Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q1 2021 Earnings Presentation
15 slides from Mosaic Company (the)'s earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Earnings Commentary
FIRST QUARTER 2021 EARNINGS COMMENTARY MAY 3, 2021 Management of The Mosaic Company provided the following commentary to accompany its first quarter 2021 earnings news release and performance data: Mosaic delivered excellent results in the first quarter of 2021. The first quarter reflected the compa
Slide 2: Global agriculture market fundamentals are strong
Global agriculture market fundamentals are strong. Corn prices are up 138 percent and soybean prices up 85 percent over the past twelve months, reflecting robust demand and lower stocks. Crop prices continue to point to attractive farmer economics that are expected to drive increased acreage and a f
Slide 3: Fertilizer markets remained strong during the quarter
Fertilizer markets also remained strong during the quarter, a trend that is expected to continue. The phosphate market has benefited from growing global demand and low producer and channel inventories, which continues to be reflected in elevated prices. U.S. phosphate prices are now at parity with p
Slide 4: Distribution sales and margins in China, India and Brazil
On a global basis, including volumes from our Brazilian distribution business, distribution sales totaled almost 9.8 million tonnes in the twelve months ending March 2021, up 18 percent from the prior year period. Mosaic’s China and India distribution businesses, have seen volumes grow to over 2.25
Slide 5: Leadership in environmental, social and governance performance
Mosaic continues to lead the industry in environmental, social and governance performance, and our efforts are being recognized. This year, in addition to being named to Barron’s list of the 100 Most Sustainable Companies, Mosaic was also the 2020 winner of the prestigious Robert W. Campbell Award b
Slide 6: Financial position and liquidity
Mosaic’s financial position continues to strengthen. Our total liquidity was over $3.4 billion at the end of the quarter, including $692 million of cash, $2.2 billion of committed lines of credit, and $500 million of other available lines. We continue to target long-term debt reduction of $1 billion
Slide 7: Mosaic Fertilizantes results
Mosaic Fertilizantes delivered $90 million in operating earnings and $104 million in adjusted EBITDA in the first quarter of 2021. This compares to $29 million and $68 million, respectively, in the same period last year. In the quarter, higher prices were the primary driver behind the increase in gr
Slide 8: Mosaic Fertilizantes costs and Covid safety
environment. Mosaic Fertilizantes’ fixed costs should benefit from the lower currency, though inflation may offset some of the positive impact. While Covid continues to create risks in Brazil, the company remains diligent in its execution of safety protocols to protect its workers against spread. Du
Slide 9: Phosphate Segment results
The Phosphate Segment reported operating earnings of $153 million in the first quarter of 2021 compared to a loss of $107 million last year. The segment generated adjusted EBITDA of $271 million during the quarter, almost a 9-fold increase over a year ago. The segment benefitted from improved prices
Slide 10: Potash Segment results
The Potash Segment generated operating earnings of $125 million in the first quarter of 2021, compared to $94 million in the year ago period. The segment delivered $212 million of adjusted EBITDA and gross margin per tonne of $71, $82 on an adjusted basis, during the quarter. This compares to adjust
Slide 11: Second quarter 2021 price and cost expectations
We expect to continue realizing the benefits of market price improvements, particularly in phosphate. Our typical 60-day lag between market price changes and their appearance in our results implies that we expect to report phosphate prices improving by an additional $80-90 per tonne sequentially in
Slide 12: Cost transformation and earnings power
Mosaic’s cost transformation and investments in the business over the last several years have created significant earnings power. We have shown an ability to meet customer demand and generate shareholder value by driving down production costs under our control, lowering our capital intensity, and im
Slide 13: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (Loss) (in millions) Q1 2021 Q1 2020 Consolidated net earnings (loss) attributable to Mosaic $157 $(203) Less: Consolidated interest expense, net (45) (41) Plus: Consolidated depreciation, depletion and amortization 209 217 Plus: Accretion ex
Slide 14: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q1 2021 Q1 2020 Operating earnings $90 $29 Plus: Depreciation, depletion and amortization 7a 28 Plus: Accretion expense ) e} Plus: Foreign exchange gain (loss) (33) (81) Plus: Other income (expense) (1) (1) Less: Eamings
Slide 15: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q1 2021 Q1 2020 Operating earnings $125 $94 Plus: Depreciation, depletion and amortization 80 70 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) 15 (150) Plus: Other income (expense) - 1 Plus: Notable items (10) 158 Adj