operating earnings $910 $745 Plus: Depreciation, depletion and amortization 125 101 Plus: Accretion expense 17 14 Plus: Foreign exchange gain (loss) 8 (70) Plus: Other income (expense) (4) (6) Less: Earnings (l
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Free Cash Flow (in millions) 2022 Cash flow from operations $3,936 Capital expenditures (1,247) Adjustments for working capital financing (95) Free cash flow $2,594 19