Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Bradesco BBI Conference 2021
24 slides from Mosaic Company (the)'s conference presentation, Jul 1, 2021
Slide 1: The Mosaic Company
The Mosaic Company Corrine Ricard Senior Vice President, Mosaic Fertilizantes Eduardo Monteiro Commercial Vice President, Mosaic Fertilizantes July 1, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 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 strategic plans and other stat
Slide 3: Mosaic's Strategic Priorities
Mosaic’s Strategic Priorities 1 North America Transformation Uncover and pursue new opportunities to improve the profitability and competitiveness of our potash and phosphate businesses 4 Drive Functional Collaboration and Efficiency Rethink and re-engineer outdated and inefficient processes, and co
Slide 4: The Mosaic Company at a glance
The Mosaic Company at a glance Business highlights Summary of Consolidated financial metrics • World’s largest combined producer of P&K in $ million (unless otherwise stated) 2018 2019 2020 1Q2021 fertilizers Finished product sold(1) (in ‘000 tonnes) 27,637 26,736 30,496 6,581 • 21 million tonnes pr
Slide 5: Mosaic Fertilizantes Segment
Mosaic Fertilizantes Segment Our History in Brazil Summary of Mosaic Fertilizantes Segment Metrics in $ million 2017 2018 2019 2020 1Q2021 1909 IMC Global is founded; mining initiates (unless otherwise stated) Finished product sold 6,016 9,133 9,245 10,564 2,064 (in ‘000 tonnes) 1960 Cargill Fertili
Slide 6: Mosaic Fertilizantes Leadership in Brazil
Mosaic Fertilizantes Leadership in Brazil Mosaic Fertilizantes Leadership 69% of in-country Phosphate production Only Potash producer in Brazil 24% of Brazilian market access(1) 45% of Animal Nutrition market share (1)Excludes Paraguay and Animal Nutrition 6
Slide 7: Our portfolio
Our portfolio Agriculture Animal Nutrition Specialties Performa Animal nutrition Aggregated Chemicals (soil conditioners) Gypsum Limestone Sulfated Chemicals Sulfuric Acid Phosphoric Acid Performance Pasture Sulfur Special Chemicals Specials Fluosilicic acid Sulfur sludge Magnetite Potassium Chlorid
Slide 8: Brazil Market and Mosaic Fertilizantes
Brazil Market and Mosaic Fertilizantes Brazil’s Fertilizers Market Structure 3% Local Producers (B2B) 12% 57% END Blenders (B2C) USER Overseas Supplier 85% 40% Dealers Mosaic Fertilizantes Production (B2B) Distribution (B2C) (as of 2020) Fertilizer Animal Nutrition Specialties Fertilizer Sales Volum
Slide 9: Distribution Players
Distribution Players Total Shipments Player Blend Facilities in Brazil (B2B+B2C) Market Access (1) (1) 16 9.6 24% Yara 24 9.0 22% Fertipar 18 7.0 17% Eurochem-FTO* 8 3.5 9% (2) (2) (2) Heringer** 9 1.4 3% Others 10.0 25% (+100 players) (1)Excludes Paraguay and Animal Nutrition (2)Heringer judicial r
Slide 10: Brazil: A Large, Growing Agricultural Market
Brazil: A Large, Growing Agricultural Market Grains Production 272 million tonnes 258 5% 238 242 CAGR 228 208 194 187 184 163 166 144 149 132 135 123 119 115 123 100 97 69 66 3% 63 Planted Area CAGR 58 61 62 57 58 18 millions of hectares 17 54 16 50 51 15 14 47 49 48 47 48 47 12 12 13 46 11 44 6 9 1
Slide 11: Farm Economics Encourage Growth
Farm Economics Encourage Growth Soy barter ratio Number of 60kg soybean bags/ 1 tonne of fertilizer 30 Brazil’s Agribusiness Revenue 25 LESS affordable to farmers In BRL billion 20 600 15 Crops 10 500 Livestock MORE affordable to farmers 5 Jan/18 Jul/18 Jan/19 Jul/19 Jan/20 Jul/20 Jan/21 Jul/21 400
Slide 12: Farmers Income and Application Rates
