Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q3 2020 Earnings Presentation
15 slides from Mosaic Company (the)'s earnings presentation, Nov 2, 2020
Slide 1: 3Q20 Earnings Commentary
3Q20 EARNINGS COMMENTARY November 2, 2020 Management of The Mosaic Company provided the following commentary to accompany its third quarter 2020 earnings news release and performance data: Mosaic delivered strong results in the third quarter of 2020. Excellent cost controls across the company led to
Slide 2: Third quarter results and key observations
Third quarter net loss was $6 million and adjusted EBITDA was $438 million, compared with $389 million in the third quarter of 2019. The improvement was driven by declines in cost of goods sold per tonne, offsetting lower year-over-year realized prices in all three segments. Reported earnings per sh
Slide 3: Market outlook, Covid-19 and financial position
well balanced, and prices have increased slightly in Brazil and the U.S. corn belt. Global channel inventories are low, and we expect that to continue through the end of 2020 and into 2021. • Agriculture market fundamentals are strong in key regions. An improved growing season in North America, comp
Slide 4: Potash segment results
The Potash Segment generated operating earnings of $87 million for the quarter, lower than the third quarter of 2019 primarily due to lower market prices. The segment delivered $169 million of adjusted EBITDA, down from $215 million a year ago, and gross margin per tonne of $48, down from $68 in 3Q
Slide 5: Mosaic Fertilizantes results
Mosaic Fertilizantes delivered $144 million in operating earnings and $181 million in adjusted EBITDA compared with year ago levels of $98 million and $126 million, respectively. These are the best results in any quarter since Mosaic completed its acquisition of Vale’s assets in January 2018. Strong
Slide 6: Phosphate segment results
The Phosphate Segment reported an operating loss of $115 million, reflecting $108 million in non-cash asset retirement obligation and environmental reserve increases, as well as $16 million in idle plant costs. Adjusted operating earnings, excluding notables, were $6 million, compared with a loss of
Slide 7: Phosphate price improvement and cost progress
The improvement was driven by lower production costs and nominal increases in average realized prices. Over 60 percent of the sales in the quarter were priced in June and July, with a DAP average price less than $300 per tonne. It is important to note that phosphate results accelerated through the c
Slide 8: Countervailing duty and global trade flows
The company continues to believe that the primary impact of any countervailing duty will be a shift in trade flows, not a change in global supply and demand. Trade flows from OCP and Russia have shifted away from the U.S. and toward India and Brazil, while global supply and demand tightness has driv
Slide 9: Balance sheet strengthening
Mosaic’s balance sheet continues to strengthen. Strong and improving cash generation from each of the businesses has enabled the company to maintain robust liquidity while continuing to repay short-term debt incurred during the first quarter. At quarter’s end, Mosaic held $923 million in cash after
Slide 10: Execution and outlook
Mosaic continues to execute well: We are increasing our global competitiveness by driving costs down toward our recently released 2023 targets; we are managing well through the challenges of Covid-19; and, with tailwinds from improving fertilizer and agriculture markets, we expect strong results to
Slide 11: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This release 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 proposed or pending future transactions or strategic
Slide 12: Forward Looking Statements (continued)
regulation, implementation of 18 numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings,
Slide 13: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (Loss) (in millions) 3Q 2020} 3Q2019 Consolidated net earnings (loss) attributable to Mosaic $(6) $(44) Less: Consolidated interest expense, net (43) (43) Plus: Consolidated depreciation, depletion and amortization 206 211 Plus: Accretion exp
Slide 14: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphates Earnings (in millions) 3Q 2020 2Q 2020 3Q 2019 Operating earnings (loss) $(115) $(59) $(70) Plus: Depreciation, depletion and amortization 108 113 109 Plus: Accretion expense 12 "1 12 Plus: Foreign exchange gain (loss) 1 2 4 Plus: Other income (expense)
Slide 15: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) 3Q 2020 2Q 2020 3Q 2019 | YTD 2020 Operating earnings (loss) $144 $77 $98 $250 Plus: Depreciation, depletion and amortization 25 27 34 80 Plus: Accretion expense =| a 4) 9 Plus: Foreign exchange gain (loss) (3) (27) (39)