Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Citi Basic Materials Conference 2019
15 slides from Mosaic Company (the)'s conference presentation, Dec 4, 2019
Slide 1: The Mosaic Company
The Mosaic Company Citi Basic Materials Conference Presenter: Clint Freeland, Senior Vice President and CFO Date: December 4, 2019
Slide 2: 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 the anticipated benefits and synergies of our acquis
Slide 3: Largest Global Finished Phosphate & Potash Producer Focused on The Americas
Largest Global Finished Phosphate & Potash Producer Focused on The Americas Worlds Largest Potash & Phosphate Producers(1) Mosaic’s Shipment Destination(2) Mosaic EU Nutrien Other EU OCP Belaruskali Australia- Asia Uralkali North Guizhou Phos. America ICL MOP-Equivalent DAP-Equivalent K+S PhosAgro S
Slide 4: Investment Thesis
Investment Thesis Long-term demand growth driven by global population and income growth. The food story is still in play. Mosaic has long lived, high quality, low cost assets to support our mission: Helping the world grow the food it needs. The company continues to execute well, improving cost curve
Slide 5: Transformative Decisions: Esterhazy K3
Transformative Decisions: Esterhazy K3 ~$225 million of Expected ~$75 million of Expected Brine Management Savings Esterhazy Production Savings $ in millions Esterhazy $ / tonne Esterhazy Cash Brine Management Spend Cash Production Cost / Tonne $160 $80 $120 $70 $80 $60 $40 $50 $0 $40 2018 2019 2020
Slide 6: Transformative Decisions: Mosaic Fertilizantes
Transformative Decisions: Mosaic Fertilizantes Cumulative Synergy Capture $ in millions By Quarter 2018-2019 $600 New target of $500 $14M $200 million $200 incremental $400 $6M $7 annual pretax $300 $50 income growth $10M $7 from 2019 $200 $7M $29 $7 $275 $100 $26 $230 $4 $22M $158 $102 $121 $23 $66
Slide 7: Driving Growth 2019 to 2020
Driving Growth 2019 to 2020 Non Market Growth 2019 to 2020 Mosaic expects ~ $225 million of adjusted EBITDA Adjusted EBITDA(1) growth, all else equal, due to the following: 250 • The Brazilian phosphate mines resumed full operations last week, with the outages in 2019 200 having cost an estimated $8
Slide 8: ESG Engagement and Recognition
ESG Engagement and Recognition CDP Climate A- CDP Water B Sustainalytics 57 MSCI A 100 Best Corporate Citizens 77 FTSE ESG 3.7
Slide 9: ESG Focus Areas and Priorities
ESG Focus Areas Priorities Safety and Wellness We are unwavering in our focus on the safety, People wellness and engagement of our employees. Diversity Engagement Mosaic is a committed steward of environmental Water Environment resources, working efficiently and minimizing negative impacts. Air and
Slide 10: North America
North America Potash Phosphate • Channel stocks not as heavy as phosphate, as • Carryover inventories are being worked through MOP is not subject to the same import pressures • Excessive imports were a primary driver, though • Elevated producer inventories moving into Q4, they have slowed modestly t
Slide 11: South America
South America Potash Phosphate • Brazil: Strong demand is expected to keep • Record-setting imports for Brazil year-to-date to inventories towards historically normal levels by meet very robust demand led to a channel year-end inventory build that is being worked through Mil Brazil MOP Imports Mil B
Slide 12: China
China Potash Phosphate • Port inventories are elevated at around 3 mmt • Phosphate export volumes slow sharply (a function of strong YTD imports), but inland • Jan-Oct DAP/MAP/TSP exports of 8.5mmt are stocks are believed to be very low. down 8% y-o-y (~750,000 tonnes) • While a new contract could b
Slide 13: India & Southeast Asia
India & Southeast Asia Potash Phosphate • Palm oil price recovery expected to lead to a • India’s DAP imports shift only slightly lower in 2019; rebound in SE Asia shipments • Channel inventories are being pulled down on ~10% increase in sales Rngts Malaysian Palm Oil Prices MMT Malaysia+Indonesia M
Slide 14: Long-term market outlook remains positive
Long-term market outlook remains positive • Demand for grains and oilseeds continues to grow, and fertilizer remains a key requirement to increase yields to meet that demand. • Grain prices remain attractive and are expected to drive increased acreage in 2020 in North America and Brazil, while rebou
Slide 15: We help the world grow the food it needs
We help the world grow the food it needs 15 15
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