Slide 1: Fiscal 2023 First-Quarter Business Update
Fiscal 2023 First-Quarter Business Update // Feb. 7, 2023
Slide 2: Forward-Looking Statements and Other Disclaimers
Forward-Looking Statements and Other Disclaimers This presentation may contain forward-looking statements, including, without limitation, statements about efforts to expand the company’s minerals product portfolio and grow; the company’s fire retardant business (Fortress North America) investment, i
Slide 3: Fiscal 2023 First-Quarter Recent Highlights
Fiscal 2023 First-Quarter Recent Highlights • Generated 6% year-over-year growth in consolidated revenue driven by strong pricing in both Salt and Plant Nutrition businesses and improved Salt volumes; • Continued on path to fully restoring Salt segment profitability toward historic levels, with oper
Slide 4: Six Strategic Focus Areas
Six Strategic Focus Areas ZERO HARM SALT SOP PROFITABILITY PRODUCTION Build on strong safety performance in our continued Develop and execute upon Disciplined pricing strategy drive toward zero harm across strategies to improve the and a focus on markets that each of our facilities reliability and s
Slide 5: Fiscal 2023 First-Quarter Results
Fiscal 2023 First-Quarter Results
Slide 6: Fiscal 2023 First-Quarter Results
Fiscal 2023 First-Quarter Results 1Q23 Highlights Consolidated Results 1Q23 • Revenue 6% above prior year Revenue year over year +6% • Favorable pricing in both Salt and Plant Nutrition Adjusted EBITDA1 year over year +6% • Salt saw modest improvement in sales volumes year over year due primarily to
Slide 7: Fiscal 2023 First-Quarter Salt Results
Fiscal 2023 First-Quarter Salt Results Sales Volumes Salt Results (in thousands of short tons) 1Q23 1Q22 %Δ ($ in millions) 2,901 2,807 Revenue $308.1 $273.9 +12.5% EBITDA1 $61.0 $55.6 +9.7% 633 620 EBITDA1 margin 19.8% 20.3% -0.5 pts Average price per ton $88/ton $80/ton 10% 1Q23 Highlights Highway
Slide 8: Fiscal 2023 First-Quarter Plant Nutrition Results
Fiscal 2023 First-Quarter Plant Nutrition Results Plant Nutrition Results 1Q23 1Q22 %Δ ($ in millions) Sales Volumes Revenue $41.6 $54.6 -23.8% (in thousands of short tons) EBITDA1 $19.3 $18.3 +5.5% 83 EBITDA1 margin 46.4% 33.5% +12.9pts Average price per ton $924/ton $660/ton 40.0% 45 1Q23 Highligh
Slide 9: Strategic Growth Initiatives
Strategic Growth Initiatives
Slide 10: Fortress: Select Accomplishments and Expected Milestones
Fortress: Select Accomplishments and Expected Milestones Product Qualifications Expected Milestones • Supported Fortress as it navigated the United States • Post-EIS approval (obtained in December 2022), secure award of Forest Service (USFS) Environmental Impact Statement initial tranche of airbases
Slide 11: Lithium: Recent Accomplishments and Expected Milestones
Lithium: Recent Accomplishments and Expected Milestones Strategic Equity Investment Expected Milestones • Closed $252 million gross ($241 million, net of fees) strategic equity investment partnership with • Secure additional definitive offtake Koch Minerals & Trading LLC, with funds expected to be u
Slide 12: Lithium: Anticipated Project Timeline and Key Milestones
Lithium: Anticipated Project Timeline and Key Milestones H1 H2 2022 2024 2025 2026 2027 2028 2023 2023 Phase-One: East Side (estimated at ~11kMT battery-grade Li2CO3) FEL 2 (PFS) Commercial-scale DLE Unit Construction Commission & Operate FEL 3 (DFS) Construct East Side Li2CO3 Asset Operate Phase-Tw
Slide 13: Lithium Development: Phase-One Project Economics