Farmers Income and Application Rates Global Soil Fertility Fertilizers are key components to optimize yields 21/22 Soybean Profitability Source: Based on ‘Global Roadmap’ / USDA data (USD/ha, as of Jun/2021) Soybean Yields, as of 2021 574 363 Area Yield Nutrient Usage Country (million ha) (MT/ha) (k
Slide 13: Leading to Strong Fertilizer Market
Leading to Strong Fertilizer Market Historical Brazilian Fertilizer Demand 2021 Expected Market Growth Million tonnes Low case: 43Mt Million tonnes High case: 44Mt Low case: 43Mt High case: 44Mt ~43.5 41 0.6 ~43.5 0.3 36 36 0.6 34 34 32 1.4 31 30 30 28 25 40.6 ~5% 16 CAGR 2000 2010 2011 2012 2013 20
Slide 14: Brazil is Highly Dependent on Imported Fertilizer
Brazil is Highly Dependent on Imported Fertilizer National Production vs. Imports Imported Fertilizer Million tonnes of Fertilizers; as of 2020 Million tonnes 41 11 15 11 4 35 30 8% CAGR 62% 61% 25 81% 97% 96% 20 15 38% 39% 10 19% 3% 4% 5 Total Nitrogen Phosphates Potash Others 2010 2011 2012 2013 2
Slide 15: Precision agriculture and the impacts over the use of fertilizers
Precision agriculture and the impacts over the use of fertilizers Performance Products imports Precision Agriculture trends: Million tonnes • Higher need for customized nutritional solutions • Higher use of secondary macronutrients (Mg, S and Ca) and micronutrients • New technologies inside fertiliz
Slide 16: Brazilian logistic bottleneck somewhat reduced in the last years
Brazilian logistic bottleneck somewhat reduced in the last years $64/t 2020: ~28% 2025E: ~34% United Grains exports Brazil competitiveness States $70/t $55/ton 2020: ~72% 2025E: ~66% Modal 2020 2025E 2020 2025E Trucks 89% 70% <1% <1% Railway 10% 25% 15% 15% Waterway 1% 5% 85% 85% (barges) 16 Source:
Slide 17: Changing Logistics (towards the North Entrance)
Changing Logistics (towards the North Entrance) Arc North Share of grains and oilseeds exports through the Northern Entrance Itacoatiara Vila do Conde Itaqui Santarem Arc North Share Center-South Share ~1.050 km on 10% roadway 20% ~32% Aratu ~68% ~2.200 km on 80% 90% roadway Vitoria 2010 2015 2020E
Slide 18: Grow Distribution
Grow Distribution Grow Faster Than the Market Double Platform for bestFertilizer 5-Year practices Market Growth CAGR ~2%(1) MicroEssentials Volume to back 5-year office CAGR target: 5% to 10% Distribution 2 million tonnes Build Maximize Pursue Digital Markets Asset Capacity Opportunities (1)Source:
Slide 19: Transform Production
Transform Production Selective investment to strengthen core assets, with focus on cash generation Increased efficiency through appropriate investment Develop co-products markets 19
Slide 20: 13 Bold Targets
Mission: Commitment: We help the world grow To achieve the promise of the food it needs our mission…responsibly 13 BOLD TARGETS to drive performance in 12 ESG priority areas 20
Slide 21: Slide 21
Slide 22: Appendix
Appendix 22
Slide 23: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (Loss) (in millions) 2018 2019 2020 Q1 2021 Consolidated net earnings (loss) attributable to Mosaic $470 $(1,067) $666 $157 Less: Consolidated interest expense, net (166) (183) (180) (45) Plus: Consolidated depreciation, depletion and 884 883
Slide 24: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Q1 Mosaic Fertilizantes Earnings (in millions) 2017 2018 2019 2020 2021 Operating earnings $63 $241 $133 $347 $90 Plus: Depreciation, depletion and amortization 17 159 136 105 23 Plus: Accretion expense - 4 7 12 3 Plus: Foreign exchange gain (loss) (22) (85) (44)