Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q1 2022 Earnings Presentation
21 slides from Mosaic Company (the)'s earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Results
The Mosaic Company FIRST QUARTER 2022 RESULTS May 2, 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: First Quarter 2022 Performance
First Quarter 2022 Performance CONSOLIDATED OPERATING NET ADJUSTED(1) REVENUES EARNINGS EARNINGS EBITDA $3,922M $1,256M $1,182M $1,451M +71% Y/Y +301% Y/Y +653% Y/Y +159% Y/Y PHOSPHATES POTASH MOSAIC FERTILIZANTES Net Operating Adjusted Net Operating Adjusted Net Operating Adjusted Revenues Earnings
Slide 4: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Stock-to-use ratio is at the lowest point since 2003/04 World Less China Grain and Oilseed Stocks 475 22% Stocks Percent of Use 450 21% 425 20% 400 19% 375 Percent of Use 18% Stocks, MMT 350 17% 325 16% 300 275 15% 250 14% 225 13% 200 12% 2000 2002 2004 2006 2008 2010
Slide 5: Elevated Agricultural Prices
Elevated Agricultural Prices The war in Ukraine exacerbated supply risks, pushing crop prices higher Indexed Daily Close of Front Month Contract Indexed Daily Close of Front Month Contract Corn Soy Wheat Palm Oil Coffee Rice Sugar Cotton 400 400 350 350 300 300 2018=100 2018=100 250 250 200 200 150
Slide 6: 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, providing a “catch-up” demand tailwind over the medium term Global Phosphate Shipments Global MOP Shipments DAP/MAP/NPS/TSP Mil Tonnes Mil Tonnes KCl 90 90 Unfulf
Slide 7: Nutrient Prices Are Responding
Nutrient Prices Are Responding Solid demand, supply disruptions, and higher costs drove prices higher in Q1 Global DAP/MAP Benchmark Prices Potash Prices $/MT $/MT Published Spot Prices Published Spot Prices 1,400 1,400 Brazil (c&f) SE Asia (c&f) DAP, NOLA DAP, India 1,200 1,200 NOLA (fob) Cornbelt
Slide 8: Opportunities for Growth
Opportunities for Growth • K3 ramp up to 5.5 mtpy now complete; Colonsay now operating at 1.3 million tonnes. Potash • Total NA operating rate of 10.5 million tonnes. • Exploring additional production growth of up to 1.5 mtpy by 2H23. • Total fertilizer production expected to grow 400k tonnes in 202
Slide 9: First Quarter 2022 Free Cash Flow
First Quarter 2022 Free Cash Flow(1) Capital return to shareholders remains a key focus in 2022 $ in millions Cash Flow from Operations $506 Capital Expenditures $(291) Adjustments for Working Capital Financing $251 Free Cash Flow(1) $466 Q1 2022 Capital Return $463 Capital Return as a % of FCF(1) 9
Slide 10: Appendix
Appendix
Slide 11: Consolidated Results Y/Y
Consolidated Results Y/Y Consolidated Net Sales rose 71% primarily driven by price increases, which, when combined with transformational savings drove significantly improved year-over-year profitability. Operating Earnings increased 301%, Net Earnings increased significantly, and Adjusted EBITDA mor
Slide 12: Outlook for 2022
Outlook for 2022 Pricing & Sensitivities FY 2021 Q1 2022 Sensitivity Average DAP fob plant ($/tonne)(1) $564 $785 $10 price = $94 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $285 $582 $10 price = $53 mm adjusted EBITDA BRL/USD(3) 5.39 5.24 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approx
Slide 13: Potash Q1 2022 Performance
Potash Q1 2022 Performance Y/Y Adjusted EBITDA(1) Bridge Q1 2022 Q1 2021 Variance Sales Volumes (mt in millions) 1.792 1.980 (0.188) $439 MOP Selling Price (FOB Mine) ($/mt) $ 582 $ 200 $ 382 MOP cash costs of production (excl Brine) ($/mt) $ 81 $ 64 $ 17 $626 $(16) $(142) Brine Magagement Cash Cost
Slide 14: Phosphate Q1 2022 Performance
Phosphate Q1 2022 Performance Y/Y Adjusted EBITDA(1) Bridge Q1 2022 Q1 2021 Variance Sales Volumes (mt in millions) 1.661 2.062 (0.401) $361 DAP Selling Price (FOB Plant) ($/mt) $ 785 $ 426 $ 359 $593 $6 $(33) $(42) Production volume (mt in millions) 1.745 1.911 (0.166) $(128) FL Cash Rock Cost of p
Slide 15: Mosaic Fertilizantes Q1 2022 Performance
Mosaic Fertilizantes Q1 2022 Performance Y/Y Adjusted EBITDA(1) Bridge Q1 2022 Q1 2021 Variance Sales Volumes (mt in millions) 1.822 2.064 (0.242) $129 Average Finished Product Selling Price ($/mt) $ 817 $ 370 $ 447 MAP Price (delivered price to third party) ($/mt) $ 882 $ 421 $ 461 $28 $(7) $(8) $(
Slide 16: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) Q1 2022 Q1 2021 Consolidated net earnings attributable to Mosaic $1,182 $157 Less: Consolidated interest expense, net (40) (45) Plus: Consolidated depreciation, depletion and amortization 226 209 Plus: Accretion expense 20 17 Pl
Slide 17: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Operating Earnings (in millions) Q1 2022 Q1 2021 Operating Earnings $1,256 $313 Notable items impact (60) 34 Adjusted Operating Earnings $1,196 $347 17
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q1 2022 Q1 2021 Operating earnings $563 $125 Plus: Depreciation, depletion and amortization 77 80 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) 17 15 Plus: Other income (expense) - - Plus: Notable items (8) (10) Adjus
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q1 2022 Q1 2021 Operating earnings $493 $153 Plus: Depreciation, depletion and amortization 120 102 Plus: Accretion expense 13 12 Plus: Foreign exchange gain (loss) (7) 6 Plus: Other income (expense) - 5 Less: Earnings (loss) from
Slide 20: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q1 2022 Q1 2021 Operating earnings $187 $90 Plus: Depreciation, depletion and amortization 25 23 Plus: Accretion expense 4 3 Plus: Foreign exchange gain (loss) 119 (33) Plus: Other income (expense) (1) (1) Less: Earnings
Slide 21: Operating Driver Targets
Operating Driver Targets 3/31/22 2023 Target Phosphates Cash cost of U.S. mined rock ($/tonne)(1) $50 $34 Cash costs of conversion ($/tonne) (1) $76 $51 Cash costs of production (excluding brine) – MOP ($/tonne) (1) $81 $49 Potash Cash brine management costs ($ in millions) $0 $0 Fertilizantes Cash