Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q1 2015 Earnings Presentation
25 slides from Mosaic Company (the)'s earnings presentation, Apr 30, 2015
Slide 1: The Mosaic Company Earnings Conference Call – First Quarter 2015
The Mosaic Company Earnings Conference Call – First Quarter 2015 April 30, 2015 Jim Prokopanko, President and Chief Executive Officer Rich Mack, Executive Vice President and Chief Financial Officer Laura Gagnon, Vice President Investor Relations
Slide 2: Safe Harbor Statement
Safe Harbor Statement Click to edit Master title style This document 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 Wa’ad Al Shamal Phosphate Company (also known as
Slide 3: Visible Strategic Progress
Visible Strategic Progress $0.80 $0.02 $0.70 $0.07 $0.60 $0.07 $0.06 $0.50 EPS $0.40 $0.70 $0.30 $0.52 $0.20 $0.10 $0.00 Q1 14 Adjusted CF Volume Lower Potash Lower Share Other Q1 15 Adjusted EPS Costs/Tonne Count EPS 2 3
Slide 4: First Quarter Financial Highlights
Click to edit First Quarter Financial Master title style Highlights Net Sales Operating Earnings Phosphates $653 International $190 Distribution $204 $1,172 Potash $439 $3 $2.1 billion $319 million $0.80 diluted earnings per share • Includes $0.10 positive impact of notable items $656 million in
Slide 5: Late North American Spring
Late North American Spring Crop Progress for Week Ending April 27, 2015 % Corn Planted Last week Last year 5-year Average Illinois 31% 15% 28% 37% Indiana 3% 1% 7% 26% Iowa 14% 1% 13% 24% Kansas 32% 23% 35% 31% Minnesota 38% 12% 3% 20% Missouri 20% 8% 44% 44% Nebraska 16% 4% 18% 17% 18 States* 19% 9
Slide 6: Financial Results Review
Financial Results Review
Slide 7: Phosphates Segment Highlights
Phosphates Segment Highlights $ In millions, except DAP price Q1 2015 Q4 2014 Q1 2014 OPERATING EARNINGS BRIDGE $ IN MILLIONS Net sales $1,172 $1,212 $959 300 Gross margin $222 $231 $200 250 Percent of net sales 19% 19% 21% 200 Operating earnings $190 $135 $146 150 Sales volumes 2.3 2.4 2.1 100 NA p
Slide 8: Potash Segment Highlights
Potash Segment Highlights $ In millions, except MOP price Q1 2015 Q4 2014 Q1 2014 OPERATING EARNINGS BRIDGE $ IN MILLIONS Net sales $653 $763 $733 250 Gross margin $242 $327 $216 200 Percent of net sales 37% 43% 29% 150 Operating earnings $204 $229 $170 100 Sales volumes 2.0 2.3 2.4 50 Production vo
Slide 9: International Distribution Segment Highlights
International Distribution Segment Highlights $ In millions, except Blends price Q1 2015 Q4 2014 Q1 2014 OPERATING EARNINGS BRIDGE $ IN MILLIONS Net sales $439 $516 $393 30 Gross margin $21 $41 $22 Percent of net sales 5% 8% 6% 20 Operating earnings $3 $22 $8 10 Sales volumes 976 1,113 870 Margin pe
Slide 10: Balance Sheet and Capital Update
Balance Sheet and Capital Update Return Grow Business Sustain Assets & Dividend Maintain Strong Financial Foundation 10
Slide 11: Financial Guidance
Financial Guidance Click Summary to edit Master title style Phosphates 2015 Q2 Sales volumes 2.3 to 2.7 million tonnes Q2 DAP selling price $425 to $450 per tonne Q2 Gross margin rate Around 20 percent Q2 Operating rate 80 to 85 percent Full year sales volumes 9 to 10 million tonnes International Di
Slide 12: Financial Guidance
