Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q2 2022 Earnings Presentation
20 slides from Mosaic Company (the)'s earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Results
The Mosaic Company Second QUARTER 2022 RESULTS August 1, 2022 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 future transactions or
Slide 3: Second Quarter 2022 Performance
Second Quarter 2022 Performance CONSOLIDATED OPERATING NET ADJUSTED(1) REVENUES EARNINGS EARNINGS EBITDA $5,373M $1,674M $1,036M $2,028M +92% Y/Y +246% Y/Y +137% Y/Y +145% Y/Y PHOSPHATES POTASH MOSAIC FERTILIZANTES Net Operating Adjusted Net Operating Adjusted Net Operating Adjusted Revenues Earning
Slide 4: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Global stocks-to-use ratio illustrates ag’s constructive backdrop – tight supply is likely to persist beyond the current season Mil Tonnes World Less China Grain and Oilseed Stocks Percent 475 22% 450 21% Source: USDA 425 20% 400 19% 375 18% 350 17% 325 16% 300 15% 27
Slide 5: Elevated Agricultural Prices
Elevated Agricultural Prices Ag commodities remain at historically elevated levels Indexed Daily Close of Front Month Contract 300 Corn Soy Wheat 250 2018=100 200 150 100 50 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Source: CME, MDEX, NYMEX; Data through July 29, 2022 5
Slide 6: Nutrient Prices Elevated
Nutrient Prices Elevated Supply constraints place a floor under pricing at levels above recent history Global DAP/MAP Benchmark Prices $/MT Potash Prices $/MT Published Spot Prices Published Spot Prices 1,400 1,400 c&f Brazil c&f SE Asia DAP fob NOLA DAP c&f India 1,200 1,200 fob NOLA delivered Corn
Slide 7: Mounting Unfulfilled Demand in 2022 and 2023
Mounting Unfulfilled Demand in 2022 and 2023 Reduced global supplies of both phosphate and potash will mean some demand goes unfulfilled, which will result in a “catch-up” demand tailwind over the medium term Global Phosphate Shipments Global MOP Shipments DAP/MAP/NPS/TSP 90 90 Unfulfilled Demand Ac
Slide 8: Year-to-Date 2022 Free Cash Flow
Year-to-Date 2022 Free Cash Flow(1) Capital return to shareholders remains a key focus in 2022 $ in millions Cash Flow from Operations $2,091 Capital Expenditures $(554) Adjustments for Working Capital Financing $(277) Free Cash Flow(1) $1,260 YTD 2022 Capital Return $1,094 Capital Return as a % of
Slide 9: 2022 Capital Allocation
2022 Capital Allocation Free Cash Flow(1) Strengthen Balance Return to Invest in the Business Sheet Shareholders Reduce long-term Total capex of $1.3 All remaining free debt by $1 billion billion cash flow (after commitments) • Expect to reach target in • K3 optimization the second half of 2022 • Ne
Slide 10: Outlook for 2022
Outlook for 2022 Pricing & Sensitivities FY 2021 Q2 2022 Sensitivity Average DAP fob plant ($/tonne)(1) $564 $920 $10 price = $94 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $285 $678 $10 price = $53 mm adjusted EBITDA BRL/USD(3) 5.39 4.92 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approx
Slide 11: Appendix
Appendix
Slide 12: Potash Q2 2022 Performance
Potash Q2 2022 Performance Y/Y Adjusted EBITDA(1) Bridge Q2 2022 Q2 2021 Variance $713 Sales Volumes (mt in millions) 2.304 2.326 (0.022) $943 $(220) MOP Selling Price (FOB Mine) ($/mt) $ 678 $ 243 $ 435 MOP cash costs of production (excl Brine) ($/mt) $ 78 $ 62 $ 16 $(37) $(28) $46 $19 $(10) $998 B
Slide 13: Phosphate Q2 2022 Performance
Phosphate Q2 2022 Performance Y/Y Adjusted EBITDA(1) Bridge $350 $714 $(202) $(71) $(38) $(39) $(14) $758 $408 $ in millions Q2 2021 Sales Raw Sales Conversion Idle/TA Other Q2 2022 Adjusted price materials volume Adjusted EBITDA EBITDA (1)See Non-GAAP Financial Measures for additional information 1
Slide 14: Mosaic Fertilizantes Q2 2022 Performance
Mosaic Fertilizantes Q2 2022 Performance Y/Y Adjusted EBITDA(1) Bridge $241 $1,109 $(836) $(32) $444 $ in millions $203 Q2 2021 Sales price Product cost Other Q2 2022 Adjusted Adjusted EBITDA EBITDA (1)See Non-GAAP Financial Measures for additional information 14
Slide 15: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) Q2 2022 Q2 2021 Consolidated net earnings attributable to Mosaic $1,036 $437 Less: Consolidated interest expense, net (34) (37) Plus: Consolidated depreciation, depletion and amortization 245 204 Plus: Accretion expense 20 19 Pl
Slide 16: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Operating Earnings (in millions) Q2 2022 Q2 2021 Operating Earnings $1,674 $484 Notable items impact 99 139 Adjusted Operating Earnings $1,773 $623 16
Slide 17: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q2 2022 Q2 2021 Operating earnings $915 $49 Plus: Depreciation, depletion and amortization 81 70 Plus: Accretion expense 2 4 Plus: Foreign exchange gain (loss) (23) 28 Plus: Other income (expense) - - Plus: Notable items 23 134 Adjust
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q2 2022 Q2 2021 Operating earnings $578 $283 Plus: Depreciation, depletion and amortization 133 106 Plus: Accretion expense 14 10 Plus: Foreign exchange gain (loss) - 8 Plus: Other income (expense) (24) 2 Less: Earnings (loss) from
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q2 2022 Q2 2021 Operating earnings $420 $170 Plus: Depreciation, depletion and amortization 27 24 Plus: Accretion expense 4 4 Plus: Foreign exchange gain (loss) (83) 34 Plus: Other income (expense) (1) (2) Less: Earnings
Slide 20: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Free Cash Flow (in millions) Q2 2022 Cash flow from operations $1,585 Capital expenditures (263) Adjustments for working capital financing (528) Free cash flow $794 20