Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q2 2021 Earnings Presentation
14 slides from Mosaic Company (the)'s earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Earnings Commentary
SECOND QUARTER 2021 EARNINGS COMMENTARY August 2, 2021 Management of The Mosaic Company provided the following commentary to accompany its second quarter 2021 earnings news release and performance data: Mosaic delivered excellent results in the second quarter of 2021 reflecting the company’s ability
Slide 2: Global agriculture market fundamentals are strong
optimization; transformation activities across the business; Nextgen operations in both phosphates and potash; and the successful acceleration of K3. Global agriculture market fundamentals are strong. Grain and oilseed prices remain elevated as demand for food and fuel continues to grow. Despite hig
Slide 3: Fertilizer prices strengthen on phosphate and potash markets
With strong agricultural fundamentals underpinning demand and near-term supply growth in phosphates and potash limited, fertilizer prices continued to strengthen throughout the quarter. The phosphate market benefited from sustained global demand and low producer and channel inventories during the se
Slide 4: Progress toward ESG targets and product portfolio initiatives
Mosaic continues to make progress toward our 13 ESG targets, which were introduced in 2020, and have increased our focus on accelerating our diversity and inclusion activities, particularly in the areas of recruiting, corporate culture, and external partnerships. Our product portfolio initiatives re
Slide 5: Over $4 billion in liquidity at quarter end
At the end of the quarter, Mosaic had over $4 billion in liquidity, including $1.4 billion in cash, $2.2 billion of committed lines of credit, and $500 million of other available lines. The company is well positioned to retire the $450 million November debt maturity in August and continues to target
Slide 6: Mosaic Fertilizantes second quarter results
Mosaic Fertilizantes delivered $170 million in operating earnings and $203 million in adjusted EBITDA in the second quarter of 2021. This compares to $77 million and $109 million, respectively, in the same period last year. In the quarter, higher prices were the primary driver behind the increase in
Slide 7: Brazil outlook and Phosphate segment results
The Brazilian agricultural economy remains robust, with fertilizer shipments expected to achieve another record of 45 million tonnes in 2021. We estimate year-to-date commitments to purchase nutrients in Brazil are approximately 35 million tonnes. While Covid continues to create risks in Brazil, the
Slide 8: Phosphate gross margins and ammonia costs
Gross margins also reflect our competitive advantage in ammonia, with less than a third of our ammonia subject to the recent market price increases. While year- over-year market prices of ammonia were up $296 to $530 per tonne, our costs increased $93 to $382 per tonne. Going forward, we’ve elected
Slide 9: Potash segment results and K3 ramp-up
compared to gross margin per tonne of $51, or $60 on an adjusted basis, in the prior year quarter. The strong gross margins reflected improved pricing, partially offset by lower volumes and the impact of a stronger Canadian dollar. Volumes were negatively impacted by logistic issues related to Canpo
Slide 10: Third quarter price and cost expectations
We expect to continue realizing the benefits of market price improvements, particularly in phosphate, where 90 percent of our third quarter volumes are committed and priced. We expect to report average realized phosphate prices improving by an additional $90 to $100 per tonne sequentially in the thi
Slide 11: Second half of 2021 outlook
The second half of 2021 is setting up to be one of the strongest periods in a decade, and we believe the market will remain constructive into 2022. Mosaic’s cost transformation and investments in the business over the last several years have created significant earnings power. We have shown an abili
Slide 12: Reconciliation of non-GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (Loss) (in ions) Q2 2021 2Q 2020 Consolidated net earnings (loss) attributable to Mosaic $437 $47 Less: Consolidated interest expense, net (37) (49) Plus: Consolidated depreciation, depletion and amortization 204 215 Plus: Accretion expense 1
Slide 13: Reconciliation of non-GAAP measures: Potash and Fertilizantes
Reconciliation of non GAAP measures Potash Earnings (in millions) Q2 2021 Q2 2020 Operating earnings $49 $124 Plus: Depreciation, depletion and amortization 70 70 Plus: Accretion expense 4 a Plus: Foreign exchange gain (loss) 28 66 Plus: Other income (expense) - z Plus: Notable items 134 (66) Adjust
Slide 14: Reconciliation of non-GAAP measures: Phosphates
Reconciliation of non GAAP measures Phosphates Earnings (in millions) Q2 2021 Q2 2020 Operating earnings (loss) $283 $(59) Plus: Depreciation, depletion and amortization 106 113 Plus: Accretion expense 10 "1 Plus: Foreign exchange gain (loss) 8 2 Plus: Other income (expense) 2 = Less: Eamings (loss)