Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q1 2023 Earnings Presentation
19 slides from Mosaic Company (the)'s earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Results
The Mosaic Company First Quarter 2023 Results May 3, 2023 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 2023 Performance
First Quarter 2023 Performance CONSOLIDATED OPERATING NET ADJUSTED(1) REVENUES EARNINGS EARNINGS EBITDA $3,604M $545M $435M $777M -8% Y/Y -57% Y/Y -63% Y/Y -46% Y/Y PHOSPHATES POTASH MOSAIC FERTILIZANTES Net Operating Adjusted Net Operating Adjusted Net Operating Adjusted Revenues Earnings EBITDA(1)
Slide 4: Still-Elevated Agriculture Prices
Still-Elevated Agriculture Prices Ag commodities continue to be elevated from a historical standpoint, despite giving back war premium; in most cases prices are substantially higher than those that prevailed in 2021 (which was a strong year for ag/ferts). Indexed Daily Close of Front Month Contract
Slide 5: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Slow down in yield growth in recent years has pushed our stocks-to-use ratio metric below 15%, a 25-year low and unlikely to recover in a single season. Mil Tonnes Grain and Oilseed Stocks Percent World Less China 500 22% 475 21% 450 20% 425 19% 400 375 18% 350 17% 32
Slide 6: Phosphate and Potash Prices
Phosphate and Potash Prices P prices have showed signs of stabilization, with in-season strength appearing in NAM; K prices have also rebounded in season in NAM. $/MT Global DAP/MAP Benchmark Prices $/MT Potash Prices Published Spot Prices Published Spot Prices 1,400 1,400 c&f Brazil c&f SE Asia fob
Slide 7: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Lower fertilizer prices, combined with still-elevated ag commodity prices, have pushed fertilizer affordability metrics to levels that have historically been conducive to demand. Plant Nutrient Affordability SE Asia MOP/CPO Price Ratio Ferts Price Index / Crop Price I
Slide 8: Operational Highlights
Operational Highlights • Best quarterly production since 2021, as operations recovered from second half 2022 disruptions that were resolved in the early part of the first quarter Phosphates • Stripping margins realized a q/q benefit from lower raw material costs; expected to continue in the second q
Slide 9: Strong North American Spring Shipments
Strong North American Spring Shipments Mosaic’s April shipments to North American customers have recovered significantly from last year and represent the highest April shipments in the last five years. This trend has continued into May. 1,200 Phosphates Potash 1,000 800 600 400 200 0 2018 2019 2020
Slide 10: 2023 Capital Allocation
2023 Capital Allocation Our capital allocation strategy remains unchanged. Invest in the Maintain Strong Return Capital to Business Balance Sheet Shareholders High-returning, modest Current balance sheet Continue returning virtually investments reflects investment grade all Free Cash Flow to metrics
Slide 11: Outlook for 2023
Outlook for 2023 Pricing & Sensitivities FY 2022 Sensitivity Average DAP fob plant ($/tonne)(1) $804 $10 price = $90 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $632 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.16 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 12: Appendix
Appendix
Slide 13: Potash
Potash Q/Q Adjusted EBITDA(1) Bridge Q1 2023 Q1 2022 Variance $(177) $651 $(226) Sales Volumes (mt in millions) 1.910 1.792 0.118 MOP Selling Price (FOB Mine) ($/mt) $ 421 $ 582 $ (161) $54 $(7) $(10) $(24) MOP cash costs of production (excl Brine) ($/mt) $ 81 $ 81 $ - $36 $474 Brine Magagement Cash
Slide 14: Phosphate
Phosphate Q/Q Adjusted EBITDA(1) Bridge Q1 2023 Q1 2022 Variance $(250) Sales Volumes (mt in millions) 1.836 1.661 0.175 $632 $(239) DAP Selling Price (FOB Plant) ($/mt) $ 660 $ 785 $ (125) Production volume (mt in millions) 1.836 1.745 0.091 $58 $11 $(24) $(34) FL Cash Rock Cost of production ($/mt
Slide 15: Mosaic Fertilizantes
Mosaic Fertilizantes Q/Q Adjusted EBITDA(1) Bridge Q1 2023 Q1 2022 Variance Sales Volumes (mt in millions) 2.080 1.822 0.258 Average Finished Product Selling Price ($/mt) $ 646 $ 817 $ (171) $(230) MAP Price (delivered price to third party) ($/mt) $ 669 $ 882 $ (213) $233 $(255) Cash Rock Cost produ
Slide 16: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) Q1 2023 Q1 2022 Consolidated net earnings attributable to Mosaic $435 $1,182 Less: Consolidated interest expense, net (41) (40) Plus: Consolidated depreciation, depletion and amortization 220 226 Plus: Accretion expense 23 20 Pl
Slide 17: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q1 2023 Q1 2022 Operating earnings $402 $563 Plus: Depreciation, depletion and amortization 70 77 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) 3 17 Plus: Other income (expense) - - Plus: Notable items (3) (8) Adjuste
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q1 2023 Q1 2022 Operating earnings $266 $493 Plus: Depreciation, depletion and amortization 116 120 Plus: Accretion expense 16 13 Plus: Foreign exchange gain (loss) (2) (7) Plus: Dividends received from equity investment 25 - Less:
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q1 2023 Q1 2022 Operating earnings (loss) $(32) $187 Plus: Depreciation, depletion and amortization 32 25 Plus: Accretion expense 5 4 Plus: Foreign exchange gain (loss) 23 119 Plus: Other income (expense) (1) (1) Less: E