Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q4 2020 Earnings Presentation
18 slides from Mosaic Company (the)'s earnings presentation, Feb 18, 2021
Slide 1: 4Q20 Earnings Commentary
1 4Q20 EARNINGS COMMENTARY Management of The Mosaic Company provided the following commentary to accompany its fourth quarter 2020 earnings news release and performance data. Please see the company’s safe harbor statement at the end of this document. Mosaic’s success at driving transformation benefi
Slide 2: Strong results for 2020
2 Mosaic delivered strong results for 2020. Investments in efficiencies across the company, combined with volume growth in every segment, offset declines in average selling prices for our products year-over-year. For the full year, net earnings totaled $666.1 million, compared to a net loss of $1.1
Slide 3: Transformation benefits and 2020 operational milestones
3 combined impact of these year-end adjustments, including the Covid related expenses embedded in Brazilian turn around costs in the quarter, was essentially zero. In 2020, we delivered transformation benefits that contributed $318 million in adjusted EBITDA growth. As markets continue to strengthen
Slide 4: Global agriculture market fundamentals are strong
4 Global agriculture market fundamentals are strong. In the past year, corn and soybean spot prices have rallied over 40% and over 50% respectively, reflecting strong demand and lower stocks. Crude palm oil is up over 50% in the past 6 months, and the November soybean and December corn futures contr
Slide 5: Fertilizer markets improved significantly in second half of 2020
5 Fertilizer markets improved significantly through the second half of 2020 setting the stage for a positive 2021. Strong demand for phosphate has led to a tight markets globally. In North America, reduced supply from Russian and Moroccan producers has contributed to recent significant price increas
Slide 6: Financial position strengthening
6 Mosaic’s financial position is strengthening and the company is committed to further fortifying its balance sheet. Our total available liquidity was approximately $3.4 billion at the end of the quarter, including $574 million of cash and $600 million of uncommitted working capital facilities. Our
Slide 7: Expected benefits of market price improvements
7 Looking ahead, we expect to realize the benefits of recent market price improvements in all our businesses. In Phosphates, our first quarter deliveries are almost all committed, and given the typical 45- to 60-day lag between market price changes and their appearance in our results, we expect real
Slide 8: Price sensitivities and 2021 capital expenditures
8 realized prices, all else equal, equates to a $65 million increase in annual adjusted EBITDA. The fourth quarter average MOP price was $176 per tonne, and while higher than the third quarter MOP price, was $5 per tonne lower than the full year average of $181. Adjusted EBITDA sensitivity to price
Slide 9: Mosaic Fertilizantes results
9 Mosaic Fertilizantes delivered $347 million in operating earnings and $473 million in adjusted EBITDA(1) in 2020—the best results since Mosaic acquired Vale Fertilizantes. Growing sales volumes and continued cost improvements, as well as favorable foreign currency exchange rates, led to the strong
Slide 10: Phosphate segment results
10 The Phosphate Segment reported an operating loss of $147 million in 2020, due to non-cash asset retirement obligation adjustments. The segment generated adjusted EBITDA(1) of $536 million, a 50 percent increase over a year ago, reflecting raw material price declines and $66 million in transformat
Slide 11: Potash segment results
11 curtailment of our Faustina, Louisiana, facility, the companies highest cost plant. Cash costs of mining in the 2020 quarter were impacted by geology and matrix challenges leading to lower volumes. The Potash Segment generated operating earnings of $402 million in 2020, compared to $46 million in
Slide 12: Potash costs, summary and safe harbor
12 In the fourth quarter, MOP cash costs of production and brine management costs were down year over year. Transformation savings did not contribute significantly to fourth quarter adjusted EBITDA growth compared to 2019, as Colonsay was idled in both periods; contract spending in 2020 was heavily
Slide 13: Safe harbor statement (continued)
13 changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharg
Slide 14: Non-GAAP financial measures
14 calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax. Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate
Slide 15: Tracking to 2023 Targets Reconciliations
15 TRACKING TO 2023 TARGETS RECONCILIATIONS (1) See Non-GAAP Financial Measures for additional information
Slide 16: See Non-GAAP Financial Measures for additional information
16 (1) See Non-GAAP Financial Measures for additional information
Slide 17: See Non-GAAP Financial Measures for additional information
17 (1) See Non-GAAP Financial Measures for additional information
Slide 18: See Non-GAAP Financial Measures for additional information
18 (1) See Non-GAAP Financial Measures for additional information