Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q3 2024 Earnings Presentation
25 slides from Mosaic Company (the)'s earnings presentation, Nov 12, 2024
Slide 1: The Mosaic Company Third Quarter 2024 Results
The Mosaic Company Third Quarter 2024 Results November 12, 2024
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 transactions or strateg
Slide 3: Third Quarter 2024 Performance
Third Quarter 2024 Performance CONSOLIDATED OPERATING NET ADJUSTED (1) REVENUES EARNINGS INCOME EBITDA $2,811M $115M $122M $448M PHOSPHATE POTASH MOSAIC FERTILIZANTES Net Operating Adjusted(1) Net Operating Adjusted(1) Net Operating Adjusted(1) Revenues Earnings EBITDA Revenues Earnings EBITDA Reven
Slide 4: Third Quarter 2024 Key Takeaways
Third Quarter 2024 Key Takeaways ➢ Weather-related impacts and other production issues are behind us ➢ On track to achieve targeted phosphate production run rate of 7.8-8.2 million tonnes by end of 2024 Business ➢ Making good progress in achieving $150 million annual run rate cost saving target by e
Slide 5: Mosaic Biosciences
Mosaic Biosciences Acres Covered 9 million 112% CAGR 3.9 million 2 million 2022 2023 2024 Mosaic Biosciences Markets Mosaic Biosciences growth accelerated and achieved 9 million acres in key markets in 2024. 5 Source: Mosaic data
Slide 6: Investing in Our Strengths
Investing in Our Strengths Strategic Advantages Initiatives/Projects Progress Esterhazy Compaction ➢ Completed and fully ramped up Optimized Operations ➢ On-track for completion in 2H 25 Esterhazy Hydrofloat Riverview MicroEssentials ➢ Completed and fully ramped up Capacity Conversion A Value-Added
Slide 7: Market Highlights
Market Highlights
Slide 8: World Grain and Oilseed Growth
World Grain and Oilseed Growth Bil Tonnes World Grain and Oilseed Use Grain & Oilseed Production Growth breakdown by region 3.7 Brazil Other 3.6 20% 25% 3.5 3.4 India Other Asia / 16% Oceania 3.3 13% 2023 2030F North China America Feed Food+Other Biofuels (MOS baseline) Biofuels (IEA accel) 13% 13%
Slide 9: Fertilizer Affordability
Fertilizer Affordability P&K Affordability DAP + MOP Price Index / Crop Price Index 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Average (2010-present) DAP+MOP Average Phosphate and potash are affordable. Source: Weekly Price Publication
Slide 10: Brazil Fertilizer Shipments
Brazil Fertilizer Shipments Bag/MT Brazil Soybean Barter Ratio Mil Tonnes Brazil Fertilizer Shipments 40 50 45 – 46.6 Less Affordable Fertilizers 30 Actual/Estimate Forecast Range 20 40 10 More Affordable Fertilizers 0 30 15 16 17 18 19 20 21 22 23 24 Bag/MT Brazil Corn Barter Ratio 20 80 Less Affor
Slide 11: Global Potash Market
Global Potash Market Mil Tonnes Global MOP Shipments $/MT MOP Prices Published Spot Prices 80 1,400 c&f Brazil 75 72 - 74 1,200 c&f SE Asia delivered Cornbelt 70 1,000 fob NOLA 65 800 60 600 55 400 50 200 45 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24F 25F Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Potas
Slide 12: Global Phosphate Supply and Demand
Global Phosphate Supply and Demand Mil Tonnes Phosphate S/D Changes 2019-2024F 5.0 4.0 ~3.0 MMT gap between trend 3.0 demand and supply from 2.0 2019-2024 1.0 0.0 FSU Morocco Saudi Other China Other Lithuania Implied Cumulative Arabia Ramp-Up/ Operational Demand Demand Closures Changes Change (Trend
Slide 13: Global Phosphate Inventories
