Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q4 2017 Earnings Presentation
18 slides from Mosaic Company (the)'s earnings presentation, Feb 20, 2018
Slide 1: Earnings Conference Call – Fourth Quarter 2017
The Mosaic Company Earnings Conference Call – Fourth Quarter 2017 Joc O’Rourke, President and Chief Executive Officer Presenters: Laura Gagnon, Vice President Investor Relations Date: February 20, 2018
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 include, but are not limited to, statements about the anticipated benefits and synergies of our acquisition of the global phosp
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including adjusted diluted net earnings per share guidance. For important information regarding the non-GAAP measures we present, see “Non-GAAP Financial Measures” in our February 19, 2018 earnings release an
Slide 4: Executive Summary
Executive Summary Positioned to Grow Shareholder Improving Value Market Focused on Conditions $275M of Value Enhancement Expanded Record of Strategic Actions 4
Slide 5: Transformational Year for Mosaic
Transformational Year for Mosaic ▪ Idled Plant City Concentrates Plant ▪ Additional Transformational Efforts in: Asset Optimization • Potash Positioned • Phosphates • Corporate Mosaic to Actions ▪ Increased Vale Fertilizantes value creation target to $275 million Outperform as Market ▪ Issued Debt t
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Slide 8: Mosaic Fertilizantes
hs Py ts : o Mosaic Fertilizantes
Slide 9: Improving Market Conditions
Improving Market Conditions Phosphate and Potash Prices $ Tonne $ Tonne Delivered Brazil 450 Source: Argus 300 425 275 MOP MAP 400 250 375 225 350 200 325 175 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Phosphate - MAP Potash - MOP 9
Slide 10: We Are Responsible, Innovative, Collaborative & Driven
WE ARE RESPONSIBLE, INNOVATIVE, COLLABORATIVE & DRIVEN. TOGETHER, WE ARE DRIVEN TO SUCCEED. 10
Slide 11: Appendix
Appendix 11
Slide 12: Q1 2018 Guidance by Segment
Q1 2018 Guidance by Segment Q1 2018 Sales Volumes (Finished Product) Potash 1.7 – 2.0 million tonnes Phosphates 1.9 – 2.2 million tonnes Mosaic Fertilizantes 1.4 – 1.7 million tonnes Q1 2018 Gross Margin Potash $50 – $60 per tonne Phosphates $55 – $65 per tonne Mosaic Fertilizantes $25 – $35 per ton
Slide 13: Full Year 2018 Guidance
Full Year 2018 Guidance Consolidated Full-Year Guidance 2018 Adjusted Earnings Per Share $1.00 to $1.50* Total SG&A $325 to $350 million Capital Expenditures $900 million to $1.1 billion Potash Sales Volumes 8.2 – 9.0 million tonnes** Phosphate Sales Volumes 8.2 – 9.0 million tonnes Mosaic Fertiliza
Slide 14: Global Phosphate Shipment Forecasts by Region
Global Phosphate Shipment Forecasts by Region (February 2018) Source: IFA, CRU and Mosaic (Numbers may not sum to total due to rounding) DAP / MAP / NPS* / Low High TSP (Million Tonnes) 2015R 2016R 2017E 2018F 2018F Comments We estimate that shipments came in a whisker shy of 18 mmt in 2017, slightl
Slide 15: Global Potash Shipment Forecasts by Region
Global Potash Shipment Forecasts by Region (February 2018) Source: IFA, CRU and Mosaic Muriate of Potash Low High (Numbers may not sum to total due to rounding) Million Tonnes (KCl) 2015 2016 2017E 2018F 2018F Comments 2017 shipments were revised down to 14.8 mmt (7.5 mmt production plus 7.3 mmt net
Slide 16: Sensitivity Table: Estimated Full Year Impacts
Sensitivity Table: Estimated Full Year Impacts ($ in millions) Impacts to PL: EPS ∆ Average MOP Price --> $10/mt $0.16 Average DAP Stripping Margin --> $10/mt $0.21 Potash Sales Volume --> 100k mt $0.02 Phosphates Sales Volume --> 100k mt $0.02 Canadian Dollar Change -->$0.01 $0.03 Brazilian Real Ch
Slide 17: Summary of Accounting Changes
Summary of Accounting Changes Description Mosaic Vale Fertilizantes Mosaic Policy Segment Going Forward Impacted One-month weighted average method will be used Inventory – Weighted average Weighted average weighted average costing based on a costing based on a Phosphates, Potash Mosaic North America
Slide 18: Summary of Accounting Changes
Summary of Accounting Changes Description Mosaic Vale Fertilizantes Mosaic Policy Segment Going Forward Impacted Units of production Mosaic’s existing Units of production used for phosphates policy will be used for mineral and potash mine followed; asset lives Depreciation rights; straight-line Mosa