Financial Guidance Click Summary to edit Master title style Potash 2015 Q2 Sales volumes 2.0 to 2.4 million tonnes Q2 MOP selling price $265 to $290 per tonne Q2 Gross margin rate Upper 30 percent range Q2 Operating rate 85 to 90 percent Full year sales volumes 8.5 to 9 million tonnes Full Year Cana
Slide 13: Helping the World Grow the Food it Needs
Helping the World Grow the Food it Needs
Slide 14: Market Update: North America
Market Update: North America 6.0 North American Potash Shipments 5.0 Million Tonnes 4.0 Spring 15 Range 3.0 Fall 15 Range 2.0 Spring 16 Range 1.0 Fall 14 Actual Jul-Dec 2014 (A) Jan-Jun 2015 (F) Jul-Dec 2015 (F) Jan-Jun 2016 (F) 7-Yr Olympic 5.0 North American Phosphate Shipments Average 4.5 7-Yr Mi
Slide 15: Market Update: China
Market Update: China 1000 Tonnes China Potash Imports (MOP) 8,000 Source: China Customs and Mosaic 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Actual Q2-Q4 Forecast 2014 2015 2 15
Slide 16: Market Update: India
Market Update: India India Phosphate & Potash Imports 1000 Tonnes (DAP/MOP) 9,000 Source: FAI and Mosaic 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Actual Q2-Q4 Forecast 2014 2015 2 16
Slide 17: Market Update: Brazil
Market Update: Brazil Brazil Phosphate & Potash Imports 1000 Tonnes (DAP/MAP/MES/TSP/MOP) 12,000 Source: ANDA and Mosaic 10,000 8,000 6,000 4,000 2,000 0 Q1 Actual Q2-Q4 Forecast 2014 2015 2 17
Slide 18: Thank You
Market Update Thank You The Mosaic Company Earnings Conference Call – First Quarter 2015 April 30, 2015
Slide 19: Thank You
Thank You The Mosaic Company Earnings Conference Call – First Quarter 2015 April 30, 2015
Slide 20: Appendix
Appendix
Slide 21: Raw Material Cost Detail
Raw Material Cost Detail Q1 2015 Percent Ammonia ($/tonnes) Realized in COGS $519 Average Purchase Price $499 Sulfur ($/ton) Realized in COGS $145 Average Purchase Price $161 Phosphate rock (realized in COGS) ('000 tonnes) U.S. mined rock 3,755 91% Purchased Miski Mayo Rock 334 8% Other Purchased Ro
Slide 22: Phosphate Raw Material Trends
Phosphate Raw Material Trends Ammonia Sulfur ($/tonne) ($/tonne) $700 $600 $200 $175 $500 $150 $400 $125 $300 $100 $75 $200 $50 $100 $25 $- $- Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2013 2014 2014 2014 2014 2015 2015F 2013 2013 2013 2014 2014 2014 2014 2015 2015F 2 1 Realize
Slide 23: Earnings Sensitivity to Key Drivers
Earnings Sensitivity to Key Drivers(a) 2015 Q1 % Impact on 2015 Q1 Pre-Tax Change Margin % Segment EPS Impact Actual Impact Actual Margin Marketing MOP Price ($/tonne)(b) $288 $50 37% 15% $95 $0.21 Potash Volume 2.0 0.5 37% 15% $97 $0.22 (million tonnes) DAP Price ($/tonne) $458 $50 19% 10% $115 $0.
Slide 24: Reconciliation: Adjusted EPS
Reconciliation: Adjusted EPS Three months ended March 31, 2015 2014 Diluted earnings per share, as reported $ 0.80 $ 0.54 Items included in EPS: Foreign currency transaction gain 0.09 0.08 Unrealized gain (loss) on derivatives (0.08) (0.01) Discrete tax items 0.08 0.16 Remediation of a pre-combinati
Slide 25: Reconciliation: Excess Cash
Reconciliation: Excess Cash Cash and cash equivalents at March 31, 2015 $ 2,517 Adjustments: Asset retirement obligations (650) Share Repurchase authorization (149) Liquidity buffer (1,000) Excess Cash at March 31, 2015 $ 718 25