Lithium Development: Phase-One Project Economics Support Substantial Value Creation and Competitive Cost Position Expect to Deliver Strong Financial Returns with Minimal Environmental Impact Based on FEL-1 $20,645/MT Li2CO3 First Production: 2025 Selling Price $4,347 $985M 36% Cash Cost2/MT Li2CO3 A
Slide 14: Charting a Prudent Financial Path Forward
Charting a Prudent Financial Path Forward • Clear focus on continuous balance sheet improvement and aligning capital structure with strategy to accelerate growth and reduce weather dependency Liquidity Net Debt (in millions) $1,500 • Secured investment from Koch Minerals & Trading, LLC to fund advan
Slide 15: Updated Fiscal 2023 Outlook
UPDATED FISCAL 2023 OUTLOOK1 Salt Plant Nutrition Mild Strong Winter3 2023 Range2 Winter3 2023 Range FY23 Volumes 10,000 11,350 12,200 13,200 205 270 FY23 Revenue $895 $990 $1,065 $1,125 $155 $225 FY23 EBITDA $175 $215 $255 $275 $30 $60 • Expectation is Salt performance will be below the mid-point o
Slide 16: Fiscal 2023 Guidance
FISCAL 2023 GUIDANCE1 Key Metrics for continuing operations Capital Expenditures (in millions of dollars unless otherwise noted) (in millions of dollars) Segment Outlook 2023 Range 2023 Range Total Salt segment sales volumes Capital expenditures $165 $220 11,350 12,200 (in thousands of tons) Sustain
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Net Earnings (unaudited, in millions) Three months ended Dec. 31, 2022 2021 Net (loss) earnings from continuing operations $ (0.3) $ 7.9 Executive transition costs, net of tax1 --- 2.8 Accrued loss and legal costs related to SEC inve
Slide 19: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Operating Earnings (unaudited, in millions) Three months ended Dec. 31, 2022 2021 Operating earnings $ 27.9 $ 20.4 Executive transition costs1 --- 3.3 Accrued loss and legal costs related to SEC investigation2 0.3 3.1 Adjusted operat
Slide 20: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2022 2021 Net (loss) earnings from continuing operations $ (0.3) $ 7.9 Interest expense 13.9 13.9 Income tax expense (benefit) 11.9 (1.2) Depreciation, depletion
Slide 21: Salt Segment Performance
Salt Segment Performance Salt Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Dec. 31, 2022 2021 Sales $ 308.1 $ 273.9 Operating earnings 47.1 39.4 Operating margin 15.3% 14.4% EBITDA1 $ 61.0 $ 55.6 EBITDA1 margin 19.8% 20.3% Sales volumes (in
Slide 22: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Salt Segment EBITDA (unaudited, in millions) Three months ended Dec. 31, 2022 2021 Reported GAAP segment operating earnings $ 47.1 $ 39.4 Depreciation, depletion and amortization 13.9 16.2 Segment EBITDA $ 61.0 $ 55.6 Segment sales 308.1 273.
Slide 23: Plant Nutrition Segment Performance
Plant Nutrition Segment Performance Plant Nutrition Segment Performance (unaudited, dollars in millions, except for sales volumes and prices per short ton) Three months ended Dec.31, 2022 2021 Sales $ 41.6 $ 54.6 Operating earnings $ 11.0 $ 9.5 Operating margin 26.4% 17.4% EBITDA1 $ 19.3 $ 18.3 EBIT
Slide 24: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment EBITDA (unaudited, in millions) Three months ended Dec. 31, 2022 2021 Reported GAAP segment operating earnings $ 11.0 $ 9.5 Depreciation, depletion and amortization 8.3 8.8 Segment EBITDA $ 19.3 $ 18.3 Segment sales 41
Slide 25: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (by calendar year) (unaudited, in millions) 2022 2021 2020 2019 Three months ended Three months ended Three months ended Three months ended Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30