Global Phosphate Inventories Global Phosphate Inventories Index1 175 150 125 100 75 50 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Global phosphate inventories remain below historical average. 1. Estimated end-Sep inventories in China (producers), Brazil, India and the U.S. (producers). Index: end-201
Slide 14: China Phosphate Exports
China Phosphate Exports Mil Tonnes China Phosphate Exports 12 10 8 6 4 2 0 Average Average 2025F 2015-21 2022-24F China phosphate exports will likely remain at historically low levels in 2025. Source: China Customs, Mosaic MOSAIC CONFIDENTIAL 14
Slide 15: Global Phosphate Market
Global Phosphate Market Mil Tonnes Global Phosphate Shipments $/MT Benchmark DAP Stripping Margin DAP/MAP/NPS/TSP Calculated from Published Weekly Spot Prices 80 700 75 - 77 75 600 70 500 65 400 average 60 300 55 200 50 100 45 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24F 25F Jan-20 Jan-21 Jan-22
Slide 16: Appendix
Appendix
Slide 17: 2024 Assumptions
2024 Assumptions Pricing & Sensitivities FY 2023 Sensitivity Average DAP fob plant ($/tonne)(1) $573 $10 price = $70 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $308 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.00 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 18: Potash
Potash Y/Y Adjusted EBITDA(1) Bridge Variance $(87) Q1 2024 Q1 2023 $267 $(46) Q3 2024 Q3 2023 Variance Sales Volumes (mt in millions) 1.996 2.220 (0.224) MOP Selling Price (FOB Mine) ($/mt) $ 215 $ 266 $ (51) MOP Cash Costs of Production ($/mt) $ 74 $ 73 $ 1 $(89) $ in millions $ in millions $13 $(
Slide 19: Phosphate
Phosphate Y/Y Adjusted EBITDA(1) Bridge + $64 Q3 2024 Q3 2023 Variance Sales Volumes (mt in millions) 1.475 1.651 (0.176) $130 $(65) DAP Selling Price (FOB Plant) ($/mt) $ 569 $ 487 $ 82 Production Volume (mt in millions) 1.625 1.593 0.032 $7 $265 FL Cash Rock Cost of Production ($/mt) $ 56 $ 56 $ -
Slide 20: Mosaic Fertilizantes
Mosaic Fertilizantes Y/Y Adjusted EBITDA(1) Bridge Q3 2024 Q3 2023 Variance Sales Volumes (mt in millions) 2.879 3.060 (0.181) Average Finished Product Selling Price ($/mt) $ 486 $ 566 $ (80) $(64) MAP Price (delivered price to third party) ($/mt) $ 601 $ 533 $ 68 $147 $(6) $8 $(3) $(63) Cash Rock C
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Consolidated Earnings (Loss) (in millions) Q3 2024 Q3 2023 Consolidated net earnings (loss) attributable to Mosaic $122 $(4) Less: Consolidated interest expense, net (42) (17) Plus: Consolidated depreciation, depletion and amortization 238 239 Plus: Accretion expe
Slide 22: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Potash Earnings (in millions) Q3 2024 Q3 2023 Operating earnings (loss) $109 $200 Plus: Depreciation, depletion and amortization 69 66 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) 48 (26) Plus: Other Income (Expense) - (43) Plus: Notable items (4
Slide 23: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Phosphate Earnings (in millions) Q3 2024 Q3 2023 Operating earnings (loss) $8 $(58) Plus: Depreciation, depletion and amortization 118 117 Plus: Accretion expense 20 16 Plus: Foreign exchange gain (loss) (5) 4 Plus: Other income (expense) 1 (6) Less: Earnings from
Slide 24: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Mosaic Fertilizantes Earnings (in millions) Q3 2024 Q3 2023 Operating earnings (loss) $56 $77 Plus: Depreciation, depletion and amortization 39 54 Plus: Accretion expense 4 5 Plus: Foreign exchange gain (loss) 17 (48) Plus: Other income (expense) (2) (1) Less: Ear
Slide 25: ©2024 The Mosaic Company
©2024 The Mosaic Company